2005-06 Budget - Article 7 Bill s992


                STATE OF NEW YORK
        ________________________________________________________________________

           S. 992                                                   A. 1922
 
                SENATE - ASSEMBLY
 
                                    January 21, 2005
                                       ___________
 
        IN  SENATE -- A BUDGET BILL, submitted by the Governor pursuant to arti-
          cle seven of the Constitution -- read twice and ordered  printed,  and
          when printed to be committed to the Committee on Finance
 
        IN  ASSEMBLY  --  A  BUDGET  BILL, submitted by the Governor pursuant to
          article seven of the Constitution -- read once  and  referred  to  the
          Committee on Ways and Means
 
        AN  ACT  to  amend  the  public health law, in relation to state aid for
          municipalities, implementing parental cost sharing and negotiation  of
          rate  reimbursement  in certain circumstances, and collapsing the rate
          reimbursement structure for early intervention services; to amend  the
          insurance  law,  in  relation to early intervention services; to amend
          the tax law, in relation to the  program  for  elderly  pharmaceutical
          insurance  coverage;  to  amend the elder law, in relation to medicare
          part d prescription drug coverage; to amend chapter 62 of the laws  of
          2003,  amending the public health law relating to allowing for the use
          of funds of the office of professional medical conduct for  activities
          of the patient health information and quality improvement act of 2000,
          in relation to the effectiveness of such provisions; to repeal various
          provisions  of  the  public health law relating thereto; and to repeal
          chapter 438 of the laws of 2002, relating  to  a  study  of  infection
          control in flexible endoscopy, relating thereto (Part A); to amend the
          New  York Health Care Reform Act of 1996 and the public health law, in
          relation to extending certain provisions relating  thereto;  to  amend
          the  New York Health Care Reform Act of 2000, in relation to extending
          the effectiveness of provisions thereof; to amend  the  public  health
          law, in relation to extending the distribution of pool allocations and
          graduate  medical  education;  to  amend chapter 2 of the laws of 1998
          amending the public health law and other laws  relating  to  expanding
          the  child  health insurance plan, in relation to extending the effec-
          tiveness of certain provisions thereof; to amend  chapter  62  of  the
          laws of 2003 amending the general business law and other laws relating
          to  enacting  major components necessary to implement the state fiscal
          plan for the 2003-2004 state fiscal year,  in  relation  to  extending
          certain  provisions  thereof;  to  amend  the  public  health  law, in
          relation to continuing the priority restoration adjustment;  to  amend
          chapter  731  of  the  laws of 1993 amending the public health law and
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD12171-01-5
        S. 992                              2                            A. 1922
 
          other laws relating to reimbursement, delivery and  capital  costs  of
          ambulatory  health  care  services and inpatient hospital services, in
          relation to extending the effectiveness of portions thereof; to  amend
          the  social  services law, in relation to extending payment provisions
          for general hospitals; to amend chapter 520 of the laws of 1978 relat-
          ing to providing for a comprehensive survey of health care  financing,
          education and illness prevention and creating councils for the conduct
          thereof, in relation to extending the effectiveness of portions there-
          of;  to  amend  chapter  600  of  the laws of 1986 amending the public
          health law relating to the development of pilot reimbursement programs
          for ambulatory care services, in relation to extending the  effective-
          ness  of such chapter; to amend chapter 753 of the laws of 1989 amend-
          ing the public health law and other laws relating to general  hospital
          reimbursement  for  inpatient  and  ambulatory surgery, in relation to
          extending the effectiveness of portions thereof; to amend  the  public
          health  law,  in relation to increasing surcharges and assessments; to
          amend the public authorities law, in relation to financing the HEAL NY
          program; to amend chapter 82 of the laws of 2002 amending the environ-
          mental conservation law and other  laws  relating  to  enacting  major
          components  necessary to implement the state fiscal plan for the 2002-
          2003 state fiscal year; to amend the insurance  law,  in  relation  to
          insurance  conversions; to amend the state finance law, in relation to
          the establishment of the health care reform act (HCRA) resources fund;
          to amend chapter 266 of the laws of 1986 amending the  civil  practice
          law  and rules and other laws relating to malpractice and professional
          medical conduct, in relation to extending the applicability of certain
          provisions thereof; to amend chapter 63 of the laws of  2001  amending
          chapter  20  of  the  laws of 2001 amending the military law and other
          laws relating to making appropriations for the support of  government,
          in relation to extending the applicability of certain provisions ther-
          eof;  to  amend chapter 495 of the laws of 2004 amending the insurance
          law and the public health law relating to the New  York  state  health
          insurance  continuation  assistance demonstration project, in relation
          to the effectiveness of such provisions; to repeal title 11-A of arti-
          cle 5 of the social services law relating to the  catastrophic  health
          care  expense program; and to repeal paragraph (d) of subdivision 5 of
          section 2807-j of the public health law relating to  civil  penalties;
          and  providing  for  the  repeal  of  certain provisions of the public
          health  law  upon  the  expiration  thereof  (Part   B);   authorizing
          reimbursements  for  expenditures  made  by  or  on  behalf  of social
          services districts for medical assistance for needy  persons  and  the
          administration thereof; to amend the tax law, in relation to sales tax
          revenue  intercepts for Medicaid purposes and the deposit and disposi-
          tion of certain  revenues;  to  amend  the  social  services  law,  in
          relation  to  state  reimbursement; to amend the public health law, in
          relation to a preferred drug program; to  amend  the  social  services
          law,  in  relation  to certain therapeutic class drugs subject to such
          preferred drug program or the clinical drug review program;  to  amend
          the  elder  law,  in relation to implementing a preferred drug program
          and clinical drug program;  to  amend  the  social  services  law,  in
          relation  to  requiring  prior  authorization  of certain prescription
          drugs for nursing home residents; to amend the public health  law,  in
          relation  to general hospitals' assessments and gross receipts; and in
          relation to reimbursement of specialized services for which  the  rate
          of  payment  is  established  by  the  office of mental health; and in
          relation to providing  payments  to  certain  diagnosis-related  group
        S. 992                              3                            A. 1922
 
          patients  discharged  on  and after April 1, 2005 on a per diem basis;
          and in relation to  the  assessment  for  general  hospitals;  and  in
          relation  to  certain  rates  of  payment by governmental agencies; to
          amend the tax law and the administrative code of the city of New York,
          in  relation to nursing home assessment deduction; to amend the social
          services law, in relation to establishing the long  term  care  demon-
          stration  program;  and in relation to excluding certain services from
          the Family Health Plus Program; and in relation to  co-payments  under
          the  Family  Health  Plus  Program;  and  in relation to effecting the
          eligibility requirements for the Family Health Plus Program; to  amend
          chapter  474 of the laws of 1996, amending the education law and other
          laws relating to rates for  residential  health  care  facilities,  in
          relation  to  the  April 1, 2005 state beginning fiscal year; to amend
          the public health law, in relation to rates of payment for residential
          health care facilities; to amend the social services law, in  relation
          to  the  recovery of certain costs; and in relation to certain medical
          assistance; to amend the general municipal law and the  public  health
          law,  in  relation to continuing care retirement communities; to amend
          chapter 81 of the laws of 1995, amending the  public  health  law  and
          other  laws  relating  to medical reimbursement and welfare reform, in
          relation to amending fiscal periods and statewide target  percentages;
          to  amend  the public health law, in relation to amending fiscal peri-
          ods; to amend chapter 639 of the laws of  1996,  amending  the  public
          health  law  and other laws relating to welfare reform, in relation to
          certain trend factors used to project reimbursable operating costs; to
          amend chapter 483 of the laws of 1978, amending the public health  law
          relating  to rate of payment for each residential health care facility
          to real property costs, in relation to the effectiveness  thereof;  to
          amend  chapter 659 of the laws of 1997, amending the public health law
          and other laws relating to the creating of continuing care  retirement
          communities,  in relation to the effectiveness thereof; to amend chap-
          ter 649 of the laws of 1996 amending the public health law, the mental
          hygiene law and the social services law relating  to  authorizing  the
          establishment of special needs plans, in relation to the effectiveness
          thereof; to amend chapter 710 of the laws of 1988, amending the social
          services  law  and  the  education  law relating to medical assistance
          eligibility of certain persons and providing for managed medical  care
          demonstration  programs,  in relation to the effectiveness thereof; to
          amend chapter 165 of the laws of 1991, amending the public health  law
          and  other  laws relating to establishing payments for medical assist-
          ance, in relation to the effectiveness thereof; to amend  chapter  904
          of  the  laws  of  1984, amending the public health law and the social
          services law relating to encouraging comprehensive health services, in
          relation to the effectiveness thereof; to amend  chapter  535  of  the
          laws of 1983, amending the social services law relating to eligibility
          of certain enrollees for medical assistance, in relation to the effec-
          tiveness  thereof;  to  repeal section 3-a of part Z2 of chapter 62 of
          the laws of 2003 amending the  social  services  law  and  other  laws
          relating to implementing the state fiscal plan for the 2003-2004 state
          fiscal  year  relating to prior authorization programs for the medical
          assistance program; to repeal subdivision (x) of section 165 of  chap-
          ter  41  of the laws of 1992, amending the public health law and other
          laws relating to assessing  certain  health  care  providers  relating
          thereto;  and  to repeal certain provisions of the social services law
          relating thereto (Part  C);  to  amend  the  mental  hygiene  law,  in
          relation  to  closing  the  Middletown Psychiatric Center (Part D); to
        S. 992                              4                            A. 1922
 
          amend chapter 642 of the laws of 2004, constituting  chapter  35-A  of
          the  consolidated  laws relating to the elderly and amending the elder
          law and other laws relating to the elderly, in relation to the  effec-
          tive  date  thereof  (Part E); and to amend the mental hygiene law, in
          relation to consolidating the office  of  advocate  for  persons  with
          disabilities  into  a redesignated state commission on quality of care
          and advocacy for persons with disabilities; and to repeal  article  43
          of the executive law relating thereto (Part F)
 
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
 
     1    Section 1. This act enacts into law major  components  of  legislation
     2  which are necessary to implement the state fiscal plan for the 2005-2006
     3  state  fiscal  year.    Each component is wholly contained within a Part
     4  identified as Parts A through F. The effective date for each  particular
     5  provision contained within such Part is set forth in the last section of
     6  such Part. Any provision in any section contained within a Part, includ-
     7  ing  the  effective date of the Part, which makes reference to a section
     8  "of this act", when used in connection with that  particular  component,
     9  shall  be  deemed  to mean and refer to the corresponding section of the
    10  Part in which it is found. Section three of  this  act  sets  forth  the
    11  general effective date of this act.
 
    12                                   PART A
 
    13    Section  1. Subdivision 1, paragraph (d) of subdivision 2 and subpara-
    14  graph 2 of paragraph (b) of subdivision 3 of section 602 of  the  public
    15  health  law, as added by chapter 901 of the laws of 1986, are amended to
    16  read as follows:
    17    1. Every municipality shall [biennially] every  four  years,  on  such
    18  dates  as  may  be fixed by the commissioner, submit to the commissioner
    19  for his or her approval a public health services plan.
    20    (d) a projected [two-year] four-year plan of expenditures necessary to
    21  implement the programs;
    22    (2) disease control, which shall include  activities  to  control  and
    23  mitigate  the extent of non-infectious diseases, particularly those of a
    24  chronic, degenerative nature, and infectious diseases.  Such  activities
    25  shall include surveillance and epidemiological programs, and programs to
    26  detect diseases in their early stages. Specific activities shall include
    27  immunizations  against  infectious diseases [and], prevention and treat-
    28  ment  of  sexually  transmissible  diseases,  and  vector-borne  disease
    29  prevention.
    30    § 2. Subdivision 2 of section 605 of the public health law, as amended
    31  by chapter 474 of the laws of 1996, is amended to read as follows:
    32    2.  State  aid  reimbursement for public health services provided by a
    33  municipality under this title, shall be made as follows:
    34    (a) if the municipality is providing some or all of the  basic  public
    35  health  services  identified  in  paragraph  (b) of subdivision three of
    36  section six hundred two of this title, pursuant to an approved plan,  at
    37  a  rate  of  [up  to  fifty  per centum but] no less than thirty-six per
    38  centum of the difference between the amount of moneys  expended  by  the
    39  municipality  for  public  health  services required by paragraph (b) of
    40  subdivision three of section six hundred two of this  title  during  the
    41  fiscal  year  and the base grant provided pursuant to subdivision one of
        S. 992                              5                            A. 1922
 
     1  this section.  No such reimbursement shall be provided for  services  if
     2  they  are  not  approved  in  a plan or if no plan is submitted for such
     3  services.
     4    (b)  if  the  municipality  is  providing other public health services
     5  within limits to be prescribed by  regulation  by  the  commissioner  in
     6  addition  to some or all of the public health services required in para-
     7  graph (b) of subdivision three of section six hundred two of this title,
     8  pursuant to an approved plan, at a rate of [up to fifty per centum  but]
     9  not  less  than  thirty per centum of the moneys expended by the munici-
    10  pality for such other services. No such reimbursement shall be  provided
    11  for services if they are not approved in a plan or if no plan is submit-
    12  ted for such services.
    13    § 3. Section 611 of the public health law is REPEALED.
    14    § 4. Subdivision 1 of section 616 of the public health law, as amended
    15  by chapter 474 of the laws of 1996, is amended to read as follows:
    16    1.  The  total  amount  of state aid provided pursuant to this article
    17  shall be limited to the amount of the annual appropriation made  by  the
    18  legislature. [In no event, however, shall such state aid be less than an
    19  amount  to  provide  the  full  base grant and, as otherwise provided by
    20  paragraph (a) of subdivision two of section six  hundred  five  of  this
    21  article,  at  least  thirty-six per centum of the difference between the
    22  amount of moneys expended by the municipality for public health services
    23  required by paragraph (b) of subdivision three of  section  six  hundred
    24  two  of  this article during the fiscal year and the base grant provided
    25  pursuant to subdivision one of section six hundred five of this article.
    26  A municipality shall also receive at least  thirty  per  centum  of  the
    27  moneys  expended  for other public health services pursuant to paragraph
    28  (b) of subdivision two of section six hundred five of this article, and,
    29  at least the minimum amount so required for the services  identified  in
    30  title  two  of  this  article.    Moreover, for services provided during
    31  calendar year nineteen hundred ninety-six, no county with  a  population
    32  of  fifty  thousand or less shall receive less reimbursement pursuant to
    33  subdivision one and paragraphs (a) and (b) of subdivision two of section
    34  six hundred five of this article than it would have had a chapter of the
    35  laws of nineteen hundred ninety-six  amending  these  provisions  as  of
    36  August  first,  nineteen  hundred  ninety-six not been enacted.] For the
    37  program year commencing January first, two thousand six,  unless  other-
    38  wise   provided  in  section  six  hundred  twenty-one  of  this  title,
    39  reimbursement for each municipality will be  limited  to  an  allocation
    40  amount  to  be  established  annually  by the commissioner, the total of
    41  which shall not exceed the appropriation made by the  legislature.  Each
    42  municipal  allocation will include the base grant amount as specified in
    43  subdivision one of section six hundred  five  of  this  article,  and  a
    44  percentage  of  the total appropriation remaining after the distribution
    45  of the total base grant amount for all  municipalities.  The  percentage
    46  will  be  calculated based on the average reimbursement for that munici-
    47  pality in relation to the  statewide  state  aid  reimbursement  in  the
    48  preceding  three years for which data is available. This allocation will
    49  allow for reimbursement of the base grant amount, basic and other  costs
    50  as specified in paragraphs (a) and (b) of subdivision two of section six
    51  hundred  five  of this article. In no event shall a municipality receive
    52  more than the amounts authorized and actually spent in  accordance  with
    53  its approved municipal public health services plan.
    54    §  5.  Subdivision 2 of section 616 of the public health law is renum-
    55  bered subdivision 3 and a new subdivision 2 is added to read as follows:
        S. 992                              6                            A. 1922
 
     1    2.  If the total amount of state aid provided pursuant to this article
     2  has not been disbursed, the commissioner may, subject to the approval of
     3  the director of the budget, redistribute the undistributed appropriation
     4  to those municipalities which the commissioner determines have  received
     5  their  full  allocation  amount,  have complied with the requirements of
     6  section six hundred seventeen of this title and can demonstrate expendi-
     7  tures beyond the requirements of section six hundred seventeen  of  this
     8  title. Each such municipality meeting the aforementioned criteria, shall
     9  be  eligible  for a proration determined by the commissioner as follows:
    10  the proration of each  eligible  municipality  shall  be  calculated  by
    11  determining  the proportion of the amount claimed by each eligible muni-
    12  cipality during the entire year that  exceeds  the  amount  required  by
    13  section six hundred seventeen of this title to the total expenditures of
    14  all  such  eligible municipal claimants exceeding the amount required by
    15  section hundred seventeen of this title. Each such eligible municipality
    16  may receive no more than their prorated  portion  of  the  undistributed
    17  appropriation.
    18    §  6.  The public health law is amended by adding a new section 621 to
    19  read as follows:
    20    § 621. State aid; public health emergencies.  If the commissioner or a
    21  county health department or part-county department of health or  munici-
    22  pality,  with the approval of the commissioner, determines that there is
    23  an imminent threat to public  health,  the  department  shall  reimburse
    24  counties or municipalities at fifty per centum for the cost of emergency
    25  measures  as  approved  by the department and subject to the approval of
    26  the director of the budget. Such funds  shall  be  made  available  from
    27  funds appropriated for public health emergencies, only to those counties
    28  or  municipalities, which have expended all other state aid which may be
    29  available  for  related  activities  and  have  developed  measures   to
    30  adequately  address  the  emergency.  Reimbursement  is conditioned upon
    31  availability of appropriated funds.
    32    § 7. Subsections (b), (c) and (d) of section 3235-a of  the  insurance
    33  law,  as  added by section 3 of part C of chapter 1 of the laws of 2002,
    34  are amended to read as follows:
    35    (b) Where a policy of  accident  and  health  insurance,  including  a
    36  contract  issued  pursuant  to  article  forty-three  of  this  chapter,
    37  provides coverage for an early intervention program service, such cover-
    38  age shall not be applied against any maximum annual or lifetime monetary
    39  limits set forth in such policy  or  contract.  Visit  limitations  [and
    40  other  terms  and  conditions  of  the policy] will continue to apply to
    41  early intervention services. However, any visits used for  early  inter-
    42  vention program services shall not reduce the number of visits otherwise
    43  available  under  the  policy or contract for such services.  Where such
    44  policy provides coverage for an early intervention program service,  the
    45  individualized  family services plan certified by the early intervention
    46  official, as defined in section twenty-five  hundred  forty-one  of  the
    47  public  health law, or such official's designee, shall be deemed to meet
    48  any precertification, preauthorization and  medical  necessity  require-
    49  ments imposed on benefits under the policy.
    50    (c) Coverage shall not be denied based upon the following:
    51    (i) the location where services are provided;
    52    (ii)  the  duration  of  the child's condition and/or that the child's
    53  condition is not amenable to significant improvement  within  a  certain
    54  period of time as specified in the policy; or
    55    (iii) that the provider of services is not a participating provider in
    56  the insurer's network.
        S. 992                              7                            A. 1922
 
     1    (d) Any right of subrogation to benefits which a municipality is enti-
     2  tled  in  accordance  with paragraph (d) of subdivision three of section
     3  twenty-five hundred fifty-nine of the public health law shall  be  valid
     4  and  enforceable to the extent benefits are available under any accident
     5  and health insurance policy. The right of subrogation does not attach to
     6  insurance benefits paid or provided under any accident and health insur-
     7  ance  policy  prior to receipt by the insurer of written notice from the
     8  municipality.  Upon the insurer's receipt of  written  notice  from  the
     9  municipality,  the  insurer shall provide the municipality with informa-
    10  tion on the extent of benefits available to an insured under the policy.
    11    [(d)] (e) No insurer,  including  a  health  maintenance  organization
    12  issued a certificate of authority under article forty-four of the public
    13  health law and a corporation organized under article forty-three of this
    14  chapter,  shall  refuse to issue an accident and health insurance policy
    15  or contract or refuse to renew an accident and health  insurance  policy
    16  or  contract  solely  because  the  applicant  or  insured  is receiving
    17  services under the early intervention program.
    18    § 8. Subdivision 2 of section 2557 of the public health  law, as added
    19  by chapter 428 of the laws of 1992, is amended and two new  subdivisions
    20  6 and 7 are added to read as follows:
    21    2. The department shall reimburse the approved costs paid by a munici-
    22  pality  for the purposes of this title, other than those reimbursable by
    23  the medical assistance program or by third party payors, in an amount of
    24  fifty percent of the amount expended in accordance with  the  rules  and
    25  regulations  of  the  commissioner,  less  fifty  percent  of the amount
    26  collected by the municipality from parents pursuant to  section  twenty-
    27  five  hundred  fifty-seven-a  of this title. Such state reimbursement to
    28  the municipality shall not be paid prior to April first of the  year  in
    29  which the approved costs are paid by the municipality.
    30    6.  Effective  January  first, two thousand six, each municipality may
    31  negotiate rates, except medical assistance rates of payment,  which  are
    32  lower  than  the rates established by the department for evaluations and
    33  approved early intervention services provided to eligible  children  who
    34  reside  within the municipality. The municipality must ensure that there
    35  are sufficient providers to provide service coordination services, eval-
    36  uations and/or early intervention services.
    37    7. A municipality which has negotiated rates  for  early  intervention
    38  services  and  evaluations shall not seek reimbursement from the depart-
    39  ment in an amount exceeding fifty percent of  the  rate  negotiated  and
    40  paid to the actual provider of the early intervention services and eval-
    41  uations.  A  municipality shall provide such information as is requested
    42  by the department relative to the rates negotiated  with  providers  for
    43  early intervention services and evaluations.
    44    §  9.  The public health law is amended by adding a new section 2557-a
    45  to read as follows:
    46    § 2557-a. Parental fees.  1. Notwithstanding any other  provisions  of
    47  law, rule or regulation, there is hereby created a system of payments by
    48  parents,  including  a sliding schedule of fees as set forth in subdivi-
    49  sion two of this section. The system of payments, called parental  fees,
    50  shall be structured on a sliding scale based upon household gross yearly
    51  income. The parental fee obligation shall be established for each family
    52  on  an  annual basis and shall be a monthly fee to be paid by parents to
    53  the municipality. No parental fees, however, may be charged for:  imple-
    54  menting  child  find,  evaluation  and assessment, service coordination,
    55  development, review, and evaluation of  individualized  family  services
    56  plans  (IFSPs), or the implementation of procedural safeguards and other
        S. 992                              8                            A. 1922
 
     1  administrative components of the early intervention  system.    Parental
     2  fees  shall  apply  without  regard  to  whether payment for services is
     3  available under a private insurance plan or policy.   Parents shall  pay
     4  one  monthly  fee  as  determined  by  the schedule of fees set forth in
     5  subdivision two of this section regardless of the number of children  in
     6  the family receiving early intervention services.
     7    2. Parental fees for the early intervention program are as follows:
     8  Household Gross Income                            Parental Fee Per Month
     9  251% Federal Poverty Level (FPL) to 350% FPL      $25.00
    10  351% FPL to 400% FPL                              $40.00
    11  401% FPL to 500% FPL                              $80.00
    12  501% FPL to 600% FPL                              $150.00
    13  601% FPL to 700% FPL                              $185.00
    14  701% FPL and above                                $215.00
    15    3.  At  the written request of the parent, the parental fee obligation
    16  may be adjusted prospectively at any point during the year upon proof of
    17  a change in household gross income.
    18    4. The inability of the parents of an eligible child to  pay  parental
    19  fees  due  to catastrophic circumstances or extraordinary expenses shall
    20  not result in the denial of services to the child or the child's family.
    21    (a) Parents must document extraordinary expenses or other catastrophic
    22  circumstances by providing documentation of one of the following:
    23    (i) out-of-pocket medical expenses in excess  of  fifteen  percent  of
    24  gross income; or
    25    (ii)  other extraordinary expenses or catastrophic circumstances caus-
    26  ing direct out-of-pocket losses in excess of fifteen  percent  of  gross
    27  income.
    28    (b) Parents must present proof of loss to the early intervention offi-
    29  cial who shall document it. The early intervention official shall deter-
    30  mine  whether the parental fee obligation shall be reduced, forgiven, or
    31  suspended within ten business days after receipt of the parent's request
    32  and supporting documentation. A parent who disagrees with  the  determi-
    33  nation  of  the  early  intervention official shall have the due process
    34  rights set forth in  section  twenty-five  hundred  forty-nine  of  this
    35  title.
    36    5.  Parents  shall  provide  such  information and documentation as is
    37  necessary and sufficient for the municipality to determine the  parents'
    38  gross  household  income. The municipality shall document a parental fee
    39  obligation and collect the same from the  parents.  If  a  parental  fee
    40  obligation  has  not  been suspended or forgiven pursuant to subdivision
    41  four of this section and the parental fee has not been paid to the muni-
    42  cipality, the municipality shall notify the parents that  nonpayment  of
    43  the  parental  fee  shall result in the suspension of early intervention
    44  services. If a parent was denied a suspension, reduction or  forgiveness
    45  of  the  parental  fee  obligation  pursuant to subdivision four of this
    46  section, and the parent is pursuing due process rights  as  provided  in
    47  said  subdivision,  early  intervention  services shall not be suspended
    48  pending resolution of the due process.  If  after  notification  by  the
    49  municipality,  the  parental  fee  is  not  paid, the municipality shall
    50  suspend the early intervention services effective thirty days  from  the
    51  date  of  the notice, except those services set forth in subdivision one
    52  of this section for which no parental fee may be  charged.  The  munici-
    53  pality  shall  notify  the  early  intervention service providers of the
    54  suspension of services. A provider of early intervention services  shall
    55  be  paid  for approved services rendered until such time as the provider
    56  is notified by the municipality that  the  early  intervention  services
        S. 992                              9                            A. 1922
 
     1  have  been suspended. Upon payment or agreement between the municipality
     2  and parent for payment of the outstanding  parental  fees,  the  munici-
     3  pality  shall notify the early intervention providers that the child and
     4  family  may resume receiving early intervention services as set forth in
     5  the IFSP.
     6    6. The municipality shall provide the department with such information
     7  as may be requested by the department.  The  municipality  shall  deduct
     8  fifty  percent  of  the amount collected from parents from the amount of
     9  reimbursement for approved costs to be paid by  the  department  as  set
    10  forth  in  subdivision two of section twenty-five hundred fifty-seven of
    11  this title.
    12    § 10. Notwithstanding any inconsistent law, rule or regulation, effec-
    13  tive  on  and   after   July   1,   2005,   home   and   community-based
    14  individual/collateral  visit  shall  mean  the  provision by appropriate
    15  qualified personnel of early intervention services to an eligible  child
    16  and/or  parent(s)  or  other designated caregiver at the child's home or
    17  other natural setting in which children under three  years  of  age  are
    18  typically found (including day care centers, other than those located at
    19  the  same  premises  as  the early intervention provider, and family day
    20  care homes). The definitions of basic and extended visits as established
    21  in regulation are hereby eliminated and  a  single  rate  for  home  and
    22  community-based individual/collateral visits shall be determined annual-
    23  ly  by  the commissioner of health in accordance with section 69-4.30 of
    24  Title 10 of the New York  Codes,  Rules  and  Regulations.  The  billing
    25  limits  set  forth  in  regulation,  as applicable to basic and extended
    26  visits or as may be amended, shall continue to apply to home and  commu-
    27  nity-based individual/collateral visits defined by this act.
    28    § 11. Subdivision 5 of section 171-a of the tax law, as added by chap-
    29  ter 170 of the laws of 1994 and as renumbered by chapter 302 of the laws
    30  of 1995, is amended to read as follows:
    31    5.  Notwithstanding  any provision of law to the contrary, the commis-
    32  sioner shall enter into a cooperative agreement with the  department  of
    33  health, which agreement shall provide for the utilization of information
    34  obtained pursuant to subdivision one of this section, for the purpose of
    35  verifying  eligibility  for child health insurance plan subsidy payments
    36  and required premium payments under sections two thousand  five  hundred
    37  ten  and  two thousand five hundred eleven of the public health law, and
    38  for the purpose of verifying eligibility for  the  program  for  elderly
    39  pharmaceutical  insurance  coverage  under title three of article two of
    40  the elder law, when requested by the department of health.
    41    § 12. Paragraph 3 of subsection (e) of section 697 of the tax law,  as
    42  separately  amended  by  section 12 of part R and section 4 of part V of
    43  chapter 60 of the laws of 2004, is amended to read as follows:
    44    (3) Nothing herein shall be construed to prohibit the department,  its
    45  officers  or  employees  from  furnishing  information  to the office of
    46  temporary and disability assistance relating to the payment of the cred-
    47  it for certain household and dependent care services necessary for gain-
    48  ful employment under subsection (c) of section six hundred six  of  this
    49  article and the earned income credit under subsection (d) of section six
    50  hundred  six  of  this  article, or pursuant to a local law enacted by a
    51  city having a population of one million or more pursuant  to  subsection
    52  (f)  of section thirteen hundred ten of this chapter, only to the extent
    53  necessary to calculate  qualified  state  expenditures  under  paragraph
    54  seven  of  subdivision  (a)  of section four hundred nine of the federal
    55  social security act or to document the  proper  expenditure  of  federal
    56  temporary assistance for needy families funds under section four hundred
        S. 992                             10                            A. 1922
 
     1  three of such act. The office of temporary and disability assistance may
     2  redisclose  such  information  to the United States department of health
     3  and human services only to the extent necessary to calculate such quali-
     4  fied  state  expenditures  or to document the proper expenditure of such
     5  federal temporary assistance for needy families  funds.  Nothing  herein
     6  shall  be  construed  to  prohibit the delivery by the commissioner to a
     7  commissioner of jurors, appointed pursuant to section five hundred  four
     8  of  the judiciary law, or, in counties within cities having a population
     9  of one million or more, to the county clerk of such county, of a mailing
    10  list of individuals to whom income tax forms are mailed by  the  commis-
    11  sioner for the sole purpose of compiling a list of prospective jurors as
    12  provided  in  article  sixteen of the judiciary law.  Provided, however,
    13  such delivery shall only be made pursuant  to  an  order  of  the  chief
    14  administrator  of  the courts, appointed pursuant to section two hundred
    15  ten of the judiciary law. No such order may be issued unless such  chief
    16  administrator is satisfied that such mailing list is needed to compile a
    17  proper list of prospective jurors for the county for which such order is
    18  sought  and that, in view of the responsibilities imposed by the various
    19  laws of the state on the department, it is  reasonable  to  require  the
    20  commissioner  to  furnish  such list. Such order shall provide that such
    21  list shall be used for the sole purpose of compiling a list of  prospec-
    22  tive  jurors and that such commissioner of jurors, or such county clerk,
    23  shall take all necessary steps to insure that the list is kept confiden-
    24  tial and that there is no unauthorized use or disclosure of  such  list.
    25  Furthermore,  nothing herein shall be construed to prohibit the delivery
    26  to a taxpayer or his or her duly authorized representative of  a  certi-
    27  fied  copy  of  any return or report filed in connection with his or her
    28  tax or to prohibit the publication of statistics  so  classified  as  to
    29  prevent  the  identification  of  particular  reports or returns and the
    30  items thereof, or the inspection by the attorney general or other  legal
    31  representatives  of the state of the report or return of any taxpayer or
    32  of any employer filed under section one hundred  seventy-one-h  of  this
    33  chapter, where such taxpayer or employer shall bring action to set aside
    34  or review the tax based thereon, or against whom an action or proceeding
    35  under  this  chapter  or  under this chapter and article eighteen of the
    36  labor law has been recommended by the commissioner, the commissioner  of
    37  labor  with  respect  to unemployment insurance matters, or the attorney
    38  general or has been instituted, or the  inspection  of  the  reports  or
    39  returns  required  under  this article by the comptroller or duly desig-
    40  nated officer or employee of the state department of audit and  control,
    41  for  purposes  of  the  audit  of a refund of any tax paid by a taxpayer
    42  under this article, or the furnishing to the state department  of  labor
    43  of unemployment insurance information obtained or derived from quarterly
    44  combined  withholding, wage reporting and unemployment insurance returns
    45  required to  be  filed  by  employers  pursuant  to  paragraph  four  of
    46  subsection  (a) of section six hundred seventy-four of this article, for
    47  purposes of administration  of  such  department's  employment  security
    48  programs,  evaluation of employment and training programs for which such
    49  department  has  administrative,  reporting,  monitoring  or  evaluating
    50  responsibilities, and redisclosure of such information when necessary to
    51  enable  such  department  to  comply with the provisions of section five
    52  hundred thirty-seven of the labor law or any other  applicable  law,  or
    53  the  furnishing  to the state office of temporary and disability assist-
    54  ance of information obtained or derived from  New  York  state  personal
    55  income  tax  returns as described in paragraph (b) of subdivision two of
    56  section one hundred seventy-one-g of this chapter  for  the  purpose  of
        S. 992                             11                            A. 1922
 
     1  reviewing  support  orders  enforced  pursuant to title six-A of article
     2  three of the social services law to aid in the determination of  whether
     3  such  orders  should  be  adjusted,  or  the  furnishing  of information
     4  obtained  from the reports required to be submitted by employers regard-
     5  ing newly hired or re-hired employees pursuant to  section  one  hundred
     6  seventy-one-h of this chapter to the state office of temporary and disa-
     7  bility  assistance, the state department of health, the state department
     8  of labor and the workers' compensation board for  purposes  of  adminis-
     9  tration  of the child support enforcement program, verification of indi-
    10  viduals' eligibility for one  or  more  of  the  programs  specified  in
    11  subsection  (b)  of  section  eleven hundred thirty-seven of the federal
    12  social security act and for other public assistance programs  authorized
    13  by  state law, and administration of the state's employment security and
    14  workers' compensation programs, and to the  national  directory  of  new
    15  hires  established pursuant to section four hundred fifty-three-A of the
    16  federal social security act for the purposes specified in such  section,
    17  or  the  furnishing  to  the  state  office  of temporary and disability
    18  assistance of the amount of an overpayment of income  tax  and  interest
    19  thereon  certified  to  the  comptroller to be credited against past-due
    20  support pursuant to section one hundred seventy-one-c  of  this  chapter
    21  and of the name and social security number of the taxpayer who made such
    22  overpayment,  or  the  disclosing  to the commissioner of finance of the
    23  city of New York, pursuant to section one hundred seventy-one-l of  this
    24  chapter,  of the amount of an overpayment and interest thereon certified
    25  to the comptroller to be credited against a city of New York tax warrant
    26  judgment debt and of the name and social security number of the taxpayer
    27  who made such overpayment, or the furnishing to the New York state high-
    28  er education services corporation of the amount  of  an  overpayment  of
    29  income tax and interest thereon certified to the comptroller to be cred-
    30  ited  against  the  amount  of  a  default  in repayment of a guaranteed
    31  student loan pursuant to section one hundred seventy-one-d of this chap-
    32  ter and of the name and social security number of the taxpayer who  made
    33  such overpayment, or the furnishing to the state department of health of
    34  the  information  required  by subdivision two-a of section two thousand
    35  five hundred eleven of the public health law, or the furnishing  to  the
    36  state  university of New York or the city university of New York respec-
    37  tively or the attorney general on behalf of such state or city universi-
    38  ty the amount of an overpayment  of  income  tax  and  interest  thereon
    39  certified  to  the  comptroller  to  be credited against the amount of a
    40  default in repayment of a state university loan pursuant to section  one
    41  hundred seventy-one-e of this chapter and of the name and social securi-
    42  ty  number  of the taxpayer who made such overpayment, or the disclosing
    43  to a state agency, pursuant to section one hundred seventy-one-f of this
    44  chapter, of the amount of an overpayment and interest thereon  certified
    45  to the comptroller to be credited against a past-due legally enforceable
    46  debt  owed  to such agency and of the name and social security number of
    47  the taxpayer who made such overpayment, or the  furnishing  of  employee
    48  and  employer  information  obtained  through the wage reporting system,
    49  pursuant to section one hundred seventy-one-a of this chapter, as  added
    50  by  chapter  five  hundred  forty-five  of  the laws of nineteen hundred
    51  seventy-eight, to the state office of temporary and  disability  assist-
    52  ance  for  the  purpose  of verifying eligibility for and entitlement to
    53  amounts of benefits under the social services  law  or  similar  law  of
    54  another  jurisdiction,  locating absent parents or other persons legally
    55  responsible for the support of applicants for or  recipients  of  public
    56  assistance  and  care  under the social services law and persons legally
        S. 992                             12                            A. 1922
 
     1  responsible for the support of a recipient of services under section one
     2  hundred eleven-g of the social services law and, in  appropriate  cases,
     3  establishing support obligations pursuant to the social services law and
     4  the family court act or similar provision of law of another jurisdiction
     5  for the purpose of evaluating the effect on earnings of participation in
     6  employment, training or other programs designed to promote self-suffici-
     7  ency  authorized  pursuant to the social services law by current recipi-
     8  ents of public assistance and care and by former applicants and  recipi-
     9  ents  of  public assistance and care, (except that with regard to former
    10  recipients, information which relates to a particular  former  recipient
    11  shall  be  provided  with  client  identifying data deleted), and to the
    12  state department of  labor,  or  other  individuals  designated  by  the
    13  commissioner  of  labor,  for  the purpose of the administration of such
    14  department's  employment  security  programs,  public  assistance   work
    15  programs,  or  for other purposes deemed appropriate by the commissioner
    16  of labor consistent with the provisions of the labor law, as well as for
    17  the evaluation of the effect on earnings of  participation  in  training
    18  programs  with  respect  to which the department of labor has reporting,
    19  monitoring,  administration,  or  evaluation  responsibilities,  or  the
    20  furnishing  of  information,  which  is obtained from the wage reporting
    21  system operated pursuant to section one hundred  seventy-one-a  of  this
    22  chapter,  as  added  by  chapter  five hundred forty-five of the laws of
    23  nineteen hundred seventy-eight, to the state  office  of  temporary  and
    24  disability  assistance so that it may furnish such information to public
    25  agencies of other jurisdictions with which the state office of temporary
    26  and disability assistance has an agreement pursuant to paragraph (h)  or
    27  (i)  of  subdivision three of section twenty of the social services law,
    28  and to the state office of temporary and disability assistance  for  the
    29  purpose  of fulfilling obligations and responsibilities otherwise incum-
    30  bent upon the state department of labor, under section one hundred twen-
    31  ty-four of the federal family support act of  nineteen  hundred  eighty-
    32  eight,  by  giving the federal parent locator service, maintained by the
    33  federal department of health and human services, prompt access  to  such
    34  information  as  required  by  such  act,  or to the state department of
    35  health to establish eligibility under the child  health  insurance  plan
    36  pursuant to subdivision two-a of section two thousand five hundred elev-
    37  en  of  the  public health law and to verify eligibility for the program
    38  for elderly pharmaceutical insurance coverage under title three of arti-
    39  cle two of the elder law, or to the office of vocational and educational
    40  services for individuals with disabilities of the education  department,
    41  the  commission  for  the  blind  and visually handicapped and any other
    42  state  vocational  rehabilitation  agency,  for  purposes  of  obtaining
    43  reimbursement  from  the  federal  social  security  administration  for
    44  expenditures made by such office, commission  or  agency  on  behalf  of
    45  disabled   individuals  who  have  achieved  economic  self-sufficiency.
    46  Provided, however, that with respect to employee information the  office
    47  of  temporary and disability assistance shall only be furnished with the
    48  names, social security account numbers and gross wages of those  employ-
    49  ees  who  are  (A)  applicants  for  or recipients of benefits under the
    50  social services law, or similar provision of law of another jurisdiction
    51  (pursuant to an agreement under subdivision three of section  twenty  of
    52  the social services law) or, (B) absent parents or other persons legally
    53  responsible  for  the  support of applicants for or recipients of public
    54  assistance and care under the social services law or  similar  provision
    55  of  law of another jurisdiction (pursuant to an agreement under subdivi-
    56  sion three of section twenty of the social services law), or (C) persons
        S. 992                             13                            A. 1922
 
     1  legally responsible for the support of a  recipient  of  services  under
     2  section  one  hundred  eleven-g  of  the  social services law or similar
     3  provision of law of another jurisdiction (pursuant to an agreement under
     4  subdivision  three of section twenty of the social services law), or (D)
     5  employees  about  whom  wage  reporting  system  information  is   being
     6  furnished  to  public  agencies  of  other jurisdictions, with which the
     7  state office of temporary and disability  assistance  has  an  agreement
     8  pursuant  to paragraph (h) or (i) of subdivision three of section twenty
     9  of the social services law, or (E) employees about whom  wage  reporting
    10  system  information  is  being  furnished  to the federal parent locator
    11  service, maintained by  the  federal  department  of  health  and  human
    12  services,  for the purpose of enabling the state office of temporary and
    13  disability assistance to fulfill obligations and responsibilities other-
    14  wise incumbent upon the state department of  labor,  under  section  one
    15  hundred  twenty-four  of  the  federal  family  support  act of nineteen
    16  hundred eighty-eight, and, only if, the office of temporary and disabil-
    17  ity assistance certifies to the commissioner that such persons are  such
    18  applicants,  recipients,  absent  parents or persons legally responsible
    19  for support or persons about whom information has been  requested  by  a
    20  public  agency  of another jurisdiction or by the federal parent locator
    21  service and further certifies that in the case of information  requested
    22  under  agreements  with  other  jurisdictions  entered  into pursuant to
    23  subdivision three of section twenty of the  social  services  law,  that
    24  such request is in compliance with any applicable federal law. Provided,
    25  further,  that  where  the office of temporary and disability assistance
    26  requests employee information for the purpose of evaluating the  effects
    27  on  earnings  of participation in employment, training or other programs
    28  designed to promote self-sufficiency authorized pursuant to  the  social
    29  services  law,  the  office of temporary and disability assistance shall
    30  only be furnished with the quarterly gross wages (excluding  any  refer-
    31  ence  to the name, social security number or any other information which
    32  could be used to identify any employee or  the  name  or  identification
    33  number  of any employer) paid to employees who are former applicants for
    34  or recipients of public assistance and care and who are so certified  to
    35  the  commissioner  by  the  commissioner  of the office of temporary and
    36  disability assistance. Provided, further, that with respect to  employee
    37  information,  the  department of health shall only be furnished with the
    38  information required pursuant to subdivision two-a of section two  thou-
    39  sand  five hundred eleven of the public health law with respect to those
    40  children whose eligibility under the child health insurance plan  is  to
    41  be  determined  pursuant  to  such subdivision two-a and with respect to
    42  those members of any such child's household whose  income  affects  such
    43  child's  eligibility  and who are so certified to the commissioner or by
    44  the department of health. Provided, further, that wage reporting  infor-
    45  mation  shall  be  furnished to the office of vocational and educational
    46  services for individuals with disabilities of the education  department,
    47  the  commission  for  the  blind  and visually handicapped and any other
    48  state vocational rehabilitation agency only if such  office,  commission
    49  or agency, as applicable, certifies to the commissioner that such infor-
    50  mation  is  necessary  to  obtain  reimbursement from the federal social
    51  security administration for expenditures  made  on  behalf  of  disabled
    52  individuals  who  have  achieved self-sufficiency.   Reports and returns
    53  shall be preserved for three years and thereafter until the commissioner
    54  orders them to be destroyed.
        S. 992                             14                            A. 1922
 
     1    § 13. Paragraph (c) of subdivision 3 of section 242 of the elder  law,
     2  as  amended by section 1 of part A of chapter 49 of the laws of 2004, is
     3  amended to read as follows:
     4    (c)  The  fact that some of an individual's prescription drug expenses
     5  are paid or reimbursable under the provisions of  the  medicare  program
     6  shall  not disqualify an individual, if he or she is otherwise eligible,
     7  from receiving assistance under this [article] title.   In  such  cases,
     8  the  state  shall pay the portion of the cost of those prescriptions for
     9  qualified drugs for which no payment or reimbursement  is  made  by  the
    10  medicare program or any federally funded prescription drug benefit, less
    11  the  participant's  co-payment  required  on  the amount not paid by the
    12  medicare program. In addition, the participant registration fee  charged
    13  to  eligible program participants for comprehensive coverage pursuant to
    14  section [five hundred forty-seven-g] two  hundred  forty-seven  of  this
    15  [article]  title  shall be waived for the portion of the annual coverage
    16  period that the participant is also enrolled as a  transitional  assist-
    17  ance  beneficiary  in  the  medicare  prescription  drug  discount  card
    18  program, authorized pursuant to title XVIII of the federal social  secu-
    19  rity  act,  provided  that:  (i)  any sponsor of such drug discount card
    20  program has signed an agreement  to  complete  coordination  of  benefit
    21  functions  with  EPIC,  and has been endorsed by the EPIC panel; or (ii)
    22  any exclusive sponsor of such  drug  discount  card  program  authorized
    23  pursuant  to  title XVIII of the federal social security act that limits
    24  the participants to the medicare prescription drug discount card program
    25  sponsored by such exclusive sponsor, shall coordinate benefits available
    26  under such discount card program with EPIC.   The participant  registra-
    27  tion  fee  charged  to  eligible  program participants for comprehensive
    28  coverage pursuant to section two hundred forty-seven of this title shall
    29  be waived for the portion of the annual coverage period that the partic-
    30  ipant is also enrolled as a full subsidy individual  in  a  prescription
    31  drug  or  MA-PD  plan  under Part D of title XVIII of the federal social
    32  security act.
    33    § 14. Subdivision 3 of section 242 of the  elder  law  is  amended  by
    34  adding a new paragraph (e) to read as follows:
    35    (e)  In  order  to maximize prescription drug coverage under Part D of
    36  title XVIII of the federal social security act, the  elderly  pharmaceu-
    37  tical  insurance  coverage  program  is  authorized to represent program
    38  participants under this title in the pursuit of  such  coverage.    Such
    39  representation shall not result in any additional financial liability on
    40  behalf of such program participants and shall include, but not be limit-
    41  ed to, the following actions:
    42    (i)  application  for the premium and cost-sharing subsidies on behalf
    43  of eligible program participants;
    44    (ii) enrollment in a prescription drug plan or MA-PD plan; the elderly
    45  pharmaceutical insurance coverage program shall provide program  partic-
    46  ipants  with  prior  written  notice of, and the opportunity to decline,
    47  such enrollment;
    48    (iii) pursuit of appeals, grievances, or coverage determinations.
    49    § 15. Paragraph (k) of subdivision 5 of section 244 of the elder  law,
    50  as  added  by  section 3 of part A of chapter 49 of the laws of 2004, is
    51  amended to read as follows:
    52    (k) enter into an agreement with  one  or  more  sponsors  of  a  drug
    53  discount card program or a prescription drug plan authorized under title
    54  XVIII  of  the federal social security act, to serve as an endorsed EPIC
    55  drug discount card program or prescription drug plan for the purposes of
    56  effective coordination of benefits.
        S. 992                             15                            A. 1922
 
     1    § 16. Notwithstanding any inconsistent provision  of  section  112  or
     2  article  11  of  the  state  finance  law or section 142 of the economic
     3  development law or any other law, the elderly  pharmaceutical  insurance
     4  coverage  panel  established pursuant to section 244 of the elder law is
     5  authorized  to enter into an agreement authorized under paragraph (k) of
     6  subdivision five of section 244 of the elder law, without a  competitive
     7  bid or request for proposal process, with a prescription drug plan spon-
     8  sor authorized under Part D of title XVIII of the federal social securi-
     9  ty act, to serve as an endorsed EPIC prescription drug plan for purposes
    10  of effective coordination of benefits.
    11    §  17.  Chapter  438  of  the  laws  of  2002,  relating to a study of
    12  infection control in flexible endoscopy, is REPEALED.
    13    § 18. Article 27-I of the public health law is REPEALED.
    14    § 19. Article 4-A of the public health law is REPEALED.
    15    § 20. Article 36-A of the public health law is REPEALED.
    16    § 21. Section 4 of part X2 of chapter 62 of the laws of 2003, amending
    17  the public health law relating to allowing for the use of funds  of  the
    18  office  of  professional  medical  conduct for activities of the patient
    19  health information and quality improvement act of 2000,  as  amended  by
    20  section  2  of  part  A of chapter 58 of the laws of 2004, is amended to
    21  read as follows:
    22    § 4. This  act  shall  take  effect  immediately;  provided  that  the
    23  provisions  of  section  one of this act shall be deemed to have been in
    24  full force and effect on and after April  1,  2003[,  and  shall  expire
    25  March  31, 2005 when upon such date the provisions of such section shall
    26  be deemed repealed].
    27    § 22. This act shall take effect immediately and shall  be  deemed  to
    28  have been in full force and effect on and after April 1, 2005; provided,
    29  however, that sections one through five, nine, eleven and twelve of this
    30  act shall take effect January 1, 2006.
 
    31                                   PART B
 
    32    Section  1. Subdivision 5 of section 168 of chapter 639 of the laws of
    33  1996, constituting the New York Health  Care  Reform  Act  of  1996,  as
    34  amended  by  section  1 of part A3 of chapter 62 of the laws of 2003, is
    35  amended to read as follows:
    36    5. sections 2807-c, 2807-j, 2807-s and 2807-t  of  the  public  health
    37  law,  as amended or as added by this act, shall expire on July 1, [2005]
    38  2007, and shall be thereafter effective only in respect to any act  done
    39  on  or  before such date or action or proceeding arising out of such act
    40  including continued collections of funds from assessments and allowances
    41  and surcharges established pursuant to sections 2807-c,  2807-j,  2807-s
    42  and  2807-t  of  the  public health law, and administration and distrib-
    43  utions of funds from pools  established  pursuant  to  sections  2807-c,
    44  2807-j,  2807-k,  2807-l, 2807-m, 2807-s and 2807-t of the public health
    45  law related to patient services provided before July 1, [2005] 2007, and
    46  continued expenditure of funds authorized for programs and grants  until
    47  the exhaustion of funds therefor;
    48    §  2.  Subdivision  1 of section 138 of chapter 1 of the laws of 1999,
    49  constituting the New York Health Care Reform Act of 2000, as amended  by
    50  section  2  of  part A3 of chapter 62 of the laws of 2003, is amended to
    51  read as follows:
    52    1. sections 2807-c, 2807-j, 2807-s, and 2807-t of  the  public  health
    53  law,  as  amended  by this act, shall expire on July 1, [2005] 2007, and
    54  thereafter effective only in respect to any act done before such date or
        S. 992                             16                            A. 1922
 
     1  action or  proceeding  arising  out  of  such  act  including  continued
     2  collections  of  funds  from  assessments  and allowances and surcharges
     3  established pursuant to sections 2807-c, 2807-j, 2807-s  and  2807-t  of
     4  the  public  health  law,  and administration and distributions of funds
     5  from pools established pursuant  to  sections  2807-c,  2807-j,  2807-k,
     6  2807-l,  2807-m,  2807-s, 2807-t, 2807-v and 2807-w of the public health
     7  law, as amended or added  by  this  act,  related  to  patient  services
     8  provided  before July 1, [2005] 2007, and continued expenditure of funds
     9  authorized for programs and grants until the exhaustion of funds  there-
    10  for;
    11    § 3. Section 2807-v of the public health law, as amended by section 17
    12  of  part  A3  of  chapter 62 of the laws of 2003, the opening paragraph,
    13  subparagraphs (v) and (vi) of paragraph (c), and the  opening  paragraph
    14  of  paragraph  (k)  as amended by chapter 114 of the laws of 2004, para-
    15  graph (i-1) as added by chapter 495 of the laws of  2004,  subparagraphs
    16  (iv),  (v)  and (vi) of paragraph (l) as amended by section 29 of part H
    17  of chapter 686 of the laws of 2003, the opening paragraph  of  paragraph
    18  (n)  as  amended  by  chapter  642 of the laws of 2004, paragraph (s) as
    19  amended by section 2 of part K1 of chapter  63  of  the  laws  of  2003,
    20  subparagraphs (v) and (vi) of paragraph (k) as amended by section 14  of
    21  part  B of chapter 58 of the laws of 2004, subparagraphs (v) and (vi) of
    22  paragraph (n) as amended by section 15 of part B of chapter  58  of  the
    23  laws  of 2004, subparagraphs (v) and (vi) of paragraph (o) as amended by
    24  section 16 of part B of chapter 58 of the  laws  of  2004,  the  opening
    25  paragraph  of paragraph (hh) as amended by section 25 of part C of chap-
    26  ter 58 of the laws of 2004, paragraph (mm) as amended by  section  1  of
    27  part  C  of  chapter  58 of the laws of 2004, paragraph (oo) as added by
    28  section 10 of part B of chapter 58 of the laws of 2004,  paragraph  (pp)
    29  as  added  by  section  22  of part B of chapter 58 of the laws of 2004,
    30  paragraph (qq) as added by section 26 of part B of  chapter  58  of  the
    31  laws  of  2004,  paragraph (ss) as amended by chapter 745 of the laws of
    32  2004, paragraph (tt) as added by section 5 of part D of  chapter  58  of
    33  the laws of 2004, and paragraph (vv) as added by section 23 of part C of
    34  chapter  58 of the laws of 2004, of subdivision 1, is amended to read as
    35  follows:
    36    § 2807-v. Tobacco control  and  insurance  initiatives  pool  distrib-
    37  utions.    1.  Funds  accumulated  in  the tobacco control and insurance
    38  initiatives  pool,  including  income  from  invested  funds,  shall  be
    39  distributed or retained by the commissioner or by the state comptroller,
    40  as applicable, in accordance with the following:
    41    (a)  Funds  shall  be  deposited  by  the commissioner, within amounts
    42  appropriated,  and  the  state  comptroller  is  hereby  authorized  and
    43  directed  to  receive  for  deposit  to  the credit of the state special
    44  revenue funds - other, HCRA transfer fund, medicaid  fraud  hotline  and
    45  medicaid  administration  account, or any successor fund or account, for
    46  purposes of services and expenses  related  to  the  toll-free  medicaid
    47  fraud hotline established pursuant to section one hundred eight of chap-
    48  ter  one  of  the  laws of nineteen hundred ninety-nine from the tobacco
    49  control and insurance initiatives pool  established  for  the  following
    50  periods in the following amounts: four hundred thousand dollars annually
    51  for  the  periods  January  first, two thousand through December thirty-
    52  first, two thousand two, up to four hundred  thousand  dollars  for  the
    53  period  January first, two thousand three through December thirty-first,
    54  two thousand three, up to four hundred thousand dollars for  the  period
    55  January  first,  two  thousand  four  through December thirty-first, two
    56  thousand four, [and] up to [two] four hundred thousand dollars  for  the
        S. 992                             17                            A. 1922
 
     1  period  January first, two thousand five through [June thirtieth] Decem-
     2  ber thirty-first, two thousand five, up to four hundred thousand dollars
     3  for the period January first, two thousand six through December  thirty-
     4  first,  two thousand six, and up to two hundred thousand dollars for the
     5  period January first, two thousand seven  through  June  thirtieth,  two
     6  thousand seven.
     7    (b)  Funds shall be reserved and accumulated from year to year [by the
     8  commissioner] and shall be available,  including  income  from  invested
     9  funds, for purposes of payment of audits or audit contracts necessary to
    10  determine  payor  and provider compliance with requirements set forth in
    11  sections twenty-eight hundred seven-j, twenty-eight hundred seven-s  and
    12  twenty-eight  hundred  seven-t  of  this article and hospital compliance
    13  with paragraph six of subdivision (a) of section 405.4 of  title  10  of
    14  the official compilation of codes, rules and regulations of the state of
    15  New  York  in  accordance  with subdivision nine of section twenty-eight
    16  hundred three of this article from the  tobacco  control  and  insurance
    17  initiatives  pool established for the following periods in the following
    18  amounts: five million six hundred  thousand  dollars  annually  for  the
    19  periods  January  first, two thousand through December thirty-first, two
    20  thousand two, up to five million dollars for the period  January  first,
    21  two thousand three through December thirty-first, two thousand three, up
    22  to  five million dollars for the period January first, two thousand four
    23  through December thirty-first, two thousand four, [and] up to [two] five
    24  million [five hundred thousand] dollars for the  period  January  first,
    25  two  thousand  five  through [June thirtieth] December thirty first, two
    26  thousand five, up to five million dollars for the period January  first,
    27  two thousand six through December thirty-first, two thousand six, and up
    28  to  two  million  five  hundred  thousand dollars for the period January
    29  first, two thousand seven through June thirtieth, two thousand seven.
    30    (c) Funds shall be  deposited  by  the  commissioner,  within  amounts
    31  appropriated,  and  the  state  comptroller  is  hereby  authorized  and
    32  directed to receive for deposit to  the  credit  of  the  state  special
    33  revenue  funds  - other, HCRA transfer fund, enhanced community services
    34  account, or any successor fund or account, for  mental  health  services
    35  programs for case management services for adults and children; supported
    36  housing;  home  and community based waiver services; family based treat-
    37  ment; family support services; mobile mental health teams;  transitional
    38  housing; and community oversight, established pursuant to articles seven
    39  and  forty-one of the mental hygiene law and subdivision nine of section
    40  three hundred sixty-six of the social services law; and  for  comprehen-
    41  sive  care centers for eating disorders pursuant to section twenty-seven
    42  hundred ninety-nine-l of this chapter, provided however that,  for  such
    43  centers,  funds  in  the  amount  of five hundred thousand dollars on an
    44  annual basis shall be transferred from the enhanced  community  services
    45  account and deposited into the fund established by section ninety-five-e
    46  of  the state finance law; from the tobacco control and insurance initi-
    47  atives pool established for  the  following  periods  in  the  following
    48  amounts:
    49    (i)  forty-eight million dollars to be reserved, to be retained or for
    50  distribution pursuant to a chapter of the laws of two thousand, for  the
    51  period  January  first,  two thousand through December thirty-first, two
    52  thousand;
    53    (ii) eighty-seven million dollars to be reserved, to  be  retained  or
    54  for  distribution pursuant to a chapter of the laws of two thousand one,
    55  for the period January first, two thousand one through December  thirty-
    56  first, two thousand one;
        S. 992                             18                            A. 1922
 
     1    (iii)  eighty-seven  million dollars to be reserved, to be retained or
     2  for distribution pursuant to a chapter of the laws of two thousand  two,
     3  for  the period January first, two thousand two through December thirty-
     4  first, two thousand two;
     5    (iv)  eighty-eight  million  dollars to be reserved, to be retained or
     6  for distribution pursuant to a chapter  of  the  laws  of  two  thousand
     7  three, for the period January first, two thousand three through December
     8  thirty-first, two thousand three;
     9    (v)  eighty-eight million dollars, plus five hundred thousand dollars,
    10  to be reserved, to be retained or for distribution pursuant to a chapter
    11  of the laws of two thousand four, and pursuant to  section  twenty-seven
    12  hundred ninety-nine-l of this chapter, for the period January first, two
    13  thousand four through December thirty-first, two thousand four; [and]
    14    (vi) [forty-four] forty-eight million dollars, plus [two] five hundred
    15  [fifty] thousand dollars, to be reserved, to be retained or for distrib-
    16  ution pursuant to a chapter of the laws of two thousand five, and pursu-
    17  ant  to  section twenty-seven hundred ninety-nine-l of this chapter, for
    18  the period January first, two thousand  five  through  [June  thirtieth]
    19  December thirty-first, two thousand five;
    20    (vii)   eighty-eight  million  dollars,  plus  five  hundred  thousand
    21  dollars, to be reserved, to be retained or for distribution pursuant  to
    22  a chapter of the laws of two thousand six, and pursuant to section twen-
    23  ty-seven  hundred  ninety-nine-l of this chapter, for the period January
    24  first, two thousand six through December thirty-first, two thousand six;
    25  and
    26    (viii) forty-four million dollars, plus  two  hundred  fifty  thousand
    27  dollars,  to be reserved, to be retained or for distribution pursuant to
    28  a chapter of the laws of two thousand  seven  and  pursuant  to  section
    29  twenty-seven hundred ninety-nine-l of this chapter, for the period Janu-
    30  ary  first,  two  thousand  seven  through  June thirtieth, two thousand
    31  seven.
    32    (d) Funds shall be  deposited  by  the  commissioner,  within  amounts
    33  appropriated,  and  the  state  comptroller  is  hereby  authorized  and
    34  directed to receive for deposit to  the  credit  of  the  state  special
    35  revenue  funds  - other, HCRA transfer fund, medical assistance account,
    36  or any successor fund or account, for  purposes  of  funding  the  state
    37  share of services and expenses related to the family health plus program
    38  including up to two and one-half million dollars annually for the period
    39  January  first, two thousand through December thirty-first, two thousand
    40  two, for administration and marketing costs associated with such program
    41  established pursuant to clause (A) of subparagraph (v) of paragraph  (a)
    42  of  subdivision two of section three hundred sixty-nine-ee of the social
    43  services law from the tobacco control  and  insurance  initiatives  pool
    44  established for the following periods in the following amounts:
    45    (i) three million five hundred thousand dollars for the period January
    46  first, two thousand through December thirty-first, two thousand;
    47    (ii)  twenty-seven  million  dollars for the period January first, two
    48  thousand one through December thirty-first, two thousand one; and
    49    (iii) fifty-seven million dollars for the period  January  first,  two
    50  thousand two through December thirty-first, two thousand two.
    51    (e)  Funds  shall  be  deposited  by  the commissioner, within amounts
    52  appropriated,  and  the  state  comptroller  is  hereby  authorized  and
    53  directed  to  receive  for  deposit  to  the credit of the state special
    54  revenue funds - other, HCRA transfer fund, medical  assistance  account,
    55  or  any  successor  fund  or  account, for purposes of funding the state
    56  share of services and expenses related to the family health plus program
        S. 992                             19                            A. 1922
 
     1  including up to two and one-half million dollars annually for the period
     2  January first, two thousand through December thirty-first, two  thousand
     3  two  for administration and marketing costs associated with such program
     4  established  pursuant to clause (B) of subparagraph (v) of paragraph (a)
     5  of subdivision two of section three hundred sixty-nine-ee of the  social
     6  services  law  from  the  tobacco control and insurance initiatives pool
     7  established for the following periods in the following amounts:
     8    (i) two million five hundred thousand dollars for the  period  January
     9  first, two thousand through December thirty-first, two thousand;
    10    (ii) thirty million five hundred thousand dollars for the period Janu-
    11  ary  first, two thousand one through December thirty-first, two thousand
    12  one; and
    13    (iii) sixty-six million dollars for  the  period  January  first,  two
    14  thousand two through December thirty-first, two thousand two.
    15    (f)  Funds  shall  be  deposited  by  the commissioner, within amounts
    16  appropriated,  and  the  state  comptroller  is  hereby  authorized  and
    17  directed  to  receive  for  deposit  to  the credit of the state special
    18  revenue funds - other, HCRA transfer fund, medicaid  fraud  hotline  and
    19  medicaid  administration  account, or any successor fund or account, for
    20  purposes of payment of administrative expenses of the department related
    21  to the family health plus program established pursuant to section  three
    22  hundred  sixty-nine-ee  of  the  social  services  law  from the tobacco
    23  control and insurance initiatives pool  established  for  the  following
    24  periods  in  the  following amounts: five hundred thousand dollars on an
    25  annual basis for the periods January first, two thousand through  Decem-
    26  ber  thirty-first,  two thousand [four] six, and two hundred fifty thou-
    27  sand dollars for the period January first,  two  thousand  [five]  seven
    28  through June thirtieth, two thousand [five] seven.
    29    (g)  Funds shall be reserved and accumulated from year to year [by the
    30  commissioner] and shall be available,  including  income  from  invested
    31  funds,  contingent upon meeting all funding amounts established pursuant
    32  to paragraphs (a), (b), (c), (d), (e), (f), (l), (m), (n), (p), (q), (r)
    33  and (s) of this  subdivision,  paragraph  (a)  of  subdivision  nine  of
    34  section  twenty-eight  hundred  seven-j  of this article, and paragraphs
    35  (a), (i) and (k) of subdivision  one  of  section  twenty-eight  hundred
    36  seven-l of this article for purposes of services and expenses related to
    37  the  health  maintenance  organization  direct pay market program estab-
    38  lished pursuant to sections forty-three hundred twenty-one-a and  forty-
    39  three hundred twenty-two-a of the insurance law from the tobacco control
    40  and  insurance initiatives pool established for the following periods in
    41  the following amounts:
    42    (i) up to thirty-five million dollars for the  period  January  first,
    43  two  thousand through December thirty-first, two thousand of which fifty
    44  percentum shall be allocated to the program  pursuant  to  section  four
    45  thousand  three  hundred  twenty-one-a  of  the  insurance law and fifty
    46  percentum to the program pursuant to section four thousand three hundred
    47  twenty-two-a of the insurance law;
    48    (ii) up to thirty-six million dollars for the  period  January  first,
    49  two  thousand  one  through  December  thirty-first, two thousand one of
    50  which fifty percentum shall be allocated  to  the  program  pursuant  to
    51  section  four  thousand  three hundred twenty-one-a of the insurance law
    52  and fifty percentum to the program pursuant  to  section  four  thousand
    53  three hundred twenty-two-a of the insurance law;
    54    (iii)  up to thirty-nine million dollars for the period January first,
    55  two thousand two through December  thirty-first,  two  thousand  two  of
    56  which  fifty  percentum  shall  be  allocated to the program pursuant to
        S. 992                             20                            A. 1922
 
     1  section four thousand three hundred twenty-one-a of  the  insurance  law
     2  and  fifty  percentum  to  the program pursuant to section four thousand
     3  three hundred twenty-two-a of the insurance law;
     4    (iv)  up  to  forty  million dollars for the period January first, two
     5  thousand three through December  thirty-first,  two  thousand  three  of
     6  which  fifty  percentum  shall  be  allocated to the program pursuant to
     7  section four thousand three hundred twenty-one-a of  the  insurance  law
     8  and  fifty  percentum  to  the program pursuant to section four thousand
     9  three hundred twenty-two-a of the insurance law;
    10    (v) up to forty million dollars for  the  period  January  first,  two
    11  thousand  four through December thirty-first, two thousand four of which
    12  fifty percentum shall be allocated to the program  pursuant  to  section
    13  four  thousand three hundred twenty-one-a of the insurance law and fifty
    14  percentum to the program pursuant to section four thousand three hundred
    15  twenty-two-a of the insurance law; [and]
    16    (vi) up to [twenty] forty  million  dollars  for  the  period  January
    17  first, two thousand five through [June thirtieth] December thirty-first,
    18  two  thousand  five  of  which fifty percentum shall be allocated to the
    19  program pursuant to section four thousand three hundred twenty-one-a  of
    20  the insurance law and fifty percentum to the program pursuant to section
    21  four thousand three hundred twenty-two-a of the insurance law;
    22    (vii)  up  to  forty million dollars for the period January first, two
    23  thousand six through December thirty-first, two thousand  six  of  which
    24  fifty  percentum  shall  be allocated to the program pursuant to section
    25  four thousand three hundred twenty-one-a of the insurance law and  fifty
    26  percentum  shall  be  allocated  to the program pursuant to section four
    27  thousand three hundred twenty-two-a of the insurance law; and
    28    (viii) up to twenty million dollars for the period January first,  two
    29  thousand seven through June thirtieth, two thousand seven of which fifty
    30  percentum  shall  be  allocated  to the program pursuant to section four
    31  thousand three hundred twenty-one-a  of  the  insurance  law  and  fifty
    32  percentum  shall  be  allocated  to the program pursuant to section four
    33  thousand three hundred twenty-two-a of the insurance law.
    34    (h) Funds shall be reserved and accumulated from year to year [by  the
    35  commissioner]  and  shall  be  available, including income from invested
    36  funds, contingent upon meeting all funding amounts established  pursuant
    37  to paragraphs (a), (b), (c), (d), (e), (f), (l), (m), (n), (p), (q), (r)
    38  and  (s)  of  this  subdivision,  paragraph  (a)  of subdivision nine of
    39  section twenty-eight hundred seven-j of  this  article,  and  paragraphs
    40  (a),  (i)  and  (k)  of  subdivision one of section twenty-eight hundred
    41  seven-l of this article for purposes of services and expenses related to
    42  the healthy New York individual program established pursuant to sections
    43  four thousand three hundred twenty-six and four thousand  three  hundred
    44  twenty-seven of the insurance law from the tobacco control and insurance
    45  initiatives  pool established for the following periods in the following
    46  amounts:
    47    (i) up to six million dollars for the period January first, two  thou-
    48  sand one through December thirty-first, two thousand one;
    49    (ii)  up  to twenty-nine million dollars for the period January first,
    50  two thousand two through December thirty-first, two thousand two;
    51    (iii) up to [twenty-nine] five million  [four]  one  hundred  thousand
    52  dollars  for the period January first, two thousand three through Decem-
    53  ber thirty-first, two thousand three;
    54    (iv) [up to twenty-four million six hundred thousand dollars  for  the
    55  period  January  first, two thousand four through December thirty-first,
    56  two thousand four; and
        S. 992                             21                            A. 1922
 
     1    (v)] up to  [twenty-two]  thirty-four  million  six  hundred  thousand
     2  dollars  for  the  period January first, two thousand five through [June
     3  thirtieth] December thirty-first, two thousand five;
     4    (v)  up  to  fifty-four million eight hundred thousand dollars for the
     5  period January first, two thousand six  through  December  thirty-first,
     6  two thousand six; and
     7    (vi)  up  to  forty-two  million  six hundred thousand dollars for the
     8  period January first, two thousand seven  through  June  thirtieth,  two
     9  thousand seven.
    10    (i)  Funds shall be reserved and accumulated from year to year [by the
    11  commissioner] and shall be available,  including  income  from  invested
    12  funds,  contingent upon meeting all funding amounts established pursuant
    13  to paragraphs (a), (b), (c), (d), (e), (f), (l), (m), (n), (p), (q), (r)
    14  and (s) of this  subdivision,  paragraph  (a)  of  subdivision  nine  of
    15  section  twenty-eight  hundred  seven-j  of this article, and paragraphs
    16  (a), (i) and (k) of subdivision  one  of  section  twenty-eight  hundred
    17  seven-l of this article for purposes of services and expenses related to
    18  the healthy New York group program established pursuant to sections four
    19  thousand  three hundred twenty-six and four thousand three hundred twen-
    20  ty-seven of the insurance law from the  tobacco  control  and  insurance
    21  initiatives  pool established for the following periods in the following
    22  amounts:
    23    (i) up to thirty-four million dollars for the  period  January  first,
    24  two thousand one through December thirty-first, two thousand one;
    25    (ii) up to seventy-seven million dollars for the period January first,
    26  two thousand two through December thirty-first, two thousand two;
    27    (iii)  up  to [sixty] ten million [four] five hundred thousand dollars
    28  for the period January first, two thousand three through December  thir-
    29  ty-first, two thousand three;
    30    (iv)  [up  to twenty-four million six hundred thousand dollars for the
    31  period January first, two thousand four through  December  thirty-first,
    32  two thousand four; and
    33    (v)]  up  to  [twenty-two]  thirty-four  million  six hundred thousand
    34  dollars for the period January first, two thousand  five  through  [June
    35  thirtieth] December thirty-first, two thousand five;
    36    (v)  up  to  fifty-four million eight hundred thousand dollars for the
    37  period January first, two thousand six  through  December  thirty-first,
    38  two thousand six; and
    39    (vi)  up  to  forty-two  million  six hundred thousand dollars for the
    40  period January first, two thousand seven  through  June  thirtieth,  two
    41  thousand seven.
    42    (i-1) Notwithstanding the provisions of paragraphs (h) and (i) of this
    43  subdivision,  the  commissioner  shall  reserve and accumulate up to two
    44  million five hundred thousand dollars annually for the [period]  periods
    45  January  first,  two  thousand  four  through December thirty-first, two
    46  thousand [four] six and one million two hundred fifty  thousand  dollars
    47  for  the  period  January  first, two thousand [five] seven through June
    48  thirtieth, two thousand [five] seven from funds otherwise available  for
    49  distribution under such paragraphs for the services and expenses related
    50  to  the  pilot  program for entertainment industry employees included in
    51  subsection (b) of section one thousand one  hundred  twenty-two  of  the
    52  insurance law, and an additional seven hundred thousand dollars annually
    53  for the [period] periods January first, two thousand four through Decem-
    54  ber  thirty-first,  two  thousand  [four]  six,  and an additional three
    55  hundred thousand dollars for the  period  January  first,  two  thousand
    56  [five]  seven  through  June  thirtieth,  two  thousand [five] seven for
        S. 992                             22                            A. 1922
 
