Senate Bill S8654A

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  8654--A
 
                             I N  S E N A T E
 
                              January 7, 2026
                                ___________
 
 Introduced  by  Sens. CLEARE, PALUMBO, ROLISON -- read twice and ordered
   printed, and when printed to be committed to the Committee on Aging --
   reported favorably from said committee and committed to the  Committee
   on Finance -- committee discharged, bill amended, ordered reprinted as
   amended and recommitted to said committee
 
 AN  ACT  to  amend  the  elder law, the mental hygiene law and the state
   finance law, in relation to establishing the statewide  initiative  of
   not-for-profit guardians
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Short title. This act shall be known and may  be  cited  as
 the "New York state good guardianship act".
   § 2. Legislative intent and findings. The Legislature finds that arti-
 cle 81 of the New York state mental hygiene law mandates assignment of a
 guardian  when an individual is deemed to be incapacitated and unable to
 manage their own affairs. At present, this  mandate  is  not  adequately
 funded  by New York state. This has led to a dearth of reputable guardi-
 anship resources, leaving judges constrained when attempting to  fulfill
 their  legal mandate, risking harm for individuals in dire need of care,
 and increasing the cost burden on our social safety net.
   Guardianship involves essential  management  of  financial  resources,
 coordination  of  health  care,  and  ensuring basic daily needs such as
 cooking, cleaning and shopping are met. When an individual  has  signif-
 icant  financial  resources,  identifying  a  paid  guardian is a viable
 option. However, the reality is that most  people  assigned  a  guardian
 cannot afford to pay for this high-level of care. This is where communi-
 ty-based  not-for-profit  organizations step in to serve. Reputable not-
 for-profit organizations take a multidisciplinary approach to  care  and
 tailor  a  plan  to  an  individual's needs, at no charge or for minimal
 fees.
   Due to the high level of need and lack of an adequate funding  stream,
 not-for-profit groups are unable to take on more cases without sacrific-
 ing  quality  of care. Some districts lack a not-for-profit guardianship
 services provider altogether. These factors put a  strain  on  municipal
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD13789-07-6
 S. 8654--A                          2
 
 and  county  budgets when local departments of social services must step
 in as the guardian of last resort, as they  too  do  not  have  adequate
 resources  to  keep  pace with demand. Moreover, the lack of appropriate
 assignments  of  guardians  has  led to a significant cost burden on our
 social safety net,  particularly  avoidable  hospitalizations  and  care
 through  Medicaid  and  shelter stays. This gap in quality guardians has
 also allowed a third rail of actors to enter the market:    unscrupulous
 and  unchecked  for-profit  entities  who  collect fees while neglecting
 those in their care.
   To address this issue, the Legislature proposes to establish a  state-
 wide  initiative  of not-for-profit guardians program that leverages the
 expertise and capacity of existing, reputable  not-for-profit  organiza-
 tions to provide comprehensive, multidisciplinary guardianship services.
 This  initiative  will help grow well-established guardianship programs,
 create new programs, and promote  alternatives  to  guardianships  where
 appropriate  to  ensure  that  the  entire  state  has  access  to these
 services. Understanding the magnitude of serving  as  a  guardian,  this
 legislation  will  ensure  proper oversight, accountability, and service
 delivery while addressing the needs of individuals who cannot  care  for
 themselves  due  to  age,  disability, or other conditions. Taking these
 steps will also help eliminate bad actors from the  guardianship  market
 while  providing  significant Medicaid and social welfare savings to the
 state. Lastly, the enactment of this legislation is consistent with  the
 recommendations  of  the  adopted  New  York State Master Plan on Aging,
 which  supports  a  fifteen-million-dollar  investment  in  guardianship
 services.
   §  3.  The elder law is amended by adding a new section 227 to read as
 follows:
   § 227. STATEWIDE INITIATIVE  OF  NOT-FOR-PROFIT  GUARDIANS.  1.  THERE
 SHALL  HEREBY  BE ESTABLISHED WITHIN THE OFFICE A PROGRAM TO BE REFERRED
 TO AS THE  "STATEWIDE  INITIATIVE  OF  NOT-FOR-PROFIT  GUARDIANS".  SUCH
 INITIATIVE SHALL EXIST TO:
   (A)  SERVE,  WITHIN  AVAILABLE RESOURCES AND CAPACITY, AS GUARDIAN FOR
 INDIVIDUALS OVER THE AGE OF EIGHTEEN ELIGIBLE UNDER  ARTICLE  EIGHTY-ONE
 OF THE MENTAL HYGIENE LAW FOR WHOM AN APPOINTING JUDGE IS UNABLE TO FIND
 A  GUARDIAN,  WHETHER  A SUITABLE FAMILY MEMBER OR FRIEND OR AN ATTORNEY
 FROM PART THIRTY-SIX OF THE RULES OF THE CHIEF JUDGE, TO SERVE;
   (B) OPERATE A FREE PUBLIC HELPLINE TO PROVIDE GUIDANCE, RESOURCES, AND
 REFERRALS FOR ANY INDIVIDUAL OR ENTITY NAVIGATING GUARDIANSHIP  PURSUANT
 TO  ARTICLE EIGHTY-ONE OF THE MENTAL HYGIENE LAW AND/OR SEEKING ALTERNA-
 TIVE SERVICES;
   (C) BUILD STATEWIDE CAPACITY AND TRAINING OPPORTUNITIES  TO  ESTABLISH
 NEW PROGRAMS WITHIN EXISTING NOT-FOR-PROFIT AGENCIES; AND
   (D) COLLECT, ANALYZE, AND REPORT ON DATA RELATED TO GUARDIANSHIP CASES
 REFERRED TO THEM.
   2.  (A)  TO PARTICIPATE IN THE INITIATIVE ESTABLISHED PURSUANT TO THIS
 SECTION AND BE ELIGIBLE FOR FUNDING, AN ENTITY SHALL:
   (I) BE ORGANIZED AS A TAX-EXEMPT ENTITY PURSUANT TO SECTION  501(C)(3)
 OF  THE  INTERNAL  REVENUE CODE OR OTHER CHARITABLE NON-PROFIT ORGANIZA-
 TION;
   (II) BE REGISTERED WITH THE CHARITIES BUREAU  OF  THE  OFFICE  OF  THE
 ATTORNEY  GENERAL AND IN COMPLIANCE WITH ALL APPLICABLE REGISTRATION AND
 REPORTING REQUIREMENTS UNDER SECTION 8-1.4 OF THE  ESTATES,  POWERS  AND
 TRUSTS  LAW  AND SECTIONS ONE HUNDRED SEVENTY-TWO AND ONE HUNDRED SEVEN-
 TY-TWO-B OF THE EXECUTIVE LAW; AND
 S. 8654--A                          3
 
