senate Bill S824

2015-2016 Legislative Session

Establishes a temporary commission of child abuse prevention

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Sponsored By

Current Bill Status - Passed Senate


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor

Actions

view actions (16)
Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Jun 01, 2016 referred to governmental operations
delivered to assembly
passed senate
May 03, 2016 advanced to third reading
Apr 12, 2016 2nd report cal.
Apr 11, 2016 1st report cal.572
Jan 06, 2016 referred to finance
returned to senate
died in assembly
May 13, 2015 referred to governmental operations
delivered to assembly
passed senate
May 04, 2015 advanced to third reading
Apr 29, 2015 2nd report cal.
Apr 28, 2015 1st report cal.474
Jan 07, 2015 referred to finance

S824 - Bill Details

See Assembly Version of this Bill:
A6835
Current Committee:
Law Section:
Children
Versions Introduced in Previous Legislative Sessions:
2013-2014: S2095A, A9038
2011-2012: S2163
2009-2010: S7514

S824 - Bill Texts

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Establishes a temporary commission on child abuse prevention.

view sponsor memo
BILL NUMBER:S824

TITLE OF BILL:

An act to establish a temporary state commission to study child abuse
prevention and make recommendations for the implementation of child
abuse prevention programs across the state; and providing for the
repeal of such provisions upon expiration thereof

PURPOSE:

To establish a temporary State commission to study child abuse
prevention efforts in New York and make recommendations for
Legislative action based upon its findings.

SUMMARY OF PROVISIONS:

Section 1 of the bill states the Legislative findings.

Section 2 of the bill establishes the "Commission of Child Abuse
Prevention" (the "Commission"), which is a temporary State commission,
that is empowered to examine, evaluate and make recommendations
concerning child abuse prevention efforts in the State.

Section 3 of the bill prescribes the composition of the Commission,
which shall be 13 members, and the rules for appointment to the
Commission.

Section 4 of the bill provides that the Commission members shall
receive no compensation for their services, but are allowed
reimbursement for expenses.

Section 5 of the bill provides that the Commission is allowed to
employ personnel for the performance of its functions and that the
Commission possess the powers of a Legislative committee pursuant to
the Legislative Law.

Section 6 of the bill provides that the Commission is authorized to
undertake any studies, inquiries, surveys or analyses that it deems
relevant in cooperation with or by agreement with any other public or
private agency.

Section 7 of the bill requires the Commission to make a report of its
findings to the Governor and legislative leaders within one year after
the effective date of this act.

Section 8 of the bill provides that this act shall take effect
immediately and shall expire and be deemed repealed two years after
such effective date.

EXISTING LAW:

New law

JUSTIFICATION:


Approximately 1,300 children die each year in this country as a result
of child abuse and neglect and many others receive serious injuries.
In New York State, approximately 80,000 children are found to be
maltreated each year.

Child abuse and neglect has been rising across the State and more
resources are expended to treat the consequences including
incarceration, court costs, foster care and more. A study by Prevent
Child Abuse New York estimated these costs to be approximately $2.4
Billion each year; while the amount spent on primary prevention is
less than $30 million.

Tragic cases of child abuse are reported in the press on a regular
basis and while these reports focus on the most horrific cases, most
cases of child abuse are preventable. These cases range from severe
neglect to the explosive shaking of a crying baby.

Research has demonstrated that programs focusing on education and
training of future and new parents are the most practical and
cost-effective means for preventing child abuse and neglect.

Effective prevention programs that promote the safety and well-being
of children and families can reduce the suffering of children, assist
parents in developing better parenting skills and reduce the economic
costs to society. The total financial costs of child abuse and neglect
are quite high, but the benefits or savings from investing in
prevention programs also are quite high.

Many prevention programs address not only child abuse prevention but
other aspects of family dynamics that threaten child and family
well-being. These threats include preventable health conditions such
as low birth weight, infant mortality, drug addicted babies and more.
These programs often provide referrals, education, expertise, and most
importantly stability for at-risk families.

While a number of these preventive programs have proven to be both
beneficial and cost effective, they are currently only offered to a
small number of families at risk of abuse and neglect. For example,
home visitation is only available to about 10% to 14% of eligible
families.

By studying the availability of successful prevention program, and the
best way to expand their services to more families at risk, we can
save numerous children from having to endure abuse and neglect while
saving the state considerable fiscal resources.

LEGISLATIVE HISTORY:

2013-4: S.2095-A - Passed the Senate both years
2012: S.2163 - Passed the Senate
2011: S.2163 - Referred to Finance
2010: S.7514 - Referred to Finance

FISCAL IMPLICATIONS:

To be determined.


EFFECTIVE DATE:

This act shall take effect immediately and shall expire and be deemed
repealed two years after such effective date.

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                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                   824

                       2015-2016 Regular Sessions

                            I N  S E N A T E

                               (PREFILED)

                             January 7, 2015
                               ___________

Introduced  by  Sen.  GOLDEN -- read twice and ordered printed, and when
  printed to be committed to the Committee on Finance

AN ACT to establish a temporary state commission to  study  child  abuse
  prevention  and  make  recommendations for the implementation of child
  abuse prevention programs across the  state;  and  providing  for  the
  repeal of such provisions upon expiration thereof

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Legislative findings. The legislature  hereby  acknowledges
that child abuse is a continuing societal problem in the state affecting
at  least  80,000  children  each  year. In recent years, there has been
research on the long-term effects of child abuse on  the  individual  as
well as society. The vast majority of research has demonstrated that the
consequences  of  child  abuse  are grave, damaging and often spill over
into a person's adult life. Adverse  effects  have  been  identified  in
maltreated children's physical, cognitive, emotional and social develop-
ment.
  Furthermore,  the  legislature finds that the failure to address child
abuse through preventive measures not only harms a million children each
year in this country, it imposes a tremendous cost to society. Like most
states, New York spends  a  considerable  amount  of  fiscal  and  human
resources  to  treat  the  numerous  consequences  of  child  abuse  and
maltreatment. The failure to invest in prevention results in  a  signif-
icantly greater amount of resources needed to treat the outcomes.
  S  2.  A temporary state commission, to be known as the "commission of
child abuse prevention", is hereby established to examine, evaluate  and
make  recommendations  concerning  child abuse prevention efforts in the
state. The commission shall consider the need for additional legislation
as well as a  stable  source  of  funding  for  child  abuse  prevention
programs.  Specific  issues  to  be  addressed  by  the commission shall

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD02258-01-5

S. 824                              2

include home visitation programs and screening for families at  risk  of
child maltreatment.
  S 3. The commission shall consist of thirteen members, to be appointed
as follows: three members to be appointed by the governor; three members
to  be appointed by the temporary president of the senate; three members
to be appointed by the speaker  of  the  assembly;  two  members  to  be
appointed  by  the  minority leader of the senate; and two members to be
appointed by the minority leader of the assembly. The members shall have
demonstrated expertise in and experience with the field of  child  abuse
prevention.  A chairperson and vice-chairperson of such commission shall
be elected by the majority of its members, all members being present.
  S 4. The members of the commission shall receive no  compensation  for
their services, but shall be allowed their actual and necessary expenses
incurred in the performance of their duties hereunder.
  S  5.  The commission may employ and at pleasure remove such personnel
as it may deem necessary for the performance of  its  functions.    Such
commission  may  meet  and hold public and/or private hearings within or
without the state, and shall  have  all  the  powers  of  a  legislative
committee pursuant to the legislative law.
  S  6.  For the accomplishment of its purposes, the commission shall be
authorized and empowered to undertake any studies, inquiries, surveys or
analyses it may deem relevant in cooperation with or by  agreement  with
any other public or private agency.
  S 7. The commission shall make a report of its findings, including any
recommendations  for  legislative  action  as  it may deem necessary and
appropriate, to the governor, the temporary president of the senate  and
the  speaker  of the assembly no later than one year after the effective
date of this act.
  S 8. This act shall take effect immediately and shall  expire  and  be
deemed repealed two years after such effective date.

K487

Memorializing Governor Andrew M. Cuomo to proclaim July 2015, as Disability Pride Month in the State of New York

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Sponsor

text

K487


LEGISLATIVE RESOLUTION memorializing Governor Andrew M. Cuomo to
proclaim July 2015, as Disability Pride Month in the State of New York

WHEREAS, It is the sense of this Legislative Body to recognize and pay
just tribute to a group of every day New Yorker's who strive to live
normal lives under such pressing circumstances; and
WHEREAS, Attendant to such concern, and in keeping with its time-ho-
nored traditions, it is the intent of this Legislative Body to memorial-
ize Governor Andrew M. Cuomo to proclaim July 2015, as Disability Pride
Month in the State of New York; and
WHEREAS, Disability Pride Month recognizes people with disabilities
all throughout our great State; and
WHEREAS, The people of this great State have a long and proud history
of paving the path towards increasing equality and protecting the civil
rights of all peoples; and
WHEREAS, Individuals with disabilities are often ostracized and made
to feel out of place for no other reason except consequence of birth or
chance; and
WHEREAS, It is time for our society to strive for better awareness and
sensitivity to the needs of all communities no matter how big, small or
different; and
WHEREAS, July 26, 2015, will commemorate the 25th Anniversary of the
passing of the American Disabilities Act (ADA) which codified the civil
rights granted to all Americans regardless of race, ethnicity, sexual
orientation or disability; and
WHEREAS, The ADA has been instrumental in both helping end the
discrimination against, and securing the rights of, hundreds of thou-
sands of disabled Americans; and
WHEREAS, The City of New York has designated July 12th as Disability
Pride Day and have taken on the great measure of organizing a parade to
highlight the great societal importance of this movement; and
WHEREAS, This Legislative Body recognizes the State of New York's
strong cultural diversity and its ability to support its citizens
regardless of the physical or mental issues they may face; and
WHEREAS, Disability Pride Month shall serve as an important milestone
for the spread of equality to all of the citizens of New York State; and
WHEREAS, Disability Pride Month allows all those with disabilities to
take pride in all they have overcome and realize just how rich their
lives have come to be; now, therefore, be it
RESOLVED, That this Legislative Body pause in its deliberations to
memorialize Governor Andrew M. Cuomo to proclaim July 2015, as Disabili-
ty Pride Month in the State of New York; and be it further
RESOLVED, That a copy of this Resolution, suitably engrossed, be tran-
smitted to The Honorable Andrew M. Cuomo, Governor of the State of New
York.

actions

  • 08 / May / 2015
    • REFERRED TO CALENDAR
  • 11 / May / 2015
    • ADOPTED

Resolution Details

Law Section:
Resolutions, Legislative

senate Bill S5314

2015-2016 Legislative Session

Establishes the Medicaid identification and anti-fraud biometric technology pilot program; appropriation

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Sponsored By

Current Bill Status - In Committee


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor

Actions

view actions (4)
Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Jan 22, 2016 print number 5314a
amend and recommit to finance
Jan 06, 2016 referred to finance
May 13, 2015 referred to finance

Bill Amendments

S5314
S5314A
S5314
S5314A

S5314 - Bill Details

See Assembly Version of this Bill:
A751
Current Committee:
Law Section:
Appropriations
Laws Affected:
Add Art 2-B §§290 - 293, Pub Health L; amd §367-b, Soc Serv L
Versions Introduced in 2013-2014 Legislative Session:
S4196A, A6527A

S5314 - Bill Texts

view summary

Establishes the Medicaid identification and anti-fraud biometric technology pilot program; appropriates money therefor.

view sponsor memo
BILL NUMBER:S5314

TITLE OF BILL: An act to amend the public health law, in relation to
establishing the Medicaid identification and anti-fraud biometric tech-
nology pilot program; and to amend the social services law, in relation
to conforming medical assistance identification with the Medicaid iden-
tification and anti-fraud biometric technology program; and making an
appropriation therefor

PURPOSE:

Establishes the Medicaid Identification and Antifraud Biometric Technol-
ogy Pilot Program.

SUMMARY OF SPECIFIC PROVISIONS:

Section 1 - The Public Health Law is amended by adding a new article 2-B
to provide that the Department of Health shall develop a request for
proposals to implement a pilot program using biometric technology in two
New York hospitals, for the purpose of patient and provider identifica-
tion to fight fraud in the Medicaid program; sets time frames for such
request; and requires the Department of Health to report to the Gover-
nor, Senate and Assembly as to the progress of implementing a biometric
identification pilot program.