     1  services and expenses related to the pilot program for displaced workers
     2  included in subsection (c) of section one thousand one  hundred  twenty-
     3  two of the insurance law.
     4    (j)  Funds shall be reserved and accumulated from year to year [by the
     5  commissioner] and shall be available,  including  income  from  invested
     6  funds,  contingent upon meeting all funding amounts established pursuant
     7  to paragraphs (a), (b), (c), (d), (e), (f), (l), (m), (n), (p), (q), (r)
     8  and (s) of this  subdivision,  paragraph  (a)  of  subdivision  nine  of
     9  section  twenty-eight  hundred  seven-j  of this article, and paragraphs
    10  (a), (i) and (k) of subdivision  one  of  section  twenty-eight  hundred
    11  seven-l of this article for purposes of services and expenses related to
    12  the  tobacco  use prevention and control program established pursuant to
    13  sections thirteen hundred ninety-nine-ii and  thirteen  hundred  ninety-
    14  nine-jj  of  this chapter, from the tobacco control and insurance initi-
    15  atives pool established for  the  following  periods  in  the  following
    16  amounts:
    17    (i)  up  to  thirty  million dollars for the period January first, two
    18  thousand through December thirty-first, two thousand;
    19    (ii) up to forty million dollars for the  period  January  first,  two
    20  thousand one through December thirty-first, two thousand one;
    21    (iii)  up  to  forty million dollars for the period January first, two
    22  thousand two through December thirty-first, two thousand two;
    23    (iv) up to thirty-six million nine hundred fifty thousand dollars  for
    24  the  period  January  first, two thousand three through December thirty-
    25  first, two thousand three;
    26    (v) up to thirty-six million nine hundred fifty thousand  dollars  for
    27  the  period  January  first,  two thousand four through December thirty-
    28  first, two thousand four; [and]
    29    (vi) up to [twenty] forty million  [two]  six  hundred  [seventy-five]
    30  thousand dollars for the period January first, two thousand five through
    31  [June thirtieth] December thirty-first, two thousand five;
    32    (vii)  up to forty million six hundred thousand dollars for the period
    33  January first, two thousand six through December thirty-first, two thou-
    34  sand six; and
    35    (viii) up to twenty million three hundred  thousand  dollars  for  the
    36  period  January  first,  two  thousand seven through June thirtieth, two
    37  thousand seven.
    38    (k) Funds shall be  deposited  by  the  commissioner,  within  amounts
    39  appropriated,  and  the  state  comptroller  is  hereby  authorized  and
    40  directed to receive for deposit to  the  credit  of  the  state  special
    41  revenue  fund - other, HCRA transfer fund, health care services account,
    42  or any successor fund or account, contingent upon  meeting  all  funding
    43  amounts established pursuant to paragraphs (a), (b), (c), (d), (e), (f),
    44  (l),  (m), (n), (p), (q), (r) and (s) of this subdivision, paragraph (a)
    45  of subdivision nine of section  twenty-eight  hundred  seven-j  of  this
    46  article,  and  paragraphs (a), (i) and (k) of subdivision one of section
    47  twenty-eight hundred seven-l of this article for  purposes  of  services
    48  and  expenses related to public health programs, including comprehensive
    49  care centers for  eating  disorders  pursuant  to  section  twenty-seven
    50  hundred  ninety-nine-l  of this chapter, provided however that, for such
    51  centers, funds in the amount of five  hundred  thousand  dollars  on  an
    52  annual  basis shall be transferred from the health care services account
    53  and deposited into the fund established by section ninety-five-e of  the
    54  state  finance  law,  from the tobacco control and insurance initiatives
    55  pool established for the following periods in the following amounts:
        S. 992                             23                            A. 1922
 
     1    (i) up to thirty-one million dollars for the period January first, two
     2  thousand through December thirty-first, two thousand;
     3    (ii) up to forty-one million dollars for the period January first, two
     4  thousand one through December thirty-first, two thousand one;
     5    (iii)  up  to eighty-one million dollars for the period January first,
     6  two thousand two through December thirty-first, two thousand two;
     7    (iv) one hundred twenty-two million five hundred thousand dollars  for
     8  the  period  January  first, two thousand three through December thirty-
     9  first, two thousand three;
    10    (v) one hundred  eight  million  five  hundred  seventy-five  thousand
    11  dollars, plus an additional five hundred thousand dollars, for the peri-
    12  od  January  first, two thousand four through December thirty-first, two
    13  thousand four; [and]
    14    (vi) [seventy-five] eighty-one million [four] eight hundred  [seventy-
    15  five]  thousand  dollars,  plus an additional [two] five hundred [fifty]
    16  thousand dollars, for  the  period  January  first,  two  thousand  five
    17  through [June thirtieth] December thirty-first, two thousand five;
    18    (vii)  one  hundred thirty-one million eight hundred thousand dollars,
    19  plus an additional five hundred thousand dollars, for the period January
    20  first, two thousand six through December thirty-first, two thousand six;
    21  and
    22    (viii) sixty-five million six hundred thousand dollars, plus an  addi-
    23  tional two hundred fifty thousand dollars, for the period January first,
    24  two thousand seven through June thirtieth, two thousand seven.
    25    (l)  Funds  shall  be  deposited  by  the commissioner, within amounts
    26  appropriated,  and  the  state  comptroller  is  hereby  authorized  and
    27  directed  to  receive  for  deposit  to  the credit of the state special
    28  revenue funds - other, HCRA transfer fund, medical  assistance  account,
    29  or  any  successor  fund  or  account, for purposes of funding the state
    30  share of the personal care and certified home health agency rate or  fee
    31  increases  established  pursuant  to  subdivision three of section three
    32  hundred sixty-seven-o of  the  social  services  law  from  the  tobacco
    33  control  and  insurance  initiatives  pool established for the following
    34  periods in the following amounts:
    35    (i) twenty-three million two hundred thousand dollars for  the  period
    36  January first, two thousand through December thirty-first, two thousand;
    37    (ii)  twenty-three million two hundred thousand dollars for the period
    38  January first, two thousand one through December thirty-first, two thou-
    39  sand one;
    40    (iii) twenty-three million two hundred thousand dollars for the period
    41  January first, two thousand two through December thirty-first, two thou-
    42  sand two;
    43    (iv) up to sixty-five million two hundred  thousand  dollars  for  the
    44  period  January first, two thousand three through December thirty-first,
    45  two thousand three;
    46    (v) up to sixty-five million two  hundred  thousand  dollars  for  the
    47  period  January  first, two thousand four through December thirty-first,
    48  two thousand four; [and]
    49    (vi) up to [thirty-two] sixty-five million [six] two hundred  thousand
    50  dollars  for  the  period January first, two thousand five through [June
    51  thirtieth] December thirty-first, two thousand five;
    52    (vii) up to sixty-five million two hundred thousand  dollars  for  the
    53  period  January  first,  two thousand six through December thirty-first,
    54  two thousand six; and
        S. 992                             24                            A. 1922
 
     1    (viii) up to thirty-two million six hundred thousand dollars  for  the
     2  period  January  first,  two  thousand seven through June thirtieth, two
     3  thousand seven.
     4    (m)  Funds  shall  be  deposited  by  the commissioner, within amounts
     5  appropriated,  and  the  state  comptroller  is  hereby  authorized  and
     6  directed  to  receive  for  deposit  to  the credit of the state special
     7  revenue funds - other, HCRA transfer fund, medical  assistance  account,
     8  or  any  successor  fund  or  account, for purposes of funding the state
     9  share of services and expenses related to home  care  workers  insurance
    10  pilot  demonstration programs established pursuant to subdivision two of
    11  section three hundred sixty-seven-o of the social services law from  the
    12  tobacco  control  and  insurance  initiatives  pool  established for the
    13  following periods in the following amounts:
    14    (i) three million eight hundred thousand dollars for the period  Janu-
    15  ary first, two thousand through December thirty-first, two thousand;
    16    (ii) three million eight hundred thousand dollars for the period Janu-
    17  ary  first, two thousand one through December thirty-first, two thousand
    18  one;
    19    (iii) three million eight hundred  thousand  dollars  for  the  period
    20  January first, two thousand two through December thirty-first, two thou-
    21  sand two;
    22    (iv) up to three million eight hundred thousand dollars for the period
    23  January  first,  two  thousand  three through December thirty-first, two
    24  thousand three;
    25    (v) up to three million eight hundred thousand dollars for the  period
    26  January  first,  two  thousand  four  through December thirty-first, two
    27  thousand four; [and]
    28    (vi) up to [two] three million eight hundred thousand dollars for  the
    29  period  January first, two thousand five through [June thirtieth] Decem-
    30  ber thirty-first, two thousand five;
    31    (vii) up to three million eight hundred thousand dollars for the peri-
    32  od January first, two thousand six through  December  thirty-first,  two
    33  thousand six; and
    34    (viii)  up  to  two  million dollars for the period January first, two
    35  thousand seven through June thirtieth, two thousand seven.
    36    (n) Funds shall be transferred by the commissioner and shall be depos-
    37  ited to the credit of the special revenue funds -  other,  miscellaneous
    38  special  revenue  fund  - 339, elderly pharmaceutical insurance coverage
    39  program premium account authorized pursuant to the provisions  of  title
    40  three of article two of the elder law, or any successor fund or account,
    41  for  funding  state  expenses  relating  to the program from the tobacco
    42  control and insurance initiatives pool  established  for  the  following
    43  periods in the following amounts:
    44    (i)  one  hundred  seven million dollars for the period January first,
    45  two thousand through December thirty-first, two thousand;
    46    (ii) one hundred sixty-four million dollars  for  the  period  January
    47  first, two thousand one through December thirty-first, two thousand one;
    48    (iii)  three hundred twenty-two million seven hundred thousand dollars
    49  for the period January first, two thousand two through December  thirty-
    50  first, two thousand two;
    51    (iv)  four hundred thirty-three million three hundred thousand dollars
    52  for the period January first, two thousand three through December  thir-
    53  ty-first, two thousand three;
    54    (v)  five  hundred four million one hundred fifty thousand dollars for
    55  the period January first, two thousand  four  through  December  thirty-
    56  first, two thousand four; [and]
        S. 992                             25                            A. 1922
 
     1    (vi)  [two]  five hundred [ninety-eight] sixty-six million [one] eight
     2  hundred [fifty] thousand dollars for the period January first, two thou-
     3  sand five through [June thirtieth] December thirty-first,  two  thousand
     4  five;
     5    (vii) six hundred twenty million dollars for the period January first,
     6  two thousand six through December thirty-first, two thousand six; and
     7    (viii) three hundred thirty-six million dollars for the period January
     8  first, two thousand seven through June thirtieth, two thousand seven.
     9    (o)  Funds  shall  be  reserved  and accumulated [by the commissioner]
    10  contingent upon meeting all  funding  amounts  established  pursuant  to
    11  paragraphs  (a),  (b),  (c), (d), (e), (f), (l), (m), (n), (p), (q), (r)
    12  and (s) of this  subdivision,  paragraph  (a)  of  subdivision  nine  of
    13  section  twenty-eight  hundred  seven-j  of this article, and paragraphs
    14  (a), (i) and (k) of subdivision  one  of  section  twenty-eight  hundred
    15  seven-l  of  this  article  and shall be transferred to the Roswell Park
    16  Cancer Institute Corporation, from the  tobacco  control  and  insurance
    17  initiatives  pool established for the following periods in the following
    18  amounts:
    19    (i) up to ninety million dollars for the  period  January  first,  two
    20  thousand through December thirty-first, two thousand;
    21    (ii)  up  to  sixty  million dollars for the period January first, two
    22  thousand one through December thirty-first, two thousand one;
    23    (iii) up to eighty-five million dollars for the period January  first,
    24  two thousand two through December thirty-first, two thousand two;
    25    (iv)  eighty-five  million  two hundred fifty thousand dollars for the
    26  period January first, two thousand three through December  thirty-first,
    27  two thousand three;
    28    (v)  seventy-eight  million  dollars for the period January first, two
    29  thousand four through December thirty-first, two thousand four; [and]
    30    (vi) [thirty-nine] seventy-eight million dollars for the period  Janu-
    31  ary  first,  two thousand five through [June thirtieth] December thirty-
    32  first, two thousand five;
    33    (vii) seventy-eight million dollars for the period January first,  two
    34  thousand six through December thirty-first, two thousand six; and
    35    (viii)  thirty-nine  million dollars for the period January first, two
    36  thousand seven through June thirtieth, two thousand seven.
    37    (p) Funds shall be  deposited  by  the  commissioner,  within  amounts
    38  appropriated,  and  the  state  comptroller  is  hereby  authorized  and
    39  directed to receive for deposit to  the  credit  of  the  state  special
    40  revenue  funds - other, indigent care fund - 068, indigent care account,
    41  or any successor fund or account, contingent upon  meeting  all  funding
    42  amounts established pursuant to paragraphs (a), (b), (c), (d), (e), (f),
    43  (l),  (m),  (n),  (q)  and  (r) of this subdivision and paragraph (a) of
    44  subdivision one of section twenty-eight hundred seven-l of this  article
    45  for purposes of providing a medicaid disproportionate share payment from
    46  the  high  need  indigent  care  adjustment pool established pursuant to
    47  section twenty-eight hundred seven-w of this article, from  the  tobacco
    48  control  and  insurance  initiatives  pool established for the following
    49  periods in the following amounts:
    50    (i) eighty-two million dollars annually for the periods January first,
    51  two thousand through December thirty-first, two thousand two;
    52    (ii) up to eighty-two million dollars for the  period  January  first,
    53  two thousand three through December thirty-first, two thousand three;
    54    (iii)  up  to eighty-two million dollars for the period January first,
    55  two thousand four through  December  thirty-first,  two  thousand  four;
    56  [and]
        S. 992                             26                            A. 1922
 
     1    (iv) up to [forty-one] eighty-two million dollars for the period Janu-
     2  ary  first,  two thousand five through [June thirtieth] December thirty-
     3  first, two thousand five;
     4    (v) up to eighty-two million dollars for the period January first, two
     5  thousand six through December thirty-first, two thousand six; and
     6    (vi) up to forty-one million dollars for the period January first, two
     7  thousand seven through June thirtieth, two thousand seven.
     8    (q)  Funds shall be reserved and accumulated from year to year [by the
     9  commissioner] and shall be available,  including  income  from  invested
    10  funds,  for purposes of providing distributions to eligible school based
    11  health centers established pursuant to chapter one of the laws of  nine-
    12  teen  hundred  ninety-nine which enacted the New York Health Care Reform
    13  Act of 2000, from the tobacco control  and  insurance  initiatives  pool
    14  established for the following periods in the following amounts:
    15    (i)  seven  million dollars annually for the period January first, two
    16  thousand through December thirty-first, two thousand two;
    17    (ii) up to seven million dollars for the  period  January  first,  two
    18  thousand three through December thirty-first, two thousand three;
    19    (iii)  up  to  seven million dollars for the period January first, two
    20  thousand four through December thirty-first, two thousand four; [and]
    21    (iv) up to [three] seven million [five hundred thousand]  dollars  for
    22  the  period  January  first,  two thousand five through [June thirtieth]
    23  December thirty-first, two thousand five;
    24    (v) up to seven million dollars for  the  period  January  first,  two
    25  thousand six through December thirty-first, two thousand six; and
    26    (vi)  up to three million five hundred thousand dollars for the period
    27  January first, two thousand seven through June thirtieth,  two  thousand
    28  seven.
    29    (r) Funds shall be deposited by the commissioner within amounts appro-
    30  priated,  and the state comptroller is hereby authorized and directed to
    31  receive for deposit to the credit of the state special revenue  funds  -
    32  other,  HCRA transfer fund, medical assistance account, or any successor
    33  fund or account, for purposes of providing distributions for  supplemen-
    34  tary   medical  insurance  for  Medicare  part  B  premiums,  physicians
    35  services, outpatient services, medical  equipment,  supplies  and  other
    36  health services, from the tobacco control and insurance initiatives pool
    37  established for the following periods in the following amounts:
    38    (i)  forty-three  million  dollars  for  the period January first, two
    39  thousand through December thirty-first, two thousand;
    40    (ii) sixty-one million dollars for the period January first, two thou-
    41  sand one through December thirty-first, two thousand one;
    42    (iii) sixty-five million dollars for the  period  January  first,  two
    43  thousand two through December thirty-first, two thousand two;
    44    (iv)  sixty-seven million five hundred thousand dollars for the period
    45  January first, two thousand three  through  December  thirty-first,  two
    46  thousand three;
    47    (v)  sixty-eight  million  dollars  for  the period January first, two
    48  thousand four through December thirty-first, two thousand four; [and]
    49    (vi) [thirty-four] sixty-eight million dollars for the period  January
    50  first, two thousand five through [June thirtieth] December thirty-first,
    51  two thousand five;
    52    (vii)  sixty-eight  million  dollars for the period January first, two
    53  thousand six through December thirty-first, two thousand six; and
    54    (viii) thirty-four million dollars for the period January  first,  two
    55  thousand seven through June thirtieth, two thousand seven.
        S. 992                             27                            A. 1922
 
     1    (s) Funds shall be deposited by the commissioner within amounts appro-
     2  priated,  and the state comptroller is hereby authorized and directed to
     3  receive for deposit to the credit of the state special revenue  funds  -
     4  other,  HCRA transfer fund, medical assistance account, or any successor
     5  fund or account, contingent upon meeting all funding amounts established
     6  pursuant to paragraphs (a), (b), (c), (d), (e), (f), (l), (m), (n), (q),
     7  and  (r)  of  this  subdivision, and paragraph (a) of subdivision one of
     8  section twenty-eight hundred seven-l of this article,  for  purposes  of
     9  providing  distributions  pursuant  to paragraphs (s-5) [and], (s-6) and
    10  (s-7) of subdivision eleven of section twenty-eight hundred  seven-c  of
    11  this  article  from  the  tobacco control and insurance initiatives pool
    12  established for the following periods in the following amounts:
    13    (i) eighteen million dollars for the period January first,  two  thou-
    14  sand through December thirty-first, two thousand;
    15    (ii)  twenty-four  million  dollars  annually  for the periods January
    16  first, two thousand one through December thirty-first, two thousand two;
    17    (iii) up to twenty-four million dollars for the period January  first,
    18  two thousand three through December thirty-first, two thousand three;
    19    (iv)  up  to twenty-four million dollars for the period January first,
    20  two thousand four through  December  thirty-first,  two  thousand  four;
    21  [and]
    22    (v)  up  to  [six]  twenty-four million dollars for the period January
    23  first, two thousand five  through  [March]  December  thirty-first,  two
    24  thousand five;
    25    (vi)  up  to twenty-four million dollars for the period January first,
    26  two thousand six through December thirty-first, two thousand six; and
    27    (vii) up to six million dollars for  the  period  January  first,  two
    28  thousand seven through March thirty-first, two thousand seven.
    29    (t)  Funds  shall be reserved and accumulated from year to year by the
    30  commissioner and shall be made available, including income from invested
    31  funds:
    32    (i) For the purpose of making grants to a  state  owned  and  operated
    33  medical  school  which does not have a state owned and operated hospital
    34  on site and available for teaching  purposes.  Notwithstanding  sections
    35  one hundred twelve and one hundred sixty-three of the state finance law,
    36  such  grants  shall be made in the amount of up to five hundred thousand
    37  dollars for the period January  first,  two  thousand  through  December
    38  thirty-first, two thousand;
    39    (ii)  For  the purpose of making grants to medical schools pursuant to
    40  section eighty-six-a of chapter one of  the  laws  of  nineteen  hundred
    41  ninety-nine  in  the  sum  of  up to four million dollars for the period
    42  January first, two thousand through December thirty-first, two thousand;
    43  and
    44    (iii) The funds disbursed pursuant to subparagraphs (i)  and  (ii)  of
    45  this  paragraph  from the tobacco control and insurance initiatives pool
    46  are contingent upon meeting all funding amounts established pursuant  to
    47  paragraphs  (a),  (b),  (c), (d), (e), (f), (l), (m), (n), (p), (q), (r)
    48  and (s) of this  subdivision,  paragraph  (a)  of  subdivision  nine  of
    49  section  twenty-eight  hundred  seven-j  of this article, and paragraphs
    50  (a), (i) and (k) of subdivision  one  of  section  twenty-eight  hundred
    51  seven-l of this article.
    52    (u)  Funds  shall  be  deposited  by  the commissioner, within amounts
    53  appropriated,  and  the  state  comptroller  is  hereby  authorized  and
    54  directed  to  receive  for  deposit  to  the credit of the state special
    55  revenue funds - other, HCRA transfer fund, medical  assistance  account,
    56  or  any  successor  fund  or  account, for purposes of funding the state
        S. 992                             28                            A. 1922
 
     1  share of services and expenses  related  to  the  nursing  home  quality
     2  improvement  demonstration program established pursuant to section twen-
     3  ty-eight hundred eight-d of this article from the  tobacco  control  and
     4  insurance  initiatives pool established for the following periods in the
     5  following amounts:
     6    (i) up to twenty-five million dollars for the period  beginning  April
     7  first,  two  thousand two and ending December thirty-first, two thousand
     8  two, and on an annualized  basis,  for  each  annual  period  thereafter
     9  beginning  January first, two thousand three and ending December thirty-
    10  first, two thousand four[, and up to twelve million five  hundred  thou-
    11  sand  dollars  for  the  period January first, two thousand five through
    12  June thirtieth, two thousand five.];
    13    (ii) up to eighteen million seven hundred fifty thousand  dollars  for
    14  the  period  January  first,  two thousand five through December thirty-
    15  first, two thousand five;
    16    (iii) up to twelve million five hundred thousand dollars for the peri-
    17  od January first, two thousand six through  December  thirty-first,  two
    18  thousand six; and
    19    (iv)  up  to  six  million  two hundred fifty thousand dollars for the
    20  period January first, two thousand seven  through  June  thirtieth,  two
    21  thousand seven.
    22    (v) Funds shall be transferred by the commissioner and shall be depos-
    23  ited  to the credit of the hospital excess liability pool created pursu-
    24  ant to section eighteen of chapter two hundred sixty-six of the laws  of
    25  nineteen  hundred  eighty-six, or any successor account, for purposes of
    26  expenses related to the purchase of excess medical malpractice insurance
    27  and the cost of administrating the pool, including costs associated with
    28  the risk management program established pursuant to section forty-two of
    29  part A of chapter one of the laws of two thousand two required by  para-
    30  graph  (a) of subdivision one of section eighteen of chapter two hundred
    31  sixty-six of the laws of nineteen hundred eighty-six as may  be  amended
    32  from  time  to  time, from the tobacco control and insurance initiatives
    33  pool established for the following periods in the following amounts:
    34    (i) up to fifty million dollars or so much as is needed for the period
    35  January first, two thousand two through December thirty-first, two thou-
    36  sand two;
    37    (ii) up to seventy-six million seven hundred thousand dollars for  the
    38  period  January first, two thousand three through December thirty-first,
    39  two thousand three;
    40    (iii) up to sixty-five million dollars for the period  January  first,
    41  two  thousand  four  through  December  thirty-first, two thousand four;
    42  [and]
    43    (iv) up to [thirty-two] sixty-five  million  [five  hundred  thousand]
    44  dollars  for  the  period January first, two thousand five through [June
    45  thirtieth] December thirty-first, two thousand five;
    46    (v) up to sixty-five million dollars for the period January first, two
    47  thousand six through December thirty-first, two thousand six; and
    48    (vi) up to thirty-two million five hundred thousand  dollars  for  the
    49  period  January  first,  two  thousand seven through June thirtieth, two
    50  thousand seven.
    51    (w) Funds shall be  deposited  by  the  commissioner,  within  amounts
    52  appropriated,  and  the  state  comptroller  is  hereby  authorized  and
    53  directed to receive for deposit to  the  credit  of  the  state  special
    54  revenue  funds  - other, HCRA transfer fund, medical assistance account,
    55  or any successor fund or account, for  purposes  of  funding  the  state
    56  share  of  the treatment of breast and cervical cancer pursuant to para-
        S. 992                             29                            A. 1922
 
     1  graph (v) of subdivision four of section three hundred sixty-six of  the
     2  social  services law, from the tobacco control and insurance initiatives
     3  pool established for the following periods in the following amounts:
     4    (i)  up  to four hundred fifty thousand dollars for the period January
     5  first, two thousand two through December thirty-first, two thousand two;
     6    (ii) up to two million one hundred thousand  dollars  for  the  period
     7  January  first,  two  thousand  three through December thirty-first, two
     8  thousand three;
     9    (iii) up to two million one hundred thousand dollars  for  the  period
    10  January  first,  two  thousand  four  through December thirty-first, two
    11  thousand four; [and]
    12    (iv) up to [one] two million one  hundred  thousand  dollars  for  the
    13  period  January first, two thousand five through [June thirtieth] Decem-
    14  ber thirty-first, two thousand five;
    15    (v) up to two million one hundred  thousand  dollars  for  the  period
    16  January first, two thousand six through December thirty-first, two thou-
    17  sand six; and
    18    (vi)  up  to  one  million one hundred thousand dollars for the period
    19  January first, two thousand seven through June thirtieth,  two  thousand
    20  seven.
    21    (x)  Funds  shall  be  deposited  by  the commissioner, within amounts
    22  appropriated,  and  the  state  comptroller  is  hereby  authorized  and
    23  directed  to  receive  for  deposit  to  the credit of the state special
    24  revenue funds - other, HCRA transfer fund, medical  assistance  account,
    25  or  any  successor  fund  or  account, for purposes of funding the state
    26  share of the non-public general hospital rates increases for recruitment
    27  and retention of health care workers pursuant to paragraph (a) of subdi-
    28  vision thirty and subdivision thirty-one of section twenty-eight hundred
    29  seven-c of this article from the tobacco control  and  insurance  initi-
    30  atives  pool  established  for  the  following  periods in the following
    31  amounts:
    32    (i) twenty-seven million one hundred thousand dollars on an annualized
    33  basis for the period January first, two thousand  two  through  December
    34  thirty-first, two thousand two;
    35    (ii)  fifty  million  eight  hundred thousand dollars on an annualized
    36  basis for the period January first, two thousand three through  December
    37  thirty-first, two thousand three;
    38    (iii)  sixty-nine million three hundred thousand dollars on an annual-
    39  ized basis for the period  January  first,  two  thousand  four  through
    40  December thirty-first, two thousand four; [and]
    41    (iv)  [thirty-four]  sixty-nine  million  [six]  three hundred [fifty]
    42  thousand dollars for the period January first, two thousand five through
    43  [June thirtieth] December thirty-first, two thousand five;
    44    (v) sixty-nine million three hundred thousand dollars for  the  period
    45  January first, two thousand six through December thirty-first, two thou-
    46  sand six; and
    47    (vi)  thirty-four  million  six hundred fifty thousand dollars for the
    48  period January first, two thousand seven  through  June  thirtieth,  two
    49  thousand seven.
    50    (y)  Funds shall be reserved and accumulated from year to year [by the
    51  commissioner] and shall be available,  including  income  from  invested
    52  funds,  for  purposes of grants to public general hospitals for recruit-
    53  ment and retention of health care workers pursuant to paragraph  (b)  of
    54  subdivision thirty of section twenty-eight hundred seven-c of this arti-
    55  cle  from the tobacco control and insurance initiatives pool established
    56  for the following periods in the following amounts:
        S. 992                             30                            A. 1922
 
     1    (i) eighteen million five hundred thousand dollars  on  an  annualized
     2  basis  for  the  period January first, two thousand two through December
     3  thirty-first, two thousand two;
     4    (ii)  thirty-seven million four hundred thousand dollars on an annual-
     5  ized basis for the period January  first,  two  thousand  three  through
     6  December thirty-first, two thousand three;
     7    (iii)  fifty-two million two hundred thousand dollars on an annualized
     8  basis for the period January first, two thousand four  through  December
     9  thirty-first, two thousand four;
    10    (iv) [twenty-six] fifty-two million [one] two hundred thousand dollars
    11  for the period January first, two thousand five through [June thirtieth]
    12  December thirty-first, two thousand five; [and]
    13    (v)  fifty-two  million  two  hundred  thousand dollars for the period
    14  January first, two thousand six through December thirty-first, two thou-
    15  sand six; and
    16    (vi) twenty-six million one hundred thousand dollars  for  the  period
    17  January  first,  two thousand seven through June thirtieth, two thousand
    18  seven;
    19    [(v)] (vii) provided, however, amounts pursuant to this paragraph  may
    20  be reduced by the commissioner in an amount to be approved by the direc-
    21  tor  of  the budget to reflect amounts received from the federal govern-
    22  ment under the state's 1115 waiver which are directed  under  its  terms
    23  and  conditions  to  the  health  workforce  recruitment  and  retention
    24  program.
    25    (z) Funds shall be  deposited  by  the  commissioner,  within  amounts
    26  appropriated,  and  the  state  comptroller  is  hereby  authorized  and
    27  directed to receive for deposit to  the  credit  of  the  state  special
    28  revenue  funds  - other, HCRA transfer fund, medical assistance account,
    29  or any successor fund or account, for  purposes  of  funding  the  state
    30  share  of the non-public residential health care facility rate increases
    31  for recruitment and retention of health care workers pursuant  to  para-
    32  graph  (a) of subdivision eighteen of section twenty-eight hundred eight
    33  of this article from the tobacco control and insurance initiatives  pool
    34  established for the following periods in the following amounts:
    35    (i)  twenty-one million five hundred thousand dollars on an annualized
    36  basis for the period January first, two thousand  two  through  December
    37  thirty-first, two thousand two;
    38    (ii) thirty-three million three hundred thousand dollars on an annual-
    39  ized  basis  for  the  period  January first, two thousand three through
    40  December thirty-first, two thousand three;
    41    (iii) forty-six million three hundred thousand dollars on  an  annual-
    42  ized  basis  for  the  period  January  first, two thousand four through
    43  December thirty-first, two thousand four; [and]
    44    (iv) [twenty-three] forty-six million  [two]  three  hundred  thousand
    45  dollars  for  the  period January first, two thousand five through [June
    46  thirtieth] December thirty-first, two thousand five;
    47    (v) forty-six million three hundred thousand dollars  for  the  period
    48  January first, two thousand six through December thirty-first, two thou-
    49  sand six; and
    50    (vi)  twenty-three million two hundred thousand dollars for the period
    51  January first, two thousand seven through June thirtieth,  two  thousand
    52  seven.
    53    (aa) Funds shall be reserved and accumulated from year to year [by the
    54  commissioner]  and  shall  be  available, including income from invested
    55  funds, for purposes of grants to public residential health care  facili-
    56  ties  for  recruitment  and retention of health care workers pursuant to
        S. 992                             31                            A. 1922
 
     1  paragraph (b) of subdivision eighteen of  section  twenty-eight  hundred
     2  eight of this article from the tobacco control and insurance initiatives
     3  pool established for the following periods in the following amounts:
     4    (i) seven million five hundred thousand dollars on an annualized basis
     5  for  the period January first, two thousand two through December thirty-
     6  first, two thousand two;
     7    (ii) eleven million seven hundred thousand dollars  on  an  annualized
     8  basis  for the period January first, two thousand three through December
     9  thirty-first, two thousand three;
    10    (iii) sixteen million two hundred thousand dollars  on  an  annualized
    11  basis  for  the period January first, two thousand four through December
    12  thirty-first, two thousand four; [and]
    13    (iv) [eight] sixteen million [one] two hundred  thousand  dollars  for
    14  the  period  January  first,  two thousand five through [June thirtieth]
    15  December thirty-first, two thousand five;
    16    (v) sixteen million two hundred thousand dollars for the period  Janu-
    17  ary  first, two thousand six through December thirty-first, two thousand
    18  six; and
    19    (vi) eight million one hundred thousand dollars for the period January
    20  first, two thousand seven through June thirtieth, two thousand seven.
    21    (bb)(i) Funds shall be deposited by the commissioner,  within  amounts
    22  appropriated,  and  subject  to  the  availability  of federal financial
    23  participation, and  the  state  comptroller  is  hereby  authorized  and
    24  directed  to  receive  for  deposit  to  the credit of the state special
    25  revenue funds - other, HCRA transfer fund, medical  assistance  account,
    26  or  any  successor  fund  or  account, for the purpose of supporting the
    27  state share of adjustments to Medicaid rates  of  payment  for  personal
    28  care  services  provided pursuant to paragraph (e) of subdivision two of
    29  section three hundred sixty-five-a of the social services law, for local
    30  social service districts which include a city with a population of  over
    31  one  million  persons  and  computed  and distributed in accordance with
    32  memorandums of understanding to be entered into between the state of New
    33  York and such local social service districts for the purpose of support-
    34  ing the recruitment and retention of personal care  service  workers  or
    35  any  worker  with  direct  patient care responsibility, from the tobacco
    36  control and insurance initiatives pool  established  for  the  following
    37  periods and the following amounts:
    38    (A) forty-four million dollars, on an annualized basis, for the period
    39  April  first,  two thousand two through December thirty-first, two thou-
    40  sand two;
    41    (B) seventy-four million dollars, on  an  annualized  basis,  for  the
    42  period  January first, two thousand three through December thirty-first,
    43  two thousand three;
    44    (C) one hundred four million dollars, on an annualized basis, for  the
    45  period  January  first, two thousand four through December thirty-first,
    46  two thousand four; [and]
    47    (D) one hundred thirty-six million dollars, on  an  annualized  basis,
    48  for  the  period January first, two thousand five through December thir-
    49  ty-first, two thousand five;
    50    (E) one hundred thirty-six million dollars, on  an  annualized  basis,
    51  for  the period January first, two thousand six through December thirty-
    52  first, two thousand six; and
    53    (F) sixty-eight million dollars for  the  period  January  first,  two
    54  thousand seven through June thirtieth, two thousand seven.
        S. 992                             32                            A. 1922
 
     1    (ii)  Adjustments  to  Medicaid  rates made pursuant to this paragraph
     2  shall not, in aggregate, exceed the following amounts for the  following
     3  periods:
     4    (A)  for  the  period  April  first, two thousand two through December
     5  thirty-first, two thousand two, one hundred ten million dollars;
     6    (B) for the period January first, two thousand three through  December
     7  thirty-first,  two  thousand  three,  one  hundred  eighty-five  million
     8  dollars;
     9    (C) for the period January first, two thousand four  through  December
    10  thirty-first,  two  thousand  four,  two  hundred sixty million dollars;
    11  [and]
    12    (D) for the period January first, two thousand five  through  December
    13  thirty-first, two thousand five, three hundred forty million dollars;
    14    (E)  for  the  period January first, two thousand six through December
    15  thirty-first, two thousand six, three hundred forty million dollars; and
    16    (F) for the period January first,  two  thousand  seven  through  June
    17  thirtieth, two thousand seven, one hundred seventy million dollars.
    18    (iii)  Personal care service providers which have their rates adjusted
    19  pursuant to this paragraph shall use  such  funds  for  the  purpose  of
    20  recruitment  and  retention  of  non-supervisory  personal care services
    21  workers or any worker with direct patient care responsibility  only  and
    22  are  prohibited  from  using such funds for any other purpose. Each such
    23  personal care services provider shall submit, at a time and in a  manner
    24  to  be determined by the commissioner, a written certification attesting
    25  that such funds will be used solely for the purpose of  recruitment  and
    26  retention of non-supervisory personal care services workers or any work-
    27  er  with direct patient care responsibility. The commissioner is author-
    28  ized to audit each such provider to ensure compliance with  the  written
    29  certification  required  by  this subdivision and shall recoup any funds
    30  determined to have been used for purposes  other  than  recruitment  and
    31  retention of non-supervisory personal care services workers or any work-
    32  er  with direct patient care responsibility. Such recoupment shall be in
    33  addition to any other penalties provided by law.
    34    (cc) Funds shall be deposited  by  the  commissioner,  within  amounts
    35  appropriated,  and  the  state  comptroller  is  hereby  authorized  and
    36  directed to receive for deposit to  the  credit  of  the  state  special
    37  revenue  funds  - other, HCRA transfer fund, medical assistance account,
    38  or any successor fund or account, for  the  purpose  of  supporting  the
    39  state  share  of  adjustments  to Medicaid rates of payment for personal
    40  care services provided pursuant to paragraph (e) of subdivision  two  of
    41  section three hundred sixty-five-a of the social services law, for local
    42  social  service  districts  which  shall not include a city with a popu-
    43  lation of over one million persons for the  purpose  of  supporting  the
    44  personal  care  services  worker  recruitment  and  retention program as
    45  established pursuant to  section  three  hundred  sixty-seven-q  of  the
    46  social  services law, from the tobacco control and insurance initiatives
    47  pool established for the following periods and the following amounts:
    48    (i) two million eight hundred thousand dollars for  the  period  April
    49  first, two thousand two through December thirty-first, two thousand two;
    50    (ii)  five  million  six  hundred  thousand  dollars, on an annualized
    51  basis, for the period January first, two thousand three through December
    52  thirty-first, two thousand three;
    53    (iii) eight million four hundred thousand dollars,  on  an  annualized
    54  basis,  for the period January first, two thousand four through December
    55  thirty-first, two thousand four; [and]
        S. 992                             33                            A. 1922
 
     1    (iv) ten million eight hundred  thousand  dollars,  on  an  annualized
     2  basis,  for the period January first, two thousand five through December
     3  thirty-first, two thousand five;
     4    (v)  ten  million  eight  hundred  thousand  dollars, on an annualized
     5  basis, for the period January first, two thousand six  through  December
     6  thirty-first, two thousand six; and
     7    (vi) five million four hundred thousand dollars for the period January
     8  first, two thousand seven through June thirtieth, two thousand seven.
     9    (dd)  Funds  shall  be  deposited  by the commissioner, within amounts
    10  appropriated,  and  the  state  comptroller  is  hereby  authorized  and
    11  directed  to  receive  for  deposit  to  the credit of the state special
    12  revenue fund - other, HCRA transfer fund, medical assistance account, or
    13  any successor fund or account, for purposes of funding the  state  share
    14  of Medicaid expenditures for physician services from the tobacco control
    15  and  insurance initiatives pool established for the following periods in
    16  the following amounts:
    17    (i) up to fifty-two million dollars for the period January first,  two
    18  thousand two through December thirty-first, two thousand two;
    19    (ii)  eighty-one  million  two hundred thousand dollars for the period
    20  January first, two thousand three  through  December  thirty-first,  two
    21  thousand three;
    22    (iii)  eighty-five million two hundred thousand dollars for the period
    23  January first, two thousand  four  through  December  thirty-first,  two
    24  thousand four; [and]
    25    (iv)  [forty-two]  eighty-five  million  [six]  two  hundred  thousand
    26  dollars for the period January first, two thousand  five  through  [June
    27  thirtieth] December thirty-first, two thousand five;
    28    (v)  eighty-five  million  two hundred thousand dollars for the period
    29  January first, two thousand six through December thirty-first, two thou-
    30  sand six; and
    31    (vi) forty-two million six hundred thousand  dollars  for  the  period
    32  January  first,  two thousand seven through June thirtieth, two thousand
    33  seven.
    34    (ee) Funds shall be deposited  by  the  commissioner,  within  amounts
    35  appropriated,  and  the  state  comptroller  is  hereby  authorized  and
    36  directed to receive for deposit to  the  credit  of  the  state  special
    37  revenue fund - other, HCRA transfer fund, medical assistance account, or
    38  any  successor  fund or account, for purposes of funding the state share
    39  of the free-standing diagnostic and treatment center rate increases  for
    40  recruitment and retention of health care workers pursuant to subdivision
    41  seventeen of section twenty-eight hundred seven of this chapter from the
    42  tobacco  control  and  insurance  initiatives  pool  established for the
    43  following periods in the following amounts:
    44    (i) three million two hundred fifty thousand dollars  for  the  period
    45  April  first,  two thousand two through December thirty-first, two thou-
    46  sand two;
    47    (ii) three million two hundred fifty thousand dollars on an annualized
    48  basis for the period January first, two thousand three through  December
    49  thirty-first, two thousand three;
    50    (iii)  three  million two hundred fifty thousand dollars on an annual-
    51  ized basis for the period  January  first,  two  thousand  four  through
    52  December thirty-first, two thousand four; [and]
    53    (iv)  [one]  three million [six] two hundred [twenty-five] fifty thou-
    54  sand dollars for the period January first,  two  thousand  five  through
    55  [June thirtieth] December thirty-first, two thousand five;
        S. 992                             34                            A. 1922
 
     1    (v)  three  million  two hundred fifty thousand dollars for the period
     2  January first, two thousand six through December thirty-first, two thou-
     3  sand six; and
     4    (vi)  one  million  six  hundred  twenty-five thousand dollars for the
     5  period January first, two thousand seven  through  June  thirtieth,  two
     6  thousand seven.
     7    (ff)  Funds  shall  be  deposited  by the commissioner, within amounts
     8  appropriated,  and  the  state  comptroller  is  hereby  authorized  and
     9  directed  to  receive  for  deposit  to  the credit of the state special
    10  revenue fund - other, HCRA transfer fund, medical assistance account, or
    11  any successor fund or account, for purposes of funding the  state  share
    12  of  Medicaid expenditures for disabled persons as authorized pursuant to
    13  subparagraphs twelve and thirteen of paragraph (a) of subdivision one of
    14  section three hundred sixty-six of the  social  services  law  from  the
    15  tobacco  control  and  insurance  initiatives  pool  established for the
    16  following periods in the following amounts:
    17    (i) one million eight hundred thousand dollars for  the  period  April
    18  first, two thousand two through December thirty-first, two thousand two;
    19    (ii)  sixteen  million  four hundred thousand dollars on an annualized
    20  basis for the period January first, two thousand three through  December
    21  thirty-first, two thousand three;
    22    (iii) eighteen million seven hundred thousand dollars on an annualized
    23  basis  for  the period January first, two thousand four through December
    24  thirty-first, two thousand four; [and]
    25    (iv) [fifteen] thirty million [three] six hundred thousand dollars for
    26  the period January first, two thousand  five  through  [June  thirtieth]
    27  December thirty-first, two thousand five;
    28    (v) thirty million six hundred thousand dollars for the period January
    29  first, two thousand six through December thirty-first, two thousand six;
    30  and
    31    (vi)  fifteen  million  three  hundred thousand dollars for the period
    32  January first, two thousand seven through June thirtieth,  two  thousand
    33  seven.
    34    (gg) Funds shall be reserved and accumulated from year to year [by the
    35  commissioner]  and  shall  be  available, including income from invested
    36  funds, for purposes of grants to non-public general  hospitals  pursuant
    37  to  paragraph  (c) of subdivision thirty of section twenty-eight hundred
    38  seven-c of this article from the tobacco control  and  insurance  initi-
    39  atives  pool  established  for  the  following  periods in the following
    40  amounts:
    41    (i) up to one million three hundred thousand dollars on an  annualized
    42  basis  for  the  period January first, two thousand two through December
    43  thirty-first, two thousand two;
    44    (ii) up to three million two hundred thousand dollars on an annualized
    45  basis for the period January first, two thousand three through  December
    46  thirty-first, two thousand three;
    47    (iii) up to five million six hundred thousand dollars on an annualized
    48  basis  for  the period January first, two thousand four through December
    49  thirty-first, two thousand four; [and]
    50    (iv) up to [two] five million [eight] six hundred thousand dollars for
    51  the period January first, two thousand  five  through  [June  thirtieth]
    52  December thirty-first, two thousand five;
    53    (v)  up  to  five  million six hundred thousand dollars for the period
    54  January first, two thousand six through December thirty-first, two thou-
    55  sand six; and
        S. 992                             35                            A. 1922
 
     1    (vi) up to two million eight hundred thousand dollars for  the  period
     2  January  first,  two thousand seven through June thirtieth, two thousand
     3  seven.
     4    (hh) Funds shall be reserved and accumulated from year to year [by the
     5  commissioner]  and  shall  be  available, including income from invested
     6  funds, for purposes of providing  financial  assistance  to  residential
     7  health  care facilities pursuant to subdivisions nineteen and twenty-one
     8  of section twenty-eight hundred eight of this article, from the  tobacco
     9  control  and  insurance  initiatives  pool established for the following
    10  periods in the following amounts:
    11    (i) for the period April first,  two  thousand  two  through  December
    12  thirty-first, two thousand two, ten million dollars;
    13    (ii) for the period January first, two thousand three through December
    14  thirty-first,  two thousand three, nine million four hundred fifty thou-
    15  sand dollars;
    16    (iii) for the period January first, two thousand four through December
    17  thirty-first, two thousand four, nine million three hundred fifty  thou-
    18  sand dollars; [and]
    19    (iv)  up to [five] fifteen million [seventy-five thousand] dollars for
    20  the period January first, two thousand  five  through  [June  thirtieth]
    21  December thirty-first, two thousand five;
    22    (v)  up  to  fifteen million dollars for the period January first, two
    23  thousand six through December thirty-first, two thousand six; and
    24    (vi) up to seven million five hundred thousand dollars for the  period
    25  January  first,  two thousand seven through June thirtieth, two thousand
    26  seven.
    27    (ii) Funds shall be deposited  by  the  commissioner,  within  amounts
    28  appropriated,  and  the  state  comptroller  is  hereby  authorized  and
    29  directed to receive for deposit to  the  credit  of  the  state  special
    30  revenue  funds  - other, HCRA transfer fund, medical assistance account,
    31  or any successor fund or account, for  the  purpose  of  supporting  the
    32  state  share of Medicaid expenditures for disabled persons as authorized
    33  by sections 1619 (a) and (b) of the federal social security act pursuant
    34  to the tobacco control and insurance initiatives  pool  established  for
    35  the following periods in the following amounts:
    36    (i)  six  million  four  hundred thousand dollars for the period April
    37  first, two thousand two through December thirty-first, two thousand two;
    38    (ii) eight million five hundred thousand dollars, for the period Janu-
    39  ary first, two thousand three through December thirty-first,  two  thou-
    40  sand three;
    41    (iii) eight million five hundred thousand dollars for the period Janu-
    42  ary first, two thousand four through December thirty-first, two thousand
    43  four; [and]
    44    (iv)  [four]  eight  million [three] five hundred thousand dollars for
    45  the period January first, two thousand  five  through  [June  thirtieth]
    46  December thirty-first, two thousand five;
    47    (v) eight million five hundred thousand dollars for the period January
    48  first, two thousand six through December thirty-first, two thousand six;
    49  and
    50    (vi)  four million three hundred thousand dollars for the period Janu-
    51  ary first, two thousand  seven  through  June  thirtieth,  two  thousand
    52  seven.
    53    (jj) Funds shall be reserved and accumulated from year to year [by the
    54  commissioner]  and  shall  be  available, including income from invested
    55  funds, for the purposes of a grant program to improve access  to  infer-
    56  tility services, treatments and procedures, from the tobacco control and
        S. 992                             36                            A. 1922
 
     1  insurance initiatives pool established for the period January first, two
     2  thousand  two  through  December  thirty-first,  two thousand two in the
     3  amount of nine million one hundred seventy-five thousand dollars.
     4    (kk)  Funds  shall  be  deposited  by the commissioner, within amounts
     5  appropriated,  and  the  state  comptroller  is  hereby  authorized  and
     6  directed  to  receive  for  deposit  to  the credit of the state special
     7  revenue funds -- other, HCRA transfer fund, medical assistance  account,
     8  or  any  successor  fund  or  account, for purposes of funding the state
     9  share of Medicaid expenditures for pharmacy services  from  the  tobacco
    10  control  and  insurance  initiatives  pool established for the following
    11  periods in the following amounts:
    12    (i) thirty-eight million eight hundred thousand dollars for the period
    13  January first, two thousand two through December thirty-first, two thou-
    14  sand two;
    15    (ii) up to two hundred ninety-five  million  dollars  for  the  period
    16  January  first,  two  thousand  three through December thirty-first, two
    17  thousand three;
    18    (iii) up to four hundred seventy-two million dollars  for  the  period
    19  January  first,  two  thousand  four  through December thirty-first, two
    20  thousand four; [and]
    21    (iv) up to [two] seven hundred [fifty-five] million  dollars  for  the
    22  period  January first, two thousand five through [June thirtieth] Decem-
    23  ber thirty-first, two thousand five;
    24    (v) up to five hundred seventy million dollars for the period  January
    25  first, two thousand six through December thirty-first, two thousand six;
    26  and
    27    (vi)  up  to one hundred thirty million dollars for the period January
    28  first, two thousand seven through June thirtieth, two thousand seven.
    29    (ll) Funds shall be deposited  by  the  commissioner,  within  amounts
    30  appropriated,  and  the  state  comptroller  is  hereby  authorized  and
    31  directed to receive for deposit to  the  credit  of  the  state  special
    32  revenue  funds -- other, HCRA transfer fund, medical assistance account,
    33  or any successor fund or account, for  purposes  of  funding  the  state
    34  share  of Medicaid expenditures related to the city of New York from the
    35  tobacco control and  insurance  initiatives  pool  established  for  the
    36  following periods in the following amounts:
    37    (i)  eighty-two  million seven hundred thousand dollars for the period
    38  January first, two thousand two through December thirty-first, two thou-
    39  sand two;
    40    (ii) one hundred twenty-four million six hundred thousand dollars  for
    41  the  period  January  first, two thousand three through December thirty-
    42  first, two thousand three;
    43    (iii) one hundred twenty-four million seven hundred  thousand  dollars
    44  for  the  period January first, two thousand four through December thir-
    45  ty-first, two thousand four; [and]
    46    (iv) [sixty-two] one hundred twenty-four million [four] seven  hundred
    47  thousand dollars for the period January first, two thousand five through
    48  [June thirtieth] December thirty-first, two thousand five;
    49    (v) one hundred twenty-four million seven hundred thousand dollars for
    50  the  period  January  first,  two  thousand six through December thirty-
    51  first, two thousand six; and
    52    (vi) sixty-two million four hundred thousand dollars  for  the  period
    53  January  first,  two thousand seven through June thirtieth, two thousand
    54  seven.
    55    (mm) Funds shall be deposited  by  the  commissioner,  within  amounts
    56  appropriated,  and  the  state  comptroller  is  hereby  authorized  and
        S. 992                             37                            A. 1922
 
     1  directed to receive for deposit to  the  credit  of  the  state  special
     2  revenue  funds  - other, HCRA transfer fund, medical assistance account,
     3  or any successor fund or account,  for  purposes  of  funding  specified
     4  percentages  of  the state share of services and expenses related to the
     5  family health plus program in accordance with the following schedule:
     6    (i) for the period [beginning] January first, two thousand three  [and
     7  ending]  through  December  thirty-first, two thousand four, one hundred
     8  percent of the state share;
     9    (ii) for the period [beginning] January first, two thousand five  [and
    10  ending]  through  December thirty-first, two thousand five, seventy-five
    11  percent of the state share; and,
    12    (iii) for [the period] periods beginning on and after  January  first,
    13  two  thousand  six  [and ending December thirty-first, two thousand six,
    14  and thereafter], fifty percent of the state  share.    Funding  for  the
    15  family health plus program will include up to five million dollars annu-
    16  ally  for  the period January first, two thousand three through December
    17  thirty-first, two thousand [four]  six,  and  up  to  two  million  five
    18  hundred  thousand  dollars  for  the  period January first, two thousand
    19  [five] seven through June  thirtieth,  two  thousand  [five]  seven  for
    20  administration  and  marketing costs associated with such program estab-
    21  lished pursuant to clauses (A) and (B) of subparagraph (v) of  paragraph
    22  (a)  of  subdivision  two  of section three hundred sixty-nine-ee of the
    23  social services law from the tobacco control and  insurance  initiatives
    24  pool established for the following periods in the following amount:
    25    (i)  one  hundred  ninety million six hundred thousand dollars for the
    26  period January first, two thousand three through December  thirty-first,
    27  two thousand three;
    28    (ii)  three  hundred  forty-eight  million one hundred thirty thousand
    29  dollars for the period January first, two thousand four through December
    30  thirty-first, two thousand four; [and]
    31    (iii) [one]  three  hundred  [eighty-one]  sixty-seven  million  [one]
    32  hundred thousand dollars for the period January first, two thousand five
    33  through [June thirtieth] December thirty-first, two thousand five;
    34    (iv) three hundred three million dollars for the period January first,
    35  two thousand six through December thirty-first, two thousand six; and
    36    (v)  one  hundred  fifty-seven  million dollars for the period January
    37  first, two thousand seven through June thirtieth, two thousand seven.
    38    (nn) Funds shall be deposited  by  the  commissioner,  within  amounts
    39  appropriated,  and  the  state  comptroller  is  hereby  authorized  and
    40  directed to receive for deposit to  the  credit  of  the  state  special
    41  revenue  fund - other, HCRA transfer fund, health care services account,
    42  or any successor fund or account, for purposes  related  to  adult  home
    43  initiatives  for  medicaid  eligible residents of residential facilities
    44  licensed pursuant to section four hundred sixty-b of the social services
    45  law from the tobacco control and insurance initiatives pool  established
    46  for the following periods in the following amounts:
    47    (i) up to four million dollars for the period January first, two thou-
    48  sand three through December thirty-first, two thousand three;
    49    (ii) up to six million dollars for the period January first, two thou-
    50  sand four through December thirty-first, two thousand four; [and]
    51    (iii) up to [four] eight million dollars for the period January first,
    52  two  thousand  five  through [June thirtieth] December thirty-first, two
    53  thousand five, provided, however, that up to five  million  two  hundred
    54  fifty  thousand  dollars  of  such  funds shall be received by the comp-
    55  troller and deposited to the  credit  of  the  special  revenue  fund  -
    56  other  / aid to localities, HCRA transfer fund - 061, enhanced community
        S. 992                             38                            A. 1922
 
     1  services account - 05,  or  any  successor  fund  or  account,  for  the
     2  purposes set forth in this paragraph;
     3    (iv)  up  to  eight  million dollars for the period January first, two
     4  thousand six through December thirty-first, two thousand six,  provided,
     5  however,  that  up to five million two hundred fifty thousand dollars of
     6  such funds shall be received by the comptroller  and  deposited  to  the
     7  credit  of  the  special  revenue fund - other / aid to localities, HCRA
     8  transfer fund - 061, enhanced community services account -  05,  or  any
     9  successor fund or account, for the purposes set forth in this paragraph;
    10  and
    11    (v) up to four million dollars for the period January first, two thou-
    12  sand  seven through June thirtieth, two thousand seven, provided, howev-
    13  er, that up to five million two hundred fifty thousand dollars  of  such
    14  funds  shall  be received by the comptroller and deposited to the credit
    15  of the special revenue fund - other / aid to localities,  HCRA  transfer
    16  fund  -  061, enhanced community services account - 05, or any successor
    17  fund or account, for the purposes set forth in this paragraph.
    18    (oo) Funds shall be reserved and accumulated from year to year [by the
    19  commissioner] and shall be available,  including  income  from  invested
    20  funds,  for  purposes of grants to non-public general hospitals pursuant
    21  to paragraph (e) of  subdivision  twenty-five  of  section  twenty-eight
    22  hundred  seven-c  of this article from the tobacco control and insurance
    23  initiatives pool established for the following periods in the  following
    24  amounts:
    25    (i)  up  to five million dollars on an annualized basis for the period
    26  January first, two thousand  four  through  December  thirty-first,  two
    27  thousand four; [and]
    28    (ii)  up to [two] five million [five hundred thousand] dollars for the
    29  period January first, two thousand five through [June thirtieth]  Decem-
    30  ber thirty-first, two thousand five;
    31    (iii)  up  to  five  million dollars for the period January first, two
    32  thousand six through December thirty-first, two thousand six; and
    33    (iv) up to two million five hundred thousand dollars  for  the  period
    34  January  first,  two thousand seven through June thirtieth, two thousand
    35  seven.
    36    (pp) Funds shall be reserved and accumulated from year to year [by the
    37  commissioner] and shall be available,  including  income  from  invested
    38  funds,  for  the  purpose of supporting the provision of tax credits for
    39  long term care insurance pursuant to  subdivision  one  of  section  one
    40  hundred   ninety   of   the   tax  law,  paragraph  (a)  of  subdivision
    41  twenty-five-a of section two hundred ten of such law, subsection (aa) of
    42  section six hundred six of such law, paragraph one of subsection (k)  of
    43  section  fourteen  hundred  fifty-six  of  such law and paragraph one of
    44  subdivision (m) of section fifteen hundred eleven of such  law,  in  the
    45  following amounts:
    46    (i)  ten  million  dollars  for the period January first, two thousand
    47  four through December thirty-first, two thousand four; [and]
    48    (ii) [five] ten million dollars for  the  period  January  first,  two
    49  thousand  five through [June thirtieth] December thirty-first, two thou-
    50  sand five;
    51    (iii) ten million dollars for the period January first,  two  thousand
    52  six through December thirty-first, two thousand six; and
    53    (iv)  five  million dollars for the period January first, two thousand
    54  seven through June thirtieth, two thousand seven.
    55    (qq) Funds shall be reserved and accumulated from year to year [by the
    56  commissioner] and shall be available,  including  income  from  invested
        S. 992                             39                            A. 1922
 
     1  funds, for the purpose of supporting the long-term care insurance educa-
     2  tion  and outreach program established pursuant to section [five hundred
     3  forty-four] two hundred seventeen-a of the [executive] elder law for the
     4  following periods in the following amounts:
     5    (i) up to five million dollars for the period January first, two thou-
     6  sand  four  through  December  thirty-first,  two thousand four; of such
     7  funds one million nine hundred fifty  thousand  dollars  shall  be  made
     8  available  to the department for the purpose of developing, implementing
     9  and administering the long-term care insurance  education  and  outreach
    10  program and three million fifty thousand dollars shall be made available
    11  to  the  office for the aging for the purpose of providing the long term
    12  care insurance resource centers with the necessary  resources  to  carry
    13  out their operations.
    14    (ii)  up to [two] five million [five hundred thousand] dollars for the
    15  period January first, two thousand five through [June thirtieth]  Decem-
    16  ber  thirty-first, two thousand five; of such funds [nine hundred seven-
    17  ty-five] one million nine hundred fifty thousand dollars shall  be  made
    18  available  to the department for the purpose of developing, implementing
    19  and administering the long-term care insurance  education  and  outreach
    20  program  and  [one] three million [five hundred twenty-five] fifty thou-
    21  sand dollars shall be made available to the office for the aging for the
    22  purpose of providing the long term care insurance resource centers  with
    23  the necessary resources to carry out their operations.
    24    (iii)  up  to  five  million dollars for the period January first, two
    25  thousand six through December thirty-first, two thousand  six;  of  such
    26  funds  one  million  nine  hundred  fifty thousand dollars shall be made
    27  available to the department for the purpose of developing,  implementing
    28  and  administering  the  long-term care insurance education and outreach
    29  program and three million fifty thousand dollars shall be made available
    30  to the office for the aging for the purpose of providing the  long  term
    31  care  insurance  resource  centers with the necessary resources to carry
    32  out their operations.
    33    (iv) up to two million five hundred thousand dollars  for  the  period
    34  January  first,  two thousand seven through June thirtieth, two thousand
    35  seven; of such funds nine hundred seventy-five thousand dollars shall be
    36  made available to the department for the purpose of  developing,  imple-
    37  menting  and  administering  the  long-term care insurance education and
    38  outreach program and  one  million  five  hundred  twenty-five  thousand
    39  dollars  shall  be  made  available  to the office for the aging for the
    40  purpose of providing the long term care insurance resource centers  with
    41  the necessary resources to carry out their operations.
    42    (rr)  Funds shall be reserved and accumulated from the tobacco control
    43  and insurance initiatives pool and shall be available, including  income
    44  from  invested  funds, for the purpose of supporting expenses related to
    45  implementation of the provisions of title III of  article  twenty-nine-D
    46  of this chapter, for the following periods and in the following amounts:
    47    (i)  up to ten million dollars for the period January first, two thou-
    48  sand six through December thirty-first, two thousand six; and
    49    (ii) up to five million dollars for  the  period  January  first,  two
    50  thousand seven through June thirtieth, two thousand seven.
    51    (ss)  Funds  shall  be  reserved and accumulated [by the commissioner]
    52  from the tobacco control and insurance initiatives pool and used  for  a
    53  health  care  stabilization  program established by the commissioner for
    54  the purposes of stabilizing critical health care  providers  and  health
    55  care programs whose ability to continue to [proivde] provide appropriate
    56  services  are threatened by financial or other challenges, in the amount
        S. 992                             40                            A. 1922
 
     1  of up to [twenty-eight] fourteen million dollars  for  the  period  July
     2  first, two thousand four through [June thirtieth] December thirty-first,
     3  two  thousand  [five]  four,  and up to twenty-eight million dollars for
     4  each  annual  period thereafter through December thirty-first, two thou-
     5  sand six and up to fourteen  million  dollars  for  the  period  January
     6  first,  two  thousand  seven through June thirtieth, two thousand seven.
     7  Notwithstanding the provisions of section  one  hundred  twelve  of  the
     8  state  finance  law  or  any  other  inconsistent provision of the state
     9  finance law or any other law, funds available for distribution  pursuant
    10  to  this  paragraph may be allocated and distributed by the commissioner
    11  without a competitive bid or request for proposal  process.    Consider-
    12  ations relied upon by the commissioner in determining the allocation and
    13  distribution  of  these  funds shall include, but not be limited to, the
    14  following: (i) the importance of the  provider  or  program  in  meeting
    15  critical  health  care needs in the community in which it operates; (ii)
    16  the provider or program provision of care to  under-served  populations;
    17  (iii) the quality of the care or services the provider or program deliv-
    18  ers;  (iv) the ability of the provider or program to continue to deliver
    19  an appropriate level of care or services if additional funding  is  made
    20  available;  (v)  the  ability of the provider or program to access, in a
    21  timely manner, alternative sources of funding, including  other  sources
    22  of  government  funding; (vi) the ability of other providers or programs
    23  in the community to meet the community health care needs; (vii)  whether
    24  the provider or program has an appropriate plan to improve its financial
    25  condition;  and  (viii)  whether  additional  funding  would  permit the
    26  provider or program to  consolidate,  relocate,  or  close  programs  or
    27  services  where such actions would result in greater stability and effi-
    28  ciency in the delivery of needed health care services or programs.
    29    (tt) Funds shall be reserved and accumulated from year to year [by the
    30  commissioner] and shall be available,  including  income  from  invested
    31  funds,  for  purposes  of providing grants for two long term care demon-
    32  stration projects designed to test new models for the delivery  of  long
    33  term  care services established pursuant to section twenty-eight hundred
    34  seven-x of this chapter, for the following periods and in the  following
    35  amounts:
    36    (i)  up to five hundred thousand dollars for the period January first,
    37  two thousand four through  December  thirty-first,  two  thousand  four;
    38  [and]
    39    (ii)  up to [two] five hundred [fifty] thousand dollars for the period
    40  January first, two thousand five through [June thirtieth] December thir-
    41  ty-first, two thousand five;
    42    (iii) up to five hundred  thousand  dollars  for  the  period  January
    43  first, two thousand six through December thirty-first, two thousand six;
    44  and
    45    (iv)  up  to two hundred fifty thousand dollars for the period January
    46  first, two thousand seven through June thirtieth, two thousand seven.
    47    (uu) Funds shall be reserved and accumulated and shall  be  available,
    48  including  income  from  invested  funds,  for the purpose of supporting
    49  studies or investigations relating to health care  financing  undertaken
    50  by the commissioner, including grants or contracts which the commission-
    51  er  may, notwithstanding section one hundred twelve of the state finance
    52  law or any other  contrary  provision  of  law,  enter  into,  with  the
    53  approval  of  the  director  of the budget, without a competitive bid or
    54  request for proposal process, from the  tobacco  control  and  insurance
    55  initiatives  pool established for the following periods in the following
    56  amounts:
        S. 992                             41                            A. 1922
 
     1    (i) up to seven hundred fifty thousand dollars for the period  January
     2  first,  two  thousand  five  through December thirty-first, two thousand
     3  five;
     4    (ii)  up  to  six  hundred twenty-five thousand dollars for the period
     5  January first, two thousand six through December thirty-first, two thou-
     6  sand six; and
     7    (iii) up to one hundred twenty-five thousand dollars  for  the  period
     8  January  first,  two thousand seven through June thirtieth, two thousand
     9  seven.
    10    (vv) Funds shall be reserved and accumulated from year to year [by the
    11  commissioner] and shall be available,  including  income  from  invested
    12  funds, for the purpose of supporting disease management and telemedicine
    13  demonstration   programs  authorized  pursuant  to  sections  twenty-one
    14  hundred eleven  and  thirty-six  hundred  twenty-one  of  this  chapter,
    15  respectively, for the following periods in the following amounts:
    16    (i)  five  million  dollars for the period January first, two thousand
    17  four through December thirty-first, two thousand four,  of  which  three
    18  million  dollars shall be available for disease management demonstration
    19  programs and two million dollars shall  be  available  for  telemedicine
    20  demonstration programs;
    21    (ii) [two] five million [five hundred thousand] dollars for the period
    22  January first, two thousand five through [June thirtieth] December thir-
    23  ty-first,  two thousand five, of which [one] three million [five hundred
    24  thousand] dollars shall  be  available  for  disease  management  demon-
    25  stration  programs  and [one] two million dollars shall be available for
    26  telemedicine demonstration programs;
    27    (iii) nine million five hundred thousand dollars for the period  Janu-
    28  ary  first, two thousand six through December thirty-first, two thousand
    29  six, of which seven million  five  hundred  thousand  dollars  shall  be
    30  available  for disease management demonstration programs and two million
    31  dollars shall be available for telemedicine demonstration programs; and
    32    (iv) four million seven hundred fifty thousand dollars for the  period
    33  January  first,  two thousand seven through June thirtieth, two thousand
    34  seven, of which three million seven hundred fifty thousand dollars shall
    35  be available for  disease  management  demonstration  programs  and  one
    36  million  dollars  shall  be  available  for  telemedicine  demonstration
    37  programs.
    38    (ww) Funds shall be reserved and accumulated from the tobacco  control
    39  and  insurance initiatives pool and shall be available, including income
    40  from invested funds, for the purpose of providing grants  to  facilities
    41  licensed  under  this article for the purpose of the purchase and opera-
    42  tion of mobile dental clinic units, pursuant to this  chapter,  for  the
    43  following periods in the following amounts:
    44    (i)  up to seven hundred fifty thousand dollars for the period January
    45  first, two thousand five through  December  thirty-first,  two  thousand
    46  five;
    47    (ii)  up  to  six  hundred twenty-five thousand dollars for the period
    48  January first, two thousand six through December thirty-first, two thou-
    49  sand six; and
    50    (iii) up to one hundred twenty-five thousand dollars  for  the  period
    51  January  first,  two thousand seven through June thirtieth, two thousand
    52  seven.
    53    2. (a) [The] For periods prior to January first,  two  thousand  five,
    54  the  commissioner is authorized to contract with the article forty-three
    55  insurance law plans, or such other contractors as the commissioner shall
    56  designate, to receive and distribute funds from the tobacco control  and
        S. 992                             42                            A. 1922
 
     1  insurance  initiatives pool established pursuant to this section. In the
     2  event contracts with the article  forty-three  insurance  law  plans  or
     3  other  commissioner's  designees are effectuated, the commissioner shall
     4  conduct annual audits of the receipt and distribution of such funds. The
     5  reasonable  costs  and  expenses  of an administrator as approved by the
     6  commissioner, not to exceed for personnel services on  an  annual  basis
     7  five  hundred thousand dollars, for collection and distribution of funds
     8  pursuant to this section shall be paid from such funds.
     9    (b) Notwithstanding any inconsistent provision of section one  hundred
    10  twelve  or one hundred sixty-three of the state finance law or any other
    11  law, at the discretion of the commissioner without a competitive bid  or
    12  request  for proposal process, contracts in effect for administration of
    13  pools established pursuant to  sections  twenty-eight  hundred  seven-k,
    14  twenty-eight  hundred  seven-l  and twenty-eight hundred seven-m of this
    15  article for the  period  January  first,  nineteen  hundred  ninety-nine
    16  through  December  thirty-first,  nineteen  hundred  ninety-nine  may be
    17  extended to provide for administration pursuant to this section and  may
    18  be amended as may be necessary.
    19    3.  Revenue  from  distributions pursuant to this section shall not be
    20  included in gross revenue  received  for  purposes  of  the  assessments
    21  pursuant to subdivision eighteen of section twenty-eight hundred seven-c
    22  of  this article, subject to the provisions of paragraph (e) of subdivi-
    23  sion eighteen of section twenty-eight hundred seven-c of  this  article,
    24  and  shall not be included in gross revenue received for purposes of the
    25  assessments pursuant to section twenty-eight  hundred  seven-d  of  this
    26  article,  subject  to  the  provisions  of subdivision twelve of section
    27  twenty-eight hundred seven-d of this article.
    28    4. In the event residual funds are available in  the  tobacco  control
    29  and  insurance  initiatives  pool  established  for  the periods January
    30  first, two thousand through June thirtieth, two thousand  [five]  seven,
    31  after  allocations have been made pursuant to this section for the peri-
    32  ods January first, two thousand through  June  thirtieth,  two  thousand
    33  [five]  seven, any amount of such funds may be transferred to the health
    34  care initiatives  pool  established  pursuant  to  section  twenty-eight
    35  hundred seven-l of this article for the periods January first, two thou-
    36  sand  through June thirtieth, two thousand [five] seven, to be allocated
    37  and distributed proportionally among affected programs  by  the  commis-
    38  sioner  to  cover  any  shortfall  in programs and purposes set forth in
    39  subdivision one of section twenty-eight hundred seven-l of this article.
    40    § 4. Subdivision 5 of section 367-o of the  social  services  law,  as
    41  amended  by  section 30 of part H of chapter 686 of the laws of 2003, is
    42  amended to read as follows:
    43    5. Between January first, two thousand and December thirty-first,  two
    44  thousand  two, the state share amount for all demonstrations pursuant to
    45  this section shall be no more  than  twenty-seven  million  dollars  per
    46  twelve  month period if averaged over the term of the demonstration; and
    47  between January first, two thousand three and June thirtieth, two  thou-
    48  sand  [five] seven, the state share amount for all demonstrations pursu-
    49  ant to this section shall be no more than sixty-nine million dollars per
    50  twelve month period if averaged over the term of the demonstration.
    51    § 5. Subdivision 4 of section 2808-d of  the  public  health  law,  as
    52  amended  by  section 13 of part H of chapter 686 of the laws of 2003, is
    53  amended to read as follows:
    54    4. Grants and adjustments to Medicaid rates of payment  made  pursuant
    55  to  this  section shall not, in aggregate, exceed sixty-two million five
    56  hundred thousand dollars for the period beginning April first, two thou-
        S. 992                             43                            A. 1922
 