   (III) HAVE EXPERIENCE IN PROVIDING  GUARDIANSHIP  SERVICES  OR  DEMON-
 STRATE  SUFFICIENT  CAPACITY  TO PROVIDE GUARDIANSHIP SERVICES AS DETER-
 MINED BY THE OFFICE CONSIDERING SUCH FACTORS AS THE  ENTITY'S  ORGANIZA-
 TIONAL STRUCTURE, FISCAL HEALTH, AND OPERATIONS.
   (B)  A  NON-PROFIT  ORGANIZATION  SHALL  NOT BE ELIGIBLE TO SERVE AS A
 GUARDIAN UNDER ARTICLE EIGHTY-ONE OF THE MENTAL HYGIENE  LAW  UNLESS  IT
 SATISFIES THE CRITERIA OUTLINED IN PARAGRAPH (A) OF THIS SUBDIVISION.
   (C)  ENTITIES  PARTICIPATING IN THE INITIATIVE SHALL FULFILL GUARDIAN-
 SHIP DUTIES AS PROVIDED FOR IN SECTIONS 81.20, 81.21, AND 81.22  OF  THE
 MENTAL HYGIENE LAW.
   3.  (A) THE DIRECTOR SHALL SELECT A LEAD AGENCY AMONG THE NOT-FOR-PRO-
 FIT ENTITIES AS DESCRIBED HEREIN FOR THE PURPOSE  OF  ADMINISTERING  THE
 STATEWIDE  INITIATIVE  OF NOT-FOR-PROFIT GUARDIANS. THE ENTITY CHOSEN TO
 ADMINISTER SUCH INITIATIVE SHALL ENTER INTO A CONTRACT  WITH  THE  STATE
 FOR  A  TERM OF FIVE YEARS, WHICH MAY BE RENEWED SUBJECT TO THE APPROVAL
 OF THE DIRECTOR.
   (B) THE ADMINISTRATIVE ENTITY CHOSEN  BY  THE  DIRECTOR  SHALL  REVIEW
 PLANS  SUBMITTED  FOR  APPROVAL AND FUNDING OF GUARDIANSHIP SERVICES AND
 AWARD GRANTS FOR SUCH SERVICES. IN AWARDING GRANTS, THE ENTITY SHALL USE
 BEST EFFORTS TO PROVIDE STATEWIDE DISTRIBUTION OF FUNDING.
   (C) FUNDING FOR THE STATEWIDE INITIATIVE OF  NOT-FOR-PROFIT  GUARDIANS
 SHALL  BE FROM THE STATEWIDE INITIATIVE OF NOT-FOR-PROFIT GUARDIANS FUND
 ESTABLISHED PURSUANT TO SECTION NINETY-NINE-UU OF THE STATE FINANCE LAW.
   4. (A) PARTICIPATING NOT-FOR-PROFIT ORGANIZATIONS  SHALL  COLLECT  AND
 REPORT  TO  THE  ADMINISTRATIVE ENTITY CHOSEN BY THE DIRECTOR ANONYMIZED
 DATA ON GUARDIANSHIP CASES, INCLUDING DEMOGRAPHIC INFORMATION, TYPES  OF
 SERVICES PROVIDED, DURATION OF GUARDIANSHIP, AND CLIENT OUTCOMES.
   (B) THE ADMINISTRATIVE ENTITY CHOSEN BY THE DIRECTOR SHALL COMPILE THE
 DATA OUTLINED IN PARAGRAPH (A) OF THIS SUBDIVISION AND PRODUCE AN ANNUAL
 REPORT  SUMMARIZING  THE  PERFORMANCE AND EFFECTIVENESS OF THE STATEWIDE
 INITIATIVE OF NOT-FOR-PROFIT GUARDIANS. SUCH REPORT SHALL  BE  SUBMITTED
 ANNUALLY ON OR BEFORE JANUARY FIRST, TWO THOUSAND TWENTY-SEVEN, AND EACH
 YEAR THEREAFTER, TO THE GOVERNOR, SPEAKER OF THE ASSEMBLY, AND TEMPORARY
 PRESIDENT OF THE SENATE.
   §  4.  Paragraph  2  of subdivision (a) of section 81.19 of the mental
 hygiene law, as added by chapter 698 of the laws of 1992, is amended  to
 read as follows:
   2.  A  not-for-profit corporation organized to act in such capacity, a
 social services official, or public agency authorized  to  act  in  such
 capacity  which  has  a  concern  for  the incapacitated person, and any
 community guardian program operating pursuant to the provisions of title
 three of article nine-B of the social services law which is found by the
 court to be suitable to perform the duties necessary to assist the inca-
 pacitated person may be appointed as guardian, provided that a community
 guardian program shall be appointed as guardian  only  where  a  special
 proceeding for the appointment of a guardian under this article has been
 commenced  by  a  social  services  official  with whom such program was
 contracted.  A NON-PROFIT CORPORATION SHALL NOT BE ELIGIBLE TO SERVE  AS
 A  GUARDIAN  PURSUANT  TO  THIS ARTICLE UNLESS IT SATISFIES THE CRITERIA
 OUTLINED IN PARAGRAPH (A) OF SUBDIVISION  TWO  OF  SECTION  TWO  HUNDRED
 TWENTY-SEVEN OF THE ELDER LAW.
   § 5. The state finance law is amended by adding a new section 99-uu to
 read as follows:
   § 99-UU. STATEWIDE  INITIATIVE  OF  NOT-FOR-PROFIT  GUARDIANS FUND. 1.
 THERE IS HEREBY ESTABLISHED IN THE JOINT CUSTODY OF THE COMPTROLLER, THE
 COMMISSIONER OF TAXATION AND FINANCE, AND THE COMMISSIONER OF HEALTH,  A
 S. 8654--A                          4
 
