Relates to conditions under which certain residential health care facilities may withdraw equity or assets totaling five percent of reported annual revenue for patient care services without prior notification, the official text

S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   8804
 
                             I N  S E N A T E
 
                              January 8, 2026
                                ___________
 
 Introduced  by  Sen.  RIVERA -- read twice and ordered printed, and when
   printed to be committed to the Committee on Rules
 
 AN ACT to amend the public health law, in relation to  conditions  under
   which non-public residential health care facilities may withdraw equi-
   ty  or  assets  totaling five percent of total reported annual revenue
   for patient care services without prior notification; and to  amend  a
   chapter of the laws of 2025 amending the public health law relating to
   equity  withdrawals  by non-public residential health care facilities,
   as proposed in legislative bills numbers  S.  5369  and  A.  2051,  in
   relation to the effectiveness thereof
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Subparagraph (ii) of paragraph (b) and subparagraph (ii) of
 paragraph (c) of subdivision 5 of section 2808 of the public health law,
 as amended by a chapter of the laws of 2025 amending the  public  health
 law relating to equity withdrawals by non-public residential health care
 facilities,  as  proposed  in  legislative  bills numbers S. 5369 and A.
 2051, are amended to read as follows:
   (ii) in the case of a residential health care  facility  which[,]  (1)
 over  the  two immediately preceding successive quarters FOR WHICH RELE-
 VANT DATA IS AVAILABLE TO THE DEPARTMENT, has been  compliant  with  the
 minimum  staffing  level requirements prescribed by section twenty-eight
 hundred ninety-five-b of this chapter[,]; (2)  IS  NOT  IN  THE  SPECIAL
 FOCUS FACILITY PROGRAM OPERATED BY THE CENTERS FOR MEDICARE AND MEDICAID
 SERVICES OR SUBJECT TO A DENIAL OF PAYMENT FOR NEW ADMISSIONS IMPOSED BY
 THE CENTERS FOR MEDICARE AND MEDICAID SERVICES; AND (3) HAS NOT BEEN THE
 SUBJECT  OF  AN  ENFORCEMENT  ACTION  BROUGHT  BY  THE DEPARTMENT OR THE
 CENTERS FOR MEDICARE AND MEDICAID  SERVICES  IN  THE  PREVIOUS  EIGHTEEN
 MONTHS  THAT  RESULTED  IN A FINDING OF DEFICIENCY, five percent of such
 facility's total reported annual  revenue  for  patient  care  services,
 based  on  the facility's most recently available reported data, without
 prior written notification to the commissioner.   Notification shall  be
 made  in  a form acceptable to the department by certified or registered
 mail.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD04752-02-6
 S. 8804                             2
 
   (ii) in the case of a residential health care  facility  which[,]  (1)
 over  the  two immediately preceding successive quarters FOR WHICH RELE-
 VANT DATA IS AVAILABLE TO THE DEPARTMENT, has been  compliant  with  the
 minimum  staffing  level requirements prescribed by section twenty-eight
 hundred  ninety-five-b  of  this  chapter[,];  (2) IS NOT IN THE SPECIAL
 FOCUS FACILITY PROGRAM OPERATED BY THE CENTERS FOR MEDICARE AND MEDICAID
 SERVICES OR SUBJECT TO A DENIAL OF PAYMENT FOR NEW ADMISSIONS IMPOSED BY
 THE CENTERS FOR MEDICARE AND MEDICAID SERVICES; AND (3) HAS NOT BEEN THE
 SUBJECT OF AN ENFORCEMENT  ACTION  BROUGHT  BY  THE  DEPARTMENT  OR  THE
 CENTERS  FOR  MEDICARE  AND  MEDICAID  SERVICES IN THE PREVIOUS EIGHTEEN
 MONTHS THAT RESULTED IN A FINDING OF DEFICIENCY, five  percent  of  such
 facility's  total  reported  annual  revenue  for patient care services,
 based on the facility's most recently available reported  data,  without
 prior  written notification to the commissioner.  The commissioner shall
 make a determination to approve or disapprove a request  for  withdrawal
 of equity or assets under this subdivision within sixty days of the date
 of the receipt of a written request from the facility. Requests shall be
 made  in  a form acceptable to the department by certified or registered
 mail. In reviewing such requests the  commissioner  shall  consider  the
 facility's  overall  financial  condition,  any indications of financial
 distress, whether the facility is delinquent in any payment owed to  the
 department,  whether  the facility has been cited for immediate jeopardy
 or substandard quality of care, and such other factors  as  the  commis-
 sioner  deems  appropriate.  In  addition to any other remedy or penalty
 available under this chapter, and after opportunity for a  hearing,  the
 commissioner  may  require replacement of the withdrawn equity or assets
 and may impose a penalty for violation of the provisions of this  subdi-
 vision  in  an  amount not to exceed ten percent of any amount withdrawn
 without prior approval.
   § 2. Section 4 of a chapter of the laws of 2025  amending  the  public
 health  law  relating  to  equity  withdrawals by non-public residential
 health care facilities, as proposed in legislative bills numbers S. 5369
 and A. 2051, is amended to read as follows:
   § 4. This act shall take effect immediately;  PROVIDED,  HOWEVER  THAT
 SECTIONS  TWO  AND THREE OF THIS ACT SHALL TAKE EFFECT ONE YEAR AFTER IT
 SHALL HAVE BECOME A LAW.
   § 3. This act shall take effect immediately;  provided,  however  that
 section  one  of  this act shall take effect on the same date and in the
 same manner as a chapter of the laws of 2025 amending the public  health
 law relating to equity withdrawals by non-public residential health care
 facilities,  as  proposed  in  legislative  bills numbers S. 5369 and A.
 2051, takes effect.