     1  sand two and ending December thirty-first, two thousand two, and, on  an
     2  annualized  basis,  for  each annual period thereafter beginning January
     3  first, two thousand three and ending December thirty-first, two thousand
     4  four, and shall not, in aggregate, exceed [thirty-one] forty-six million
     5  [two] eight hundred [fifty] seventy-five thousand dollars for the period
     6  January first, two thousand five through [June thirtieth] December thir-
     7  ty-first,  two  thousand five and shall not, in aggregate, on an annual-
     8  ized basis, exceed thirty-one million two hundred fifty thousand dollars
     9  for the period January first, two thousand six through  June  thirtieth,
    10  two thousand seven.
    11    § 6. Clause (A) of subparagraph (i) of paragraph (a) of subdivision 30
    12  of  section  2807-c of the public health law, as amended by section 8 of
    13  part H of chapter 686 of the  laws  of  2003,  is  amended  to  read  as
    14  follows:
    15    (A) ninety-three million two hundred thousand dollars on an annualized
    16  basis  for  the  period  April  first, two thousand two through December
    17  thirty-first, two thousand two; one hundred eighty-seven  million  eight
    18  hundred  thousand  dollars on an annualized basis for the period January
    19  first, two thousand three through December  thirty-first,  two  thousand
    20  three;  two hundred sixty-two million one hundred thousand dollars on an
    21  annualized basis for the period January first, two thousand four through
    22  December thirty-first, two thousand [four] six; and one hundred  thirty-
    23  one  million  one hundred thousand dollars for the period January first,
    24  two thousand [five] seven through June thirtieth,  two  thousand  [five]
    25  seven.
    26    §  7.  Paragraph (f) of subdivision 31 of section 2807-c of the public
    27  health law, as amended by section 10 of part H of  chapter  686  of  the
    28  laws of 2003, is amended to read as follows:
    29    (f)  Adjustments  to  Medicaid  rates of payment made pursuant to this
    30  section shall not, in aggregate, exceed fifteen million dollars for  the
    31  period beginning April first, two thousand two and ending December thir-
    32  ty-first,  two thousand two and, on an annualized basis, for each annual
    33  period thereafter beginning January first, two thousand three and ending
    34  December thirty-first, two thousand [four] six, and shall not, in aggre-
    35  gate, exceed seven million five hundred thousand dollars for the  period
    36  January  first,  two  thousand  [five] seven through June thirtieth, two
    37  thousand [five] seven.
    38    § 8. Clause (A) of subparagraph (i) of paragraph (b) of subdivision 30
    39  of section 2807-c of the public health law, as amended by section  9  of
    40  part  H  of  chapter  686  of  the  laws  of 2003, is amended to read as
    41  follows:
    42    (A) eighteen million five hundred thousand dollars  on  an  annualized
    43  basis  for  the  period  April  first, two thousand two through December
    44  thirty-first, two thousand two; thirty-seven million four hundred  thou-
    45  sand  dollars  on  an annualized basis for the period January first, two
    46  thousand  three  through  December  thirty-first,  two  thousand  three;
    47  fifty-two  million  two  hundred thousand dollars on an annualized basis
    48  for the period January first, two thousand four through  December  thir-
    49  ty-first,  two  thousand  [four] six; and twenty-six million one hundred
    50  thousand dollars for the period January first, two thousand [five] seven
    51  through June thirtieth, two thousand [five] seven.
    52    § 9. Clause (A) of subparagraph (i) of paragraph (a) of subdivision 18
    53  of section 2808 of the public health law, as amended by  section  11  of
    54  part  H  of  chapter  686  of  the  laws  of 2003, is amended to read as
    55  follows:
        S. 992                             44                            A. 1922
 
     1    (A) fifty-three million five hundred thousand dollars on an annualized
     2  basis for the period April first,  two  thousand  two  through  December
     3  thirty-first, two thousand two; eighty-three million three hundred thou-
     4  sand  dollars  on  an annualized basis for the period January first, two
     5  thousand  three  through  December thirty-first, two thousand three; one
     6  hundred fifteen million eight hundred thousand dollars on an  annualized
     7  basis  for  the period January first, two thousand four through December
     8  thirty-first, two thousand [four]  six;  and  fifty-seven  million  nine
     9  hundred  thousand  dollars  for  the  period January first, two thousand
    10  [five] seven through June thirtieth, two thousand [five] seven.
    11    § 10. Clause (A) of subparagraph (i) of paragraph (b)  of  subdivision
    12  18 of section 2808 of the public health law, as amended by section 12 of
    13  part  H  of  chapter  686  of  the  laws  of 2003, is amended to read as
    14  follows:
    15    (A) seven million five hundred thousand dollars on an annualized basis
    16  for the period April first, two thousand two  through  December  thirty-
    17  first,  two  thousand two; eleven million seven hundred thousand dollars
    18  on an annualized basis for the period January first, two thousand  three
    19  through  December  thirty-first, two thousand three; sixteen million two
    20  hundred thousand dollars on an annualized basis for the  period  January
    21  first,  two  thousand  four  through December thirty-first, two thousand
    22  [four] six; and eight million one hundred thousand dollars for the peri-
    23  od January first, two thousand [five] seven through June thirtieth,  two
    24  thousand [five] seven.
    25    §  11. Paragraphs (c) and (d) of subdivision 1 of section 367-q of the
    26  social services law, as amended by section 61 of part J of chapter 82 of
    27  the laws of 2002, are amended and two new paragraphs  (e)  and  (f)  are
    28  added to read as follows:
    29    (c)  for  the period January first, two thousand four through December
    30  thirty-first, two thousand four, twenty-one million dollars; [and]
    31    (d) for the period January first, two thousand five  through  December
    32  thirty-first, two thousand five, twenty-seven million dollars[.];
    33    (e)  for  the  period January first, two thousand six through December
    34  thirty-first, two thousand six, twenty-seven million dollars; and
    35    (f) for the period January first,  two  thousand  seven  through  June
    36  thirtieth,  two  thousand  seven, thirteen million five hundred thousand
    37  dollars.
    38    § 12. Subparagraphs (iii) and (iv) of paragraph (a) of subdivision  17
    39  of  section  2807  of  the public health law, as amended by section 7 of
    40  part H of chapter 686 of the laws of  2003,  are  amended  and  two  new
    41  subparagraphs (v) and (vi) are added to read as follows:
    42    (iii) for the period January first, two thousand four through December
    43  thirty-first, two thousand four, thirteen million dollars; [and]
    44    (iv)  for  the  period  January first, two thousand five through [June
    45  thirtieth] December thirty-first,  two  thousand  five,  [six]  thirteen
    46  million [five hundred thousand] dollars[.];
    47    (v)  for  the  period January first, two thousand six through December
    48  thirty-first, two thousand six, thirteen million dollars; and
    49    (vi) for the period January first, two  thousand  seven  through  June
    50  thirtieth,  two  thousand  seven,  six  million  five  hundred  thousand
    51  dollars.
    52    § 13. Section 2808-d of the public health law is amended by  adding  a
    53  new subdivision 6 to read as follows:
    54    6.  Notwithstanding  any other provisions of this section or any other
    55  contrary provision of law, the commissioner may,  from  funds  allocated
    56  pursuant  to  subparagraph  (ii)  of paragraph (u) of subdivision one of
        S. 992                             45                            A. 1922
 
     1  section twenty-eight hundred seven-v of this article, make grants in  an
     2  aggregate  amount  not  to  exceed  twelve million five hundred thousand
     3  dollars, to residential health care facilities selected  pursuant  to  a
     4  competitive  process,  in  support  of  projects or programs designed to
     5  improve specific areas of quality of care, as determined by the  commis-
     6  sioner using established measures of such quality of care.
     7    §  14.  Subdivisions  3,  4, 5 and 6 of section 47 of chapter 2 of the
     8  laws of 1998 amending the public health law and other laws  relating  to
     9  expanding  the  child  health  insurance  plan,  subdivisions 3 and 5 as
    10  amended by section 21 of part A3 of chapter 62 of the laws of  2003  and
    11  subdivisions  4 and 6 as amended by section 5 of part B of chapter 58 of
    12  the laws of 2004, are amended to read as follows:
    13    3. section six  of  this  act  shall  take  effect  January  1,  1999;
    14  provided,  however, that subparagraph (iii) of paragraph (c) of subdivi-
    15  sion 9 of section 2510 of the public health law, as added by  this  act,
    16  shall expire on July 1, [2005] 2007;
    17    4.  sections  two, three, four, seven, eight, nine, fourteen, fifteen,
    18  sixteen, eighteen, eighteen-a, twenty-three,  twenty-four,  and  twenty-
    19  nine  of  this act shall take effect January 1, 1999 and shall expire on
    20  July 1, [2005] 2007; section twenty-five of this act shall  take  effect
    21  on January 1, 1999 and shall expire on [October 1, 2004] April 1, 2005;
    22    5.  section  twelve  of  this  act  shall take effect January 1, 1999;
    23  provided, however, paragraphs (g) and (h) of subdivision  2  of  section
    24  2511 of the public health law, as added by such section, shall expire on
    25  July 1, [2005] 2007;
    26    6.  sections  twenty-four-a,  twenty-six  and twenty-six-a of this act
    27  shall expire on [October 1, 2004] April 1, 2005.
    28    § 15. Section 22 of part A3 of chapter 62 of the laws of 2003,  amend-
    29  ing  the  general business law and other laws relating to enacting major
    30  components  necessary  to  implement  the  state  fiscal  plan  for  the
    31  2003-2004 state fiscal year, is amended to read as follows:
    32    § 22. Notwithstanding any inconsistent provision of section 112 or 163
    33  of  the  state  finance  law  or any other law, at the discretion of the
    34  commissioner of  health,  without  a  competitive  bid  or  request  for
    35  proposal  process, contractual arrangements with approved organizations,
    36  as defined in subdivision 2 of section 2510 of the  public  health  law,
    37  and outreach and facilitated enrollment contractors pursuant to subdivi-
    38  sion 9 of section 2511 of the public health law in effect in [2002] 2004
    39  may  be extended through July 1, [2005] 2007 to provide an uninterrupted
    40  continuation of services and may be amended as deemed necessary.
    41    § 16. Subdivision 8 of section 2511 of the public health law, as added
    42  by chapter 922 of the laws of 1990, is amended to read as follows:
    43    8. The commissioner shall determine the amount of funds  to  be  allo-
    44  cated to an approved organization for the purposes described in subdivi-
    45  sion  one  of  this section within such funds which may be available for
    46  the purposes of this article. Subsidy payments made to  approved  organ-
    47  izations on and after April first, two thousand five through March thir-
    48  ty-first,  two thousand six, shall be at amounts approved by the commis-
    49  sioner, in consultation with the superintendent, prior to  April  first,
    50  two  thousand  five.    Applications  for  increases to subsidy payments
    51  submitted by approved organizations to the commissioner and  the  super-
    52  intendent  on  or  after  January first, two thousand five, shall not be
    53  considered for approval by the commissioner until  after  March  thirty-
    54  first,  two thousand six. Nothing in this subdivision shall prohibit the
    55  commissioner from decreasing subsidy payments in accordance  with  rele-
    56  vant contract provisions.
        S. 992                             46                            A. 1922
 
     1    §  17. Section 27 of chapter 2 of the laws of 1998 amending the public
     2  health law and other laws relating to expanding the child health  insur-
     3  ance plan, is amended to read as follows:
     4    § 27. Notwithstanding any other law, rule or regulation to the contra-
     5  ry,  the  commissioner of health is authorized to transfer and the comp-
     6  troller is authorized to deposit into the special revenue funds - other,
     7  miscellaneous special revenue fund - 339, child health insurance account
     8  or any successor fund or account established within  the  department  of
     9  health, within amounts appropriated, those funds authorized for distrib-
    10  ution  in  accordance with the provisions of paragraph (b-1) of subdivi-
    11  sion 19 of section 2807-c of the public health law from  monies  accumu-
    12  lated  and  interest earned in the bad debt and charity care and capital
    13  statewide pool through an assessment charged to general hospitals pursu-
    14  ant to the provisions of subdivision 18 of section 2807-c of the  public
    15  health  law  and  those  funds authorized for distribution in accordance
    16  with the provisions of paragraph (a) of subdivision 1 of section  2807-l
    17  of  the  public  health law for the purposes of payment for costs of the
    18  department of health related to the child health insurance plan  program
    19  authorized  pursuant to title 1-A of article 25 of the public health law
    20  and for payment for costs  of  the  department  of  health  for  medical
    21  assistance  authorized  pursuant to subparagraph (1) of paragraph (q) of
    22  subdivision 4 of section 366 of the social services law for those  chil-
    23  dren born on or before September 30, 1983, or medical assistance author-
    24  ized  pursuant  to  paragraph (t) of subdivision 4 of section 366 of the
    25  social services law.
    26    § 18. Subdivision 11 of section 2807-c of the  public  health  law  is
    27  amended by adding a new paragraph (s-7) to read as follows:
    28    (s-7)  To the extent funds are available otherwise notwithstanding any
    29  inconsistent provision of law to the contrary, for  rate  periods  April
    30  first, two thousand five through March thirty-first, two thousand seven,
    31  the  commissioner  shall increase rates of payment for patients eligible
    32  for payments made by state governmental agencies by  an  amount  not  to
    33  exceed  forty-eight  million  dollars  annually  in  the aggregate. Such
    34  amount shall be allocated among those voluntary non-profit  and  private
    35  proprietary  general  hospitals  which  continue  to  provide  inpatient
    36  services as of April first, two thousand five under a  previous  or  new
    37  name  and which qualified for rate adjustments pursuant to paragraph (s)
    38  of this subdivision as in effect for the  period  July  first,  nineteen
    39  hundred  ninety-five through June thirtieth, nineteen hundred ninety-six
    40  proportionally based on each such general hospital's proportional  share
    41  of  total  funds allocated pursuant to paragraph (s) of this subdivision
    42  as in effect for the period of July first, nineteen hundred  ninety-five
    43  through  June  thirtieth, nineteen hundred ninety-six, provided however,
    44  that amounts allocable to previously but no longer  qualified  hospitals
    45  shall  be  proportionally  reallocated to the remaining qualified hospi-
    46  tals.  The rate adjustments calculated in accordance with this paragraph
    47  shall be subject to retrospective reconciliation  to  ensure  that  each
    48  hospital  receives  in the aggregate its proportionate share of the full
    49  allocation, to the extent allowable under federal law, provided  however
    50  that  the  department  shall  not be required to reconcile payments made
    51  pursuant to paragraph (s) of  this  subdivision  applicable  to  periods
    52  prior to September first, nineteen hundred ninety-seven.
    53    §  19.  Section 2807-l of the public health law, as amended by section
    54  16 of part A3 of chapter 62 of the laws of 2003, clauses (F) and (G)  of
    55  subparagraph  (i) of paragraph (b) as amended and clause (I) of subpara-
    56  graph (i) of paragraph (b) as added by section 1 of part M1  of  chapter
        S. 992                             47                            A. 1922
 
     1  63  of the laws of 2003, clause (H) of subparagraph (i) of paragraph (b)
     2  as amended by section 13 of part B of chapter 58 of the  laws  of  2004,
     3  clauses  (C) and (D) of subparagraph (ii) of paragraph (b) as amended by
     4  section  12  of  part  B  of chapter 58 of the laws of 2004, the opening
     5  paragraph of paragraph (c) as amended by section 5 of part H and subpar-
     6  agraph (vii) of paragraph (k) as amended by section  14  of  part  H  of
     7  chapter 686 of the laws of 2003, of subdivision 1, is amended to read as
     8  follows:
     9    §  2807-l. Health care initiatives pool distributions.  1. Funds accu-
    10  mulated in the health care initiatives pools pursuant to  paragraph  (b)
    11  of  subdivision  nine  of  section  twenty-eight hundred seven-j of this
    12  article, including income from invested funds, shall be  distributed  or
    13  retained by the commissioner or by the state comptroller, as applicable,
    14  in accordance with the following.
    15    (a)  Funds shall be reserved and accumulated from year to year [by the
    16  commissioner] and shall be available,  including  income  from  invested
    17  funds,  for purposes of distributions to programs to provide health care
    18  coverage for uninsured or underinsured  children  pursuant  to  sections
    19  twenty-five  hundred  ten and twenty-five hundred eleven of this chapter
    20  from the respective health care initiatives pools  established  for  the
    21  following periods in the following amounts:
    22    (i) from the pool for the period January first, nineteen hundred nine-
    23  ty-seven  through  December thirty-first, nineteen hundred ninety-seven,
    24  up to one hundred twenty million six hundred thousand dollars;
    25    (ii) from the pool for the  period  January  first,  nineteen  hundred
    26  ninety-eight  through  December  thirty-first,  nineteen hundred ninety-
    27  eight, up to  one  hundred  sixty-four  million  five  hundred  thousand
    28  dollars;
    29    (iii)  from  the  pool  for the period January first, nineteen hundred
    30  ninety-nine through December thirty-first, nineteen hundred ninety-nine,
    31  up to one hundred eighty-one million dollars;
    32    (iv) from the pool for the period January first, two thousand  through
    33  December thirty-first, two thousand, two hundred seven million dollars;
    34    (v)  from  the  pool  for  the  period January first, two thousand one
    35  through December thirty-first, two thousand one, two hundred thirty-five
    36  million dollars;
    37    (vi) from the pool for the period  January  first,  two  thousand  two
    38  through  December  thirty-first, two thousand two, three hundred twenty-
    39  four million dollars;
    40    (vii) from the pool for the period January first, two  thousand  three
    41  through  December  thirty-first,  two thousand three, up to four hundred
    42  fifty million three hundred thousand dollars;
    43    (viii) from the pool for the period January first, two  thousand  four
    44  through  December  thirty-first,  two  thousand four, up to four hundred
    45  sixty million nine hundred thousand dollars;
    46    (ix) from the pool for the period January  first,  two  thousand  five
    47  through  [June  thirtieth,] December thirty-first, two thousand five, up
    48  to [two hundred forty-one million nine  hundred  thousand]  one  hundred
    49  fifty-three million eight hundred thousand dollars; [and]
    50    (x)  from  the  pool  for  the  period January first, two thousand six
    51  through December thirty-first, two thousand six,  up  to  three  hundred
    52  twenty-five million four hundred thousand dollars; and
    53    (xi)  from  the  pool for the period January first, two thousand seven
    54  through June thirtieth, two thousand seven, up to  one  hundred  eighty-
    55  eight million nine hundred thousand dollars.
        S. 992                             48                            A. 1922
 
     1    (xii)  If  funds allocated pursuant to this paragraph are insufficient
     2  to cover the costs required to meet the state's obligations  established
     3  in  sections  twenty-five  hundred ten and twenty-five hundred eleven of
     4  this chapter, the commissioner or the state comptroller, as  applicable,
     5  shall  transfer  and deposit funds accumulated pursuant to section twen-
     6  ty-eight hundred seven-v of this article into the special revenue  fund-
     7  other,  miscellaneous  special  revenue fund-339, child health insurance
     8  account or any successor fund or  account,  such  amounts  necessary  to
     9  fully fund such obligations.
    10    (b)  Funds shall be reserved and accumulated from year to year [by the
    11  commissioner] and shall be available,  including  income  from  invested
    12  funds, for purposes of distributions for health insurance programs under
    13  the  [New York state small business health insurance partnership program
    14  established pursuant to article nine-A of this chapter, a voucher insur-
    15  ance program established pursuant to section eleven  hundred  twenty-one
    16  of  the insurance law,] individual subsidy programs established pursuant
    17  to the expanded health care coverage act  of  nineteen  hundred  eighty-
    18  eight  as  amended,  and  the  catastrophic  health care expense program
    19  established pursuant to title eleven-A of article  five  of  the  social
    20  services  law  and  for  evaluation of such programs from the respective
    21  health care initiatives pools established for the following  periods  in
    22  the following amounts:
    23    (i)  (A) [from the pool for the period January first, nineteen hundred
    24  ninety-seven through December thirty-first, nineteen hundred ninety-sev-
    25  en, up to twenty-four million dollars;
    26    (B) from the pool for the period January first, nineteen hundred nine-
    27  ty-eight through December thirty-first, nineteen  hundred  ninety-eight,
    28  up to twenty-four million dollars;
    29    (C) from the pool for the period January first, nineteen hundred nine-
    30  ty-nine  through December thirty-first, nineteen hundred ninety-nine, up
    31  to twenty-four million dollars;
    32    (D) from the pool for the period January first, two  thousand  through
    33  December thirty-first, two thousand, up to seventeen million dollars;
    34    (E)  from  the  pool  for  the  period January first, two thousand one
    35  through December thirty-first, two thousand one, up to fourteen  million
    36  two hundred thousand dollars;
    37    (F)  from  the  pool  for  the  period January first, two thousand two
    38  through December thirty-first, two thousand two, up  to  eleven  million
    39  three hundred thousand dollars;
    40    (G)  from  the  pool  for the period January first, two thousand three
    41  through December thirty-first, two thousand three, up to  seven  million
    42  one hundred thousand dollars;
    43    (H)  from  the  pool  for  the period January first, two thousand four
    44  through the period December thirty-first, two thousand four, up to three
    45  million three hundred thousand dollars; and
    46    (I) from the pool for the period  January  first,  two  thousand  five
    47  through  the  period  June  thirtieth,  two  thousand  five, up to three
    48  million three hundred thousand dollars.
    49    (ii) provided however, that from  such  funds  allocated  pursuant  to
    50  subparagraph (i) of this paragraph:
    51    (A) an amount not to exceed six million dollars on an annualized basis
    52  for  the periods during the period January first, nineteen hundred nine-
    53  ty-seven through December thirty-first, nineteen hundred ninety-nine; up
    54  to six million dollars  for  the  period  January  first,  two  thousand
    55  through  December thirty-first, two thousand; up to five million dollars
    56  for the period January first, two thousand one through December  thirty-
        S. 992                             49                            A. 1922
 
     1  first, two thousand one; up to four million dollars for the period Janu-
     2  ary  first, two thousand two through December thirty-first, two thousand
     3  two; and up to five hundred thousand  dollars  for  the  period  January
     4  first,  two  thousand  three  through June thirtieth, two thousand three
     5  shall be allocated to the health insurance programs under the  New  York
     6  state  small  business  health insurance partnership program established
     7  pursuant to article nine-A of this chapter;
     8    (B) an amount not to exceed five  million  dollars  on  an  annualized
     9  basis  for  the  periods  January  first,  nineteen hundred ninety-seven
    10  through December thirty-first, nineteen hundred ninety-nine  and  up  to
    11  one  million  dollars for the period January first, two thousand through
    12  December thirty-first, two thousand  and  up  to  two  hundred  thousand
    13  dollars  for the period January first, two thousand one through December
    14  thirty-first, two thousand one shall be allocated to the voucher  insur-
    15  ance program;
    16    (C)]  an  amount  not  to  exceed six million dollars on an annualized
    17  basis for the  periods  January  first,  nineteen  hundred  ninety-seven
    18  through  December  thirty-first, nineteen hundred ninety-nine; up to six
    19  million dollars for the  period  January  first,  two  thousand  through
    20  December  thirty-first, two thousand; up to five million dollars for the
    21  period January first, two thousand one  through  December  thirty-first,
    22  two  thousand  one;  up  to  four million dollars for the period January
    23  first, two thousand two through December thirty-first, two thousand two;
    24  up to two million six hundred thousand dollars for  the  period  January
    25  first,  two  thousand  three through December thirty-first, two thousand
    26  three; up to one million three hundred thousand dollars for  the  period
    27  January  first,  two  thousand  four  through December thirty-first, two
    28  thousand four; and up  to  [one  million  three  hundred  thousand]  six
    29  hundred seventy thousand dollars for the period January first, two thou-
    30  sand  five  through June thirtieth, two thousand five shall be allocated
    31  to individual subsidy programs; and
    32    [(D)] (B) an amount not to exceed seven million dollars on an  annual-
    33  ized  basis  for  the  periods during the period January first, nineteen
    34  hundred ninety-seven through  December  thirty-first,  nineteen  hundred
    35  ninety-nine  and  four  million dollars annually for the periods January
    36  first, two thousand through December thirty-first, two thousand two, and
    37  [four] three million dollars for the period January first, two  thousand
    38  three  through  December  thirty-first,  two  thousand  three,  [and two
    39  million dollars for the period January first, two thousand four  through
    40  December  thirty-first,  two  thousand four, and two million dollars for
    41  the period January first, two thousand five through June thirtieth,  two
    42  thousand  five]  shall  be  allocated  to  the  catastrophic health care
    43  expense program.
    44    [(iii)] (ii) Notwithstanding any law to the contrary,  the  character-
    45  izations  of the New York state small business health insurance partner-
    46  ship program as in effect prior to June thirtieth, two  thousand  three,
    47  voucher  program  as in effect prior to December thirty-first, two thou-
    48  sand one,  individual  subsidy  program  and  catastrophic  health  care
    49  expense program, may, for the purposes of identifying matching funds for
    50  the  community health care conversion demonstration project described in
    51  a waiver of the provisions of title XIX of the federal  social  security
    52  act  granted to the state of New York and dated July fifteenth, nineteen
    53  hundred ninety-seven, may continue to be used to characterize the insur-
    54  ance programs in sections four thousand three hundred twenty-one-a, four
    55  thousand three hundred twenty-two-a, four thousand three  hundred  twen-
        S. 992                             50                            A. 1922
 
     1  ty-six  and  four  thousand  three hundred twenty-seven of the insurance
     2  law, which are successor programs to these programs.
     3    (c)  Up to seventy-eight million dollars shall be reserved and accumu-
     4  lated from year to year [by the commissioner]  from  the  pool  for  the
     5  period  January  first,  nineteen  hundred ninety-seven through December
     6  thirty-first, nineteen hundred  ninety-seven,  for  purposes  of  public
     7  health programs, up to seventy-six million dollars shall be reserved and
     8  accumulated  from  year to year [by the commissioner] from the pools for
     9  the periods January first, nineteen hundred ninety-eight through  Decem-
    10  ber thirty-first, nineteen hundred ninety-eight and January first, nine-
    11  teen hundred ninety-nine through December thirty-first, nineteen hundred
    12  ninety-nine,  up  to  eighty-four  million dollars shall be reserved and
    13  accumulated from year to year [by the commissioner] from the  pools  for
    14  the  period  January  first, two thousand through December thirty-first,
    15  two thousand, up to eighty-five million dollars shall  be  reserved  and
    16  accumulated  from  year to year [by the commissioner] from the pools for
    17  the period January first, two  thousand  one  through  December  thirty-
    18  first,  two  thousand  one,  up  to  eighty-six million dollars shall be
    19  reserved and accumulated from year to year [by  the  commissioner]  from
    20  the  pools for the period January first, two thousand two through Decem-
    21  ber thirty-first, two thousand two, up to eighty-six million one hundred
    22  fifty thousand dollars shall be reserved and accumulated  from  year  to
    23  year  [by the commissioner] from the pools for the period January first,
    24  two thousand three through December thirty-first, two thousand three, up
    25  to [eighty-six million one hundred fifty thousand]  fifty-eight  million
    26  seven  hundred eighty thousand dollars shall be reserved and accumulated
    27  from year to year [by the commissioner] from the pools  for  the  period
    28  January  first,  two  thousand  four  through December thirty-first, two
    29  thousand four, [and] up to [forty-four million one hundred  seventy-five
    30  thousand]  sixty-two million seven hundred thirty thousand dollars shall
    31  be reserved and accumulated from year to year [by the commissioner] from
    32  the pools for the period January first, two thousand five through  [June
    33  thirtieth]  December thirty-first, two thousand five, up to eighty-eight
    34  million three hundred fifty thousand dollars shall be reserved and accu-
    35  mulated from year to year from the pools for the period  January  first,
    36  two thousand six through December thirty-first, two thousand six, and up
    37  to  forty-four  million  one  hundred  eighty  thousand dollars shall be
    38  reserved and accumulated from year to year from the pools for the period
    39  January first, two thousand seven through June thirtieth,  two  thousand
    40  seven,  and  shall  be  available, including income from invested funds,
    41  for:
    42    (i) deposit by the commissioner, within amounts appropriated, and  the
    43  state  comptroller  is  hereby  authorized  and  directed to receive for
    44  deposit to, to the credit of the department of health's special  revenue
    45  fund  -  other,  hospital  based grants program account or any successor
    46  fund or account, for purposes of services and expenses related to gener-
    47  al hospital based grant programs, up to twenty-two million dollars annu-
    48  ally from the nineteen hundred ninety-seven pool, nineteen hundred nine-
    49  ty-eight pool, nineteen hundred ninety-nine pool, two thousand pool, two
    50  thousand one pool and two thousand two pool, respectively, up  to  twen-
    51  ty-two  million dollars from the two thousand three pool, up to [twenty-
    52  two million] ten million dollars for the period January first, two thou-
    53  sand four through December thirty-first, two thousand four, [and] up  to
    54  eleven  million  dollars for the period January first, two thousand five
    55  through [June thirtieth] December thirty-first, two thousand five, up to
    56  twenty-two million dollars for the period January  first,  two  thousand
        S. 992                             51                            A. 1922
 
     1  six  through  December  thirty-first, two thousand six, and up to eleven
     2  million dollars for the period January first, two thousand seven through
     3  June thirtieth, two thousand seven;
     4    (ii) deposit by the commissioner, within amounts appropriated, and the
     5  state  comptroller  is  hereby  authorized  and  directed to receive for
     6  deposit to, to the credit of the  emergency  medical  services  training
     7  account  established  in section ninety-seven-q of the state finance law
     8  or any successor fund or account, up to sixteen million  dollars  on  an
     9  annualized  basis  for the periods January first, nineteen hundred nine-
    10  ty-seven through December thirty-first, nineteen hundred ninety-nine, up
    11  to twenty million dollars for the period  January  first,  two  thousand
    12  through  December  thirty-first,  two thousand, up to twenty-one million
    13  dollars for the period January first, two thousand one through  December
    14  thirty-first, two thousand one, up to twenty-two million dollars for the
    15  period  January  first,  two thousand two through December thirty-first,
    16  two thousand two, up to twenty-two million five hundred  fifty  thousand
    17  dollars  for the period January first, two thousand three through Decem-
    18  ber thirty-first, two thousand three, up  to  [twenty-two  million  five
    19  hundred fifty thousand] nine million six hundred eighty thousand dollars
    20  for  the  period January first, two thousand four through December thir-
    21  ty-first, two thousand four, [and] up  to  twelve  million  one  hundred
    22  [twenty-five]  thirty thousand dollars for the period January first, two
    23  thousand five through [June thirtieth] December thirty-first, two  thou-
    24  sand  five, up to twenty-four million two hundred fifty thousand dollars
    25  for the period January first, two thousand six through December  thirty-
    26  first,  two  thousand  six,  and up to twelve million one hundred thirty
    27  thousand dollars for  the  period  January  first,  two  thousand  seven
    28  through June thirtieth, two thousand seven;
    29    (iii)  priority  distributions  by  the  commissioner up to thirty-two
    30  million dollars on an annualized basis  to  be  allocated  (A)  for  the
    31  purposes  established  pursuant to subparagraph (ii) of paragraph (f) of
    32  subdivision nineteen of section twenty-eight  hundred  seven-c  of  this
    33  article  as in effect on December thirty-first, nineteen hundred ninety-
    34  six and as may thereafter be amended,  up  to  fifteen  million  dollars
    35  annually  for  the  periods January first, two thousand through December
    36  thirty-first, two thousand [four] six, and  up  to  seven  million  five
    37  hundred  thousand  dollars  for  the  period January first, two thousand
    38  [five] seven through June thirtieth, two thousand [five] seven; and
    39    (B) pursuant to a memorandum of  understanding  entered  into  by  the
    40  commissioner,  the  majority leader of the senate and the speaker of the
    41  assembly, for the purposes outlined in such memorandum upon  the  recom-
    42  mendation  of  the  majority  leader  of the senate, up to eight million
    43  five hundred thousand dollars annually for the period January first, two
    44  thousand through December thirty-first, two thousand [four] six, and  up
    45  to  four million two hundred fifty thousand dollars for the period Janu-
    46  ary first, two thousand [five] seven through June thirtieth,  two  thou-
    47  sand [five] seven, and for the purposes outlined in such memorandum upon
    48  the  recommendation  of the speaker of the assembly, up to eight million
    49  five hundred thousand dollars annually for the  periods  January  first,
    50  two thousand through December thirty-first, two thousand [four] six, and
    51  up  to  four  million  two hundred fifty thousand dollars for the period
    52  January first, two thousand [five] seven  through  June  thirtieth,  two
    53  thousand [five] seven;
    54    (iv)  distributions  by  the  commissioner  related  to poison control
    55  centers pursuant to subdivision seven of section  twenty-five  hundred-d
    56  of  this  chapter,  up  to  five  million dollars for the period January
        S. 992                             52                            A. 1922
 
     1  first, nineteen  hundred  ninety-seven  through  December  thirty-first,
     2  nineteen hundred ninety-seven, up to three million dollars on an annual-
     3  ized  basis  for  the  periods during the period January first, nineteen
     4  hundred  ninety-eight  through  December  thirty-first, nineteen hundred
     5  ninety-nine, up to five million dollars annually for the periods January
     6  first, two thousand through December thirty-first, two thousand two,  up
     7  to  four  million  six hundred thousand dollars annually for the periods
     8  January first, two thousand three  through  December  thirty-first,  two
     9  thousand  four,  [and]  up  to [two million five hundred fifty thousand]
    10  five million one hundred thousand dollars for the period January  first,
    11  two  thousand  five  through [June thirtieth] December thirty-first, two
    12  thousand [five] six annually, and up to two million five  hundred  fifty
    13  thousand  dollars  for  the  period  January  first,  two thousand seven
    14  through June thirtieth, two thousand seven; and
    15    (v) deposit by the commissioner, within amounts appropriated, and  the
    16  state  comptroller  is  hereby  authorized  and  directed to receive for
    17  deposit to, to the credit of the department of health's special  revenue
    18  fund  -  other,  miscellaneous  special  revenue fund - 339 maternal and
    19  child HIV services  account  or  any  successor  fund  or  account,  for
    20  purposes  of a special program for HIV services for infants and pregnant
    21  women pursuant to section seventy-one of chapter seven  hundred  thirty-
    22  one  of  the  laws of nineteen hundred ninety-three, amending the public
    23  health law and other laws relating to reimbursement, delivery and  capi-
    24  tal  costs  of  ambulatory  health  care services and inpatient hospital
    25  services, up to five million dollars annually for  the  periods  January
    26  first,  two thousand through December thirty-first, two thousand two, up
    27  to five million dollars for the period January first, two thousand three
    28  through December thirty-first, two thousand three, up to [five  million]
    29  two  million five hundred thousand dollars for the period January first,
    30  two thousand four through  December  thirty-first,  two  thousand  four,
    31  [and]  up  to  two  million five hundred thousand dollars for the period
    32  January first, two thousand five through [June thirtieth] December thir-
    33  ty-first, two thousand five, [plus such amounts as may be available from
    34  prior year pool reserves] up to five  million  dollars  for  the  period
    35  January first, two thousand six through December thirty-first, two thou-
    36  sand  six,  and  up to two million five hundred thousand dollars for the
    37  period January first, two thousand seven  through  June  thirtieth,  two
    38  thousand seven.
    39    (d)  (i)  An  amount  of up to twenty million dollars annually for the
    40  period January first, two thousand through  December  thirty-first,  two
    41  thousand  [four] six, and up to ten million dollars for the period Janu-
    42  ary first, two thousand [five] seven through June thirtieth,  two  thou-
    43  sand  [five]  seven,  shall  be transferred [by the commissioner] to the
    44  health facility restructuring pool established pursuant to section twen-
    45  ty-eight hundred fifteen of this article;
    46    (ii) provided, however, amounts transferred pursuant  to  subparagraph
    47  (i)  of this paragraph may be reduced [by the commissioner] in an amount
    48  to be approved by the director of  the  budget  to  reflect  the  amount
    49  received from the federal government under the state's 1115 waiver which
    50  is  directed  under  its  terms  and  conditions  to the health facility
    51  restructuring program.
    52    (e) Funds shall be reserved and accumulated from year to year [by  the
    53  commissioner]  and  shall  be available,  including income from invested
    54  funds, for purposes of distributions to  organizations  to  support  the
    55  health  workforce  retraining  program  established  pursuant to section
    56  twenty-eight hundred seven-g of this  article from the respective health
        S. 992                             53                            A. 1922
 
     1  care initiatives pools established for  the  following  periods  in  the
     2  following  amounts from the pools during the period January first, nine-
     3  teen  hundred  ninety-seven  through  December  thirty-first,   nineteen
     4  hundred ninety-nine, up to fifty million dollars on an annualized basis,
     5  up  to thirty million dollars for the period January first, two thousand
     6  through December thirty-first, two thousand, up to forty million dollars
     7  for the period January first, two thousand one through December  thirty-
     8  first,  two  thousand  one,  up  to fifty million dollars for the period
     9  January first, two thousand two through December thirty-first, two thou-
    10  sand two, up to forty-one million one hundred fifty thousand dollars for
    11  the period January first, two thousand three  through  December  thirty-
    12  first,  two  thousand  three,  up to forty-one million one hundred fifty
    13  thousand dollars for the period January first, two thousand four through
    14  December thirty-first, two  thousand  four,  [and]  up  to  [twenty-nine
    15  million  one  hundred eighty thousand] fifty-eight million three hundred
    16  sixty thousand dollars for the period January first, two  thousand  five
    17  through  [June thirtieth] December thirty-first, two thousand [five] six
    18  annually, and up to twenty-nine  million  one  hundred  eighty  thousand
    19  dollars  for  the  period January first, two thousand seven through June
    20  thirtieth, two thousand seven, less the amount of  funds  available  for
    21  allocations  for  rate  adjustments  for workforce training programs for
    22  payments by state governmental agencies for inpatient hospital services.
    23    (f) Funds shall be accumulated and transferred from as follows:
    24    (i) from the pool for the period January first, nineteen hundred nine-
    25  ty-seven through December thirty-first, nineteen  hundred  ninety-seven,
    26  (A)  thirty-four  million   six hundred thousand dollars shall be trans-
    27  ferred to funds reserved and accumulated pursuant to  paragraph  (b)  of
    28  subdivision  nineteen  of  section  twenty-eight hundred seven-c of this
    29  article, and (B) eighty-two million dollars  shall  be  transferred  and
    30  deposited  and  credited to the credit of the state general fund medical
    31  assistance local assistance account;
    32    (ii) from the pool for the  period  January  first,  nineteen  hundred
    33  ninety-eight  through  December  thirty-first,  nineteen hundred ninety-
    34  eight, eighty-two million dollars shall be transferred and deposited and
    35  credited to the credit of the  state  general  fund  medical  assistance
    36  local assistance account;
    37    (iii)  from  the  pool  for the period January first, nineteen hundred
    38  ninety-nine through December thirty-first, nineteen hundred ninety-nine,
    39  eighty-two million dollars shall be transferred and deposited and  cred-
    40  ited  to  the  credit of the state general fund medical assistance local
    41  assistance account;
    42    (iv) from the pool for the period January first, two thousand  through
    43  December  thirty-first,  two  thousand  four, eighty-two million dollars
    44  annually, and for the period January first, two  thousand  five  through
    45  [June  thirtieth]  December  thirty-first, two thousand five, [forty-one
    46  million] sixty-nine million one hundred thousand dollars,  and  for  the
    47  period  January  first,  two thousand six through December thirty-first,
    48  two thousand six, eighty-two million dollars, and for the period January
    49  first, two thousand seven through June thirtieth,  two  thousand  seven,
    50  forty-one  million  dollars  shall be deposited by the commissioner, and
    51  the state comptroller is hereby authorized and directed to  receive  for
    52  deposit  to  the  credit of the state special revenue fund - other, HCRA
    53  transfer fund, medical assistance  account  or  any  successor  fund  or
    54  account.
    55    (g) Funds shall be transferred [by the commissioner] to primary health
    56  care services pools created by the commissioner, and shall be available,
        S. 992                             54                            A. 1922
 
     1  including  income  from  invested funds, for distributions in accordance
     2  with former section twenty-eight hundred seven-bb of this  article  from
     3  the  respective  health care initiatives pools for the following periods
     4  in the following percentage amounts of funds remaining after allocations
     5  in accordance with paragraphs (a) through (f) of this subdivision:
     6    (i) from the pool for the period January first, nineteen hundred nine-
     7  ty-seven  through  December thirty-first, nineteen hundred ninety-seven,
     8  fifteen and eighty-seven-hundredths percent;
     9    (ii) from the pool for the  period  January  first,  nineteen  hundred
    10  ninety-eight  through  December  thirty-first,  nineteen hundred ninety-
    11  eight, fifteen and eighty-seven-hundredths percent; and
    12    (iii) from the pool for the period  January  first,  nineteen  hundred
    13  ninety-nine through December thirty-first, nineteen hundred ninety-nine,
    14  sixteen and thirteen-hundredths percent.
    15    (h)  [Funds shall be reserved and accumulated from year to year by the
    16  commissioner and shall be  available,  including  income  from  invested
    17  funds,  for  purposes of primary care education and training pursuant to
    18  article nine of this chapter from the respective health care initiatives
    19  pools established for the following periods in the following  percentage
    20  amounts  of  funds  remaining after allocations in accordance with para-
    21  graphs (a) through (f) of this subdivision and shall  be  available  for
    22  distributions as follows:
    23    (i) funds shall be reserved and accumulated:
    24    (A) from the pool for the period January first, nineteen hundred nine-
    25  ty-seven  through  December thirty-first, nineteen hundred ninety-seven,
    26  six and thirty-five-hundredths percent;
    27    (B) from the pool for the period January first, nineteen hundred nine-
    28  ty-eight through December thirty-first, nineteen  hundred  ninety-eight,
    29  six and thirty-five-hundredths percent; and
    30    (C) from the pool for the period January first, nineteen hundred nine-
    31  ty-nine through December thirty-first, nineteen hundred ninety-nine, six
    32  and forty-five-hundredths percent;
    33    (ii)  funds shall be available for distributions including income from
    34  invested funds as follows:
    35    (A) for purposes of the primary care physician loan repayment  program
    36  in  accordance  with  section  nine hundred three of this chapter, up to
    37  five million dollars on an annualized basis;
    38    (B) for purposes of the primary care practitioner scholarship  program
    39  in  accordance with section nine hundred four of this chapter, up to two
    40  million dollars on an annualized basis;
    41    (C) for purposes of minority participation in medical education grants
    42  in accordance with section nine hundred six of this chapter, up  to  one
    43  million dollars on an annualized basis; and
    44    (D)  provided, however, that the commissioner may reallocate any funds
    45  remaining or unallocated for distributions for the primary care  practi-
    46  tioner  scholarship program in accordance with section nine hundred four
    47  of this chapter.
    48    (i)] Funds shall be reserved and accumulated from year to year [by the
    49  commissioner] and shall be available,  including  income  from  invested
    50  funds,  for distributions in accordance with section twenty-nine hundred
    51  fifty-two and section twenty-nine hundred fifty-eight  of  this  chapter
    52  for  rural health care delivery development and rural health care access
    53  development, respectively, from the respective health  care  initiatives
    54  pools  for  the following periods in the following percentage amounts of
    55  funds remaining after allocations  in  accordance  with  paragraphs  (a)
        S. 992                             55                            A. 1922
 
     1  through  (f)  of  this subdivision, and for periods on and after January
     2  first, two thousand, in the following amounts:
     3    (i) from the pool for the period January first, nineteen hundred nine-
     4  ty-seven  through  December thirty-first, nineteen hundred ninety-seven,
     5  thirteen and forty-nine-hundredths percent;
     6    (ii) from the pool for the  period  January  first,  nineteen  hundred
     7  ninety-eight  through  December  thirty-first,  nineteen hundred ninety-
     8  eight, thirteen and forty-nine-hundredths percent;
     9    (iii) from the pool for the period  January  first,  nineteen  hundred
    10  ninety-nine through December thirty-first, nineteen hundred ninety-nine,
    11  thirteen and seventy-one-hundredths percent;
    12    (iv) from the pool for the periods January first, two thousand through
    13  December thirty-first, two thousand two, seventeen million dollars annu-
    14  ally,  and  for  the  period  January  first, two thousand three through
    15  December thirty-first, two thousand three, up to fifteen  million  eight
    16  hundred fifty thousand dollars;
    17    (v)  from  the  pool  for  the period January first, two thousand four
    18  through December thirty-first, two thousand four, up to fifteen  million
    19  eight  hundred fifty thousand dollars, and for the period January first,
    20  two thousand five through [June thirtieth]  December  thirty-first,  two
    21  thousand  five, up to [eight million five hundred seventy-five thousand]
    22  nineteen million two hundred thousand dollars, and for the period  Janu-
    23  ary  first, two thousand six through December thirty-first, two thousand
    24  six, up to nineteen million two hundred thousand dollars,  and  for  the
    25  period  January  first,  two  thousand seven through June thirtieth, two
    26  thousand seven, up to eight million six hundred thousand dollars; and
    27    (vi) if funds accumulated for distributions pursuant to sections twen-
    28  ty-nine hundred fifty-two and twenty-nine hundred  fifty-eight  of  this
    29  chapter  are insufficient to meet the funding amounts established pursu-
    30  ant to subparagraphs (iv) and (v) of this paragraph, the commissioner or
    31  the state comptroller, as applicable, is authorized  to  transfer  funds
    32  accumulated  pursuant  to  section  twenty-eight hundred seven-v of this
    33  article to the health care initiatives pool to fully  fund  the  amounts
    34  specified  in subparagraph (iv) of this paragraph; provided however, the
    35  provisions of this subparagraph shall only be effective contingent  upon
    36  meeting all funding amounts established pursuant to paragraphs (a), (b),
    37  (c),  (d),  (e),  (f),  (l), (m), (n), (q) and (r) of subdivision one of
    38  section twenty-eight hundred seven-v of this article, and paragraph  (a)
    39  of this subdivision.
    40    [(j)]  (i)  Funds  shall be reserved and accumulated from year to year
    41  and shall be  available,  including  income  from  invested  funds,  for
    42  purposes  of distributions related to health information and health care
    43  quality improvement pursuant  to  former  section  twenty-eight  hundred
    44  seven-n  of  this  article  from  the respective health care initiatives
    45  pools established for the following periods in the following  percentage
    46  amounts  of  funds  remaining after allocations in accordance with para-
    47  graphs (a) through (f) of this subdivision:
    48    (i) from the pool for the period January first, nineteen hundred nine-
    49  ty-seven through December thirty-first, nineteen  hundred  ninety-seven,
    50  six and thirty-five-hundredths percent;
    51    (ii)  from  the  pool  for  the period January first, nineteen hundred
    52  ninety-eight through December  thirty-first,  nineteen  hundred  ninety-
    53  eight, six and thirty-five-hundredths percent; and
    54    (iii)  from  the  pool  for the period January first, nineteen hundred
    55  ninety-nine through December thirty-first, nineteen hundred ninety-nine,
    56  six and forty-five-hundredths percent.
        S. 992                             56                            A. 1922
 
     1    [(k)] (j) Funds shall be reserved and accumulated from  year  to  year
     2  and shall be available, including income  from invested funds, for allo-
     3  cations  and  distributions  in  accordance  with  section  twenty-eight
     4  hundred seven-p of this article  for  diagnostic  and  treatment  center
     5  uncompensated care from the respective health care initiatives pools for
     6  the  following  periods  in  the  following percentage  amounts of funds
     7  remaining after allocations in accordance with  paragraphs  (a)  through
     8  (f) of this subdivision, and for periods on and after January first, two
     9  thousand, in the following amounts:
    10    (i) from the pool for the period January first, nineteen hundred nine-
    11  ty-seven  through  December thirty-first, nineteen hundred ninety-seven,
    12  thirty-eight and one-tenth percent;
    13    (ii) from the pool for the  period  January  first,  nineteen  hundred
    14  ninety-eight  through  December  thirty-first,  nineteen hundred ninety-
    15  eight, thirty-eight and one-tenth percent;
    16    (iii) from the pool for the period  January  first,  nineteen  hundred
    17  ninety-nine through December thirty-first, nineteen hundred ninety-nine,
    18  thirty-eight and seventy-one-hundredths percent;
    19    (iv) from the pool for the periods January first, two thousand through
    20  December  thirty-first,  two  thousand  two, forty-eight million dollars
    21  annually, and for the period January first, two thousand  three  through
    22  June thirtieth, two thousand three, twenty-four million dollars;
    23    (v)  from  the  pool  for  the  period  July first, two thousand three
    24  through December thirty-first, two thousand three,  up  to  six  million
    25  dollars,  for the period January first, two thousand four through Decem-
    26  ber thirty-first, two thousand [four] six, up to twelve million  dollars
    27  annually,  and  for  the period January first, two thousand [five] seven
    28  through June thirtieth, two thousand [five] seven,  up  to  six  million
    29  dollars;  provided that if federal financial participation is not avail-
    30  able for rate adjustments made pursuant to section twenty-eight  hundred
    31  seven-p of this article then the foregoing amounts shall be increased to
    32  the  following:  for  the  period July first, two thousand three through
    33  December thirty-first, two thousand three, twenty-four million  dollars,
    34  for  the  period January first, two thousand four through December thir-
    35  ty-first, two thousand [four] six, forty-eight million dollars annually,
    36  and for the period January first, two thousand [five] seven through June
    37  thirtieth, two thousand [five] seven, twenty-four million dollars;
    38    (vi) if funds accumulated for distributions pursuant to section  twen-
    39  ty-eight  hundred  seven-p  of this article are insufficient to meet the
    40  funding amounts established pursuant to subparagraph (iv) of this  para-
    41  graph,  the  commissioner  or  the  state comptroller, as applicable, is
    42  authorized to transfer funds accumulated  pursuant  to  section  twenty-
    43  eight  hundred  seven-v of this article into the health care initiatives
    44  pool to fully fund the amounts  established  pursuant  to  subparagraphs
    45  (iv) and (v) of this paragraph; provided however, the provisions of this
    46  subparagraph shall only be effective contingent upon meeting all funding
    47  amounts established pursuant to paragraphs (a), (b), (c), (d), (e), (f),
    48  (l),  (m),  (n),  (q) and (r) of subdivision one of section twenty-eight
    49  hundred seven-v of this article, and paragraph (a) of this  subdivision;
    50  and
    51    (vii)  funds  reserved  and accumulated pursuant to this paragraph for
    52  periods on and after July first, two thousand three, shall be  deposited
    53  by  the  commissioner,  within amounts appropriated, and the state comp-
    54  troller is hereby authorized and directed to receive for deposit to  the
    55  credit  of  the state special revenue funds - other, HCRA transfer fund,
    56  medical assistance  account  or  any  successor  fund  or  account,  for
        S. 992                             57                            A. 1922
 
     1  purposes of funding the state share of rate adjustments made pursuant to
     2  section twenty-eight hundred seven-p of this article, provided, however,
     3  that  in  the event federal financial participation is not available for
     4  rate  adjustments  made  pursuant to paragraph (b) of subdivision one of
     5  section twenty-eight hundred seven-p of this  article,  funds  shall  be
     6  distributed  pursuant  to  paragraph  (a)  of subdivision one of section
     7  twenty-eight hundred seven-p of this article from the respective  health
     8  care  initiatives  pools  [and  not  be transferred and deposited to the
     9  credit of the state special revenue funds - other, HCRA  transfer  fund,
    10  medical assistance account].
    11    [(l)] (k) Funds shall be reserved and accumulated from year to year by
    12  the  commissioner and shall be available, including income from invested
    13  funds, for transfer to and allocation  for services and expenses for the
    14  payment of benefits to recipients of  drugs under the AIDS drug  assist-
    15  ance  program  (ADAP)  -  HIV  uninsured care program as administered by
    16  Health Research Incorporated from the  respective   health  care  initi-
    17  atives  pools  established  for  the  following periods in the following
    18  percentage amounts of funds remaining after  allocations  in  accordance
    19  with  paragraphs (a) through (f) of this subdivision, and for periods on
    20  and after January first, two thousand, in the following amounts:
    21    (i) from the pool for the period January first, nineteen hundred nine-
    22  ty-seven through December thirty-first, nineteen  hundred  ninety-seven,
    23  nine and fifty-two-hundredths percent;
    24    (ii)  from  the  pool  for  the period January first, nineteen hundred
    25  ninety-eight through December  thirty-first,  nineteen  hundred  ninety-
    26  eight, nine and fifty-two-hundredths percent;
    27    (iii)  from  the  pool  for the period January first, nineteen hundred
    28  ninety-nine and December  thirty-first,  nineteen  hundred  ninety-nine,
    29  nine and sixty-eight-hundredths percent;
    30    (iv) from the pool for the periods January first, two thousand through
    31  December  thirty-first,  two  thousand two, up to twelve million dollars
    32  annually, and for the period January first, two thousand  three  through
    33  December  thirty-first, two thousand three, up to forty million dollars;
    34  and
    35    (v) from the pool for the periods January  first,  two  thousand  four
    36  through  December  thirty-first,  two  thousand  four,  up  to fifty-six
    37  million dollars, [and] for the period January first, two  thousand  five
    38  through [June thirtieth] December thirty-first, two thousand [five] six,
    39  up to [thirty million] sixty million dollars annually, and for the peri-
    40  od  January  first, two thousand seven through June thirtieth, two thou-
    41  sand seven, up to thirty million dollars.
    42    [(m)] (l) Funds shall be reserved and accumulated from  year  to  year
    43  [by  the  commissioner]  and  shall be available,  including income from
    44  invested funds, for purposes of distributions pursuant to section  twen-
    45  ty-eight  hundred  seven-r  of  this article for cancer related services
    46  from the respective health care initiatives pools  established  for  the
    47  following periods in the following percentage amounts of funds remaining
    48  after  allocations in accordance with paragraphs (a) through (f) of this
    49  subdivision, and for periods on and after January first,  two  thousand,
    50  in the following amounts:
    51    (i) from the pool for the period January first, nineteen hundred nine-
    52  ty-seven  through  December thirty-first, nineteen hundred ninety-seven,
    53  seven and ninety-four-hundredths percent;
    54    (ii) from the pool for the  period  January  first,  nineteen  hundred
    55  ninety-eight  through  December  thirty-first,  nineteen hundred ninety-
    56  eight, seven and ninety-four-hundredths percent;
        S. 992                             58                            A. 1922
 
     1    (iii) from the pool for the period  January  first,  nineteen  hundred
     2  ninety-nine and December thirty-first, nineteen hundred ninety-nine, six
     3  and forty-five-hundredths percent;
     4    (iv)  from the pool for the period January first, two thousand through
     5  December thirty-first, two thousand two, up to ten million dollars on an
     6  annual basis;
     7    (v) from the pool for the period January  first,  two  thousand  three
     8  through  December  thirty-first,  two thousand four, up to eight million
     9  nine hundred fifty thousand dollars on an annual basis; and
    10    (vi) from the pool for the period January  first,  two  thousand  five
    11  through [June thirtieth] December thirty-first, two thousand [five] six,
    12  up to [five million twenty-five thousand] ten million five hundred thou-
    13  sand  dollars  on an annual basis, and for the period January first, two
    14  thousand seven through June thirtieth, two thousand seven,  up  to  five
    15  million two hundred fifty thousand dollars.
    16    2.  In  the  event residual funds are available after allocations have
    17  been made pursuant to this section, such  funds  may  be  allocated  and
    18  distributed  in a manner determined by the commissioner for purposes set
    19  forth in subdivision one of this section, section  twenty-eight  hundred
    20  seven-k or section twenty-eight hundred seven-m of this article.
    21    3.  Notwithstanding  any  inconsistent provision of law, rule or regu-
    22  lation, any funds accumulated  in  the  health  care  initiatives  pools
    23  pursuant  to  paragraph  (b) of subdivision nine of section twenty-eight
    24  hundred seven-j of this article, as a result of surcharges,  assessments
    25  or  other obligations during the periods January first, nineteen hundred
    26  ninety-seven through December  thirty-first,  nineteen  hundred  ninety-
    27  nine, which are unused or uncommitted for distributions pursuant to this
    28  section  shall  be  reserved  and  accumulated  from year to year by the
    29  commissioner and, within amounts appropriated, transferred and deposited
    30  into the special revenue funds - other,  miscellaneous  special  revenue
    31  fund  -  339,  child  health  insurance account or any successor fund or
    32  account, for purposes of distributions to  implement  the  child  health
    33  insurance  program  established pursuant to sections twenty-five hundred
    34  ten and twenty-five hundred eleven of this chapter for  periods  on  and
    35  after January first, two thousand one; provided, however, funds reserved
    36  and  accumulated  for  priority  distributions  pursuant to subparagraph
    37  (iii) of paragraph (c) of subdivision one of this section shall  not  be
    38  transferred  and  deposited  into such account pursuant to this subdivi-
    39  sion; [and provided further, however, the primary health  care  services
    40  grant  program pursuant to section twenty-eight hundred seven-bb of this
    41  article, as in effect prior to January first,  two  thousand,  shall  be
    42  funded up to allocated amounts set forth in paragraph (g) of subdivision
    43  one  of  this  section  less  amounts  set  aside and distributed by the
    44  commissioner in accordance with section thirty-two-c of part F of  chap-
    45  ter four hundred twelve of the laws of nineteen hundred ninety-nine, and
    46  shall  not  be  transferred  and deposited into such account pursuant to
    47  this subdivision;] and provided further, however,  that  any  unused  or
    48  uncommitted  pool  funds accumulated and allocated pursuant to paragraph
    49  (j) of subdivision one of this section shall be distributed for purposes
    50  of the health information and quality improvement act of 2000.
    51    4. Revenue from distributions pursuant to this section  shall  not  be
    52  included  in  gross  revenue  received  for  purposes of the assessments
    53  pursuant to subdivision eighteen of section twenty-eight hundred seven-c
    54  of this article, subject to the provisions of paragraph (e) of  subdivi-
    55  sion  eighteen  of section twenty-eight hundred seven-c of this article,
    56  and shall not be included in gross revenue received for purposes of  the
        S. 992                             59                            A. 1922
 
     1  assessments  pursuant  to  section  twenty-eight hundred seven-d of this
     2  article, subject to the provisions  of  subdivision  twelve  of  section
     3  twenty-eight hundred seven-d of this article.
     4    5. Notwithstanding any inconsistent provision of law, the commissioner
     5  may  borrow from pool reserves from pools established or funded pursuant
     6  to sections twenty-eight hundred seven-c, twenty-eight hundred  seven-j,
     7  twenty-eight hundred seven-k, twenty-eight hundred seven-m, twenty-eight
     8  hundred  seven-s  and  twenty-eight  hundred seven-t of this article and
     9  this section, and if not sufficient from pool funds  collected  pursuant
    10  to  section  twenty-eight  hundred seven-j of this article and allocated
    11  for distributions pursuant to  paragraph  (b)  of  subdivision  nine  of
    12  section  twenty-eight  hundred  seven-j  of this article, or pursuant to
    13  sections twenty-eight hundred seven-s and twenty-eight  hundred  seven-t
    14  of  this article and allocated  for distributions pursuant to paragraphs
    15  (a) and (c) of subdivision seven of section twenty-eight hundred seven-s
    16  of this article, such funds as shall be necessary,  not  to  exceed  the
    17  amount  projected  to be available pursuant to paragraph (b) of subdivi-
    18  sion nine of section twenty-eight hundred seven-j of  this  article,  or
    19  paragraphs  (a)  and  (c)  of  subdivision seven of section twenty-eight
    20  hundred seven-s of this article, for distributions  in  accordance  with
    21  any of paragraphs (a) through (j) of subdivision one of this section for
    22  a  period  and shall refund such moneys when pool funds become available
    23  pursuant to paragraph (b) of subdivision nine  of  section  twenty-eight
    24  hundred  seven-j  and  paragraphs  (a)  and (c) of subdivision  seven of
    25  section twenty-eight hundred seven-s of this article  for  such  purpose
    26  for such period.
    27    § 20. Title 11-A of article 5 of the social services law is REPEALED.
    28    §  21.  Notwithstanding  the  repeal of title 11-A of article 5 of the
    29  social services law, and within the amounts  specifically  allocated  to
    30  the catastrophic health care expense program prior to the effective date
    31  of  such  repeal, participating social services districts are authorized
    32  to provide reimbursement to families that, prior to such effective date,
    33  incur health care expenses eligible for reimbursement under the  program
    34  and  provided  further  that  districts are authorized to expend amounts
    35  within such allocation necessary to administer such reimbursement.
    36    § 21-a. The opening paragraph of section 2952  of  the  public  health
    37  law,  as  amended by section 18 of part TT of chapter 686 of the laws of
    38  2003, is amended to read as follows:
    39    To the extent of funds available therefor, the sum  of  seven  million
    40  dollars  shall annually be available for periods prior to January first,
    41  two thousand three, and up to six million five hundred  thirty  thousand
    42  dollars  annually  for  the  period  January  first,  two thousand three
    43  through December thirty-first, two thousand four,  [and]  up  to  [three
    44  million  five hundred thirty-one thousand] seven million sixty-two thou-
    45  sand dollars for the period January first,  two  thousand  five  through
    46  [June  thirtieth] December thirty-first, two thousand [five] six annual-
    47  ly, and up to three million five hundred thirty-one thousand dollars for
    48  the period January first, two thousand seven through June thirtieth, two
    49  thousand seven, shall be available to the commissioner from  funds  made
    50  available pursuant to section twenty-eight hundred seven-l of this chap-
    51  ter for grants pursuant to this section.
    52    §  22.  Subdivision  1  of  section  2958 of the public health law, as
    53  amended by section 19 of part H of chapter 686 of the laws of  2003,  is
    54  amended to read as follows:
    55    1.  To  the extent of funds available therefor, the sum of ten million
    56  dollars shall annually be made available for periods  prior  to  January
        S. 992                             60                            A. 1922
 
     1  first,  two  thousand three, and up to nine million three hundred twenty
     2  thousand dollars for  the  period  January  first,  two  thousand  three
     3  through  December  thirty-first,  two thousand three, up to nine million
     4  three  hundred twenty thousand dollars for the period January first, two
     5  thousand four through December thirty-first, two thousand four, [and] up
     6  to [five million forty-four thousand] twelve million eighty-eight  thou-
     7  sand  dollars  for  the  period January first, two thousand five through
     8  [June thirtieth,] December thirty-first, two thousand five, up to twelve
     9  million eighty-eight thousand dollars for the period January first,  two
    10  thousand  six through December thirty-first, two thousand six, and up to
    11  five million five hundred forty-four thousand  dollars  for  the  period
    12  January  first,  two thousand seven through June thirtieth, two thousand
    13  seven, shall be available to the commissioner  from  funds  pursuant  to
    14  section  twenty-eight hundred seven-l of this chapter to provide assist-
    15  ance to general hospitals classified as a rural hospital for purposes of
    16  determining payment for inpatient services provided to beneficiaries  of
    17  title XVIII of the federal social security act (Medicare) or under state
    18  regulations, in recognition of the unique costs incurred by these facil-
    19  ities to provide hospital services in remote or sparsely populated areas
    20  pursuant to subdivision two of this section.
    21    §  23.    Subdivision  2  of section 2958 of the public health law, as
    22  amended by chapter 1 of the laws of 1999, is amended to read as follows:
    23    2. a. [The commissioner shall provide assistance to all  rural  hospi-
    24  tals  as defined in this section by distributing all amounts made avail-
    25  able pursuant to section twenty-eight hundred seven-l of this chapter.
    26    b.] For the purposes  of  this  subdivision,  the  commissioner  shall
    27  devise  a  distribution methodology that takes into account the need for
    28  rural hospitals to improve operational efficiencies, reduce  the  dupli-
    29  cation of services, and develop affiliations with community based health
    30  care  providers  and  which recognizes whether a hospital is a federally
    31  designated sole community hospital, rural referral center, rural  hospi-
    32  tal,  state designated rural hospital, or a hospital that is at substan-
    33  tial financial risk of failure and whose service area is threatened with
    34  reduced access to essential health services. In no event shall the  size
    35  of  the  rural hospital be the sole contributing factor in such distrib-
    36  ution methodology. Such methodology shall provide assistance  at  gradu-
    37  ated  levels  from  highest  to lowest, in accordance with the following
    38  criteria:
    39    (i) The hospital shall be at substantial risk  of  financial  failure,
    40  using a combination of generally accepted standard measures of financial
    41  viability and which is:
    42    A.  a federally designated sole community hospital or a rural referral
    43  center and is both a federally designated rural hospital and is  classi-
    44  fied as a state rural hospital;
    45    B.  a federally designated sole community hospital or a rural referral
    46  center and is a federally designated rural hospital;
    47    C. both a federally designated rural hospital and is classified  as  a
    48  state  rural  hospital,  but is not a sole community hospital or a rural
    49  referral center;
    50    D. either a federally designated rural hospital or is classified as  a
    51  state rural hospital; or
    52    E.  the hospital is either a federally defined sole community hospital
    53  or rural referral center.
    54    (ii) The hospital is a sole community hospital  or  a  rural  referral
    55  center  and is both a federally designated rural hospital and is classi-
    56  fied as a state rural hospital;
        S. 992                             61                            A. 1922
 
     1    (iii) The hospital is a sole community hospital or  a  rural  referral
     2  center  and is a federally designated rural hospital, but is not classi-
     3  fied as a state rural hospital;
     4    (iv) The hospital is both a federally designated rural hospital and is
     5  classified  as a state rural hospital but is not a sole community hospi-
     6  tal or a rural referral center;
     7    (v) The hospital is either a federally designated rural hospital or is
     8  classified as a state rural hospital; or
     9    (vi) The hospital is either a federally defined sole community  hospi-
    10  tal or a rural referral center.
    11    [c.]  b. The commissioner may include [in regulation a factor] factors
    12  to enhance the distribution to those hospitals that have  taken  actions
    13  in  accordance  with  the  goals  specified in paragraph [b] (a) of this
    14  subdivision [to be applied effective January first, two  thousand  one],
    15  except,  however,  in  no  event  shall the distribution of the funds be
    16  delayed because of the development of the [factor] factors  pursuant  to
    17  this paragraph.
    18    §  24.  Paragraph (b) of subdivision 1 of section 76 of chapter 731 of
    19  the laws of 1993 amending the public health law and other laws  relating
    20  to  reimbursement,  delivery and capital costs of ambulatory health care
    21  services and inpatient hospital services, as amended by  section  29  of
    22  part  A3  of  chapter  62  of  the  laws  of 2003, is amended to read as
    23  follows:
    24    (b) sections fifteen through nineteen, subdivision 3 of section 2807-e
    25  of the public health law as added by section twenty  of  this  act,  and
    26  section seventy-four of this act shall expire on [June 30, 2005] July 1,
    27  2007;
    28    §  25.  Paragraph (a) of subdivision 12 of section 367-b of the social
    29  services law, as amended by section 30 of part A3 of chapter 62  of  the
    30  laws of 2003, is amended to read as follows:
    31    (a) For the purpose of regulating cash flow for general hospitals, the
    32  department  shall develop and implement a payment methodology to provide
    33  for timely payments for inpatient hospital services  eligible  for  case
    34  based  payments per discharge based on diagnosis-related groups provided
    35  during the period January first, nineteen hundred  eighty-eight  through
    36  June thirtieth, two thousand [five] seven, by such hospitals which elect
    37  to participate in the system.
    38    §  26. Paragraph (i) of subdivision (b) of section 1 of chapter 520 of
    39  the laws of 1978, relating to providing for a  comprehensive  survey  of
    40  health  care  financing,  education  and illness prevention and creating
    41  councils for the conduct thereof, as amended by section 31 of part A3 of
    42  chapter 62 of the laws of 2003, is amended to read as follows:
    43    (i)  oversight and evaluation of the  inpatient  financing  system  in
    44  place for 1988 through June 30, [2005] 2007, and the appropriateness and
    45  effectiveness of the bad debt and charity care financing provisions;
    46    § 27. Section 2 of chapter 600 of the laws of 1986 amending the public
    47  health  law  relating to the development of pilot reimbursement programs
    48  for ambulatory care services, as amended by section 32  of  part  A3  of
    49  chapter 62 of the laws of 2003, is amended to read as follows:
    50    §  2.  This  act  shall  take effect immediately, except that this act
    51  shall expire and be of no further force and effect on  and  after  [June
    52  30,  2005]  July  1,  2007;  provided, however, that the commissioner of
    53  health shall submit a report to the governor and the legislature detail-
    54  ing  the  objective,  impact,  design  and  computation  of  any   pilot
    55  reimbursement  program  established  pursuant  to this act, on or before
    56  March 31, 1994 and annually thereafter. Such  report  shall  include  an
        S. 992                             62                            A. 1922
 
     1  assessment  of the financial impact of such payment system on providers,
     2  as well as the impact of such system on access to care.
     3    §  28.  Section  11  of  chapter  753 of the laws of 1989 amending the
     4  public health law and other laws relating to general hospital reimburse-
     5  ment for inpatient and ambulatory surgery, as amended by section  33  of
     6  part  A3  of  chapter  62  of  the  laws  of 2003, is amended to read as
     7  follows:
     8    § 11. This act shall take effect immediately; provided, however,  that
     9  section one shall expire and have no further force or effect on or after
    10  [June 30, 2005] July 1, 2007, section two of this act shall be deemed to
    11  have  been  in  full  force  and  effect  on  and after January 1, 1988,
    12  sections three through eight of this act shall be deemed to have been in
    13  full force and effect on and after January 1, 1989, and that the  amend-
    14  ments  made  to  section 2807-c of the public health law by sections two
    15  through six of this act shall expire on the same date  as  such  section
    16  expires.
    17    §  29.  Subparagraph (ii) of paragraph (c) of subdivision 2 of section
    18  2807-s of the public health law, as added by section 15 of  part  A3  of
    19  chapter  62 of the laws of 2003, is amended and a new subparagraph (iii)
    20  is added to read as follows:
    21    (ii) The regional percentage allowance for the periods July first, two
    22  thousand three through  [June  thirtieth,]  December  thirty-first,  two
    23  thousand  five,  for  all  general hospitals in the region applicable to
    24  specified third-party payors, and applicable to related patient  coinsu-
    25  rance  and  deductible  amounts,  shall  be the same regional percentage
    26  allowance calculated pursuant to paragraph (b) of this  subdivision  for
    27  the  period January first, nineteen hundred ninety-nine through December
    28  thirty-first, nineteen hundred ninety-nine  multiplied  by  one  hundred
    29  eight and nineteen hundredths percent.
    30    (iii) The regional percentage allowance for the periods January first,
    31  two  thousand  six  through  June thirtieth, two thousand seven, for all
    32  general hospitals in the  region  applicable  to  specified  third-party
    33  payors,  and  applicable  to  related patient coinsurance and deductible
    34  amounts, shall be the  same  regional  percentage  allowance  calculated
    35  pursuant  to  subparagraph (ii) of this paragraph for the period January
    36  first, two thousand five through  December  thirty-first,  two  thousand
    37  five multiplied by one hundred one and thirteen hundredths percent.
    38    §  30. Subparagraphs (viii) and (ix) of paragraph (a) of subdivision 6
    39  of section 2807-s of the public health law, as amended by section  4  of
    40  part A3 of chapter 62 of the laws of 2003, are amended and a new subpar-
    41  agraph (x) is added to read as follows:
    42    (viii)  A  gross annual statewide amount for two thousand four and two
    43  thousand five shall be six hundred twenty-four million dollars.
    44    (ix) A gross annual statewide amount for [the  period  January  first,
    45  two  thousand  five through June thirtieth, two thousand five] two thou-
    46  sand six shall  be  [three  hundred  twelve]  six  hundred  seventy-four
    47  million dollars.
    48    (x)  A  gross statewide amount for the period January first, two thou-
    49  sand seven through June thirtieth, two thousand  seven  shall  be  three
    50  hundred thirty-seven million dollars.
    51    §  31. Subparagraphs (iv) and (v) of paragraph (c) of subdivision 6 of
    52  section 2807-s of the public health law, as amended by section 5 of part
    53  A3 of chapter 62 of the laws of 2003, are amended to read as follows:
    54    (iv) A further gross annual statewide amount  for  two  thousand,  two
    55  thousand  one,  two thousand two, two thousand three [and], two thousand
        S. 992                             63                            A. 1922
 
