Bill Text: NY A03007 | 2017-2018 | General Assembly | Amended
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Enacts into law major components of legislation necessary to implement the state health and mental health budget for the 2017-2018 state fiscal year; relates to controlling drug costs; relates to the drug utilization review board; relates to Medicaid reimbursement of covered outpatient drugs; authorizes the suspension of a provider's Medicaid enrollment for inappropriate prescribing of opioids; relates to reducing Medicaid coverage and increasing copayments for non-prescription drugs to aligning pharmacy copayment requirements with federal regulations, and to adjusting consumer price index penalties for generic drugs (Part D); relates to fiscal intermediary certification under the consumer directed personal assistance program, reserved bed days and establishing a prospective per diem adjustment for certain nursing homes (Part E); relates to extending the Medicaid global cap (Part G); extends provisions of the New York Health Care Reform Act of 1996; relates to the distribution of pool allocations and graduate medical education innovations pool; extends provisions of chapter 600 of the laws of 1986 relating to the development of pilot reimbursement programs for ambulatory care services; extends provisions of chapter 520 of the laws of 1978 relating to providing for a comprehensive survey of health care financing, education and illness prevention and creating councils for the conduct thereof; relates to rates of payments for personal care services workers; relates to the comprehensive diagnostic and treatment centers indigent care program; extends provisions of chapter 62 of the laws of 2003, relating to the deposit of certain funds; amends chapter 266 of the laws of 1986, amending the civil practice law and rules and other laws relating to malpractice and professional misconduct, relating to apportioning premium for certain policies; amends part J of chapter 63 of the laws of 2001 amending chapter 266 of the laws of 1986, amending the civil practice law and rules and other laws relating to malpractice and professional misconduct, relates to extending certain provisions concerning the hospital excess liability pool; relates to the health care initiatives pool distributions; and relates to tobacco control and insurance initiatives pool distributions (Part H); extends certain provisions of law relating to health care (Part I); relates to emerging contaminant monitoring including certain physical, chemical, microbiological or radiological substances (Part M); relates to general hospital reimbursement for annual rates relating to the cap on local Medicaid expenditures, in relation to extending government rates for behavioral services and adding an alternative payment methodology; increasing Medicaid equivalent fees through ambulatory patient group methodology and adding an alternative payment methodology requirement (Part P); relates to providing funding to increase salaries and related fringe benefits to direct care workers, direct support professionals and clinical workers employed by not-for-profits funded by the office for people with developmental disabilities, the office of mental health and the office of alcoholism and substance abuse services (Part Q); relates to the drinking water quality council (Part R); relates to health homes and managed care programs; relates to pasteurized donor human milk and ovulation enhancing drugs; relates to home care worker wage parity; authorizes the commissioner of health to sell accounts receivables balances owed to the state by Medicaid providers to financial institutions (Part S); relates to the implementation of the "clean water infrastructure act of 2017" (Part T).