Section 2 - Amends the Social Services Law to require the Social
Services Department to conform its systems with the new Medicaid Iden-
tification and Antifraud Biometric Identification Program when avail-
able.

Section 3 - Appropriates $300,000 each to the two hospitals chosen to
participate in the pilot program to assist in implementing the pilot
program.

Section 4 - Provides that this act shall take effect immediately.

JUSTIFICATION:

New York spends over $54 billion dollars on Medicaid and experts esti-
mate that as much as 10%, or over $5 billion, is spent on fraudulent
services and claims for Medicaid services. New York cannot afford to
continue to pay for such improper and fraudulent claims. Rather than
reducing payments for vital services for our children and most infirm
elderly, we should more aggressively address the billions of dollars
lost to fraud by utilizing modern and effective identification technolo-
gy.

This legislation will require the Department of Health to develop
result-oriented guidelines and seek requests for proposals to implement
a modem fraud prevention pilot program in two New York hospitals, one in
upstate and one in downstate, relying on biometric technology. There are
many companies offering various types of biometric identification

systems that are already in common use by private industry and govern-
mental agencies.

The request for proposals shall focus on results to be obtained, rather
than specific technology, to allow the state to consider the many tech-
nologies that have been developed. These technologies can use relatively
inexpensive software and hardware that has already been developed and
proven to save New York billions of dollars annually in fraud
prevention. The request must also specify that any proposal must be
revenue neutral from inception, whereby program costs are at least
offset by savings from inception, and shall have as a primary goal
reduction in Medicaid expenditures through elimination of fraud and
abuse.

Biometrics is the science and technology of measuring and analyzing
biological data. In information technology, biometrics refers to tech-
nologies that measure and analyze human body characteristics, such as
DNA, fingerprints, eye retinas and irises, voice patterns, facial
patterns and hand measurements, for authentication purposes. The iden-
tification issued to Medicaid recipients and providers will contain
biometric markers for verification that a recipient is eligible for the
service requested, and confirm that the provider actually provides the
service. Such identification can be made at the beginning and end of a
transaction before payment is ever made, instead of relying on the
current system of "pay and chase" where law enforcement and court action
is required to recoup improper Medicaid payments after they have been
made.

PRIOR LEGISLATIVE HISTORY:

2011-2012 - S.4384-B/A.6555-B -- PASSED SENATE/Health
2013 - S.4196/A.6527 - FINANCE/Health

FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENT:

Contains an appropriation of up to $600,000 to assist the participating
hospitals to implement the pilot program. Will generate substantial
savings, perhaps as much as $55 billion annually once expanded statewide
by preventing health care fraud and improper payments.

EFFECTIVE DATE:

This act shall take effect immediately.

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                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  5314

                       2015-2016 Regular Sessions

                            I N  S E N A T E

                              May 13, 2015
                               ___________

Introduced  by  Sen.  RANZENHOFER -- read twice and ordered printed, and
  when printed to be committed to the Committee on Finance

AN ACT to amend the public health law, in relation to  establishing  the
  Medicaid  identification  and  anti-fraud  biometric  technology pilot
  program; and to amend the social services law, in relation to conform-
  ing medical assistance identification with the Medicaid identification
  and anti-fraud biometric technology program; and making  an  appropri-
  ation therefor

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. The public health law is amended by adding  a  new  article
2-B to read as follows:
                                ARTICLE 2-B
            MEDICAID IDENTIFICATION AND ANTI-FRAUD BIOMETRIC
                        TECHNOLOGY PILOT PROGRAM
SECTION 290. MEDICAID IDENTIFICATION AND ANTI-FRAUD BIOMETRIC TECHNOLOGY
               PILOT PROGRAM.
        291. DEFINITIONS.
        292. BIOMETRIC TECHNOLOGY USE REQUIREMENT.
        293. RULES AND REGULATIONS.
  S  290.  MEDICAID  IDENTIFICATION  AND ANTI-FRAUD BIOMETRIC TECHNOLOGY
PILOT PROGRAM. THERE IS HEREBY ESTABLISHED THE  MEDICAID  IDENTIFICATION
AND ANTI-FRAUD BIOMETRIC TECHNOLOGY PILOT PROGRAM.
  S 291. DEFINITIONS. AS USED IN THIS ARTICLE:
  1.  "BIOMETRIC TECHNOLOGY" MEANS TECHNOLOGY THAT MEASURES AND ANALYZES
BIOLOGICAL DATA, INCLUDING BUT  NOT  LIMITED  TO  DNA,  FINGER  IMAGING,
VASCULAR  PATTERNS,  EYE  RETINAS  AND  IRISES,  VOICE  PATTERNS, FACIAL
PATTERNS AND HAND MEASUREMENTS, FOR AUTHENTICATION PURPOSES.
  2.  "BIOMETRIC VERIFICATION DEVICE" MEANS A DEVICE  CAPABLE  OF  USING
BIOMETRIC  VERIFICATION  TECHNOLOGY TO VERIFY THE IDENTITY OF A MEDICAID
RECIPIENT OR PROVIDER.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD00759-01-5

S. 5314                             2

  S 292. BIOMETRIC TECHNOLOGY USE REQUIREMENT.  1.  THE  DEPARTMENT,  IN
CONSULTATION  WITH  THE OFFICE OF THE MEDICAID INSPECTOR GENERAL AND THE
OFFICE OF THE ATTORNEY GENERAL, SHALL DEVELOP A REQUEST FOR PROPOSALS TO
IMPLEMENT A PROGRAM AUTHORIZING THE USE OF BIOMETRIC TECHNOLOGY FOR  THE
PURPOSES  OF PATIENT AND PROVIDER IDENTIFICATION AND FOR USE AS AN ANTI-
FRAUD APPLICATION IN THE MEDICAID PROGRAM.
  2. SUCH REQUEST FOR PROPOSALS SHALL INCLUDE  AT  A  MINIMUM  THAT  (A)
MEDICAID RECIPIENTS AND PROVIDERS SHALL PROVIDE BIOMETRIC PROOF OF THEIR
IDENTITY  ALONG  WITH  OTHER INFORMATION DEEMED NECESSARY BY THE COMMIS-
SIONER.
  (B) SUCH PROGRAM WILL BE CAPABLE OF STORING BIOMETRIC  MARKERS  AND  A
LOG  OF  DOCTOR AND PHARMACY VISITS FOR EACH SERVICE BILLED TO THE MEDI-
CAID PROGRAM.
  (C) MEDICAID IDENTIFICATION SHALL BE ISSUED TO  AND  ACCEPTED  BY  THE
ADMITTING STAFF OF THE HEALTH CARE FACILITY.
  (D)  MEDICAID  RECIPIENTS SHALL BE REQUIRED TO PROVIDE BIOMETRIC PROOF
OF IDENTITY AT THE TIME OF EACH VISIT TO A DOCTOR'S OFFICE OR CLINIC  AT
THE  POINT  OF  ACTUALLY BEING SEEN BY THE DOCTOR OR CLINICAL STAFF, AND
SHALL AGAIN PROVIDE  PROOF  OF  IDENTITY  UPON  COMPLETION  OF  CARE  OR
SERVICES.
  (E)   PROVISIONS   SHALL   BE   INCLUDED  FOR  EMERGENCY  SERVICES  OR
PRESCRIPTIONS AND ALTERNATE IDENTIFICATION METHODS FOR MEDICAID  RECIPI-
ENTS PHYSICALLY OR MENTALLY UNABLE TO PROVIDE BIOMETRIC IDENTIFICATION.
  (F) FRAUD PREVENTION MARKERS INCORPORATED INTO SOFTWARE WHICH SHALL BE
USED TO OPERATE THE HARDWARE COMPONENT OF THE BIOMETRIC TECHNOLOGY SHALL
PREVENT  AND/OR REJECT THE PAYMENT BY THE MEDICAID PROGRAM AND ALERT THE
SERVICE PROVIDER AT POINT OF SERVICE IF  FRAUD  OR  POTENTIAL  FRAUD  IS
IDENTIFIED BY THE BIOMETRIC TECHNOLOGY SYSTEM.
  (G)  PROVISIONS  SHALL  BE INCLUDED TO ENSURE THAT MEDICAID RECIPIENTS
HAVE ACCESS TO EMERGENCY HEALTH SERVICES IN  THE  CASE  OF  A  BIOMETRIC
TECHNOLOGY SYSTEM MALFUNCTION OR FRAUD DETECTION ALARM.
  (H)  EVALUATION AND SELECTION OF AN IDENTITY CREDENTIALING SYSTEM THAT
ADDRESSES THE REQUIREMENTS OF MEDICAID BENEFICIARIES AND PROVIDERS SHALL
BE BASED  ON  THE  FOLLOWING  CRITERIA:  SECURITY,  PRIVACY,  USABILITY,
PERFORMANCE,  HYGIENE,  BIOMETRIC  CAPTURE AND STORAGE REQUIREMENTS, AND
INTEROPERABILITY.
  (I) SUCH PROGRAM SHALL BE OPERATIONAL WITHIN TWELVE MONTHS OF  PROGRAM
APPROVAL AND WILL OPERATE FOR THREE YEARS.
  3.  SUCH  REQUEST FOR PROPOSALS SHALL SET FORTH REQUIREMENTS AS TO THE
RESULTS AND GOALS TO BE ACHIEVED, RATHER THAN SPECIFIC TECHNICAL METHODS
OR SYSTEMS, TO ALLOW CONSIDERATION OF  THE  WIDEST  POSSIBLE  CHOICE  OF
AVAILABLE TECHNOLOGY.
  4.  SUCH  REQUEST  FOR  PROPOSALS  SHALL REQUIRE: (A) THAT THE PROGRAM
SHALL BE REVENUE NEUTRAL FROM INCEPTION, WHEREBY ANY PROGRAM  COSTS  ARE
AT  LEAST  OFFSET BY STATE MEDICAID SAVINGS, AND SHALL HAVE AS A PRIMARY
GOAL REDUCTION OF MEDICAID EXPENDITURES THROUGH ELIMINATION OF FRAUD AND
ABUSE; AND (B) THAT THE PROGRAM SHALL BE COST NEUTRAL TO PROVIDERS  FROM
INCEPTION,  WHEREBY  ANY  PROVIDER COSTS ARE AT LEAST OFFSET BY PROVIDER
SAVINGS, AND SHALL HAVE AS  A  PRIMARY  GOAL  PROVIDER  SAVINGS  THROUGH
INCREASED EFFICIENCIES.
  5.  (A) SUCH REQUEST FOR PROPOSALS FOR THE IMPLEMENTATION OF A PROGRAM
FOR BIOMETRIC TECHNOLOGY USE SHALL BE PUBLISHED  ON  OR  BEFORE  JANUARY
FIFTEENTH,  TWO  THOUSAND  SEVENTEEN,  AND  SHALL PROVIDE THAT PROPOSALS
SHALL BE OPENED ON OR BEFORE MARCH FIRST, TWO THOUSAND SEVENTEEN.
  (B) THE COMMISSIONER SHALL REPORT TO THE GOVERNOR, THE TEMPORARY PRES-
IDENT OF THE SENATE, THE SPEAKER OF THE ASSEMBLY, AND THE CHAIRS OF  THE