     1  four, two thousand five and  two  thousand  six,  shall  be  eighty-nine
     2  million dollars.
     3    (v) A further gross statewide amount for the period January first, two
     4  thousand [five] seven through June thirtieth, two thousand [five] seven,
     5  shall be forty-four million five hundred thousand dollars.
     6    §  32. Subparagraphs (i) and (ii) of paragraph (e) of subdivision 6 of
     7  section 2807-s of the public health law, as amended by section 6 of part
     8  A3 of chapter 62 of the laws of 2003, are amended to read as follows:
     9    (i) A further gross annual statewide amount shall  be  twelve  million
    10  dollars  for  each  period  prior  to January first, two thousand [five]
    11  seven.
    12    (ii) A further gross statewide amount for the  period  January  first,
    13  two  thousand  [five]  seven through June thirtieth, two thousand [five]
    14  seven shall be six million dollars.
    15    § 33. Subparagraphs (iv) and (v) of paragraph (a) of subdivision 7  of
    16  section  2807-s  of  the  public health law, as amended by section 11 of
    17  part A3 of chapter 62 of the laws  of  2003,  are  amended  to  read  as
    18  follows:
    19    (iv)  four  hundred ninety-four million dollars on an annual basis for
    20  the periods January first, two thousand through  December  thirty-first,
    21  two thousand [four] six,
    22    (v)  two  hundred  forty-seven  million dollars for the period January
    23  first, two thousand [five] seven through June  thirtieth,  two  thousand
    24  [five] seven,
    25    §  34.  Subdivision  2  of section 2807-j of the public health law, as
    26  amended by section 3 of part A3 of chapter 62 of the laws  of  2003,  is
    27  amended to read as follows:
    28    2. (a) The total percentage allowance for any period during the period
    29  January  first,  nineteen  hundred ninety-seven through December thirty-
    30  first, nineteen hundred ninety-nine and on and after January first,  two
    31  thousand,  for  a  designated provider of services applicable to a payor
    32  shall be determined in accordance with this subdivision and  applied  to
    33  net patient service revenues.
    34    (b)  The total percentage allowance for each payor, other than govern-
    35  mental  agencies,  or  health  maintenance  organizations  for  services
    36  provided  to  subscribers  eligible  for  medical assistance pursuant to
    37  title eleven of article five of the social  services  law,  or  approved
    38  organizations  for  services  provided  to  subscribers eligible for the
    39  family health plus program pursuant to title eleven-D of article five of
    40  the social services law, and other than payments for a patient that  has
    41  no  third-party  coverage in whole or in part for services provided by a
    42  designated provider of services, shall be:
    43    (i) the sum of (A) eight and  eighteen-hundredths  percent,  provided,
    44  however,  that  for services provided on and after July first, two thou-
    45  sand three, the percentage shall be  eight  and  eighty-five  hundredths
    46  percent,  and  further  provided that for services provided on and after
    47  January first, two thousand six, the percentage shall be eight and nine-
    48  ty-five hundredths percent,  plus  (B)  twenty-four  percent,  provided,
    49  however,  that  for services provided on and after July first, two thou-
    50  sand  three,  the  percentage  shall  be  twenty-five  and  ninety-seven
    51  hundredths  percent,  and further provided that for services provided on
    52  and after January first, two thousand six, the percentage shall be twen-
    53  ty-six and twenty-six hundredths percent, and plus (C) for  a  specified
    54  third-party  payor  as  defined  in subdivision one-a of section twenty-
    55  eight hundred seven-s of this article the percentage allowance  applica-
        S. 992                             64                            A. 1922
 
     1  ble  for  a general hospital for inpatient hospital services pursuant to
     2  subdivision two of section twenty-eight hundred seven-s of this article;
     3    (ii) unless (A) an election in accordance with paragraph (a) of subdi-
     4  vision five of this section to pay the allowance directly to the commis-
     5  sioner  or  the  commissioner's  designee is in effect for a third-party
     6  payor, and in addition (B) for a specified third-party payor an election
     7  to pay the assessment in accordance with  section  twenty-eight  hundred
     8  seven-t of this article is in effect.
     9    (c) If an election in accordance with subdivision five of this section
    10  is  in effect for a third-party payor and in addition in accordance with
    11  section twenty-eight hundred seven-t of this  article  for  a  specified
    12  third-party  payor,  the  total  percentage  allowance  factor  shall be
    13  reduced to eight and  eighteen-hundredths  percent,  provided,  however,
    14  that  for  services provided on and after July first, two thousand three
    15  the total percentage allowance factor shall  be  reduced  to  eight  and
    16  eighty-five  hundredths  percent, and further provided that for services
    17  provided on and  after  January  first,  two  thousand  six,  the  total
    18  percentage  allowance  factor  shall be reduced to eight and ninety-five
    19  hundredths percent.
    20    (d) The total percentage allowance for payments by governmental  agen-
    21  cies,  as  determined  in  accordance  with  paragraphs (a) and (a-1) of
    22  subdivision one of section twenty-eight hundred seven-c of this  article
    23  as  in  effect on December thirty-first, nineteen hundred ninety-six, or
    24  health maintenance organizations for services  provided  to  subscribers
    25  eligible for medical assistance pursuant to title eleven of article five
    26  of  the  social  services  law,  or  approved organizations for services
    27  provided to subscribers eligible for  the  family  health  plus  program
    28  pursuant  to  title eleven-D of article five of the social services law,
    29  shall be five and ninety-eight-hundredths  percent,  provided,  however,
    30  that  for  services provided on and after July first, two thousand three
    31  the total percentage allowance shall be six and  forty-seven  hundredths
    32  percent,  and  further  provided that for services provided on and after
    33  January first, two thousand six, the total percentage allowance shall be
    34  six and fifty-four hundredths percent.
    35    (e) The total percentage allowance for payments for services  provided
    36  by  designated  providers  of services for which there is no third-party
    37  coverage in whole or in part  shall  be  eight  and  eighteen-hundredths
    38  percent, provided, however, that for services provided on and after July
    39  first,  two thousand three the total percentage allowance shall be eight
    40  and eighty-five  hundredths  percent,  and  further  provided  that  for
    41  services  provided  on  and  after  January first, two thousand six, the
    42  total percentage allowance shall be  eight  and  ninety-five  hundredths
    43  percent. This paragraph shall not apply to patient deductibles and coin-
    44  surance amounts.
    45    (f) The total percentage allowance for patient deductibles and coinsu-
    46  rance  amounts  shall  be  the  same  percentage allowance applicable to
    47  payments by the primary third-party payor covering the patient  in  each
    48  case  determined  in accordance with paragraphs (a), (b) and (c) of this
    49  subdivision.
    50    (g) The total percentage allowance for  secondary  third-party  payors
    51  under  coordination  of benefits principles shall be the same percentage
    52  allowance applicable to payments by the primary third-party payor in the
    53  case determined in accordance with paragraphs (a), (b) and (c)  of  this
    54  subdivision.
    55    §  35.  Subdivision  18  of section 2807-c of the public health law is
    56  amended by adding a new paragraph (f) to read as follows:
        S. 992                             65                            A. 1922
 
     1    (f) Payments of assessments required to be submitted by general hospi-
     2  tals pursuant to this subdivision shall  be  subject  to  audit  by  the
     3  commissioner for a period of ten years following the close of the calen-
     4  dar year in which such payments are due, after which such payments shall
     5  be deemed final and not subject to further adjustment or reconciliation.
     6  General hospitals which, in the course of such an audit, fail to produce
     7  data  or  documentation  requested in furtherance of such an audit, in a
     8  computer data format or such other format as  may  be  required  by  the
     9  commissioner, within thirty days of such request may be assessed a civil
    10  penalty  of  up to ten thousand dollars for each such failure, provided,
    11  however, that such civil penalty shall not be imposed  if  the  hospital
    12  demonstrates  good  cause for such failure. General hospitals which have
    13  previously been assessed a civil penalty pursuant to this paragraph  and
    14  which,  in  the  course of a subsequent audit conducted pursuant to this
    15  paragraph, fail to produce data or documentation in accordance with  the
    16  requirements  of this paragraph may be assessed a civil penalty of up to
    17  twenty thousand dollars for each such failure, provided,  however,  that
    18  such  civil  penalty  shall  not be imposed if the hospital demonstrates
    19  good cause for such failure. The  imposition  of  such  civil  penalties
    20  shall be subject to the provisions of section twelve-a of this chapter.
    21    §  36.  Section 2807-j of the public health law is amended by adding a
    22  new subdivision 8-a to read as follows:
    23    8-a. (a) Payments and reports submitted or required to be submitted to
    24  the commissioner or to the  commissioner's  designee  pursuant  to  this
    25  section  and  section  twenty-eight  hundred  seven-s of this article by
    26  designated providers of services and by third-party  payors  which  have
    27  elected  to make payments directly to the commissioner or to the commis-
    28  sioner's designee in accordance with subdivision five-a of this section,
    29  shall be subject to audit by the commissioner for a period of ten  years
    30  following  the  close  of  the  calendar year in which such payments and
    31  reports are due, after which such payments shall be deemed final and not
    32  subject to further adjustment or reconciliation.
    33    (b) Designated providers of services or third-party payors  which,  in
    34  the  course of an audit pursuant to this section or section twenty-eight
    35  hundred seven-s of this article, fail to produce data  or  documentation
    36  requested  in furtherance of such an audit, in a computer data format or
    37  such other format as may be required by the commissioner, within  thirty
    38  days of such request, may be assessed a civil penalty of up to ten thou-
    39  sand  dollars  for each such failure, provided, however, that such civil
    40  penalty shall not be imposed if the  audited  entity  demonstrates  good
    41  cause  for  such  failure.  Audited  entities which have previously been
    42  assessed a civil penalty pursuant to this  section  and  which,  in  the
    43  course  of  a  subsequent  audit  conducted  pursuant to this section or
    44  section twenty-eight hundred seven-s of this article,  fail  to  produce
    45  data  or  documentation  in  accordance  with  the  requirements of such
    46  sections may be assessed a  civil  penalty  of  up  to  twenty  thousand
    47  dollars for each such failure, provided, however, that such civil penal-
    48  ty  shall  not  be imposed if the audited entity demonstrates good cause
    49  for such failure. The imposition of civil  penalties  pursuant  to  this
    50  section  shall  be subject to the provisions of section twelve-a of this
    51  chapter.
    52    (c) Records required to be retained for audit verification purposes by
    53  designated providers of services and third-party  payors  in  accordance
    54  with this section and section twenty-eight hundred seven-s of this arti-
    55  cle shall include, but not be limited to, on a monthly basis, the source
    56  records  generated  by  supporting  information systems, detailed claims
        S. 992                             66                            A. 1922
 
     1  information, detailed patient revenue information,  capitation  arrange-
     2  ments,  financial  accounting  records, relevant correspondence and such
     3  other records as may be  required  to  prove  compliance  with,  and  to
     4  support  the  reports  submitted  in  accordance  with, this section and
     5  section twenty-eight hundred seven-s of this article. Such records shall
     6  be maintained in a computer data format or such other format as  may  be
     7  specified by the commissioner.
     8    §  37.  Paragraph (d) of subdivision 5 of section 2807-j of the public
     9  health law is REPEALED.
    10    § 38. Section 2807-t of the public health law is amended by  adding  a
    11  new subdivision 10 to read as follows:
    12    10.  (a) Payments and reports submitted or required to be submitted to
    13  the commissioner or to the  commissioner's  designee  pursuant  to  this
    14  section by specified third-party payors shall be subject to audit by the
    15  commissioner for a period of ten years following the close of the calen-
    16  dar  year  in  which such payments and reports are due, after which such
    17  payments shall be deemed final and not subject to further adjustment  or
    18  reconciliation.
    19    (b)  Specified  third-party  payors  which,  in the course of an audit
    20  pursuant to this section fail to produce data or documentation requested
    21  in furtherance of such an audit, in a computer data format or such other
    22  format as may be required by the commissioner,  within  thirty  days  of
    23  such  request,  may  be  assessed  a civil penalty of up to ten thousand
    24  dollars for each such failure, provided, however, that such civil penal-
    25  ty shall not be imposed if such specified third-party payor demonstrates
    26  good cause for such failure. Specified  third-party  payors  which  have
    27  previously  been  assessed  a civil penalty pursuant to this section and
    28  which, in the course of a subsequent audit conducted  pursuant  to  this
    29  section,  fail  to  produce data or documentation in accordance with the
    30  requirements of this section may be assessed a civil penalty  of  up  to
    31  twenty  thousand  dollars for each such failure, provided, however, that
    32  such civil penalty shall not be imposed if  such  specified  third-party
    33  payors demonstrates good cause for such failure. The imposition of civil
    34  penalties pursuant to this section shall be subject to the provisions of
    35  section twelve-a of this chapter.
    36    (c) Records required to be retained for audit verification purposes by
    37  specified  third-party  payors  in  accordance  with  this section shall
    38  include, but not be limited to, on a monthly basis, the  source  records
    39  generated   by  supporting  information  systems,  financial  accounting
    40  records, relevant correspondence and the addresses and dates of coverage
    41  for all individuals and family units, as defined by paragraphs  (a)  and
    42  (b) of subdivision one of this section, and such other records as may be
    43  required  to  prove compliance with, and to support reports submitted in
    44  accordance with, this section. Such records shall  be  maintained  in  a
    45  computer  data  format  or  such other format as may be specified by the
    46  commissioner.
    47    § 39. Subparagraphs (i) and (iii) of paragraph (d) of subdivision 3 of
    48  section 2807-m of the public health law, as amended  by  section  12  of
    49  part  A3  of  chapter  62  of  the  laws of 2003, are amended to read as
    50  follows:
    51    (i) the commissioner shall establish a reduction percentage by  divid-
    52  ing twenty-seven million dollars each year for the period January first,
    53  two  thousand through December thirty-first, two thousand [four] six and
    54  thirteen million five hundred thousand dollars for  the  period  January
    55  first,  two  thousand  [five] seven through June thirtieth, two thousand
        S. 992                             67                            A. 1922
 
     1  [five] seven, by the sum of initial hospital distribution amounts calcu-
     2  lated pursuant to paragraph (c) of this subdivision;
     3    (iii)  each  teaching general hospital shall have its initial distrib-
     4  ution amount as determined pursuant to paragraph (c) of this subdivision
     5  reduced by an amount up to the amount calculated  pursuant  to  subpara-
     6  graph (ii) of this paragraph and subject to the requirements of subpara-
     7  graph  (iv)  of  this  paragraph,  provided, however, that if the sum of
     8  reduction amounts for all facilities thus calculated is less than  twen-
     9  ty-seven  million  dollars on a statewide basis each year for the period
    10  January first, two thousand through December thirty-first, two  thousand
    11  [four]  six  and  thirteen million five hundred thousand dollars for the
    12  period January first, two thousand [five] seven through June  thirtieth,
    13  two  thousand  [five] seven, the commissioner may increase the reduction
    14  percentage subject to the provisions of subparagraph (iv) of this  para-
    15  graph  so  that  the  sum of the reduction amounts for all facilities is
    16  twenty-seven million dollars each year for the period January first, two
    17  thousand through December thirty-first,  two  thousand  [four]  six  and
    18  thirteen  million  five  hundred thousand dollars for the period January
    19  first, two thousand [five] seven through June  thirtieth,  two  thousand
    20  [five] seven.
    21    §  40.  Paragraph (a) of subdivision 5 of section 2807-m of the public
    22  health law, as amended by section 13 of part A3 of  chapter  62  of  the
    23  laws of 2003, is amended to read as follows:
    24    (a)  Up to thirty-one million dollars annually for the periods January
    25  first, two thousand through December thirty-first, two  thousand  [four]
    26  six,  and  up  to  fifteen million five hundred thousand dollars for the
    27  period January first, two thousand [five] seven through June  thirtieth,
    28  two  thousand  [five]  seven,  shall  be  set  aside and reserved by the
    29  commissioner [annually] from the regional pools established pursuant  to
    30  subdivision  two  of this section for supplemental distributions in each
    31  such region to be made by the commissioner  to  consortia  and  teaching
    32  general  hospitals  in accordance with a distribution methodology devel-
    33  oped in consultation with the council and specified in rules  and  regu-
    34  lations adopted by the commissioner.
    35    §  41.  Subdivision  7  of section 2807-m of the public health law, as
    36  amended by section 14 of part A3 of chapter 62 of the laws of  2003,  is
    37  amended to read as follows:
    38    7.  Notwithstanding  any inconsistent provision of section one hundred
    39  twelve or one hundred sixty-three of the state finance law or any  other
    40  law,  up  to one million dollars for the period January first, two thou-
    41  sand through December thirty-first, two thousand, up to one million  six
    42  hundred  thousand  dollars  annually  for the periods January first, two
    43  thousand one through December thirty-first, two thousand [four] six, and
    44  up to eight hundred thousand dollars for the period January  first,  two
    45  thousand [five] seven through June thirtieth, two thousand [five] seven,
    46  shall  be  set  aside and reserved by the commissioner from the regional
    47  pools established pursuant  to  subdivision  two  of  this  section  for
    48  distributions to the New York state area health education center program
    49  for  the  purpose  of  expanding  community-based  training  of  medical
    50  students. The New York state area health education center program  shall
    51  report to the commissioner on an annual basis regarding the use of funds
    52  for such purpose in such form and manner as specified by the commission-
    53  er.
    54    §  42.  Subdivision 3 and paragraphs (a) and (a-1) of subdivision 4 of
    55  section 2807-k of the public health law, as amended by section 7 of part
    56  A3 of chapter 62 of the laws of 2003, are amended to read as follows:
        S. 992                             68                            A. 1922
 
     1    3. (a) Each major public  general  hospital  shall  be  allocated  for
     2  distribution  from  the  pools  established pursuant to this section for
     3  each year through December thirty-first, two  thousand  [four]  six,  an
     4  amount equal to the amount allocated to such major public general hospi-
     5  tal from the regional pool established pursuant to subdivision seventeen
     6  of  section  twenty-eight hundred seven-c of this article for the period
     7  January first, nineteen  hundred  ninety-six  through  December  thirty-
     8  first, nineteen hundred ninety-six.
     9    (b)  For  the  period January first, two thousand [five] seven through
    10  June thirtieth, two thousand [five] seven,  each  major  public  general
    11  hospital  shall be allocated for distribution from the pools established
    12  pursuant to this section for such period, an amount  equal  to  one-half
    13  the amount calculated pursuant to paragraph (a) of this subdivision.
    14    (a)  From  funds in the pool for each year, thirty-six million dollars
    15  shall be reserved on an annual basis through December thirty-first,  two
    16  thousand  [four]  six and eighteen million dollars shall be reserved for
    17  the period January first, two thousand [five] seven through June thirti-
    18  eth, two thousand [five] seven, for distribution as  high  need  adjust-
    19  ments in accordance with subdivision six of this section.
    20    (a-1)  From  funds  in  the  pool  for each year, twenty-seven million
    21  dollars shall be reserved on an annual basis  for  the  periods  January
    22  first,  two  thousand through December thirty-first, two thousand [four]
    23  six and thirteen million five hundred thousand dollars shall be reserved
    24  for the period January first, two thousand  [five]  seven  through  June
    25  thirtieth,  two  thousand  [five]  seven, for distribution in accordance
    26  with subdivision sixteen of this section.
    27    § 43. The opening paragraph,  paragraph  (a)  of  subdivision  1,  and
    28  subdivision  2 of section 2807-w of the public health law, as amended by
    29  section 10 of part A3 of chapter 62 of the laws of 2003, are amended  to
    30  read as follows:
    31    Funds  allocated  pursuant  to  paragraph  (p)  of  subdivision one of
    32  section twenty-eight hundred seven-v of this article, shall be deposited
    33  as authorized and used for the purpose  of  making  medicaid  dispropor-
    34  tionate  share  payments  within the limits established on an annualized
    35  basis pursuant to subdivision twenty-one of section twenty-eight hundred
    36  seven-c of this article, for the  period  January  first,  two  thousand
    37  through  June  thirtieth,  two thousand [five] seven, in accordance with
    38  the following:
    39    (a) Each eligible rural hospital shall receive one hundred four  thou-
    40  sand  dollars  on an annualized basis for the periods January first, two
    41  thousand through December thirty-first,  two  thousand  [four]  six  and
    42  seventy  thousand  dollars  for  the  period January first, two thousand
    43  [five] seven through June thirtieth, two thousand [five] seven, provided
    44  as a disproportionate share payment; provided,  however,  that  if  such
    45  payment  pursuant  to  this  paragraph  exceeds  a hospital's applicable
    46  disproportionate share limit, then the total amount in  excess  of  such
    47  limit  shall  be  provided as a nondisproportionate share payment in the
    48  form of a grant directly  from  this  pool  without  allocation  to  the
    49  special  revenue funds - other, indigent care fund - 068, or any succes-
    50  sor fund or account;
    51    2. From the funds in the pool each year, thirty-six million dollars on
    52  an annualized basis for the periods January first, two thousand  through
    53  December  thirty-first,  two  thousand  [four]  six and eighteen million
    54  dollars for the period January first, two thousand [five] seven  through
    55  June  thirtieth, two thousand [five] seven, of the funds not distributed
    56  in accordance with subdivision one of this section, shall be distributed
        S. 992                             69                            A. 1922
 
     1  in accordance with the formula set forth in subdivision six  of  section
     2  twenty-eight hundred seven-k of this article.
     3    § 44. Subparagraphs (iv), (v) and (vi) of paragraph (a) of subdivision
     4  9 of section 2807-j of the public health law, subparagraphs (iv) and (v)
     5  as amended by section 8 of part A3 of chapter 62 of the laws of 2003 and
     6  subparagraph (vi) as added by chapter 1 of the laws of 1999, are amended
     7  to read as follows:
     8    (iv)  seven  hundred  sixty-five million dollars annually of the funds
     9  accumulated for the periods January first, two thousand through December
    10  thirty-first, two thousand [four] six, and
    11    (v) three hundred eighty-two million five hundred thousand dollars  of
    12  the  funds accumulated for the period January first, two thousand [five]
    13  seven through June thirtieth, two thousand [five] seven, and
    14    (vi) if funds accumulated for distributions pursuant to section  twen-
    15  ty-eight  hundred  seven-k  of this article are insufficient to meet the
    16  funding requirements established pursuant to subparagraphs (iv) and  (v)
    17  of this paragraph, the commissioner is authorized to transfer and depos-
    18  it funds accumulated pursuant to section twenty-eight hundred seven-v of
    19  this  article into the special revenue funds - other, indigent care fund
    20  - 068, or any successor fund or  account,  to  fully  fund  the  amounts
    21  established  pursuant  to  subparagraphs (iv) and (v) of this paragraph;
    22  provided however, the provisions of  this  subparagraph  shall  only  be
    23  effective  after  funding  amounts  specified  in subparagraph (viii) of
    24  paragraph (a) of subdivision one of section twenty-eight hundred seven-l
    25  of this article.
    26    § 45. Section 1680-j of  the  public  authorities  law,  as  added  by
    27  section  2  of  part  D of chapter 58 of the laws of 2004, is amended to
    28  read as follows:
    29    § 1680-j. Authorization for the issuance of bonds for the health  care
    30  system  improvement  capital  grant  program.  Notwithstanding any other
    31  provision of law to the contrary, the dormitory authority of  the  state
    32  of  New York is hereby authorized to issue bonds or notes in one or more
    33  series in an aggregate  principal  amount  not  to  exceed  [two]  seven
    34  hundred fifty million dollars excluding bonds issued to fund one or more
    35  debt  service reserve funds, to pay costs of issuance of such bonds, and
    36  bonds or notes issued to refund or otherwise repay such bonds  or  notes
    37  previously  issued,  for the purposes of financing project costs author-
    38  ized under section twenty-eight hundred eighteen of  the  public  health
    39  law.  Of  such  [two]  seven  hundred fifty million dollars, ten million
    40  dollars shall be made available to the community health centers  capital
    41  program  established  pursuant to section twenty-eight hundred seventeen
    42  of the public health law.
    43    1. Such bonds and notes of the dormitory authority shall not be a debt
    44  of the state and the state shall not be liable thereon, nor  shall  they
    45  be  payable  out of any funds other than those appropriated by the state
    46  to the authority for debt service and related expenses pursuant  to  any
    47  service  contract  executed pursuant to subdivision two of this section,
    48  and such bonds and notes shall contain on the face thereof  a  statement
    49  to  such  effect.  Except  for  purposes  of complying with the internal
    50  revenue code, any interest income earned on bond proceeds shall only  be
    51  used  to  pay  debt  service on such bonds. All of the provisions of the
    52  dormitory authority act relating to bonds and notes which are not incon-
    53  sistent with the provisions of this section shall apply  to  obligations
    54  authorized  by  this  section, including but not limited to the power to
    55  establish adequate reserves therefore and  to  issue  renewal  notes  or
    56  refunding  bonds  thereof.  The issuance of any bonds or notes hereunder
        S. 992                             70                            A. 1922
 
     1  shall further be subject to the approval of the director of the division
     2  of the budget, and any projects funded through the issuance of bonds  or
     3  notes  hereunder shall be approved by the New York state public authori-
     4  ties control board, as required under section fifty-one of this chapter.
     5    2.  Notwithstanding any other law, rule or regulation to the contrary,
     6  in order to assist the dormitory authority in undertaking  the  adminis-
     7  tration  and  financing  of  projects authorized under this section, the
     8  director of the budget is hereby authorized to enter into  one  or  more
     9  service  contracts  with  the  dormitory  authority, none of which shall
    10  exceed more than thirty years in duration, upon such  terms  and  condi-
    11  tions  as  the director of the budget and the dormitory authority agree,
    12  so as to annually provide to the dormitory authority, in the  aggregate,
    13  a  sum  not  to  exceed  the  annual  debt  service payments and related
    14  expenses required for the  bonds  and  notes  issued  pursuant  to  this
    15  section.  Any service contract entered into pursuant to this subdivision
    16  shall provide that the obligation of the state to pay the amount therein
    17  provided shall not constitute a debt of the state within the meaning  of
    18  any  constitutional or statutory provision and shall be deemed executory
    19  only to the extent of monies available and that no  liability  shall  be
    20  incurred  by  the  state  beyond the monies available for such purposes,
    21  subject to annual appropriation by the legislature. Any such contract or
    22  any payments made or to be made thereunder may be assigned or pledged by
    23  the dormitory authority as security for its bonds and notes, as  author-
    24  ized by this section.
    25    §  46.  Paragraphs  1  and  2 of subsection (j) of section 4301 of the
    26  insurance law, paragraph 1 as  amended  and  paragraph  2  as  added  by
    27  section  8  of  part  A of chapter 1 of the laws of 2002, are amended to
    28  read as follows:
    29    (1) [No] Except as provided in this subsection, every medical  expense
    30  indemnity  corporation,  dental  expense  indemnity  corporation, health
    31  service corporation, or hospital service corporation shall be [converted
    32  into a corporation organized for pecuniary  profit.  Every  such  corpo-
    33  ration  shall be] maintained and operated for the benefit of its members
    34  and subscribers as a co-operative corporation.
    35    (2) An article forty-three corporation [which was the  subject  of  an
    36  initial  opinion  and decision issued by the superintendent on or before
    37  December thirty-first, nineteen hundred ninety-nine, as the same may  be
    38  amended,]  and its not-for-profit subsidiaries (including, without limi-
    39  tation, any such subsidiary licensed as  a  health  service  corporation
    40  pursuant  to this chapter or as a health maintenance organization organ-
    41  ized pursuant to article forty-four of the public  health  law)  may  be
    42  converted  into [a corporation or other entity] one or more corporations
    43  or other entities organized for pecuniary profit, or into [a  for-profit
    44  organization] one or more for-profit organizations, in any such case, in
    45  accordance  with  the provisions of section seven thousand three hundred
    46  seventeen of this chapter.
    47    § 47. Subparagraph (G) of paragraph 4 of  subsection  (j)  of  section
    48  4301  of the insurance law, as added by section 8 of part A of chapter 1
    49  of the laws of 2002, is amended to read as follows:
    50    (G) (1) Neither the members of the board nor any agent or other person
    51  or persons acting on its behalf, while acting within the scope of  their
    52  authority  as  members  or  agents of the board, shall be subject to any
    53  personal liability  resulting  from  the  carrying  out  of  the  powers
    54  conferred  hereunder; and (2) the provisions of section seventeen of the
    55  public officers law shall apply to members of the board  and  agents  or
    56  other  persons  acting  on  its  behalf,  in connection with any and all
        S. 992                             71                            A. 1922
 
     1  claims, demands, suits, actions or proceedings  which  may  be  made  or
     2  brought  against  any  of  them arising out of any determination made or
     3  actions taken or omitted to be taken in compliance with any  obligations
     4  under or pursuant to the terms of this section or section seven thousand
     5  three hundred seventeen of this chapter. The provisions of this subpara-
     6  graph  shall  be severable from and shall survive any legal challenge to
     7  the legality, validity, or constitutionality of this section;
     8    § 48. Paragraph 4 of subsection (j) of section 4301 of  the  insurance
     9  law is amended by adding a new subparagraph (P) to read as follows:
    10    (P)  For purposes of the state finance law, including, but not limited
    11  to, section one hundred twelve thereof, the fund established pursuant to
    12  subsection (e) of section seven thousand three hundred seventeen of this
    13  chapter and its board shall not be considered and shall  not  constitute
    14  the  state,  a  state  agency,  department,  board, officer, commission,
    15  institution, employee, fund, bureau, division, council, office,  commit-
    16  tee, body, or agent of any kind.
    17    §  49.  Paragraph 1 of subsection (a) of section 7317 of the insurance
    18  law, as added by section 10 of part A of chapter 1 of the laws of  2002,
    19  is amended to read as follows:
    20    (1)  An  article  forty-three corporation [which was the subject of an
    21  initial opinion and decision issued by the superintendent on  or  before
    22  December  thirty-first, nineteen hundred ninety-nine, as the same may be
    23  amended,] and its not-for-profit subsidiaries (including, without  limi-
    24  tation,  any  such  subsidiary  licensed as a health service corporation
    25  pursuant to this chapter or as a health maintenance organization  organ-
    26  ized  pursuant  to  article  forty-four  of the public health law) which
    27  seeks to convert into [a corporation or other entity] one or more corpo-
    28  rations or other entities organized for  pecuniary  profit  or  into  [a
    29  for-profit  organization]  one  or  more for-profit organizations of any
    30  kind shall submit a proposed plan of conversion  to  the  superintendent
    31  for approval pursuant to this section.
    32    §  50.  Paragraph 8 of subsection (k) of section 7317 of the insurance
    33  law, as added by section 10 of part A of chapter 1 of the laws of  2002,
    34  is amended to read as follows:
    35    (8)  (A) Neither the members of the board of directors of the charita-
    36  ble organization nor any agent or other person or persons acting on  its
    37  behalf,  while  acting within the scope of their authority as members or
    38  agents of the board, shall be subject to any personal liability  result-
    39  ing from the carrying out of the powers conferred hereunder; and (B) the
    40  provisions  of  section seventeen of the public officers law shall apply
    41  to members of the board and  agents  or  other  persons  acting  on  its
    42  behalf,  in  connection with any and all claims, demands, suits, actions
    43  or proceedings which may be made or brought against any of them  arising
    44  out of any determination made or actions taken or omitted to be taken in
    45  compliance  with  any obligations under or pursuant to the terms of this
    46  section or section four thousand three hundred one of this chapter.  The
    47  provisions  of  this  subparagraph  shall  be  severable  from and shall
    48  survive any legal challenge to the legality, validity, or  constitution-
    49  ality of this section.
    50    §  51. Section 59 of part J of chapter 82 of the laws of 2002 amending
    51  the environmental conservation law and other laws relating  to  enacting
    52  major  components  necessary  to implement the state fiscal plan for the
    53  2002-2003 state fiscal year, is amended to read as follows:
    54    § 59. Notwithstanding any law, rule or regulation to the contrary, the
    55  commissioner of health is authorized to [borrow]  utilize  any  existing
    56  cash  balances  in  pools  established  or  funded  pursuant to sections
        S. 992                             72                            A. 1922
 
     1  2807-j, 2807-k, 2807-m, 2807-s, 2807-t and 2807-v of the  public  health
     2  law  for  the  purpose  of  meeting any funding obligations set forth in
     3  sections 2807-k, 2807-l, 2807-m or 2807-v of  the  public  health  law[,
     4  provided,  however,  that  such  authorization shall expire and be of no
     5  further effect in the event the two hundred million dollars  transferred
     6  from  pools  established  pursuant  to sections 2807-j and 2807-v of the
     7  public health law pursuant to section fifty-eight of this act are trans-
     8  ferred back to said pools from the state general fund or otherwise;  and
     9  further provided that such authorization shall in no event extend beyond
    10  December 31, 2005; and further provided that, commencing with the effec-
    11  tive  date  of  this section, reports of cash transfers made pursuant to
    12  this section shall be submitted on a semi-annual basis to  the  director
    13  of  the budget, the temporary president of the senate and the speaker of
    14  the assembly].
    15    § 52. Paragraph (a) of subdivision 4 of section 2807-j of  the  public
    16  health  law,  as  amended  by section 35 of part A3 of chapter 62 of the
    17  laws of 2003, is amended to read as follows:
    18    (a) [The] For periods prior to January first, two thousand  five,  the
    19  commissioner  is  authorized  to  contract  with the article forty-three
    20  insurance law plans, or such other contractors as the commissioner shall
    21  designate, to receive and distribute funds from  the  allowances  estab-
    22  lished  pursuant  to this section, and funds from the assessments estab-
    23  lished pursuant to subdivision eighteen of section twenty-eight  hundred
    24  seven-c  of this article. In the event contracts with the article forty-
    25  three insurance law plans or other commissioner's designees are effectu-
    26  ated, the commissioner shall conduct annual audits of  the  receipt  and
    27  distribution  of  the  funds.  The  reasonable  costs and expenses of an
    28  administrator as approved by the commissioner, not to exceed for person-
    29  nel services on an annual basis two million two hundred thousand dollars
    30  for collection and distribution of  allowances  and  assessments  estab-
    31  lished  pursuant  to  this  section  and subdivision eighteen of section
    32  twenty-eight hundred seven-c of this article, shall  be  paid  from  the
    33  allowance and assessment funds.
    34    §  53.  Paragraph (a) of subdivision 4 of section 2807-s of the public
    35  health law, as amended by section 36 of part A3 of  chapter  62  of  the
    36  laws of 2003, is amended to read as follows:
    37    (a)  [The]  For periods prior to January first, two thousand five, the
    38  commissioner is authorized to  contract  with  the  article  forty-three
    39  insurance law plans, or such other contractors as the commissioner shall
    40  designate,  to  receive  and distribute funds from the allowances estab-
    41  lished pursuant to this section and funds from  the  assessments  estab-
    42  lished pursuant to section twenty-eight hundred seven-t of this article.
    43  In  the event contracts with the article forty-three insurance law plans
    44  or other commissioner's  designees  are  effectuated,  the  commissioner
    45  shall  conduct  annual  audits  of  the  receipt and distribution of the
    46  funds. The reasonable costs and expenses of an administrator as approved
    47  by the commissioner, not to exceed for personnel services on  an  annual
    48  basis  eight  hundred fifty thousand dollars for collection and distrib-
    49  ution of allowances established pursuant to this section and assessments
    50  established pursuant to this section and assessments established  pursu-
    51  ant  to  section  twenty-eight  hundred seven-t of this article shall be
    52  paid from the allowance and assessment funds.
    53    § 54. Intentionally omitted.
    54    § 55. Paragraph (c) of subdivision 16 of section 2807-c of the  public
    55  health law, as amended by chapter 731 of the laws of 1993, is amended to
    56  read as follows:
        S. 992                             73                            A. 1922
 
     1    (c)  [The]  For periods prior to January first, two thousand five, the
     2  commissioner and the commissioner of social services are  authorized  to
     3  contract  with  the  article  forty-three insurance law plans, or if not
     4  available such other administrators as the commissioner and the  commis-
     5  sioner  of social services shall designate, to receive funds for the bad
     6  debt and charity care regional pools and/or the  bad  debt  and  charity
     7  care and capital statewide pool and distribute funds from such pools. In
     8  the  event contracts with the article forty-three insurance law plans or
     9  other commissioners' designees are effectuated, the commissioner and the
    10  commissioner of social services shall jointly conduct  or  cause  to  be
    11  conducted  annual  audits  of the receipt and distribution of the pooled
    12  funds. The reasonable costs and expenses  of  a  pool  administrator  as
    13  approved  by  the  commissioner and the commissioner of social services,
    14  not to exceed for personnel services on an  annual  basis  four  hundred
    15  thousand  dollars  for  all  pools, shall be paid from the pooled funds.
    16  Such pool administrator or pool administrators shall be acting on behalf
    17  of the state medical assistance program provided pursuant to title elev-
    18  en of article five of the social services law  in  the  distribution  to
    19  hospitals  pursuant to subdivisions fourteen-c, seventeen and paragraphs
    20  (c) and (d) of subdivision nineteen of this section of pooled funds.
    21    § 56. Subdivision 4 of section 2807-d of the  public  health  law,  as
    22  amended  by  chapter  41  of  the  laws  of  1992, is amended to read as
    23  follows:
    24    4. [The] For periods prior to January first, two  thousand  five,  the
    25  commissioner  is  authorized  to  contract  with the article forty-three
    26  insurance law plans, or if not available such  other  administrators  as
    27  the  commissioner  shall  designate,  to receive and distribute hospital
    28  assessment funds. In the event contracts with the  article   forty-three
    29  insurance  law  plans or other commissioner's designees are effectuated,
    30  the commissioner shall conduct annual audits of the receipt and distrib-
    31  ution of the assessment funds. The reasonable costs and expenses  of  an
    32  administrator as approved by the commissioner, not to exceed for person-
    33  nel  services  on  an annual basis four hundred thousand dollars for all
    34  assessments established pursuant to this section, shall be paid from the
    35  assessment funds.
    36    § 57. Subdivision 4 of section 3614-a of the  public  health  law,  as
    37  added by chapter 938 of the laws of 1990, is amended to read as follows:
    38    4.  [The]  For  periods prior to January first, two thousand five, the
    39  commissioner is authorized to  contract  with  the  article  forty-three
    40  insurance  law  plans,  or such other administrators as the commissioner
    41  shall designate, to receive and distribute home care provider assessment
    42  funds and personal care  services  provider  assessment  funds  assessed
    43  pursuant  to  section three hundred sixty-seven-i of the social services
    44  law. In the event contracts with the article forty-three  insurance  law
    45  plans or other commissioner's designees are effectuated, the commission-
    46  er  shall  conduct  annual audits of the receipt and distribution of the
    47  assessment funds. The reasonable costs and expenses of an  administrator
    48  as approved by the commissioner, not to exceed for personnel services on
    49  an  annual basis two hundred thousand dollars for all assessments estab-
    50  lished pursuant to this section and the personal care services  provider
    51  assessment  established  pursuant to section three hundred sixty-seven-i
    52  of the social services law, shall be paid from the assessment funds.
    53    § 58. The public health law is amended by adding a new section  2807-y
    54  to read as follows:
    55    §  2807-y.  Pool administration.   1. For periods on and after January
    56  first, two thousand five, the commissioner  is  authorized  to  contract
        S. 992                             74                            A. 1922
 
     1  with the article forty-three insurance law plans, or such other contrac-
     2  tors  as  the  commissioner  shall  designate, to receive and distribute
     3  funds from the allowances and assessments established pursuant to:
     4    (a)  subdivision  eighteen  of section twenty-eight hundred seven-c of
     5  this article;
     6    (b) section twenty-eight hundred seven-j of this article;
     7    (c) section twenty-eight hundred seven-s of this article;
     8    (d) section twenty-eight hundred seven-t of this article;
     9    (e) section twenty-eight hundred seven-v of this article;
    10    (f) section twenty-eight hundred seven-d of this article;
    11    (g) section thirty-six hundred fourteen-a of this chapter; and
    12    (h) section three hundred sixty-seven-i of the social services law.
    13    2. In the event contracts with the article forty-three  insurance  law
    14  plans or other commissioner's designees are effectuated, the commission-
    15  er  shall  conduct  annual audits of the receipt and distribution of the
    16  funds.
    17    3. The reasonable costs and expenses of an administrator  as  approved
    18  by  the  commissioner, not to exceed for personnel services on an annual
    19  basis four million five hundred fifty thousand dollars, increased  annu-
    20  ally  by  the  lower  of  the  consumer price index or five percent, for
    21  collection and distribution of allowances and assessments set  forth  in
    22  subdivision  one  of  this section, shall be paid from the allowance and
    23  assessment funds.
    24    4. Notwithstanding any inconsistent provision of section  one  hundred
    25  twelve  or one hundred sixty-three of the state finance law or any other
    26  law, at the discretion of the commissioner without a competitive bid  or
    27  request  for proposal process, contracts in effect for administration of
    28  the allowances and assessments set forth  in  subdivision  one  of  this
    29  section for the period January first, two thousand four through December
    30  thirty-first,  two thousand four may be extended to provide for adminis-
    31  tration of the allowances and assessments pursuant to this  section  and
    32  amended as necessary.
    33    §  59. Section 34 of part A3 of chapter 62 of the laws of 2003, amend-
    34  ing the general business law and other laws relating to  enacting  major
    35  components  necessary  to  implement  the  state  fiscal  plan  for  the
    36  2003-2004 state fiscal year, is amended to read as follows:
    37    § 34. (1) Notwithstanding any inconsistent provision of law,  rule  or
    38  regulation,  the commissioner of health is authorized to transfer within
    39  amounts  appropriated  and  the  state  comptroller  is  authorized  and
    40  directed  to  receive  for  deposit  to  the credit of the department of
    41  health's special revenue fund -  other,  miscellaneous  special  revenue
    42  fund  - 339, provider collection monitoring account, [five hundred thou-
    43  sand dollars ($500,000), or so much thereof as may be necessary, annual-
    44  ly of] within amounts appropriated, those funds  collected  and  accumu-
    45  lated  pursuant  to  section  2807-v of the public health law, including
    46  income from invested funds, for the purpose of payment  for  administra-
    47  tive  costs  of  the  department  of health related to administration of
    48  statutory duties for the collections  and  distributions  authorized  by
    49  section 2807-v of the public health law.
    50    (2)  Notwithstanding  any inconsistent provision of law, rule or regu-
    51  lation, the commissioner of health is authorized  to  transfer  and  the
    52  comptroller  is  authorized  to  deposit  [five hundred thousand dollars
    53  ($500,000), or so much thereof as may be necessary, annually of], within
    54  amounts appropriated, those funds collected and accumulated and interest
    55  earned through surcharges on payments for health care services  pursuant
    56  to section 2807-s of the public health law and from assessments pursuant
        S. 992                             75                            A. 1922
 
     1  to  section  2807-t  of the public health law for the purpose of payment
     2  for administrative costs of the department of health related to adminis-
     3  tration of  statutory  duties  for  the  collections  and  distributions
     4  authorized  by  sections 2807-s, 2807-t, and 2807-m of the public health
     5  law into such accounts established within the department of  health  for
     6  such purposes.
     7    (3)  Notwithstanding  any inconsistent provision of law, rule or regu-
     8  lation, the commissioner of health is authorized  to  transfer  and  the
     9  comptroller is authorized to deposit, within amounts appropriated, those
    10  funds  authorized  for distribution in accordance with the provisions of
    11  paragraph (a) of subdivision 1 of section 2807-l of  the  public  health
    12  law  for the purposes of payment for administrative costs of the depart-
    13  ment of health related  to  the  child  health  insurance  plan  program
    14  authorized  pursuant to title 1-A of article 25 of the public health law
    15  into the special revenue funds - other,  miscellaneous  special  revenue
    16  fund  -  339,  child  health  insurance  account  established within the
    17  department of health.
    18    (4) Notwithstanding any inconsistent provision of law, rule  or  regu-
    19  lation,  the  commissioner  of  health is authorized to transfer and the
    20  comptroller is authorized to deposit, within amounts appropriated, those
    21  funds authorized for distribution in accordance with the  provisions  of
    22  paragraph  (e)  of  subdivision 1 of section 2807-1 of the public health
    23  law for the purpose of payment for administrative costs of  the  depart-
    24  ment  of  health  related to the health occupation development and work-
    25  place demonstration program established pursuant to section  2807-h  and
    26  the  health workforce retraining program established pursuant to section
    27  2807-g of the public health law into the special revenue funds -  other,
    28  miscellaneous  special revenue fund - 339, health occupation development
    29  and workplace  demonstration  program  account  established  within  the
    30  department of health.
    31    (5)  Notwithstanding  any inconsistent provision of law, rule or regu-
    32  lation, the commissioner of health is authorized  to  transfer  and  the
    33  comptroller  is  authorized  to deposit two million six hundred thousand
    34  dollars [($2,000,000)] ($2,600,000), or so much thereof as may be neces-
    35  sary, annually of funds allocated pursuant to paragraph (j) of  subdivi-
    36  sion  1  of  section  2807-v of the public health law for the purpose of
    37  payment for administrative costs of the department of health related  to
    38  administration  of  the  state's  tobacco  control  programs  and cancer
    39  services provided pursuant to sections 2807-r and 1399-ii of the  public
    40  health  law  into  such  accounts  established  within the department of
    41  health for such purposes.
    42    (6) Notwithstanding any inconsistent provision of law, rule  or  regu-
    43  lation, the commissioner of health is authorized to transfer and deposit
    44  [six]  seven  hundred fifty thousand dollars [($650,000)] ($750,000), or
    45  so much thereof as may be necessary, annually of  funds  authorized  for
    46  distribution  in accordance with the provisions of section 2807-l of the
    47  public health law from monies accumulated and  interest  earned  through
    48  funds  authorized  for distribution in accordance with the provisions of
    49  section 2807-l of the public health law for the purpose of  payment  for
    50  administrative  costs  of  the  department of health related to programs
    51  funded pursuant to section 2807-l of the  public  health  law  into  the
    52  special revenue funds - other, miscellaneous special revenue fund - 339,
    53  primary  care  initiatives  monitoring  account  established  within the
    54  department of health.
    55    (7) [Notwithstanding any inconsistent provision of law, rule or  regu-
    56  lation, the commissioner of health is authorized to transfer and deposit
        S. 992                             76                            A. 1922
 
     1  one  hundred  thousand  dollars ($100,000), or so much thereof as may be
     2  necessary, annually of funds authorized for distribution  in  accordance
     3  with  the  provisions of section 2807-l of the public health law for the
     4  purposes of payment for administrative costs of the department of health
     5  related  to the programs funded pursuant to section 2807-l of the public
     6  health law into the special revenue funds - other, miscellaneous special
     7  revenue fund - 339, primary care initiatives monitoring  account  estab-
     8  lished within the department of health.
     9    (8)]  Notwithstanding any inconsistent provision of law, rule or regu-
    10  lation, the commissioner of health is authorized  to  transfer  and  the
    11  comptroller  is  authorized to deposit, within amounts appropriated, the
    12  funds authorized for distribution in accordance with the  provisions  of
    13  section  2807-l of the public health law for the purposes of payment for
    14  administrative costs of the department of health related to the programs
    15  funded pursuant to section 2807-l of the  public  health  law  into  the
    16  special revenue funds - other, miscellaneous special revenue fund - 339,
    17  pilot health insurance account, or any successor fund or account, estab-
    18  lished within the department of health.
    19    [(9)]  (8)  Notwithstanding any inconsistent provision of law, rule or
    20  regulation, the commissioner of health is authorized to transfer and the
    21  comptroller is authorized to deposit, within amounts appropriated, those
    22  funds authorized for distribution in accordance with the  provisions  of
    23  subparagraph  (ii)  of paragraph (f) of subdivision 19 of section 2807-c
    24  of the public health law from monies accumulated and interest earned  in
    25  the  bad  debt  and  charity care and capital statewide pools through an
    26  assessment charged to general hospitals pursuant to  the  provisions  of
    27  subdivision  18  of  section  2807-c  of the public health law and those
    28  funds authorized for distribution in accordance with the  provisions  of
    29  section  2807-l of the public health law for the purposes of payment for
    30  administrative costs of the department of health related  to  monitoring
    31  the  implementation  and  effectiveness of programs funded under section
    32  2807-l of the public health law into the special revenue funds -  other,
    33  miscellaneous special revenue fund - 339, primary care initiatives moni-
    34  toring account established within the department of health.
    35    [(10)]  (9) Notwithstanding any inconsistent provision of law, rule or
    36  regulation, the commissioner of health is authorized to transfer and the
    37  comptroller is authorized to deposit, within amounts appropriated, those
    38  funds authorized for distribution in accordance with section  2807-l  of
    39  the  public  health  law  for the purposes of payment for administrative
    40  costs of the department of  health  related  to  programs  funded  under
    41  section 2807-l of the public health law into the special revenue funds -
    42  other,  miscellaneous  special  revenue fund - 339, health care delivery
    43  improvement grant administration account established within the  depart-
    44  ment of health.
    45    [(11)] (10) Notwithstanding any inconsistent provision of law, rule or
    46  regulation, the commissioner of health is authorized to transfer and the
    47  comptroller is authorized to deposit, within amounts appropriated, those
    48  funds  authorized  pursuant to sections 2807-d, 3614-a and 3614-b of the
    49  public health law and section 367-i of the social services law  and  for
    50  distribution  in  accordance  with  the  provisions  of subdivision 9 of
    51  section 2807-j of the public health law for the purpose of  payment  for
    52  administration of statutory duties for the collections and distributions
    53  authorized  by  sections  2807-c, 2807-d, 2807-j, 2807-k, 2807-l, 3614-a
    54  and 3614-b of the public health law and  section  367-i  of  the  social
    55  services  law  into  the  special  revenue  funds - other, miscellaneous
        S. 992                             77                            A. 1922
 
     1  special revenue fund  -  339,  provider  collection  monitoring  account
     2  established within the department of health.
     3    §  60.  Subdivision  6  of  section  2510 of the public health law, as
     4  amended by chapter 639 of the laws  of  1996,  is  amended  to  read  as
     5  follows:
     6    6.  "Period  of eligibility" means that period commencing on the first
     7  day of the month during which a child is an eligible child  [or  on  the
     8  first day of the month of application, whichever is later,] and enrolled
     9  or  recertified  for enrollment on an annual basis based on all required
    10  information and documentation and ending on the last day of the  twelfth
    11  month  [in  which  a  child ceases to be an eligible child, or up to the
    12  last day of the third month after an eligible child becomes eligible for
    13  medical  assistance,  whichever  is  earlier.]  following   such   date,
    14  provided, however:
    15    (a)  the  period  of eligibility for a child who ceases to be eligible
    16  because he or she no longer resides in New York state or has  access  to
    17  or  obtained  other health insurance coverage, as defined by the commis-
    18  sioner in consultation with the superintendent pursuant to paragraph (c)
    19  of subdivision two of section twenty-five hundred eleven of  this  arti-
    20  cle, shall end the last day of the month in which the child ceases to be
    21  an eligible child; and
    22    (b)  the  period  of  eligibility for a child who becomes eligible for
    23  medical assistance shall end the last day of the third month  after  the
    24  child becomes eligible for medical assistance; and
    25    (c)  the  period  of  eligibility  for  a child for whom an applicable
    26  premium payment has not been paid shall  end  in  accordance  with  time
    27  frames and procedures determined by the commissioner.
    28    §  61.  Subdivision  4  of  section  2511 of the public health law, as
    29  amended by chapter 2 of the laws of 1998, is amended to read as follows:
    30    4. Households shall report to the approved organization, within thirty
    31  days, any changes in New York state residency or  health  care  coverage
    32  under  insurance  that  may make a child ineligible for subsidy payments
    33  pursuant to this section. Any individual who, with the intent to  obtain
    34  benefits, willfully misstates income or residence to establish eligibil-
    35  ity  pursuant  to  subdivision two of this section or willfully fails to
    36  notify an approved organization of [an increase in income or]  a  change
    37  in  residence  or health care coverage pursuant to this subdivision [two
    38  of this section] shall repay such subsidy to the commissioner.  Individ-
    39  uals seeking to enroll children for coverage shall be informed that such
    40  willful  misstatement  or failure to notify shall result in such liabil-
    41  ity.
    42    § 62. Paragraph (b) of subdivision 5-a of section 2511 of  the  public
    43  health  law,  as added by chapter 170 of the laws of 1994, is amended to
    44  read as follows:
    45    (b) An approved organization shall  promptly  review  all  information
    46  relating  to a potential change in eligibility [as set forth in subdivi-
    47  sion two of this section] based  on  information  provided  pursuant  to
    48  subdivision  four  of  this section.   Within at least thirty days after
    49  receipt of such information, the  approved  organization  shall  make  a
    50  determination  whether the child is still eligible for a subsidy payment
    51  and shall notify the household and the commissioner if it determines the
    52  child is not eligible for a subsidy payment.
    53    § 63. Subdivision 8 of section 2510  of  the  public  health  law,  as
    54  amended by chapter 2 of the laws of 1998, is amended to read as follows:
    55    8.  "Subsidy payment" means a payment made to an approved organization
    56  for the cost of covered health care services  coverage  to  an  eligible
        S. 992                             78                            A. 1922
 
     1  child or children, the amount of which shall be determined solely by the
     2  commissioner.
     3    §  64.  Subdivision  5  of  section  2511 of the public health law, as
     4  amended by chapter 2 of the laws of 1998, is amended to read as follows:
     5    5. Notwithstanding any inconsistent provisions of subdivision  two  of
     6  this section, an individual who meets the criteria of paragraphs (b) and
     7  (c) of subdivision two of this section but not the criteria of paragraph
     8  (a)  of  such  subdivision  may  be  enrolled  for  covered  health care
     9  services, provided however, that an approved organization shall  not  be
    10  eligible  to  receive  a  subsidy payment for providing coverage to such
    11  individuals. The cost of coverage shall be determined by the commission-
    12  er[, in consultation with the superintendent] and shall be no more  than
    13  the cost of providing such coverage.
    14    §  65.  Paragraph  (b)  of subdivision 7 of section 2511 of the public
    15  health law, as amended by chapter 923 of the laws of 1990, is amended to
    16  read as follows:
    17    (b) The commissioner, in consultation with the  superintendent,  shall
    18  make a determination whether to approve, disapprove or recommend modifi-
    19  cation  of  the  proposal. In order for a proposal to be approved by the
    20  commissioner, the proposal must also be approved by  the  superintendent
    21  with  respect  to the provisions of subparagraphs (viii) through [(xii)]
    22  (x) of paragraph (a) of this subdivision.
    23    § 66. Subparagraph (i) of paragraph (f) of subdivision  2  of  section
    24  2511 of the public health law, as added by section 44 of part A of chap-
    25  ter 1 of the laws of 2002, is amended to read as follows:
    26    (i) In order to establish income eligibility under this subdivision at
    27  initial application, a household shall provide such documentation speci-
    28  fied  in  subparagraph  (iii) of this paragraph, as necessary and suffi-
    29  cient to determine a child's financial eligibility for a subsidy payment
    30  under this title. The commissioner  may  verify  the  accuracy  of  such
    31  income  information  provided  by  the  household by matching it against
    32  income information contained in databases to which the commissioner  has
    33  access, including the state's wage reporting system pursuant to subdivi-
    34  sion five of section one hundred seventy-one-a of the tax law.
    35    §  67.  Paragraph  (g)  of subdivision 2 of section 2511 of the public
    36  health law, as added by chapter 2 of the laws of 1998, subparagraph  (i)
    37  as  amended  by  chapter  419 of the laws of 2000, is amended to read as
    38  follows:
    39    (g) (i) Notwithstanding any  inconsistent  provision  of  law  to  the
    40  contrary  and  subject  to the availability of federal financial partic-
    41  ipation under title XIX of the federal  social  security  act,  a  child
    42  under  the  age of nineteen shall be presumed to be eligible for subsidy
    43  payments under this title, once during a twelve month period,  beginning
    44  on  the  first  day  of the enrollment period following the date that an
    45  approved organization determines, on the basis of  preliminary  informa-
    46  tion,  that  a child whose family's net household income does not exceed
    47  one hundred ninety-two percent or, effective July first,  two  thousand,
    48  two  hundred  eight percent of the non-farm federal poverty level or the
    49  gross equivalent of such net income. The presumptive eligibility  period
    50  shall  continue  until  the  earlier of the date an eligibility determi-
    51  nation is made pursuant to this title or title eleven of article five of
    52  the social services law, or two months after the date presumptive eligi-
    53  bility begins; provided however, a presumptive eligibility period may be
    54  extended in the event an eligibility determination under this  title  or
    55  title  eleven  of  article  five  of the social services law is not made
    56  within such two month period through  no  fault  of  the  applicant  for
        S. 992                             79                            A. 1922
 
     1  insurance  for  medical  assistance.  The commissioner shall assure that
     2  children who are enrolled pursuant to this paragraph receive the  appro-
     3  priate  follow-up  for a determination of eligibility for benefits under
     4  this  title  or  title eleven of article five of the social services law
     5  prior to the termination of  the  presumptive  eligibility  period.  The
     6  commissioner  shall assure that children and their families are informed
     7  of all available enrollment sites in accordance with subdivision nine of
     8  this section.
     9    (ii) [This paragraph shall have no force and  effect  and  presumptive
    10  eligibility under this paragraph shall not be available on and after the
    11  date  presumptive  eligibility in the medical assistance program becomes
    12  effective and is available pursuant to subdivision four of section three
    13  hundred sixty-four-i and paragraph (u) of subdivision  four  of  section
    14  three  hundred  sixty-six  of  the  social  services law.] Effective one
    15  hundred twenty days after the chapter of the laws of two  thousand  five
    16  that  amended  this  paragraph  shall have become a law, the presumptive
    17  eligibility provisions set forth in this paragraph  as  they  relate  to
    18  children  who  appear  eligible for medical assistance pursuant to title
    19  eleven of article five of the social services law shall be null and void
    20  and have no further force and effect; provided however, approved  organ-
    21  izations  which do not have a contract with the state to provide facili-
    22  tated enrollment services pursuant to subdivision nine of  this  section
    23  shall  continue to enroll such children presumptively in accordance with
    24  this paragraph.
    25    § 68. Section 2807-k of the public health law is amended by  adding  a
    26  new subdivision 9-a to read as follows:
    27    9-a.  (a)  In  order  for  a  general  hospital  to participate in the
    28  distribution of funds from the pool,  the  general  hospital  must  have
    29  financial aid policies and procedures, in accordance with the provisions
    30  of  this  subdivision, for reducing charges otherwise applicable to low-
    31  income individuals without health insurance, or who have exhausted their
    32  health insurance benefits, and who can demonstrate an inability  to  pay
    33  full  charges,  and  also  for reducing or discounting the collection of
    34  co-pays and deductible payments from those individuals  who  can  demon-
    35  strate an inability to pay such amounts.
    36    (b)  Such  policies  and procedures shall be clear, understandable, in
    37  writing and publicly available and each general  hospital  participating
    38  in  the pool shall ensure that every patient is made aware of the exist-
    39  ence of such policies and  procedures  and  is  provided,  in  a  timely
    40  manner,  with  a  written  copy  of  such  policies  and procedures upon
    41  request.
    42    (c) Such financial aid policies and procedures  shall  include  clear,
    43  objective  criteria  for  determining a patient's ability to pay and for
    44  providing such adjustments to payment  requirements  as  are  necessary.
    45  Such  adjustment mechanisms may include sliding fee schedules, discounts
    46  to fixed standards and flexible or extended payment plans. Such policies
    47  and procedures shall be applied consistently to all eligible patients.
    48    (d) General  hospitals  may  require  that  patients  seeking  payment
    49  adjustments  provide appropriate financial information and documentation
    50  in support of their application, provided, however, that  such  applica-
    51  tion  process  shall not be unduly burdensome or complex. General hospi-
    52  tals shall, upon request, assist patients in  understanding  the  hospi-
    53  tal's  policies  and procedures and in applying for payment adjustments.
    54  Decisions regarding such applications shall be made in a timely manner.
    55    (e) Patients with incomes below two hundred  percent  of  the  federal
    56  poverty  level  shall be presumptively eligible for payment adjustments,
        S. 992                             80                            A. 1922
 
     1  provided, however, that nothing in this provision shall  be  interpreted
     2  as precluding hospitals from extending such payment adjustments to other
     3  patients, either generally or on a case by case basis.
     4    (f)  General  hospitals  participating in the pool shall not force the
     5  sale or foreclosure of a patient's primary residence in order to collect
     6  an outstanding medical bill.
     7    (g) Reports required to be submitted to the department by each general
     8  hospital participating in the pool and which contain, in accordance with
     9  applicable regulations, a certification from  an  independent  certified
    10  public  accountant  or  independent  licensed public accountant that the
    11  hospital is in compliance with conditions of participation in  the  pool
    12  shall also contain a certification from such accountant that such hospi-
    13  tal is in compliance with the provisions of this subdivision.
    14    § 69. Article 29-D of the public health law is amended by adding a new
    15  title III to read as follows:
    16                        TITLE 3 - PAY FOR PERFORMANCE
    17  Section 2999-b. Legislative intent.
    18          2999-c. Definition.
    19          2999-d. Commissioner's workgroup.
    20          2999-e. Demonstration projects.
    21          2999-f. Authorizations.
    22    §  2999-b.  Legislative intent. It is the intent of the legislature to
    23  promote patient safety and the quality of care,  as  well  as  the  cost
    24  effectiveness of such care, by convening providers and payers to develop
    25  clinical measures, and the metrics on which to measure provider perform-
    26  ance.  Thereafter,  it  is  the  legislature's  intent  to encourage and
    27  support  regional  demonstration  projects  involving  multiple   payors
    28  utilizing  such  metrics as the basis for providing financial incentives
    29  to providers to achieve increased quality and cost effectiveness.
    30    § 2999-c. Definition. "Health care plan" shall have the  same  meaning
    31  set  forth  in  subdivision four-e of section forty-nine hundred of this
    32  chapter.
    33    § 2999-d. Commissioner's workgroup. 1. The commissioner shall,  within
    34  ninety  days  of  the  effective  date of this title, convene and chair,
    35  directly or through a designee or designees, a workgroup  including  but
    36  not  necessarily  limited  to  representatives of statewide and regional
    37  health care provider associations, health care  plan  associations,  and
    38  self-insured employers.
    39    2.  The  workgroup shall seek consensus on clinical measures and meas-
    40  urement criteria necessary and appropriate  to  achieve  improvement  in
    41  quality  performance  by  providers  in delivering health care services;
    42  further, it shall  develop  metrics  to  be  utilized  by  demonstration
    43  projects  selected  pursuant to the provisions of this title which will,
    44  when implemented:
    45    (a) promote the use of  best  practices  through  the  development  of
    46  broadly agreed upon performance measures;
    47    (b)  improve  care  coordination through the participation of multiple
    48  stakeholders;
    49    (c) institute long-term quality improvement;
    50    (d) encourage appropriate utilization  of  health  care  services  and
    51  improve health outcomes through the use of evidence-based medicine prac-
    52  tice guidelines; and
    53    (e) promote self-management by consumers through the implementation of
    54  patient-specific metrics.
    55    §   2999-e.  Demonstration  projects.  1.  Notwithstanding  any  other
    56  provision of law, the commissioner is authorized and shall select demon-
        S. 992                             81                            A. 1922
 
     1  stration projects throughout the state which have been determined by the
     2  commissioner to encompass one or more of the following elements:
     3    (a)  use  of  the  workgroup  metrics to measure and reward physician,
     4  clinic and hospital performance;
     5    (b) involvement of multiple  payers,  including  government  programs,
     6  multiple providers and multiple communities agreeing to employ the work-
     7  group  metrics  to reward physician, clinic and hospital performance for
     8  quality improvement;
     9    (c) use of information technology to share patient  information  among
    10  providers to improve coordination of patient care;
    11    (d)  targeted  improvement  in  care  coordination through the partic-
    12  ipation of multiple stakeholders;
    13    (e) collection, analysis and public reporting on the measures,  incen-
    14  tives and processes utilized, and outcomes; and
    15    (f)  programs  to enhance patient self-management through adherence to
    16  treatment plans.
    17    2. In evaluating proposed  demonstration  projects,  the  commissioner
    18  shall  consider  the  degree  to  which  a proposed project reflects the
    19  elements listed above.
    20    § 2999-f. Authorizations.   1.  The  commissioner  may  contract  with
    21  projects  and provide grants to support projects to the extent funds are
    22  appropriated for such purpose.
    23    2. The commissioner may authorize the participation of  the  Medicaid,
    24  Family  Health Plus and Child Health Plus programs in one or more demon-
    25  stration projects.
    26    3. The commissioner may contract with  entities  possessing  expertise
    27  deemed necessary to assist in the evaluation of the metrics developed by
    28  the  workgroup  and  individual  project designs to the extent funds are
    29  appropriated for such purpose.
    30    4. The commissioner shall report to the governor and  the  legislature
    31  on  or  before  March  first,  two  thousand  six, on the results of the
    32  commissioner's workgroup, and shall report within  three  years  of  the
    33  effective  date of this title, and again six months prior to the expira-
    34  tion date of this title, on the number of demonstration projects  chosen
    35  and on the operation and effectiveness of each demonstration undertaken,
    36  together with any recommendations the commissioner deems appropriate.
    37    5.  This  title  shall  expire five years after it shall have become a
    38  law.
    39    § 70. Paragraph (a) of subdivision 1 of section 18 of chapter  266  of
    40  the  laws  of  1986, amending the civil practice law and rules and other
    41  laws relating  to  malpractice  and  professional  medical  conduct,  as
    42  amended  by  section  1 of part G of chapter 120 of the laws of 2004, is
    43  amended to read as follows:
    44    (a) The superintendent of insurance and the commissioner of health  or
    45  their  designee  shall,  from  funds  available  in  the hospital excess
    46  liability pool created pursuant to  subdivision  (5)  of  this  section,
    47  purchase  a policy or policies for excess insurance coverage, as author-
    48  ized by paragraph (1) of subsection (e) of section 5502 of the insurance
    49  law; or from an insurer, other than an insurer described in section 5502
    50  of the insurance law, duly authorized to write such coverage and actual-
    51  ly writing  medical  malpractice  insurance  in  this  state;  or  shall
    52  purchase equivalent excess coverage in a form previously approved by the
    53  superintendent  of insurance for purposes of providing equivalent excess
    54  coverage in accordance with section 19 of chapter 294  of  the  laws  of
    55  1985, for medical or dental malpractice occurrences between July 1, 1986
    56  and  June 30, 1987, between July 1, 1987 and June 30, 1988, between July
        S. 992                             82                            A. 1922
 
     1  1, 1988 and June 30, 1989, between July  1,  1989  and  June  30,  1990,
     2  between  July  1,  1990 and June 30, 1991, between July 1, 1991 and June
     3  30, 1992, between July 1, 1992 and June 30, 1993, between July  1,  1993
     4  and  June 30, 1994, between July 1, 1994 and June 30, 1995, between July
     5  1, 1995 and June 30, 1996, between July  1,  1996  and  June  30,  1997,
     6  between  July  1,  1997 and June 30, 1998, between July 1, 1998 and June
     7  30, 1999, between July 1, 1999 and June 30, 2000, between July  1,  2000
     8  and  June 30, 2001, between July 1, 2001 and June 30, 2002, between July
     9  1, 2002 and June 30, 2003, between July 1, 2003 and June 30, 2004, [and]
    10  between July 1, 2004 and June 30, 2005, between July 1,  2005  and  June
    11  30,  2006  and  between  July 1, 2006 and June 30, 2007 or reimburse the
    12  hospital where the hospital  purchases  equivalent  excess  coverage  as
    13  defined  in  subparagraph  (i)  of paragraph (a) of subdivision (1-a) of
    14  this section for medical or dental malpractice occurrences between  July
    15  1,  1987  and  June  30,  1988,  between July 1, 1988 and June 30, 1989,
    16  between July 1, 1989 and June 30, 1990, between July 1,  1990  and  June
    17  30,  1991,  between July 1, 1991 and June 30, 1992, between July 1, 1992
    18  and June 30, 1993, between July 1, 1993 and June 30, 1994, between  July
    19  1,  1994  and  June  30,  1995,  between July 1, 1995 and June 30, 1996,
    20  between July 1, 1996 and June 30, 1997, between July 1,  1997  and  June
    21  30,  1998,  between July 1, 1998 and June 30, 1999, between July 1, 1999
    22  and June 30, 2000, between July 1, 2000 and June 30, 2001, between  July
    23  1,  2001  and  June  30,  2002,  between July 1, 2002 and June 30, 2003,
    24  between July 1, 2003 and June 30, 2004, [and] between July 1,  2004  and
    25  June  30,  2005, between July 1, 2005 and June 30, 2006 and between July
    26  1, 2006 and June 30, 2007 for physicians or dentists certified as eligi-
    27  ble for each such period or periods pursuant to subdivision (2) of  this
    28  section  by  a  general  hospital licensed pursuant to article 28 of the
    29  public health law; provided that no single insurer shall write more than
    30  fifty percent of the total excess premium for a given policy  year;  and
    31  provided,  however,  that such eligible physicians or dentists must have
    32  in force an individual policy, from an insurer licensed in this state of
    33  primary malpractice insurance coverage in amounts of no  less  than  one
    34  million  three  hundred  thousand  dollars  for  each claimant and three
    35  million nine hundred thousand dollars for all claimants under that poli-
    36  cy during the period of such excess coverage for such occurrences or  be
    37  endorsed  as additional insureds under a hospital professional liability
    38  policy which is offered through a voluntary attending physician  ("chan-
    39  neling") program previously permitted by the superintendent of insurance
    40  during  the  period of such excess coverage for such occurrences. During
    41  such period, such policy for excess coverage or such  equivalent  excess
    42  coverage  shall, when combined with the physician's or dentist's primary
    43  malpractice insurance coverage or coverage provided through a  voluntary
    44  attending  physician ("channeling") program, total an aggregate level of
    45  two million three hundred thousand dollars for  each  claimant  and  six
    46  million  nine  hundred  thousand dollars for all claimants from all such
    47  policies with respect to occurrences in each  of  such  years  provided,
    48  however, if the cost of primary malpractice insurance coverage in excess
    49  of  one million dollars, but below the excess medical malpractice insur-
    50  ance coverage provided pursuant to this act, exceeds the  rate  of  nine
    51  percent per annum, then the required level of primary malpractice insur-
    52  ance  coverage  in excess of one million dollars for each claimant shall
    53  be in an amount of not less than the  dollar  amount  of  such  coverage
    54  available at nine percent per annum; the required level of such coverage
    55  for  all claimants under that policy shall be in an amount not less than
    56  three times the dollar amount of coverage for each claimant; and  excess
        S. 992                             83                            A. 1922
 
     1  coverage,  when  combined with such primary malpractice insurance cover-
     2  age, shall increase the aggregate level for each claimant by one million
     3  dollars and three  million  dollars  for  all  claimants;  and  provided
     4  further,  that,  with respect to policies of primary medical malpractice
     5  coverage that include occurrences between April 1,  2002  and  June  30,
     6  2002,  such  requirement  that  coverage  be in amounts no less than one
     7  million three hundred thousand  dollars  for  each  claimant  and  three
     8  million  nine hundred thousand dollars for all claimants for such occur-
     9  rences shall be effective April 1, 2002.
    10    § 71. Subdivision 3 of section 18 of chapter 266 of the laws of  1986,
    11  amending  the  civil  practice  law and rules and other laws relating to
    12  malpractice and professional medical conduct, as amended by section 2 of
    13  part G of chapter 120 of the  laws  of  2004,  is  amended  to  read  as
    14  follows:
    15    (3)(a)  The superintendent of insurance shall determine and certify to
    16  each general hospital and to the commissioner  of  health  the  cost  of
    17  excess  malpractice  insurance  for medical or dental malpractice occur-
    18  rences between July 1, 1986 and June 30, 1987, between July 1, 1988  and
    19  June  30,  1989, between July 1, 1989 and June 30, 1990, between July 1,
    20  1990 and June 30, 1991, between July 1, 1991 and June 30, 1992,  between
    21  July  1, 1992 and June 30, 1993, between July 1, 1993 and June 30, 1994,
    22  between July 1, 1994 and June 30, 1995, between July 1,  1995  and  June
    23  30,  1996,  between July 1, 1996 and June 30, 1997, between July 1, 1997
    24  and June 30, 1998, between July 1, 1998 and June 30, 1999, between  July
    25  1,  1999  and  June  30,  2000,  between July 1, 2000 and June 30, 2001,
    26  between July 1, 2001 and June 30, 2002, between July 1,  2002  and  June
    27  30,  2003, between July 1, 2003 and June 30, 2004, [and] between July 1,
    28  2004 and June 30, 2005, between July 1,  2005  and  June  30,  2006  and
    29  between  July 1, 2006 and June 30, 2007 allocable to each general hospi-
    30  tal for physicians or dentists certified as eligible for purchase  of  a
    31  policy for excess insurance coverage by such general hospital in accord-
    32  ance  with  subdivision (2) of this section, and may amend such determi-
    33  nation and certification as necessary.
    34    (b) The superintendent of insurance shall  determine  and  certify  to
    35  each  general  hospital  and  to  the commissioner of health the cost of
    36  excess malpractice insurance or equivalent excess coverage  for  medical
    37  or  dental  malpractice  occurrences  between  July 1, 1987 and June 30,
    38  1988, between July 1, 1988 and June 30, 1989, between July 1,  1989  and
    39  June  30,  1990, between July 1, 1990 and June 30, 1991, between July 1,
    40  1991 and June 30, 1992, between July 1, 1992 and June 30, 1993,  between
    41  July  1, 1993 and June 30, 1994, between July 1, 1994 and June 30, 1995,
    42  between July 1, 1995 and June 30, 1996, between July 1,  1996  and  June
    43  30,  1997,  between July 1, 1997 and June 30, 1998, between July 1, 1998
    44  and June 30, 1999, between July 1, 1999 and June 30, 2000, between  July
    45  1,  2000  and  June  30,  2001,  between July 1, 2001 and June 30, 2002,
    46  between July 1, 2002 and June 30, 2003, between July 1,  2003  and  June
    47  30,  2004, [and] between July 1, 2004 and June 30, 2005, between July 1,
    48  2005 and June 30, 2006 and between July 1, 2006 and June 30, 2007  allo-
    49  cable  to  each general hospital for physicians or dentists certified as
    50  eligible for purchase of a  policy  for  excess  insurance  coverage  or
    51  equivalent  excess  coverage by such general hospital in accordance with
    52  subdivision (2) of this section, and may amend  such  determination  and
    53  certification as necessary. The superintendent of insurance shall deter-
    54  mine  and  certify  to  each general hospital and to the commissioner of
    55  health the ratable share of such cost allocable to the  period  July  1,
    56  1987  to  December  31,  1987, to the period January 1, 1988 to June 30,
        S. 992                             84                            A. 1922
 
