Assembly Bill A9471

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   9471
 
                           I N  A S S E M B L Y
 
                              January 7, 2026
                                ___________
 
 Introduced by M. of A. PAULIN -- read once and referred to the Committee
   on Health
 
 AN  ACT  to amend the public health law, in relation to conditions under
   which non-public residential health care facilities may withdraw equi-
   ty or assets totaling five percent of total  reported  annual  revenue
   for  patient  care services without prior notification; and to amend a
   chapter of the laws of 2025 amending the public health law relating to
   equity withdrawals by non-public residential health  care  facilities,
   as  proposed  in  legislative  bills  numbers  S. 5369 and A. 2051, in
   relation to the effectiveness thereof
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Subparagraph (ii) of paragraph (b) and subparagraph (ii) of
 paragraph (c) of subdivision 5 of section 2808 of the public health law,
 as  amended  by a chapter of the laws of 2025 amending the public health
 law relating to equity withdrawals by non-public residential health care
 facilities, as proposed in legislative bills  numbers  S.  5369  and  A.
 2051, are amended to read as follows:
   (ii)  in  the  case of a residential health care facility which[,] (1)
 over the two immediately preceding successive quarters FOR  WHICH  RELE-
 VANT  DATA  IS  AVAILABLE TO THE DEPARTMENT, has been compliant with the
 minimum staffing level requirements prescribed by  section  twenty-eight
 hundred  ninety-five-b  of  this  chapter[,];  (2) IS NOT IN THE SPECIAL
 FOCUS FACILITY PROGRAM OPERATED BY THE CENTERS FOR MEDICARE AND MEDICAID
 SERVICES OR SUBJECT TO A DENIAL OF PAYMENT FOR NEW ADMISSIONS IMPOSED BY
 THE CENTERS FOR MEDICARE AND MEDICAID SERVICES; AND (3) HAS NOT BEEN THE
 SUBJECT OF AN ENFORCEMENT  ACTION  BROUGHT  BY  THE  DEPARTMENT  OR  THE
 CENTERS  FOR  MEDICARE  AND  MEDICAID  SERVICES IN THE PREVIOUS EIGHTEEN
 MONTHS THAT RESULTED IN A FINDING OF DEFICIENCY, five  percent  of  such
 facility's  total  reported  annual  revenue  for patient care services,
 based on the facility's most recently available reported  data,  without
 prior  written  notification to the commissioner.  Notification shall be
 made in a form acceptable to the department by certified  or  registered
 mail.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD04752-02-6
 A. 9471                             2
 
   (ii)  in  the  case of a residential health care facility which[,] (1)
 over the two immediately preceding successive quarters FOR  WHICH  RELE-
 VANT  DATA  IS  AVAILABLE TO THE DEPARTMENT, has been compliant with the
 minimum staffing level requirements prescribed by  section  twenty-eight
 hundred  ninety-five-b  of  this  chapter[,];  (2) IS NOT IN THE SPECIAL
 FOCUS FACILITY PROGRAM OPERATED BY THE CENTERS FOR MEDICARE AND MEDICAID
 SERVICES OR SUBJECT TO A DENIAL OF PAYMENT FOR NEW ADMISSIONS IMPOSED BY
 THE CENTERS FOR MEDICARE AND MEDICAID SERVICES; AND (3) HAS NOT BEEN THE
 SUBJECT OF AN ENFORCEMENT  ACTION  BROUGHT  BY  THE  DEPARTMENT  OR  THE
 CENTERS  FOR  MEDICARE  AND  MEDICAID  SERVICES IN THE PREVIOUS EIGHTEEN
 MONTHS THAT RESULTED IN A FINDING OF DEFICIENCY, five  percent  of  such
 facility's  total  reported  annual  revenue  for patient care services,
 based on the facility's most recently available reported  data,  without
 prior  written notification to the commissioner.  The commissioner shall
 make a determination to approve or disapprove a request  for  withdrawal
 of equity or assets under this subdivision within sixty days of the date
 of the receipt of a written request from the facility. Requests shall be
 made  in  a form acceptable to the department by certified or registered
 mail. In reviewing such requests the  commissioner  shall  consider  the
 facility's  overall  financial  condition,  any indications of financial
 distress, whether the facility is delinquent in any payment owed to  the
 department,  whether  the facility has been cited for immediate jeopardy
 or substandard quality of care, and such other factors  as  the  commis-
 sioner  deems  appropriate.  In  addition to any other remedy or penalty
 available under this chapter, and after opportunity for a  hearing,  the
 commissioner  may  require replacement of the withdrawn equity or assets
 and may impose a penalty for violation of the provisions of this  subdi-
 vision  in  an  amount not to exceed ten percent of any amount withdrawn
 without prior approval.
   § 2. Section 4 of a chapter of the laws of 2025  amending  the  public
 health  law  relating  to  equity  withdrawals by non-public residential
 health care facilities, as proposed in legislative bills numbers S. 5369
 and A. 2051, is amended to read as follows:
   § 4. This act shall take effect immediately;  PROVIDED,  HOWEVER  THAT
 SECTIONS  TWO  AND THREE OF THIS ACT SHALL TAKE EFFECT ONE YEAR AFTER IT
 SHALL HAVE BECOME A LAW.
   § 3. This act shall take effect immediately;  provided,  however  that
 section  one  of  this act shall take effect on the same date and in the
 same manner as a chapter of the laws of 2025 amending the public  health
 law relating to equity withdrawals by non-public residential health care
 facilities,  as  proposed  in  legislative  bills numbers S. 5369 and A.
 2051, takes effect.