Senate Bill S9519

                                 
BILL NUMBER: S9519

SPONSOR: WALCZYK
 
TITLE OF BILL:

An act to repeal title 5 of article 10-C of the public authorities law
relating to the Clifton-Fine health care corporation; and to transfer
any books, records and remaining rights of such dissolved corporation

 
PURPOSE:

Dissolves the Clifton-Fine health care corporation; repealer

 
SUMMARY OF PROVISIONS:

Section 1. Title 5 of article 10-c of the public authorities law is
REPEALED.

§ 2. Notwithstanding any other provision of law to the contrary, any
existing records, property, rights, titles, and interest of the Clif-
ton-Fine health care corporation shall vest in and be possessed by the
Clifton-Fine Health Care Corporation d/b/a Clifton-Fine Hospital, a New
              

York not-for-profit corporation and its successors or assigns.

§ 3. Effective date.

 
JUSTIFICATION:

The Clifton-Fine Hospital originally opened in 1951 as a municipal
hospital owned and operated by the Towns of Clifton and Fine, providing
critical health care services to residents of a remote rural region
within the Adirondack Park. Over time, the hospital's corporate struc-
ture evolved in response to changing regulatory and financial conditions
affecting rural health care providers.

In 2003, Clifton-Fine Hospital transitioned from a municipal hospital to
a Public Benefit Corporation created by New York State legislation. This
structure was necessary at the time because municipal hospitals faced
limitations in negotiating with health maintenance organizations and
other health care partners.

In 2013, the hospital transitioned again to operate as a 501(c)(3) not-
for-profit corporation to affiliate with Samaritan Medical Center and
participate in shared services arrangements that were necessary to main-
tain financial stability and continue providing essential health care
services to the surrounding rural communities. Following that transi-
tion, the Clifton-Fine Health Care

Corporation Public Benefit Corporation ceased all operational activity
and has had no employees, assets, or operational responsibilities since
that time.

Although the Public Benefit Corporation has remained inactive for more
than a decade, it continues to exist in statute, which has created
confusion in state records and regulatory oversight.

This legislation repeals Title 5 of Article 10-C of the Public Authori-
ties Law and formally dissolves the Clifton-Fine Health Care Corporation
Public Benefit Corporation. Any remaining records or rights associated
with the former entity will vest in the Clifton-Fine Hospital not-for-
profit corporation, ensuring administrative clarity while allowing the
hospital to continue operating under its current structure.

 
LEGISLATIVE HISTORY:

New bill.

 
FISCAL IMPLICATIONS:

None.

 
EFFECTIVE DATE:
This act shall take effect immediately.