     1  1988, to the period July 1, 1988 to December 31,  1988,  to  the  period
     2  January 1, 1989 to June 30, 1989, to the period July 1, 1989 to December
     3  31,  1989, to the period January 1, 1990 to June 30, 1990, to the period
     4  July 1, 1990 to December 31, 1990, to the period January 1, 1991 to June
     5  30, 1991, to the period July 1, 1991 to December 31, 1991, to the period
     6  January 1, 1992 to June 30, 1992, to the period July 1, 1992 to December
     7  31,  1992, to the period January 1, 1993 to June 30, 1993, to the period
     8  July 1, 1993 to December 31, 1993, to the period January 1, 1994 to June
     9  30, 1994, to the period July 1, 1994 to December 31, 1994, to the period
    10  January 1, 1995 to June 30, 1995, to the period July 1, 1995 to December
    11  31, 1995, to the period January 1, 1996 to June 30, 1996, to the  period
    12  July 1, 1996 to December 31, 1996, to the period January 1, 1997 to June
    13  30, 1997, to the period July 1, 1997 to December 31, 1997, to the period
    14  January 1, 1998 to June 30, 1998, to the period July 1, 1998 to December
    15  31,  1998, to the period January 1, 1999 to June 30, 1999, to the period
    16  July 1, 1999 to December 31, 1999, to the period January 1, 2000 to June
    17  30, 2000, to the period July 1, 2000 to December 31, 2000, to the period
    18  January 1, 2001 to June 30, 2001, to the period July 1, 2001 to June 30,
    19  2002, to the period July 1, 2002 to June 30, 2003, to the period July 1,
    20  2003 to June 30, 2004, [and] to the period July  1,  2004  to  June  30,
    21  2005,  to  the  period  July 1, 2005 and June 30, 2006 and to the period
    22  July 1, 2006 and June 30, 2007.
    23    § 72. Paragraphs (a), (b), (c),  (d)  and  (e)  of  subdivision  8  of
    24  section  18 of chapter 266 of the laws of 1986, amending the civil prac-
    25  tice law and rules and other laws relating to  malpractice  and  profes-
    26  sional medical conduct, as amended by section 3 of part G of chapter 120
    27  of the laws of 2004, are amended to read as follows:
    28    (a)  To  the  extent  funds available to the hospital excess liability
    29  pool pursuant to subdivision (5) of this section as amended, and  pursu-
    30  ant  to  section  6  of part J of chapter 63 of the laws of 2001, as may
    31  from time to time be amended, which amended this subdivision, are insuf-
    32  ficient to meet the costs of excess  insurance  coverage  or  equivalent
    33  excess  coverage  for coverage periods during the period July 1, 1992 to
    34  June 30, 1993, during the period July 1, 1993 to June 30,  1994,  during
    35  the period July 1, 1994 to June 30, 1995, during the period July 1, 1995
    36  to  June  30,  1996,  during  the  period July 1, 1996 to June 30, 1997,
    37  during the period July 1, 1997 to June 30, 1998, during the period  July
    38  1,  1998  to  June  30, 1999, during the period July 1, 1999 to June 30,
    39  2000, during the period July 1, 2000 to June 30, 2001, during the period
    40  July 1, 2001 to October 29, 2001, during the period  April  1,  2002  to
    41  June  30,  2002, during the period July 1, 2002 to June 30, 2003, during
    42  the period July 1, 2003 to June 30, 2004, [and] during the  period  July
    43  1,  2004  to  June  30, 2005, during the period July 1, 2005 to June 30,
    44  2006 and during the period July 1, 2006 to June 30,  2007  allocated  or
    45  reallocated  in  accordance  with  paragraph (a) of subdivision (4-a) of
    46  this section to rates of payment applicable to state governmental  agen-
    47  cies,  each  physician or dentist for whom a policy for excess insurance
    48  coverage or equivalent excess coverage  is  purchased  for  such  period
    49  shall  be  responsible  for  payment to the provider of excess insurance
    50  coverage or equivalent excess coverage of an  allocable  share  of  such
    51  insufficiency, based on the ratio of the total cost of such coverage for
    52  such  physician  to  the  sum of the total cost of such coverage for all
    53  physicians applied to such insufficiency.
    54    (b) Each provider of excess insurance coverage  or  equivalent  excess
    55  coverage  covering the period July 1, 1992 to June 30, 1993, or covering
    56  the period July 1, 1993 to June 30, 1994, or covering the period July 1,
        S. 992                             85                            A. 1922
 
     1  1994 to June 30, 1995, or covering the period July 1, 1995 to  June  30,
     2  1996,  or covering the period July 1, 1996 to June 30, 1997, or covering
     3  the period July 1, 1997 to June 30, 1998, or covering the period July 1,
     4  1998  to  June 30, 1999, or covering the period July 1, 1999 to June 30,
     5  2000, or covering the period July 1, 2000 to June 30, 2001, or  covering
     6  the  period  July  1,  2001  to October 29, 2001, or covering the period
     7  April 1, 2002 to June 30, 2002, or covering the period July 1,  2002  to
     8  June  30, 2003, or covering the period July 1, 2003 to June 30, 2004, or
     9  covering the period July 1, 2004 to June 30, 2005, or covering the peri-
    10  od July 1, 2005 to June 30, 2006, or covering the period July 1, 2006 to
    11  June 30, 2007 shall notify a  covered  physician  or  dentist  by  mail,
    12  mailed to the address shown on the last application for excess insurance
    13  coverage  or  equivalent  excess  coverage,  of  the  amount due to such
    14  provider from such physician or dentist for such coverage period  deter-
    15  mined  in accordance with paragraph (a) of this subdivision. Such amount
    16  shall be due from such physician or dentist to such provider  of  excess
    17  insurance  coverage  or  equivalent excess coverage in a time and manner
    18  determined by the superintendent of insurance.
    19    (c) If a physician or dentist liable for payment of a portion  of  the
    20  costs  of excess insurance coverage or equivalent excess coverage cover-
    21  ing the period July 1, 1992 to June 30, 1993,  or  covering  the  period
    22  July  1,  1993  to June 30, 1994, or covering the period July 1, 1994 to
    23  June 30, 1995, or covering the period July 1, 1995 to June 30, 1996,  or
    24  covering the period July 1, 1996 to June 30, 1997, or covering the peri-
    25  od July 1, 1997 to June 30, 1998, or covering the period July 1, 1998 to
    26  June  30, 1999, or covering the period July 1, 1999 to June 30, 2000, or
    27  covering the period July 1, 2000 to June 30, 2001, or covering the peri-
    28  od July 1, 2001 to October 29, 2001, or covering  the  period  April  1,
    29  2002  to  June 30, 2002, or covering the period July 1, 2002 to June 30,
    30  2003, or covering the period July 1, 2003 to June 30, 2004, or  covering
    31  the period July 1, 2004 to June 30, 2005, or covering the period July 1,
    32  2005  to  June 30, 2006, or covering the period July 1, 2006 to June 30,
    33  2007 determined in accordance with paragraph  (a)  of  this  subdivision
    34  fails,  refuses  or  neglects  to make payment to the provider of excess
    35  insurance coverage or equivalent excess coverage in such time and manner
    36  as determined by the superintendent of insurance pursuant  to  paragraph
    37  (b)  of this subdivision, excess insurance coverage or equivalent excess
    38  coverage purchased for such physician or dentist in accordance with this
    39  section for such coverage period shall be cancelled and  shall  be  null
    40  and  void  as  of the first day on or after the commencement of a policy
    41  period where the liability for payment pursuant to this subdivision  has
    42  not been met.
    43    (d)  Each  provider  of excess insurance coverage or equivalent excess
    44  coverage shall notify the superintendent of insurance  and  the  commis-
    45  sioner  of health or their designee of each physician and dentist eligi-
    46  ble for purchase of a policy for excess insurance coverage or equivalent
    47  excess coverage covering the period July 1, 1992 to June  30,  1993,  or
    48  covering the period July 1, 1993 to June 30, 1994, or covering the peri-
    49  od July 1, 1994 to June 30, 1995, or covering the period July 1, 1995 to
    50  June  30, 1996, or covering the period July 1, 1996 to June 30, 1997, or
    51  covering the period July 1, 1997 to June 30, 1998, or covering the peri-
    52  od July 1, 1998 to June 30, 1999, or covering the period July 1, 1999 to
    53  June 30, 2000, or covering the period July 1, 2000 to June 30, 2001,  or
    54  covering  the  period  July 1, 2001 to October 29, 2001, or covering the
    55  period April 1, 2002 to June 30, 2002, or covering the  period  July  1,
    56  2002  to  June 30, 2003, or covering the period July 1, 2003 to June 30,
        S. 992                             86                            A. 1922
 
     1  2004, or covering the period July 1, 2004 to June 30, 2005, or  covering
     2  the period July 1, 2005 to June 30, 2006, or covering the period July 1,
     3  2006  to  June 30, 2007 that has made payment to such provider of excess
     4  insurance  coverage  or  equivalent  excess  coverage in accordance with
     5  paragraph (b) of this subdivision and of each physician and dentist  who
     6  has failed, refused or neglected to make such payment.
     7    (e)  A  provider  of  excess  insurance  coverage or equivalent excess
     8  coverage shall refund to the hospital excess liability pool  any  amount
     9  allocable to the period July 1, 1992 to June 30, 1993, and to the period
    10  July  1,  1993  to June 30, 1994, and to the period July 1, 1994 to June
    11  30, 1995, and to the period July 1, 1995 to June 30, 1996,  and  to  the
    12  period  July 1, 1996 to June 30, 1997, and to the period July 1, 1997 to
    13  June 30, 1998, and to the period July 1, 1998 to June 30, 1999,  and  to
    14  the period July 1, 1999 to June 30, 2000, and to the period July 1, 2000
    15  to  June  30,  2001, and to the period July 1, 2001 to October 29, 2001,
    16  and to the period April 1, 2002 to June 30, 2002, and to the period July
    17  1, 2002 to June 30, 2003, and to the period July 1,  2003  to  June  30,
    18  2004, and to the period July 1, 2004 to June 30, 2005, and to the period
    19  July  1,  2005  to June 30, 2006, and to the period July 1, 2006 to June
    20  30, 2007 received from the hospital excess liability pool  for  purchase
    21  of  excess insurance coverage or equivalent excess coverage covering the
    22  period July 1, 1992 to June 30, 1993, and covering the  period  July  1,
    23  1993  to June 30, 1994, and covering the period July 1, 1994 to June 30,
    24  1995, and covering the period July 1, 1995 to June 30, 1996, and  cover-
    25  ing  the  period  July 1, 1996 to June 30, 1997, and covering the period
    26  July 1, 1997 to June 30, 1998, and covering the period July 1,  1998  to
    27  June  30,  1999,  and covering the period July 1, 1999 to June 30, 2000,
    28  and covering the period July 1, 2000 to June 30, 2001, and covering  the
    29  period  July  1, 2001 to October 29, 2001, and covering the period April
    30  1, 2002 to June 30, 2002, and covering the period July 1, 2002  to  June
    31  30,  2003,  and  covering  the period July 1, 2003 to June 30, 2004, and
    32  covering the period July 1, 2004 to June  30,  2005,  and  covering  the
    33  period  July  1,  2005 to June 30, 2006, and covering the period July 1,
    34  2006 to June 30, 2007 for a  physician  or  dentist  where  such  excess
    35  insurance coverage or equivalent excess coverage is cancelled in accord-
    36  ance with paragraph (c) of this subdivision.
    37    §  73.  Section  40  of  chapter 266 of the laws of 1986, amending the
    38  civil practice law and rules and other laws relating to malpractice  and
    39  professional medical conduct, as amended by section 4 of part G of chap-
    40  ter 120 of the laws of 2004, is amended to read as follows:
    41    §  40. The superintendent of insurance shall establish rates for poli-
    42  cies providing coverage for physicians and surgeons medical  malpractice
    43  for the periods commencing July 1, 1985 and ending June 30, [2005] 2007.
    44  The   superintendent  shall  direct  insurers  to  establish  segregated
    45  accounts for premiums, payments, reserves and investment income  attrib-
    46  utable to such premium periods and shall require periodic reports by the
    47  insurers  regarding  claims and expenses attributable to such periods to
    48  monitor whether such accounts will be sufficient to meet incurred claims
    49  and expenses. On or after July 1, 1989, the superintendent shall  impose
    50  a  surcharge  on  premiums  to  satisfy  a  projected deficiency that is
    51  attributable to the premium levels established pursuant to this  section
    52  for  such  periods;  provided, however, that such annual surcharge shall
    53  not exceed eight percent of the established rate until  July  1,  [2005]
    54  2007, at which time and thereafter such surcharge shall not exceed twen-
    55  ty-five  percent  of  the  approved  adequate rate, and that such annual
    56  surcharges shall continue for such period of time as shall be sufficient
        S. 992                             87                            A. 1922
 
     1  to satisfy such deficiency. On and after July  1,  1989,  the  surcharge
     2  prescribed  by  this section shall be retained by insurers to the extent
     3  that they insured physicians  and  surgeons  during  the  July  1,  1985
     4  through  June  30,  [2005]  2007 policy periods; in the event and to the
     5  extent physicians and surgeons were insured by  another  insurer  during
     6  such  periods, all or a pro rata share of the surcharge, as the case may
     7  be, shall be remitted to such other insurer in accordance with rules and
     8  regulations  to  be  promulgated  by  the  superintendent.    Surcharges
     9  collected  from physicians and surgeons who were not insured during such
    10  policy periods shall be apportioned among all insurers in proportion  to
    11  the  premium  written  by  each insurer during such policy periods; if a
    12  physician or surgeon was insured by an insurer subject to  rates  estab-
    13  lished by the superintendent during such policy periods, and at any time
    14  thereafter  a  hospital,  health  maintenance  organization, employer or
    15  institution is responsible for responding in damages for liability aris-
    16  ing out of such physician's or  surgeon's  practice  of  medicine,  such
    17  responsible entity shall also remit to such prior insurer the equivalent
    18  amount  that  would then be collected as a surcharge if the physician or
    19  surgeon had continued to remain insured by such prior  insurer.  In  the
    20  event  any  insurer that provided coverage during such policy periods is
    21  in liquidation, the  property/casualty  insurance  security  fund  shall
    22  receive  the  portion  of surcharges to which the insurer in liquidation
    23  would have been entitled. The  surcharges  authorized  herein  shall  be
    24  deemed  to  be  income  earned  for  the purposes of section 2303 of the
    25  insurance law.  The superintendent, in establishing adequate  rates  and
    26  in  determining any projected deficiency pursuant to the requirements of
    27  this section and the  insurance  law,  shall  give  substantial  weight,
    28  determined  in  his  discretion  and judgment, to the prospective antic-
    29  ipated effect of any regulations promulgated and laws  enacted  and  the
    30  public  benefit  of  stabilizing  malpractice  rates and minimizing rate
    31  level fluctuation during the period of time necessary for  the  develop-
    32  ment  of more reliable statistical experience as to the efficacy of such
    33  laws and regulations affecting medical, dental or podiatric  malpractice
    34  enacted or promulgated in 1985, 1986, by this act and at any other time.
    35  Notwithstanding any provision of the insurance law, rates already estab-
    36  lished  and  to  be  established  by the superintendent pursuant to this
    37  section are deemed adequate if such rates would be adequate  when  taken
    38  together with the maximum authorized annual surcharges to be imposed for
    39  a reasonable period of time whether or not any such annual surcharge has
    40  been actually imposed as of the establishment of such rates.
    41    § 74. Section 5 and subdivisions (a) and (e) of section 6 of part J of
    42  chapter  63 of the laws of 2001, amending chapter 20 of the laws of 2001
    43  amending the military law and other laws relating  to  making  appropri-
    44  ations  for the support of government, as amended by section 5 of part G
    45  of chapter 120 of the laws of 2004, are amended to read as follows:
    46    § 5. The superintendent of insurance and the  commissioner  of  health
    47  shall  determine,  no  later than June 15, 2002, June 15, 2003, June 15,
    48  2004, [and] June 15, 2005, June 15, 2006 and June 15, 2007,  the  amount
    49  of funds available in the hospital excess liability pool, created pursu-
    50  ant  to  section 18 of chapter 266 of the laws of 1986, and whether such
    51  funds are sufficient for purposes of purchasing excess insurance  cover-
    52  age for eligible participating physicians and dentists during the period
    53  July 1, 2001 to June 30, 2002, or July 1, 2002 to June 30, 2003, or July
    54  1,  2003  to June 30, 2004, or July 1, 2004 to June 30, 2005, or July 1,
    55  2005 to June 30, 2006, or July 1, 2006 to June 30, 2007, as applicable.
        S. 992                             88                            A. 1922
 
     1    (a) This section shall be effective only upon a determination,  pursu-
     2  ant  to section five of this act, by the superintendent of insurance and
     3  the commissioner of health, and a certification of such determination to
     4  the state director of the budget, the chair of the senate  committee  on
     5  finance  and the chair of the assembly committee on ways and means, that
     6  the amount of funds in  the  hospital  excess  liability  pool,  created
     7  pursuant  to  section 18 of chapter 266 of the laws of 1986, is insuffi-
     8  cient for purposes of purchasing excess insurance coverage for  eligible
     9  participating  physicians and dentists during the period July 1, 2001 to
    10  June 30, 2002, or July 1, 2002 to June 30, 2003, or July 1, 2003 to June
    11  30, 2004, or July 1, 2004 to June 30, 2005, or July 1, 2005 to June  30,
    12  2006, or July 1, 2006 to June 30, 2007, as applicable.
    13    (e)  The  commissioner  of  health  shall  transfer for deposit to the
    14  hospital excess liability pool created pursuant to section 18 of chapter
    15  266 of the laws of 1986 such amounts as directed by  the  superintendent
    16  of insurance for the purchase of excess liability insurance coverage for
    17  eligible  participating physicians and dentists for the policy year July
    18  1, 2001 to June 30, 2002, or July 1, 2002 to June 30, 2003, or  July  1,
    19  2003 to June 30, 2004, or July 1, 2004 to June 30, 2005, or July 1, 2005
    20  to  June  30, 2006, or July 1, 2006 to June 30, 2007, as applicable, and
    21  the cost of administering the hospital excess liability  pool  for  such
    22  applicable  policy year,  pursuant to the program established in chapter
    23  266 of the laws of 1986, as amended, no later than June 15,  2002,  June
    24  15,  2003,  June  15, 2004, [and] June 15, 2005, June 15, 2006, and June
    25  15, 2007, as applicable.
    26    § 75. Subdivision 1 of section 2111 of the public health law, as added
    27  by section 21 of part C of chapter 58 of the laws of 2004, is amended to
    28  read as follows:
    29    1. The department may establish [up to six] disease management  demon-
    30  stration programs through a request for proposals process to enhance the
    31  quality  and  cost-effectiveness  of  care rendered to medicaid-eligible
    32  persons with chronic health problems whose care and  treatment,  because
    33  of  one  or  more  hospitalizations  or  other health care requirements,
    34  results in high medicaid expenditures. In order to be eligible to  spon-
    35  sor  and  to  undertake  a disease management demonstration program, the
    36  proposed sponsor may be a not-for-profit, for-profit or local government
    37  organization that has demonstrated expertise in the management or  coor-
    38  dination  of care to persons with chronic diseases or that has the expe-
    39  rience  of  providing  cost-effective  community-based  care   to   such
    40  patients,  or  in  the  case  of  a  local  government organization, has
    41  expressed a strong willingness to sponsor such a program. The department
    42  may  also  approve  disease  management  demonstration  programs   which
    43  include,  but  are  not  limited  to,  the  promotion  of  adherence  to
    44  evidence-based guidelines, improvement of provider and patient  communi-
    45  cation  and  provide information on provider and beneficiary utilization
    46  of services. [The department shall grant no fewer than six demonstration
    47  programs, no more than one-third of such programs shall be  selected  to
    48  provide  these services in any single social services district; provided
    49  further,  where  the  department  grants  less  than  six  demonstration
    50  programs,  no  more  than  one such program shall be selected to provide
    51  these services in any single social services district.]  The  department
    52  shall  approve  disease  management  demonstration  programs  which  are
    53  geographically diverse and representative of both urban and rural social
    54  services districts. The program sponsor must establish, to the satisfac-
    55  tion of the department, its capacity  to  enroll  and  serve  sufficient
        S. 992                             89                            A. 1922
 
     1  numbers of enrollees to demonstrate the cost-effectiveness of the demon-
     2  stration program.
     3    § 76. Subdivision 5 of section 2111 of the public health law, as added
     4  by section 21 of part C of chapter 58 of the laws of 2004, is amended to
     5  read as follows:
     6    5.  The  department  shall  be responsible for monitoring the quality,
     7  appropriateness and cost-effectiveness of a demonstration  program.  The
     8  department  shall utilize, to the extent possible, all potential sources
     9  of funding for demonstration programs, including, but  not  limited  to,
    10  private  payments[,]  and  donations[, and any funding or shared savings
    11  that may be available through federal waivers or otherwise under  titles
    12  18 and 19 of the federal social security act.  Services provided as part
    13  of  a  demonstration  program  and  related  administrative expenses not
    14  otherwise eligible for coverage under these  or  other  funding  sources
    15  shall be eligible for reimbursement under the medical assistance program
    16  for the purposes of this section only if federal financial participation
    17  is  available].    All such funds shall be deposited by the commissioner
    18  and credited to the disease management account  which  shall  be  estab-
    19  lished  by  the  comptroller  in  the  special revenue-other fund. Addi-
    20  tionally, to the extent of funds appropriated therefor, medical  assist-
    21  ance  funds,  including  any  funding  or  shared  savings as may become
    22  available through federal waivers or otherwise under titles 18 and 19 of
    23  the federal social security act, may  be  used  by  the  department  for
    24  expenditures in support of the disease management program.
    25    § 77. Subdivision 2 of section 2816 of the public health law, as added
    26  by chapter 225 of the laws of 2001, is amended to read as follows:
    27    2.  Regulations  governing the statewide planning and research cooper-
    28  ative system shall include, but not be limited to, the following:
    29    (a) Specification of patient and other data elements and format to  be
    30  reported including data related to:
    31    (i) inpatient hospitalization data from general hospitals;
    32    (ii)  ambulatory  surgery  data from hospital-based ambulatory surgery
    33  services and all other ambulatory surgery facilities licensed under this
    34  article;
    35    (iii) emergency department data from general hospitals[.];
    36    (iv) all other ambulatory care data from general hospitals  and  diag-
    37  nostic and treatment centers licensed under this article.
    38    (b)  Standards  to  assure  the  protection of patient privacy in data
    39  collected and released under this section.
    40    (c) Standards for the publication and  release  of  data  reported  in
    41  accordance with this section.
    42    §  78.  Subparagraphs (ii) and (iii) of paragraph (a) of subdivision 6
    43  of section 4403-f of the public health law, as added by chapter  659  of
    44  the laws of 1997, are amended to read as follows:
    45    (ii)  [no more than five of the twenty-four certificates of authority,
    46  inclusive of those certificates issued to entities initially  authorized
    47  to  operate as an approved managed long term care demonstration pursuant
    48  to paragraph (e) of this subdivision may be issued  to  eligible  appli-
    49  cants which are, or are owned or controlled by one or more entities that
    50  have  received  a  certificate  of  authority pursuant to either section
    51  forty-four hundred  three,  forty-four  hundred  three-a  or  forty-four
    52  hundred  eight-a  of this article (as added by chapter six hundred thir-
    53  ty-nine of the laws of nineteen hundred ninety-six) or a health  mainte-
    54  nance  organization organized under article forty-three of the insurance
    55  law provided further, that no more than  one  such  certificate  may  be
    56  issued  to  an  eligible applicant described in this subparagraph in the
        S. 992                             90                            A. 1922
 
     1  first twelve months following the effective date of this section, and no
     2  more than two such certificates may be  issued  to  eligible  applicants
     3  described  in  this  subparagraph  in the first twelve months commencing
     4  with  the  selection,  pursuant  to a request for proposals, of eligible
     5  applicants to operate managed long term  care  plans  pursuant  to  this
     6  paragraph.  For  purposes of this subparagraph, "control" shall exist if
     7  an entity or entities designated in this subparagraph directly or  indi-
     8  rectly  own,  control, or hold the power to vote ten percent or more, in
     9  the aggregate, of the voting securities or voting rights of such  eligi-
    10  ble  applicant, or are corporate members of an eligible applicant organ-
    11  ized as a not-for-profit corporation;
    12    (iii)] absent federal approvals as may be  necessary  to  achieve  the
    13  full  capitation  requirements  of paragraph (g) of subdivision three of
    14  this section, the commissioner shall approve no more than eight  certif-
    15  icates of authority pursuant to this paragraph to operate a managed long
    16  term care plan which requires such federal approvals.
    17    § 78-a. Paragraph (e) of subdivision 6 of section 4403-f of the public
    18  health law, as amended by section 19 of part C of chapter 58 of the laws
    19  of 2004, is amended to read as follows:
    20    (e) The commissioner, the majority leader of the senate and the speak-
    21  er  of  the  assembly  may each designate in writing up to four eligible
    22  applicants as approved managed long term care demonstrations. Subsequent
    23  to such designation, the commissioner and the superintendent  of  insur-
    24  ance  shall  impose terms and conditions pursuant to a written agreement
    25  with each such demonstration, not inconsistent with this section,  under
    26  which  such  demonstrations  shall be authorized to operate. If any such
    27  demonstration, that has been designated by the majority  leader  of  the
    28  senate  or  the speaker of the assembly, has not commenced operations by
    29  January first, two thousand four, the majority leader of the  senate  or
    30  the  speaker  of  the assembly, as the case may be, may, consistent with
    31  this paragraph, rescind its designation as an approved managed long term
    32  care demonstration and its authorization  to  operate,  and,  consistent
    33  with  this  paragraph,  designate  an alternate applicant as an approved
    34  managed long term care demonstration.
    35    § 79. Section 4 of chapter 495 of  the  laws  of  2004,  amending  the
    36  insurance  law  and the public health law relating to the New York state
    37  health  insurance  continuation  assistance  demonstration  project,  is
    38  amended to read as follows:
    39    §  4.  This  act  shall take effect on the sixtieth day after it shall
    40  have become a law; provided, however, that  this  act  shall  remain  in
    41  effect  until  July 1, [2005] 2007 when upon such date the provisions of
    42  this act shall expire and be deemed repealed; provided, further, that  a
    43  displaced  worker shall be eligible for continuation assistance retroac-
    44  tive to July 1, 2004.
    45    § 80. The public health law is amended by adding a new section  2802-a
    46  to read as follows:
    47    §  2802-a.  Transitional  care  unit program. 1.   Notwithstanding any
    48  other provision of law to the contrary, the commissioner  is  authorized
    49  to  approve  general  hospitals within the state to operate transitional
    50  care units by and within such general hospitals. For  purposes  of  this
    51  section, "transitional care" shall mean sub acute care services provided
    52  to  patients  of  a  general  hospital  who no longer require acute care
    53  general hospital inpatient services, but continue  to  need  specialized
    54  medical,  nursing  and other hospital ancillary services and are not yet
    55  appropriate for discharge.
        S. 992                             91                            A. 1922
 
     1    2. In order to receive approval from the  commissioner  to  operate  a
     2  transitional  care  unit  and  to  provide transitional care services, a
     3  general hospital shall file an application on  forms  prescribed  by  or
     4  acceptable to the commissioner.
     5    (a)  The  commissioner  may  evaluate  such  applications  in a manner
     6  consistent with  section  twenty-eight  hundred  two  of  this  article,
     7  provided  that  the  commissioner may waive review and recommendation by
     8  the state hospital review  and  planning  council.  In  conducting  such
     9  review,  the  commissioner  shall  give  consideration to the geographic
    10  distribution of applicants throughout the state,  so  that  applications
    11  may be approved from the various geographic regions of the state.
    12    (b)  The care provided in a transitional care unit shall be limited in
    13  duration and designed to resolve a  patient's  sub  acute  care  medical
    14  problems  and  result  in the timely and appropriate discharge of such a
    15  patient to a home, residential health care facility or other appropriate
    16  setting.
    17    (c) In order to be approved to operate a transitional care unit and to
    18  provide transitional care services, an applicant must  comply  with  and
    19  meet  all  applicable  requirements  of  and conditions of participation
    20  under title XVIII of the federal Social Security Act (Medicare).
    21    3. The commissioner shall report to the governor and  the  legislature
    22  concerning the implementation of this section and the operation of tran-
    23  sitional  care units within three years after the effective date of this
    24  section.
    25    § 81. Notwithstanding any contrary provision of law, the  commissioner
    26  of  health is authorized, within amounts made available from funds allo-
    27  cated pursuant to paragraph (ww) of subdivision one of section 2807-v of
    28  the public health law, to make grants up to an aggregate amount  not  to
    29  exceed  one million five hundred thousand dollars to facilities licensed
    30  under article 28 of the  public  health  law  for  the  purpose  of  the
    31  purchase  and  operation  of mobile dental clinic units for use in those
    32  areas of the state which are underserved with regard  to  dental  clinic
    33  services.   Notwithstanding the provisions of section one hundred twelve
    34  of the state finance law or any other provision of the state finance law
    35  or any other law, grants made pursuant to this section may  be  made  by
    36  the  commissioner  of  health  without  a competitive bid or request for
    37  proposal process.
    38    § 82. Title VIII of article 25 of the public health law, as  added  by
    39  chapter 604 of the laws of 2003, is amended to read as follows:
    40                                 TITLE VIII
    41                    CHILDHOOD OBESITY PREVENTION PROGRAM
    42  Section 2599-a. Childhood obesity prevention program; establishment.
    43          2599-b. Program development.
    44          2599-c. School-based  childhood  obesity prevention and physical
    45                    activity programs.
    46          2599-d. Powers of commissioner.
    47    § 2599-a. Childhood obesity  prevention  program;  establishment.  The
    48  childhood  obesity  prevention program is established within the depart-
    49  ment.
    50    § 2599-b. Program development. 1. The program  shall  be  designed  to
    51  prevent  and  reduce the incidence and prevalence of obesity in children
    52  and adolescents, especially among populations with high rates of obesity
    53  and obesity-related health complications including, but not limited  to,
    54  diabetes, heart disease, cancer, osteoarthritis, asthma and other condi-
    55  tions.  The  program  shall  use recommendations and goals of the United
    56  States departments of agriculture and health  and  human  services,  the
        S. 992                             92                            A. 1922
 
     1  surgeon general and centers for disease control in developing and imple-
     2  menting   guidelines  for  nutrition  education  and  physical  activity
     3  projects as part of obesity prevention efforts. The content  and  imple-
     4  mentation  of  the  program  shall  stress  the  benefits  of choosing a
     5  balanced, healthful diet from the many options available  to  consumers,
     6  without  specifically  targeting  the elimination of any particular food
     7  group, food product or food-related industry.
     8    2. The childhood obesity prevention program [shall] may  include,  but
     9  not be limited to:
    10    (a)  developing  media health promotion campaigns targeted to children
    11  and adolescents and their parents and caregivers that emphasize increas-
    12  ing consumption of low-calorie, high-nutrient foods, decreasing consump-
    13  tion of high-calorie, low-nutrient foods and increasing physical  activ-
    14  ity designed to prevent or reduce obesity;
    15    (b)  establishing  school-based childhood obesity prevention nutrition
    16  education and physical activity programs including programs described in
    17  section twenty-five hundred ninety-nine of  this  article,  as  well  as
    18  other  programs  with linkages to physical and health education courses,
    19  and which utilize the school health index of  the  National  Center  for
    20  Chronic  Disease  Prevention  and  Health  Promotion or other recognized
    21  school health assessment;
    22    (c) establishing community-based childhood obesity  prevention  nutri-
    23  tion  education  and physical activity programs including programs which
    24  involve parents and caregivers, and which encourage  communities,  fami-
    25  lies,  child  care and other settings to provide safe and adequate space
    26  and time for physical activity and encourage a healthy diet;
    27    (d) coordinating with the state education  department,  department  of
    28  agriculture  and markets, office of parks, recreation and historic pres-
    29  ervation, office of temporary and disability assistance, office of chil-
    30  dren and family services and other federal, state and local agencies  to
    31  incorporate  strategies  to  prevent  and  reduce childhood obesity into
    32  government food assistance, health, education and recreation programs;
    33    (e) sponsoring periodic conferences  or  meetings  to  bring  together
    34  experts in nutrition, exercise, public health, mental health, education,
    35  parenting,  media, food marketing, food security, agriculture, community
    36  planning and other disciplines to examine  societal-based  solutions  to
    37  the  problem  of  childhood obesity and issue guidelines and recommenda-
    38  tions for New York state policy and programs; [and]
    39    (f) developing training programs for medical and other health  profes-
    40  sionals to teach practical skills in nutrition and exercise education to
    41  children and their parents and caregivers; and
    42    (g)  screening  for  overweight  and obesity for any children aged two
    43  through eighteen years, using body mass index appropriate  for  age  and
    44  gender, and notification of parents of BMI status.
    45    3.  The  department shall periodically collect and analyze information
    46  from schools, health and nutrition programs and other sources to  deter-
    47  mine the prevalence of childhood obesity in New York state, and to eval-
    48  uate, to the extent possible, the effectiveness of the childhood obesity
    49  prevention program.
    50    §  2599-c.  School-based  childhood  obesity  prevention  and physical
    51  activity programs. The commissioner shall encourage the establishment of
    52  school-based childhood obesity prevention and physical activity programs
    53  that promote:
    54    1. A healthy school  environment,  including  physical  and  aesthetic
    55  surroundings  and  culture  designed to prevent and reduce the incidence
    56  and prevalence of obesity; and
        S. 992                             93                            A. 1922
 
     1    2.  Parent/community  involvement,  including  an  integrated  school,
     2  parent,  and  community approach for enhancing the health and well-being
     3  of students.
     4    §  2599-d.  Powers  of  commissioner.  The commissioner may [directly]
     5  administer directly or through contract,  within  the  amount  of  funds
     6  [available]  allocated and within amounts appropriated pursuant to para-
     7  graph (k) of subdivision one of section twenty-eight hundred seven-v  of
     8  this chapter, the childhood obesity prevention program. The commissioner
     9  shall  also  make grants, within the amount of funds available therefor,
    10  for community-based projects targeted to high-risk populations to imple-
    11  ment the provisions of this title.
    12    § 83. The state finance law is amended by adding a new  section  92-dd
    13  to read as follows:
    14    §  92-dd. Health care reform act (HCRA) resources fund.  Notwithstand-
    15  ing any contrary provision of law, there is hereby  established  in  the
    16  joint  custody of the comptroller and the department of health a fund to
    17  be known as the health care reform act resources fund. Such  fund  shall
    18  be composed of the HCRA program account and the HCRA transition account,
    19  which  are  hereby  established,  and  such other existing or other duly
    20  authorized funds or accounts which the  director  of  the  budget,  upon
    21  recommendation  of  the  commissioner of health, may direct to be trans-
    22  ferred into the HCRA resources fund. Such fund shall be administered  in
    23  accordance with the following:
    24    (a)  On  and  after  April  first,  two thousand five, such fund shall
    25  consist of the revenues heretofore and hereafter collected  or  required
    26  to  be  deposited  pursuant  to paragraph (a) of subdivision eighteen of
    27  section twenty-eight hundred seven-c, and sections twenty-eight  hundred
    28  seven-j,  twenty-eight  hundred seven-s and twenty-eight hundred seven-t
    29  of the public health law, section four hundred  eighty-two  of  the  tax
    30  law,  subparagraph  (O)  of  paragraph four of subsection (j) of section
    31  four thousand three hundred one of the insurance  law,  section  twenty-
    32  seven  of  part A of chapter one of the laws of two thousand two and all
    33  other moneys credited or transferred thereto  from  any  other  fund  or
    34  source pursuant to law.
    35    (b)  The  pool  administrator  under contract with the commissioner of
    36  health pursuant to section twenty-eight hundred seven-y  of  the  public
    37  health  law shall continue to collect moneys required to be collected or
    38  deposited pursuant to paragraph (a) of subdivision eighteen  of  section
    39  twenty-eight hundred seven-c, and sections twenty-eight hundred seven-j,
    40  twenty-eight  hundred  seven-s  and  twenty-eight hundred seven-t of the
    41  public health law, and shall deposit such moneys in the  HCRA  resources
    42  fund.  The  comptroller shall deposit moneys collected or required to be
    43  deposited pursuant to section four hundred eighty-two of  the  tax  law,
    44  subparagraph  (O)  of  paragraph  four of subsection (j) of section four
    45  thousand three hundred one of the insurance law, section twenty-seven of
    46  part A of chapter one of the laws of two  thousand  two  and  all  other
    47  moneys  credited  or  transferred  thereto from any other fund or source
    48  pursuant to law in the HCRA resources fund.
    49    (c) The pool administrator shall, from appropriated funds  transferred
    50  to  the  pool  administrator  from  the  comptroller,  continue  to make
    51  payments as required pursuant to sections twenty-eight hundred  seven-k,
    52  twenty-eight  hundred  seven-m  and  twenty-eight hundred seven-w of the
    53  public health law, paragraph (e) of subdivision twenty-five  of  section
    54  twenty-eight  hundred  seven-c  of the public health law, paragraphs (b)
    55  and (c) of subdivision thirty of section twenty-five hundred seven-c  of
    56  the  public health law, paragraph (b) of subdivision eighteen of section
        S. 992                             94                            A. 1922
 
     1  twenty-eight hundred eight of the public health law,  subdivision  seven
     2  of  section  twenty-five  hundred-d of the public health law and section
     3  eighty-eight of chapter one of the laws of nineteen hundred ninety-nine.
     4    (d)  Moneys in the health care reform act resources fund shall be kept
     5  separate from and shall not be commingled with any other moneys  in  the
     6  joint or sole custody of the comptroller and the department of health.
     7    (e)  Moneys  of  the fund, following appropriation by the legislature,
     8  shall be expended  in  accordance  with  sections  twenty-eight  hundred
     9  seven-k, twenty-eight hundred seven-l, twenty-eight hundred seven-m, and
    10  twenty-eight  hundred  seven-v  of  the public health law, pursuant to a
    11  certificate of approval of availability issued by the  director  of  the
    12  budget,  upon the recommendation of the commissioner of health, or where
    13  appropriate, the superintendent of insurance, the commissioner of mental
    14  health and the director of the state office for the aging, and a copy of
    15  such certificate filed with the state comptroller,  the  chairperson  of
    16  the  senate  finance  committee and the chairperson of the assembly ways
    17  and means committee.
    18    (f) The moneys, following allocation, shall be paid out of the fund on
    19  the audit and warrant  of  the  comptroller  on  vouchers  certified  or
    20  approved  by the commissioner of health, or by an officer or employee of
    21  the department of health designated by the commissioner.
    22    (g) Upon the direction of the director of the budget, the state  comp-
    23  troller shall transfer amounts up to the undisbursed balance of existing
    24  funds  and  accounts supported by revenues collected pursuant to HCRA to
    25  the HCRA resources fund.
    26    (h) The comptroller shall provide  the  pool  administrator  with  any
    27  information  needed, in a form or format prescribed by the pool adminis-
    28  trator, to meet health care reform act  reporting  requirements  as  set
    29  forth  in  article twenty-eight of the public health law or as otherwise
    30  provided by law.
    31    (i) The commissioner of health and the  comptroller  are  directed  to
    32  develop  an expedited process to make immediate payments to any provider
    33  or an immediate transfer of funds to  the  pool  administrator  for  the
    34  purposes  of  making necessary distributions, within available appropri-
    35  ations  therefor,  in  accordance  with  sections  twenty-eight  hundred
    36  seven-k, twenty-eight hundred seven-l, twenty-eight hundred seven-m, and
    37  twenty-eight  hundred  seven-v of the public health law to address emer-
    38  gency provider cash needs, as determined by the commissioner of health.
    39    § 84. Notwithstanding sections 2807-k, 2807-w  and  subdivision  four-
    40  teen-f of section 2807-c of the public health law and any other contrary
    41  provision  of  law,  rule  or regulation, the commissioner of health may
    42  issue regulations, with the approval of  the  director  of  the  budget,
    43  providing  for  the  distribution  to  general hospitals, within amounts
    44  appropriated therefor and  subject  to  the  receipt  of  all  necessary
    45  approvals  to  secure federal financial participation of funds allocated
    46  for periods on and after January 1, 2006, pursuant to paragraph  (a)  of
    47  subdivision  9 of section 2807-j of the public health law, and paragraph
    48  (p) of subdivision one of section 2807-v of the public health  law,  and
    49  rate  adjustments for periods on and after January 1, 2006 made pursuant
    50  to subdivision fourteen-f of section 2807-c of the public health law.
    51    § 85. Notwithstanding any contrary provision of law, the  commissioner
    52  of health is authorized to:
    53    (i) submit amendments to the state plan for medical assistance;
    54    (ii) submit applications for waivers, or applications for amendment of
    55  existing waivers, of provisions of the federal social security act; and
        S. 992                             95                            A. 1922
 
     1    (iii) promulgate or adopt any rules or regulations necessary to imple-
     2  ment  the  provisions  of  this  act and to obtain any federal approvals
     3  necessary  to  obtain  federal  financial  participation  for  care  and
     4  services  provided pursuant to the provisions of this act. Notwithstand-
     5  ing any inconsistent provision of the state administrative procedure act
     6  or  any  other provision of law, rule or regulation, the commissioner of
     7  health and any appropriate council are authorized  to  adopt,  amend  or
     8  promulgate  on  an  emergency  basis any regulation such commissioner or
     9  such council determines to be necessary to implement  any  provision  of
    10  this act on its effective date.
    11    § 86. Notwithstanding any inconsistent provision of law, rule or regu-
    12  lation, for purposes of implementing the provisions of the public health
    13  law and the social services law, references to titles XIX and XXI of the
    14  federal  social  security  act  in  the public health law and the social
    15  services law shall be deemed to include and also to mean  any  successor
    16  titles thereto under the federal social security act.
    17    § 87. Notwithstanding any inconsistent provision of law, rule or regu-
    18  lation,  the  effectiveness of subdivisions 4, 7, 7-a and 7-b of section
    19  2807 of the public health law and section 18 of chapter 2 of the laws of
    20  1988, as they relate to time frames  for  notice,  approval  or  certif-
    21  ication  of  rates  of  payment,  are  hereby  suspended  and shall, for
    22  purposes of implementing the provisions of this act, be deemed  to  have
    23  been  without  any  force  or effect from and after November 1, 2004 for
    24  such rates effective for the period January 1, 2005 through December 31,
    25  2005.
    26    § 88. Severability clause. If any clause, sentence, paragraph,  subdi-
    27  vision,  section  or  part of this act shall be adjudged by any court of
    28  competent jurisdiction to be invalid, such judgment  shall  not  affect,
    29  impair or invalidate the remainder thereof, but shall be confined in its
    30  operation  to  the  clause, sentence, paragraph, subdivision, section or
    31  part thereof directly involved in the controversy in which such judgment
    32  shall have been rendered. It is hereby declared to be the intent of  the
    33  legislature  that  this act would have been enacted even if such invalid
    34  provisions had not been included herein.
    35    § 89. This act shall take effect immediately provided, however, that:
    36    1. The amendment to subdivision six of section 47 of chapter 2 of  the
    37  laws  of  1998  made  by section fourteen of this act shall be deemed to
    38  have been in full force and effect on and after October 1, 2004;
    39    2. Section twenty of this act shall be deemed to  have  been  in  full
    40  force and effect on and after July 1, 2005;
    41    3.  Sections  forty-six  through  fifty of this act shall be deemed to
    42  have been in full force and effect on and after January 25, 2002;
    43    4. Section eighty of this act shall expire and be deemed repealed five
    44  years from the date on which it shall become law;
    45    5. Any rules or regulations necessary to implement the  provisions  of
    46  this  act  may be promulgated and any procedures, forms, or instructions
    47  necessary for such implementation may be adopted and issued on or  after
    48  the date this act shall have become a law;
    49    6. This act shall not be construed to alter, change, affect, impair or
    50  defeat any rights, obligations, duties or interests accrued, incurred or
    51  conferred prior to the enactment of this act;
    52    7.  The commissioner of health and the superintendent of insurance and
    53  any appropriate council  may  take  any  steps  necessary  to  implement
    54  provisions of this act prior to its effective date;
    55    8. Notwithstanding any inconsistent provision of the state administra-
    56  tive  procedure  act  or any other provision of law, rule or regulation,
        S. 992                             96                            A. 1922
 
     1  the commissioner of health and the superintendent of insurance  and  any
     2  appropriate  council is authorized to adopt or amend or promulgate on an
     3  emergency basis any regulation he or  she  or  such  council  determines
     4  necessary to implement any provision of this act on its effective date;
     5    9.  The  provisions of this act shall become effective notwithstanding
     6  the failure of the commissioner  of  health  or  the  superintendent  of
     7  insurance  or  any  council  to adopt or amend or promulgate regulations
     8  implementing this act;
     9    10. The amendments to subdivisions 4 and 5 and paragraph (g) of subdi-
    10  vision 2 of section 2511 of the  public  health  law  made  by  sections
    11  sixty-one,  sixty-four  and sixty-seven of this act shall not affect the
    12  expiration of such subdivisions and shall be deemed to expire therewith;
    13    11. The amendments to section 2807-j of the public health law made  by
    14  sections thirty-four, thirty-six, thirty-seven, forty-four and fifty-two
    15  of this act shall not affect the expiration of such section and shall be
    16  deemed to expire therewith;
    17    12.  The amendments to section 2807-s of the public health law made by
    18  sections twenty-nine, thirty, thirty-one, thirty-two,  thirty-three  and
    19  fifty-three  of this act shall not affect the expiration of such section
    20  and shall be deemed to expire therewith;
    21    13. The amendments to section 2807-t of the public health law made  by
    22  section thirty-eight of this act shall not affect the expiration of such
    23  section and shall be deemed to expire therewith;
    24    14.  The  amendments  to  paragraph  (i-1) of subdivision 1 of section
    25  2807-v of the public health law made by section three of this act  shall
    26  not  affect  the  repeal  of  such  paragraph  and shall be deemed to be
    27  repealed therewith; and
    28    15. The amendments to section 4403-f of the public health law made  by
    29  sections  seventy-eight and seventy-eight-a of this act shall not affect
    30  the repeal of such section and shall be deemed to be repealed therewith.
 
    31                                   PART C
 
    32    Section 1.  (a) Notwithstanding the provisions of section 368-a of the
    33  social services law, or any other provision of law,  the  department  of
    34  health shall provide reimbursement for expenditures made by or on behalf
    35  of  social  services districts for medical assistance for needy persons,
    36  and the administration thereof, in accordance  with  the  provisions  of
    37  this  section;  provided,  however, that this section shall not apply to
    38  amounts expended for health care services under section  369-ee  of  the
    39  social  services  law,  which  amounts shall be reimbursed in accordance
    40  with paragraph (t) of subdivision 1 of section 368-a  of  such  law  and
    41  shall be excluded from all calculations made pursuant to this section.
    42    (b)  Commencing with the period April 1, 2005 though March 31, 2006, a
    43  social services  district's  yearly  net  share  of  medical  assistance
    44  expenditures  shall  be  calculated  in relation to a reimbursement base
    45  year which, for purposes of this section, is defined as January 1,  2005
    46  through  December  31, 2005. The final base year expenditure calculation
    47  for each social services district shall be made by the  commissioner  of
    48  health,  and  approved by the director of the division of the budget, no
    49  later than June 30, 2006.  Such calculations shall be  based  on  actual
    50  expenditures  made  by  or  on  behalf of social services districts, and
    51  revenues received by social services districts, during the base year and
    52  shall  be  made  without  regard  to  expenditures  made,  and  revenues
    53  received,  outside  the  base year that are related to services provided
    54  during, or prior to, the base year. Such base year calculations shall be
        S. 992                             97                            A. 1922
 
     1  based  on  the  social  services  district  medical  assistance   shares
     2  provisions in effect on January 1, 2005.
     3    (c)  Commencing  with  the  calendar  year  beginning January 1, 2006,
     4  calendar year social services district  medical  assistance  expenditure
     5  amounts  for each social services district shall be calculated by multi-
     6  plying the results of the calculations performed pursuant  to  paragraph
     7  (b) of this section by a non-compounded trend factor, as follows:
     8    (i) 2006 (January 1, 2006 through December 31, 2006):  3.5%;
     9    (ii)  2007  (January 1, 2007 through December 31, 2007):  6.75% (3.25%
    10  plus the prior year's 3.5%);
    11    (iii) 2008 (January 1, 2008 through December 31,  2008):    9.75%  (3%
    12  plus the prior year's 6.75%);
    13    (iv)  2009  (January  1,  2009  through  December  31, 2009), and each
    14  succeeding calendar year: prior year's trend factor percentage plus 3%.
    15    (d) The base year expenditure amounts calculated pursuant to paragraph
    16  (b) of this section and  the  calendar  year  social  services  district
    17  expenditure amounts calculated pursuant to paragraph (c) of this section
    18  shall  be  converted  into  state  fiscal  year social services district
    19  expenditure cap amounts for each social services district such that each
    20  such state fiscal year amount is proportional to the portions of the two
    21  calendar years within each fiscal year, as follows:
    22    (i) fiscal year 2005-2006 (April 1, 2005 through March 31, 2006):  75%
    23  of the base year amount plus 25% of the 2006 calendar year amount;
    24    (ii) fiscal year 2006-2007 (April 1, 2006 through March 31, 2007): 75%
    25  of  the  2006  year  calendar  amount plus 25% of the 2007 calendar year
    26  amount;
    27    (iii) each succeeding fiscal year: 75%  of  the  first  calendar  year
    28  within  that  fiscal  year's amount plus 25% of the second calendar year
    29  within that fiscal year's amount.
    30    (e) No later than April 1, 2007,  the  commissioner  of  health  shall
    31  certify  the  2006-2007 fiscal year social services district expenditure
    32  cap amounts for each social services  district  calculated  pursuant  to
    33  subparagraph (ii) of paragraph (d) of this section and shall communicate
    34  such amounts to the commissioner of taxation and finance.
    35    (f)  Subject  to  paragraph (g) of this section, the state fiscal year
    36  social services district expenditure  cap  amount  calculated  for  each
    37  social services district pursuant to paragraph (d) of this section shall
    38  be  allotted  to  each  district during that fiscal year and paid to the
    39  department in equal weekly amounts in a manner to be determined  by  the
    40  commissioner and communicated to such districts and shall represent each
    41  district's  maximum  responsibility  for medical assistance expenditures
    42  governed by this section.  Commencing January 1, 2008, all such  amounts
    43  shall  be  deposited  into the general fund of the state treasury to the
    44  credit of the state purposes account therein.
    45    (g) (i) No allotment pursuant to paragraph (f) of this  section  shall
    46  be applied against a social services district during the period April 1,
    47  2005  through  December  31,  2005.    Social  services district medical
    48  assistance shares shall be determined for such period pursuant to shares
    49  provisions in effect on January 1, 2005.
    50    (ii) For the period January 1, 2006 through June 30, 2006, the commis-
    51  sioner is authorized to allot against each district an amount  based  on
    52  the  commissioner's  best  estimate  of  the final base year expenditure
    53  calculation required by paragraph (b) of this section.  Upon  completion
    54  of  such calculation, the commissioner shall, no later than December 31,
    55  2006, reconcile such estimated allotments with the  fiscal  year  social
        S. 992                             98                            A. 1922
 
     1  services district expenditure cap amounts calculated pursuant to subpar-
     2  agraphs (i) and (ii) of paragraph (d) of this section.
     3    (iii)  During each state fiscal year subject to the provisions of this
     4  section, the commissioner shall maintain an accounting, for each  social
     5  services  district, of the net amounts that would have been expended by,
     6  or on behalf of, such district had the social services district  medical
     7  assistance  shares  provisions in effect on January 1, 2005 been applied
     8  to such district. As soon as practicable after the  conclusion  of  each
     9  such  fiscal  year,  but  in  no  event  later than six months after the
    10  conclusion of each such fiscal year, the  commissioner  shall  reconcile
    11  such  net  amounts  with  such  fiscal  year's  social services district
    12  expenditure cap amount. Such reconciliation shall  be  based  on  actual
    13  expenditures  made  by  or  on  behalf of social services districts, and
    14  revenues received by social services districts, during such fiscal  year
    15  and  shall  be  made  without  regard to expenditures made, and revenues
    16  received, outside such fiscal year that are related to services provided
    17  during, or prior to, such fiscal year. The  commissioner  shall  pay  to
    18  each  social  services  district  the  amount,  if  any,  by  which such
    19  district's expenditure cap amount exceeds such net amount.
    20    § 2. (a) Commencing January  1,  2008,  at  the  option  of  a  social
    21  services district, such option to be exercised as described in paragraph
    22  (b) of this section, and notwithstanding any other provision of law, the
    23  department  of health shall provide reimbursement for the full amount of
    24  expenditures made by such district  for  medical  assistance  for  needy
    25  persons,   and  the  administration  thereof,  in  accordance  with  the
    26  provisions of this section.
    27    (b) Notwithstanding any provisions of state or local law, ordinance or
    28  resolution to the contrary:
    29    (i) A social services district shall exercise the option described  in
    30  this  section through the adoption of a resolution by its local legisla-
    31  tive body, in the form set forth in subparagraph (ii) of this paragraph,
    32  to elect the medical assistance reimbursement methodology set  forth  in
    33  paragraph (a) of this section and to elect the tax intercept methodology
    34  set  forth in subdivision (f) of section 1261 of the tax law or subdivi-
    35  sion (g) of section 1261 and subdivision (h) of section 1313 of the  tax
    36  law, as applicable. A social services district, acting through its local
    37  legislative  body, is hereby authorized to adopt such a resolution. Such
    38  a resolution shall be effective only if it is  adopted  exactly  as  set
    39  forth in subparagraph (ii) of this paragraph no later than September 30,
    40  2007,  and  a certified copy of such resolution is mailed to the commis-
    41  sioner of health by certified mail by such  date.  The  commissioner  of
    42  health shall, no later than October 31, 2007, certify to the commission-
    43  er  of  taxation  and  finance a list of those social services districts
    44  which have elected the  option  described  in  this  section.  A  social
    45  services district shall have no authority to rescind the exercise of the
    46  option described in this section.
    47    (ii) Form of resolution.
    48    Be  it  enacted by the (county or city) of (insert locality's name) as
    49  follows:
    50    Section one. The (county or city) of (insert locality's  name)  hereby
    51  elects the medical assistance reimbursement option and revenue intercept
    52  for Medicaid purposes described in section 2 of chapter (fill in chapter
    53  number) of the laws of 2005.
    54    Section 2. This resolution shall take effect immediately.
    55    § 3. The commissioner of health shall examine social services district
    56  expenditures  during calendar year 2005 for the purpose of assuring that
        S. 992                             99                            A. 1922
 
     1  local administrative or other actions were not taken for the purpose  of
     2  artificially diminishing medical assistance expenditures during the base
     3  year  established  under  paragraph  (b) of section one of this act. The
     4  commissioner  shall examine patterns of such expenditures that appear to
     5  be atypical when  compared  with  historical  expenditure  patterns  and
     6  trends  within  the  district.  If the commissioner determines that such
     7  actions were taken, the commissioner is authorized to  adjust  the  base
     8  year  medical  assistance calculation in the amount necessary to account
     9  for the impact of such actions.
    10    § 4. Notwithstanding the provisions of sections one and  two  of  this
    11  act,  the director of the division of the budget may, at his or her sole
    12  discretion, decrease a fiscal year social services district  expenditure
    13  cap  amount  calculated pursuant to paragraph (d) of section one of this
    14  act or a tax revenue intercept amount calculated pursuant to subdivision
    15  (f) or (g) of section 1261 of the tax law to account for  any  increases
    16  in  the  New  York  state  federal  medical assistance percentage amount
    17  established pursuant to the federal social security act.
    18    § 5. Notwithstanding the provisions of any law to  the  contrary,  the
    19  commissioner of health is authorized to approve social services district
    20  demonstration  programs  for  the  purposes  of demonstrating innovative
    21  methods of improving the delivery of quality health care services  in  a
    22  cost  effective  manner. The commissioner should evaluate the results of
    23  any such programs, including any savings, resulting therefrom. Any  such
    24  savings,  after  certification  by  the  director of the division of the
    25  budget, shall be shared equally  with  the  applicable  social  services
    26  district  in  a  manner  to be determined jointly by the commissioner of
    27  health and the director of the division of the budget.
    28    § 6. Section 1261 of the tax law is amended by adding two new subdivi-
    29  sions (f) and (g) to read as follows:
    30    (f) Notwithstanding any provision of state or local law, ordinance  or
    31  resolution  to the contrary, if the commissioner of health timely certi-
    32  fies to the commissioner that a county which imposes sales  and  compen-
    33  sating  use  taxes  pursuant  to the authority of section twelve hundred
    34  ten, twelve hundred ten-A, twelve hundred ten-B or twelve hundred  ten-C
    35  of  this  article  properly exercised its option by September thirtieth,
    36  two thousand seven, pursuant to section two of the chapter of  the  laws
    37  of  two  thousand five which added this subdivision, that such county be
    38  reimbursed for medical  assistance  expenditures  as  provided  in  such
    39  section  two  of such chapter, then the commissioner shall calculate the
    40  Medicaid amount of each such county. The amount due each month  to  each
    41  such  county  provided  for  in subdivision (c) of this section shall be
    42  reduced by the monthly Medicaid amount; and such monthly Medicaid amount
    43  of each such county shall instead be paid into the general fund  of  the
    44  state  treasury to the credit of the state purposes account therein. The
    45  calculation of each such county's Medicaid amount and  monthly  Medicaid
    46  amounts  and  the procedures governing the payment of such amounts shall
    47  be as follows:
    48    (1) The commissioner of health shall furnish the commissioner with the
    49  amount of every county's "two thousand  six-two  thousand  seven  fiscal
    50  year  social  services  district expenditure cap amount," as provided in
    51  paragraph (e) of section one of a chapter of the laws  of  two  thousand
    52  five  which  added this subdivision, as soon as practicable but no later
    53  than April first, two thousand seven.
    54    (2) The commissioner shall calculate the "Medicaid factor"  for  every
    55  county as follows and shall notify each county's chief fiscal officer of
        S. 992                             100                           A. 1922
 
     1  the  results of such calculation by April thirtieth, two thousand seven,
     2  to help each county determine whether to exercise such option:
     3    (A)  for a county in which no city exercises any prior right to impose
     4  sales or compensating use taxes authorized by section twelve hundred ten
     5  of this article, first, divide the total amount of sales and  compensat-
     6  ing  use  tax  distributions to such county during state fiscal year two
     7  thousand six-two thousand seven by the county's  general  rate  of  such
     8  taxes  during  such  period,  and then divide the county's "two thousand
     9  six-two thousand seven fiscal year social services district  expenditure
    10  cap amount" by the quotient of the first division;
    11    (B)  for a county in which one or more cities exercise any prior right
    12  to impose sales or compensating use taxes authorized by  section  twelve
    13  hundred  ten  of  this article and the combined rate of the county's and
    14  city's taxes in each such city equals the general rate of  the  county's
    15  taxes  on  similar  transactions  in the area of the county outside such
    16  city or cities, first, add the total amounts of sales  and  compensating
    17  use  tax distributions to such county and to each such city during state
    18  fiscal year two thousand six-two thousand seven and divide such  sum  by
    19  the  county's  general  rate  of such taxes during such period, and then
    20  divide the county's "two thousand six-two  thousand  seven  fiscal  year
    21  social  services district expenditure cap amount" by the quotient of the
    22  first division; and
    23    (C) for a county in which one or more cities exercise any prior  right
    24  to  impose  sales or compensating use taxes authorized by section twelve
    25  hundred ten of this article and the combined rate of  the  county's  and
    26  city's  taxes  in  any  such city does not equal the general rate of the
    27  county's taxes on similar transactions in the area of the county outside
    28  such city or cities:
    29    (i) for each such city, add the total amount of sales and compensating
    30  use tax distributions to such city during state fiscal year two thousand
    31  six-two thousand seven and divide  such  sum  by  the  city's  effective
    32  general  rate  of  such  taxes  during  such  period, then multiply such
    33  quotient by the amount by which the city's rate forced  a  reduction  in
    34  the  county's  rate  of  such taxes in such city during such period, and
    35  then
    36    (ii) add the amount derived in clause (i)  of  this  subparagraph  for
    37  each  such  city  to  the total amount of sales and compensating use tax
    38  distributions to such county during state fiscal year two thousand  six-
    39  two thousand seven;
    40    (iii) divide the total of the addition in clause (ii) of this subpara-
    41  graph by the county's general rate of such taxes during such period; and
    42    (iv)  divide  the county's "two thousand six-two thousand seven fiscal
    43  year social services district expenditure cap amount" by the quotient of
    44  the division in clause (iii) of this subparagraph.
    45    (D) The commissioner shall consider any change in a county's or city's
    46  general rate of sales and compensating  use  taxes  which  takes  effect
    47  during  state  fiscal  year  two thousand six-two thousand seven and the
    48  number of months such rates are in effect during such state fiscal  year
    49  in  order  to  perform  accurately the calculations provided for in this
    50  paragraph.
    51    (3) By the twelfth day of each month, commencing in January, two thou-
    52  sand eight, the  commissioner  shall  calculate  the  "monthly  Medicaid
    53  amount" of each such county which has made the election described in the
    54  opening  paragraph  of  this subdivision and certify such amounts to the
    55  comptroller. The comptroller shall reduce the amount due each  month  to
    56  each such county provided for in subdivision (c) of this section by such
        S. 992                             101                           A. 1922
 
     1  monthly  Medicaid  amount;  and the comptroller shall instead each month
     2  pay the monthly Medicaid amount of each such  county  into  the  general
     3  fund  of  the state treasury to the credit of the state purposes account
     4  therein, provided, however, that the comptroller, subject to the limita-
     5  tions  provided  in  paragraphs  five and six of this subdivision, shall
     6  each month collect the amount of Nassau county's reduction from  amounts
     7  payable  to  such  county by the Nassau county interim finance authority
     8  while such authority exists.
     9    (4) "Monthly Medicaid amount" shall mean the result of  the  following
    10  calculations:
    11    (A)  for  a  county  described in subparagraph (A) of paragraph two of
    12  this subdivision, first, the amount of  the  comptroller's  payment  due
    13  such a county in the immediately preceding month, as described in subdi-
    14  vision  (c)  of this section and as described in sections twelve hundred
    15  ten-A, twelve hundred ten-B and twelve hundred ten-C  of  this  article,
    16  but without regard to whether the comptroller is to pay all or a portion
    17  of  such  amount  to another entity described in subdivision (c) of this
    18  section and without regard to the revenue disposition provisions of such
    19  section twelve hundred ten-A, twelve hundred  ten-B  or  twelve  hundred
    20  ten-C,  and  considered  without regard to any Medicaid amount, shall be
    21  divided by the county's general rate of sales and compensating use taxes
    22  in such month; and the quotient of that division shall be multiplied  by
    23  the  Medicaid factor calculated as provided in subparagraph (A) of para-
    24  graph two of this subdivision.
    25    (B) for a county described in subparagraph (B)  of  paragraph  two  of
    26  this subdivision, first, add the amount of the comptroller's payment due
    27  any  city  in  such  a  county  in  the  immediately preceding month, as
    28  described in subdivision (c) of this section to the amount of the  comp-
    29  troller's  payment due such a county in the immediately preceding month,
    30  as described in subdivision (c) of this  section  and  as  described  in
    31  sections  twelve  hundred ten-A, twelve hundred ten-B and twelve hundred
    32  ten-C of this article, but without regard to whether the comptroller  is
    33  to  pay  all  or a portion of such amount to another entity described in
    34  subdivision (c) of this section and without regard to the revenue dispo-
    35  sition provisions of such section twelve hundred ten-A,  twelve  hundred
    36  ten-B  or  twelve  hundred  ten-C,  and considered without regard to any
    37  Medicaid amount, then divide the total of such amounts by  the  county's
    38  general  rate of sales and compensating use taxes in such month; and the
    39  quotient of that division shall be multiplied  by  the  Medicaid  factor
    40  calculated  as  provided  in  subparagraph  (B) of paragraph two of this
    41  subdivision.
    42    (C) For a county described in subparagraph (C)  of  paragraph  two  of
    43  this subdivision:
    44    (i)  with  respect  to  each  such city described in subparagraph (C),
    45  divide the amount of the comptroller's payment due each such city in the
    46  immediately preceding month, as described in  subdivision  (c)  of  this
    47  section,  by the effective general rate of such city's taxes during such
    48  month and multiply such quotient by the amount by which the city's  rate
    49  forced  a  reduction  in  the  county's  rate of such taxes in such city
    50  during such month;
    51    (ii) add the amount or amounts derived in clause (i) of this  subpara-
    52  graph  to the amount of the comptroller's payment due such county in the
    53  immediately preceding month, as described in  subdivision  (c)  of  this
    54  section  and  as  described  in  sections  twelve  hundred ten-A, twelve
    55  hundred ten-B and twelve hundred ten-C  of  this  article,  but  without
    56  regard  to  whether  the  comptroller is to pay all or a portion of such
        S. 992                             102                           A. 1922
 
     1  amount to another entity described in subdivision (c)  of  this  section
     2  and without regard to the revenue disposition provisions of such section
     3  twelve  hundred ten-A, twelve hundred ten-B or twelve hundred ten-C, and
     4  considered without regard to any Medicaid amount; and
     5    (iii) divide the total of the addition in clause (ii) of this subpara-
     6  graph  by the county's general rate of such taxes during such month, and
     7  the quotient of that division shall be multiplied by the Medicaid factor
     8  calculated as provided in subparagraph (C)  of  paragraph  two  of  this
     9  subdivision.
    10    (5)  If  for  any reason a county's monthly Medicaid amount is greater
    11  than the amount of the comptroller's net payment to the county for  that
    12  month  under  subdivision  (c) of this section and under sections twelve
    13  hundred ten-A, twelve hundred ten-B and twelve  hundred  ten-C  of  this
    14  article,  after  the comptroller has made any payments to other entities
    15  required by subdivision (c) of this section or  by  any  other  law  and
    16  after  any  payment,  deposit,  appropriation,  transfer  or expenditure
    17  required or authorized by such  section  twelve  hundred  ten-A,  twelve
    18  hundred  ten-B  or  twelve  hundred ten-C, the comptroller shall, at the
    19  same time that the comptroller makes the payment and reduction described
    20  in paragraph three of this subdivision, bill such county an amount equal
    21  to the difference and such county shall pay in full the amount  of  such
    22  bill  to  the  comptroller  by  the twenty-fifth day of such month. Such
    23  county shall use any funds available to it to pay such bill.  The  comp-
    24  troller shall deposit any such amounts received into the general fund of
    25  the state treasury to the credit of the state purposes account therein.
    26    (6)  If  a  county does not remit the required monies or pay in full a
    27  bill described in paragraph five of this subdivision by the twenty-fifth
    28  day of the month in accordance with paragraph five of this  subdivision,
    29  the comptroller shall, as soon as any other moneys payable to the county
    30  are  available, either deduct any amount not paid from the amount of the
    31  next payment or payments due such county pursuant to subdivision (c)  of
    32  this  section  until  such amount not paid has been recovered or, in the
    33  alternative and at the comptroller's discretion, deduct any  amount  not
    34  paid from the amount of any other moneys payable to such county from the
    35  comptroller  and  not  subject  to any lien or pledge for the benefit of
    36  bondholders of the Nassau county interim finance  authority  or  of  any
    37  public  benefit  corporation,  as  defined  in  section sixty-six of the
    38  general construction law, created by interstate compact or at least half
    39  of whose members are appointed by the governor, until  such  amount  not
    40  paid  has  been recovered.  The comptroller shall deposit any amounts so
    41  deducted and recovered into the general fund of the  state  treasury  to
    42  the credit of the state purposes account therein.
    43    (7)  This subdivision shall apply to payments required in respect of a
    44  county to be made on January twelfth, two thousand eight, and  thereaft-
    45  er.
    46    (8) Nothing in this subdivision shall be construed to relieve a county
    47  of  any  obligation  or commitment to distribute and pay or allocate net
    48  collections pursuant to this part, regardless whether such obligation or
    49  commitment arises before or after the date this subdivision  shall  have
    50  taken  effect,  or  to  preclude  a city in a county from exercising its
    51  prior rights under section twelve hundred twenty-four of  this  article.
    52  To the extent that a county's net collections have been diminished below
    53  a level sufficient to meet any such obligation or commitment as a result
    54  of the reductions or bills provided for in this subdivision, such county
    55  shall  hereby  be  authorized  to use any other funds available to it to
        S. 992                             103                           A. 1922
 
     1  meet such obligation or  commitment,  notwithstanding  any  law  to  the
     2  contrary.
     3    (9)  If a county adopts or amends a local law, ordinance or resolution
     4  to repeal its sales and compensating use taxes, then, effective  on  the
     5  first  day  of  the  first month on which such repeal takes effect, such
     6  county's resolution  electing  to  be  reimbursed  for  certain  medical
     7  assistance  expenditures  pursuant  to section two of the chapter of the
     8  laws of two thousand five which added this  subdivision  shall  also  be
     9  repealed automatically as of such date; and the commissioner shall noti-
    10  fy  the commissioner of health of such county's repeal of such taxes. In
    11  that event, as of such date, such county shall be treated as if  it  had
    12  never  made  such  election  for  purposes of such expenditures and such
    13  commissioner of health shall thenceforth compute the amount due  monthly
    14  from  such  county  for such expenditures pursuant to section one of the
    15  chapter of the laws of two thousand five which added this subdivision.
    16    (g) Notwithstanding any provision of state or local law, ordinance  or
    17  resolution  to the contrary, if the commissioner of health timely certi-
    18  fies to the commissioner that a city having a population of one  million
    19  or  more  in  which the taxes imposed by section eleven hundred seven of
    20  this chapter are in effect or which imposes sales and  compensating  use
    21  taxes  pursuant  to  the authority of section twelve hundred ten of this
    22  article properly exercised its option by September thirtieth, two  thou-
    23  sand  seven,  pursuant  to section two of the chapter of the laws of two
    24  thousand five which added this subdivision, that such city be reimbursed
    25  for medical assistance expenditures as provided in such section  two  of
    26  such  chapter, then the commissioner shall calculate the Medicaid amount
    27  of such a city. The amount due each month to such a city with respect to
    28  such taxes and certain other taxes shall be reduced; and the  amount  of
    29  each  such  reduction shall instead be paid into the general fund of the
    30  state treasury to the credit of the state purposes account therein.  The
    31  calculation  of  such  a  city's  Medicaid amount and reductions and the
    32  procedure governing the payment of such amounts are as follows:
    33    (1) The commissioner of health shall furnish the commissioner with the
    34  amount of such a city's "two thousand six-two thousand seven fiscal year
    35  social services district expenditure cap amount," as provided  in  para-
    36  graph (e) of section one of the chapter of the laws of two thousand five
    37  which  added  this subdivision, as soon as practicable but no later than
    38  April first, two thousand seven.
    39    (2) The commissioner shall use or calculate the following  amounts  in
    40  respect of such a city, which amounts shall be designated by the follow-
    41  ing  symbols, in order to determine the components of the monthly amount
    42  described in paragraph three of this subdivision and  shall  notify  the
    43  chief  fiscal  officer  of  such  city of the calculated value of "D" as
    44  described in this paragraph and such other information available  relat-
    45  ing  to  D,  by  April  thirtieth, two thousand seven, to help such city
    46  determine whether to exercise such option:
    47    (A) "A" shall equal the amount of such a city's "two thousand  six-two
    48  thousand  seven  fiscal  year  social  services district expenditure cap
    49  amount," as furnished by the commissioner of health  pursuant  to  para-
    50  graph one of this subdivision;
    51    (B)(i) "B1" shall equal the total amount of sales and compensating use
    52  tax distributions during state fiscal year two thousand six-two thousand
    53  seven  to  such  city  or  to a municipal assistance corporation on such
    54  city's behalf from taxes imposed in such city by section eleven  hundred
    55  seven  of  this  chapter, other than taxes imposed by subdivision (c) of
    56  this section, at the rate of three percent;
        S. 992                             104                           A. 1922
 