 FUND, TO BE KNOWN AS THE "STATEWIDE INITIATIVE OF NOT-FOR-PROFIT GUARDI-
 ANS FUND".
   2. SUCH FUND SHALL CONSIST OF ALL MONEYS APPROPRIATED THERETO FROM ANY
 OTHER  FUND OR SOURCE PURSUANT TO LAW. NOTHING CONTAINED IN THIS SECTION
 SHALL PREVENT THE STATE FROM RECEIVING GRANTS, GIFTS OR BEQUESTS FOR THE
 PURPOSES OF THE FUND AS DEFINED IN THIS SECTION AND DEPOSITING THEM INTO
 THE FUND ACCORDING TO LAW.
   3. MONEYS OF THE FUND SHALL BE MADE AVAILABLE  TO  THE  ADMINISTRATIVE
 ENTITY  CHOSEN  BY  THE DIRECTOR OF THE OFFICE FOR THE AGING PURSUANT TO
 SECTION TWO HUNDRED TWENTY-SEVEN OF THE ELDER LAW TO FUND THE  STATEWIDE
 INITIATIVE OF NOT-FOR-PROFIT GUARDIANS ESTABLISHED BY SUCH SECTION.
   § 6. Severability. If any clause, sentence, paragraph, section or part
 of  this act shall be adjudged by any court of competent jurisdiction to
 be invalid and after exhaustion of  all  further  judicial  review,  the
 judgment  shall  not affect, impair or invalidate the remainder thereof,
 but shall be confined in its operation to the  clause,  sentence,  para-
 graph,  section or part of this act directly involved in the controversy
 in which the judgment shall have been rendered.
   § 7. This act shall take effect immediately.