Spectrum: Committee Bill
Status: (Introduced - Dead) 2017-04-05 - substituted by s2007b [A03007 Detail]
Download: New_York-2017-A03007-Amended.html
Bill Title: Enacts into law major components of legislation necessary to implement the state health and mental health budget for the 2017-2018 state fiscal year; relates to controlling drug costs; relates to the drug utilization review board; relates to Medicaid reimbursement of covered outpatient drugs; authorizes the suspension of a provider's Medicaid enrollment for inappropriate prescribing of opioids; relates to reducing Medicaid coverage and increasing copayments for non-prescription drugs to aligning pharmacy copayment requirements with federal regulations, and to adjusting consumer price index penalties for generic drugs (Part D); relates to fiscal intermediary certification under the consumer directed personal assistance program, reserved bed days and establishing a prospective per diem adjustment for certain nursing homes (Part E); relates to extending the Medicaid global cap (Part G); extends provisions of the New York Health Care Reform Act of 1996; relates to the distribution of pool allocations and graduate medical education innovations pool; extends provisions of chapter 600 of the laws of 1986 relating to the development of pilot reimbursement programs for ambulatory care services; extends provisions of chapter 520 of the laws of 1978 relating to providing for a comprehensive survey of health care financing, education and illness prevention and creating councils for the conduct thereof; relates to rates of payments for personal care services workers; relates to the comprehensive diagnostic and treatment centers indigent care program; extends provisions of chapter 62 of the laws of 2003, relating to the deposit of certain funds; amends chapter 266 of the laws of 1986, amending the civil practice law and rules and other laws relating to malpractice and professional misconduct, relating to apportioning premium for certain policies; amends part J of chapter 63 of the laws of 2001 amending chapter 266 of the laws of 1986, amending the civil practice law and rules and other laws relating to malpractice and professional misconduct, relates to extending certain provisions concerning the hospital excess liability pool; relates to the health care initiatives pool distributions; and relates to tobacco control and insurance initiatives pool distributions (Part H); extends certain provisions of law relating to health care (Part I); relates to emerging contaminant monitoring including certain physical, chemical, microbiological or radiological substances (Part M); relates to general hospital reimbursement for annual rates relating to the cap on local Medicaid expenditures, in relation to extending government rates for behavioral services and adding an alternative payment methodology; increasing Medicaid equivalent fees through ambulatory patient group methodology and adding an alternative payment methodology requirement (Part P); relates to providing funding to increase salaries and related fringe benefits to direct care workers, direct support professionals and clinical workers employed by not-for-profits funded by the office for people with developmental disabilities, the office of mental health and the office of alcoholism and substance abuse services (Part Q); relates to the drinking water quality council (Part R); relates to health homes and managed care programs; relates to pasteurized donor human milk and ovulation enhancing drugs; relates to home care worker wage parity; authorizes the commissioner of health to sell accounts receivables balances owed to the state by Medicaid providers to financial institutions (Part S); relates to the implementation of the "clean water infrastructure act of 2017" (Part T).
Spectrum: Committee Bill
Status: (Introduced - Dead) 2017-04-05 - substituted by s2007b [A03007 Detail]
Download: New_York-2017-A03007-Amended.html
STATE OF NEW YORK ________________________________________________________________________ 3007--A IN ASSEMBLY January 23, 2017 ___________ 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 -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee AN ACT to amend the insurance law, in relation to the early intervention program for infants and toddlers with disabilities and their families (Part A); intentionally omitted (Part B); to amend the social services law, in relation to requiring monthly premium payments for the Essen- tial Plan (Part C); to amend the public health law, in relation to high cost drugs; to amend the tax law, in relation to surcharges on high priced drugs; to amend the tax law, in relation to secrecy provisions; to amend the state finance law, in relation to the high priced drug reimbursement fund; to amend the social services law, in relation to the drug utilization review board; to amend the social services law, in relation to prescription drugs in Medicaid managed care programs; to amend the public health law, in relation to the use of preferred drug program and clinical drug review program; to amend the social services law, in relation to Medicaid reimbursement of covered outpatient drugs; to authorize the suspension of a provider's Medicaid enrollment for inappropriate prescribing of opioids; to amend the social services law, in relation to refills of controlled substances; to amend the social services law, in relation to aligning pharmacy copayment requirements