S. 5314                             3

SENATE  AND ASSEMBLY HEALTH COMMITTEES ON OR BEFORE MARCH THIRTIETH, TWO
THOUSAND SEVENTEEN WITH REGARD TO THE PROGRESS MADE IN  THE  DEVELOPMENT
OF  CRITERIA FOR A PROGRAM OF BIOMETRIC IDENTIFICATION AND OF THE IMPLE-
MENTATION OF SUCH PROGRAM.
  6.    THE COMMISSIONER SHALL, UPON SUBMISSION OF SATISFACTORY EVIDENCE
OF COMPLIANCE WITH THE PROVISIONS OF THIS TITLE,  APPROVE  TWO  MEDICAID
IDENTIFICATION  AND  ANTI-FRAUD BIOMETRIC TECHNOLOGY PILOT PROGRAMS, ONE
TO BE LOCATED IN AN UPSTATE HOSPITAL AND ONE TO BE LOCATED  IN  A  DOWN-
STATE HOSPITAL.
  7.  EACH  HOSPITAL WILL BE APPROPRIATED THREE HUNDRED THOUSAND DOLLARS
TO ASSIST IN ENABLING THE MEDICAID IDENTIFICATION AND ANTI-FRAUD  BIOME-
TRIC TECHNOLOGY PILOT PROGRAM.
  S  293.  RULES  AND  REGULATIONS.  THE  COMMISSIONER IS AUTHORIZED AND
DIRECTED TO PROMULGATE SUCH RULES AND REGULATIONS AS HE OR SHE MAY  DEEM
NECESSARY OR APPROPRIATE TO EFFECTUATE THE PURPOSES OF THIS ARTICLE.
  S  2.    Subdivision 1 of section 367-b of the social services law, as
added by chapter 639 of the laws of 1976, is amended to read as follows:
  1. The department, IN CONSULTATION WITH THE  COMMISSIONER  OF  HEALTH,
shall  design  and  implement a statewide medical assistance information
and payments system for the purpose of providing individual  and  aggre-
gate  data  to  social services districts to assist them in making basic
management decisions, to the department  and  other  state  agencies  to
assist  in  the administration of the medical assistance program, and to
the governor and the legislature as may be necessary to assist in making
major administrative and policy decisions affecting such program.   Such
system shall be designed so as to be capable of the following:
  a. receiving and processing information relating to the eligibility of
each  person  applying  for  medical assistance and of issuing a medical
assistance identification card, AND WHEN AVAILABLE UTILIZING THE  BIOME-
TRIC  IDENTIFICATION  ISSUED  BY THE DEPARTMENT OF HEALTH, CONFORMING TO
THE REQUIREMENTS SET FORTH IN THE MEDICAID IDENTIFICATION AND ANTI-FRAUD
BIOMETRIC TECHNOLOGY PILOT PROGRAM ESTABLISHED PURSUANT TO ARTICLE TWO-B
OF THE PUBLIC HEALTH LAW to persons  determined  by  a  social  services
official to be eligible for such assistance;
  b.    ACTIVATING  MEDICAL  ASSISTANCE  IDENTIFICATION  BY REQUIRING AN
APPLICANT RECEIVING SUCH IDENTIFICATION FROM THE DEPARTMENT TO  HAVE  IT
VERIFIED  AT  A  SOCIAL  SERVICES DISTRICT OFFICE IN THE SOCIAL SERVICES
DISTRICT IN WHICH THE APPLICANT RESIDES;
  C. receiving and processing information  relating  to  each  qualified
provider of medical assistance furnishing care, services or supplies for
which claims for payment are made pursuant to this title;
  [c.]  D.  receiving and processing, in a form and manner prescribed by
the department, all claims for medical care, services and supplies,  and
making  payments for valid claims to providers of medical care, services
and supplies on behalf of social services districts;
  [d.] E. maintaining information necessary  to  allow  the  department,
consistent  with  the  powers and duties of the department of health, to
review the appropriateness, scope and duration of medical care, services
and supplies provided to any eligible person pursuant to  this  chapter;
and
  [e.]  F.  initiating  implementation of such a system for the district
comprising the city of New York, in a manner compatible  with  expansion
of  such system to districts other than the district comprising the city
of New York.
  S 3.  The sum of six hundred thousand dollars ($600,000), or  so  much
thereof as may be necessary, is hereby appropriated to the department of

S. 5314                             4

health  out  of  any moneys in the state treasury in the general fund to
the credit of the Medicaid identification and anti-fraud biometric tech-
nology pilot program, not otherwise appropriated, and  made  immediately
available,  for  the purpose of carrying out the provisions of this act.
Such moneys shall be payable on the audit and warrant of the comptroller
on vouchers certified or approved by the department  of  health  in  the
manner prescribed by law.
  S 4.  This act shall take effect immediately.

S5314A - Bill Details

See Assembly Version of this Bill:
A751
Current Committee:
Law Section:
Appropriations
Laws Affected:
Add Art 2-B §§290 - 293, Pub Health L; amd §367-b, Soc Serv L
Versions Introduced in 2013-2014 Legislative Session:
S4196A, A6527A

S5314A - Bill Texts

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Establishes the Medicaid identification and anti-fraud biometric technology pilot program; appropriates money therefor.

view sponsor memo
BILL NUMBER: S5314A

TITLE OF BILL : An act to amend the public health law, in relation
to establishing the Medicaid identification and anti-fraud biometric
technology pilot program; and to amend the social services law, in
relation to conforming medical assistance identification with the
Medicaid identification and anti-fraud biometric technology program;
and making an appropriation therefor

PURPOSE :

Establishes the Medicaid Identification and Antifraud Biometric
Technology Pilot Program.

SUMMARY OF SPECIFIC PROVISIONS :

Section 1 - The Public Health Law is amended by adding a new article
2-B to provide that the Department of Health shall develop a request
for proposals to implement a pilot program using biometric technology
in two New York hospitals, for the purpose of patient and provider
identification to fight fraud in the Medicaid program; sets time
frames for such request; and requires the Department of Health to
report to the Governor, Senate and Assembly as to the progress of
implementing a biometric identification pilot program.

Section 2 - Amends the Social Services Law to require the Social
Services Department to conform its systems with the new Medicaid
Identification and Antifraud Biometric Identification Program when
available.

Section 3 - Appropriates $300,000 each to the two hospitals chosen to
participate in the pilot program to assist in implementing the pilot
program.

Section 4 - Provides that this act shall take effect immediately.

JUSTIFICATION :

New York spends over $54 billion dollars on Medicaid and experts
estimate that as much as 10%, or over $5 billion, is spent on
fraudulent services and claims for Medicaid services. New York cannot
afford to continue to pay for such improper and fraudulent claims.
Rather than reducing payments for vital services for our children and
most infirm elderly, we should more aggressively address the billions
of dollars lost to fraud by utilizing modern and effective
identification technology.

This legislation will require the Department of Health to develop
result-oriented guidelines and seek requests for proposals to
implement a modern fraud prevention pilot program in two New York
hospitals, one in upstate and one in downstate, relying on biometric
technology. There are many companies offering various types of
biometric identification systems that are already in common use by
private industry and governmental agencies.

The request for proposals shall focus on results to be obtained,
rather than specific technology, to allow the state to consider the
many technologies that have been developed. These technologies can use
relatively inexpensive software and hardware that has already been
developed and proven to save New York billions of dollars annually in
fraud prevention. The request must also specify that any proposal must
be revenue neutral from inception, whereby program costs are at least
offset by savings from inception, and shall have as a primary goal
reduction in Medicaid expenditures through elimination of fraud and
abuse.

Biometrics is the science and technology of measuring and analyzing
biological data. In information technology, biometrics refers to
technologies that measure and analyze human body characteristics, such
as DNA, fingerprints, eye retinas and irises, voice patterns, facial
patterns and hand measurements, for authentication purposes. The
identification issued to Medicaid recipients and providers will
contain biometric markers for verification that a recipient is
eligible for the service requested, and confirm that the provider
actually provides the service. Such identification can be made at the
beginning and end of a transaction before payment is ever made,
instead of relying on the current system of "pay and chase" where law
enforcement and court action is required to recoup improper Medicaid
payments after they have been made.

PRIOR LEGISLATIVE HISTORY :

2011-2012 - S.4384-B/A.6555-B -- PASSED SENATE/Health
2013-2014 - S.4196/A.6527 - FINANCE/Health
2015 - S.5314/A.751 - FINANCE/Health

FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENT :

Contains an appropriation of up to $600,000 to assist the
participating hospitals to implement the pilot program. Will generate
substantial savings, perhaps as much as $55 billion annually once
expanded statewide by preventing health care fraud and improper
payments.

EFFECTIVE DATE :
This act shall take effect immediately.
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                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 5314--A

                       2015-2016 Regular Sessions

                            I N  S E N A T E

                              May 13, 2015
                               ___________

Introduced  by  Sen.  RANZENHOFER -- read twice and ordered printed, and
  when printed to be committed to the Committee on Finance --  recommit-
  ted to the Committee on Finance in accordance with Senate Rule 6, sec.
  8  -- committee discharged, bill amended, ordered reprinted as amended
  and recommitted to said committee

AN ACT to amend the public health law, in relation to  establishing  the
  Medicaid  identification  and  anti-fraud  biometric  technology pilot
  program; and to amend the social services law, in relation to conform-
  ing medical assistance identification with the Medicaid identification
  and anti-fraud biometric technology program; and making  an  appropri-
  ation therefor

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. The public health law is amended by adding  a  new  article
2-B to read as follows:
                                ARTICLE 2-B
            MEDICAID IDENTIFICATION AND ANTI-FRAUD BIOMETRIC
                        TECHNOLOGY PILOT PROGRAM
SECTION 290. MEDICAID IDENTIFICATION AND ANTI-FRAUD BIOMETRIC TECHNOLOGY
               PILOT PROGRAM.
        291. DEFINITIONS.
        292. BIOMETRIC TECHNOLOGY USE REQUIREMENT.
        293. RULES AND REGULATIONS.
  S  290.  MEDICAID  IDENTIFICATION  AND ANTI-FRAUD BIOMETRIC TECHNOLOGY
PILOT PROGRAM. THERE IS HEREBY ESTABLISHED THE  MEDICAID  IDENTIFICATION
AND ANTI-FRAUD BIOMETRIC TECHNOLOGY PILOT PROGRAM.
  S 291. DEFINITIONS. AS USED IN THIS ARTICLE:
  1.  "BIOMETRIC TECHNOLOGY" MEANS TECHNOLOGY THAT MEASURES AND ANALYZES
BIOLOGICAL DATA, INCLUDING BUT  NOT  LIMITED  TO  DNA,  FINGER  IMAGING,
VASCULAR  PATTERNS,  EYE  RETINAS  AND  IRISES,  VOICE  PATTERNS, FACIAL
PATTERNS AND HAND MEASUREMENTS, FOR AUTHENTICATION PURPOSES.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD00759-02-6