     1    (ii) "B2" shall equal the total  amount  of  sales  tax  distributions
     2  during  state  fiscal  year  two thousand six-two thousand seven to such
     3  city or to a municipal assistance corporation on such city's behalf from
     4  taxes imposed in such city by subdivision (c) of section eleven  hundred
     5  seven of this chapter, at the rate of three percent;
     6    (C) "C" shall equal the total amount of sales and compensating use tax
     7  distributions  during  state  fiscal  year two thousand six-two thousand
     8  seven to such city from its taxes imposed pursuant to the  authority  of
     9  section twelve hundred twelve-A of this article; and
    10    (D)  "D" shall be the "Base Year PIT intercept amount" and shall equal
    11  A less the sum of B1, B2 and C.
    12    (3) (A) Commencing in January, two thousand  eight,  the  commissioner
    13  shall calculate the monthly Medicaid amount ("MA") for such city accord-
    14  ing  to the following formula: MA equals {((En/Fn) + (Ep/Fp)) X (.03)} +
    15  (C/12) X (G) + (D/12) X (G); where C and D equal the  amounts  described
    16  in  paragraph  two  of this subdivision; "En" equals the current month's
    17  portion of revenues from taxes imposed by section eleven  hundred  seven
    18  of  this  chapter, excluding revenues from the tax on parking imposed by
    19  subdivision (c) of such section eleven hundred seven;  "Ep"  equals  the
    20  current  month's  revenues  from  such  tax  on parking; "Fn" equals the
    21  current month's general rate of sales and  use  taxes  imposed  by  such
    22  section  eleven  hundred  seven  or  pursuant  to  the authority of such
    23  section twelve hundred ten, other  than  on  parking;  "Fp"  equals  the
    24  current  month's  rate  of sales tax on parking under or pursuant to the
    25  authority of such section eleven hundred seven or twelve hundred ten, as
    26  the case may be; "G" equals a growth factor according to the  formula  G
    27  equals  {((En/Fn)  + (Ep/Fp))} divided by {(MB1/.04) + (MB2/.06)}; "MB1"
    28  equals the revenues from taxes imposed by section eleven  hundred  seven
    29  of  this chapter, excluding revenues from such tax on parking imposed by
    30  subdivision (c) of such section eleven hundred seven,  during  the  same
    31  month  of  state  fiscal year two thousand six-two thousand seven corre-
    32  sponding to the current month described  above;  and  "MB2"  equals  the
    33  revenues  from such tax on parking during the same month of state fiscal
    34  year two thousand six-two thousand seven corresponding  to  the  current
    35  month described above.
    36    (B)  Using  the amount of MA calculated each month in subparagraph (A)
    37  of this paragraph, the commissioner shall then calculate the amounts  of
    38  sales  and  use  tax  revenues  (E  + H, where E and H equal the amounts
    39  described in subparagraph (C) of this paragraph) and personal income tax
    40  revenues (PIT) of such city which are to be intercepted or billed for as
    41  described in this subdivision, according to the formula MA equals E +  H
    42  +  PIT,  as PIT is defined in subparagraph (D) of this paragraph. By the
    43  twelfth day of each month, commencing in January,  two  thousand  eight,
    44  the  commissioner shall establish the amount of E and H and certify such
    45  amounts to the comptroller and by  the  fifteenth  day  of  each  month,
    46  commencing in January, two thousand eight, the commissioner shall estab-
    47  lish  the  amount of PIT and certify such amount and the amount of MA to
    48  the comptroller, in the manner set forth in this paragraph.
    49    (C) (i) For the period commencing January first, two  thousand  eight,
    50  and  ending  on  the last day of the month in which the taxes imposed in
    51  such a city by section  eleven  hundred  seven  of  this  chapter  shall
    52  expire,  the  sales  and use tax component "E" shall equal the amount of
    53  revenues from such taxes imposed at the rate of  three  percent  or  the
    54  amount  of  revenues from such taxes imposed at the rate of four percent
    55  after payments to the municipal assistance corporation for such  a  city
    56  required  under  section ninety-two-d of the state finance law have been
        S. 992                             105                           A. 1922
 
     1  made, whichever amount is less, and "H" shall equal net collections from
     2  taxes imposed by such a city pursuant to the authority of section twelve
     3  hundred twelve-A of this article, due such a  city  in  the  immediately
     4  preceding month.
     5    (ii)  For  the  period  commencing on the first day of the first month
     6  following the period described in clause (i) of this  subparagraph,  the
     7  sales  and  use tax component "E" shall equal net collections from sales
     8  and compensating use taxes imposed by such city pursuant to the authori-
     9  ty of subdivision (a) of section twelve hundred ten of this  article  up
    10  to  the  rate  of three percent and "H" shall equal net collections from
    11  taxes imposed by such city pursuant to the authority of  section  twelve
    12  hundred  twelve-A  of  this  article, due such a city in the immediately
    13  preceding month.
    14    (D) For the period commencing January first, two thousand  eight,  the
    15  PIT  component  for each month shall be designated "PIT" and shall equal
    16  the portion of the revenues from taxes imposed by such city pursuant  to
    17  the  authority  of article thirty of this chapter due such a city in the
    18  immediately preceding month, calculated according to  the  formula:  PIT
    19  equals MA - E - H.
    20    (E)(i)  During  the  period  that  the taxes imposed in such a city by
    21  section eleven hundred seven of this chapter are in  effect,  the  comp-
    22  troller  shall  each  month,  after  paying  amounts certified to by the
    23  chairperson of the municipal assistance corporation created  in  aid  of
    24  such  city, as provided for in section ninety-two-d of the state finance
    25  law, pay the relevant portion of the sales and use tax component  relat-
    26  ing  to such taxes imposed by such section eleven hundred seven for such
    27  month equal to E into the general fund of  the  state  treasury  to  the
    28  credit of the state purposes account therein.
    29    (ii)  During the period that the taxes imposed by such a city pursuant
    30  to the authority of section twelve hundred ten of this  article  are  in
    31  effect,  the  comptroller shall reduce the amount due each month to such
    32  city from such taxes provided for in subdivision (c) of this section  by
    33  the  relevant  portion of the sales and use tax component for such month
    34  equal to E; and the  comptroller  shall  instead  each  month  pay  such
    35  portion into the general fund of the state treasury to the credit of the
    36  state purposes account therein.
    37    (iii)  The  comptroller shall reduce the amount due each month to such
    38  city from taxes imposed pursuant to  the  authority  of  section  twelve
    39  hundred  twelve-A provided for in subdivision (c) of this section by the
    40  relevant portion of the sales and use tax component for such month equal
    41  to H; and the comptroller shall instead each month pay such portion into
    42  the general fund of the state  treasury  to  the  credit  of  the  state
    43  purposes account therein.
    44    (iv)  The  comptroller  shall  each month certify to the New York city
    45  transitional finance authority  the  monthly  amount  of  PIT  and  such
    46  authority  shall,  after  applying amounts described in section thirteen
    47  hundred thirteen of this chapter, immediately pay such  monthly  amount,
    48  or  so  much of which is available after applying such amounts, directly
    49  and immediately to the  comptroller;  and  the  comptroller  shall  upon
    50  receipt  of such moneys, subject to the exceptions in such section thir-
    51  teen hundred thirteen, pay them into the general fund of the state trea-
    52  sury to the credit of the state purposes account therein.
    53    (4) If for any reason such a city's Medicaid amount in a month (MA) is
    54  greater than the sum of the amounts of the comptroller's net payments to
    55  such city for that month under subdivision (c) of  this  section,  under
    56  section  twelve hundred twelve-A of this article and under section thir-
        S. 992                             106                           A. 1922
 
     1  teen hundred thirteen of this chapter, after the  comptroller  has  made
     2  any  payments  to  other  entities  required  by  any  law and after any
     3  payment, deposit, appropriation, transfer  or  expenditure  required  or
     4  authorized  by  any of such sections, the comptroller shall, at the same
     5  time that the comptroller makes the payments and reductions described in
     6  paragraph three of this subdivision, bill such city an amount  equal  to
     7  the  difference  and such city shall pay in full the amount of such bill
     8  to the comptroller by the twenty-fifth day  of  such  month.  Such  city
     9  shall  use  any  funds available to it to pay such bill. The comptroller
    10  shall deposit any such amounts received into the  general  fund  of  the
    11  state treasury to the credit of the state purposes account therein.
    12    (5)  If such a city does not pay in full a bill described in paragraph
    13  four of this subdivision by the twenty-fifth day of the month in accord-
    14  ance with such paragraph four, the comptroller shall,  as  soon  as  any
    15  other moneys payable to the city are available, either deduct any amount
    16  not  paid  from the amount of the next payment or payments due such city
    17  pursuant to subdivision (c) of  this  section,  section  twelve  hundred
    18  twelve-A  of  this  article or section thirteen hundred thirteen of this
    19  chapter, until such amount not paid has been recovered or, in the alter-
    20  native and at the comptroller's discretion, deduct any amount  not  paid
    21  from  the amount of any other moneys payable to such city from the comp-
    22  troller and not subject to any lien or pledge for the benefit  of  bond-
    23  holders  of  the  transitional  finance  authority  or  of the municipal
    24  assistance corporation, until such amount not paid has  been  recovered.
    25  The comptroller shall deposit any amounts so deducted and recovered into
    26  the  general  fund  of  the  state  treasury  to the credit of the state
    27  purposes account therein.
    28    (6) This subdivision shall apply to payments required in respect of  a
    29  city to be made on January twelfth, two thousand eight, and thereafter.
    30    (7)(A)  If  such  a  city  adopts  or amends a local law, ordinance or
    31  resolution to repeal its sales and compensating use taxes imposed pursu-
    32  ant to the authority of subdivision (a) of section twelve hundred ten of
    33  this article, then, effective on the first day of  the  first  month  on
    34  which  such  repeal  takes effect, such city's resolution electing to be
    35  reimbursed for  certain  medical  assistance  expenditures  pursuant  to
    36  section  two of the chapter of the laws of two thousand five which added
    37  this subdivision shall also be repealed automatically as of  such  date;
    38  and  the  commissioner  shall  notify the commissioner of health of such
    39  city's repeal of such taxes. In that event, as of such date,  such  city
    40  shall  be  treated as if it had never made such election for purposes of
    41  such expenditures and such  commissioner  of  health  shall  thenceforth
    42  compute  the  amount  due  monthly  from such city for such expenditures
    43  pursuant to section one of such chapter of  the  laws  of  two  thousand
    44  five.
    45    (B)  If  such city adopts or amends a local law to repeal its taxes on
    46  personal income authorized by article thirty of this chapter, the  comp-
    47  troller shall bill such city monthly in the manner provided in paragraph
    48  four  of  this  subdivision  for  any amounts due under this subdivision
    49  which otherwise would have been paid out of  revenues  from  such  taxes
    50  into  the  general  fund of the state treasury pursuant to this subdivi-
    51  sion, and such bills shall be paid as provided in paragraph four of this
    52  subdivision and any bill not paid shall be treated as provided in  para-
    53  graph five of this subdivision.
    54    §  7.  Section 1313 of the tax law, as amended by section 15 of part R
    55  of chapter 60 of the laws of 2004, is amended to read as follows:
        S. 992                             107                           A. 1922
 
     1    § 1313. Deposit and disposition of revenues. (a) All revenue collected
     2  by the commissioner from the taxes imposed pursuant to the authority  of
     3  this  article  or  former article two-E of the general city law shall be
     4  deposited daily with such responsible banks,  banking  houses  or  trust
     5  companies,  as may be designated by the state comptroller, to the credit
     6  of the comptroller, in trust for the city of New York or  the  New  York
     7  city  transitional  finance  authority,  as  their  interests may appear
     8  pursuant to this section. Such deposits shall be kept in trust and sepa-
     9  rate and apart from all other moneys in  the  possession  of  the  comp-
    10  troller.  The  comptroller shall require adequate security from all such
    11  depositories of such revenue collected by the commissioner.
    12    (b) The comptroller shall retain in [his] the comptroller's hands such
    13  amount as the commissioner may determine to be necessary for refunds  in
    14  respect  to  the taxes imposed pursuant to the authority of this article
    15  or former article two-E of the general city law and for reasonable costs
    16  of the commissioner in administering, collecting and  distributing  such
    17  taxes,  out of which the comptroller shall pay any refunds of such taxes
    18  to which taxpayers shall be entitled under any law enacted  pursuant  to
    19  the  authority  of  this  article or former article two-E of the general
    20  city law.
    21    [The] (c) Subject to the provisions of subsection (g) of this section,
    22  the comptroller, after reserving such refund fund and such costs  shall,
    23  commencing  on or before the fifteenth day of each month, pay to the New
    24  York city transitional finance authority on a daily basis the balance of
    25  taxes imposed pursuant to the authority of this article or former  arti-
    26  cle two-E of the general city law to be applied by the authority, in the
    27  following order of priority: first pursuant to the authority's contracts
    28  with  bondholders,  then  to  pay the authority's operating expenses not
    29  otherwise provided for, and then pursuant to the authority's  agreements
    30  with  the city, which agreements shall require the authority to transfer
    31  the balance of such taxes not required  to  meet  contractual  or  other
    32  obligations  of  the authority to the city as frequently as practicable;
    33  except that [he] the comptroller shall:
    34    (1) pay to the state department of  social  services  that  amount  of
    35  overpayments  of  the  taxes  imposed  pursuant to the authority of this
    36  article or former article two-E of the general city law and the interest
    37  on such amount which is  certified  to  [him]  the  comptroller  by  the
    38  commissioner  as  the  amount  to  be  credited against past-due support
    39  pursuant to subdivision six of section one hundred seventy-one-c of this
    40  chapter [and except that he shall];
    41    (2) pay to the New York state higher  education  services  corporation
    42  that amount of overpayments of the taxes imposed pursuant to the author-
    43  ity  of this article or former article two-E of the general city law and
    44  the interest on such amount which is certified to [him] the  comptroller
    45  by  the  commissioner as the amount to be credited against the amount of
    46  defaults in repayment of guaranteed student loans pursuant  to  subdivi-
    47  sion  five  of  section  one  hundred seventy-one-d of this chapter [and
    48  except that he shall];
    49    (3) pay to the state university of New York or the city university  of
    50  New  York  respectively that amount of overpayments of the taxes imposed
    51  pursuant to the authority of this article or former article two-E of the
    52  general city law and the interest on such amount which is  certified  to
    53  [him]  the  comptroller by the commissioner as the amount to be credited
    54  against the amount of defaults in repayment of state or city  university
    55  loans  pursuant  to subdivision six of section one hundred seventy-one-e
    56  of this chapter [and except that,];
        S. 992                             108                           A. 1922
 
     1    (4) notwithstanding any provision of law, [he  shall]  credit  to  the
     2  revenue arrearage account, pursuant to section ninety-one-a of the state
     3  finance  law,  that amount of overpayments of the taxes imposed pursuant
     4  to the authority of this article or former article two-E of the  general
     5  city law and the interest on such amount which is certified to [him] the
     6  comptroller  by  the commissioner as the amount to be credited against a
     7  past-due legally enforceable debt owed to a  state  agency  pursuant  to
     8  paragraph (a) of subdivision six of section one hundred seventy-one-f of
     9  this  chapter,  provided,  however, [he] the comptroller shall credit to
    10  the special offset fiduciary account, pursuant to  section  ninety-one-c
    11  of  the  state finance law, any such amount creditable as a liability as
    12  set forth in paragraph (b) of subdivision six  of  section  one  hundred
    13  seventy-one-f of this chapter[, and except that he shall];
    14    (5)  pay  to  the  city of New York that amount of overpayments of tax
    15  imposed pursuant to the authority of this article and  the  interest  on
    16  such  amount  which is certified to [him] the comptroller by the commis-
    17  sioner as the amount to be credited against city of New York tax warrant
    18  judgment debt pursuant to section  one  hundred  seventy-one-l  of  this
    19  chapter[, and except further that he shall]; and
    20    (6)  pay  to  a non-obligated spouse that amount of overpayment of tax
    21  imposed pursuant to the authority of  this  article  or  former  article
    22  two-E  of the general city law and the interest on such amount which has
    23  been credited pursuant to section one hundred seventy-one-c, one hundred
    24  seventy-one-d, one hundred seventy-one-e, one hundred  seventy-one-f  or
    25  one  hundred  seventy-one-l  of  this  chapter and which is certified to
    26  [him] the comptroller by the commissioner as the amount due such  non-o-
    27  bligated  spouse  pursuant to paragraph six of subsection (b) of section
    28  six hundred fifty-one of this chapter, and [he]  the  comptroller  shall
    29  deduct  a  like  amount  which  [he], the comptroller shall pay into the
    30  treasury to the credit of the general fund,  from  amounts  subsequently
    31  payable  to the office of temporary and disability assistance, the state
    32  university of New York, the city university  of  New  York,  the  higher
    33  education  services  corporation,  or  the  revenue arrearage account or
    34  special offset fiduciary account pursuant  to  section  ninety-one-a  or
    35  ninety-one-c of the state finance law, as the case may be, whichever had
    36  been credited the amount originally withheld from such overpayment.
    37    (d)  The  amount  deducted  under  subsection  (b) of this section for
    38  administering, collecting and distributing such taxes during such month-
    39  ly period shall be paid by the comptroller into the general fund of  the
    40  state treasury to the credit of the state purposes account therein.
    41    (e) The first payment to such chief fiscal officer shall be made on or
    42  before  March  fifteenth,  nineteen  hundred  seventy-six, which payment
    43  shall represent the balance of revenue after provision  for  refund  and
    44  such  reasonable  costs,  with  respect  to taxes collected from January
    45  first, nineteen hundred seventy-six through February twenty-ninth, nine-
    46  teen hundred seventy-six. Subsequent payments shall be made on or before
    47  April fifteenth, nineteen hundred seventy-six,  and  on  or  before  the
    48  fifteenth  day  of each succeeding month thereafter, and shall represent
    49  the balance of revenue with respect to  taxes  collected  the  preceding
    50  calendar months.
    51    (f)  The  amounts  so payable under this section shall be certified to
    52  the comptroller by the commissioner or [his]  the  commissioner's  dele-
    53  gate, either of whom shall not be held liable for any inaccuracy in such
    54  certificate.  Where the amount so paid over to such chief fiscal officer
    55  is more or less than the amount then due such city, the amount of  over-
    56  payment  or  underpayment  shall  be certified to the comptroller by the
        S. 992                             109                           A. 1922
 
     1  commissioner or [his] the commissioner's delegate, either of whom  shall
     2  not be held liable for any inaccuracy in such certificate. The amount of
     3  overpayment  or underpayment shall be so certified to the comptroller as
     4  soon  after  the discovery of the overpayment or underpayment as reason-
     5  ably possible and subsequent payments by the comptroller to  such  chief
     6  fiscal  officer  shall be adjusted by subtracting the amount of any such
     7  overpayment from, or by adding the amount of any  such  underpayment  to
     8  such  number of subsequent payments and distributions as the comptroller
     9  and the commissioner shall consider reasonable in view of the amount  of
    10  the overpayment or underpayment and all other facts and circumstances.
    11    (g)  The  balance  payable  to  the New York city transitional finance
    12  authority pursuant to this section shall instead be paid  to  the  chief
    13  fiscal  officer of the city of New York unless and until the comptroller
    14  has received from such authority a notice, which shall be conclusive and
    15  upon which the comptroller may rely without further inquiry,  that  such
    16  authority  has  incurred obligations payable by it, whether for borrowed
    17  money, operating expenses or otherwise. On and after the  date  of  such
    18  notice  and  until  such date as the authority shall have no obligations
    19  outstanding, the city shall have no right, title or interest  in  or  to
    20  the  taxes,  except  as  provided in the authority's agreements with the
    21  city.
    22    (h) Notwithstanding any provision of state or local law, ordinance  or
    23  resolution  to the contrary, if the commissioner of health timely certi-
    24  fies to the commissioner that a city having a population of one  million
    25  or  more  which  imposes  tax  pursuant to the authority of this article
    26  properly exercised its option pursuant to section two of the chapter  of
    27  the  laws  of  two  thousand five which added this subdivision that such
    28  city be reimbursed for medical assistance expenditures  as  provided  in
    29  such section two of such chapter, the commissioner shall make and certi-
    30  fy  the  calculations and the comptroller shall, on the fifteenth day of
    31  each month, starting in January, two thousand eight, intercept  and  pay
    32  monthly amounts of revenue from taxes imposed in such a city pursuant to
    33  the authority of this article, as provided in subdivision (g) of section
    34  twelve hundred sixty-one of this chapter.
    35    §  8.  Paragraph  (t)  of subdivision 1 of section 368-a of the social
    36  services law, as amended by section 2 of part C of  chapter  58  of  the
    37  laws of 2004, is amended to read as follows:
    38    (t)  (i) for services provided on or after January first, two thousand
    39  three through December thirty-first, two thousand four, fifty percent of
    40  the amount expended for health care services under section three hundred
    41  sixty-nine-ee of this  article,  after  first  deducting  therefrom  any
    42  federal funds properly received or to be received on account thereof;
    43    (ii)  for  services  provided  on or after January first, two thousand
    44  five, through [December thirty-first] September thirtieth, two  thousand
    45  five,  seventy-five  percent  of  the  amount  expended  for health care
    46  services under section three  hundred  sixty-nine-ee  of  this  article,
    47  after  first  deducting therefrom any federal funds properly received or
    48  to be received on account thereof; [and]
    49    (iii) for services provided on or after October  first,  two  thousand
    50  five,  through  December  thirty-first,  two thousand five, seventy-five
    51  percent of the amount expended by the social services district  consist-
    52  ing  of  the  city  of  New  York, and one hundred percent of the amount
    53  expended by  all  other  social  services  districts,  for  health  care
    54  services  under  section  three  hundred  sixty-nine-ee of this article,
    55  after first deducting therefrom any federal funds properly  received  or
    56  to be received on account thereof; and
        S. 992                             110                           A. 1922
 
     1    (iv) for services provided on or after January first, two thousand six
     2  through  December  thirty-first,  two  thousand six, and thereafter, one
     3  hundred percent of the amount expended for health  care  services  under
     4  section three hundred sixty-nine-ee of this article, after first deduct-
     5  ing  therefrom  any federal funds properly received or to be received on
     6  account thereof.
     7    § 9. Transitional funding. (a) For the purposes  of  assisting  social
     8  services  districts  in  making  necessary  adjustments  to  the medical
     9  assistance shares provisions set forth in section one of this  act,  the
    10  commissioner   of  health  shall  make  transitional  payments  to  such
    11  districts in the amount of $20,000,000 during the period April  1,  2005
    12  through  March  31,  2006,  and  in the amount of $10,000,000 during the
    13  period April 1, 2006 through March  31,  2007  in  accordance  with  the
    14  provisions  of paragraph (b) of this section. Such payments shall not be
    15  subject to the provisions of section one of this act.
    16    (b) Funds appropriated  for  transitional  funding  pursuant  to  this
    17  section  shall be distributed to social services districts pursuant to a
    18  methodology or methodologies which consider county need as  measured  by
    19  its  per  capita  full  property valuation and any such other factors as
    20  developed by the commissioner of health and approved by the director  of
    21  the division of the budget. Such methodology may be implemented notwith-
    22  standing the provisions of the state administrative procedure act.
    23    §  10. The public health law is amended by adding a new article 2-A to
    24  read as follows:
    25                                 ARTICLE 2-A
 
    26                           PREFERRED DRUG PROGRAM
    27  Section 270. Definitions.
    28          271. Pharmacy and therapeutics committee.
    29          272. Preferred drug program.
    30          273. Preferred drug program prior authorization.
    31          274. Clinical drug review program.
    32          275. Applicability of prior authorization to EPIC.
    33          276. Education and outreach.
    34          277. Review and reports.
    35    § 270. Definitions. As used in this article, unless the context clear-
    36  ly requires otherwise:
    37    1.  "Administrator"  means  an  entity  with  which  the  commissioner
    38  contracts  for  the  purpose  of administering elements of the preferred
    39  drug program, as established under section two  hundred  seventy-two  of
    40  this  article  or  the  clinical  drug  review program established under
    41  section two hundred seventy-four of this article.
    42    2. "Clinical drug review  program"  means  the  clinical  drug  review
    43  program created by section two hundred seventy-four of this article.
    44    3.  "Committee"  or  "pharmacy  and  therapeutics committee" means the
    45  pharmacy and therapeutics  committee  created  by  section  two  hundred
    46  seventy-one of this article.
    47    4.  "Emergency  condition"  means a medical or behavioral condition as
    48  determined by the prescriber  or  pharmacist,  the  onset  of  which  is
    49  sudden,  that  manifests  itself  by  symptoms  of  sufficient severity,
    50  including severe pain,  and  for  which  delay  in  beginning  treatment
    51  prescribed by the patient's health care practitioner would result in:
    52    (a)  placing  the  health  or safety of the person afflicted with such
    53  condition or other person or persons in serious jeopardy;
    54    (b) serious impairment to such person's bodily functions;
    55    (c) serious dysfunction of any bodily organ or part of such person;
        S. 992                             111                           A. 1922
 
     1    (d) serious disfigurement of such person; or
     2    (e) severe discomfort.
     3    5.  "Panel"  means the elderly pharmaceutical insurance coverage panel
     4  established pursuant to section two hundred forty-four of the elder law.
     5    6. "Preferred drug program" means the preferred  drug  program  estab-
     6  lished under section two hundred seventy-two of this article.
     7    7.  "Prescription  drug" or "drug" means a drug defined in subdivision
     8  seven of section sixty-eight hundred two of the education law, for which
     9  a prescription is required under the federal  food,  drug  and  cosmetic
    10  act.  Any  drug that does not require a prescription under such act, but
    11  which would otherwise meet the criteria under this article for inclusion
    12  on the preferred drug list may be added to the preferred drug list under
    13  this article;  and,  if  so  included,  shall  be  considered  to  be  a
    14  prescription  drug  for purposes of this article; provided that it shall
    15  be eligible for reimbursement under a  state  public  health  plan  when
    16  ordered  by  a prescriber authorized to prescribe under the state public
    17  health plan and the prescription is subject to the applicable provisions
    18  of this article and paragraph (a) of subdivision four of  section  three
    19  hundred sixty-five-a of the social services law.
    20    8.  "Prior  authorization" means a process requiring the prescriber or
    21  the dispenser to verify with the applicable state public health plan  or
    22  its  authorized  agent that the drug is appropriate for the needs of the
    23  specific patient.
    24    9. "State public health plan" means  the  medical  assistance  program
    25  established  by  title eleven of article five of the social services law
    26  (referred to in this article as "Medicaid") and the  elderly  pharmaceu-
    27  tical  insurance  coverage program established by title three of article
    28  two of the elder law (referred to in this article as "EPIC").
    29    10. "Supplemental rebate" means a supplemental rebate  under  subdivi-
    30  sion ten of section two hundred seventy-two of this article.
    31    11.  "Therapeutic  class"  means  a  group  of prescription drugs that
    32  produce a particular intended clinical outcome and are grouped  together
    33  as a therapeutic class by the pharmacy and therapeutics committee.
    34    §  271. Pharmacy and therapeutics committee. 1. There is hereby estab-
    35  lished in the department a  pharmacy  and  therapeutics  committee.  The
    36  committee  shall  consist of thirteen members, who shall be appointed by
    37  the commissioner and who shall serve three year terms; except  that  for
    38  the  initial appointments to the committee, four members shall serve one
    39  year terms, five shall serve two year terms, and four shall serve  three
    40  year terms.  Committee members may be reappointed upon the completion of
    41  their  terms.  No  member  of  the committee shall be an employee of the
    42  state or any subdivision of the state, other than for his or her member-
    43  ship on the committee, except for employees of health care facilities or
    44  universities operated by the state, a public  benefit  corporation,  the
    45  State University of New York or municipalities.
    46    2. The membership shall be composed as follows:
    47    (a)  five  persons  licensed  and  actively engaged in the practice of
    48  medicine in the state;
    49    (b) one person licensed and actively engaged in the practice of  nurs-
    50  ing  as  a  nurse  practitioner,  or in the practice of midwifery in the
    51  state;
    52    (c) five persons licensed and actively  engaged  in  the  practice  of
    53  pharmacy in the state;
    54    (d) one person with expertise in drug utilization review who is either
    55  a  health  care professional licensed under title eight of the education
    56  law, is a pharmacologist or has a doctorate in pharmacology; and
        S. 992                             112                           A. 1922
 
     1    (e) one person who shall be a consumer or representative of an  organ-
     2  ization  with  a  regional  or  statewide  constituency and who has been
     3  involved in activities related to health care consumer advocacy, includ-
     4  ing issues affecting Medicaid or EPIC recipients.
     5    3.  The  committee  shall,  at  the request of the commissioner or the
     6  panel, consider any matter relating to the preferred drug program estab-
     7  lished pursuant to section two hundred seventy-two of this article,  and
     8  may  advise  the  commissioner  or the panel thereon. The committee may,
     9  from time to time, submit to the commissioner or the  panel  recommenda-
    10  tions  relating  to  such preferred drug program. The committee may also
    11  evaluate and provide recommendations to the commissioner or the panel on
    12  other issues relating to  pharmacy  services  under  Medicaid  or  EPIC,
    13  including,  but not limited to: therapeutic comparisons; enhanced use of
    14  generic drug  products;  enhanced  targeting  of  physician  prescribing
    15  patterns;  prior  authorization  of  drugs  subject to the clinical drug
    16  review program established pursuant to section two hundred  seventy-four
    17  of  this  article;  fraud,  waste and abuse prevention; negotiations for
    18  rebates; pharmacy benefit management activity by an  administrator;  and
    19  negotiation of lower initial drug pricing.
    20    4. The committee shall elect a chairperson from among its members, who
    21  shall  serve  a  one year term as chairperson. The chairperson may serve
    22  consecutive terms.
    23    5. The members of the committee  shall  receive  no  compensation  for
    24  their  services but shall be reimbursed for expenses actually and neces-
    25  sarily incurred in the performance of their duties.
    26    6. The committee shall be a public body under  article  seven  of  the
    27  public  officers  law  and subject to article six of the public officers
    28  law.  In addition to the matters listed in section one hundred  five  of
    29  the  public officers law, the committee may conduct an executive session
    30  for the purpose of receiving and  evaluating  drug  pricing  information
    31  related  to  supplemental  rebates,  or  receiving  and evaluating trade
    32  secrets, marketing plans or other information which, if disclosed, would
    33  cause substantial injury to the competitive position of the  manufactur-
    34  er.
    35    7. Committee members shall be deemed to be employees of the department
    36  for  the  purposes  of section seventeen of the public officers law, and
    37  shall not participate in any matter for which  a  conflict  of  interest
    38  exists.
    39    8.  The department shall provide administrative support to the commit-
    40  tee.
    41    § 272. Preferred drug  program.  1.  There  is  hereby  established  a
    42  preferred   drug  program  to  promote  access  to  the  most  effective
    43  prescription drugs while reducing the cost  of  prescription  drugs  for
    44  persons in state public health plans.
    45    2.  When  a  prescriber  prescribes a non-preferred drug, state public
    46  health plan reimbursement shall be denied unless prior authorization  is
    47  obtained, unless no prior authorization is required under this article.
    48    3. The commissioner or the panel shall establish performance standards
    49  for  the  program  that,  at  a  minimum, ensure that the preferred drug
    50  program and the clinical drug review program provide sufficient  techni-
    51  cal  support  and timely responses to consumers, prescribers and pharma-
    52  cists.
    53    4. The pharmacy and therapeutics committee  shall  consider  and  make
    54  recommendations  to  the commissioner or the panel for the adoption of a
    55  preferred drug program. (a) In developing the  preferred  drug  program,
    56  the  committee  shall,  without  limitation:    (i) identify therapeutic
        S. 992                             113                           A. 1922
 
     1  classes of drugs to be included in  the  preferred  drug  program;  (ii)
     2  identify  preferred  drugs  in  each  of the chosen therapeutic classes;
     3  (iii) evaluate the clinical effectiveness and safety of drugs  consider-
     4  ing the latest peer-reviewed research and may consider studies submitted
     5  to  the federal food and drug administration in connection with its drug
     6  approval system; (iv) consider the potential impact on patient care  and
     7  the  potential  fiscal  impact  that  may result from making such a drug
     8  therapeutic class subject to prior authorization; and (v)  consider  the
     9  potential  impact of the preferred drug program on the health of special
    10  populations such as children, the elderly, the chronically ill,  persons
    11  with HIV/AIDS and persons with mental health conditions.
    12    (b)  In  developing  the  preferred  drug  program,  the committee may
    13  consider preferred drug programs or evidence based research operated  or
    14  conducted  by or for other state governments, the federal government, or
    15  multi-state coalitions.  Notwithstanding any inconsistent  provision  of
    16  section one hundred twelve or article eleven of the state finance law or
    17  section  one  hundred  forty-two  of the economic development law or any
    18  other law, the department or the panel may enter into contractual agree-
    19  ments with the Oregon Health and Science University  Drug  Effectiveness
    20  Review  Project to provide technical and clinical support to the commit-
    21  tee and the department or the  panel  in  researching  and  recommending
    22  drugs to be placed on the preferred drug list.
    23    (c)  The  committee  shall  from  time  to time review all therapeutic
    24  classes included in the preferred drug program, and may  recommend  that
    25  the commissioner or the panel add or delete drugs or classes of drugs to
    26  or from the preferred drug program, subject to this subdivision.
    27    (d)  The  committee  shall  establish  procedures  to  promptly review
    28  prescription drugs newly approved by the federal food and drug  adminis-
    29  tration.
    30    5.  The  committee  shall  recommend  a procedure and criteria for the
    31  approval of non-preferred drugs as part of the prior authorization proc-
    32  ess. In developing these criteria, the committee shall include consider-
    33  ation of the following:
    34    (a) the preferred drug has been tried by the patient and has failed to
    35  produce the desired health outcomes;
    36    (b) the patient has tried the preferred drug and has experienced unac-
    37  ceptable side effects;
    38    (c) the patient has been stabilized on a non-preferred drug and  tran-
    39  sition to the preferred drug would be medically contraindicated; and
    40    (d)  other clinical indications for the use of the non-preferred drug,
    41  including the medical needs of special populations  including  children,
    42  the elderly, the chronically ill, persons with mental health conditions,
    43  and persons affected by HIV/AIDS.
    44    6.  The  commissioner  or  the  panel shall provide thirty days public
    45  notice on the department's website prior to any meeting of the committee
    46  to develop recommendations concerning the preferred drug  program.  Such
    47  notice  regarding  meetings of the committee shall include a description
    48  of the proposed therapeutic class to be  reviewed,  a  listing  of  drug
    49  products in the therapeutic class, and the proposals to be considered by
    50  the committee. The committee shall allow interested parties a reasonable
    51  opportunity to make an oral presentation to the committee related to the
    52  prior  authorization  of the drug therapeutic class to be reviewed.  The
    53  committee shall consider any  information  provided  by  any  interested
    54  party, including, but not limited to, prescribers, dispensers, patients,
    55  consumers  and manufacturers of the drug in developing their recommenda-
    56  tions.
        S. 992                             114                           A. 1922
 
     1    7. The commissioner or the panel shall provide notice of any recommen-
     2  dations developed by the committee regarding the preferred drug program,
     3  at least thirty days before any final determination by the  commissioner
     4  or  the  panel, by making such information available on the department's
     5  website.  Such  public  notice  shall include: a summary of the deliber-
     6  ations of the committee; a summary of  the  positions  of  those  making
     7  public  comments  at  meetings  of  the  committee;  the response of the
     8  committee to those comments, if any; and the  findings  and  recommenda-
     9  tions of the committee.
    10    8.  Within  ten  days of a final determination regarding the preferred
    11  drug program, the commissioner or the panel shall provide public  notice
    12  on  the  department's  website  of  such  determinations, including: the
    13  nature of the determination; an analysis of the impact  of  the  commis-
    14  sioner's  or the panel's determination on state public health plan popu-
    15  lations and providers; and the projected  fiscal  impact  to  the  state
    16  public  health plan programs of the commissioner's or the panel's deter-
    17  mination.
    18    9. The commissioner or the panel shall adopt a preferred drug  program
    19  and  amendments after considering the recommendations from the committee
    20  and  any  comments  received  from  prescribers,  dispensers,  patients,
    21  consumers and manufacturers of the drug.
    22    (a) Any therapeutic class included in the preferred drug program shall
    23  be developed based initially on an evaluation of the clinical effective-
    24  ness,  safety  and  patient  outcomes,  followed by consideration of the
    25  cost-effectiveness of the drugs.
    26    (b) In each therapeutic class included in the preferred drug  program,
    27  if  the  committee  determines  there is one drug which is significantly
    28  more clinically effective and safe, that drug shall be included  on  the
    29  preferred drug list without consideration of cost. If, among two or more
    30  drugs  in  a therapeutic class, the difference in clinical effectiveness
    31  and safety  is  not  clinically  significant,  then  cost  effectiveness
    32  (including  price  and  supplemental  rebates) may also be considered in
    33  determining which drug or drugs shall be included on the preferred  drug
    34  list.
    35    (c) In addition to drugs selected under paragraph (b) of this subdivi-
    36  sion,  any prescription drug in the therapeutic class, whose cost to the
    37  state public health plans (including net price and supplemental rebates)
    38  is equal to or less than the cost of another  drug  in  the  therapeutic
    39  class  that  is  on  the preferred drug list under paragraph (b) of this
    40  subdivision, may be selected to be on the preferred drug list, based  on
    41  clinical effectiveness, safety and cost-effectiveness.
    42    10.  The  commissioner  or  the panel shall provide an opportunity for
    43  pharmaceutical manufacturers to  provide  supplemental  rebates  to  the
    44  department  or  EPIC;  such  supplemental  rebates  shall  be taken into
    45  consideration by the committee and the  commissioner  or  the  panel  in
    46  determining  the  cost-effectiveness of drugs within a therapeutic class
    47  under the state public health plans. Such supplemental rebates shall  be
    48  in  addition to those required by applicable federal law and subdivision
    49  seven of section three hundred sixty-seven-a of the social services law.
    50  In order to be considered in connection with the preferred drug program,
    51  such supplemental rebates shall apply to  the  drug  products  dispensed
    52  under  the  Medicaid  program  and the EPIC program. The commissioner is
    53  prohibited from approving alternative rebate demonstrations, value added
    54  programs or guaranteed savings from other program benefits as a  substi-
    55  tution for supplemental rebates.
        S. 992                             115                           A. 1922
 
     1    11.  No prior authorization shall be required under the preferred drug
     2  program for: (a) atypical  anti-psychotics;  (b)  anti-depressants;  (c)
     3  anti-retrovirals  used in the treatment of HIV/AIDS; and (d) anti-rejec-
     4  tion drugs used for the treatment of organ and tissue transplants.
     5    12.  The  commissioner  or the panel may implement all or a portion of
     6  the preferred drug program through contracts  with  administrators  with
     7  expertise  in  management  of  pharmacy  services, subject to applicable
     8  laws.
     9    § 273. Preferred drug program prior authorization. 1. For the purposes
    10  of this section, a prescription drug shall be considered to  be  not  on
    11  the preferred drug list if it is in a therapeutic class that is included
    12  on  the preferred drug list and is not one of the drugs on the preferred
    13  list in that class.
    14    2. The preferred drug program shall make available a twenty-four  hour
    15  per day, seven days per week telephone call center that includes a toll-
    16  free  telephone line and dedicated facsimile line to respond to requests
    17  for prior authorization. The call center shall include qualified  health
    18  care  professionals  who  shall be available to consult with prescribers
    19  concerning prescription drugs that are not on the preferred drug list. A
    20  prescriber seeking prior authorization shall consult  with  the  program
    21  call  line  to  reasonably  present  his  or  her  justification for the
    22  prescription and give the program's qualified health care professional a
    23  reasonable opportunity to respond.
    24    3. (a) When a patient's health care provider prescribes a prescription
    25  drug that is not on  the  preferred  drug  list,  the  prescriber  shall
    26  consult  with  the  program  to  confirm  that  in his or her reasonable
    27  professional judgment, the patient's clinical  condition  is  consistent
    28  with  the criteria for approval of the non-preferred drug. Such criteria
    29  shall include requirements that:
    30    (i) the preferred drug has been tried by the patient and has failed to
    31  produce the desired health outcomes;
    32    (ii) the patient has tried the  preferred  drug  and  has  experienced
    33  unacceptable side effects;
    34    (iii)  the  patient  has  been  stabilized on a non-preferred drug and
    35  transition to the preferred drug would be medically contraindicated; or
    36    (iv) other clinical indications identified by the  committee  for  the
    37  patient's  use  of the non-preferred drug, based on consideration of the
    38  medical needs of patients including those  who  are  children,  elderly,
    39  chronically  ill,  persons  with  mental  health conditions, and persons
    40  affected by HIV/AIDS.
    41    (b) In the event that the patient does not meet the criteria described
    42  in paragraph (a) of  this  subdivision,  the  program  shall  provide  a
    43  reasonable opportunity for a prescriber to present his or her justifica-
    44  tion for prior authorization.
    45    (c)  If  a  patient  is  determined  by the department to not meet the
    46  requirements of paragraphs (a) or (b) of this subdivision, prior author-
    47  ization under this section shall be denied.
    48    (d) In the instance where a prior authorization  determination  cannot
    49  be  completed within twenty-four hours of the original request, a seven-
    50  ty-two hour supply of the medication will be approved by the program and
    51  the prescriber shall be notified of this determination.
    52    4. When, in the judgment of the prescriber or the pharmacist, an emer-
    53  gency condition exists, and the prescriber or pharmacist  confirms  with
    54  the program that an emergency condition exists, a seventy-two hour emer-
    55  gency  supply  of the drug prescribed shall be immediately authorized by
    56  the program.
        S. 992                             116                           A. 1922
 
     1    5. In the event that a patient presents a prescription to a pharmacist
     2  for a prescription drug that is not on the preferred drug list  and  for
     3  which the prescriber has not obtained a prior authorization, the pharma-
     4  cist  shall,  within a reasonable period based on professional judgment,
     5  notify  the prescriber. The prescriber shall, within a reasonable period
     6  based on professional judgment, either seek prior authorization or shall
     7  contact the pharmacist and amend or cancel the prescription.
     8    6. No prior authorization under the program shall be required  when  a
     9  prescriber prescribes a drug on the preferred drug list.
    10    7.  The  department  shall monitor the prior authorization process for
    11  prescribing patterns which are suspected of endangering the  health  and
    12  safety  of  the  patient  or  which demonstrate a likelihood of fraud or
    13  abuse. The department shall take any and all actions otherwise permitted
    14  by law to investigate such prescribing patterns, to take remedial action
    15  and to enforce applicable federal and state laws.
    16    8. No prior authorization under the preferred drug  program  shall  be
    17  required  for any prescription under EPIC until the panel has made prior
    18  authorization applicable to EPIC under section two hundred  seventy-five
    19  of this article.
    20    §  274.  Clinical drug review program. 1. In addition to the preferred
    21  drug program established by this article, the commissioner or the  panel
    22  may  establish  a  clinical drug review program. The commissioner or the
    23  panel may, from time to time, require  prior  authorization  under  such
    24  program  for  prescription  drugs or patterns of utilization under state
    25  public health plans.  When a prescriber prescribes a drug which requires
    26  prior  authorization  under  this  section,  state  public  health  plan
    27  reimbursement  shall  be  denied  unless  such  prior  authorization  is
    28  obtained.
    29    2. The clinical drug review program shall make available a twenty-four
    30  hour per day, seven days per week response system.
    31    3. In establishing a prior authorization requirement for a drug  under
    32  the  clinical  drug  review program, the commissioner or the panel shall
    33  consider the following:
    34    (a) whether the drug requires monitoring of prescribing  protocols  to
    35  protect both the long-term efficacy of the drug and the public health;
    36    (b) the potential for, or a history of, overuse, abuse, drug diversion
    37  or illegal utilization;
    38    (c)  the  potential for, or a history of utilization inconsistent with
    39  approved indications;
    40    (d) whether similarly effective alternatives  are  available  for  the
    41  same disease state;
    42    (e) the cost of the drug compared to other drug therapies for the same
    43  disease state; and
    44    (f)  the availability of an over-the-counter version of a drug product
    45  with similar or equivalent clinical effectiveness.
    46    4. The commissioner or the panel shall obtain  an  evaluation  of  the
    47  factors set forth in subdivision three of this section and a recommenda-
    48  tion  as to the establishment of a prior authorization requirement for a
    49  drug under the clinical drug review program from the pharmacy and thera-
    50  peutics committee established pursuant to section two  hundred  seventy-
    51  one of this article. For this purpose, the commissioner or the panel and
    52  the  committee,  as  applicable, shall comply with the following meeting
    53  and notice processes established by this article:
    54    (a) the open meetings law and freedom of information law provisions of
    55  subdivision six of section two hundred seventy-one of this article; and
        S. 992                             117                           A. 1922
 
     1    (b) the public notice and interested party provisions of  subdivisions
     2  six, seven and eight of section two hundred seventy-two of this article.
     3    5.  The  committee  shall  recommend  a procedure and criteria for the
     4  approval of drugs subject to prior authorization under the clinical drug
     5  review program. Such criteria shall include the specific approved  clin-
     6  ical indications for use of the drug.
     7    6. The commissioner or the panel shall identify a drug for which prior
     8  authorization  is  required,  as well as the procedures and criteria for
     9  approval of use of the drug, under  the  clinical  drug  review  program
    10  after  considering  the  recommendations  from  the  committee  and  any
    11  comments received from prescribers, dispensers, consumers  and  manufac-
    12  turers  of  the  drug. In no case shall the prior authorization criteria
    13  for approval pursuant to this subdivision result in denial of the  prior
    14  authorization  request based on the relative cost of the drug subject to
    15  prior authorization.
    16    7. In the event that the  patient  does  not  meet  the  criteria  for
    17  approval  established  by  the  commissioner  in subdivision six of this
    18  section, the clinical drug review program  shall  provide  a  reasonable
    19  opportunity for a prescriber to reasonably present his or her justifica-
    20  tion  for  prior authorization. If the patient is determined not to meet
    21  the criteria for approval, prior authorization under this section  shall
    22  be denied.
    23    8. In the instance where a prior authorization determination cannot be
    24  completed  within  twenty-four hours of the original request, a seventy-
    25  two hour supply of the medication will be approved by  the  program  and
    26  the prescriber shall be notified of the determination.
    27    9. When, in the judgment of the prescriber or the pharmacist, an emer-
    28  gency  condition  exists, and the prescriber or pharmacist consults with
    29  the program to confirm that such an emergency condition exists, a seven-
    30  ty-two hour emergency supply of the drug prescribed shall be immediately
    31  authorized by the program.
    32    10. The department or the panel shall monitor the prior  authorization
    33  process  for prescribing patterns which are suspected of endangering the
    34  health and safety of the patient or which demonstrate  a  likelihood  of
    35  fraud  or  abuse.  The  department  or  the panel shall take any and all
    36  actions otherwise permitted  by  law  to  investigate  such  prescribing
    37  patterns,  to take remedial action and to enforce applicable federal and
    38  state laws.
    39    11. The commissioner or the panel may implement all or  a  portion  of
    40  the  clinical  drug review program through contracts with administrators
    41  with expertise in management of pharmacy services, subject to applicable
    42  laws.
    43    12. No prior authorization under  the  clinical  drug  review  program
    44  shall be required for any prescription under EPIC until the commissioner
    45  has  made  prior  authorization  applicable  to  EPIC  under section two
    46  hundred seventy-five of this article.
    47    § 275. Applicability of prior authorization to EPIC.  The panel shall,
    48  no later than April first, two thousand eight,  proceed  to  make  prior
    49  authorization  under  the preferred drug program and the clinical review
    50  drug program, under this  article,  applicable  to  prescriptions  under
    51  EPIC. Upon determining that the necessary steps have been taken to apply
    52  prior  authorization  under  this article to EPIC, the panel shall, with
    53  reasonable prior public notice, make prescriptions under EPIC subject to
    54  prior authorization under this article as of a specified date. If neces-
    55  sary, the panel may provide that such applicability take effect on sepa-
        S. 992                             118                           A. 1922
 
     1  rate dates for the preferred drug program and the clinical  drug  review
     2  program.
     3    § 276. Education and outreach. The department or the panel may conduct
     4  education  and outreach programs for consumers and health care providers
     5  relating to the safe, therapeutic and cost-effective use of prescription
     6  drugs and appropriate treatment practices  for  containing  prescription
     7  drug  costs. The department or the panel shall provide information as to
     8  how prescribers, pharmacists, patients and other interested parties  can
     9  obtain  information regarding drugs included on the preferred drug list,
    10  whether any change has been made to the preferred drug list since it was
    11  last issued, and  the  process  by  which  prior  authorization  may  be
    12  obtained.
    13    §  277.  Review and reports. 1. The commissioner, in consultation with
    14  the  pharmacy  and  therapeutics  committee,  shall  undertake  periodic
    15  reviews,  at  least  annually, of the preferred drug program which shall
    16  include consideration of:
    17    (a) the volume of prior authorizations being handled,  including  data
    18  on   the   number   of   prior  authorization  requests  for  particular
    19  prescription drugs;
    20    (b) the quality of the program's responsiveness, including the quality
    21  of the administrator's responsiveness;
    22    (c) complaints received from patients and providers;
    23    (d) the savings attributable to the state, and to each county and  the
    24  city of New York, due to the provisions of this article;
    25    (e)  the  aggregate  amount  of  supplemental  rebates received in the
    26  previous fiscal year and in the current fiscal year, to date;  and  such
    27  amounts are to be broken out by fiscal year and by month;
    28    (f)  the  education  and  outreach  program established by section two
    29  hundred seventy-six of this article.
    30    2. The commissioner and the panel shall, beginning March thirty-first,
    31  two thousand six and annually thereafter, submit a report to the  gover-
    32  nor and the legislature concerning each of the items subject to periodic
    33  review under subdivision one of this section.
    34    3.  The commissioner and the panel shall, beginning with the commence-
    35  ment of the preferred drug program  and  monthly  thereafter,  submit  a
    36  report  to  the  governor  and  the legislature concerning the amount of
    37  supplemental rebates received.
    38    § 11. Paragraph (a-1) of subdivision 4 of section 365-a of the  social
    39  services  law,  as added by section 5 of part B of chapter 1 of the laws
    40  of 2002, is amended to read as follows:
    41    (a-1) [A] a brand name drug for which a  multi-source  therapeutically
    42  and  generically  equivalent drug, as determined by the federal food and
    43  drug administration, is available, unless previously authorized  by  the
    44  department  of  health.  The  commissioner  of  health  is authorized to
    45  exempt, for good cause shown, any brand name drug from the  restrictions
    46  imposed  by  this  paragraph. This paragraph shall not apply to any drug
    47  that is in a therapeutic class included on the preferred drug list under
    48  section two hundred seventy-two of the public health law or  is  in  the
    49  clinical  drug  review program under section two hundred seventy-four of
    50  the public health law;
    51    § 12. Subdivision 4 of section 365-a of the  social  services  law  is
    52  amended by adding a new paragraph (a-2) to read as follows:
    53    (a-2)  drugs  which  may  not  be  dispensed without a prescription as
    54  required by section sixty-eight hundred ten of the  education  law,  and
    55  which  are  non-preferred  drugs  in  a therapeutic class subject to the
    56  preferred drug program pursuant to section two  hundred  seventy-two  of
        S. 992                             119                           A. 1922
 
     1  the public health law, or the clinical drug review program under section
     2  two hundred seventy-four of the public health law, unless prior authori-
     3  zation is granted or not required;
     4    §  13.  Subdivision  5  of  section 244 of the elder law is amended by
     5  adding a new paragraph (l) to read as follows:
     6    (l) implement a  preferred  drug  program  and  clinical  drug  review
     7  program in accordance with the provisions of article two-A of the public
     8  health law.
     9    §  14. Section 3-a of part Z2 of chapter 62 of the laws of 2003 amend-
    10  ing the social services law and other laws relating to implementing  the
    11  state fiscal plan for the 2003-2004 state fiscal year is REPEALED.
    12    § 15. Notwithstanding any inconsistent provision of section 271 of the
    13  public health law, as added by section ten of this act, any pharmacy and
    14  therapeutics committee appointed by the commissioner of health in exist-
    15  ence  on  the  effective date of this act shall continue to function and
    16  shall be  authorized  to  carry  out  the  same  duties  and  powers  as
    17  prescribed pursuant to article 2-A of the public health law, as added by
    18  section ten of this act, until such committee is duly appointed pursuant
    19  to such section 271 of the public health law.
    20    §  16.  Paragraph  (g) of subdivision 2 of section 365-a of the social
    21  services law, as amended by chapter 710 of the laws of 1988, is  amended
    22  to read as follows:
    23    (g)  sickroom  supplies,  eyeglasses,  and  prosthetic appliances [and
    24  dental prosthetic appliances] furnished in  accordance  with  the  regu-
    25  lations  of the department; drugs provided on an in-patient basis, those
    26  drugs contained on the list established by regulation of the commission-
    27  er of health pursuant to subdivision four of  this  section,  and  those
    28  drugs  which  may not be dispensed without a prescription as required by
    29  section sixty-eight hundred ten of  the  education  law  and  which  the
    30  commissioner  of  health  shall  determine to be reimbursable based upon
    31  such factors as the availability of such drugs or  alternatives  at  low
    32  cost  if  purchased  by a medicaid recipient, or the essential nature of
    33  such drugs as described by such commissioner in  regulations,  provided,
    34  however,  that  such  drugs,  exclusive  of long-term maintenance drugs,
    35  shall be dispensed in quantities no greater than a thirty day supply  or
    36  one  hundred  doses,  whichever  is  greater;  provided further that the
    37  commissioner of health is authorized to require prior authorization  for
    38  any  refill of a prescription when less than seventy-five percent of the
    39  previously dispensed amount per fill should  have  been  used  were  the
    40  product used as normally indicated; medical assistance shall not include
    41  any  drug provided on other than an in-patient basis for which a recipi-
    42  ent is charged or a claim is made in the case of a prescription drug, in
    43  excess of the maximum reimbursable amounts to be established by  depart-
    44  ment  regulations in accordance with standards established by the secre-
    45  tary of the United States department of health and human  services,  or,
    46  in  the  case  of  a drug not requiring a prescription, in excess of the
    47  maximum reimbursable amount established by the  commissioner  of  health
    48  pursuant to paragraph (a) of subdivision four of this section;
    49    §  17.   Subparagraphs (i) and (ii) of paragraph (d) of subdivision 25
    50  of section 2807-c of the public health law, as added  by  section  7  of
    51  part  B  of  chapter  58  of  the  laws  of 2004, are amended to read as
    52  follows:
    53    (i) For periods on and after  April  first,  two  thousand  four,  the
    54  commissioner  shall adjust inpatient medical assistance rates of payment
    55  established pursuant  to  this  section,  including  discrete  rates  of
    56  payment  calculated  pursuant to paragraph a-three of subdivision one of
        S. 992                             120                           A. 1922
 
     1  this section, for non-public general hospitals, and for periods  on  and
     2  after  April first, two thousand five, for public and non-public general
     3  hospitals, in accordance with subparagraph (ii) of this  paragraph,  for
     4  purposes  of  reimbursing  graduate medical education costs based on the
     5  following methodology:
     6    (ii) Rate adjustments for each [non-public] general hospital shall  be
     7  based  on  the  difference between the graduate medical education compo-
     8  nent, direct and indirect, of the two thousand three medical  assistance
     9  inpatient rates of payment, including exempt unit per diem rates, and an
    10  estimate  of  what  the graduate medical education component, direct and
    11  indirect, of such medical assistance inpatient rates of payment, includ-
    12  ing exempt unit per diem rates would be, stated at  two  thousand  three
    13  levels and calculated as follows:
    14    (A)  Each  [non-public] general hospital's total direct medical educa-
    15  tion costs as reported in the two thousand one institutional cost report
    16  submitted as of December thirty-first, two thousand three, and
    17    (B) An estimate of the total indirect medical education costs for  two
    18  thousand  one  calculated  in accordance with the methodology applicable
    19  for purposes of determining an estimate of  indirect  medical  education
    20  costs  pursuant  to  subparagraph  (ii)  of paragraph (c) of subdivision
    21  seven of this section. The indirect medical education costs shall  equal
    22  the  product  of  two thousand one hospital specific inpatient operating
    23  costs, including exempt unit  costs,  and  the  indirect  teaching  cost
    24  percentage determined by the following formula:
    25            1-(1/(1+1.89(((1+r)^.405)-1)))
    26  where  r equals the ratio of residents and fellows to beds for two thou-
    27  sand one adjusted to reflect the projected two thousand  three  resident
    28  counts.
    29    (C)  Each  hospital's rate adjustment shall be limited to seventy-five
    30  percent of the graduate medical education component included in its  two
    31  thousand  three medical assistance inpatient rates of payment, including
    32  exempt unit rates. For periods on and after April  first,  two  thousand
    33  five,  the  seventy-five percent limit shall not apply to rate decreases
    34  calculated pursuant to this paragraph.
    35    (D) [No] For the period April first, two thousand four  through  March
    36  thirty-first,  two  thousand  five,  no  hospital  shall  receive a rate
    37  adjustment pursuant to this paragraph if such rate adjustment would be a
    38  negative amount.  For periods on and after  April  first,  two  thousand
    39  five,  no  public  general hospital shall receive a rate increase calcu-
    40  lated pursuant to this paragraph.
    41    § 18. 1. Notwithstanding any inconsistent provision of  law,  rule  or
    42  regulation, for payments made by a state governmental agency to a gener-
    43  al  hospital  for  specialty  inpatient  hospital  services  provided to
    44  patients eligible for payments pursuant to title 11 of article 5 of  the
    45  social  services  law  discharged  or  for visits made on or after April
    46  first, two thousand five, the commissioner of  health,  subject  to  the
    47  approval of the director of the budget, may:
    48    (a)  establish  rates of payment or special payment rate methodologies
    49  for specialty inpatient hospital services selected  in  accordance  with
    50  paragraph  (c)  of  this  subdivision  provided to patients eligible for
    51  payments pursuant to title 11 of article 5 of the  social  services  law
    52  through  negotiations  with  hospitals  in  any  area of the state, and,
    53  notwithstanding section 112 of the state finance law, award contracts to
    54  hospitals that participate in such negotiations and agree to receive the
    55  negotiated payment rates in lieu of rates of payment otherwise  applica-
        S. 992                             121                           A. 1922
 
     1  ble  pursuant  to  section  2807-c  of  the  public health law without a
     2  competitive bid or request for proposal process; and/or
     3    (b) select among hospitals in any area of the state those eligible for
     4  reimbursement  for  specialty  inpatient  hospital  services selected in
     5  accordance with paragraph (c) of this subdivision and establish payments
     6  for such services based on a competitive bidding process.
     7    (c) The commissioner of health shall select specialty inpatient hospi-
     8  tal services for which reimbursement may be  negotiated  with  hospitals
     9  based on the following criteria:
    10    (i)  such  services may be provided more efficiently and economically;
    11  and
    12    (ii) such services have low utilization or are provided in units  with
    13  low occupancy; and
    14    (iii)  any  other criteria determined by the commissioner of health to
    15  promote the cost effective  delivery  of  specialty  inpatient  hospital
    16  services.
    17    (d)  Inpatient  hospital  services not selected by the commissioner of
    18  health pursuant to  this  section  provided  to  patients  eligible  for
    19  payments  pursuant  to  title 11 of article 5 of the social services law
    20  shall be reimbursed pursuant to section 2807-c of the public health law.
    21    2. Notwithstanding any inconsistent provisions of law, rule  or  regu-
    22  lation  no  payments  shall  be  made  for  specialty inpatient hospital
    23  services selected by the commissioner of health in accordance with para-
    24  graph (c) of subdivision one of  this  section  for  which  there  is  a
    25  contract  with  a hospital pursuant to paragraphs (a) or (b) of subdivi-
    26  sion one of this section when such services  are  provided  to  patients
    27  eligible  for  payments  pursuant to title 11 of article 5 of the social
    28  services law by a hospital which has not contracted with the commission-
    29  er of health pursuant to paragraphs (a) or (b)  of  subdivision  one  of
    30  this  section;  provided, however, payments may be made to such hospital
    31  in accordance with section 2807-c  of  the  public  health  law  if  the
    32  provision  of  such services has been prior approved by the commissioner
    33  of health, or if the inpatient admission is a result of emergency admis-
    34  sion.
    35    3. Payment of rates established pursuant  to  this  section  shall  be
    36  contingent  upon  federal  approval of a waiver application submitted by
    37  the commissioner of health in order to receive federal financial partic-
    38  ipation for services provided under this section; provided, however, the
    39  commissioner of health may take any steps necessary  to  implement  this
    40  section prior to receiving federal approval of such waiver application.
    41    §  19.  Subparagraph  (i) of paragraph (g) of subdivision 2 of section
    42  2807 of the public health law, as amended by chapter 170 of the laws  of
    43  1994, is amended to read as follows:
    44    (i)  During  the  period  April  first,  nineteen  hundred ninety-four
    45  through December thirty-first, nineteen hundred ninety-four and for each
    46  calendar year rate period commencing on January first thereafter,  rates
    47  of  payment by governmental agencies for the operating cost component of
    48  general hospital outpatient services shall be  based  on  the  operating
    49  costs reported in the base year cost report adjusted by the trend factor
    50  applicable  to the general hospital in which the services were provided;
    51  provided, however, that the  maximum  payment  for  the  operating  cost
    52  component  of outpatient services shall be sixty-seven dollars and fifty
    53  cents plus the addition of the capital cost per visit. The capital  cost
    54  per  visit  shall  be based on the base year cost report except that the
    55  capital cost per visit may be  adjusted  for  major  outpatient  capital
    56  expenditures  incurred  subsequent  to  the  reporting  year,  when such
        S. 992                             122                           A. 1922
 
     1  expenditures have received the requisite approvals and the facility  has
     2  provided  the  commissioner  with  a certified statement of the expendi-
     3  tures. The base year for the period April first, nineteen hundred  nine-
     4  ty-four  through  December  thirty-first,  nineteen  hundred ninety-four
     5  shall be nineteen hundred ninety-two and  shall  be  advanced  one  year
     6  thereafter  for  each subsequent calendar year rate period. Further, the
     7  provisions of subdivision seven of this section  shall  not  apply.  The
     8  commissioner  may waive the maximum allowable payment and limitations on
     9  the rate of payment as prescribed herein to provide for  the  reimburse-
    10  ment  of  offering  and  arranging  services eligible for ninety percent
    11  federal funds as set forth in section  nineteen  hundred  three  of  the
    12  federal  social  security  act,  and to provide for the reimbursement of
    13  specialized services having separately identifiable  costs  and  statis-
    14  tics,  including  but  not limited to hemodialysis services and surgical
    15  services provided on an outpatient basis, provided, however, that during
    16  the period April first, two thousand five through December thirty-first,
    17  two thousand five and for each  calendar  year  rate  period  commencing
    18  thereafter,  such  specialized  services  shall not include services for
    19  which the rate of payment is established by the office of mental  health
    20  pursuant  to section 43.02 of the mental hygiene law.  Such waiver shall
    21  be granted only when the commissioner finds that the services are  being
    22  provided efficiently and at minimum cost. The commissioner shall prompt-
    23  ly promulgate rules and regulations necessary to identify such services.
    24  Among  the criteria which the commissioner shall consider in the case of
    25  specialized services are whether the services require highly specialized
    26  staff, equipment or facilities, thereby generating a cost that  substan-
    27  tially  exceeds  that  of more routine diagnostic or treatment services;
    28  whether the facility in which the services  are  provided  is  presently
    29  providing  the  services  to  the  population  in need; and, whether the
    30  services may be provided safely and effectively on an  outpatient  basis
    31  at  a  lower  cost  than  through  inpatient  admission. In addition the
    32  commissioner shall provide for a waiver of the maximum allowable payment
    33  for those outpatient services medically necessary which include surgical
    34  procedures where delay  in  surgical  intervention  would  substantially
    35  increase  the  medical  risk associated with such surgical intervention.
    36  Where the commissioner waives the  maximum  allowable  payment  for  any
    37  specified service he or she may, in accordance with the foregoing crite-
    38  ria  and such other criteria as he or she deems appropriate, establish a
    39  maximum allowable payment for such specified service.
    40    § 20. Subdivision 4 of section 2807-c of  the  public  health  law  is
    41  amended by adding a new paragraph (l) to read as follows:
    42    (l) Notwithstanding any law or regulation to the contrary, payments to
    43  general hospitals for inpatient services provided to patients discharged
    44  on  and  after  April  first,  two  thousand  five, who are eligible for
    45  payments made by state governmental agencies and who are  determined  to
    46  be in diagnosis-related groups numbered seven hundred forty-three, seven
    47  hundred  forty-five, seven hundred forty-six, seven hundred forty-eight,
    48  seven hundred forty-nine or seven hundred fifty-one shall be made  on  a
    49  per  diem basis in an amount equal to the fees paid in the same locality
    50  pursuant to section 43.02 of the mental hygiene law for community  based
    51  detoxification  services  provided  in  facilities  licensed pursuant to
    52  article thirty-two of the mental hygiene law.
    53    § 21. 1. Notwithstanding paragraph (c) of subdivision  10  of  section
    54  2807-c  of the public health law and section 21 of chapter 1 of the laws
    55  of 1999 and any other inconsistent provision of law or regulation to the
    56  contrary, in determining rates of payment by state governmental agencies
        S. 992                             123                           A. 1922
 
     1  effective for services provided beginning April 1, 2005, and  thereafter
     2  for  inpatient and outpatient services provided by general hospitals and
     3  for inpatient services and outpatient adult  day  health  care  services
     4  provided by residential health care facilities pursuant to article 28 of
     5  the  public  health law, the commissioner of health shall apply no trend
     6  factor projections attributable to the period January  1,  2005  through
     7  December 31, 2005.
     8    2. The commissioner of health shall adjust rates of payment to reflect
     9  the  exclusion  pursuant  to this section of such specified trend factor
    10  projections or adjustments.
    11    § 22. Paragraph (a) of subdivision 2 of section 2807-d of  the  public
    12  health  law  is  amended  by  adding  a  new subparagraph (v) to read as
    13  follows:
    14    (v) Notwithstanding any contrary provisions of this paragraph  or  any
    15  other  provision of law or regulation, for general hospitals the assess-
    16  ment shall be seven-tenths of one percent  of  each  general  hospital's
    17  gross receipts received from all patient care services and other operat-
    18  ing  income on a cash basis beginning April first, two thousand five for
    19  hospital or health-related services, including, but not limited to inpa-
    20  tient service, outpatient service, emergency service, referred ambulato-
    21  ry service and ambulatory surgical services, but not including  residen-
    22  tial health care facilities services or home health care services.
    23    §  23. Paragraph (b) of subdivision 12 of section 2807-d of the public
    24  health law, as amended by section 57 of part J of chapter 82 of the laws
    25  of 2002, is amended to read as follows:
    26    (b) The exclusion of the  hospitals  described  in  paragraph  (b)  of
    27  subdivision  one  of this section and the exclusion of revenue described
    28  in [subparagraph (vi) of paragraph  (b)  of]  subdivision  two  of  this
    29  section  from  the  assessments set forth in [subparagraph (vi) of para-
    30  graph (b) of] subdivision two of this section for periods on  and  after
    31  April first, two thousand two shall be contingent upon either: (i) qual-
    32  ification  of  the  assessments  for  waiver pursuant to federal law and
    33  regulation; or (ii) consistent with  federal  law  and  regulation,  not
    34  requiring  a  waiver  by  the  secretary of the department of health and
    35  human services related to such exclusion; in order for  the  assessments
    36  under  this section to be qualified as a broad-based health care related
    37  tax for purposes of the revenues received by the state pursuant  to  the
    38  assessments  not  reducing  the  amount expended by the state as medical
    39  assistance for purposes of federal financial participation. The  commis-
    40  sioner shall collect such assessments relying on such exclusion, pending
    41  any  contrary  action  by  the secretary of the department of health and
    42  human services. In the event the secretary of the department  of  health
    43  and  human  services  determines that such assessments do not so qualify
    44  based on such exclusion, then the  commissioner  shall,  to  the  extent
    45  necessary  to  achieve  such qualification for federal financial partic-
    46  ipation, deem such exclusions null and void  as  of  [April  first,  two
    47  thousand  two]  the  first  day of the period for which such assessments
    48  apply, and the commissioner shall collect any retroactive amount due  as
    49  a  result,  without  interest  or penalty provided the hospital pays the
    50  retroactive amount due within ninety days of notice from the commission-
    51  er to the hospital that such exclusion is null and void.
    52    § 24. Subparagraph (vi) of paragraph (b) of subdivision 2  of  section
    53  2807-d  of  the  public health law, as amended by section 6 of part C of
    54  chapter 58 of the laws of 2004, is amended to read as follows:
    55    (vi) Notwithstanding any contrary provision of this paragraph  or  any
    56  other  provision  of  law or regulation to the contrary, for residential
        S. 992                             124                           A. 1922
 