with federal regulations, and to adjusting consumer price index penalties for generic drugs; and to repeal subdivisions 25 and 25-a of section 364-j of the social services law, relating to the coverage of certain medically necessary prescription drugs by managed care providers (Part D); intentionally omitted (Part E); to amend the social services law, in relation to carving out transportation from managed long term care benefit and adult day health care programs located at a licensed residential health care facility (Part F); intentionally omitted (Part G); to amend the New York Health Care Reform Act of 1996, in relation to extending certain provisions relating thereto; to amend the New York Health Care Reform Act of 2000, in relation to extending the effec- tiveness of provisions thereof; to amend the public health law, in relation to the distribution of pool allocations and graduate medical education; to amend the public health law, in relation to health care EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD12571-02-7A. 3007--A 2 initiative pool distributions; to amend the social services law, in relation to extending payment provisions for general hospitals; to amend the public health law, in relation to the assessments on covered lives; 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 2003-04 state fiscal year, in relation to the deposit of certain funds; to amend chapter 600 of the laws of 1986 amending the public health law relat- ing to the development of pilot reimbursement programs for ambulatory care services, in relation to the effectiveness of such chapter; to amend chapter 600 of the laws of 1986 amending the public health law relating to the development of pilot reimbursement programs for ambu- latory care services, in relation to the effectiveness of such chap- ter; to amend chapter 520 of the laws of 1978 relating 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 thereof; to amend the public health law, in relation to extending access to community health care services in rural areas; to amend the social services law, in relation to rates of payment for personal care service providers; to amend the public health law, in relation to the comprehensive diag- nostic and treatment centers indigent care program; and to amend the public health law, in relation to health care initiative pool distrib- utions (Part H); to amend chapter 884 of the laws of 1990, amending the public health law relating to authorizing bad debt and charity care allowances for certified home health agencies, in relation to the effectiveness thereof; to amend chapter 60 of the laws of 2014 amend- ing the social services law relating to eliminating prescriber prevails for brand name drugs with generic equivalents, in relation to the effectiveness thereof; to amend the public health law, in relation to extending the nursing home cash assessment; 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 effectiveness thereof; to amend chapter 58 of the laws of 2007, amend- ing the social services law and other laws relating to enacting the major components of legislation necessary to implement the health and mental hygiene budget for the 2007-2008 state fiscal year, in relation to delay of certain administrative cost; 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 the effec- tiveness thereof; to amend chapter 109 of the laws of 2010, amending the social services law relating to transportation costs, in relation to the effectiveness thereof; to amend chapter 56 of the laws of 2013 amending chapter 59 of the laws of 2011, amending the public health law and other laws relating to general hospital reimbursement for annual rates relating to the cap on local Medicaid expenditures, in relation to the effectiveness thereof; 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 the effec- tiveness thereof; to amend chapter 19 of the laws of 1998, amending the social services law relating to limiting the method of payment for prescription drugs under the medical assistance program, in relation to the effectiveness thereof; to amend the public health law, in relation to continuing nursing home upper payment limit payments; to amend chapter 904 of the laws of 1984, amending the public health law and the social services law relating to encouraging comprehensiveA. 3007--A 3 health services, in relation to the effectiveness thereof; to amend chapter 62 of the laws of 2003, amending the public health law relat- ing 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 extending the provisions thereof; to amend chapter 59 of the laws of 2011, amending the public health law relating to the statewide health information network of New York and the statewide planning and research cooper- ative system and general powers and duties, in relation to the effec- tiveness thereof; to amend chapter 58 of the laws of 2008, amending the elder law and other laws relating to reimbursement to participat- ing provider pharmacies and prescription drug coverage, in relation to extending the expiration of certain provisions thereof; and to amend the public health law, in relation to extending the authority of the commissioner of health to issue ACO certificates (Part I); to amend the insurance law, in relation to pharmacy benefit managers and the purchase of prescription drugs; and to amend the public health law, in relation to pharmacy benefit managers; and to repeal certain provisions of such law relating thereto (Part