S. 5314--A                          2

  2.  "BIOMETRIC VERIFICATION DEVICE" MEANS A DEVICE  CAPABLE  OF  USING
BIOMETRIC  VERIFICATION  TECHNOLOGY TO VERIFY THE IDENTITY OF A MEDICAID
RECIPIENT OR PROVIDER.
  S  292.  BIOMETRIC  TECHNOLOGY  USE REQUIREMENT. 1. THE DEPARTMENT, IN
CONSULTATION WITH THE OFFICE OF THE MEDICAID INSPECTOR GENERAL  AND  THE
OFFICE OF THE ATTORNEY GENERAL, SHALL DEVELOP A REQUEST FOR PROPOSALS TO
IMPLEMENT  A PROGRAM AUTHORIZING THE USE OF BIOMETRIC TECHNOLOGY FOR THE
PURPOSES OF PATIENT AND PROVIDER IDENTIFICATION AND FOR USE AS AN  ANTI-
FRAUD APPLICATION IN THE MEDICAID PROGRAM.
  2.  SUCH  REQUEST  FOR  PROPOSALS  SHALL INCLUDE AT A MINIMUM THAT (A)
MEDICAID RECIPIENTS AND PROVIDERS SHALL PROVIDE BIOMETRIC PROOF OF THEIR
IDENTITY ALONG WITH OTHER INFORMATION DEEMED NECESSARY  BY  THE  COMMIS-
SIONER.
  (B)  SUCH  PROGRAM  WILL BE CAPABLE OF STORING BIOMETRIC MARKERS AND A
LOG OF DOCTOR AND PHARMACY VISITS FOR EACH SERVICE BILLED TO  THE  MEDI-
CAID PROGRAM.
  (C)  MEDICAID  IDENTIFICATION  SHALL  BE ISSUED TO AND ACCEPTED BY THE
ADMITTING STAFF OF THE HEALTH CARE FACILITY.
  (D) MEDICAID RECIPIENTS SHALL BE REQUIRED TO PROVIDE  BIOMETRIC  PROOF
OF  IDENTITY AT THE TIME OF EACH VISIT TO A DOCTOR'S OFFICE OR CLINIC AT
THE POINT OF ACTUALLY BEING SEEN BY THE DOCTOR OR  CLINICAL  STAFF,  AND
SHALL  AGAIN  PROVIDE  PROOF  OF  IDENTITY  UPON  COMPLETION  OF CARE OR
SERVICES.
  (E)  PROVISIONS  SHALL  BE  INCLUDED   FOR   EMERGENCY   SERVICES   OR
PRESCRIPTIONS  AND ALTERNATE IDENTIFICATION METHODS FOR MEDICAID RECIPI-
ENTS PHYSICALLY OR MENTALLY UNABLE TO PROVIDE BIOMETRIC IDENTIFICATION.
  (F) FRAUD PREVENTION MARKERS INCORPORATED INTO SOFTWARE WHICH SHALL BE
USED TO OPERATE THE HARDWARE COMPONENT OF THE BIOMETRIC TECHNOLOGY SHALL
PREVENT AND/OR REJECT THE PAYMENT BY THE MEDICAID PROGRAM AND ALERT  THE
SERVICE  PROVIDER  AT  POINT  OF  SERVICE IF FRAUD OR POTENTIAL FRAUD IS
IDENTIFIED BY THE BIOMETRIC TECHNOLOGY SYSTEM.
  (G) PROVISIONS SHALL BE INCLUDED TO ENSURE  THAT  MEDICAID  RECIPIENTS
HAVE  ACCESS  TO  EMERGENCY  HEALTH  SERVICES IN THE CASE OF A BIOMETRIC
TECHNOLOGY SYSTEM MALFUNCTION OR FRAUD DETECTION ALARM.
  (H) EVALUATION AND SELECTION OF AN IDENTITY CREDENTIALING SYSTEM  THAT
ADDRESSES THE REQUIREMENTS OF MEDICAID BENEFICIARIES AND PROVIDERS SHALL
BE  BASED  ON  THE  FOLLOWING  CRITERIA:  SECURITY,  PRIVACY, USABILITY,
PERFORMANCE, HYGIENE, BIOMETRIC CAPTURE AND  STORAGE  REQUIREMENTS,  AND
INTEROPERABILITY.
  (I)  SUCH PROGRAM SHALL BE OPERATIONAL WITHIN TWELVE MONTHS OF PROGRAM
APPROVAL AND WILL OPERATE FOR THREE YEARS.
  3. SUCH REQUEST FOR PROPOSALS SHALL SET FORTH REQUIREMENTS AS  TO  THE
RESULTS AND GOALS TO BE ACHIEVED, RATHER THAN SPECIFIC TECHNICAL METHODS
OR  SYSTEMS,  TO  ALLOW  CONSIDERATION  OF THE WIDEST POSSIBLE CHOICE OF
AVAILABLE TECHNOLOGY.
  4. SUCH REQUEST FOR PROPOSALS SHALL  REQUIRE:  (A)  THAT  THE  PROGRAM
SHALL  BE  REVENUE NEUTRAL FROM INCEPTION, WHEREBY ANY PROGRAM COSTS ARE
AT LEAST OFFSET BY STATE MEDICAID SAVINGS, AND SHALL HAVE AS  A  PRIMARY
GOAL REDUCTION OF MEDICAID EXPENDITURES THROUGH ELIMINATION OF FRAUD AND
ABUSE;  AND (B) THAT THE PROGRAM SHALL BE COST NEUTRAL TO PROVIDERS FROM
INCEPTION, WHEREBY ANY PROVIDER COSTS ARE AT LEAST  OFFSET  BY  PROVIDER
SAVINGS,  AND  SHALL  HAVE  AS  A  PRIMARY GOAL PROVIDER SAVINGS THROUGH
INCREASED EFFICIENCIES.
  5. (A) SUCH REQUEST FOR PROPOSALS FOR THE IMPLEMENTATION OF A  PROGRAM
FOR  BIOMETRIC  TECHNOLOGY  USE  SHALL BE PUBLISHED ON OR BEFORE JANUARY

S. 5314--A                          3

FIFTEENTH, TWO THOUSAND EIGHTEEN, AND SHALL PROVIDE THAT PROPOSALS SHALL
BE OPENED ON OR BEFORE MARCH FIRST, TWO THOUSAND EIGHTEEN.
  (B) THE COMMISSIONER SHALL REPORT TO THE GOVERNOR, THE TEMPORARY PRES-
IDENT  OF THE SENATE, THE SPEAKER OF THE ASSEMBLY, AND THE CHAIRS OF THE
SENATE AND ASSEMBLY HEALTH COMMITTEES ON OR BEFORE MARCH THIRTIETH,  TWO
THOUSAND EIGHTEEN WITH REGARD TO THE PROGRESS MADE IN THE DEVELOPMENT OF
CRITERIA  FOR A PROGRAM OF BIOMETRIC IDENTIFICATION AND OF THE IMPLEMEN-
TATION OF SUCH PROGRAM.
  6.  THE COMMISSIONER SHALL, UPON SUBMISSION OF  SATISFACTORY  EVIDENCE
OF  COMPLIANCE  WITH  THE PROVISIONS OF THIS TITLE, APPROVE TWO MEDICAID
IDENTIFICATION AND ANTI-FRAUD BIOMETRIC TECHNOLOGY PILOT  PROGRAMS,  ONE
TO  BE  LOCATED  IN AN UPSTATE HOSPITAL AND ONE TO BE LOCATED IN A DOWN-
STATE HOSPITAL.
  7. EACH HOSPITAL WILL BE APPROPRIATED THREE HUNDRED  THOUSAND  DOLLARS
TO  ASSIST IN ENABLING THE MEDICAID IDENTIFICATION AND ANTI-FRAUD BIOME-
TRIC TECHNOLOGY PILOT PROGRAM.
  S 293. RULES AND  REGULATIONS.  THE  COMMISSIONER  IS  AUTHORIZED  AND
DIRECTED  TO PROMULGATE SUCH RULES AND REGULATIONS AS HE OR SHE MAY DEEM
NECESSARY OR APPROPRIATE TO EFFECTUATE THE PURPOSES OF THIS ARTICLE.
  S 2.  Subdivision 1 of section 367-b of the social  services  law,  as
added by chapter 639 of the laws of 1976, is amended to read as follows:
  1.  The  department,  IN CONSULTATION WITH THE COMMISSIONER OF HEALTH,
shall design and implement a statewide  medical  assistance  information
and  payments  system for the purpose of providing individual and aggre-
gate data to social services districts to assist them  in  making  basic
management  decisions,  to  the  department  and other state agencies to
assist in the administration of the medical assistance program,  and  to
the governor and the legislature as may be necessary to assist in making
major  administrative and policy decisions affecting such program.  Such
system shall be designed so as to be capable of the following:
  a. receiving and processing information relating to the eligibility of
each person applying for medical assistance and  of  issuing  a  medical
assistance  identification card, AND WHEN AVAILABLE UTILIZING THE BIOME-
TRIC IDENTIFICATION ISSUED BY THE DEPARTMENT OF  HEALTH,  CONFORMING  TO
THE REQUIREMENTS SET FORTH IN THE MEDICAID IDENTIFICATION AND ANTI-FRAUD
BIOMETRIC TECHNOLOGY PILOT PROGRAM ESTABLISHED PURSUANT TO ARTICLE TWO-B
OF  THE  PUBLIC  HEALTH  LAW  to persons determined by a social services
official to be eligible for such assistance;
  b.   ACTIVATING MEDICAL  ASSISTANCE  IDENTIFICATION  BY  REQUIRING  AN
APPLICANT  RECEIVING  SUCH IDENTIFICATION FROM THE DEPARTMENT TO HAVE IT
VERIFIED AT A SOCIAL SERVICES DISTRICT OFFICE  IN  THE  SOCIAL  SERVICES
DISTRICT IN WHICH THE APPLICANT RESIDES;
  C.  receiving  and  processing  information relating to each qualified
provider of medical assistance furnishing care, services or supplies for
which claims for payment are made pursuant to this title;
  [c.] D. receiving and processing, in a form and manner  prescribed  by
the  department, all claims for medical care, services and supplies, and
making payments for valid claims to providers of medical care,  services
and supplies on behalf of social services districts;
  [d.]  E.  maintaining  information  necessary to allow the department,
consistent with the powers and duties of the department  of  health,  to
review the appropriateness, scope and duration of medical care, services
and  supplies  provided to any eligible person pursuant to this chapter;
and
  [e.] F. initiating implementation of such a system  for  the  district
comprising  the  city of New York, in a manner compatible with expansion

S. 5314--A                          4

of such system to districts other than the district comprising the  city
of New York.
  S  3.   The sum of six hundred thousand dollars ($600,000), or so much
thereof as may be necessary, is hereby appropriated to the department of
health out of any moneys in the state treasury in the  general  fund  to
the credit of the Medicaid identification and anti-fraud biometric tech-
nology  pilot  program, not otherwise appropriated, and made immediately
available, for the purpose of carrying out the provisions of  this  act.
Such moneys shall be payable on the audit and warrant of the comptroller
on  vouchers  certified  or  approved by the department of health in the
manner prescribed by law.
  S 4.  This act shall take effect immediately.

senate Bill S5312

2015-2016 Legislative Session

Prohibits certain individuals from receiving compensation from public charities; requires reasonable compensation when allowed; establishes the state board training consortium

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Sponsored By

Current Bill Status - In Committee


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor

Actions

view actions (2)
Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Jan 06, 2016 referred to investigations and government operations
May 13, 2015 referred to investigations and government operations

S5312 - Bill Details

Current Committee:
Law Section:
Executive Law
Laws Affected:
Amd §63, Exec L; amd N-PC L, generally; add §97-j, St Fin L
Versions Introduced in Previous Legislative Sessions:
2013-2014: S5115A
2011-2012: S7565

S5312 - Bill Texts

view summary

Prohibits officers and family members of such officers of public charities from receiving compensation; requires reasonable compensation when allowed; sets certain compensation; establishes the state board training consortium; establishes the state board training consortium fund; increases certain filing fees to fund the state board training consortium fund.

view sponsor memo
BILL NUMBER:S5312

TITLE OF BILL: An act to amend the executive law and not-for-profit
corporation law, in relation to prohibiting certain individuals from
receiving compensation from public charities; requires reasonable
compensation when allowed; establishes the state board training consor-
tium; and to amend the state finance law, in relation to establishing
the state board training consortium fund

PURPOSE:

To provide clear and concise requirements and procedures to ensure that
compensation paid to executives at not-for-profits funded by the State
are reasonable and not excessive.

SUMMARY OF PROVISIONS:

Section one adds a new subdivision 17 to section 63 of the executive law
to authorize the Attorney General to make inquiry into any documents
prepared for compliance with section 727 of the not-for-profit corpo-
ration law, relating to the compensation of executives.

Section two amends subparagraph 12 of subparagraph (a) of the not-for-
profit corporation law ("NPCL") to state that compensation is subject,
where applicable, to section 727 of the not-for-profit corporation law.

Section three amends section 701 of the NPCL to disqualify employees and
their relatives from sitting on the board of the directors of the corpo-
ration where they are employed.

Section four amends paragraph (a) of section 702 of the NPCL to provide
that not-for-profit corporations with annual gross receipts in an amount
that would trigger an audit and not-for-profit corporations with annual
gross receipts equal to or above $250,000 must have at least five direc-
tors on their board.

Section five amends paragraph (a) of section 706 of the NPCL to clarify
that removal of directors for cause is to include violations of NPCL
717, duty of directors and officers, or violation of the bylaws or
violation of the conflict of interest policy contained in the bylaws.

Section six amends NPCL 708, action by the board, to allow for Unanimous
Consent in Lieu of a Meeting to occur via Email delivery.

Section seven amends NPCL 711, notice of meetings of the board, to allow
for Email delivery.

Section eight amends NPCL 712 to disallow the Executive Committee from
fixing the compensation of directors, officers, staff or agents of the
corporation, making this a full board function.

Section nine and ten amends NPCL 713, to disallow officers from receiv-
ing compensation and to disallow them from holding more than one office
and to disallow relatives from receiving compensation.

Sections eleven and twelve amend NPCL 715 to allow the board to fix
director compensation for private foundations only and to disallow the
fixing of compensation for directors for public charities, and to disal-
low the compensation of officers at public charities.

Section thirteen amends NPCL 717 to mandate that if there is compen-
sation that said compensation must be reasonable and be subject to the
new Section 727.

Sections fourteen and fifteen amend NPCL 719 to append joint and several
liability to directors who vote for excess compensation and to call for
subrogation of their rights to the corporation if there is a reimburse-
ment or penalty.

Section sixteen amends NPCL 720 to make it actionable against the direc-
tor for not following the new Section 727.

