STATE OF NEW YORK
________________________________________________________________________
5555
2011-2012 Regular Sessions
IN SENATE
June 1, 2011
___________
Introduced by Sen. HANNON -- read twice and ordered printed, and when
printed to be committed to the Committee on Health
AN ACT to amend the public health law, in relation to allowing limited
liability companies to operate renal disease diagnostic or treatment
centers
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Paragraph (a) of subdivision 15 of section 2801-a of the
2 public health law, as amended by section 57 of part A of chapter 58 of
3 the laws of 2010, is amended to read as follows:
4 (a) Diagnostic or treatment centers established exclusively to provide
5 end stage renal disease services may be operated by corporations and
6 limited liability companies formed under the laws of New York whose
7 stockholders or members, as applicable, are not natural persons if such
8 corporations and limited liability companies and [their] its principal
9 stockholders and members, as applicable, and controlling persons comply
10 with all applicable requirements of this section and demonstrate, to the
11 satisfaction of the public health and health planning council, suffi-
12 cient experience and expertise in delivering high quality end stage
13 renal disease care. For purposes of this subdivision, the public health
14 and health planning council shall adopt and amend rules and regulations,
15 notwithstanding any inconsistent provision of this section, to address
16 any matter it deems pertinent to the establishment and operation of
17 diagnostic or treatment centers pursuant to this subdivision; provided
18 that such rules and regulations shall include, but not be limited to
19 provisions governing or relating to: (i) any direct or indirect changes
20 or transfers of ownership interests or voting rights in such corpo-
21 rations and limited liability companies or their stockholders or
22 members, as applicable, and provide for public health and health plan-
23 ning council approval of any change in controlling interests, principal
24 stockholders, principal members, controlling persons, parent company or
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD11575-01-1
S. 5555 2
1 sponsors; (ii) oversight of the operator and its stockholders or
2 members, as applicable, including local governance of the diagnostic or
3 treatment centers; and (iii) relating to the character and competence
4 and qualifications of, and changes relating to, the directors, managers
5 and officers of the operator and its principal stockholders, principal
6 members, controlling persons, parent company or sponsors.
7 § 2. This act shall take effect immediately.