J); to amend the public health law, in relation to the health care facility transformation program (Part K); intentionally omitted (Part L); to amend the public health law, in relation to creating the "Emerging Contaminant Monitor- ing Act" (Part M); to amend the public health law, the real property law, and the environmental conservation law, in relation to creating the "residential well testing act" (Part N); intentionally omitted (Part O); to amend chapter 56 of the laws of 2013 amending chapter 59 of the laws of 2011 amending the public health law and other laws relating to general hospital reimbursement for annual rates relating to the cap on local Medicaid expenditures, in relation to extending government rates for behavioral services and adding a value based payment requirement; and to amend chapter 111 of the laws of 2010 relating to increasing Medicaid payments to providers through managed care organizations and providing equivalent fees through an ambulatory patient group methodology, in relation to extending government rates for behavioral services and adding a value based payment requirement (Part P); intentionally omitted (Part Q); 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 apportioning premium for certain policies; and to amend part J of chapter 63 of the laws of 2001 amending chapter 266 of the laws of 1986, amending the civil practice law and rules and other laws relat- ing to malpractice and professional medical conduct, in relation to extending certain provisions concerning the hospital excess liability pool (Part R); to direct the commissioner of developmental disabili- ties to report on the housing needs of individuals with developmental disabilities and the implementation of the transformation panel's recommendations; and providing for the repeal of such provisions upon expiration thereof (Part S); to amend the penal law, in relation to criminal possession of a controlled substance in the seventh degree; to amend the general business law, in relation to drug-related paraphernalia; to amend the public health law, in relation to the sale and possession of hypodermic syringes and needles; and to repeal section 220.45 of the penal law relating to criminally possessing a hypodermic instrument (Part T); in relation to the Western New York Children's Psychiatric Center (Part U); to amend the social services law, in relation to school-based health centers and sponsoring organ-A. 3007--A 4 izations for managed care programs (Part V); to amend the social services law, in relation to fiscal intermediary certification under the consumer directed personal assistance program; to amend the social services law and the public health law, in relation to needs assess- ment and rate adequacy for medicaid; to amend the social services law, in relation to the nursing home benchmark rate; to amend the public health law, in relation to home care workforce recruitment and retention funding; and to amend the public health law, in relation to home care worker wage parity (Part W); to amend the social services law, in relation to requiring the commissioner of health to provide written notice thirty days prior to implementing or adjusting a rate, premium, component of premium, add-on payment, quality pool, or other rate component related to a managed care provider (Part X); relating to the number of workers accruing overtime in state agencies and requiring certain agencies to maintain all full time equivalent posi- tions from the previous year (Part Y); in relation to the transfer of inpatient services (Part Z); to amend the social services law, in relation to establishing the enhanced safety net hospital program; and to prohibit the commissioner of health from reducing payment for general hospital emergency services visits (Part AA); and 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 thereof (Part BB) 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 2017-2018 3 state fiscal year. Each component is wholly contained within a Part 4 identified as Parts A through BB. 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 a 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. Paragraph 2 of subsection (d) of section 3224-a of the 14 insurance law, as amended by section 57-b of part A of chapter 56 of the 15 laws of 2013, is amended to read as follows: 16 (2) "health care provider" shall mean an entity licensed or certified 17 pursuant to article twenty-eight, thirty-six or forty of the public 18 health law, a facility licensed pursuant to article nineteen or thirty- 19 one of the mental hygiene law, a fiscal intermediary operating under 20 section three hundred sixty five-f of the social services law, an indi- 21 vidual or agency approved by the department of health pursuant to title 22 two-A of article twenty-five of the public health law, a health care 23 professional licensed, registered or certified pursuant to title eight 24 of the education law, a dispenser or provider of pharmaceuticalA. 3007--A 5 1 products, services or durable medical equipment, or a representative 2 designated by such entity or person. 