Section seventeen adds a new section 727 to the NPCL. It defines compen-
sation to match the IRS definition surrounding "excess benefit trans-
actions," while also matching the testing analysis and the individuals
subject to the test who are paid by the corporation, while also exempt-
ing from the testing any paid staffer at a nonprofit who paid at or
below the Level I of the Rates of Basic Pay for Executives Schedule
promulgated by the US OPM. It also calls for testing as to whether
compensation is reasonable or not for any salaries over this standard,
with the testing being done in-house and only made available upon
request of the AG or if there is a lawsuit alleging payment of excess
benefits.

Section eighteen amends section 104-A of the NPCL to increase various
filing fees by ten dollars.

Section nineteen amends section 116 of the NPCL to create the state
board training consortium.

Section twenty amends section 97-j of the state finance law to create
the state board training, consortium fund.

Section twenty-one states provisions

Section twenty-two provides the effective date.

JUSTIFICATION:

This legislation will enhance public trust and accountability in New
York State's public charities, and improve their sustainability in serv-
ing our communities. It takes a targeted, balanced and fair approach to
the issues associated with public charities' compensation and promotes

self-regulating accountability by public charities' boards. It imposes
workable, necessary restrictions on public charities' staff expenditures
and enhances board responsibilities, while avoiding the imposition of
undue burdens on small public charities.

LEGISLATIVE HISTORY:

2013-14: S.5115-A Rules / A. 2118-A Governmental Operations
2011-12: S.7565 Investigations and Government Operations /A.10508
Government Operations

FISCAL IMPLICATIONS:

None.

EFFECTIVE DATE:

This act shall take effect on the one hundred eightieth day after it
shall have become law.

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                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  5312

                       2015-2016 Regular Sessions

                            I N  S E N A T E

                              May 13, 2015
                               ___________

Introduced  by  Sen.  MARCELLINO  -- read twice and ordered printed, and
  when printed to be committed to the Committee  on  Investigations  and
  Government Operations

AN ACT to amend the executive law and not-for-profit corporation law, in
  relation  to  prohibiting  certain  individuals from receiving compen-
  sation from public charities; requires  reasonable  compensation  when
  allowed; establishes the state board training consortium; and to amend
  the  state  finance  law,  in relation to establishing the state board
  training consortium fund

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1. Section 63 of the executive law is amended by adding a new
subdivision 17 to read as follows:
  17. MAKE INQUIRY INTO  ANY  DOCUMENTS  PREPARED  UNDER  SECTION  SEVEN
HUNDRED  TWENTY-SEVEN  OF THE NOT-FOR-PROFIT CORPORATION LAW FOR COMPLI-
ANCE WITH THAT SECTION, BUT NOT MORE THAN ANNUALLY, AND RESPOND  TO  ANY
INQUIRY  REFERRED TO UNDER SUCH SECTION SEVEN HUNDRED TWENTY-SEVEN OFFI-
CIALLY WITHIN NINETY DAYS OF RECEIPT.
  S 2. Subparagraph 12 of paragraph (a) of section 202 of  the  not-for-
profit corporation law is amended to read as follows:
  (12)  To  elect or appoint officers, employees and other agents of the
corporation, define their duties, fix their reasonable compensation  and
the  reasonable  compensation  of  directors, and to indemnify corporate
personnel.  Such  compensation  shall  be  commensurate  with   services
performed  AND SUBJECT, WHERE APPLICABLE, TO SECTION SEVEN HUNDRED TWEN-
TY-SEVEN (COMPENSATION OF EXECUTIVES).
  S 3. Section 701 of the not-for-profit corporation law is  amended  by
adding a new paragraph (c) to read as follows:
  (C)  AN  EMPLOYEE  OR A SPOUSE, DOMESTIC PARTNER, SIBLING (BY WHOLE OR
HALF BLOOD), SPOUSE OR DOMESTIC PARTNER OF A SIBLING (BY WHOLE  OR  HALF
BLOOD),  CHILD,  GRANDCHILD,  GREAT-GRANDCHILD,  AND  SPOUSE OR DOMESTIC

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD11036-01-5

S. 5312                             2

PARTNER OF A CHILD, GRANDCHILD, AND GREAT-GRANDCHILD OF THE EMPLOYEE  AT
A  PUBLIC  CHARITY,  AS THAT TERM MAY BE DEFINED BY THE INTERNAL REVENUE
SERVICE FROM TIME-TO-TIME, MAY NOT QUALIFY TO SIT ON THE BOARD OF DIREC-
TORS OF THE CORPORATION WHERE THEY ARE EMPLOYED REGARDLESS OF ANY STATE-
MENT  TO  THE  CONTRARY IN THE CERTIFICATE OF INCORPORATION OR BYLAWS OF
THE CORPORATION. THE CERTIFICATE OF INCORPORATION  OR  THE  BYLAWS  MAY,
HOWEVER,  PROVIDE  FOR AN EMPLOYEE AT A PUBLIC CHARITY, AS THAT TERM MAY
BE DEFINED BY THE INTERNAL REVENUE  SERVICE  FROM  TIME-TO-TIME,  TO  BE
EX-OFFICIO,  A  NON-VOTING  MEMBER  OF THE BOARD OF DIRECTORS.  NOTWITH-
STANDING ANY PROVISION TO THE CONTRARY, THE PROVISIONS OF THIS PARAGRAPH
SHALL NOT APPLY TO CEMETERY CORPORATIONS THAT MUST COMPLY  WITH  ARTICLE
FIFTEEN OF THIS CHAPTER.
  S  4.  Paragraph  (a) of section 702 of the not-for-profit corporation
law, as amended by chapter 549 of the laws 2013, is amended to  read  as
follows:
  (a)  [The]  FOR NOT-FOR-PROFIT CORPORATIONS WITH ANNUAL GROSS RECEIPTS
IN AN AMOUNT THAT WOULD TRIGGER AN AUDIT BY A CERTIFIED PUBLIC  ACCOUNT-
ANT,  THE number of directors constituting the entire board shall be not
less than FIVE, OTHERWISE THE ENTIRE BOARD SHALL NOT BE LESS THAN three.
Subject to such limitation, such number may be fixed by the  by-laws  or
by  action  of the members or of the board under the specific provisions
of a by-law allowing such action, or by any number within  a  range  set
forth  in  the by-laws. [If] FOR NOT-FOR-PROFIT CORPORATIONS WITH ANNUAL
GROSS RECEIPTS EQUAL TO OR ABOVE TWO HUNDRED FIFTY THOUSAND DOLLARS,  IF
not  otherwise  fixed  under  this  paragraph, the number shall be FIVE,
OTHERWISE IT SHALL BE three.
  S 5. Paragraph (a) of section 706 of  the  not-for-profit  corporation
law is amended to read as follows:
  (a)  Except as limited in paragraph (c) OF THIS SECTION, any or all of
the directors may be removed for cause, WHICH IS EITHER A  VIOLATION  OF
THE BY-LAWS, THE DUTY OF DIRECTORS AND OFFICERS OF SECTION SEVEN HUNDRED
SEVENTEEN  (COMPENSATION  OF EXECUTIVES), OR AS OTHERWISE DEFINED IN THE
BYLAWS IN THE WRITTEN CONFLICT OF INTEREST POLICY OF THE CORPORATION, by
vote of the members, or by vote of the directors  provided  there  is  a
quorum  of  not less than a majority present at the meeting of directors
at which such action is taken.
  S 6. Paragraph (b) of section 708 of  the  not-for-profit  corporation
law,  as  amended by chapter 549 of the laws of 2013, is amended to read
as follows:
  (b) Unless otherwise restricted by the certificate of incorporation or
the by-laws, any action required or permitted to be taken by  the  board
or  any  committee thereof may be taken without a meeting if all members
of the board or the committee consent to the adoption  of  a  resolution
authorizing the action, WHERE SAID WRITING, OR UNANIMOUS CONSENT IN LIEU
OF  A  MEETING,  IS  DELIVERED,  SUBMITTED  AND SIGNED SEPARATELY BY ALL
MEMBERS OF THE BOARD OR THE COMMITTEE AND SUBMITTED BY  ELECTRONIC-MAIL,
OR  OTHER ELECTRONIC MEANS WITH AN ELECTRONIC RETURNED RECEIPT, OR SIMI-
LAR MESSAGE ATTACHED, DEMONSTRATING THAT THE UNANIMOUS CONSENT  IN  LIEU
OF  A MEETING WAS INDEED DELIVERED PROPERLY. Such consent may be written
or electronic. If written, the consent must be executed by the  director
by signing such consent or causing his or her signature to be affixed to
such  consent  by  any  reasonable  means including, but not limited to,
facsimile signature.   If electronic, the transmission  of  the  consent
must  be  sent  by  electronic mail and set forth, or be submitted with,
information from which it can reasonably be determined that  the  trans-
mission  was  authorized by the director. The resolution and the written

S. 5312                             3

consents thereto by the members of the board or committee shall be filed
with the minutes of the proceedings of the board or committee.
  S  7.  Paragraphs  (b)  and  (d)  of section 711 of the not-for-profit
corporation law are amended to read as follows:
  (b) The by-laws may prescribe what shall constitute notice of  meeting
of  the board, OR WAIVER OF NOTICE, AND MAY BE DELIVERED VIA ELECTRONIC-
MAIL, OR OTHER ELECTRONIC MEANS WITH AN ELECTRONIC RETURNED RECEIPT,  OR
SIMILAR  MESSAGE  ATTACHED,  DEMONSTRATING THAT THE NOTICE, OR WAIVER OF
NOTICE, WAS INDEED DELIVERED PROPERLY. A notice, or  waiver  of  notice,
need  not  specify  the purpose of any regular or special meeting of the
board, unless required by the by-laws.
  (d) A majority of the directors present, whether or not  a  quorum  is
present,  may  adjourn  any  meeting  to  another time and place. If the
by-laws so provide, notice of any adjournment of a meeting of the  board
to  another  time  or place shall be given to the directors who were not
present  at  the  time  of  the  adjournment,  AND  MAY   BE   DONE   BY
ELECTRONIC-MAIL,  OR  OTHER ELECTRONIC MEANS WITH AN ELECTRONIC RETURNED
RECEIPT, OR SIMILAR MESSAGE ATTACHED, DEMONSTRATING THAT THE NOTICE,  OR
WAIVER  OF  NOTICE, WAS INDEED DELIVERED PROPERLY, and, unless such time
and place are announced at the meeting, to the other directors.
  S 8. Subparagraph 3 of paragraph (a) of section 712  of  the  not-for-
profit  corporation  law, as amended by chapter 549 of the laws of 2013,
is amended to read as follows:
  (3) The fixing of compensation of the directors OR OFFICERS for  serv-
ing on the board or on any committee, AND THE FIXING OF COMPENSATION FOR
KEY  EMPLOYEES,  AS  THAT  TERM  MAY  BE DEFINED BY THE INTERNAL REVENUE
SERVICE FROM TIME-TO-TIME, OR OTHER AGENTS OF  THE  CORPORATION  AT  ANY
TIME.
  S  9.  Paragraph  (a) of section 713 of the not-for-profit corporation
law, as amended by chapter 549 of the laws of 2013, is amended  to  read
as follows:
  (a)  The board may elect or appoint a chair or president, or both, one
or more vice-presidents, a secretary and a  treasurer,  and  such  other
officers  as  it  may  determine,  or as may be provided in the by-laws.
These officers may be designated by such  alternate  titles  as  may  be
provided  in  the certificate of incorporation or the by-laws.  [Any] NO
two or more offices may be held by the same person[, except the  offices
of president and secretary, or the offices corresponding thereto].
  S  10. Section 713 of the not-for-profit corporation law is amended by
adding a new paragraph (g) to read as follows:
  (G) AN OFFICER OR A SPOUSE, DOMESTIC PARTNER,  SIBLING  (BY  WHOLE  OR
HALF  BLOOD),  SPOUSE OR DOMESTIC PARTNER OF A SIBLING (BY WHOLE OR HALF
BLOOD), CHILD, GRANDCHILD,  GREAT-GRANDCHILD,  AND  SPOUSE  OR  DOMESTIC
PARTNER OF A CHILD, GRANDCHILD, AND GREAT-GRANDCHILD OF THE OFFICER AT A
PUBLIC  CHARITY,  AS  THAT  TERM  MAY BE DEFINED BY THE INTERNAL REVENUE
SERVICE FROM TIME-TO-TIME, MAY NOT RECEIVE COMPENSATION OR  REMUNERATION
OF  ANY KIND WHATSOEVER, EXCEPT TO BE REIMBURSED FOR REASONABLE EXPENSES
IN THE FULFILLMENT OF THEIR DUTIES TOWARD THE  CORPORATION,  WHERE  SAID
PROHIBITION CANNOT BE CONTRAVENED IN THE CERTIFICATE OF INCORPORATION OR
BY-LAWS  OF  THE  CORPORATION.    NOTWITHSTANDING  ANY  PROVISION TO THE
CONTRARY, THE PROVISIONS OF THIS PARAGRAPH SHALL NOT APPLY  TO  CEMETERY
CORPORATIONS THAT MUST COMPLY WITH ARTICLE FIFTEEN OF THIS CHAPTER.
  S  11.  Paragraph (d) of section 715 of the not-for-profit corporation
law, as amended by chapter 549 of the laws of 2013, is amended  to  read
as follows:

S. 5312                             4

  (d)  Unless  otherwise provided in the certificate of incorporation or
the by-laws, the board shall have authority to fix the  compensation  of
directors  OF  A  PRIVATE FOUNDATION, AS THAT TERM MAY BE DEFINED BY THE
INTERNAL REVENUE SERVICE FROM TIME-TO-TIME, for services in any  capaci-
ty.   AT NO TIME MAY THE DIRECTORS OF A PUBLIC CHARITY, AS THAT TERM MAY
BE DEFINED BY THE INTERNAL REVENUE SERVICE  FROM  TIME-TO-TIME,  RECEIVE
COMPENSATION  OR REMUNERATION OF ANY KIND WHATSOEVER, EXCEPT TO BE REIM-
BURSED FOR REASONABLE EXPENSES IN THE FULFILLMENT OF THEIR DUTIES TOWARD
THE CORPORATION, WHERE SAID PROHIBITION CANNOT  BE  CONTRAVENED  IN  THE
CERTIFICATE  OF  INCORPORATION  OR BY-LAWS OF THE CORPORATION.  NOTWITH-
STANDING ANY PROVISION TO THE CONTRARY, THE PROVISIONS OF THIS PARAGRAPH
SHALL NOT APPLY TO CEMETERY CORPORATIONS THAT MUST COMPLY  WITH  ARTICLE
FIFTEEN OF THIS CHAPTER.
  S  12.  Paragraph (e) of section 715 of the not-for-profit corporation
law, as amended by chapter 549 of the laws of 2013, is amended  to  read
as follows:
  (e) The fixing of salaries of officers[, if not done in or pursuant to
the  by-laws,  shall  require  the affirmative vote of a majority of the
entire board unless a higher proportion is set  by  the  certificate  of
incorporation  or  by-laws]  IN  PUBLIC  CHARITIES,  AS THAT TERM MAY BE
DEFINED BY THE INTERNAL REVENUE SERVICE FROM TIME-TO-TIME,  IS  STRICTLY
PROHIBITED.     NOTWITHSTANDING  ANY  PROVISION  TO  THE  CONTRARY,  THE
PROVISIONS OF THIS PARAGRAPH SHALL NOT APPLY  TO  CEMETERY  CORPORATIONS
THAT MUST COMPLY WITH ARTICLE FIFTEEN OF THIS CHAPTER.
  S  13.  Paragraph (a) of section 717 of the not-for-profit corporation
law, as amended by chapter 490 of the laws of 2010, is amended  to  read
as follows:
  (a) Directors and officers shall discharge the duties of their respec-
tive  positions  in  good  faith and with the care an ordinarily prudent
person in a like position would exercise  under  similar  circumstances.
The  factors  set  forth in subparagraph one of paragraph (e) of section
552 (Standard of conduct in  managing  and  investing  an  institutional
fund),  if  relevant, must be considered by a governing board delegating
investment management of institutional funds  pursuant  to  section  514
(Delegation  of  investment management). For purposes of this paragraph,
the term institutional fund is defined  in  section  551  (Definitions).
FURTHERMORE, ANY COMPENSATION PROVIDED TO DIRECTORS, OFFICERS, EMPLOYEES
AND OTHER AGENTS OF THE CORPORATION MUST BE REASONABLE AND, WHERE APPLI-
CABLE, IS SUBJECT TO SECTION SEVEN HUNDRED TWENTY-SEVEN (COMPENSATION OF
EXECUTIVES).
  S  14.  Paragraph (a) of section 719 of the not-for-profit corporation
law is amended by adding a new subparagraph 6 to read as follows:
  (6) THE PROVISION OF EXCESSIVE COMPENSATION  TO  DIRECTORS,  OFFICERS,
KEY  EMPLOYEES,  AS  THAT  TERM  MAY  BE DEFINED BY THE INTERNAL REVENUE
SERVICE FROM TIME-TO-TIME,  AND  OTHER  AGENTS  OF  THE  CORPORATION  IN
VIOLATION  OF SECTION SEVEN HUNDRED TWENTY-SEVEN (COMPENSATION OF EXECU-
TIVES), WHERE APPLICABLE.
  S 15. Paragraph (d) of section 719 of the  not-for-profit  corporation
law is amended by adding a new subparagraph 6 to read as follows:
  (6)  UPON REIMBURSEMENT TO THE CORPORATION OF THE AMOUNT OF ANY EXCES-
SIVE COMPENSATION PROVIDED IN VIOLATION OF SECTION SEVEN  HUNDRED  TWEN-
TY-SEVEN (COMPENSATION OF EXECUTIVES), TO BE SUBROGATED TO THE RIGHTS OF
THE  CORPORATION AGAINST A DIRECTOR, OFFICER, KEY EMPLOYEE, AS THAT TERM
MAY BE DEFINED BY THE INTERNAL REVENUE  SERVICE  FROM  TIME-TO-TIME,  OR
OTHER AGENT WHO RECEIVED THE EXCESSIVE COMPENSATION.

S. 5312                             5

  S  16.  Clauses  (A)  and  (B)  of  subparagraph 1 of paragraph (a) of
section 720 of the not-for-profit corporation law, as amended by chapter
549 of the laws of 2013, are amended to read as follows:
  (A)  The  neglect  of,  [or]  THE  failure  to  perform,  or ANY other
violation of his OR HER duties in  the  management  and  disposition  of
corporate assets committed to his OR HER charge.
  (B) The acquisition by himself OR HERSELF, transfer to others, loss or
waste  of  corporate  assets  due to any neglect of, [or] THE failure to
perform, or  ANY  other  violation  of  his  OR  HER  duties,  INCLUDING
VIOLATIONS OF SECTION SEVEN HUNDRED TWENTY-SEVEN (COMPENSATION OF EXECU-
TIVES),  PURSUANT  TO SECTION SEVEN HUNDRED SEVENTEEN (DUTY OF DIRECTORS
AND OFFICERS).
  S 17. The not-for-profit corporation law is amended by  adding  a  new
section 727 to read as follows:
S 727. COMPENSATION OF EXECUTIVES.
  (A)  DEFINITIONS.  FOR  THE PURPOSES OF THIS SECTION, UNLESS OTHERWISE
EXPRESSLY STATED OR CONTEXT CLEARLY REQUIRES:
  (1) "COMPENSATION" MEANS THE  AGGREGATE  VALUE  OF  ECONOMIC  BENEFITS
CONFERRED  IN EXCHANGE FOR THE PERFORMANCE OF SERVICES THAT ARE INCLUDED
FOR PURPOSES OF DETERMINING REASONABLENESS UNDER SECTION 26 U.S.C. 4958,
AS FURTHER SPECIFIED  IN  26  CFR  S53.4958-4(B)(II)(B),  OR  SUCCEEDING
PROVISIONS.
  (2) "EXECUTIVE" MEANS ANY PERSON IN A POSITION TO EXERCISE SUBSTANTIAL
INFLUENCE  OVER THE AFFAIRS OF A PROVIDER OF SERVICES, THAT DOES NOT SIT
ON THE GOVERNING BODY OF THE TAX-EXEMPT ORGANIZATION AS REFERENCED IN 26
U.S.C. S4958(F)(1)(A) AND FURTHER SPECIFIED IN 26 CFR S53.4958-3(C),  OR
SUCCEEDING PROVISIONS.
  (3)  "FAMILY  MEMBER"  MEANS  A  SPOUSE, DOMESTIC PARTNER, SIBLING (BY
WHOLE OR HALF BLOOD), SPOUSE OR DOMESTIC PARTNER OF A SIBLING (BY  WHOLE
OR  HALF  BLOOD),  CHILD,  GRANDCHILD,  GREAT-GRANDCHILD,  AND SPOUSE OR
DOMESTIC PARTNER OF A CHILD, GRANDCHILD, AND GREAT-GRANDCHILD.
  (B) COMPENSATION EXCHANGED BY A  NOT-FOR-PROFIT  CORPORATION  FOR  THE
PERFORMANCE  OF  SERVICES  BY AN EXECUTIVE MUST NOT BE EXCESSIVE AND THE
GOVERNING BODY (I.E., THE BOARD OF  DIRECTORS,  BOARD  OF  TRUSTEES,  OR
EQUIVALENT  CONTROLLING  BODY) SHALL CONSIDER FACTORS INCLUDING, BUT NOT
LIMITED TO: COMPENSATION LEVELS PAID BY SIMILARLY SITUATED  NOT-FOR-PRO-
FIT  CORPORATIONS  AS  DEFINED IN SECTION ONE HUNDRED TWO (DEFINITIONS);
THE AVAILABILITY OF SIMILAR SERVICES  IN  THE  GEOGRAPHIC  AREA  OF  THE
APPLICABLE  PROVIDER  OF SERVICES; CURRENT COMPENSATION SURVEYS COMPILED
BY INDEPENDENT FIRMS; AND ACTUAL  WRITTEN  OFFERS  FROM  SIMILAR  INSTI-
TUTIONS COMPETING FOR THE SERVICES OF THE APPLICABLE EXECUTIVE.
  FOR THE PURPOSES OF THIS SECTION, WHETHER AN ORGANIZATION IS SIMILARLY
SITUATED SHALL BE DETERMINED BASED ON FACTORS INCLUDING, BUT NOT LIMITED
TO:  GROSS  ANNUAL  REVENUE;  GEOGRAPHIC LOCATION; AND THE DIVERSITY AND
COMPLEXITY OF PROGRAMS.
  (C) ANNUAL COMPENSATION EXCHANGED BY A NOT-FOR-PROFIT CORPORATION  FOR
THE  PERFORMANCE OF SERVICES BY AN EXECUTIVE SHALL BE CONSIDERED REASON-
ABLE IF IT FALLS AT OR BELOW THE LEVEL I  OF  THE  FEDERAL  GOVERNMENT'S
RATES  OF BASIC PAY FOR THE EXECUTIVE SCHEDULE PROMULGATED BY THE UNITED
STATES OFFICE OF PERSONNEL MANAGEMENT AND NO  OTHER  ACTION  UNDER  THIS
SECTION NEEDS TO BE TAKEN.
  (D)  ANNUAL COMPENSATION EXCHANGED BY A NOT-FOR-PROFIT CORPORATION FOR
THE PERFORMANCE OF SERVICES BY AN EXECUTIVE THAT DOES EXCEED LEVEL I  OF
THE  FEDERAL  GOVERNMENT'S RATES OF BASIC PAY FOR THE EXECUTIVE SCHEDULE
SHALL BE PRESUMED TO NOT BE EXCESSIVE IF  EACH  OF  THE  FOLLOWING  FOUR
CONDITIONS OCCUR:

