Amd §§2808 & 2895-b, Pub Health L; add §99-ss, St Fin L
Authorizes increased equity withdrawals by certain non-public residential health care facilities; establishes the nursing home worker recruitment and safety fund.
STATE OF NEW YORK
________________________________________________________________________
5369
2025-2026 Regular Sessions
IN SENATE
February 21, 2025
___________
Introduced by Sen. RIVERA -- 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 equity withdrawals
by non-public residential health care facilities; and to amend the
state finance law, in relation to establishing the nursing home worker
recruitment and safety fund
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Paragraphs (b) and (c) of subdivision 5 of section 2808 of
2 the public health law, as amended by section 36 of part B of chapter 109
3 of the laws of 2010, are amended to read as follows:
4 (b) On and after April first, two thousand ten, no non-public residen-
5 tial health care facility may withdraw equity or transfer assets which
6 in the aggregate exceed:
7 (i) three percent of such facility's total reported annual revenue for
8 patient care services, based on the facility's most recently available
9 reported data, without prior written notification to the commissioner;
10 or
11 (ii) in the case of a residential health care facility which, over the
12 two immediately preceding successive quarters, has been compliant with
13 the minimum staffing level requirements prescribed by section twenty-
14 eight hundred ninety-five-b of this chapter, five percent of such facil-
15 ity's total reported annual revenue for patient care services, based on
16 the facility's most recently available reported data, without prior
17 written notification to the commissioner. Notification shall be made in
18 a form acceptable to the department by certified or registered mail.
19 (c) Notwithstanding any inconsistent provision of this subdivision, on
20 and after April first, two thousand ten, no non-public residential
21 health care facility, whether operated as a for-profit facility or as a
22 not-for-profit facility, may withdraw equity or transfer assets which in
23 the aggregate exceed:
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD04752-01-5
S. 5369 2
1 (i) three percent of such facility's total reported annual revenue for
2 patient care services, based on the facility's most recently available
3 reported data, without the prior written approval of the commissioner;
4 or
5 (ii) in the case of a residential health care facility which, over the
6 two immediately preceding successive quarters, has been compliant with
7 the minimum staffing level requirements prescribed by section twenty-
8 eight hundred ninety-five-b of this chapter, five percent of such facil-
9 ity's total reported annual revenue for patient care services, based on
10 the facility's most recently available reported data, without prior
11 written notification to the commissioner. The commissioner shall make a
12 determination to approve or disapprove a request for withdrawal of equi-
13 ty or assets under this subdivision within sixty days of the date of the
14 receipt of a written request from the facility. Requests shall be made
15 in a form acceptable to the department by certified or registered mail.
16 In reviewing such requests the commissioner shall consider the facili-
17 ty's overall financial condition, any indications of financial distress,
18 whether the facility is delinquent in any payment owed to the depart-
19 ment, whether the facility has been cited for immediate jeopardy or
20 substandard quality of care, and such other factors as the commissioner
21 deems appropriate. In addition to any other remedy or penalty available
22 under this chapter, and after opportunity for a hearing, the commission-
23 er may require replacement of the withdrawn equity or assets and may
24 impose a penalty for violation of the provisions of this subdivision in
25 an amount not to exceed ten percent of any amount withdrawn without
26 prior approval.
27 § 2. Section 2895-b of the public health law is amended by adding a
28 new subdivision 5 to read as follows:
29 5. Fines and civil penalties. (a) All fines and civil penalties
30 collected by the commissioner pursuant to this section shall be deposit-
31 ed into a nursing home worker recruitment and safety fund established
32 pursuant to section ninety-nine-ss of the state finance law to enhance
33 the quality of employment for residential health care facility employees
34 and assist in the recruitment and safety of residential health care
35 facility staff.
36 (b) The commissioner shall distribute monies made available for this
37 purpose under this subdivision in the form of grants to providers. In
38 determining the funding for providers, the commissioner shall consider
39 criteria including, but not limited to, the overall census of a facility
40 and the rate region the facility is located within. The commissioner
41 shall promulgate the rules and regulations necessary for implementing
42 the program.
43 § 3. The state finance law is amended by adding a new section 99-ss to
44 read as follows:
45 § 99-ss. Nursing home worker recruitment and safety fund. 1. There is
46 hereby established in the joint custody of the commissioner of taxation
47 and finance and the comptroller, a special fund to be known as the
48 "nursing home worker recruitment and safety fund".
49 2. Money allocated to the nursing home worker recruitment and safety
50 fund shall be kept separate and shall not be commingled with any other
51 funds in the custody of the state comptroller.
52 3. Such fund shall consist of all fines and civil penalties received
53 by the department of health, pursuant to the provisions of section twen-
54 ty-eight hundred ninety-five-b of the public health law and all other
55 moneys appropriated, credited, or transferred thereto from any other
56 fund or source pursuant to law. Nothing contained in this section shall
S. 5369 3
1 prevent the state from receiving grants, gifts or bequests for the
2 purposes of the fund as defined in this section and depositing them into
3 the fund according to law. Any interest received by the comptroller on
4 moneys on deposit in such fund shall be retained in and become part of
5 such fund.
6 4. Moneys in such fund shall be expended only to provide grants to
7 enhance the quality of employment for residential health care facility
8 employees and assist in the recruitment and safety of residential health
9 care facility staff.
10 5. Moneys shall be payable from the fund on the audit and warrant of
11 the comptroller on vouchers approved or certified by the commissioner of
12 health, or by an officer or employee of the department of health desig-
13 nated by the commissioner.
14 § 4. This act shall take effect immediately.
