S T A T E O F N E W Y O R K
________________________________________________________________________
6964
2021-2022 Regular Sessions
I N A S S E M B L Y
April 15, 2021
___________
Introduced by M. of A. GOTTFRIED -- read once and referred to the
Committee on Health
AN ACT to amend the public health law, in relation to the scope of the
temporary operator law; and to amend chapter 56 of the laws of 2013
amending the public health law relating to the general public health
work program, in relation to making the temporary operator provisions
permanent
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Subdivision 1 of section 2806-a of the public health law,
as added by section 50 of part E of chapter 56 of the laws of 2013,
paragraph (g) as added by section 7 of part K of chapter 57 of the laws
of 2015, is amended to read as follows:
1. For the purposes of this section:
(a) "adult care facility" shall mean an adult home or enriched housing
program licensed pursuant to article seven of the social services law or
an assisted living residence licensed pursuant to article forty-six-B of
this chapter;
(b) "established operator" shall mean the operator of [an adult care]
A facility[, a general hospital or a diagnostic and treatment center
that has been established and issued an operating certificate as such
pursuant to this article];
(c) "facility" shall mean (i) a [general] hospital [or a diagnostic
and treatment center that has been issued an operating certificate as
such pursuant to this article]; or (ii) an adult care facility;
(d) "temporary operator" shall mean any person or entity that:
(i) agrees to operate a facility on a temporary basis in the best
interests of its residents or patients and the community served by the
facility; and
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD10679-01-1
A. 6964 2
(ii) has demonstrated that he or she has the character, competence and
financial ability to operate the facility in compliance with applicable
standards;
(e) "serious financial instability" shall include but not be limited
to defaulting or violating key covenants of loans, or missed mortgage
payments, or general untimely payment of obligations, including but not
limited to employee benefit fund, payroll tax, and insurance premium
obligations, or failure to maintain required debt service coverage
ratios or, as applicable, factors that have triggered a written event of
default notice to the department by the dormitory authority of the state
of New York; and
(f) "extraordinary financial assistance" shall mean state funds
provided to a facility upon such facility's request for the purpose of
assisting the facility to address serious financial instability. Such
funds may be derived from existing programs within the department,
special appropriations, or other funds.
(g) "improper delegation of management authority by the governing
authority or operator" of a [general hospital] FACILITY shall include,
but not be limited to, the delegation to an entity that has not been
established as an operator of the [general hospital] FACILITY of (i)
authority to hire or fire the administrator or other key management
employees; (ii) maintenance and control of the books and records; (iii)
authority over the disposition of assets and the incurring of liabil-
ities on behalf of the facility; and (iv) the adoption and enforcement
of policies regarding the operation of the facility. The criteria set
forth in this paragraph shall not be the sole determining factors, but
indicators to be considered with such other factors that may be perti-
nent in particular instances. Professional expertise shall be exercised
in the utilization of the criteria. All of the listed indicia need not
be present in a given instance for there to be an improper delegation of
authority.
§ 2. Subdivision (c) of section 122 of part E of chapter 56 of the
laws of 2013 amending the public health law relating to the general
public health work program, as amended by section 7 of part E of chapter
57 of the laws of 2019, is amended to read as follows:
(c) section fifty of this act shall take effect immediately [and shall
expire nine years after it becomes law];
§ 3. This act shall take effect immediately.