S. 5312                             6

  (1)  THE  COMPENSATION  IS  APPROVED  IN ADVANCE BY THE GOVERNING BODY
(I.E., THE BOARD OF DIRECTORS, BOARD OF TRUSTEES, OR EQUIVALENT CONTROL-
LING BODY) OF THE NOT-FOR-PROFIT CORPORATION THAT IS  COMPOSED  ENTIRELY
OF  INDIVIDUALS  WHO  DO NOT HAVE A CONFLICT OF INTEREST WITH RESPECT TO
THE COMPENSATION ARRANGEMENT.
  (A)  FOR  THE PURPOSES OF DETERMINING WHETHER THE REQUIREMENTS OF THIS
PARAGRAPH HAVE BEEN MET WITH RESPECT TO A SPECIFIC COMPENSATION ARRANGE-
MENT, AN INDIVIDUAL IS NOT INCLUDED IN THE GOVERNING  BODY  WHEN  IT  IS
REVIEWING A TRANSACTION IF THAT INDIVIDUAL MEETS WITH OTHER MEMBERS ONLY
TO  ANSWER  QUESTIONS, AND OTHERWISE RECUSES HIMSELF OR HERSELF FROM THE
MEETING AND IS NOT PRESENT DURING DEBATE AND VOTING ON THE  COMPENSATION
ARRANGEMENT.
  (B)  A MEMBER OF THE GOVERNING BODY DOES NOT HAVE A CONFLICT OF INTER-
EST WITH RESPECT TO A COMPENSATION ARRANGEMENT ONLY IF THE MEMBER:
  (I) IS NOT AN EXECUTIVE PARTICIPATING IN, OR  ECONOMICALLY  BENEFITING
FROM, THE COMPENSATION ARRANGEMENT;
  (II)  IS NOT IN AN EMPLOYMENT RELATIONSHIP SUBJECT TO THE DIRECTION OR
CONTROL OF ANY EXECUTIVE, OR THE FAMILY MEMBER OF ANY EXECUTIVE, PARTIC-
IPATING IN OR ECONOMICALLY BENEFITING FROM THE COMPENSATION ARRANGEMENT;
  (III) DOES NOT  RECEIVE  COMPENSATION  OR  OTHER  PAYMENT  SUBJECT  TO
APPROVAL  BY  ANY  EXECUTIVE,  OR  THE  FAMILY  MEMBER OF ANY EXECUTIVE,
PARTICIPATING  IN  OR  ECONOMICALLY  BENEFITING  FROM  THE  COMPENSATION
ARRANGEMENT;
  (IV)  HAS  NO MATERIAL FINANCIAL INTEREST AFFECTED BY THE COMPENSATION
ARRANGEMENT; AND
  (V) DOES NOT APPROVE A TRANSACTION PROVIDING ECONOMIC BENEFITS TO  ANY
EXECUTIVE,  OR  THE FAMILY MEMBER OF ANY EXECUTIVE, PARTICIPATING IN THE
COMPENSATION ARRANGEMENT, WHO IN TURN HAS APPROVED  OR  WILL  APPROVE  A
TRANSACTION PROVIDING ECONOMIC BENEFITS TO THE MEMBER.
  (2)  (A)  THE GOVERNING BODY OBTAINED AND RELIED UPON APPROPRIATE DATA
AS TO COMPARABILITY PRIOR TO MAKING  ITS  DETERMINATION  AND  GIVEN  THE
KNOWLEDGE AND EXPERTISE OF ITS MEMBERS, IT HAS INFORMATION SUFFICIENT TO
DETERMINE  WHETHER  THE  COMPENSATION  ARRANGEMENT  IN  ITS  ENTIRETY IS
REASONABLE. RELEVANT  INFORMATION  INCLUDES,  BUT  IS  NOT  LIMITED  TO:
COMPENSATION  LEVELS  PAID  BY  SIMILARLY SITUATED NOT-FOR-PROFIT CORPO-
RATIONS AS DEFINED IN SECTION ONE HUNDRED TWO (DEFINITIONS); THE  AVAIL-
ABILITY  OF  SIMILAR  SERVICES  IN THE GEOGRAPHIC AREA OF THE APPLICABLE
PROVIDER OF SERVICES; CURRENT COMPENSATION SURVEYS COMPILED BY INDEPEND-
ENT FIRMS; AND ACTUAL WRITTEN OFFERS FROM SIMILAR INSTITUTIONS COMPETING
FOR THE SERVICES OF THE APPLICABLE EXECUTIVE.
  (B) FOR PURPOSES OF THIS PARAGRAPH, CONTROL BY AN APPLICABLE  NOT-FOR-
PROFIT CORPORATION MEANS:
  (I)  IN  THE CASE OF A STOCK CORPORATION, OWNERSHIP (BY VOTE OR VALUE)
OF MORE THAN FIFTY PERCENT OF THE STOCK IN SUCH CORPORATION;
  (II) IN THE CASE OF  A  PARTNERSHIP,  OWNERSHIP  OF  MORE  THAN  FIFTY
PERCENT  OF  THE  PROFITS INTERESTS OR CAPITAL INTERESTS IN THE PARTNER-
SHIP;
  (III) IN THE CASE OF A NONSTOCK ORGANIZATION (I.E., AN ENTITY IN WHICH
NO PERSON HOLDS A PROPRIETARY INTEREST), THAT AT LEAST FIFTY PERCENT  OF
THE  DIRECTORS  OR TRUSTEES OF THE NOT-FOR-PROFIT CORPORATION ARE EITHER
REPRESENTATIVES (INCLUDING TRUSTEES, DIRECTORS,  AGENTS,  OR  EMPLOYEES)
OF,  OR  DIRECTLY  OR INDIRECTLY CONTROLLED BY, AN APPLICABLE TAX-EXEMPT
ORGANIZATION; OR
  (IV) IN THE CASE OF ANY OTHER ENTITY, OWNERSHIP  OF  MORE  THAN  FIFTY
PERCENT OF THE BENEFICIAL INTEREST IN THE ENTITY.

S. 5312                             7

  (3)  THE GOVERNING BODY ADEQUATELY DOCUMENTED THE BASIS FOR ITS DETER-
MINATION CONCURRENTLY WITH MAKING THAT DETERMINATION.
  (A)  FOR  A DECISION TO BE DOCUMENTED ADEQUATELY, THE WRITTEN OR ELEC-
TRONIC RECORDS OF THE GOVERNING BODY MUST NOTE:
  (I) THE TERMS OF THE TRANSACTION THAT WAS APPROVED, AND  THE  DATE  IT
WAS APPROVED;
  (II)  THE MEMBERS OF THE GOVERNING BODY WHO WERE PRESENT DURING DEBATE
ON THE TRANSACTION THAT WAS APPROVED, AND THOSE WHO VOTED ON IT;
  (III) THE COMPARABILITY DATA OBTAINED AND RELIED UPON BY THE GOVERNING
BODY, AND HOW THE DATA WAS OBTAINED; AND
  (IV) ANY ACTIONS TAKEN WITH RESPECT TO  CONSIDERATION  OF  THE  TRANS-
ACTION BY ANYONE WHO IS OTHERWISE A MEMBER OF THE GOVERNING BODY BUT WHO
HAD A CONFLICT OF INTEREST WITH RESPECT TO THE TRANSACTION.
  (B) IF THE GOVERNING BODY DETERMINES THAT THE EXECUTIVE'S COMPENSATION
FOR  A SPECIFIC ARRANGEMENT IS HIGHER OR LOWER THAN THE RANGE OF COMPAR-
ABILITY DATA OBTAINED, THE GOVERNING BODY MUST RECORD THE BASIS FOR  ITS
DETERMINATION. FOR A DECISION TO BE DOCUMENTED CONCURRENTLY RECORDS MUST
BE  PREPARED  BEFORE THE LATER OF THE NEXT MEETING OF THE GOVERNING BODY
OR SIXTY DAYS AFTER THE FINAL ACTION OR ACTIONS OF  THE  GOVERNING  BODY
ARE  TAKEN.  RECORDS MUST BE REVIEWED AND APPROVED BY THE GOVERNING BODY
AS REASONABLE, ACCURATE AND COMPLETE WITHIN  A  REASONABLE  TIME  PERIOD
THEREAFTER.
  (4)  THE  COMPENSATION PROVIDED TO THE EXECUTIVE BY THE GOVERNING BODY
DOES NOT EXCEED THE HIGHEST COMPENSATION PROVIDED BY A  SIMILARLY  SITU-
ATED ORGANIZATION FOR SIMILAR SERVICES, AS IDENTIFIED IN THE COMPARABIL-
ITY DATA, BY MORE THAN TWENTY PERCENT.
  (E) IF THE FOUR CONDITIONS OF PARAGRAPH (D) OF THIS SECTION ARE SATIS-
FIED,  THEN  THE PERSON OR ENTITY BRINGING AN ACTION FOR RELIEF PURSUANT
TO THIS SECTION MAY REBUT THE PRESUMPTION THAT  ARISES  UNDER  PARAGRAPH
(D)  OF THIS SECTION ONLY IF IT DEVELOPS SUFFICIENT CONTRARY EVIDENCE TO
REBUT THE PROBATIVE VALUE OF THE COMPARABILITY DATA RELIED UPON  BY  THE
GOVERNING  BODY. WITH RESPECT TO ANY FIXED PAYMENT, REBUTTAL EVIDENCE IS
LIMITED TO EVIDENCE RELATING TO FACTS AND CIRCUMSTANCES EXISTING ON  THE
DATE  THE  PARTIES ENTER INTO THE CONTRACT PURSUANT TO WHICH THE PAYMENT
IS MADE (EXCEPT  IN  THE  EVENT  OF  SUBSTANTIAL  NONPERFORMANCE).  WITH
RESPECT  TO  ALL OTHER PAYMENTS, REBUTTAL EVIDENCE MAY INCLUDE FACTS AND
CIRCUMSTANCES UP TO AND INCLUDING THE DATE OF PAYMENT.
  (F) A NOT-FOR-PROFIT IS PROHIBITED FROM, AND MAY THUS BE  REFERRED  TO
THE  ATTORNEY  GENERAL FOR FURTHER INQUIRY TO BE OFFICIALLY RESPONDED TO
WITHIN NINETY DAYS OF RECEIPT, BY  THE  PERSON  OR  ENTITY  BRINGING  AN
ACTION FOR RELIEF PURSUANT TO THIS SECTION: (1) ENGAGING IN ANY ACT THAT
THE  INTERNAL  REVENUE SERVICE DETERMINES CONSTITUTES AN "EXCESS BENEFIT
TRANSACTION" UNDER SECTION 4958 OF THE INTERNAL  REVENUE  CODE;  OR  (2)
ENGAGING  IN  ANY  ACT  THAT  WOULD CONSTITUTE AN "EXCESS BENEFIT TRANS-
ACTION" UNDER THE STANDARDS OF SECTION  4958  OF  THE  INTERNAL  REVENUE
CODE.
  S 18. Section 104-A of the not-for-profit corporation law, as added by
chapter  591  of  the  laws of 1982, paragraphs (c), (d), (e), (g), (l),
(m), (n) and (p) as amended by chapter 166 of the laws of 1991 and para-
graph (r) as amended by chapter 198 of the laws of 1984, is  amended  to
read as follows:
S 104-A. Fees.
  Except  as  otherwise  provided, the department of state shall collect
the following fees pursuant to this chapter:
  (b) For the reservation of a corporate name pursuant to  section three
hundred three of this chapter, ten dollars.