     1  health care facilities the assessment shall be six percent of each resi-
     2  dential health care facility's gross receipts received from all  patient
     3  care  services and other operating income on a cash basis for the period
     4  April  first,  two thousand two through March thirty-first, two thousand
     5  three for hospital  or  health-related  services,  including  adult  day
     6  services;  provided,  however,  that residential health care facilities'
     7  gross receipts attributable to payments received pursuant to title XVIII
     8  of the federal social security act (medicare) shall be excluded from the
     9  assessment; provided, however, that for all such gross receipts received
    10  on or after April first, two thousand three through March  thirty-first,
    11  two  thousand  [six]  five,  such assessment shall be five percent, [and
    12  further provided that such assessment shall expire and be of no  further
    13  effect for all such gross receipts received on or after April first, two
    14  thousand  six]  and  further  provided  that for all such gross receipts
    15  received on or after April first,  two  thousand  five  such  assessment
    16  shall be six percent.
    17    §  25.  Paragraph (b) of subdivision 9 of section 2807-d of the public
    18  health law, as amended by section 25 of part J of chapter 82 of the laws
    19  of 2002, is amended to read as follows:
    20    (b) provided, however, that funds accumulated, including  income  from
    21  invested  funds,  from  the  [further additional assessment] assessments
    22  provided in accordance  with  subparagraph  (v)  of  paragraph  (a)  and
    23  subparagraphs  (iii), (iv), (v) and (vi) of paragraph (b) of subdivision
    24  two of this section, including interest and penalties, shall be deposit-
    25  ed by the commissioner and credited to [a] the  special  [revenue-other]
    26  revenue  fund-other,  miscellaneous  special revenue fund (339), medical
    27  assistance account [to be established by the comptroller]. To the extent
    28  of funds appropriated  therefor,  funds  shall  be  made  available  for
    29  payments under the medical assistance program provided pursuant to title
    30  eleven of article five of the social services law;
    31    §  26.  Subsection  (c)  of  section  612 of the tax law is amended by
    32  adding a new paragraph 38 to read as follows:
    33    (38) Nursing home  assessment  deduction.  The  amount  that  directly
    34  relates  to the assessment imposed on a residential health care facility
    35  pursuant to paragraph (b) of subdivision  two  of  section  twenty-eight
    36  hundred  seven-d of the public health law which is separately stated and
    37  accounted for on the billing statement of a resident  of  a  residential
    38  health care facility and is paid directly by an individual taxpayer.
    39    §  26-a. Subdivision (c) of section 11-1712 of the administrative code
    40  of the city of New York is amended by adding a new paragraph 35 to  read
    41  as follows:
    42    (35)  Nursing  home  assessment  deduction.  The  amount that directly
    43  relates to the assessment imposed on a residential health care  facility
    44  pursuant  to  paragraph  (b)  of subdivision two of section twenty-eight
    45  hundred seven-d of the public health law which is separately stated  and
    46  accounted  for  on  the billing statement of a resident of a residential
    47  health care facility and is paid directly by an individual taxpayer.
    48    § 27. Section 2808 of the public health law is amended by adding a new
    49  subdivision 22 to read as follows:
    50    22. Notwithstanding any inconsistent provision of law or regulation to
    51  the contrary:
    52    (a) (i) For services provided by residential  health  care  facilities
    53  beginning April first, two thousand five, except for services identified
    54  in  subparagraph (ii) of this paragraph, and for facilities described in
    55  paragraph (d) of this subdivision,  for  purposes  of  establishing  the
    56  operating  component  of  rates of payment by governmental agencies, the
        S. 992                             125                           A. 1922
 
     1  commissioner shall utilize the regional  average  of  facility  specific
     2  allowable costs as reported by residential health care facilities in the
     3  two thousand three calendar year cost report, trended pursuant to law to
     4  the  applicable  rate  period  and  adjusted for case mix. Such regional
     5  average shall also be adjusted by a corridor percentage to be determined
     6  by the commissioner to arrive at a final average operating component  of
     7  rates  of  payment  for  each region. Region shall mean those regions as
     8  listed in paragraph (c) of this subdivision.
     9    (ii) This subdivision shall not apply to rates  paid  for  residential
    10  health care facility services provided to:
    11    (A)  residents  residing  in a residential health care facility desig-
    12  nated as an AIDS residential health  care  facility  or  residing  in  a
    13  discrete AIDS unit approved by the commissioner;
    14    (B)  residents  residing  in  discrete  units for the care of patients
    15  under the long-term inpatient rehabilitation program for traumatic brain
    16  injured patients established pursuant to department regulations;
    17    (C) residents residing in department approved discrete units  for  the
    18  care of long-term ventilator dependent residents;
    19    (D)  residents  residing in department approved discrete units specif-
    20  ically designated for the purpose of providing specialized programs  for
    21  residents requiring behavioral interventions; or
    22    (E)  residents in residential health care facilities or discrete units
    23  which provide extensive nursing, medical, psychological  and  counseling
    24  support services solely to children, as determined by the department.
    25    (b)  The  operating  component  of  the rate of payment shall mean all
    26  components of the rate except for the capital component.
    27    (c) The regions are established as follows:
    28    (i) Albany: Albany, Columbia, Greene, Montgomery, Rensselaer,  Sarato-
    29  ga, Schenectady, Schoharie, and Fulton counties;
    30    (ii) Binghamton: Broome, and Tioga counties;
    31    (iii)  Erie: Cattaraugus, Chautauqua, Erie, Niagara, and Orleans coun-
    32  ties;
    33    (iv) Elmira: Chemung, Steuben, and Schuyler counties;
    34    (v) Glens Falls: Essex, Warren, and Washington counties;
    35    (vi) Long Island: Nassau, and Suffolk counties;
    36    (vii) Orange: Chenango, Delaware, Orange, Otsego, Sullivan, and Ulster
    37  counties;
    38    (viii) New York City: Bronx, Kings, Queens,  Richmond,  and  New  York
    39  counties;
    40    (ix) Poughkeepsie: Dutchess, and Putnam counties;
    41    (x) Rochester: Livingston, Monroe, Ontario, and Wayne counties;
    42    (xi)  Central  Rural:  Cayuga,  Cortland,  Seneca, Tompkins, and Yates
    43  counties;
    44    (xii) Syracuse: Madison, and Onondaga counties;
    45    (xiii) Utica: Herkimer, Jefferson, Lewis, Oneida, and Oswego counties;
    46    (xiv) Westchester: Rockland, and Westchester counties;
    47    (xv) Northern Rural: Clinton, Franklin, Hamilton, and  St.    Lawrence
    48  counties; and
    49    (xvi) Western Rural: Allegany, Genesee, and Wyoming counties.
    50    (d)  For  any newly constructed residential health care facility which
    51  receives establishment approval by the public health council in  accord-
    52  ance with section twenty eight hundred one-a of this article on or after
    53  April  first, two thousand five; any new operator of an ongoing residen-
    54  tial health care facility established pursuant to section  twenty  eight
    55  hundred  one-a  of  this  article  on or after April first, two thousand
    56  five; or any facility in receivership on  and  after  April  first,  two
        S. 992                             126                           A. 1922
 
     1  thousand  five,  the  operating  component  of the rate of payment shall
     2  equal the regional average operating component of facilities within  its
     3  region as determined pursuant to this subdivision provided however, such
     4  regional average operating component shall not be adjusted by a corridor
     5  percentage.
     6    (e)  Notwithstanding  any inconsistent provision of the state adminis-
     7  trative procedure act or any other provision of law or regulation to the
     8  contrary, the commissioner shall adopt or amend on  an  emergency  basis
     9  any  regulation  the  commissioner determines necessary to implement any
    10  provision of this subdivision.
    11    § 28. Notwithstanding any inconsistent provision of law, rule or regu-
    12  lation to the contrary, the provisions of section 1 of chapter 41 of the
    13  laws of 1992, as amended, shall remain and be in full force  and  effect
    14  on and after April 1, 2000 through March 31, 2003 and on and after April
    15  1, 2003 through March 31, 2005 and annually thereafter provided however,
    16  for  periods  beginning  April  1,  2005  and thereafter, such adult day
    17  services maximum daily rate  of  payment  shall  not  exceed  sixty-five
    18  percent  of  the  residential  health care facility per diem rate estab-
    19  lished on a regional basis pursuant to a chapter of the laws of 2005.
    20    § 29. Notwithstanding any inconsistent provision of law or  regulation
    21  to  the  contrary,  residential  health  care  facility rates of payment
    22  determined pursuant to article 28 of the public health law for  services
    23  provided on and after April 1, 2005, except for the establishment of any
    24  statewide or any peer group base, mean, or ceiling prices per day, shall
    25  be  calculated  utilizing only the number of residents properly assessed
    26  and reported in each  patient  classification  group  and  eligible  for
    27  medical  assistance  pursuant  to  title  11  of article 5 of the social
    28  services law.
    29    § 30. Notwithstanding any inconsistent provision of law or regulation,
    30  residential health care facility rates of payment determined pursuant to
    31  article 28 of the public health law for services provided on  and  after
    32  January  1, 2006, shall not include an amount for prescription drugs for
    33  residents eligible for medical assistance pursuant to title 11 of  arti-
    34  cle  5 of the social services law and eligible for part D of title XVIII
    35  of the federal social security act  contingent  upon  implementation  of
    36  such provision of the federal social security act in this State.
    37    §  31.  The  opening paragraph of subdivision 7 of section 3614 of the
    38  public health law, as amended by chapter 81 of  the  laws  of  1995,  is
    39  amended to read as follows:
    40    Notwithstanding  any  inconsistent provision of law or regulation, for
    41  purposes of establishing rates of payment by governmental  agencies  for
    42  certified  home  health  agencies  for  the period April first, nineteen
    43  hundred ninety-five  through  December  thirty-first,  nineteen  hundred
    44  ninety-five  and  for  rate periods beginning on or after January first,
    45  nineteen hundred ninety-six, the reimbursable base  year  administrative
    46  and  general costs of a provider of services shall not exceed the state-
    47  wide average of total reimbursable base year administrative and  general
    48  costs  of  such  providers  of services. The amount of such reduction in
    49  certified home health agency rates of payments made  during  the  period
    50  April  first,  nineteen  hundred ninety-five through March thirty-first,
    51  nineteen hundred ninety-six shall be adjusted in  the  nineteen  hundred
    52  ninety-six  rate  period  on  a pro-rata basis, if it is determined upon
    53  post-audit review by June fifteenth,  nineteen  hundred  ninety-six  and
    54  reconciliation  that  the  savings  for  the  state share, excluding the
    55  federal and local government  shares,  of  medical  assistance  payments
    56  pursuant  to  title  eleven  of  article five of the social services law
        S. 992                             127                           A. 1922
 
     1  based on the limitation of such payment pursuant to this subdivision  is
     2  in  excess  of one million five hundred thousand dollars or is less than
     3  one million five hundred thousand dollars for payments made on or before
     4  March thirty-first, nineteen hundred ninety-six to reflect the amount by
     5  which  such  savings  are  in  excess  of or lower than one million five
     6  hundred thousand dollars.  For rate periods on and after January  first,
     7  two  thousand  five, there shall be no such reconciliation of the amount
     8  of savings in excess of or lower than one million five hundred  thousand
     9  dollars; provided, however, that if the provisions of this paragraph are
    10  extended  pursuant  to  a chapter of the laws of two thousand five, this
    11  amendment shall be of no force or effect.
    12    § 32. Section 3614 of the public health law is amended by adding a new
    13  subdivision 7-a to read as follows:
    14    7-a. Notwithstanding any inconsistent provision of law or  regulation,
    15  for  the purposes of establishing rates of payment by governmental agen-
    16  cies for long term home health care programs for the period April first,
    17  two thousand five, through December thirty-first, two thousand five, and
    18  for rate periods beginning on and after January first, two thousand six,
    19  the reimbursable base year administrative and general costs of a provid-
    20  er of services shall not exceed the statewide average of total reimburs-
    21  able base year administrative and general costs  of  such  providers  of
    22  services.
    23    No such limit shall be applied to a provider of services reimbursed on
    24  an  initial budget basis, or a new provider, excluding changes in owner-
    25  ship or changes in name, who begins operations in the year prior to  the
    26  year which is used as a base year in determining rates of payment.
    27    For  the  purposes  of this subdivision, reimbursable base year opera-
    28  tional costs shall mean those  base  year  operational  costs  remaining
    29  after  application of all other efficiency standards, including, but not
    30  limited to, cost guidelines.
    31    The limitation on reimbursement for provider administrative and gener-
    32  al expenses provided  by  this  subdivision  shall  be  expressed  as  a
    33  percentage  reduction  for  the  rate promulgated by the commissioner to
    34  each long term home health care program provider.
    35    § 33. The social services law is amended by adding a new section 367-s
    36  to read as follows:
    37    § 367-s. Long term care demonstration program.  1. Notwithstanding any
    38  inconsistent provision of law, the commissioner of health is  authorized
    39  to establish a long term care demonstration program for persons eligible
    40  to  receive  services  under this title, to operate in up to four social
    41  services districts, for the purposes of creating incentives for  provid-
    42  ers  to care for individuals with more complex medical needs, supporting
    43  relatives and other caregivers to assist patients needing care  at  home
    44  and reducing the need for institutionalization.
    45    2.  The  provisions  of  this section shall not take effect unless all
    46  necessary approvals under federal law and regulation have been  obtained
    47  to  receive  federal  financial participation in the costs of the health
    48  care services provided pursuant to this section.
    49    3. (a) The demonstration program established pursuant to this  section
    50  may  include  a  program to improve the availability of care for persons
    51  with clinically complex care needs who are being discharged from  hospi-
    52  tals  or  residential  health  care  facilities.  In this regard, and in
    53  accordance with paragraph (d)  of  this  subdivision,  the  commissioner
    54  shall  adjust  the  rates  of  payment  to selected home health agencies
    55  certified under article thirty-six of the public health law that provide
    56  services to such persons.
        S. 992                             128                           A. 1922
 
     1    (b) Eligible certified home health agencies shall:
     2    (i)  demonstrate  they  have  the  experience and resources to provide
     3  services to individuals who are discharged from hospitals or residential
     4  health care facilities with clinically complex care needs, as determined
     5  in accordance with criteria established by the commissioner.
     6    (ii) demonstrate that they are capable of meeting  such  other  condi-
     7  tions as may be established by the commissioner.
     8    (c)  In selecting eligible certified home health agencies, the commis-
     9  sioner shall consider  the  likelihood  that  the  agency  will  provide
    10  improved availability of care and may consider such other matters as the
    11  commissioner deems appropriate.
    12    (d)  The  adjusted Medicaid rate pursuant to this subdivision shall be
    13  available for eligible  certified  home  health  agencies  for  services
    14  provided  to  individuals,  eligible  for medical assistance pursuant to
    15  this title, who are discharged from a  hospital  or  residential  health
    16  care  facility  and have clinically complex care needs, as determined in
    17  accordance with criteria established  by  the  commissioner.  Such  rate
    18  shall  be payable for services provided up to the first sixty days after
    19  discharge from a hospital or residential health care facility.
    20    4. One or  more  demonstration  sites  established  pursuant  to  this
    21  section  may  include  the  provision of respite care through innovative
    22  models. Subject to the approval of the director of the division  of  the
    23  budget,  the  commissioner  is  authorized to establish payment rates or
    24  fees for services provided pursuant to this subdivision.
    25    5. One or more of the demonstration sites established pursuant to this
    26  section may include a  program  with  authority  to  make  payments  for
    27  personal care services that are provided by a consumer's family members.
    28    6.  The demonstration program established pursuant to this section may
    29  be established without regard to the provisions of the state administra-
    30  tive procedure act.    Notwithstanding  any  inconsistent  provision  of
    31  section one hundred twelve or article eleven of the state finance law or
    32  section  one  hundred  forty-two  of the economic development law or any
    33  other law, the department of health is  authorized  to  enter  into  any
    34  agreements required to implement the provision of this section without a
    35  competitive bid or request for proposals process.
    36    §  34.  Paragraph (e) of subdivision 1 of section 369-ee of the social
    37  services law, as added by chapter 1 of the laws  of  1999,  subparagraph
    38  (v)  as  amended by chapter 419 of the laws of 2000, subparagraphs (xiv)
    39  and (xv) as amended and subparagraph (xvi) as added by  chapter  526  of
    40  the laws of 2002, is amended to read as follows:
    41    (e)  "Health  care services" means the following services and supplies
    42  as defined by the commissioner in consultation with  the  superintendent
    43  of insurance:
    44    (i) the services of physicians, nurse practitioners, and other related
    45  personnel which are provided on an outpatient or inpatient basis;
    46    (ii)  inpatient  hospital  services provided by a general hospital[, a
    47  facility operated by the office of mental health under section  7.17  of
    48  the  mental  hygiene  law,  a  facility  issued an operating certificate
    49  pursuant to the provisions of article twenty-three or thirty-one of  the
    50  mental hygiene law];
    51    (iii) laboratory tests;
    52    (iv) diagnostic x-rays;
    53    (v) prescription drugs and non-prescription smoking cessation products
    54  or devices;
    55    (vi) [durable medical equipment;
    56    (vii)] radiation therapy, chemotherapy, and hemodialysis;
        S. 992                             129                           A. 1922
 
     1    [(viii)] (vii) emergency room services;
     2    [(ix) inpatient and outpatient mental health and alcohol and substance
     3  abuse services, as defined by the commissioner;
     4    (x)  prehospital  emergency  medical  services for the treatment of an
     5  emergency medical condition when such services are provided by an  ambu-
     6  lance service;
     7    (xi)  emergency,  preventive  and  routine  dental care, to the extent
     8  offered by a family health insurance plan  described  in  this  section,
     9  except orthodontia and cosmetic surgery;
    10    (xii) emergency, preventive and routine vision care;
    11    (xiii) speech and hearing services;
    12    (xiv)] (viii) diabetic supplies and equipment; and
    13    [(xv)]  (ix)  services  provided to meet the requirements of 42 U.S.C.
    14  1396d(r)[; and
    15    (xvi) hospice services].
    16    § 35. Subdivision 2-a of section 369-ee of the social services law  is
    17  REPEALED and a new subdivision 2-a is added to read as follows:
    18    2-a. Co-payments. (a) Subject to federal approval pursuant to subdivi-
    19  sion  six of this section, persons receiving family health plus coverage
    20  under this section shall be responsible to make co-payments  in  accord-
    21  ance with the following schedule:
    22    (i)  inpatient hospital services shall have a two hundred fifty dollar
    23  co-payment for each continuous hospital confinement;
    24    (ii) outpatient surgical services shall  have  a  seventy-five  dollar
    25  co-payment per occurrence;
    26    (iii)  emergency  room  services  shall have a fifty dollar co-payment
    27  which shall be waived if hospital admission results from  the  emergency
    28  room visit;
    29    (iv) generic prescription drugs shall have a ten dollar co-payment and
    30  brand name prescription drugs shall have a twenty dollar co-payment;
    31    (v) all other services shall have a twenty dollar co-payment;
    32    (b)  The  following services shall not be subject to co-payments under
    33  this subdivision:
    34    (i) family planning services; and
    35    (ii) prenatal care services provided to pregnant women, labor,  deliv-
    36  ery and services related to the sixty-day post-partum period.
    37    §  36.  Paragraph (i) of subdivision 1 of section 369-ee of the social
    38  services law, as added by section 2 of part B of chapter 58 of the  laws
    39  of 2004, is amended to read as follows:
    40    (i) "Resources" for purposes of this title shall have the same meaning
    41  as  determined  in  accordance  with paragraph (a) of subdivision two of
    42  section three hundred sixty-six of  this  title  except  that  the  term
    43  savings  referred  to  in subparagraph four of such paragraph shall mean
    44  household savings in an amount [equal to  at  least  one  hundred  fifty
    45  percent  of  the  applicable  allowable  income  amount  permitted under
    46  subparagraph seven  of  such  paragraph]  not  to  exceed  ten  thousand
    47  dollars.
    48    §  37. Subparagraph (iii) of paragraph (a) of subdivision 2 of section
    49  369-ee of the social services law, as added by chapter 1 of the laws  of
    50  1999, is amended to read as follows:
    51    (iii)  does not have [equivalent] health care coverage under insurance
    52  or equivalent mechanisms, as defined by the commissioner in consultation
    53  with the superintendent of insurance, is not a federal,  state,  county,
    54  municipal or school district employee, and is not employed by an employ-
    55  er with more than fifty employees;
        S. 992                             130                           A. 1922
 
     1    §  38.  Subparagraph (iv) of paragraph (a) of subdivision 2 of section
     2  369-ee of the social services law, as added by chapter 1 of the laws  of
     3  1999, is amended to read as follows:
     4    (iv)  [(A)]  was  not covered by a group health plan based upon his or
     5  her employment or a  family  member's  employment,  as  defined  by  the
     6  commissioner  in  consultation  with  the  superintendent  of insurance,
     7  during the [six month] twelve-month period prior  to  the  date  of  the
     8  application under this title, except in the case of:
     9    (I) loss of employment due to factors other than voluntary separation;
    10    (II)  death  of  a  family  member which results in termination of the
    11  applicant's coverage under the group health plan;
    12    (III) change to a new employer that does not  provide  an  option  for
    13  comprehensive health benefits coverage;
    14    (IV)  change  of  residence  so  that  no employer-based comprehensive
    15  health benefits coverage is available;
    16    (V) [discontinuation of comprehensive health benefits coverage to  all
    17  employees of the applicant's employer;
    18    (VI)]  expiration  of the coverage periods established by COBRA or the
    19  provisions of subsection (m) of section three thousand two hundred twen-
    20  ty-one, subsection (k) of section four thousand three hundred  four  and
    21  subsection (e) of section four thousand three hundred five of the insur-
    22  ance law;
    23    [(VII)] (VI) termination of comprehensive health benefits coverage due
    24  to long-term disability; or
    25    [(VIII)]  (VII)  loss of employment due to need to care for a child or
    26  disabled household member or relative[; or
    27    (IX) reduction in wages or hours or an increase in the cost of  cover-
    28  age so that coverage is no longer affordable or available.
    29    (B)  the  implementation  of  this subparagraph shall take effect only
    30  upon the commissioner's finding that insurance provided under this title
    31  is substituting for coverage under group health plans  in  excess  of  a
    32  percentage  specified  pursuant to subparagraph (ii) of paragraph (d) of
    33  subdivision two of section twenty-five  hundred  eleven  of  the  public
    34  health law].
    35    §  39.  Subparagraph  (i) of paragraph (d) of subdivision 3 of section
    36  369-ee of the social services law, as added by chapter 1 of the laws  of
    37  1999, is amended to read as follows:
    38    (i)  approved organizations shall adhere to marketing [and enrollment]
    39  guidelines established by the commissioner, which shall include but  not
    40  be  limited  to  marketing  [and enrollment] encounters between approved
    41  organizations and prospective enrollees, locations for such  encounters,
    42  and  prohibitions against telephone cold-calling and door-to-door solic-
    43  itation at the homes of prospective enrollees.  [Approved  organizations
    44  shall  be  permitted  to  assist  prospective enrollees in completion of
    45  enrollment forms at  approved  health  care  provider  sites  and  other
    46  approved  locations.  In  no  case  may  an  emergency room be deemed an
    47  approved location. Approved organizations shall submit enrollment  forms
    48  to the local department of social services.]
    49    §  40.  Subdivision  4 of section 369-ee of the social services law is
    50  REPEALED.
    51    § 41. Paragraph (a) of subdivision 5 of section 369-ee of  the  social
    52  services  law,  as added by chapter 1 of the laws of 1999, is amended to
    53  read as follows:
    54    (a) Personal interviews, pursuant to section three hundred sixty-six-a
    55  of this [chapter] article, may be required upon initial application only
    56  [and may be conducted in community settings]. Recertification of  eligi-
        S. 992                             131                           A. 1922
 
     1  bility  shall  take  place on no more than an annual basis and shall not
     2  require a personal interview. Nothing herein shall abridge  the  partic-
     3  ipant's  obligation  to  report  changes in residency, financial circum-
     4  stances or household composition.
     5    §  42. Paragraph (a) of subdivision 1 of section 212 of chapter 474 of
     6  the laws of 1996, amending the education law and other laws relating  to
     7  rates for residential health care facilities, as amended by section 9 of
     8  part  Z2  of  chapter  62  of  the  laws  of 2003, is amended to read as
     9  follows:
    10    (a) Notwithstanding any inconsistent provision of law or regulation to
    11  the contrary, effective beginning August 1, 1996, for the  period  April
    12  1,  1997  through  March 31, 1998, April 1, 1998 for the period April 1,
    13  1998 through March 31, 1999, August 1, 1999, for  the  period  April  1,
    14  1999 through March 31, 2000, April 1, 2000, for the period April 1, 2000
    15  through  March  31,  2001,  April  1, 2001, for the period April 1, 2001
    16  through March 31, 2002, April 1, 2002, for  the  period  April  1,  2002
    17  through March 31, 2003, and for the state fiscal year beginning April 1,
    18  2005, and each state fiscal year thereafter, the department of health is
    19  authorized to pay public general hospitals, as defined in subdivision 10
    20  of  section  2801 of the public health law, operated by the state of New
    21  York or by the state university of New York or by a county, which  shall
    22  not  include  a city with a population of over one million, of the state
    23  of New York, and those public general hospitals located in the county of
    24  Westchester, the county of Erie or  the  county  of  Nassau,  additional
    25  payments  for inpatient hospital services as medical assistance payments
    26  pursuant to title 11 of  article  5  of  the  social  services  law  for
    27  patients eligible for federal financial participation under title XIX of
    28  the  federal  social  security act in medical assistance pursuant to the
    29  federal laws and regulations governing disproportionate  share  payments
    30  to  hospitals  based  on  each  such  public  general hospital's medical
    31  assistance and uninsured patient losses after all other medical  assist-
    32  ance,  including  disproportionate share payments to such public general
    33  hospital for 1996, 1997, 1998, and 1999, based  initially  for  1996  on
    34  reported  1994  reconciled data as further reconciled to actual reported
    35  1996 reconciled data, and for 1997  based  initially  on  reported  1995
    36  reconciled data as further reconciled to actual reported 1997 reconciled
    37  data,  for  1998  based  initially  on  reported 1995 reconciled data as
    38  further reconciled to actual reported 1998  reconciled  data,  for  1999
    39  based  initially  on reported 1995 reconciled data as further reconciled
    40  to actual reported 1999 reconciled data, for  2000  based  initially  on
    41  reported  1995  reconciled data as further reconciled to actual reported
    42  2000 data, for 2001 based initially on reported 1995 reconciled data  as
    43  further reconciled to actual reported 2001 data, for 2002 based initial-
    44  ly  on  reported  2000  reconciled  data as further reconciled to actual
    45  reported 2002 data, and for state fiscal years beginning  on  and  after
    46  April  1,  2005,  based  initially  on  reported 2000 reconciled data as
    47  further reconciled to actual  reported  data  for  2005  and  to  actual
    48  reported  data for each respective succeeding year.  The payments may be
    49  added to rates of payment or made as aggregate payments to  an  eligible
    50  public general hospital.
    51    §  43. Paragraph (b) of subdivision 1 of section 211 of chapter 474 of
    52  the laws of 1996, amending the education law and other laws relating  to
    53  rates for residential health care facilities, as amended by section 7 of
    54  part B of chapter 1 of the laws of 2002, is amended to read as follows:
    55    (b) Notwithstanding any inconsistent provision of law or regulation to
    56  the  contrary,  effective  beginning  April  1,  2000, the department of
        S. 992                             132                           A. 1922
 
     1  health is authorized to pay public general hospitals, other  than  those
     2  operated  by  the state of New York or the state university of New York,
     3  as defined in subdivision 10 of section 2801 of the public  health  law,
     4  located  in  a  city  with  a  population  of over 1 million, additional
     5  initial payments for inpatient hospital services of $120 million  during
     6  each state fiscal year until March 31, 2003, and during the state fiscal
     7  year  beginning  April 1, 2005 and each state fiscal year thereafter, as
     8  medical assistance payments pursuant to title 11 of  article  5  of  the
     9  social  services law for patients eligible for federal financial partic-
    10  ipation under title XIX of the federal social security  act  in  medical
    11  assistance  pursuant  to  the  federal  laws  and  regulations governing
    12  disproportionate share payments to hospitals based on the relative share
    13  of each such non-state  operated  public  general  hospital  of  medical
    14  assistance  and uninsured patient losses after all other medical assist-
    15  ance, including disproportionate share payments to such  public  general
    16  hospitals  for  payments  made during the state fiscal year ending March
    17  31, 2001, based initially on reported 1995 reconciled  data  as  further
    18  reconciled  to  actual  reported  2000 or 2001 data,   for payments made
    19  during the state fiscal year ending March 31, 2002, based  initially  on
    20  reported  1995  reconciled data as further reconciled to actual reported
    21  2001 or 2002 data, for payments made during the state fiscal year ending
    22  March 31, 2003, based initially on  reported  2000  reconciled  data  as
    23  further  reconciled  to  actual reported 2002 or 2003 data, for payments
    24  made during state fiscal years ending on and after March 31, 2006, based
    25  initially on reported 2000 reconciled  data  as  further  reconciled  to
    26  actual  reported  data  for  2005  and  to actual reported data for each
    27  respective succeeding year.   The payments may  be  added  to  rates  of
    28  payment  or  made  as  aggregate  payments to an eligible public general
    29  hospital.
    30    § 44. Notwithstanding any contrary provision of law, no local  govern-
    31  mental  entity  shall require any general hospital or residential health
    32  care facility licensed under article 28 of  the  public  health  law  to
    33  transfer  to  such  local  governmental entity any funds attributable to
    34  payments received on an after April 1, 2005 pursuant to section  211  or
    35  212  of  chapter  474  of  the  laws of 1996, as amended, or pursuant to
    36  sections 12 and 14 of part A of chapter  1  of  the  laws  of  2002,  or
    37  section 13 or 14 of part B of chapter 1 of the laws of 2002, or pursuant
    38  to subdivision 12 of section 2808 of the public health law.
    39    §  45. Paragraphs (e) and (f) of subdivision 12 of section 2808 of the
    40  public health law, paragraph (e) as amended by section 7  and  paragraph
    41  (f)  as  amended  by  section  8 of part Z2 of chapter 62 of the laws of
    42  2003, are amended to read as follows:
    43    (e) Notwithstanding any inconsistent provision of law  or  regulation,
    44  the  commissioner  shall  provide,  in  addition to payments established
    45  pursuant to this article prior to application  of  this  section,  addi-
    46  tional  payments  under the medical assistance program pursuant to title
    47  eleven of article five of the social services law for non-state operated
    48  public residential health care facilities, including public  residential
    49  health care facilities located in the county of Nassau and the county of
    50  Westchester,  but  excluding  public  residential health care facilities
    51  operated by a town or city within a county, in an aggregate amount of up
    52  to $991.5 million in additional payments each state fiscal year for  the
    53  period  beginning  April first, two thousand through March thirty-first,
    54  two thousand [four] five.
    55    (f) The amount allocated to each eligible  public  residential  health
    56  care  facility  for each period shall be calculated as the result of (A)
        S. 992                             133                           A. 1922
 
     1  the total payment for each period multiplied by (B) the ratio of patient
     2  days for patients eligible for  medical  assistance  pursuant  to  title
     3  eleven of article five of the social services law provided by the public
     4  residential  health  care facility, divided by the total of such patient
     5  days summed for all eligible public residential health care  facilities.
     6  For  the  period August first, nineteen hundred ninety-six through March
     7  thirty-first, nineteen hundred ninety-seven,  nineteen  hundred  ninety-
     8  four  patient  days shall be utilized; for the period April first, nine-
     9  teen hundred ninety-seven through March thirty-first,  nineteen  hundred
    10  ninety-eight,   nineteen  hundred  ninety-five  patient  days  shall  be
    11  utilized; for the period  April  first,  nineteen  hundred  ninety-eight
    12  through  March  thirty-first,  nineteen  hundred  ninety-nine,  nineteen
    13  hundred ninety-six patient days shall be utilized; for the period  April
    14  first,  nineteen  hundred  ninety-nine  through  March thirty-first, two
    15  thousand, nineteen hundred ninety-seven patient days shall be  utilized;
    16  for the period April first, two thousand through March thirty-first, two
    17  thousand  one,  nineteen  hundred  ninety-eight  patient  days  shall be
    18  utilized; for the period April first, two  thousand  one  through  March
    19  thirty-first,  two  thousand  two,  nineteen hundred ninety-nine patient
    20  days shall be utilized; for the period April  first,  two  thousand  two
    21  through  March  thirty-first,  two  thousand three, two thousand patient
    22  days shall be utilized; for the period April first, two  thousand  three
    23  through  March thirty-first, two thousand four, two thousand one patient
    24  days shall be utilized; for the period April first,  two  thousand  four
    25  through  March thirty-first, two thousand five, two thousand two patient
    26  days shall be utilized.
    27    § 46. Subdivision 12 of section 2808  of  the  public  health  law  is
    28  amended by adding a new paragraph (e-1) to read as follows:
    29    (e-1) Notwithstanding any inconsistent provision of law or regulation,
    30  the  commissioner  shall  provide,  in  addition to payments established
    31  pursuant to this article prior to application  of  this  section,  addi-
    32  tional  payments  under the medical assistance program pursuant to title
    33  eleven of article five of the social services law for non-state operated
    34  public residential health care facilities, including public  residential
    35  health  care  facilities  located in the county of Nassau, the county of
    36  Westchester and the county of Erie,  but  excluding  public  residential
    37  health care facilities operated by a town or city within a county, in an
    38  aggregate  amount  of  up  to one hundred fifty million dollars in addi-
    39  tional payments for state fiscal year beginning April first,  two  thou-
    40  sand  five.  The  amount  allocated  to each eligible public residential
    41  health care facility for this period shall  be  computed  in  accordance
    42  with  the  provisions  of  paragraph  (f) of this subdivision, provided,
    43  however, that patient  days  shall  be  utilized  for  such  computation
    44  reflecting  actual  reported data for two thousand three and each repre-
    45  sentative succeeding year as applicable.
    46    § 47. Subparagraph (iv) of paragraph (b) of subdivision 6  of  section
    47  367-a  of the social services law, as amended by section 11 of part C of
    48  chapter 58 of the laws of 2004, is amended to read as follows:
    49    (iv) individuals enrolled in health maintenance organizations or other
    50  entities which provide comprehensive health services, or  other  managed
    51  care  programs  for  services covered by such programs, except that such
    52  persons, other than persons otherwise exempted from co-payments pursuant
    53  to subparagraphs (i), (ii), (iii) and (v) of this paragraph,  and  other
    54  than  those  persons enrolled in a managed long term care program, shall
    55  be subject to co-payments as described in subparagraph (v) of  paragraph
    56  (d) of this subdivision; and
        S. 992                             134                           A. 1922
 
     1    §  48.  Paragraph  (c) of subdivision 6 of section 367-a of the social
     2  services law is amended by adding a new subparagraph (iii)  to  read  as
     3  follows:
     4    (iii)  Notwithstanding  any  other  provision  of  this paragraph, co-
     5  payments charged for each generic prescription drug dispensed  shall  be
     6  one  dollar and for each brand name prescription drug dispensed shall be
     7  three dollars.
     8    § 49. Paragraph (f) of subdivision 6 of section 367-a  of  the  social
     9  services  law, as added by chapter 41 of the laws of 1992, is amended to
    10  read as follows:
    11    (f) (i) In the year commencing April first, nineteen  hundred  ninety-
    12  three and for each year thereafter, and ending in the year concluding on
    13  March thirty-first, two thousand five, no recipient shall be required to
    14  pay  more than a total of one hundred dollars in co-payments required by
    15  this subdivision, nor shall reductions in payments as a result  of  such
    16  co-payments exceed one hundred dollars for any recipient.
    17    (ii)  In  the  year  commencing April first, two thousand five and for
    18  each year thereafter, no recipient shall be required to pay more than  a
    19  total  of  two  hundred dollars in co-payments required by this subdivi-
    20  sion, nor shall reductions in payments as a result of  such  co-payments
    21  exceed two hundred dollars for any recipient.
    22    §  50.  Paragraph  (j) of subdivision 2 of section 365-a of the social
    23  services law is REPEALED.
    24    § 51. Subparagraph (i) of paragraph (a) of subdivision  4  of  section
    25  365-g  of  the social services law, as amended by chapter 59 of the laws
    26  of 1993, is amended to read as follows:
    27    (i) mental health continuing treatment [and continuing day treatment],
    28  day treatment, partial hospitalization, and intensive psychiatric  reha-
    29  bilitative  treatment  services  provided  pursuant  to paragraph (c) of
    30  subdivision two of section three hundred sixty-five-a of  this  chapter,
    31  alcoholism  services,  substance  abuse services, mental retardation and
    32  developmental disabilities services provided in clinics certified  under
    33  article twenty-eight of the public health law, or article [twenty-three]
    34  twenty-two or article thirty-one of the mental hygiene law; and
    35    §  52.  Paragraph  (a)  of  subdivision 3 of section 366 of the social
    36  services law, as amended by chapter 110 of the laws of 1971, is  amended
    37  to read as follows:
    38    (a)  Medical  assistance  shall  be  furnished  to applicants in cases
    39  where, although such applicant has a responsible  relative  with  suffi-
    40  cient  income  and resources to provide medical assistance as determined
    41  by the regulations of the department, the income and  resources  of  the
    42  responsible  relative are not available to such applicant because of the
    43  absence of such relative [or] and the refusal or failure of such  absent
    44  relative  to  provide the necessary care and assistance.  In such cases,
    45  however, the furnishing of  such  assistance  shall  create  an  implied
    46  contract  with such relative, and the cost thereof may be recovered from
    47  such relative in accordance with title six  of  article  three  of  this
    48  chapter and other applicable provisions of law.
    49    §  53.  Section  369 of the social services law is amended by adding a
    50  new subdivision 7 to read as follows:
    51    7. Notwithstanding any provision of law to the contrary, the office of
    52  the attorney general shall, at the request of the department of  health,
    53  commence  actions  or  proceedings  in accordance with the provisions of
    54  this section and sections one hundred one, one  hundred  four,  and  one
    55  hundred  four-b,  paragraph  (a)  of  subdivision three of section three
    56  hundred sixty-six, subparagraph one of paragraph (h) of subdivision four
        S. 992                             135                           A. 1922
 
     1  of section three hundred sixty-six and paragraph (b) of subdivision  two
     2  of  section  three hundred sixty-seven-a of this chapter, to recover the
     3  cost of medical assistance furnished pursuant to title eleven-d of  this
     4  article. Funds recovered pursuant to this subdivision, net of collection
     5  fees authorized by law, shall be distributed to the department of health
     6  for  deposit  in the medical assistance restitution account and shall be
     7  allocated by the department pursuant to law.
     8    § 54.  Clause (vi) of subparagraph l, the opening paragraph and clause
     9  (i) of subparagraph 3 and subparagraph 4 of paragraph (d) of subdivision
    10  5 of section 366 of the social services law, as added by chapter 170  of
    11  the laws of 1994, are amended to read as follows:
    12    (vi)  "look-back period" means the thirty-six month period, or, in the
    13  case of payments from a trust or portions of a trust which  are  treated
    14  as  assets  disposed  of  by the individual pursuant to department regu-
    15  lations, the sixty-month period, immediately preceding the date that  an
    16  institutionalized  individual  is both institutionalized and has applied
    17  for medical assistance, or in the case of a non-institutionalized  indi-
    18  vidual,  the date that such non-institutionalized individual applies for
    19  medical assistance coverage of long term care services; provided, howev-
    20  er, that the look-back period for all types of transfers shall be  sixty
    21  months if the commissioner obtains all necessary approvals under federal
    22  law  and  regulation  to  implement  such  a  look-back period; provided
    23  further that the use of a sixty-month look-back period for all types  of
    24  transfers  shall  continue  only if and for so long as the use of such a
    25  look-back period does not  prevent  the  receipt  of  federal  financial
    26  participation  under  the  medical  assistance program; provided further
    27  that the commissioner shall submit such waiver applications and/or state
    28  plan amendments as may be necessary to obtain approval  to  implement  a
    29  sixty-month  look-back  period  for all types of transfers and to ensure
    30  continued federal financial participation.
    31    In determining the medical assistance eligibility of an institutional-
    32  ized individual, any transfer of an asset by the individual or the indi-
    33  vidual's spouse for less than fair market value made within or after the
    34  look-back period shall render  the  individual  ineligible  for  nursing
    35  facility  services for the period of time specified in subparagraph four
    36  of this paragraph.  In determining the medical assistance eligibility of
    37  a non-institutionalized individual, any transfer  of  an  asset  by  the
    38  individual  or  the  individual's spouse for less than fair market value
    39  made within or after the look-back period shall  render  the  individual
    40  ineligible  for long term care services for the period of time specified
    41  in subparagraph four of this paragraph. Notwithstanding  the  provisions
    42  of this subparagraph, an individual shall not be ineligible for services
    43  solely by reason of any such transfer to the extent that:
    44    (i) [in the case of an institutionalized individual,] the asset trans-
    45  ferred  was  a  home  and  title  to the home as transferred to: (A) the
    46  spouse of the individual; or (B) a child of the individual who is  under
    47  the  age of twenty-one years or blind or disabled; or (C) in the case of
    48  an institutionalized individual, a sibling of the individual who has  an
    49  equity  interest  in such home and who resided in such home for a period
    50  of at least one year immediately before the date the  individual  became
    51  an institutionalized individual; or (D) in the case of an institutional-
    52  ized individual, a child of the individual who was residing in such home
    53  for a period of at least two years immediately before the date the indi-
    54  vidual  became an institutionalized individual, and who provided care to
    55  the individual which permitted the individual to reside at  home  rather
    56  than in an institution or facility; or
        S. 992                             136                           A. 1922
 
     1    (4)  (i) Any transfer made by an individual or the individual's spouse
     2  under subparagraph three of this paragraph shall cause the person to  be
     3  ineligible  for  services  for  a  period equal to the total, cumulative
     4  uncompensated value of all assets transferred during or after the  look-
     5  back  period,  divided  by the average monthly costs of nursing facility
     6  services provided to a private patient for a given period of time at the
     7  time of application, as determined pursuant to the  regulations  of  the
     8  department.  The  period of ineligibility shall begin with the first day
     9  of the first month during or after which assets  have  been  transferred
    10  for  less  than fair market value, and which does not occur in any other
    11  periods of ineligibility under this  paragraph.  For  purposes  of  this
    12  subparagraph,  the average monthly costs of nursing facility services to
    13  a private patient for a given period of time at the time of  application
    14  shall  be  presumed  to  be  one  hundred  twenty percent of the average
    15  medical assistance rate of payment as of the first  day  of  January  of
    16  each year for nursing facilities within the region wherein the applicant
    17  resides, as established pursuant to paragraph (b) of subdivision sixteen
    18  of section twenty-eight hundred seven-c of the public health law.
    19    (ii)  Notwithstanding any provision of clause (i) of this subparagraph
    20  to the contrary, the period of  ineligibility  described  therein  shall
    21  begin  on  the  first day the individual is receiving services for which
    22  medical assistance coverage would be available but for the provisions of
    23  subparagraph three of this paragraph, and which does not  occur  in  any
    24  other periods of ineligibility under this paragraph, if the commissioner
    25  obtains  all  necessary  approvals  under  federal law and regulation to
    26  implement such a period of ineligibility. The use of such  a  period  of
    27  ineligibility  shall  continue  only  if  and for so long as it does not
    28  prevent the receipt of federal financial participation under the medical
    29  assistance program. The commissioner shall submit such  waiver  applica-
    30  tions  and/or  state  plan  amendments  as  may  be  necessary to obtain
    31  approval to implement the period  of  ineligibility  described  in  this
    32  clause and to ensure continued federal financial participation.
    33    §  55. Subparagraph 1 of paragraph (d) of subdivision 5 of section 366
    34  of the social services law is amended by adding two new clauses (xi) and
    35  (xii) to read as follows:
    36    (xi) "non-institutionalized individual" means an individual who is not
    37  an institutionalized individual, as defined  in  clause  (vii)  of  this
    38  subparagraph.
    39    (xii)  "long  term  care  services"  means  home health care services,
    40  personal care services, assisted living program services and such  other
    41  services  for which medical assistance is otherwise available under this
    42  chapter which are designated as long term care  services  in  the  regu-
    43  lations of the department.
    44    §  56.  Paragraph  (d)  of  subdivision 5 of section 366 of the social
    45  services law is amended by adding  a  new  subparagraph  7  to  read  as
    46  follows:
    47    (7)  In  the  case  of  a transfer by an individual which results in a
    48  period of ineligibility for such individual or his or her  spouse,  such
    49  period of ineligibility will continue without regard to the individual's
    50  becoming  an institutionalized individual if the transfer was made while
    51  the individual was a non-institutionalized individual and without regard
    52  to the individual's becoming a non-institutionalized individual  if  the
    53  transfer was made while the individual was an institutionalized individ-
    54  ual.  In  no event shall the total period of ineligibility for long term
    55  care services and nursing facility  services  resulting  from  the  same
        S. 992                             137                           A. 1922
 
     1  transfer of assets exceed the period calculated pursuant to subparagraph
     2  four of this paragraph.
     3    §  57.  Paragraph  (b) of subdivision 5 of section 366-c of the social
     4  services law, as added by chapter 558 of the laws of 1989, is amended to
     5  read as follows:
     6    (b) An institutionalized spouse shall not be  ineligible  for  medical
     7  assistance  by reason of excess resources determined under paragraph (a)
     8  of this subdivision, if (i) the  institutionalized  spouse  executes  an
     9  assignment  of  support  from the community spouse in favor of the local
    10  social services district and the department,  or  the  institutionalized
    11  spouse  is  unable  to execute such assignment due to physical or mental
    12  impairment, [or] and (ii) to deny assistance would create an undue hard-
    13  ship, as defined by the commissioner.
    14    § 58.  Paragraph (a) of subdivision 2 of section 365-a of  the  social
    15  services  law,  as amended by chapter 47 of the laws of 1996, is amended
    16  to read as follows:
    17    (a) services of qualified physicians, [dentists, nurses,  and  private
    18  duty  nursing  services  shall  be  further subject to the provisions of
    19  section three hundred  sixty-seven-o  of  this  chapter,]  optometrists,
    20  nurse  midwives,  nurse  practitioners,  and  other related professional
    21  personnel;
    22    § 59. Paragraph (f) of subdivision 2 of section 365-a  of  the  social
    23  services law is REPEALED.
    24    §  60.  Paragraph  (l) of subdivision 2 of section 365-a of the social
    25  services law, as amended by chapter 81 of the laws of 1995,  is  amended
    26  to read as follows:
    27    (l)  care  and services of podiatrists, clinical psychologists, nurses
    28  and audiologists, including such care and services provided in a  hospi-
    29  tal  out-patient or clinic facility operated in compliance with applica-
    30  ble provisions of article twenty-eight of the  public  health  law,  and
    31  dentists,  which  care and services shall only be provided upon referral
    32  by a physician, nurse practitioner or certified nurse midwife in accord-
    33  ance with the program of early  and  periodic  screening  and  diagnosis
    34  established  pursuant to subdivision three of this section or to persons
    35  eligible for benefits under title XVIII of the federal  social  security
    36  act  as  qualified  medicare  beneficiaries  in  accordance with federal
    37  requirements therefor [and private duty nurses which care  and  services
    38  shall  only be provided in accordance with regulations of the department
    39  of health; provided, however, that private duty nursing  services  shall
    40  not  be  restricted when such services are more appropriate and cost-ef-
    41  fective than nursing services provided by a home health agency  pursuant
    42  to section three hundred sixty-seven-l]; provided, however, that nothing
    43  in  this  paragraph shall be construed as limiting the care and services
    44  of clinical psychologists or audiologists provided in a federally quali-
    45  fied health center, in a clinic facility that is organized to provide as
    46  its principal mission ongoing and long-term  rehabilitation  therapy  to
    47  individuals with developmental disabilities, or in an outpatient program
    48  licensed by the office of mental retardation and developmental disabili-
    49  ties  under  article  sixteen, the office of mental health under article
    50  thirty-one, and the office of alcoholism and  substance  abuse  services
    51  under article thirty-two of the mental hygiene law;
    52    §  61.  Paragraph  (n) of subdivision 2 of section 365-a of the social
    53  services law, as added by chapter 556 of the laws of 1986, is REPEALED.
    54    § 62. Subdivision 19 of section 854 of the general municipal  law,  as
    55  amended  by  chapter  659  of  the  laws  of 1997, is amended to read as
    56  follows:
        S. 992                             138                           A. 1922
 
     1    (19) "Continuing care retirement community" - shall mean any  facility
     2  that  has  been  granted  a certificate of authority pursuant to article
     3  forty-six or forty-six-A of the public health law and is established  to
     4  provide,  pursuant  to  continuing  care  retirement  contracts approved
     5  pursuant  to article forty-six of the public health law, or fee-for-ser-
     6  vice continuing care contracts approved pursuant to article  forty-six-A
     7  of  the  public health law, a comprehensive, cohesive living arrangement
     8  for the elderly, and certified by the commissioner of health,  that  (i)
     9  has  been  approved  for  the  issuance of industrial development agency
    10  bonds by the continuing care retirement community  council  pursuant  to
    11  section  forty-six  hundred  four-a of the public health law except that
    12  paragraphs b and g of  subdivision  two  of  section  forty-six  hundred
    13  four-a  of  the  public  health law shall not apply to a continuing care
    14  retirement community granted a  certificate  of  authority  pursuant  to
    15  article  forty-six-A of the public health law and (ii) is a not-for-pro-
    16  fit corporation as defined in section one hundred two  of  the  not-for-
    17  profit  corporation  law  that  is (a) eligible for tax-exempt financing
    18  under section [four thousand six] forty-six hundred four-a of the public
    19  health law and [the general municipal  law]  this  chapter  and  (b)  is
    20  exempt from taxation pursuant to section 501(c)(3) of the federal inter-
    21  nal  revenue  code;  except  that "continuing care retirement community"
    22  shall not include a facility granted a  certificate  of  authority  upon
    23  application of a state or local government applicant.
    24    §  63.  Section 4676 of the public health law, as added by chapter 519
    25  of the laws of 2004, is amended to read as follows:
    26    §  4676.  Industrial  development  agency  financing.  Fee-for-service
    27  continuing  care retirement communities developed pursuant to this arti-
    28  cle shall be eligible for industrial development financing in accordance
    29  with section forty-six hundred four-a of this chapter except  for  para-
    30  graphs  b  and g of subdivision two of such section and financing by any
    31  public benefit corporation authorized to make loans to  continuing  care
    32  retirement  communities  under the laws of this state provided, however,
    33  the operator of such fee-for-service continuing care retirement communi-
    34  ty has demonstrated capability to comply fully with the requirements for
    35  a certificate of authority and has obtained a contingent certificate  of
    36  authority pursuant to section forty-six hundred fifty-five of this arti-
    37  cle  and  the  operator  has  agreed to meet the requirements of article
    38  eighteen-A of the general municipal law.
    39    § 64. Paragraph (a) of subdivision 1 of section 367-f  of  the  social
    40  services  law,  as  amended by section 28 of part B of chapter 58 of the
    41  laws of 2004, is amended to read as follows:
    42    (a) "Medicaid extended coverage" shall mean  eligibility  for  medical
    43  assistance  (i)  without  regard to the resource requirements of section
    44  three hundred sixty-six of this [article] title, or in the  case  of  an
    45  individual covered under an insurance policy or certificate described in
    46  subdivision  two of this section that provided a residential health care
    47  facility benefit less than three years in  duration,  without  consider-
    48  ation  of  an  amount  of  resources equivalent to the value of benefits
    49  received by the individual under such policy or certificate,  as  deter-
    50  mined under the rules of the partnership for long term care program, and
    51  (ii)  without  regard  to  the  recovery  of medical assistance from the
    52  estates of individuals and the imposition  of  liens  on  the  homes  of
    53  persons  pursuant  to section three hundred sixty-nine of this [article]
    54  title, with respect to resources exempt from consideration  pursuant  to
    55  subparagraph  (i)  of  this  paragraph;  provided, however, that nothing
        S. 992                             139                           A. 1922
 
     1  herein shall prevent the imposition of a lien or recovery against  prop-
     2  erty of an individual on account of medical assistance incorrectly paid.
     3    § 65. Subdivisions 2 and 4 of section 246 of chapter 81 of the laws of
     4  1995,  amending the public health law and other laws relating to medical
     5  reimbursement and welfare reform, as amended by section 10 of part Z2 of
     6  chapter 62 of the laws of 2003, are amended to read as follows:
     7    2. Sections five, seven through nine,  twelve  through  fourteen,  and
     8  eighteen  of  this  act  shall  be deemed to have been in full force and
     9  effect on and after April 1, 1995 through March  31,  1999  and  on  and
    10  after July 1, 1999 through March 31, 2000 and on and after April 1, 2000
    11  through  March 31, 2003 and on and after April 1, 2003 through March 31,
    12  2005 and annually thereafter;
    13    4. Section one of this act shall be deemed to have been in full  force
    14  and  effect on and after April 1, 1995 through March 31, 1999 and on and
    15  after July 1, 1999 through March 31, 2000 and on and after April 1, 2000
    16  through March 31, 2003 and on and after April 1, 2003 through March  31,
    17  2005 and annually thereafter.
    18    § 66. Section 4 of chapter 81 of the laws of 1995, amending the public
    19  health  law and other laws relating to medical reimbursement and welfare
    20  reform, as amended by section 15 of part Z2 of chapter 62 of the laws of
    21  2003, is amended to read as follows:
    22    § 4. Notwithstanding any inconsistent provision of law, except  subdi-
    23  vision  15  of section 2807 of the public health law and section 364-j-2
    24  of the social services law and section 32-g of part F of chapter 412  of
    25  the  laws of 1999, rates of payment for diagnostic and treatment centers
    26  established in accordance with paragraphs (b) and (h) of  subdivision  2
    27  of section 2807 of the public health law for the period ending September
    28  30, 1995 shall continue in effect through September 30, 2000 and for the
    29  periods  October  1, 2000 through September 30, 2003 and October 1, 2003
    30  through September 30, 2005 and annually thereafter, and further provided
    31  that rates in effect on March 31, 2003 as established in accordance with
    32  paragraph (e) of subdivision 2 of section 2807 of the public health  law
    33  shall  continue in effect for the period April 1, 2003 through September
    34  30, 2005 and annually thereafter.
    35    § 67. Subdivision 5 of section 246 of chapter 81 of the laws of  1995,
    36  amending  the  public  health  law  and  other  laws relating to medical
    37  reimbursement and welfare reform, as amended by section 16 of part Z2 of
    38  chapter 62 of the laws of 2003, is amended to read as follows:
    39    5. Section three of this act shall be deemed  to  have  been  in  full
    40  force  and  effect on and after April 1, 1995 through March 31, 1999 and
    41  on and after July 1, 1999 through March 31, 2000 and on and after  April
    42  1,  2000  through  March 31, 2003 and on and after April 1, 2003 through
    43  March 31, 2005 and annually thereafter;
    44    § 68. Section 194 of chapter 474 of the laws  of  1996,  amending  the
    45  education  law  and  other laws relating to rates for residential health
    46  care facilities, as amended by section 11 of part Z2 of  chapter  62  of
    47  the laws of 2003, is amended to read as follows:
    48    §  194.  1. Notwithstanding any inconsistent provision of law or regu-
    49  lation, the trend factors used to project reimbursable  operating  costs
    50  to the rate period for purposes of determining rates of payment pursuant
    51  to  article  28  of  the  public  health law for residential health care
    52  facilities for reimbursement of inpatient services provided to  patients
    53  eligible  for  payments made by state governmental agencies on and after
    54  April 1, 1996 through March 31, 1999 and for payments made on and  after
    55  July  1,  1999  through  March  31,  2000 and on and after April 1, 2000
    56  through March 31, 2003 and on and after April 1, 2003 through March  31,
        S. 992                             140                           A. 1922
 
     1  2005  and  annually thereafter shall reflect no trend factor projections
     2  or adjustments for the period April 1, 1996, through March 31, 1997.
     3    2.  The  commissioner  of health shall adjust such rates of payment to
     4  reflect the exclusion pursuant to this section of such  specified  trend
     5  factor projections or adjustments.
     6    §  69.  The  opening  paragraph and paragraph (a) of subdivision 16 of
     7  section 2808 of the public health law, as amended by section 17 of  part
     8  Z2 of chapter 62 of the laws of 2003, are amended to read as follows:
     9    Notwithstanding any inconsistent provision of law or regulation to the
    10  contrary,  residential  health care facility rates of payment determined
    11  pursuant to this article for governmental agencies for services provided
    12  on or after April first, nineteen hundred ninety-six through March thir-
    13  ty-first, nineteen hundred ninety-nine and on or after July first, nine-
    14  teen hundred ninety-nine through March thirty-first, two thousand and on
    15  and after April first, two  thousand  through  March  thirty-first,  two
    16  thousand  three and on and after April first, two thousand three through
    17  March thirty-first, two thousand five and annually thereafter, shall  be
    18  further  reduced  by the commissioner to encourage improved productivity
    19  and efficiency by providers by a factor determined as follows:
    20    (a) an aggregate reduction shall be calculated  for  each  residential
    21  health care facility commencing April first, nineteen hundred ninety-six
    22  through March thirty-first, nineteen hundred ninety-nine and on or after
    23  July first, nineteen hundred ninety-nine through March thirty-first, two
    24  thousand  and on and after April first, two thousand through March thir-
    25  ty-first, two thousand three and on and after April first, two  thousand
    26  three  through March thirty-first, two thousand five and annually there-
    27  after as the result of (i) fifty-six million dollars  on  an  annualized
    28  basis multiplied by (ii) the ratio of patient days for patients eligible
    29  for  payments  made by governmental agencies provided in a base year two
    30  years prior to the rate year by a residential health care  facility,  or
    31  for residential health care facility beds not fully in operation in such
    32  base  year  by  an  estimate of projected utilization for the rate year,
    33  divided by the total of such patient days  summed  for  all  residential
    34  health care facilities; and
    35    §  70.  Paragraph  (a) of subdivision 14 of section 2808 of the public
    36  health law, as amended by section 18 of part Z2 of  chapter  62  of  the
    37  laws of 2003, is amended to read as follows:
    38    (a) Notwithstanding any inconsistent provision of law or regulation to
    39  the  contrary,  for purposes of establishing rates of payment by govern-
    40  mental agencies for residential  health  care  facilities  for  services
    41  provided  on  or after April first, nineteen hundred ninety-five through
    42  March  thirty-first,  nineteen  hundred  ninety-nine  and  for  services
    43  provided  on  or  after July first, nineteen hundred ninety-nine through
    44  March thirty-first, two thousand and on and after April first, two thou-
    45  sand through March thirty-first, two thousand three  and  on  and  after
    46  April first, two thousand three through March thirty-first, two thousand
    47  five  and annually thereafter, the reimbursable base year administrative
    48  services and fiscal services costs, as defined in  the  New  York  state
    49  residential  health  care facility accounting and reporting manual, of a
    50  residential health care facility, excluding a provider of services reim-
    51  bursed on an initial budget basis, shall, except as  otherwise  provided
    52  in this subdivision, not exceed the statewide average of total reimburs-
    53  able  base  year administrative and fiscal services costs of residential
    54  health care facilities. For the purposes of this subdivision, reimbursa-
    55  ble base year administrative and fiscal services costs shall mean  those
    56  base  year  administrative  and  fiscal  services  costs remaining after
        S. 992                             141                           A. 1922
 
     1  application of all other efficiency standards, including but not limited
     2  to, peer group cost ceilings or guidelines.
     3    §  71.  Paragraph  (b) of subdivision 14 of section 2808 of the public
     4  health law, as amended by section 19 of part Z2 of  chapter  62  of  the
     5  laws of 2003, is amended to read as follows:
     6    (b)  A  separate  statewide  average  of  total reimbursable base year
     7  administrative and fiscal services costs shall be determined for each of
     8  those facilities wherein eighty percent or  more  of  its  patients  are
     9  classified  with  a  patient  acuity equal to or less than  .83 which is
    10  used as the basis for a facility's case mix adjustment. For  the  period
    11  July  first,  two thousand through March thirty-first, two thousand one,
    12  the total reimbursable base  year  administrative  and  fiscal  services
    13  costs  of such facilities shall not exceed such separate statewide aver-
    14  age plus one and one-half percentage points. For annual  periods  there-
    15  after  [through  March thirty-first, two thousand five], the total reim-
    16  bursable base year administrative and  fiscal  services  costs  of  such
    17  facilities shall not exceed such separate statewide average. In no event
    18  shall  the  calculation  of  such separate statewide average result in a
    19  change in the statewide average determined under paragraph (a)  of  this
    20  subdivision.
    21    §  72.  Paragraph  (f) of subdivision 1 of section 64 of chapter 81 of
    22  the laws of 1995, amending the public health law and other laws relating
    23  to medical reimbursement and welfare reform, as amended by section 20 of
    24  part Z2 of chapter 62 of the  laws  of  2003,  is  amended  to  read  as
    25  follows:
    26    (f)  Prior  to  February  1, 2001, February 1, 2002, February 1, 2003,
    27  February 1, 2004, February 1, 2005 [and], February 1, 2006, and February
    28  1 of each year thereafter, the commissioner of  health  shall  calculate
    29  the  result  of  the statewide total of residential health care facility
    30  days of care provided to beneficiaries of title  XVIII  of  the  federal
    31  social  security act (medicare), divided by the sum of such days of care
    32  plus days of care provided to residents eligible for  payments  pursuant
    33  to  title 11 of article 5 of the social services law minus the number of
    34  days provided to  residents  receiving  hospice  care,  expressed  as  a
    35  percentage, for the period commencing January 1, through November 30, of
    36  the  prior  year  respectively, based on such data for such period. This
    37  value shall be called the 2000, 2001, 2002, 2003, 2004 [and],  2005  and
    38  each year thereafter statewide target percentage respectively.
    39    §  73.  Subparagraph (ii) of paragraph (b) of subdivision 3 of section
    40  64 of chapter 81 of the laws of 1995, amending the public health law and
    41  other laws relating to medical  reimbursement  and  welfare  reform,  as
    42  amended  by  section 21 of part Z2 of chapter 62 of the laws of 2003, is
    43  amended to read as follows:
    44    (ii) If the 1997, 1998, 2000, 2001, 2002, 2003, 2004 [and], 2005,  and
    45  each  year thereafter statewide target percentages are not for each year
    46  at least three percentage points higher than the statewide base percent-
    47  age, the commissioner of health shall determine the percentage by  which
    48  the  statewide  target  percentage  for  each year is not at least three
    49  percentage  points  higher  than  the  statewide  base  percentage.  The
    50  percentage  calculated  pursuant  to  this paragraph shall be called the
    51  1997, 1998, 2000, 2001, 2002, 2003, 2004 [or], 2005, and each year ther-
    52  eafter statewide reduction percentage respectively. If the  1997,  1998,
    53  2000, 2001, 2002, 2003, 2004 [or], 2005, and each year thereafter state-
    54  wide  target  percentage  for  the  respective  year  is  at least three
    55  percentage points higher than the statewide base percentage, the  state-
    56  wide reduction percentage for the respective year shall be zero.
        S. 992                             142                           A. 1922
 
     1    §  74. Subparagraph (iii) of paragraph (b) of subdivision 4 of section
     2  64 of chapter 81 of the laws of 1995, amending the public health law and
     3  other laws relating to medical  reimbursement  and  welfare  reform,  as
     4  amended  by  section 22 of part Z2 of chapter 62 of the laws of 2003, is
     5  amended to read as follows:
     6    (iii)  The  1998,  2000,  2001, 2002, 2003, 2004 [and], 2005, and each
     7  year thereafter statewide reduction percentage shall  be  multiplied  by
     8  one  hundred  two  million  dollars  respectively to determine the 1998,
     9  2000, 2001, 2002, 2003, 2004 [or], 2005, and each year thereafter state-
    10  wide aggregate reduction amount. If the 1998 and the 2000,  2001,  2002,
    11  2003,  2004  [and],  2005,  and each year thereafter statewide reduction
    12  percentage shall be zero respectively, there shall  be  no  1998,  2000,
    13  2001,  2002,  2003,  2004 [or], 2005, and each year thereafter reduction
    14  amount.
    15    § 75. Paragraph (b) of subdivision 5 of section 64 of  chapter  81  of
    16  the laws of 1995, amending the public health law and other laws relating
    17  to medical reimbursement and welfare reform, as amended by section 23 of
    18  part  Z2  of  chapter  62  of  the  laws  of 2003, is amended to read as
    19  follows:
    20    (b) The 1996, 1997, 1998, 1999, 2000, 2001, 2002,  2003,  2004  [and],
    21  2005,  and  each  year  thereafter statewide aggregate reduction amounts
    22  shall for each year be allocated by the  commissioner  of  health  among
    23  residential health care facilities that are eligible to provide services
    24  to  beneficiaries  of  title  XVIII  of  the federal social security act
    25  (medicare) and residents eligible for payments pursuant to title  11  of
    26  article  5 of the social services law on the basis of the extent of each
    27  facility's failure to achieve a two percentage points  increase  in  the
    28  1996  target  percentage, a three percentage point increase in the 1997,
    29  1998, 2000, 2001, 2002, 2003, 2004 [and], 2005, and each year thereafter
    30  target percentage and a two and one-quarter percentage point increase in
    31  the 1999 target percentage for each year, compared to the base  percent-
    32  age,  calculated on a facility specific basis for this purpose, compared
    33  to the statewide total of the  extent  of  each  facility's  failure  to
    34  achieve  a  two  percentage  points  increase  in  the  1996 and a three
    35  percentage point increase in the  1997  and  a  three  percentage  point
    36  increase in the 1998 and a two and one-quarter percentage point increase
    37  in  the  1999 target percentage and a three percentage point increase in
    38  the 2000, 2001, 2002, 2003, 2004 [and], 2005, and each  year  thereafter
    39  target  percentage  compared to the base percentage. These amounts shall
    40  be called the 1996, 1997, 1998,  1999,  2000,  2001,  2002,  2003,  2004
    41  [and],  2005,  and  each  year  thereafter  facility  specific reduction
    42  amounts respectively.
    43    § 76. Subdivision 5-a of section 246 of chapter  81  of  the  laws  of
    44  1995,  amending the public health law and other laws relating to medical
    45  reimbursement and welfare reform, as amended by section 13 of part Z2 of
    46  chapter 62 of the laws of 2003, is amended to read as follows:
    47    [5-a. Section sixty-four-a of this act shall be deemed to have been in
    48  full force and effect on and after April 1, 1995 through March 31,  1999
    49  and  on  and  after July 1, 1999 through March 31, 2000 and on and after
    50  April 1, 2000 through March 31, 2003 and on  and  after  April  1,  2003
    51  through March 31, 2005;]
    52    §  77.  Section  64-b  of chapter 81 of the laws of 1995, amending the
    53  public health law and other laws relating to medical  reimbursement  and
    54  welfare reform, as amended by section 14 of part Z2 of chapter 62 of the
    55  laws of 2003, is amended to read as follows:
        S. 992                             143                           A. 1922
 
     1    [§  64-b.  Notwithstanding  any  inconsistent  provision  of  law, the
     2  provisions of subdivision 7 of section 3614 of the public health law, as
     3  amended, shall remain and be in full force and effect on April  1,  1995
     4  through March 31, 1999 and on July 1, 1999 through March 31, 2000 and on
     5  and after April 1, 2000 through March 31, 2003 and on and after April 1,
     6  2003 through March 31, 2005.]
     7    §  78.  Section  228  of chapter 474 of the laws of 1996, amending the
     8  education law and other laws relating to rates  for  residential  health
     9  care  facilities,  as  amended by section 24 of part Z2 of chapter 62 of
    10  the laws of 2003, is amended to read as follows:
    11    § 228. 1. Definitions. (a) Regions,  for  purposes  of  this  section,
    12  shall  mean  a downstate region to consist of Kings, New York, Richmond,
    13  Queens, Bronx, Nassau and Suffolk counties  and  an  upstate  region  to
    14  consist  of  all  other New York state counties. A certified home health
    15  agency or long term home health care program shall  be  located  in  the
    16  same county utilized by the commissioner of health for the establishment
    17  of rates pursuant to article 36 of the public health law.
    18    (b)  Certified  home  health  agency  (CHHA)  shall  mean such term as
    19  defined in section 3602 of the public health law.
    20    (c) Long term home health care program (LTHHCP) shall mean  such  term
    21  as defined in subdivision 8 of section 3602 of the public health law.
    22    (d) Regional group shall mean all those CHHAs and LTHHCPs, respective-
    23  ly, located within a region.
    24    (e)  Medicaid  revenue percentage, for purposes of this section, shall
    25  mean CHHA and LTHHCP  revenues  attributable  to  services  provided  to
    26  persons  eligible  for payments pursuant to title 11 of article 5 of the
    27  social services law divided by such revenues plus CHHA and LTHHCP reven-
    28  ues attributable to services provided to beneficiaries of Title XVIII of
    29  the federal social security act (medicare).
    30    (f) Base period, for purposes of this  section,  shall  mean  calendar
    31  year 1995.
    32    (g) Target period. For purposes of this section, the 1996 target peri-
    33  od  shall  mean  August  1, 1996 through March 31, 1997, the 1997 target
    34  period shall mean January 1, 1997 through November 30,  1997,  the  1998
    35  target  period shall mean January 1, 1998 through November 30, 1998, the
    36  1999 target period shall mean January 1, 1999 through November 30, 1999,
    37  the 2000 target period shall mean January 1, 2000 through  November  30,
    38  2000, the 2001 target period shall mean January 1, 2001 through November
    39  30,  2001,  the  2002  target  period shall mean January 1, 2002 through
    40  November 30, 2002, the 2003 target period shall  mean  January  1,  2003
    41  through  November 30, 2003, the 2004 target period shall mean January 1,
    42  2004 through November 30, 2004, [and] the 2005 target period shall  mean
    43  January  1, 2005 through November 30, 2005, and each year thereafter the
    44  target period shall be January 1 through November 30 for that respective
    45  year.
    46    2. (a) Prior to February 1, 1997, for each regional group the  commis-
    47  sioner  of  health shall calculate the 1996 medicaid revenue percentages
    48  for the period commencing August 1, 1996 to the last date for which such
    49  data is available and reasonably accurate.
    50    (b) Prior to February 1, 1998, prior to February  1,  1999,  prior  to
    51  February  1, 2000, prior to February 1, 2001, prior to February 1, 2002,
    52  prior to February 1, 2003, prior to February 1, 2004, prior to  February
    53  1,  2005,  [and]  prior  to February 1, 2006, and prior to February 1 of
    54  each year thereafter for each regional group the commissioner of  health
    55  shall  calculate  the  prior year's medicaid revenue percentages for the
    56  period commencing January 1 through November 30 of such prior year.
        S. 992                             144                           A. 1922
 
     1    3. By September 15, 1996, for each regional group the commissioner  of
     2  health shall calculate the base period medicaid revenue percentage.
     3    4.  (a)  For  each  regional  group,  the 1996 target medicaid revenue
     4  percentage shall be calculated by subtracting the 1996 medicaid  revenue
     5  reduction percentages from the base period medicaid revenue percentages.
     6  The  1996  medicaid  revenue  reduction  percentage, taking into account
     7  regional and program differences in utilization of medicaid and medicare
     8  services, for the following regional groups shall be equal to:
     9    (i) one and one-tenth percentage points for CHHAs located  within  the
    10  downstate region;
    11    (ii)  six-tenths  of one percentage point for CHHAs located within the
    12  upstate region;
    13    (iii) one and eight-tenths percentage points for LTHHCPs located with-
    14  in the downstate region; and
    15    (iv) one and seven-tenths percentage points for LTHHCPs located within
    16  the upstate region.
    17    (b) For 1997, 1998, 2000, 2001, 2002, 2003, 2004, [and] 2005, and each
    18  year thereafter for each regional group,  the  target  medicaid  revenue
    19  percentage  for  the  respective year shall be calculated by subtracting
    20  the respective year's medicaid revenue  reduction  percentage  from  the
    21  base  period medicaid revenue percentage. The medicaid revenue reduction
    22  percentages for 1997, 1998, 2000, 2001, 2002, 2003,  2004,  [and]  2005,
    23  and  each  year  thereafter  taking  into  account  regional and program
    24  differences in utilization of medicaid and medicare  services,  for  the
    25  following regional groups shall be equal to for each such year:
    26    (i)  one  and one-tenth percentage points for CHHAs located within the
    27  downstate region;
    28    (ii) six-tenths of one percentage point for CHHAs located  within  the
    29  upstate region;
    30    (iii) one and eight-tenths percentage points for LTHHCPs located with-
    31  in the downstate region; and
    32    (iv) one and seven-tenths percentage points for LTHHCPs located within
    33  the upstate region.
    34    (c) For each regional group, the 1999 target medicaid revenue percent-
    35  age  shall  be  calculated  by  subtracting  the  1999  medicaid revenue
    36  reduction percentage from the base period medicaid  revenue  percentage.
    37  The  1999  medicaid  revenue  reduction percentages, taking into account
    38  regional and program differences in utilization of medicaid and medicare
    39  services, for the following regional groups shall be equal to:
    40    (i) eight hundred twenty-five thousandths  (.825)  of  one  percentage
    41  point for CHHAs located within the downstate region;
    42    (ii)  forty-five  hundredths  (.45)  of one percentage point for CHHAs
    43  located within the upstate region;
    44    (iii) one and thirty-five  hundredths  percentage  points  (1.35)  for
    45  [LTHHPs] LTHHCPs located within the downstate region; and
    46    (iv)  one  and  two hundred seventy-five thousandths percentage points
    47  (1.275) for LTHHCPs located within the upstate region.
    48    5. (a) For each regional group, if the 1996 medicaid revenue  percent-
    49  age  is  not  equal  to  or  less  than the 1996 target medicaid revenue
    50  percentage, the commissioner of health shall compare the  1996  medicaid
    51  revenue  percentage  to  the  1996 target medicaid revenue percentage to
    52  determine the amount of the shortfall which, when divided  by  the  1996
    53  medicaid   revenue  reduction  percentage,  shall  be  called  the  1996
    54  reduction factor. These amounts, expressed as a  percentage,  shall  not
    55  exceed  one  hundred percent. If the 1996 medicaid revenue percentage is
        S. 992                             145                           A. 1922
 
