Assembly Bill A11329

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   11329
 
                           I N  A S S E M B L Y
 
                               May 11, 2026
                                ___________
 
 Introduced  by  COMMITTEE ON RULES -- (at request of M. of A. Paulin) --
   read once and referred to the Committee on Health
 
 AN ACT to amend the public health law, in relation to licensure of  PACE
   organizations
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section 1. Section 2999-u of the public  health  law,  as  amended  by
 chapter 90 of the laws of 2023, is amended to read as follows:
   §  2999-u.  Licensure.  1.  The  commissioner  shall license an entity
 applying for licensure as a PACE organization if  the  applicant  demon-
 strates to the satisfaction of the commissioner that the applicant will:
   (a) comply with the requirements of a PACE organization under applica-
 ble federal law and regulations;
   (b)  provide  a facility or facilities at which primary care and other
 services are furnished to enrollees;
   (c) provide an interdisciplinary team  approach  to  care  management,
 care delivery and care planning;
   (d)  comply  with this article[, the applicable provisions of articles
 twenty-eight, thirty-six and forty-four of this chapter and  regulations
 thereunder,] and regulations of the commissioner under this article; and
   (e)  enter  into  a  PACE organization contract and agreement with the
 department and CMS.
   2. (a) A PACE organization shall serve an approved geographic  service
 area.
   (b)  A  PACE  organization and its incorporators, directors, sponsors,
 stockholders, members, and operators shall have the  experience,  compe-
 tence,  and standing in the community as to give reasonable assurance of
 their ability to operate the organization to provide a consistently high
 level of care for enrollees and comply with this article. A PACE  organ-
 ization  shall  demonstrate that where any incorporator, director, spon-
 sor, stockholder, member, or operator  of  the  organization  holds,  or
 within  the  past seven years has held, a controlling interest or been a
 controlling person in an organization or facility  licensed  under  this
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD15777-01-6
              

 A. 11329                            2
 
 chapter,  a  consistently  high  level of care has been rendered in each
 such organization or facility.
   (c) A PACE organization shall NOT BE REQUIRED TO meet requirements for
 financial  solvency  [under  paragraph (c) of subdivision one of section
 forty-four hundred three of this chapter, including a contingent reserve
 requirement which may, by regulations of the commissioner, be  different
 from  that required by that paragraph] IN EXCESS OF FEDERAL REQUIREMENTS
 REGARDING FISCAL SOUNDNESS OF PACE PROGRAMS.
   (d) A PACE organization shall be deemed to  be  a  health  maintenance
 organization  under  article  forty-four of this chapter for purposes of
 subdivision one of section sixty-five hundred twenty-seven of the educa-
 tion law.
   3. (a) The commissioner shall establish in  regulation  a  STREAMLINED
 AND  unified  licensure process for PACE organizations that includes the
 applicable program requirements of this article  and  [articles  twenty-
 eight,  thirty-six  and  forty-four of this chapter] REFLECTS APPLICABLE
 FEDERAL REGULATIONS AND PROCESS.
   (b) A license under this article shall require approval of the  public
 health and health planning council.
   § 2. Section 2999-y of the public health law, as amended by chapter 90
 of the laws of 2023, is amended to read as follows:
   §  2999-y.  Regulations and applicable laws. 1. The commissioner shall
 make regulations and take other actions reasonably necessary  to  imple-
 ment  this  article,  including the establishment of any rules and proc-
 esses appropriate for the safe, efficient and orderly administration  of
 the  program  and  for the maintenance and revocation of licensure under
 this article. WHILE AWAITING FINALIZATION  OF  REGULATIONS  PURSUANT  TO
 THIS ARTICLE, THE COMMISSIONER SHALL CONTINUE TO PROCESS APPLICATIONS IN
 A  TIMELY  MANNER  AND  MAY  APPLY  POLICIES REGARDING PACE THAT WERE IN
 EFFECT PRIOR TO JUNE  THIRTIETH,  TWO  THOUSAND  TWENTY-THREE  FOR  SUCH
 APPLICATIONS  EXCEPT WHERE SUCH POLICIES ARE IN DIRECT CONFLICT WITH THE
 PLAIN LANGUAGE OF THIS ARTICLE, AS AMENDED.
   2. [(a)] Licensure granted under this article may, in accordance  with
 the  approval  by the commissioner, entitle the PACE organization to act
 in the capacity and perform the activities of a diagnostic and treatment
 center, home care services agency, health maintenance  organization,  or
 managed  long  term  care  plan  for which licensure or certification is
 otherwise required under article twenty-eight, thirty-six, or forty-four
 of this chapter as applicable without such separate license  or  certif-
 ication for purposes relating to the PACE.
   [(b)  To the extent that a PACE organization is acting in the capacity
 or performing an activity for which licensure or certification is other-
 wise required under article twenty-eight, thirty-six, or  forty-four  of
 this  chapter,  the  PACE  organization shall comply with the applicable
 requirements of such articles and  any  applicable  regulations  adopted
 thereunder;  except  that  where such requirements are inconsistent with
 the requirements of this article or regulations adopted by  the  commis-
 sioner  under  this  article,  the requirements of this article and such
 regulations shall apply.]
   3. The commissioner may apply for federal waivers  under  Medicaid  or
 demonstration  programs  under  Medicare  relating  to the PACE program,
 provided that the waiver or demonstration shall not diminish  any  right
 or benefit of enrollees under this article.
   § 3. This act shall take effect immediately.