S. 5312                             8

  (c) For the resignation of a registered agent for service  of  process
pursuant to section three hundred five of this chapter, thirty dollars.
  (d)  For  service  of  process  on  the secretary of state pursuant to
section three hundred six or three hundred seven of this chapter,  forty
dollars.  If the service is in an action brought solely to recover a sum
of money not in excess of two hundred dollars  and  the  process  is  so
endorsed,  or the process is served on behalf of a county, city, town or
village or other subdivision of the state, ten dollars.
  (e) For filing a certificate of incorporation pursuant to section four
hundred two of this chapter, [seventy-five] EIGHTY-FIVE dollars.
  (f) For filing a certificate of amendment pursuant  to  section  eight
hundred three of this chapter, [thirty] FORTY dollars.
  (g)  For  filing  a  certificate  of  change pursuant to section eight
hundred three-A of this chapter, [twenty] THIRTY dollars.
  (h) For filing a restated certificate  of  incorporation  pursuant  to
section eight hundred five of this chapter, [thirty] FORTY dollars.
  (i)  For  filing  a certificate of merger or consolidation pursuant to
section nine hundred four of this chapter, [thirty] FORTY  dollars.
  (j) For filing a certificate of merger or  consolidation  of  domestic
and  foreign  corporations  pursuant to section nine hundred six of this
chapter, [thirty] FORTY dollars.
  (k) For filing   a certified copy of  an  order  of  approval  of  the
supreme  court  pursuant  to section nine hundred seven of this chapter,
thirty dollars.
  (l) For filing a certificate of dissolution pursuant  to  section  one
thousand three of this chapter, thirty dollars.
  (m)  For  filing a certificate of annulment of dissolution pursuant to
section one thousand twelve of this chapter, [thirty] FORTY dollars.
  (n) For filing an application by a foreign corporation  for  authority
to  do  business  in New York state pursuant to section thirteen hundred
four of this chapter, one hundred [thirty-five] FORTY-FIVE dollars.
  (o) For filing a  certificate  of  amendment  of  an  application  for
authority  by a foreign corporation pursuant to section thirteen hundred
nine of this chapter, [thirty] FORTY dollars.
  (p) For filing a certificate of change of application for authority by
a foreign corporation pursuant to section thirteen hundred ten  of  this
chapter, [twenty] THIRTY dollars.
  (q)  For  filing  a  certificate of surrender of authority pursuant to
section thirteen hundred eleven of this chapter, thirty dollars.
  (r) For filing a statement  of  the  termination  of  existence  of  a
foreign  corporation pursuant to section thirteen hundred twelve of this
chapter, thirty dollars. There shall be no fee  for  the  filing  by  an
authorized  officer  of  the  jurisdiction of incorporation of a foreign
corporation of a certificate  that  the  foreign  corporation  has  been
dissolved or its authority or existence has been otherwise terminated or
cancelled in the jurisdiction of its incorporation.
  (s) For filing any other certificate or instrument, thirty dollars.
  S  19.  The  not-for-profit corporation law is amended by adding a new
section 116 to read as follows:
S 116. STATE BOARD TRAINING CONSORTIUM.
  (A) NOT-FOR-PROFIT  BOARD  MEMBERS  ARE  ENTRUSTED  WITH  THE  OVERALL
MANAGEMENT AND OVERSIGHT OF NON-PROFITS AND HAVE LEGAL AND ETHICAL OBLI-
GATIONS  TO KEEP THEMSELVES FULLY INFORMED REGARDING THEIR ORGANIZATION,
ITS FINANCES AND ITS OVERALL OPERATION  AND  IN  ASSURING  THAT  PROGRAM
STAFF  AND  ADMINISTRATION  EFFECTIVELY  CARRY  OUT  THE  ORGANIZATION'S
MISSION. THE STATE BOARD TRAINING  CONSORTIUM  IS  INTENDED  TO  EMPOWER

S. 5312                             9

BOARD  MEMBERS  OF  NOT-FOR-PROFIT  ORGANIZATIONS  WHO CONTRACT WITH THE
STATE OF NEW YORK WITH THE INFORMATION AND TOOLS NECESSARY TO CARRY  OUT
THEIR  VERY IMPORTANT RESPONSIBILITIES, ROLES AND OBLIGATIONS. THE STATE
BOARD  TRAINING  CONSORTIUM  WILL BE A COMPREHENSIVE STATE-WIDE TRAINING
EFFORT, DELIVERED REGIONALLY,  IN-PERSON,  TOGETHER  WITH  A  NUMBER  OF
TAILORED  AGENCY  SPECIFIC  ONSITE TRAININGS, SOME VIRTUAL WEBINARS, AND
THE LIKE, AND STATE WORKFORCE TRAININGS ON THE SAME OR SIMILAR SUBJECTS.
ANY TRAINING CONDUCTED UNDER THE AUSPICES OF THE  STATE  BOARD  TRAINING
CONSORTIUM  WILL BE FREE TO VERIFIED MEMBERS OF NOT-FOR-PROFIT BOARDS OF
DIRECTORS WHO CONTRACT WITH THE STATE OF NEW YORK.
  (1) FEES GENERATED FROM THE TEN DOLLAR INCREASE  IN  THE  FILING  FEES
ASSOCIATED WITH CERTIFICATES OF INCORPORATION, AMENDMENT, CHANGE, MERGER
OR  CONSOLIDATION,  ANNULMENT  OF  DISSOLUTION,  AUTHORITY  BY A FOREIGN
CORPORATION, AN AMENDMENT OF SAME OR A CHANGE  IN  THE  AUTHORITY  OF  A
FOREIGN  CORPORATION,  SHALL  BE  USED  TO FUND THE STATE BOARD TRAINING
CONSORTIUM.
  (2) SAID FEES SHALL BE MAINTAINED IN THE STATE BOARD TRAINING  CONSOR-
TIUM FUND, AS ESTABLISHED BY SECTION NINETY-SEVEN-J OF THE STATE FINANCE
LAW,  TO SUPPORT THE STATE BOARD TRAINING CONSORTIUM ESTABLISHED BY THIS
SECTION.
  (B) THE STATE BOARD TRAINING CONSORTIUM SHALL BE ADMINISTERED  BY  THE
DEPARTMENT  OF STATE THROUGH A CONTRACT UNDER COUNSEL'S OFFICE. A QUALI-
FIED NOT-FOR-PROFIT CORPORATION WILL BE CONTRACTED WITH BY  THE  DEPART-
MENT  OF STATE TO PROVIDE THE TRAINING AND ASSOCIATED SERVICES DELIVERED
UNDER THE STATE BOARD TRAINING CONSORTIUM, TOGETHER  WITH  MANAGING  ALL
DAY-TO-DAY  OPERATIONS,  MARKETING EFFORTS, CURRICULUM UPDATES, PRINTING
AND RECORD-KEEPING. THE CONTRACT SHALL HAVE A FIVE YEAR TERM,  RENEWABLE
FOR THREE ADDITIONAL YEARS, AND A STANDARD REQUEST FOR PROPOSALS/REQUEST
FOR  QUALIFICATIONS  PROCESS  WILL  BE UTILIZED AT THE INCEPTION OF EACH
CONTRACT.
  (1) THE COMMISSIONERS OF THE  OFFICE  FOR  PEOPLE  WITH  DEVELOPMENTAL
DISABILITIES,   OFFICE  OF  MENTAL  HEALTH,  OFFICE  OF  ALCOHOLISM  AND
SUBSTANCE ABUSE SERVICES, OFFICE OF CHILDREN AND  FAMILY  SERVICES,  AND
DEPARTMENT  OF HEALTH, HAVING PRIOR EXPERIENCE IN THE STATE BOARD TRAIN-
ING CONSORTIUM AS ADMINISTERED BY OFFICE  OF  ALCOHOLISM  AND  SUBSTANCE
ABUSE  SERVICES,  AND  THE  DEPARTMENT  OF HEALTH, AIDS INSTITUTE, SHALL
JOINTLY:
  (I) DEVELOP A CONTRACT FOR THE STATE BOARD TRAINING  CONSORTIUM  ALONG
THE LINES ALREADY PROMULGATED BY THEIR AGENCIES;
  (II)  ESTABLISH  UNIFORM PROCEDURES TO MONITOR ATTENDANCE AT TRAININGS
CONDUCTED UNDER THE STATE BOARD TRAINING CONSORTIUM AND IN REPORTING THE
SAME TO THE ATTENDING BOARDS OF DIRECTORS.
  (2) THE COMMISSIONERS OF OTHER AGENCIES, INCLUDING BUT NOT LIMITED  TO
THE OFFICE FOR THE AGING, DEPARTMENT OF AGRICULTURE AND MARKETS, COUNCIL
ON  THE  ARTS,  OFFICE  OF  COURT  ADMINISTRATION,  DIVISION OF CRIMINAL
JUSTICE SERVICES, EMPIRE STATE DEVELOPMENT, DEPARTMENT OF  ENVIRONMENTAL
CONSERVATION,  OFFICE  OF  GENERAL SERVICES, NEW YORK STATE CANAL CORPO-
RATION AND THE OFFICE  OF  TEMPORARY  AND  DISABILITY  ASSISTANCE  SHALL
ESTABLISH  PROCEDURES TO MONITOR ATTENDANCE AT TRAININGS CONDUCTED UNDER
THE STATE BOARD TRAINING CONSORTIUM AND IN REPORTING  THE  SAME  TO  THE
ATTENDING BOARDS OF DIRECTORS.
  (C)  ALL  NOT-FOR-PROFIT  CORPORATIONS THAT CONTRACT WITH THE STATE OF
NEW YORK MAY ATTEND THE STATE BOARD TRAINING CONSORTIUM  TRAININGS  FREE
OF CHARGE.
  S 20. The state finance law is amended by adding a new section 97-j to
read as follows:

S. 5312                            10

  S  97-J.  STATE  BOARD  TRAINING  CONSORTIUM  FUND. 1. THERE IS HEREBY
ESTABLISHED IN THE JOINT CUSTODY OF THE  COMMISSIONER  OF  TAXATION  AND
FINANCE  AND  THE  COMPTROLLER  A  FUND  TO BE KNOWN AS THE "STATE BOARD
TRAINING CONSORTIUM FUND."
  2.  SUCH  FUND  SHALL  CONSIST  OF  FEES GENERATED FROM THE TEN DOLLAR
INCREASE IN FILING FEES IN PARAGRAPHS (E), (F), (G), (H), (I), (J), (M),
(N), (O) AND (P) OF SECTION ONE HUNDRED  FOUR-A  OF  THE  NOT-FOR-PROFIT
CORPORATION  LAW,  ASSOCIATED WITH CERTIFICATES OF INCORPORATION, AMEND-
MENT, CHANGE, MERGER OR CONSOLIDATION, ANNULMENT OF DISSOLUTION, AUTHOR-
ITY BY A FOREIGN CORPORATION, AN AMENDMENT OF SAME OR A  CHANGE  IN  THE
AUTHORITY  OF  A  FOREIGN CORPORATION, PROMULGATED BY THE CHAPTER OF THE
LAWS OF TWO THOUSAND FIFTEEN THAT ADDED  THIS  SECTION,  AND  ALL  OTHER
MONEYS CREDITED OR APPROPRIATED FOR TRANSFER THERETO FROM ANY OTHER FUND
OR SOURCE ACCORDING TO LAW.
  3.  MONEYS  IN  THE STATE BOARD TRAINING CONSORTIUM FUND SHALL BE KEPT
SEPARATE AND SHALL NOT BE COMMINGLED WITH ANY OTHER MONEYS IN THE CUSTO-
DY OF THE STATE COMPTROLLER. MONEYS IN THE FUND MAY BE INVESTED  BY  THE
COMPTROLLER PURSUANT TO THE PROVISIONS OF SECTION NINETY-EIGHT-A OF THIS
ARTICLE AND ANY INCOME RECEIVED BY THE COMPTROLLER FROM SUCH INVESTMENTS
SHALL BE ADDED TO AND BECOME PART OF, AND SHALL BE USED FOR THE PURPOSES
OF SUCH FUND. ALL DEPOSITS OF SUCH MONEY SHALL, IF REQUIRED BY THE COMP-
TROLLER,  BE SECURED BY OBLIGATIONS OF THE UNITED STATES OR OF THE STATE
OF MARKET VALUE EQUAL AT ALL TIMES TO THE AMOUNT OF THE DEPOSIT AND  ALL
BANKS  AND  TRUST  COMPANIES  ARE AUTHORIZED TO GIVE SUCH SECURITIES FOR
SUCH DEPOSITS.
  4. MONEYS IN THE FUND, FOLLOWING  APPROPRIATION  BY  THE  LEGISLATURE,
SHALL BE ALLOCATED UPON A CERTIFICATE OF APPROVAL OF AVAILABILITY BY THE
DIRECTOR  OF  THE  BUDGET  SOLELY  FOR  THE  PURPOSES  SET FORTH IN THIS
SECTION.
  5. ALL MONEYS IN THE FUND SHALL BE MADE AVAILABLE PURSUANT  TO  APPRO-
PRIATION  FOR  USE IN FUNDING THE STATE BOARD TRAINING CONSORTIUM ESTAB-
LISHED PURSUANT TO SECTION ONE HUNDRED  SIXTEEN  OF  THE  NOT-FOR-PROFIT
CORPORATION LAW.
  S  21.  Absent explicit language expressly and unequivocally stating a
legislative intent to the contrary, all provisions of this act are irre-
futably presumed to operate in a wholly prospective  manner.  Provisions
shall be considered to operate retroactively, and therefore in violation
of  this  act,  if applied in such a manner as to alter, change, affect,
impair or defeat any rights, obligations, duties or  interests  accrued,
incurred  or conferred prior to the effective date of this act. Further-
more, the provisions of this act shall neither apply to, nor be  applied
based upon the occasion of, acts occurring prior to it becoming law.
  S  22.  This  act  shall  take effect on the one hundred eightieth day
after it shall have become a law.