3 § 2. Section 3235-a of the insurance law, as added by section 3 of 4 part C of chapter 1 of the laws of 2002, subsection (c) as amended by 5 section 17 of part A of chapter 56 of the laws of 2012, is amended to 6 read as follows: 7 § 3235-a. Payment for early intervention services. (a) No policy of 8 accident and health insurance, including contracts issued pursuant to 9 article forty-three of this chapter, shall exclude coverage for other- 10 wise covered services solely on the basis that the services constitute 11 early intervention program services under title two-A of article twen- 12 ty-five of the public health law. 13 (b) Where a policy of accident and health insurance, including a 14 contract issued pursuant to article forty-three of this chapter, 15 provides coverage for an early intervention program service, such cover- 16 age shall not be applied against any maximum annual or lifetime monetary 17 limits set forth in such policy or contract. When such policy of acci- 18 dent and health insurance, including a contract issued pursuant to arti- 19 cle forty-three of this chapter, provides coverage for services that 20 constitutes early intervention services as set forth in paragraph (h) of 21 subdivision seven of section twenty five-hundred forty-one of the public 22 health law or early intervention evaluation services as set forth in 23 subdivision nine of section twenty-five hundred forty-one of the public 24 health law, or provides coverage for autism spectrum disorder pursuant 25 to paragraph twenty-five of subsection (i) of section thirty-two hundred 26 sixteen, paragraph seventeen of subsection (l) of section thirty-two 27 hundred twenty-one, or subsection (ee) of section forty-three hundred 28 three of this chapter, the insurer shall pay for such services to the 29 extent that the services are a covered benefit under the policy. Any 30 documentation obtained pursuant to clause (ii) of paragraph (a) of 31 subdivision three of section twenty-five hundred fifty-nine of the 32 public health law and submitted to the insurer shall be sufficient to 33 meet precertification, preauthorization and/or medical necessity 34 requirements imposed under such policy of accident and health insurance, 35 including a contract issued pursuant to article forty-three of this 36 chapter. Visit limitations and other terms and conditions of the policy 37 will continue to apply to early intervention services. However, any 38 visits used for early intervention program services shall not reduce the 39 number of visits otherwise available under the policy or contract for 40 such services. 41 (c) A policy of accident and health insurance, including a contract 42 issued pursuant to article forty-three of this chapter, shall not deny 43 coverage based upon the following: 44 (i) the location where services are provided; or 45 (ii) the duration of the child's condition and/or that the child's 46 condition is not amendable to significant improvement within a certain 47 period of time as specified in the policy. 48 (d) Any right of subrogation to benefits which a municipality or 49 provider is entitled in accordance with paragraph (d) of subdivision 50 three of section twenty-five hundred fifty-nine of the public health law 51 shall be valid and enforceable to the extent benefits are available 52 under any accident and health insurance policy. The right of subrogation 53 does not attach to insurance benefits paid or provided under any acci- 54 dent and health insurance policy prior to receipt by the insurer of 55 written notice from the municipality or provider, as applicable. [The] 56 An insurer shall, within fifteen business days of receipt of a notice ofA. 3007--A 6 1 right of subrogation, notify the provider, in a format determined by the 2 department of health, through the department of health's designated 3 fiscal agent whether the insurer is acting as a third party administra- 4 tor. 5 (e) Upon receipt of written request and notice from the municipality 6 and service coordinator the insurer shall provide [the] such munici- 7 pality and service coordinator with information on the extent of bene- 8 fits available to the covered person under such policy, including wheth- 9 er the insurer is acting as a third party administrator, within fifteen 10 days of the insurer's receipt of written request and notice authorizing 11 such release. The service coordinator shall provide such information to 12 the rendering provider assigned to provide services to the child. 13 [(d)] (f) No insurer, including a health maintenance organization 14 issued a certificate of authority under article forty-four of the public 15 health law and a corporation organized under article forty-three of this 16 chapter, shall refuse to issue an accident and health insurance policy 17 or contract or refuse to renew an accident and health insurance policy 18 or contract solely because the applicant or insured is receiving 19 services under the early intervention program. 20 § 3. This act shall take effect immediately and shall be deemed to 21 have been in full force and effect on or after April 1, 2017; provided 22 however, that the amendments to section 3224-a of the insurance law as 23 made by section one of this act and the amendments to section 3235-a of 24 the insurance law as made by section two of this act shall apply only to 25 policies and contracts issued, renewed, modified, altered or amended on 26 or after such date. 27 PART B 28 Intentionally Omitted 29 PART C 30 Section 1. Subdivision 5 of section 369-gg of the social services law, 31 as added by section 51 of part C of chapter 60 of the laws of 2014, is 32 amended to read as follows: 33 5. Premiums and cost sharing. (a) Subject to federal approval, the 34 commissioner shall establish premium payments enrollees shall pay to 35 approved