     1  equal to or less than the 1996 target medicaid revenue  percentage,  the
     2  1996 reduction factor shall be zero.
     3    (b)  For  1997,  1998, 1999, 2000, 2001, 2002, 2003, 2004, [and] 2005,
     4  and each year thereafter for each regional group, if the medicaid reven-
     5  ue percentage for the respective year is not equal to or less  than  the
     6  target medicaid revenue percentage for such respective year, the commis-
     7  sioner  of  health shall compare such respective year's medicaid revenue
     8  percentage to such respective year's target medicaid revenue  percentage
     9  to  determine  the  amount  of  the shortfall which, when divided by the
    10  respective year's medicaid revenue reduction percentage, shall be called
    11  the reduction factor for such respective year. These amounts,  expressed
    12  as  a  percentage, shall not exceed one hundred percent. If the medicaid
    13  revenue percentage for a particular year is equal to or  less  than  the
    14  target  medicaid  revenue percentage for that year, the reduction factor
    15  for that year shall be zero.
    16    6. (a) For each regional group, the 1996  reduction  factor  shall  be
    17  multiplied  by  the following amounts to determine each regional group's
    18  applicable 1996 state share reduction amount:
    19    (i) two million three hundred ninety thousand dollars ($2,390,000) for
    20  CHHAs located within the downstate region;
    21    (ii) seven hundred fifty thousand dollars ($750,000) for CHHAs located
    22  within the upstate region;
    23    (iii) one million two hundred seventy  thousand  dollars  ($1,270,000)
    24  for LTHHCPs located within the downstate region; and
    25    (iv)  five  hundred  ninety  thousand  dollars  ($590,000) for LTHHCPs
    26  located within the upstate region.
    27    For each regional group reduction, if the 1996 reduction factor  shall
    28  be zero, there shall be no 1996 state share reduction amount.
    29    (b)  For 1997, 1998, 2000, 2001, 2002, 2003, 2004 [and] 2005, and each
    30  year thereafter for each regional group, the reduction  factor  for  the
    31  respective  year  shall be multiplied by the following amounts to deter-
    32  mine each regional group's applicable state share reduction  amount  for
    33  such respective year:
    34    (i) two million three hundred ninety thousand dollars ($2,390,000) for
    35  CHHAs located within the downstate region;
    36    (ii) seven hundred fifty thousand dollars ($750,000) for CHHAs located
    37  within the upstate region;
    38    (iii)  one  million  two hundred seventy thousand dollars ($1,270,000)
    39  for LTHHCPs located within the downstate region; and
    40    (iv) five hundred  ninety  thousand  dollars  ($590,000)  for  LTHHCPs
    41  located within the upstate region.
    42    For  each  regional  group  reduction,  if  the reduction factor for a
    43  particular year shall be zero, there shall be no state  share  reduction
    44  amount for such year.
    45    (c) For each regional group, the 1999 reduction factor shall be multi-
    46  plied by the following amounts to determine each regional group's appli-
    47  cable 1999 state share reduction amount:
    48    (i) one million seven hundred ninety-two thousand five hundred dollars
    49  ($1,792,500) for CHHAs located within the downstate region;
    50    (ii)  five  hundred sixty-two thousand five hundred dollars ($562,500)
    51  for CHHAs located within the upstate region;
    52    (iii) nine hundred fifty-two thousand five hundred dollars  ($952,500)
    53  for LTHHCPs located within the downstate region; and
    54    (iv)  four  hundred forty-two thousand five hundred dollars ($442,500)
    55  for LTHHCPs located within the upstate region.
        S. 992                             146                           A. 1922
 
     1    For each regional group reduction, if the 1999 reduction factor  shall
     2  be zero, there shall be no 1999 state share reduction amount.
     3    7.  (a) For each regional group, the 1996 state share reduction amount
     4  shall be allocated by the commissioner of health among CHHAs and LTHHCPs
     5  on the basis of the extent  of  each  CHHA's  and  LTHHCP's  failure  to
     6  achieve  the  1996  target  medicaid revenue percentage, calculated on a
     7  provider specific basis utilizing revenues for this  purpose,  expressed
     8  as  a  proportion  of  the  total of each CHHA's and LTHHCP's failure to
     9  achieve the 1996 target medicaid revenue percentage within the  applica-
    10  ble  regional group. This proportion shall be multiplied by the applica-
    11  ble 1996 state share reduction amount calculation pursuant to  paragraph
    12  (a)  of  subdivision  6 of this section. This amount shall be called the
    13  1996 provider specific state share reduction amount.
    14    (b) For 1997, 1998, 1999, 2000, 2001, 2002, 2003, 2004 [and] 2005, and
    15  each year thereafter for each regional group, the state share  reduction
    16  amount for the respective year shall be allocated by the commissioner of
    17  health among CHHAs and LTHHCPs on the basis of the extent of each CHHA's
    18  and  LTHHCP's  failure to achieve the target medicaid revenue percentage
    19  for the applicable year, calculated on a provider specific basis utiliz-
    20  ing revenues for this purpose, expressed as a proportion of the total of
    21  each CHHA's and LTHHCP's failure to achieve the target medicaid  revenue
    22  percentage for the applicable year within the applicable regional group.
    23  This proportion shall be multiplied by the applicable year's state share
    24  reduction  amount calculation pursuant to paragraph (b) or (c) of subdi-
    25  vision 6 of this section. This  amount  shall  be  called  the  provider
    26  specific state share reduction amount for the applicable year.
    27    8.  (a)  The 1996 provider specific state share reduction amount shall
    28  be due to the state from each CHHA and LTHHCP and may be recouped by the
    29  state by March 31, 1997 in a lump sum amount or  amounts  from  payments
    30  due  to  the  CHHA  and  LTHHCP pursuant to title 11 of article 5 of the
    31  social services law.
    32    (b) The provider specific state share reduction amount for 1997, 1998,
    33  1999, 2000, 2001, 2002, 2003, 2004 [and] 2005, and each year  thereafter
    34  respectively,  shall  be  due to the state from each CHHA and LTHHCP and
    35  each year the amount due for such year may be recouped by the  state  by
    36  March  31  of  the  following  year in a lump sum amount or amounts from
    37  payments due to the CHHA and LTHHCP pursuant to title 11 of article 5 of
    38  the social services law.
    39    9. CHHAs and LTHHCPs shall submit such data and  information  at  such
    40  times  as  the  commissioner  of health may require for purposes of this
    41  section. The commissioner of health may use data available  from  third-
    42  party payors.
    43    10. On or about June 1, 1997, for each regional group the commissioner
    44  of  health  shall  calculate for the period August 1, 1996 through March
    45  31, 1997 a medicaid revenue percentage,  a  reduction  factor,  a  state
    46  share  reduction  amount,  and a provider specific state share reduction
    47  amount in accordance with the methodology provided in paragraph  (a)  of
    48  subdivision 2, paragraph (a) of subdivision 5, paragraph (a) of subdivi-
    49  sion  6 and paragraph (a) of subdivision 7 of this section. The provider
    50  specific state share reduction amount calculated in accordance with this
    51  subdivision shall be compared to the 1996 provider specific state  share
    52  reduction amount calculated in accordance with paragraph (a) of subdivi-
    53  sion 7 of this section. Any amount in excess of the amount determined in
    54  accordance  with paragraph (a) of subdivision 7 of this section shall be
    55  due to the state from each CHHA  and  LTHHCP  and  may  be  recouped  in
    56  accordance  with  paragraph (a) of subdivision 8 of this section. If the
        S. 992                             147                           A. 1922
 
     1  amount is less than the amount determined in accordance  with  paragraph
     2  (a)  of  subdivision 7 of this section, the difference shall be refunded
     3  to the CHHA and LTHHCP by the state no later than July 15,  1997.  CHHAs
     4  and  LTHHCPs  shall  submit  data  for the period August 1, 1996 through
     5  March 31, 1997 to the commissioner of health by April 15, 1997.
     6    11. If a CHHA or LTHHCP  fails  to  submit  data  and  information  as
     7  required for purposes of this section:
     8    (a) such CHHA or LTHHCP shall be presumed to have no decrease in medi-
     9  caid  revenue  percentage  between  the  applicable  base period and the
    10  applicable target period for purposes of the  calculations  pursuant  to
    11  this section; and
    12    (b)  the  commissioner of health shall reduce the current rate paid to
    13  such CHHA and such LTHHCP by state  governmental  agencies  pursuant  to
    14  article  36  of the public health law by one percent for a period begin-
    15  ning on the first day of the calendar month following the applicable due
    16  date as established by the commissioner of health and  continuing  until
    17  the last day of the calendar month in which the required data and infor-
    18  mation are submitted.
    19    12. The commissioner of health shall inform in writing the director of
    20  the  budget  and the chair of the senate finance committee and the chair
    21  of the assembly ways and means committee of the results  of  the  calcu-
    22  lations pursuant to this section.
    23    § 79. Notwithstanding any inconsistent provision of law, rule or regu-
    24  lation,  the  annual  percentage  reductions  set  forth  in sections 72
    25  through 78 of this act shall be prorated by the commissioner  of  health
    26  for  the period April 1, 2005 through March 31, 2006 and each respective
    27  year thereafter.
    28    § 80. Subdivision (x) of section 165 of chapter  41  of  the  laws  of
    29  1992,  amending the public health law and other laws relating to assess-
    30  ing certain health care providers, is REPEALED.
    31    § 81. Subdivision 11 of section 2807-c of the  public  health  law  is
    32  amended by adding a new paragraph (s-7) to read as follows:
    33    (s-7)  To the extent funds are available otherwise notwithstanding any
    34  inconsistent provision of law to the contrary, for  rate  periods  April
    35  first, two thousand five through March thirty-first, two thousand seven,
    36  the  commissioner  shall increase rates of payment for patients eligible
    37  for payments made by state governmental agencies by  an  amount  not  to
    38  exceed  forty-eight  million  dollars  annually  in  the aggregate. Such
    39  amount shall be allocated among those voluntary non-profit  and  private
    40  proprietary  general  hospitals  which  continue  to  provide  inpatient
    41  services as of April first, two thousand five under a  previous  or  new
    42  name  and which qualified for rate adjustments pursuant to paragraph (s)
    43  of this subdivision as in effect for the  period  July  first,  nineteen
    44  hundred  ninety-five through June thirtieth, nineteen hundred ninety-six
    45  proportionally based on each such general hospital's proportional  share
    46  of  total  funds allocated pursuant to paragraph (s) of this subdivision
    47  as in effect for the period of July first, nineteen hundred  ninety-five
    48  through  June  thirtieth, nineteen hundred ninety-six, provided however,
    49  that amounts allocable to previously but no longer  qualified  hospitals
    50  shall  be  proportionally  reallocated to the remaining qualified hospi-
    51  tals. The rate adjustments calculated in accordance with this  paragraph
    52  shall  be  subject  to  retrospective reconciliation to ensure that each
    53  hospital receives in the aggregate its proportionate share of  the  full
    54  allocation,  to the extent allowable under federal law, provided however
    55  that the department shall not be required  to  reconcile  payments  made
        S. 992                             148                           A. 1922
 
     1  pursuant  to  paragraph  (s)  of  this subdivision applicable to periods
     2  prior to September first, nineteen hundred ninety-seven.
     3    §  82. Subparagraph (iii) of paragraph (f) of subdivision 4 of section
     4  2807-c of the public health law, as amended by section 28 of part Z2  of
     5  chapter 62 of the laws of 2003, is amended to read as follows:
     6    (iii)  commencing  April  first, nineteen hundred ninety-seven through
     7  March thirty-first, nineteen hundred  ninety-nine  and  commencing  July
     8  first,  nineteen  hundred  ninety-nine  through  March thirty-first, two
     9  thousand and April first, two thousand through March  thirty-first,  two
    10  thousand  five  and  for  periods on and after April first, two thousand
    11  five, the reimbursable inpatient operating cost component of case  based
    12  rates  of  payment  per diagnosis-related group, excluding any operating
    13  cost components related to direct  and  indirect  expenses  of  graduate
    14  medical  education,  for  patients  eligible  for payments made by state
    15  governmental  agencies  shall  be  reduced  by  three  and  thirty-three
    16  hundredths  percent  to  encourage improved productivity and efficiency.
    17  Such election shall not alter the calculation of the group price  compo-
    18  nent  calculated pursuant to subparagraph (i) of paragraph (a) of subdi-
    19  vision seven of this section;
    20    § 83. Subparagraph (iii) of paragraph (k) of subdivision 4 of  section
    21  2807-c  of the public health law, as amended by section 29 of part Z2 of
    22  chapter 62 of the laws of 2003, is amended to read as follows:
    23    (iii) commencing April first, nineteen  hundred  ninety-seven  through
    24  March  thirty-first,  nineteen  hundred  ninety-nine and commencing July
    25  first, nineteen hundred  ninety-nine  through  March  thirty-first,  two
    26  thousand  and  April first, two thousand through March thirty-first, two
    27  thousand five and for periods on and after  April  first,  two  thousand
    28  five,  the  operating  cost component of rates of payment, excluding any
    29  operating cost components related to direct  and  indirect  expenses  of
    30  graduate medical education, for patients eligible for payments made by a
    31  state  governmental  agency  shall  be reduced by three and thirty-three
    32  hundredths percent to encourage improved  productivity  and  efficiency.
    33  The  facility  will  be eligible to receive the financial incentives for
    34  the physician specialty weighting incentive towards primary care  pursu-
    35  ant  to subparagraph (ii) of paragraph (a) of subdivision twenty-five of
    36  this section.
    37    § 84. The opening paragraph of subparagraph (vi) of paragraph  (b)  of
    38  subdivision  5 of section 2807-c of the public health law, as amended by
    39  section 30 of part Z2 of chapter 62 of the laws of 2003, is  amended  to
    40  read as follows:
    41    for  discharges on or after April first, nineteen hundred ninety-seven
    42  through  March  thirty-first,  nineteen  hundred  ninety-nine  and   for
    43  discharges  on or after July first, nineteen hundred ninety-nine through
    44  March thirty-first, two thousand and for discharges on  or  after  April
    45  first,  two  thousand  through March thirty-first, two thousand five and
    46  for discharges on or after April first, two thousand five, for  purposes
    47  of  reimbursement  of  inpatient hospital services for patients eligible
    48  for payments made by state governmental agencies, the average reimbursa-
    49  ble inpatient operating cost per discharge of a general hospital  shall,
    50  to encourage improved productivity and efficiency, be the sum of:
    51    §  85.  The opening paragraph and subparagraph (i) of paragraph (c) of
    52  subdivision 5 of section 2807-c of the public health law, as amended  by
    53  section  31 of part Z2 of chapter 62 of the laws of 2003, are amended to
    54  read as follows:
    55    Notwithstanding any inconsistent provision of this section, commencing
    56  July first, nineteen  hundred  ninety-six  through  March  thirty-first,
        S. 992                             149                           A. 1922
 
     1  nineteen  hundred  ninety-nine  and July first, nineteen hundred ninety-
     2  nine through March thirty-first, two thousand and April first, two thou-
     3  sand through March thirty-first, two thousand five and  for  periods  on
     4  and after April first, two thousand five, rates of payment for a general
     5  hospital  for  patients eligible for payments made by state governmental
     6  agencies shall be further  reduced  by  the  commissioner  to  encourage
     7  improved productivity and efficiency by providers by a factor determined
     8  as follows:
     9    (i) an aggregate reduction shall be calculated for each general hospi-
    10  tal  commencing  July  first,  nineteen hundred ninety-six through March
    11  thirty-first, nineteen hundred  ninety-nine  and  July  first,  nineteen
    12  hundred  ninety-nine  through March thirty-first, two thousand and April
    13  first, two thousand through March thirty-first, two  thousand  five  and
    14  for  periods  on and after April first, two thousand five, as the result
    15  of (A) eighty-nine million dollars on an annualized basis for each year,
    16  multiplied by (B) the ratio of patient days for  patients  eligible  for
    17  payments made by state governmental agencies provided in a base year two
    18  years prior to the rate year by a general hospital, divided by the total
    19  of such patient days summed for all general hospitals; and
    20    § 86. Clause (B-1) of subparagraph (i) of paragraph (f) of subdivision
    21  11  of section 2807-c of the public health law, as amended by section 32
    22  of part Z2 of chapter 62 of the laws of 2003,  is  amended  to  read  as
    23  follows:
    24    (B-1)  The  increase  in the statewide average case mix in the periods
    25  January first, nineteen hundred ninety-seven through March thirty-first,
    26  two thousand and on and after April first, two  thousand  through  March
    27  thirty-first,  two thousand five and on and after April first, two thou-
    28  sand five, from the statewide average case mix for  the  period  January
    29  first,  nineteen hundred ninety-six through December thirty-first, nine-
    30  teen hundred ninety-six  shall  not  exceed  one  percent  for  nineteen
    31  hundred  ninety-seven,  two  percent  for nineteen hundred ninety-eight,
    32  three percent for the period January first, nineteen hundred ninety-nine
    33  through September thirtieth, nineteen hundred ninety-nine, four  percent
    34  for  the  period  October  first,  nineteen  hundred ninety-nine through
    35  December thirty-first, nineteen hundred ninety-nine [and], four  percent
    36  for  two  thousand  plus  an  additional one percent per year thereafter
    37  through March thirty-first, two thousand five,  and  eight  percent  for
    38  periods beginning on and after April two thousand five, based on compar-
    39  ison  of data only for patients that are eligible for medical assistance
    40  pursuant to title eleven of article five of  the  social  services  law,
    41  including such patients enrolled in health maintenance organizations.
    42    §  87. Subdivision 1 of section 46 of chapter 639 of the laws of 1996,
    43  amending the public health  law  and  other  laws  relating  to  welfare
    44  reform, as amended by section 33 of part Z2 of chapter 62 of the laws of
    45  2003, is amended to read as follows:
    46    1.  Notwithstanding any inconsistent provision of law or regulation to
    47  the contrary, the trend factors used to project  reimbursable  operating
    48  costs  to  the  rate period for purposes of determining rates of payment
    49  pursuant to article 28 of the public health law  for  general  hospitals
    50  for  reimbursement  of  inpatient hospital services provided to patients
    51  eligible for payments made by state governmental agencies on  and  after
    52  April 1, 1996 through June 30, 1996 and on or after July 1, 1996 through
    53  March  31, 1999 and on and after July 1, 1999 through March 31, 2000 and
    54  on and after April 1, 2000 through March 31, 2005 and on and after April
    55  1, 2005, shall reflect no trend factor projections  or  adjustments  for
    56  the period April 1, 1996, through March 31, 1997.
        S. 992                             150                           A. 1922
 
     1    §  88.  Section  3  of  chapter  483 of the laws of 1978, amending the
     2  public health law relating to  rate  of  payment  for  each  residential
     3  health care facility to real property costs, as amended by section 34 of
     4  part  Z2  of  chapter  62  of  the  laws  of 2003, is amended to read as
     5  follows:
     6    §  3.  This  act shall take effect immediately provided, however, that
     7  the provisions of subdivision 2-a of section 2808 of the  public  health
     8  law, as added by section one of this act, shall remain in full force and
     9  effect until December 31, 2005 and on and after January 1, 2006.
    10    §  89.  Section  97  of  chapter 659 of the laws of 1997, amending the
    11  public health law and other laws relating to the creating of  continuing
    12  care retirement communities, is amended to read as follows:
    13    §  97. This act shall take effect immediately, provided, however, that
    14  the amendments to subdivision 4 of section 854 of the general  municipal
    15  law  made by section seventy of this act shall not affect the expiration
    16  of such subdivision and shall be deemed to expire therewith and provided
    17  further that sections sixty-seven and  sixty-eight  of  this  act  shall
    18  apply  to  taxable  years  beginning  on  or  after  January 1, 1998 and
    19  provided further that sections eighty-one [through], eighty-two,  eight-
    20  y-four,  eighty-five,  eighty-six  and  eighty-seven  of  this act shall
    21  expire and be deemed repealed on December 31, 2006 and provided  further
    22  that  section  eighty-three  of  this  act  shall  expire  and be deemed
    23  repealed on April 1, 2005 and provided further, however, that the amend-
    24  ments to section ninety of this act shall take effect  January  1,  1998
    25  and  shall  apply  to  all  policies, contracts, certificates, riders or
    26  other evidences of coverage of long term care insurance issued, renewed,
    27  altered or modified pursuant to section 3229 of the insurance law on  or
    28  after such date.
    29    §  90.  Section  10  of  chapter 649 of the laws of 1996, amending the
    30  public health law, the mental hygiene law and the  social  services  law
    31  relating  to  authorizing  the  establishment of special needs plans, as
    32  amended by section 41 of part Z2 of chapter 62 of the laws of  2003,  is
    33  amended to read as follows:
    34    §  10.  This  act shall take effect immediately and shall be deemed to
    35  have been in full force and effect on and after July 1, 1996; [provided,
    36  however, that sections one, two and three of this act shall  expire  and
    37  be  deemed  repealed on March 31, 2006 provided, however that the amend-
    38  ments to section 364-j of the social services law made by  section  four
    39  of this act shall not affect the expiration of such section and shall be
    40  deemed  to  expire therewith and] provided, further, that the provisions
    41  of subdivisions 8, 9 and 10 of section 4401 of the public health law, as
    42  added by section one of this act; section 4403-d of  the  public  health
    43  law  as  added  by section two of this act and the provisions of section
    44  seven of this act, except for the provisions relating to the  establish-
    45  ment of no more than twelve comprehensive HIV special needs plans, shall
    46  expire and be deemed repealed on July 1, 2000.
    47    §  91.  Section  11  of  chapter 710 of the laws of 1988, amending the
    48  social services law and the education law relating to medical assistance
    49  eligibility of certain persons and providing for  managed  medical  care
    50  demonstration  programs,  as amended by section 42 of part Z2 of chapter
    51  62 of the laws of 2003, is amended to read as follows:
    52    § 11.  This  act  shall  take  effect  immediately;  except  that  the
    53  provisions  of sections one, two, three, four, eight and ten of this act
    54  shall take effect on the ninetieth day after it shall have become a law;
    55  and except that the provisions of sections five, six and seven  of  this
    56  act  shall  take effect January 1, 1989; and except that effective imme-
        S. 992                             151                           A. 1922
 
     1  diately, the addition, amendment and/or repeal of any rule or regulation
     2  necessary for the implementation of this act on its effective  date  are
     3  authorized  and  directed  to  be  made  and completed on or before such
     4  effective date; [provided, however, that the provisions of section 364-j
     5  of  the  social  services law, as added by section one of this act shall
     6  expire and be  deemed  repealed  on  and  after  March  31,  2006,]  the
     7  provisions  of  section  364-k  of  the social services law, as added by
     8  section two of this act, except subdivision 10 of  such  section,  shall
     9  expire  and  be  deemed  repealed  on and after January 1, 1994, and the
    10  provisions of subdivision 10 of section 364-k  of  the  social  services
    11  law,  as  added  by  section two of this act, shall expire and be deemed
    12  repealed on January 1, 1995.
    13    § 92. Subdivision (c) of section 62 of chapter  165  of  the  laws  of
    14  1991,  amending  the public health law and other laws relating to estab-
    15  lishing payments for medical assistance, as amended  by  section  43  of
    16  part  Z2  of  chapter  62  of  the  laws  of 2003, is amended to read as
    17  follows:
    18    (c) [section 364-j of the social services law, as amended  by  section
    19  eight  of  this  act  and  subdivision  6 of section 367-a of the social
    20  services law as added by section twelve of this act shall expire and  be
    21  deemed  repealed on March 31 2006 and provided further, that] the amend-
    22  ments to the provisions of [such] section 364-j of the  social  services
    23  law,  as  amended  by  section  eight  of  this act, shall only apply to
    24  managed care programs approved on or after the effective  date  of  this
    25  act;
    26    §  93.  Section  18  of  chapter 904 of the laws of 1984, amending the
    27  public health law and the social services law  relating  to  encouraging
    28  comprehensive  health  services, as amended by chapter 69 of the laws of
    29  2004, is amended to read as follows:
    30    § 18. This act shall take effect  immediately,  except  that  sections
    31  six,  nine, ten and eleven of this act shall take effect on the sixtieth
    32  day after it shall have become a law, [sections  two,  three,  four  and
    33  nine of this act shall expire and be of no further force or effect on or
    34  after  March  31,  2006,]  section  two of this act shall take effect on
    35  April 1, 1985 or seventy-five  days  following  the  submission  of  the
    36  report  required  by  section  one  of this act, whichever is later, and
    37  sections eleven and thirteen of this act  shall  expire  and  be  of  no
    38  further force or effect on or after March 31, 1988.
    39    §  94.  Section  2  of  chapter  535 of the laws of 1983, amending the
    40  social services law relating to eligibility  of  certain  enrollees  for
    41  medical assistance, as amended by section 45 of part Z2 of chapter 62 of
    42  the laws of 2003, is amended to read as follows:
    43    §  2. This act shall take effect immediately [and shall remain in full
    44  force and effect through March 31, 2006].
    45    § 95. The commissioner of health is authorized to:
    46    (i) submit amendments to the state plan for medical assistance;
    47    (ii) submit applications for waivers, or applications for amendment of
    48  existing waivers, of provisions of the federal social security act; and
    49    (iii) promulgate or adopt  any  rules  or  regulations;  necessary  to
    50  implement the provisions of this act and to obtain any federal approvals
    51  necessary  to  obtain  federal  financial  participation  for  care  and
    52  services provided pursuant to the provisions of this act.  Notwithstand-
    53  ing any inconsistent provision of the state administrative procedure act
    54  or  any  other provision of law, rule or regulation, the commissioner of
    55  health and any appropriate council is  authorized  to  adopt,  amend  or
    56  promulgate  on  an  emergency  basis any regulation such commissioner or
        S. 992                             152                           A. 1922
 
     1  such council determines necessary to implement any provision of this act
     2  on its effective date.
     3    §  96. The commissioner of health is authorized to promulgate or adopt
     4  any rules or regulations necessary to implement the provisions  of  this
     5  act and any procedures, forms, or instructions necessary for such imple-
     6  mentation  may  be  adopted and issued on or after the effective date of
     7  this act. Notwithstanding any inconsistent provision of the state admin-
     8  istrative procedure act or any other provision of  law,  rule  or  regu-
     9  lation  the  commissioner  of health and the superintendent of insurance
    10  and any appropriate council is authorized to adopt or amend  or  promul-
    11  gate  on  an  emergency  basis  any regulation he or she or such council
    12  determines necessary to implement any  provision  of  this  act  on  its
    13  effective date.
    14    § 97. Notwithstanding any inconsistent provision of law, rule or regu-
    15  lation,  the  effectiveness of subdivisions 4, 7 and 7-a of section 2807
    16  of the public health law and section 18 of chapter  2  of  the  laws  of
    17  1998,  as  such  provisions relate to time frames of notice, approval or
    18  certification of rates of payment,  and  to  the  requirement  of  prior
    19  notice of rates of payment, are hereby suspended and shall, for purposes
    20  of implementing the provisions of this act, be deemed to have been with-
    21  out  any  force or effect from and after November 1, 2004 for such rates
    22  effective for any period January 1, 2005 through December 31, 2005.
    23    § 98. Severability. If any clause,  sentence,  paragraph,  section  or
    24  part  of  this act shall be adjudged by any court of competent jurisdic-
    25  tion to be invalid, such judgment shall not affect, impair,  or  invali-
    26  date  the  remainder  thereof, but shall be confined in its operation to
    27  the clause, sentence, paragraph, subdivision, section  or  part  thereof
    28  directly  involved  in the controversy in which such judgment shall have
    29  been rendered. It is hereby declared to be the intent of the legislature
    30  that this act would have been enacted even if  such  invalid  provisions
    31  had not been included therein.
    32    §  99.  This  act shall take effect immediately and shall be deemed to
    33  have been in full force and effect on and after April 1, 2005;  provided
    34  however, that:
    35    1.  in the event any provision of law relating to cost containment set
    36  forth  in  sections  ten through ninety-eight of this act is repealed or
    37  amended in such a manner as is deemed by the director of the  budget  to
    38  negate the efficacy of such provisions set forth therein, the provisions
    39  of  sections one through nine of this act shall be deemed repealed; upon
    40  the occurrence of the contingency set forth above, the director  of  the
    41  budget  shall  notify  the legislative bill drafting commission upon the
    42  occurrence of the enactment of the legislation provided for in  sections
    43  ten  through  ninety-eight  of this act in order that the commission may
    44  maintain an accurate and timely effective data base of the official text
    45  of the laws of the state of New York in  furtherance  of  effecting  the
    46  provisions  of section 44 of the legislative law and section 70-b of the
    47  public officers law.
    48    2. sections twenty-six and twenty-six-a of this  act  shall  apply  to
    49  taxable years beginning on and after January 1, 2005;
    50    3.  sections forty-eight through fifty and sections fifty-four through
    51  sixty of this act shall take effect July 1, 2005;
    52    4. section forty-five of this act shall be deemed to have been in full
    53  force and effect on and after April 1, 2004;
    54    5. sections thirty-six through thirty-eight of this act shall not take
    55  effect unless and until the commissioner of health receives  all  neces-
    56  sary  approvals  under  federal  law  and  regulation  to implement such
        S. 992                             153                           A. 1922
 
     1  provisions, and provided that such provisions do not prevent the receipt
     2  of federal financial participation under the medical assistance program;
     3    6.  no  section of this act shall be required to be implemented sooner
     4  than sixty days following the  receipt  of  all  waivers  and  approvals
     5  necessary  under  federal law and regulation to implement the provisions
     6  of this act with federal financial participation;  The  commissioner  of
     7  health  shall  submit  such waiver applications and/or state plan amend-
     8  ments as may be necessary to obtain such approvals and to ensure contin-
     9  ued federal financial participation; and
    10    7. the amendments made to paragraphs (f) and (k) of subdivision 4  and
    11  subparagraph (vi) of paragraph (b) and paragraph (c) of subdivision 5 of
    12  section  2807-c of the public health law by sections eighty-two, eighty-
    13  three, eighty-four and eighty-five  of  this  act,  notwithstanding  the
    14  expiration  provided  for in subdivision 5 of section 168 of chapter 639
    15  of the laws of 1996 and subdivision 1 of section 138 of chapter 1 of the
    16  laws of 1999, shall no longer expire and shall be made permanent.
 
    17                                   PART D
 
    18    Section 1. Subdivision (b) of section 7.17 of the mental hygiene  law,
    19  as  amended  by  chapter  564 of the laws of 2003, is amended to read as
    20  follows:
    21    (b) There shall be in the office the hospitals  named  below  for  the
    22  care,  treatment  and  rehabilitation  of  the mentally disabled and for
    23  research and teaching in the science and skills required for  the  care,
    24  treatment and rehabilitation of such mentally disabled.
    25    Greater Binghamton Health Center
    26    Bronx Psychiatric Center
    27    Buffalo Psychiatric Center
    28    Capital District Psychiatric Center
    29    Central New York Psychiatric Center
    30    Creedmoor Psychiatric Center
    31    Elmira Psychiatric Center
    32    Hudson River Psychiatric Center
    33    Kingsboro Psychiatric Center
    34    Kirby Forensic Psychiatric Center
    35    Manhattan Psychiatric Center
    36    [Middletown Psychiatric Center]
    37    Mid-Hudson Forensic Psychiatric Center
    38    Mohawk Valley Psychiatric Center
    39    Nathan S. Kline Institute for Psychiatric Research
    40    New York State Psychiatric Institute
    41    Pilgrim Psychiatric Center
    42    Richard H. Hutchings Psychiatric Center
    43    Rochester Psychiatric Center
    44    Rockland Psychiatric Center
    45    St. Lawrence Psychiatric Center
    46    South Beach Psychiatric Center
    47    Bronx Children's Psychiatric Center
    48    Brooklyn Children's Psychiatric Center
    49    Queens Children's Psychiatric Center
    50    Rockland Children's Psychiatric Center
    51    Sagamore Children's Psychiatric Center
    52    Western New York Children's Psychiatric Center
    53    The  New  York  State  Psychiatric  Institute  and The Nathan S. Kline
    54  Institute for Psychiatric Research are designated as institutes for  the
        S. 992                             154                           A. 1922
 
     1  conduct  of medical research and other scientific investigation directed
     2  towards furthering knowledge of the etiology, diagnosis,  treatment  and
     3  prevention of mental illness.
     4    §  2.  One  hundred percent of the community mental health support and
     5  workforce reinvestment funds made available for appropriation,  pursuant
     6  to  section  41.55 of the mental hygiene law, as a result of the closure
     7  of Middletown Psychiatric Center, pursuant to section one of  this  act,
     8  shall  be allocated for state-operated community services located within
     9  such facility catchment area, and such allocation  shall  be  deemed  to
    10  satisfy  the  seven  percent  allocation  pursuant to subdivision (i) of
    11  section 41.55 of the mental hygiene law.
    12    § 3. This act shall take effect immediately; and  notwithstanding  any
    13  other law to the contrary, the closure of Middletown Psychiatric Center,
    14  pursuant to section one of this act, shall take effect April 1, 2006.
 
    15                                   PART E
 
    16    Section 1. Section 14 of chapter 642 of the laws of 2004, constituting
    17  chapter 35-A of the consolidated laws relating to the elderly and amend-
    18  ing  the elder law and other laws relating to the elderly, is amended to
    19  read as follows:
    20    § 14. This act shall take effect immediately; provided, however,  that
    21  section 209 of the elder law, as added by section one of this act, shall
    22  expire  and  be  deemed  repealed  December  31,  [2005]  2007; provided
    23  further, however, that paragraph (b) of subdivision 1 and paragraph  (g)
    24  of  subdivision  3  of section 218 of the elder law, as added by section
    25  one of this act, shall expire and be deemed repealed December 31,  2006;
    26  and  provided  further, however, that section two of this act shall take
    27  effect December 31, 2006.
    28    § 2. This act shall take effect immediately and  shall  be  deemed  to
    29  have been in full force and effect on and after April 1, 2005.
 
    30                                   PART F
 
    31    Section 1. Article 43 of the executive law is REPEALED.
    32    §  2.  The article heading of article 45 of the mental hygiene law, as
    33  added by chapter 655 of the laws of 1977, is amended to read as follows:
    34       STATE COMMISSION ON QUALITY OF CARE [FOR THE MENTALLY DISABLED]
    35                 AND ADVOCACY FOR PERSONS WITH DISABILITIES
    36    § 3. Section 45.01 of the mental hygiene law, as added by chapter  655
    37  of  the  laws  of 1977, subdivisions 2 and 3 as amended by chapter 80 of
    38  the laws of 1986 and subdivision 5 as amended by chapter 299 of the laws
    39  of 1984, is amended to read as follows:
    40  § 45.01 Definitions.
    41    When used in this article:
    42    1. "Commission" means the state commission on quality of care [for the
    43  mentally disabled] and advocacy for persons with disabilities.
    44    2. "Council" means the advisory council to the commission.
    45    3. "Boards of visitors" means the boards of visitors as used in  arti-
    46  cle seven and article thirteen of this chapter.
    47    4. "Board" means the mental hygiene medical review board.
    48    5. "Mental  hygiene  facility" means a facility as defined in subdivi-
    49  sion six of section 1.03 of this chapter and facilities for  the  opera-
    50  tion  of  which an operating certificate is required pursuant to article
    51  sixteen or thirty-one of this chapter and including family care homes.
        S. 992                             155                           A. 1922
 
     1    6. "Disability" means disability as defined in subdivision  twenty-one
     2  of section two hundred ninety-two of the executive law.
     3    §  4. Section 45.03 of the mental hygiene law, as added by chapter 655
     4  of the laws of 1977, subdivision (a) as amended by chapter  437  of  the
     5  laws of 1995, is amended to read as follows:
     6  § 45.03 State  commission on quality of care [for the mentally disabled]
     7            and advocacy for persons with disabilities; organization.
     8    (a) There shall be within the executive department a state  commission
     9  on  quality of care [for the mentally disabled] and advocacy for persons
    10  with disabilities. It shall consist of three persons to be appointed  by
    11  the  governor,  by  and  with  the consent of the senate. The persons so
    12  appointed shall have expressed an active interest in or obtained profes-
    13  sional knowledge in the care of [the  mentally  disabled  or  in  mental
    14  hygiene]  and  in  the provision of services, supports, and advocacy for
    15  persons with disabilities and in  disability  endeavors  generally.  The
    16  governor shall designate one of the members as [chairman] chair to serve
    17  as  such at the pleasure of the governor. The members of the commission,
    18  except for the [chairman] chair who shall devote full time to his or her
    19  duties, shall receive no compensation for their services  but  shall  be
    20  reimbursed  for  expenses  actually  and  necessarily  incurred  in  the
    21  performance of their duties within appropriations made therefor.
    22    (b) The members shall hold office for terms of  five  years;  provided
    23  that  of  the members first appointed, one shall serve for a term of one
    24  year, one shall serve for a term of three years and one shall serve  for
    25  a  term  of  five  years  from  January first next succeeding his or her
    26  appointment. Any member of the commission may be removed by the governor
    27  for cause.
    28    (c) Any member chosen to fill a vacancy created other than by  expira-
    29  tion  of  a term shall be appointed for the unexpired term of the member
    30  whom he or she is to succeed. Vacancies caused by expiration of term  or
    31  otherwise shall be filled in the same manner as original appointments.
    32    §  5. Section 45.05 of the mental hygiene law, as added by chapter 655
    33  of the laws of 1977, subdivision (e) as added by chapter 477 of the laws
    34  of 1979, is amended to read as follows:
    35  § 45.05 [Chairman] Chair of commission.
    36    (a) The [chairman] chair shall be the chief executive officer  of  the
    37  commission.
    38    (b)  The  [chairman]  chair  may appoint such assistants, officers and
    39  employees, committees and consultants  for  the  commission  as  may  be
    40  determined to be necessary, prescribe their powers and duties, fix their
    41  compensation  and  provide  for  reimbursement  of their expenses within
    42  amounts appropriated therefor.
    43    (c) The [chairman] chair may, from  time  to  time,  create,  abolish,
    44  transfer  and  consolidate bureaus and other units within the commission
    45  not expressly established by law as may be determined necessary for  the
    46  efficient  operation  of  the  commission subject to the approval of the
    47  director of the budget.
    48    (d) The [chairman] chair may request, and shall receive  upon  request
    49  from any department, division, board, bureau, commission or other agency
    50  of the state or any political subdivision thereof or any public authori-
    51  ty  such  assistance, information and data as will enable the commission
    52  properly to carry out its functions, powers and duties.
    53    (e) The [chairman] chair may request and upon such request the  coron-
    54  er, coroner's physician or medical examiner shall provide to the [chair-
    55  man] chair or to the mental hygiene medical review board, as designated,
    56  access  to  original  autopsy  slides,  tissue  materials  and specimens
        S. 992                             156                           A. 1922
 
     1  derived from any autopsy or inquiry with  respect  to  the  death  of  a
     2  patient  or resident in a mental hygiene facility. Such original materi-
     3  als shall be preserved intact, except for  unavoidable  changes  due  to
     4  necessary  scientific testing by the mental hygiene medical review board
     5  and shall be returned to the coroner,  coroner's  physician  or  medical
     6  examiner.
     7    §  6. Section 45.07 of the mental hygiene law, as added by chapter 655
     8  of the laws of 1977, subdivision (c) as amended by chapter  719  of  the
     9  laws of 1986, paragraphs 2, 3 and 4 as amended and paragraph 5 of subdi-
    10  vision (c) as added by chapter 32 of the laws of 1992, subparagraph e of
    11  paragraph  2  of subdivision (c) as amended by chapter 12 of the laws of
    12  1996, subdivision (d) as amended by chapter 376 of  the  laws  of  1994,
    13  paragraph  2 of subdivision (f) as amended by chapter 157 of the laws of
    14  1985, subdivision (k) as added by chapter 734 of the laws  of  1994  and
    15  subdivision  (l)  as  relettered  by chapter 890 of the laws of 1990, is
    16  amended to read as follows:
    17  § 45.07 Functions, powers and duties of the commission.
    18    The commission shall have the following functions, powers and duties:
    19    (a) Review the organization and operations of the department of mental
    20  hygiene and advise and assist the governor in developing policies, plans
    21  and programs for improving the administration of mental hygiene  facili-
    22  ties  and  the  delivery  of  services therein and for ensuring that the
    23  quality of care provided to [the mentally disabled] persons with  mental
    24  disabilities in the state is of a uniformly high standard.
    25    (b)  Review the cost [effect] effectiveness of mental hygiene programs
    26  and procedures provided for by law with particular  attention  to  effi-
    27  ciency,  effectiveness  and  economy  in the management, supervision and
    28  delivery of such programs. Such review may include but  is  not  limited
    29  to:  (i)  determining  reasons  for  rising  costs and possible means of
    30  controlling them; (ii) analyzing and comparing  expenditures  in  mental
    31  hygiene  to  determine  the factors associated with variations in costs;
    32  and (iii) analyzing and comparing achievements in  selected  samples  to
    33  determine  the factors associated with variations in program success and
    34  their relationship to mental hygiene costs.
    35    (c) 1. Establish  procedures  to  assure  effective  investigation  of
    36  complaints of patients, residents and employees of mental hygiene facil-
    37  ities  affecting  such  patients  and residents including allegations of
    38  patient abuse  or  mistreatment,  including  all  reports  of  abuse  or
    39  maltreatment of children in residential care as defined in paragraph (g)
    40  of  subdivision  seven  of  section  four  hundred  twelve of the social
    41  services law and made pursuant to title six of article six of such  law.
    42  Such  procedures  shall include but not be limited to receipt of written
    43  complaints, interviews of persons, patients, residents and of  employees
    44  and  on-site monitoring of conditions. In addition, the commission shall
    45  establish procedures for the speedy and impartial review of patient  and
    46  resident  abuse  and mistreatment allegations called to its attention in
    47  writing.
    48    2. With respect to reports of abuse or  maltreatment  of  children  in
    49  residential  care  as  defined  in paragraph (g) of subdivision seven of
    50  section four hundred twelve of the social services law and made pursuant
    51  to title six of article six  of  such  law  except  such  facilities  or
    52  programs  enumerated  in  paragraph  (h) of subdivision seven of section
    53  four hundred twelve of the social services law, in addition to complying
    54  with requirements of applicable provisions of the  social  services  law
    55  and this subdivision, the commission shall:
        S. 992                             157                           A. 1922
 
     1    a.  receive  from  the  state  central  register  of  child  abuse and
     2  maltreatment on a twenty-four hour, seven day a week basis  all  reports
     3  of suspected child abuse or maltreatment;
     4    b.  maintain and keep up-to-date a child abuse and maltreatment record
     5  of all cases reported together with any additional information  obtained
     6  and a record of the final disposition of the report, including recommen-
     7  dations  by the commission and action taken with respect to the residen-
     8  tial care facility or  the  subject  of  a  report  of  child  abuse  or
     9  maltreatment pursuant to section 16.29 or 29.29 of this chapter;
    10    c.  not  later  than  seven  days after receipt of such report, send a
    11  preliminary written report  of  the  initial  investigation,  including,
    12  whenever  practicable,  an  evaluation  of  whether  or  not such report
    13  constitutes an allegation of child abuse or neglect and actions taken or
    14  contemplated, to the state central register. If  such  initial  investi-
    15  gation results in a determination that the report does not constitute an
    16  allegation  of  abuse or neglect, the commission shall refer such report
    17  to the  appropriate  office  of  the  department  [of  mental  hygiene],
    18  provided,  however,  that  the  name  and  other personally identifiable
    19  information of the person making the report shall not be provided by the
    20  commission unless such person authorizes such disclosure;
    21    d. give telephone notice and forward immediately  a  copy  of  reports
    22  made  which  involve  the  death  of a child to the appropriate district
    23  attorney.  In addition, telephone notice shall be given and  a  copy  of
    24  all reports made shall be forwarded immediately by the commission to the
    25  appropriate  district  attorney  if  a prior request in writing for such
    26  notice and copies has been made to the commission by the district attor-
    27  ney. Such request shall specify  the  kinds  of  allegations  concerning
    28  which the district attorney requires such notice and copies;
    29    e.  upon  receipt  of  such  report  of  child  abuse or maltreatment,
    30  commence within twenty-four hours, an  appropriate  investigation  which
    31  shall  include  but  not  be limited to an evaluation of the residential
    32  care facility in which the child resides who is named in the report  and
    33  a  determination  of  the  risk  to such child if he or she continues to
    34  remain in the existing residential care facility as well as  a  determi-
    35  nation  of  the  nature, extent and cause of any condition enumerated in
    36  such report and, after seeing to the safety of the  child  and,  to  the
    37  maximum  extent  feasible, the other children in the facility forthwith:
    38  (i) notify the subject of the report and  other  persons  named  in  the
    39  report  in  writing  of the existence of the report and their respective
    40  rights pursuant to title six of article six of the social  services  law
    41  in  regard to amendment; and (ii) notify the director or operator of the
    42  residential facility and the office of mental health or  the  office  of
    43  mental  retardation  and  developmental disabilities of the existence of
    44  such report including the name of any child  alleged  to  be  abused  or
    45  maltreated,  the  name  of  the  subject of the report of child abuse or
    46  maltreatment, and any other information which may be necessary to assure
    47  the health and safety of the children in the residential care facility;
    48    f. comply with the terms and conditions for maintenance  of  confiden-
    49  tial  records  and  due  process  rights of the subject of the report of
    50  child abuse or maltreatment pursuant to sections four hundred twenty-two
    51  and four hundred twenty-four-a of the social services law;
    52    g. determine within sixty days, whether the report is  "indicated"  or
    53  "unfounded"; and
    54    h. assist the criminal court during all stages of the court proceeding
    55  in  accordance  with  the  purposes  of  title six of article six of the
    56  social services law and other applicable provisions of law.
        S. 992                             158                           A. 1922
 
     1    3. Where the [department of social services] office  of  children  and
     2  family  services  determines  that some credible evidence of the alleged
     3  abuse or maltreatment exists, the  commission  shall  recommend  to  the
     4  office of mental health or the office of mental retardation and develop-
     5  mental disabilities, as the case may be, that appropriate preventive and
     6  remedial  actions  including  legal actions, consistent with appropriate
     7  collective bargaining agreements and applicable provisions of the  civil
     8  service  law,  and  pursuant  to  standards of such offices, promulgated
     9  pursuant to section 16.29 or 29.29 of this chapter and other  applicable
    10  provisions  of  law,  be  undertaken  with respect to a residential care
    11  facility and/or the subject of the report of child  abuse  or  maltreat-
    12  ment.  However,  nothing  in this paragraph shall prevent the commission
    13  from making recommendations, as provided for  by  this  paragraph,  even
    14  though  the  investigation  may  fail  to result in a determination that
    15  there is some credible evidence of the alleged abuse or maltreatment.
    16    4. In order to assure effective  investigation  of  reports  of  child
    17  abuse  and maltreatment made pursuant to title six of article six of the
    18  social services law, the commission shall establish  standards  for  the
    19  provision of training to its employees charged with the investigation of
    20  such reports, in at least the following: (a) basic training in the prin-
    21  ciples  and  techniques  of  investigation, including relationships with
    22  other investigative bodies, (b) legal issues in child protection includ-
    23  ing the legal rights of children, employees and volunteers, (c)  methods
    24  of identification, remediation, treatment and prevention, (d) safety and
    25  security  procedures,  and  (e) the principles of child development, the
    26  characteristics of children in care, and techniques of group  and  child
    27  management  including crisis intervention. The commission shall take all
    28  reasonable and necessary actions to assure that its employees  are  kept
    29  apprised on a current basis of all department of mental hygiene policies
    30  and  procedures  relating  to  the protection of children from abuse and
    31  maltreatment.
    32    5. The commission shall prepare an annual report to the  governor  and
    33  legislature on the protection of children in residential care from abuse
    34  and maltreatment, including the implementation of the provisions of this
    35  paragraph  and  other  applicable  provisions  of law, including reports
    36  received, results of investigations by  types  of  facilities,  remedial
    37  actions taken, and efforts undertaken by the office of mental health and
    38  the  office  of  mental  retardation  and  developmental disabilities to
    39  provide training pursuant  to  standards  established  by  such  offices
    40  pursuant to section 16.29 or 29.29 of this chapter.
    41    (d)  Conduct periodic orientation, training and informational programs
    42  upon appointment or reappointment, and as otherwise  needed,  to  assist
    43  the  members of the boards of visitors to fulfill their responsibilities
    44  pursuant to law.
    45    (e) 1. Visit, inspect and appraise the management  of  mental  hygiene
    46  facilities  with  specific attention to the safety, security and quality
    47  of care provided to patients and residents.
    48    2. Provide staff and other necessary assistance upon request to boards
    49  of visitors of department facilities in performing their duties pursuant
    50  to law.
    51    3. Receive and review periodic and annual reports  of  the  boards  of
    52  visitors of each department facility.
    53    4. Place such members of its staff as it deems appropriate as monitors
    54  in any mental hygiene facility which, in the judgment of the commission,
    55  presents  an  imminent  danger  to the health or safety of the patients,
    56  residents or employees of such facility.
        S. 992                             159                           A. 1922
 
     1    (f) 1. Make a preliminary determination whether  matters  referred  to
     2  its attention warrant investigation and, if so, conduct an investigation
     3  of such scope and duration as it deems necessary and proper.
     4    2.  Make  findings  concerning  matters referred to its attention and,
     5  where it deems appropriate, make  a  report  and  recommendations.  Such
     6  report shall be delivered to the commissioner and to the director of the
     7  facility  involved.  Such  commissioner  and  director shall each make a
     8  written report of actions taken regarding each  of  the  recommendations
     9  within  ninety days of receipt of the report. If such response indicates
    10  that any of the recommendations have not  been  fully  implemented,  the
    11  commission  may  require  further  periodic progress reports as it deems
    12  appropriate. If it appears that a crime may  have  been  committed,  the
    13  commission  shall  give notice thereof to the district attorney or other
    14  appropriate law enforcement official.
    15    (g) Make an annual report to the governor and  legislature  concerning
    16  its  work during the preceding year, and such further interim reports to
    17  the governor, or to the governor  and  legislature,  as  it  shall  deem
    18  advisable, or as shall be required by the governor.
    19    (h)  Accept,  with the approval of the governor, as agent of the state
    20  any grant, including federal grants, or any gift for any of the purposes
    21  of this article. Any moneys so received may be expended by  the  commis-
    22  sion  to  effectuate  any  purpose  of this article, subject to the same
    23  limitations as to approval of expenditures and audit as  are  prescribed
    24  for state moneys appropriated for the purposes of this article.
    25    (i)  Enter  into contracts with any person, firm, corporation, munici-
    26  pality or governmental agency for the performance of  functions  author-
    27  ized by law.
    28    (j)  Adopt,  amend  or  rescind  such  rules and regulations as may be
    29  necessary or convenient to the performance of the functions, powers  and
    30  duties of the commission.
    31    (k) 1. Establish an adult home and residence for adults resident advo-
    32  cacy  program  to assist residents, who have at any time received or are
    33  receiving services from a mental hygiene provider, of  adult  homes  and
    34  residences  for adults, as defined in section two of the social services
    35  law, where at least twenty-five percent or [more] twenty-five residents,
    36  whichever is less, have at any time received or are  receiving  services
    37  from  a mental hygiene provider which is licensed, operated or funded by
    38  the office of mental health or office of mental retardation and develop-
    39  mental disabilities, in understanding their legal rights, and to promote
    40  and protect the rights of such residents. Based on the level  of  appro-
    41  priations  made  available  therefor,  the  [chairperson]  chair  of the
    42  commission shall determine the feasibility of establishing such  program
    43  on  a  statewide  basis or, if not so feasible, the [chairperson] chair,
    44  after consultation with the commissioner of the  department  of  [social
    45  services]  health,  shall  designate those regions in which such program
    46  may be established.
    47    2. In establishing such program, the commission shall  provide  grants
    48  to   non-profit  organizations  with  expertise  in  providing  advocacy
    49  services to the persons with disabilities. Entities which  are  eligible
    50  for  funding  pursuant  to  this  subdivision must be independent of any
    51  agency which provides treatment or  care  to  residents  of  adult  care
    52  facilities  and  must  have the capacity to protect and advocate for the
    53  rights of residents of such facilities. Such grants  shall  be  used  to
    54  expand  the capacity of organizations to assist residents in understand-
    55  ing their rights and to pursue administrative, legal or  other  remedies
    56  on  behalf  of  residents  to assure the protection of their rights. Any
        S. 992                             160                           A. 1922
 
     1  organization receiving funding pursuant to  this  subdivision  shall  be
     2  granted  access  to  adult homes and residences for adults as defined in
     3  section two of the social services law.
     4    3.  The  commission  shall, prior to making any grant pursuant to this
     5  subdivision, receive assurances that such funds will be used to  supple-
     6  ment  existing resources available to any such organization and that the
     7  staff of such organization are trained or will  be  trained  in  matters
     8  related  to  the  rights  of residents of adult homes and residences for
     9  adults as defined in section two of the  social  services  law  and  the
    10  standards governing the operation of such facilities.
    11    (l) Advise and assist persons with disabilities, family members, advo-
    12  cates, service providers and community organizations in the formation of
    13  strategies  to identify and meet the needs of individuals with disabili-
    14  ties for services, supports, and advocacy.
    15    (m) Advise and assist the governor, the  legislature  and  public  and
    16  private entities in the development and implementation of state policies
    17  which  meet  the  needs  of  persons  with  disabilities  for  services,
    18  supports, and advocacy in a manner which is cost-effective and  respect-
    19  ful of the rights of persons with disabilities.
    20    (n)  Serve  as  a  clearinghouse for information relating to services,
    21  supports, and advocacy for  persons  with  disabilities  and  provide  a
    22  statewide  system  of  information  and referral to link persons seeking
    23  information and assistance with  public  and  private  sector  services,
    24  supports, and advocacy which may be appropriate to meet their needs.
    25    (o)  Advise  and assist the governor, the legislature, state agencies,
    26  persons with disabilities and public and private sector entities in  the
    27  design and implementation of initiatives to increase access to technolo-
    28  gy related assistance for individuals with disabilities.
    29    (p)  Administer  such  protection  and  advocacy and client assistance
    30  programs as may be established by federal law, pursuant to such authori-
    31  zation or designation as may be required.
    32    (q) Administer the surrogate  decision-making  committee  program,  as
    33  authorized pursuant to article eighty of this chapter.
    34    (r) Do all other things necessary or convenient to carry out its func-
    35  tions, powers and duties set forth in this article.
    36    §  7. Section 45.09 of the mental hygiene law, as added by chapter 655
    37  of the laws of 1977, subdivision (a) as amended by chapter  734  of  the
    38  laws  of  1994, subdivision (b) as added and subdivisions (c) and (d) as
    39  relettered by chapter 184 of the laws of 1986, is  amended  to  read  as
    40  follows:
    41  § 45.09 Procedures of the commission.
    42    (a)  The  commission,  any  member  or  any employee designated by the
    43  [commission] chair, must be granted access at any and all times  to  any
    44  mental  hygiene facility, or adult home or residence for adults in which
    45  at least twenty-five percent or [more] twenty-five residents,  whichever
    46  is  less,  have  at  any  time received or are receiving services from a
    47  mental hygiene provider which is licensed, operated  or  funded  by  the
    48  office  of mental health, or the office of mental retardation and devel-
    49  opmental disabilities in order to carry out the functions of the commis-
    50  sion as provided for by section 45.10 of this article, or part  thereof,
    51  and  to  all  books,  records,  and data pertaining to any such facility
    52  deemed necessary for carrying out the commission's functions, powers and
    53  duties. The commission, any members or any employee  designated  by  the
    54  [chairman]  chair  may  require  from  the officers or employees of such
    55  facility or from the commissioners of the offices of the  department  of
    56  mental  hygiene or in the case of an adult home or residence for adults,
        S. 992                             161                           A. 1922
 
     1  from the officers or employees of an adult home or residence for  adults
     2  or  from  the  department  of  [social  services] health any information
     3  deemed necessary for the purpose of carrying out the commission's  func-
     4  tions,  powers  and  duties.  The  commission,  [or]  any member, or any
     5  employee designated by the chair  may  require  from  any  hospital,  as
     6  defined  under article twenty-eight of the public health law, any infor-
     7  mation, report or record necessary for the purpose of carrying  out  the
     8  functions,  powers  and duties of the commission related to the investi-
     9  gation of deaths and complaints  of  abuse  or  mistreatment  concerning
    10  patients  or  former patients of mental hygiene facilities who have been
    11  treated at such hospitals, and from any adult care facility  as  defined
    12  in  paragraph twenty-one of section two of the social services law, such
    13  information, report or record, including access to such facility  neces-
    14  sary for the purpose of carrying out the functions, powers and duties of
    15  the  commission  related to the investigation of deaths, as provided for
    16  by section 45.17 of  this  [chapter]  article,  concerning  patients  of
    17  mental  hygiene  facilities who resided at such residential care facili-
    18  ties at the time of their death or were former residents of  such  resi-
    19  dential care facilities and the commission determines that such informa-
    20  tion,   report  or  record  is  necessary  for  the  completion  of  its
    21  investigation.  The results of investigations involving  such  residents
    22  of  adult care facilities shall be provided promptly to the commissioner
    23  of the department of [social services] health and shall be treated as  a
    24  record  or personal information within the meaning of section ninety-six
    25  of the public officers law and shall not be disclosed except in  accord-
    26  ance  with  such section ninety-six. Information, books, records or data
    27  which are confidential as provided by law shall be kept confidential  by
    28  the  commission  and  by  non-profit  organizations  receiving contracts
    29  pursuant to subdivision (k) of section 45.07 of  this  article  and  any
    30  limitations  on  the  release  thereof  imposed  by  law  upon the party
    31  furnishing the information, books, records or data shall  apply  to  the
    32  commission  and such non-profit organizations receiving contracts pursu-
    33  ant to subdivision (k) of section 45.07 of this article.
    34    (b) Pursuant to the authorization of the commission to administer  the
    35  protection and advocacy system as provided for by federal law, any agen-
    36  cy or person within or under contract with the commission which provides
    37  protection  and  advocacy services must be granted access at any and all
    38  times to any [residential] facility, or part thereof, serving  a  person
    39  with  a [mental] disability operated or licensed by any office or agency
    40  of the state, and to all books, records, and data pertaining to any such
    41  facility upon receipt of a complaint by or on behalf of a person with  a
    42  [mental]  disability.  Information,  books,  records  or  data which are
    43  confidential as provided by law shall be kept confidential by the person
    44  or agency within the protection and advocacy system and any  limitations
    45  on  the  release  thereof  imposed  by law upon the party furnishing the
    46  information, books, records or data shall apply to the person or  agency
    47  within the protection and advocacy system.
    48    (c)  In  the exercise of its functions, powers and duties, the commis-
    49  sion and any member is authorized to issue and enforce a subpoena and  a
    50  subpoena  duces  tecum,  conduct  hearings, administer oaths and examine
    51  persons under oath, in accordance with and pursuant  to  civil  practice
    52  law and rules.
    53    (d)  In  any case where a person in charge or control of such facility
    54  or an officer  or  employee  thereof  shall  fail  to  comply  with  the
    55  provisions  of subdivision (a) of this section, the commission may apply
    56  to the supreme court for an order  directed  to  such  person  requiring
        S. 992                             162                           A. 1922
 
     1  compliance  therewith.  Upon  such  application the court may issue such
     2  order as may be just and a failure to comply with the order of the court
     3  shall be a contempt of court and punishable as such.
     4    § 8. Section 45.10 of the mental hygiene law, as amended by chapter 83
     5  of the laws of 1995, is amended to read as follows:
     6  § 45.10 Adult home and residence for adults special oversight authority.
     7    (a)  The commission shall have the following authority with respect to
     8  adult homes or residences for adults, as defined by section two  of  the
     9  social  services law, where at least twenty-five percent or [more] twen-
    10  ty-five of the residents, whichever is less, are persons who have at any
    11  time received or are receiving services from a mental  hygiene  provider
    12  which  is licensed, operated or funded by the office of mental health or
    13  the office of mental retardation and developmental disabilities.
    14    (1) investigation of complaints regarding the quality of care, includ-
    15  ing mental hygiene services, provided to such residents who had  at  any
    16  time received or are receiving services from such mental hygiene provid-
    17  er;
    18    (2)  examination  of the programmatic and financial operations of such
    19  adult homes or residences for adults; and
    20    (3) examination  of  the  programmatic  and  financial  operations  of
    21  providers of mental hygiene services to residents of such homes or resi-
    22  dences.  Such  financial audit shall only be conducted upon the approval
    23  of the [chairperson] chair of the commission.
    24    (b) Upon completion of any review  or  investigation  conducted  under
    25  this  section,  the commission may make findings concerning such matters
    26  referred to its attention and make a report and recommendations  thereon
    27  to the operator of such home and any appropriate commissioner of a state
    28  agency.  Such  commissioner  and operator shall make a written report of
    29  actions taken regarding the recommendations  of  the  commission  within
    30  ninety  days  of  receipt  of  such  report.  The commission may require
    31  further periodic reports as it deems appropriate.
    32    § 9. Section 45.11 of the mental hygiene law, as added by chapter  349
    33  of the laws of 1985, is amended to read as follows:
    34  § 45.11 Advisory council to the commission.
    35    (a)  There shall be within the commission an advisory council consist-
    36  ing of no less than fifteen members to be  appointed  by  the  governor,
    37  with the advice and consent of the senate. Members shall be appointed on
    38  the  basis  of their professional knowledge in the care and treatment of
    39  [the mentally disabled] and in the provision of services, supports,  and
    40  advocacy  to  persons  with disabilities or their active interest in the
    41  system  of  services  for   [the   mentally   disabled]   persons   with
    42  disabilities.   In making such appointments, the governor shall endeavor
    43  to insure the overall membership of the council adequately reflects  the
    44  programs  and  services within the commission's jurisdiction and that at
    45  least one-half of  the  members  are  [patients,  former  patients,  and
    46  parents  or  relatives  of  patients  or former patients] individuals or
    47  parents or relatives of individuals who are or have participated  in  or
    48  are  or have been recipients of programs and services within the commis-
    49  sion's jurisdiction.  The council shall include but shall not be limited
    50  to:
    51    (i) members of boards of visitors appointed pursuant to articles seven
    52  and thirteen of this chapter;
    53    (ii) consumer representatives including patients, former patients, and
    54  parents or relatives of patients or former patients  who  have  received
    55  services [for the mentally disabled] from a mental hygiene facility;
        S. 992                             163                           A. 1922
 
     1    (iii)  providers  of  services to [the mentally disabled] persons with
     2  mental or physical disabilities;
     3    (iv) directors of psychiatric centers and developmental centers; and
     4    (v)  directors  of community services or members of community services
     5  boards.
     6    (b) Members shall be appointed for  terms  of  three  years  provided,
     7  however,  that  of  the  members  first  appointed,  one-third  shall be
     8  appointed for one-year terms and one-third shall be appointed  for  two-
     9  year terms. A member may be removed by the governor for good cause after
    10  notice and an opportunity to be heard on the charges. Vacancies shall be
    11  filled  in the same manner as original appointments for the remainder of
    12  any unexpired term.
    13    (c) The governor shall designate one member  of  the  council  as  its
    14  [chairman] chair to serve as such at the pleasure of the governor.
    15    (d)  Council  members  shall not receive compensation, but each member
    16  shall be entitled  to  receive  his  or  her  reasonable  and  necessary
    17  expenses  incurred  in  connection  with his or her services as a member
    18  within the amounts appropriated therefor.
    19    (e) The council shall have an executive secretary  designated  by  the
    20  [chairman]  chair of the commission. The [chairman] chair of the commis-
    21  sion may also assign such other commission officers and employees as the
    22  council may from time to time require to assist it in the performance of
    23  its duties.
    24    (f) The council shall advise and assist the commission  in  developing
    25  policies,  plans  and  programs  to  carry out its functions, powers and
    26  duties pursuant to this section. The council  may  consider  any  matter
    27  related to improving the quality of [care provided to mentally disabled]
    28  life of citizens of the state who have disabilities and shall advise the
    29  commission on any such matter.
    30    (g)  The  council  shall  meet at least four times a year. The council
    31  shall meet at the request of its  [chairman]  chair  or  the  [chairman]
    32  chair of the commission.
    33    §  10.  Section 45.15 of the mental hygiene law, as amended by chapter
    34  300 of the laws of 1989, is amended to read as follows:
    35  § 45.15 Mental hygiene medical review board; organization.
    36    (a) There shall be within the  commission  a  mental  hygiene  medical
    37  review  board.  The  board  shall  be composed of up to fifteen members,
    38  including specialists in forensic  pathology,  psychiatry  and  internal
    39  medicine  to  be appointed by the governor. The governor shall designate
    40  one of the members to serve as [chairman] chair of  the  board.  Members
    41  [currently  appointed  shall  serve  for  terms expiring on July thirty-
    42  first, nineteen hundred ninety.  Upon  the  expiration  of  such  terms,
    43  members]  shall  be  appointed  for  terms of three years [commencing on
    44  August first, nineteen hundred ninety],  provided,  however,  that  one-
    45  third  of  the members first appointed shall be appointed for a one year
    46  term and one-third for two year terms. Vacancies shall be filled in  the
    47  same  manner as original appointments for the remainder of any unexpired
    48  term. Members shall continue in office after  the  expiration  of  their
    49  terms  until  their  successors  have  been appointed and qualified. The
    50  governor may remove any member of the board whenever in his judgment the
    51  public interest may require such removal. In case of such  removal,  the
    52  governor  shall file with the department of state a statement indicating
    53  the cause for such removal. Notwithstanding any provision of law to  the
    54  contrary,  the  [chairman]  chair of the board may appoint committees of
    55  five or more members of the board and delegate in writing  to  any  such
        S. 992                             164                           A. 1922
 
     1  committee  the  authority to perform the functions, powers and duties of
     2  the board pursuant to section 45.17 of this [chapter] article.
     3    (b)  The  members of the board shall receive no compensation for their
     4  services but shall be reimbursed for their actual and necessary expenses
     5  incurred in the performance of their duties.
     6    (c) The board shall have an executive secretary and such officers  and
     7  employees  as  the  [chairman] chair of the commission shall assign upon
     8  request of the [chairman] chair of  the  board,  to  assist  it  in  the
     9  performance of its duties.
    10    (d)  All  records  of the proceedings, the deliberations of the mental
    11  hygiene medical review board and any testimony given  before  the  board
    12  shall not be subject to disclosure under article thirty-one of the civil
    13  practice law and rules.
    14    (e)  The  board  or any committee appointed by the [chairman] chair of
    15  the board shall meet at the request  of  its  [chairman]  chair  or  the
    16  [chairman] chair of the commission. Any member of the board who fails to
    17  attend three consecutive meetings of the board or the committee to which
    18  such  member  is  assigned  by the [chairman] chair of the board, unless
    19  excused by the [chairman] chair of the board,  shall  be  considered  to
    20  have vacated his or her office unless otherwise ordered by the governor.
    21  The  term  of  any  such  person  appointed by the governor to fill such
    22  vacancy shall be governed by the provisions of this section.
    23    § 11. Subdivision (g) of section 80.03 of the mental hygiene  law,  as
    24  added by chapter 354 of the laws of 1985, is amended to read as follows:
    25    (g)  "Commission"  means  the  commission  on quality of care [for the
    26  mentally disabled] and advocacy for persons with disabilities.
    27    § 12. Terms occurring in laws, contract and other documents.  Whenever
    28  the functions, powers, obligations, duties and officials relating to the
    29  state commission on quality of care for the mentally disabled, the chair
    30  of the state commission on quality of care for  the  mentally  disabled,
    31  the  office of advocate for persons with disabilities or the state advo-
    32  cate for persons with disabilities are referred to or designated in  any
    33  law, contract or document, such reference or designation shall be deemed
    34  to  refer  to the appropriate functions, powers, obligations, duties and
    35  the chair and officials of the state commission on quality of  care  and
    36  advocacy  for  persons with disabilities as redesignated by this act, as
    37  applicable.
    38    § 13. Existing rights and remedies preserved.  No  existing  right  or
    39  remedy of any character shall be lost, impaired or affected by reason of
    40  this act.
    41    § 14. Transfer of authority, administration and appropriations.
    42    1.  The state advocate for persons with disabilities shall provide for
    43  the orderly transfer of all matters, records and things relating to  the
    44  office.
    45    2.  The director of the budget is hereby authorized to transfer to the
    46  state commission on quality of care and advocacy for persons with  disa-
    47  bilities,  for  use  by  the commission, funds otherwise appropriated or
    48  reappropriated to the office of advocate for persons  with  disabilities
    49  consistent with the purposes of this act.
    50    §  15.  Transfer  of  employees.  Upon the repeal of article 43 of the
    51  executive law pursuant to section one of  this  act,  employees  of  the
    52  office of advocate for persons with disabilities shall be transferred to
    53  the  state  commission  on quality of care and advocacy for persons with
    54  disabilities in accordance with section 70 of the civil service law.
    55    § 16. Federal laws.  Notwithstanding any other law, rule or regulation
    56  to the contrary, effective April 1, 2005, the chair of the state commis-
        S. 992                             165                           A. 1922
 
     1  sion on quality of care and advocacy for persons with disabilities shall
     2  be the designee of the state of New York for  the  purpose  of  carrying
     3  into  effect  any  provisions of federal laws relating to the functions,
     4  powers,  duties  and  obligations  of the office of advocate for persons
     5  with disabilities hereby assigned to the state commission on quality  of
     6  care  and  advocacy  for persons with disabilities and any federal funds
     7  applicable to appropriations to the office of advocate for persons  with
     8  disabilities  for  such functions, powers, duties and obligations may be
     9  made available to the state commission on quality of care  and  advocacy
    10  for persons with disabilities subject to the approval of the director of
    11  the budget.
    12    §  17.  Continuation of rules and regulations. All rules, regulations,
    13  acts, determinations, and decisions of the state  advocate  for  persons
    14  with  disabilities  with  respect  to  the functions, powers, duties and
    15  obligations of the office of advocate for persons with  disabilities  in
    16  force and effect on March 31, 2005 shall continue in force and effect as
    17  rules,  regulations,  acts, determinations and decisions of the chair of
    18  the state commission on quality of care and advocacy  for  persons  with
    19  disabilities until amended or revised by said chair.
    20    §  18. Completion of unfinished business. Any business or other matter
    21  undertaken or commenced by the office of advocate for persons with disa-
    22  bilities relating to the functions, powers, duties, and  obligations  of
    23  the  office  pending  on  April  1, 2005 shall be continued by the state
    24  commission on quality of care and advocacy for  persons  with  disabili-
    25  ties.
    26    §  19.  This  act shall take effect immediately and shall be deemed to
    27  have been in full force and effect on and after April 1, 2005.
    28    § 2. Severability clause. If any clause, sentence, paragraph, subdivi-
    29  sion, section or part of this act shall be  adjudged  by  any  court  of
    30  competent  jurisdiction  to  be invalid, such judgment shall not affect,
    31  impair, or invalidate the remainder thereof, but shall  be  confined  in
    32  its  operation  to the clause, sentence, paragraph, subdivision, section
    33  or part thereof directly involved in the controversy in which such judg-
    34  ment shall have been rendered. It is hereby declared to be the intent of
    35  the legislature that this act would  have  been  enacted  even  if  such
    36  invalid provisions had not been included herein.
    37    §  3.  This  act shall take effect immediately provided, however, that
    38  the applicable effective date of Parts A through F of this act shall  be
    39  as specifically set forth in the last section of such Parts.