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This entry was published on 2014-09-22
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SECTION 2862
Supervision and regulation
Public Health (PBH) CHAPTER 45, ARTICLE 28-A
§ 2862. Supervision and regulation. 1. The commissioner may from time
to time make, alter, amend and repeal rules and regulations for the
supervision, examination, regulation and audit of nursing home companies
and for carrying into effect the provisions and purposes of this
article, and each company shall submit an annual report of its
operations to the commissioner and the New York state housing finance
agency or the New York state medical care facilities finance agency, as
the case may be, who may examine and audit the books and records of the
company at any time.

2. The commissioner and the department of health shall have power to
act for and in behalf of the New York state housing finance agency or
the New York state medical care facilities finance agency, as the case
may be, in servicing the nursing home mortgage loans of such agency, and
to perform such functions and services in connection with the making,
servicing and collection of such loans as shall be requested by such
agency.

3. (a) The commissioner and the department may, with respect to any
nursing home project of which the New York state housing finance agency
or the New York state medical care facilities finance agency, as the
case may be, has acquired the fee or otherwise, enter into an agreement
with said agency subject to the approval of the director of the budget,
for the department, as provided in paragraph (b) of this subdivision, to
operate the said project in a manner consistent with the purposes of
this article. In such event, the commissioner, on behalf of the
department, shall have the power to use any available funds to pay all
operating expenses and to comply with all the terms and provisions of
the mortgage, if any, as though the mortgage had not been foreclosed, or
any other applicable agreement and to comply with the provisions of this
article.

(b) Subject to the provisions of the agreement with said agency, the
commissioner may contract with any person, firm or corporation which he
deems qualified to operate and manage such project and to perform such
duties and functions as he may deem necessary.

4. Whenever the commissioner shall be of the opinion that a company is
failing or omitting, or is about to fail or omit to do anything required
of it by law or by order of the commissioner and is doing or is about to
do anything, or permitting anything, or is about to permit anything to
be done, contrary to or in violation of law or of any order of the
commissioner, or which is improvident or prejudicial to the interest of
the public, the lienholders, the shareholders, or the occupants, the
commissioner may, in addition to such other remedies as may be
available, commence an action or proceeding in the supreme court of the
state of New York in the name of the commissioner, for the purpose of
having such violations or threatened violations stopped and prevented,
and in such action or proceeding, the court may appoint a temporary or
permanent receiver or both. Such action or proceeding shall be commenced
by a petition to the supreme court, alleging the violation complained of
and praying for appropriate relief. It shall thereupon be the duty of
the court to specify the time, not exceeding twenty days after service
of a copy of the petition, within which the company complained of must
answer the petition. In case of any default or after answer the court
shall immediately inquire into the facts and circumstances in such
manner as the court shall direct in the interest of substantial justice
without other or formal pleading. Such other persons or corporations as
it shall seem to the court necessary or proper to join as parties in
order to make its order or judgment effective, may be joined as parties.
The final judgment in any such action or proceeding shall either dismiss
the action or proceeding or direct that an order or an injunction, or
both, issue, or provide for the appointment of a receiver as prayed for
in the petition, or grant such other relief as the court may deem
appropriate.