organizations for coverage of health care services pursuant to 36 this title. Such premium payments shall be established in the following 37 manner: 38 (i) up to twenty dollars monthly for an individual with a household 39 income above one hundred and fifty percent of the federal poverty line 40 but at or below two hundred percent of the federal poverty line defined 41 and annually revised by the United States department of health and human 42 services for a household of the same size; and 43 (ii) no payment is required for individuals with a household income at 44 or below one hundred and fifty percent of the federal poverty line 45 defined and annually revised by the United States department of health 46 and human services for a household of the same size. 47 (b) The commissioner shall establish cost sharing obligations for 48 enrollees, subject to federal approval, provided, however, for individ- 49 uals with a household income from one hundred thirty-eight to one 50 hundred fifty percent of the federal poverty level cost sharing 51 provisions shall maintain an actuarial value of 99.68 percent, and forA. 3007--A 7 1 individuals with a household income from one hundred fifty-one to two 2 hundred percent of the federal poverty level cost sharing provisions 3 shall maintain an actuarial value of 90.02 percent. 4 § 2. This act shall take effect immediately and shall be deemed to 5 have been in full force and effect on and after January 1, 2017. 6 PART D 7 Section 1. The public health law is amended by adding a new section 8 280 to read as follows: 9 § 280. High cost drugs. 1. High priced drugs. The department may iden- 10 tify, for review, drugs which: 11 (a) when first introduced on the market, are prohibitively expensive 12 for patients who could benefit from the drug; or 13 (b) suddenly or over a relatively brief period of time experience a 14 large price increase and such increase is not explained by a significant 15 increase in ingredient costs or by some other relevant factor; or 16 (c) have been determined to be priced disproportionally in relation to 17 their therapeutic benefits. 18 2. Reporting requirements. (a) Drug manufacturers shall provide the 19 department, upon request, the following information with respect to 20 drugs identified by the department for review: 21 (i) the actual cost of developing, manufacturing, producing (including 22 the cost per dose of production), and distributing the drug; 23 (ii) research and development costs of the drug, including payments to 24 predecessor entities conducting research and development, such as 25 biotechnology companies, universities and medical schools, and private 26 research institutions; 27 (iii) administrative, marketing, and advertising costs for the drug, 28 apportioned by marketing activities that are directed to consumers, 29 marketing activities that are directed to prescribers, and the total 30 cost of all marketing and advertising that is directed primarily to 31 consumers and prescribers in New York, including but not limited to 32 prescriber detailing, copayment discount programs, and direct-to-consum- 33 er marketing; 34 (iv) the extent of utilization of the drug; 35 (v) prices for the drug that are charged to purchasers outside the 36 United States; 37 (vi) prices charged to typical purchasers in the state, including but 38 not limited to pharmacies, pharmacy chains, pharmacy wholesalers, or 39 other direct purchasers; 40 (vii) the average rebates and discounts provided per payer type; 41 (viii) the average profit margin of each drug over the prior five-year 42 period; and 43 (ix) any other information the manufacturer feels is necessary to 44 provide to justify the drug price, including but not limited to, costs 45 incurred for research and development for predecessor drugs, or other 46 drugs related to the drug brought to market. 47 (b) The department shall develop a standard reporting form that satis- 48 fies the requirements of paragraph (a) of this subdivision. 49 (c) All information disclosed pursuant to paragraph (a) of this subdi- 50 vision shall be considered confidential and shall not be disclosed by 51 the department in a form that identifies a specific manufacturer or 52 prices charged for drugs by such manufacturer. 53 3. Review of drug cost and pricing. The department may refer cost and 54 pricing information collected pursuant to subdivision two of thisA. 3007--A 8 1 section with respect to a particular drug to the drug utilization review 2 board, and request the board to recommend a per-unit benchmark price for 3 the drug, taking into consideration such cost and pricing information as 4 well as other factors, including but not limited to: 5 (a) the seriousness and prevalence of the disease or condition that is 6 treated by the drug; 7 (b) the extent of utilization of the drug; 8 (c) the effectiveness of the drug in treating the conditions for which 9 it is prescribed or improve a patient's health, quality of life, or 10 overall health outcomes; 11 (d) the likelihood that use of the drug will reduce the need for other 12 medical care, including hospitalization; 13 (e) the average wholesale price and retail price of the drug; 14 (f) the number of pharmaceutical manufacturers that produce the drug; 15 and 16 (g) whether there are pharmaceutical equivalents to the drug. 17 4. Designation of high priced drugs. (a) If the drug utilization 18 review board recommends a benchmark price for a drug, such recommenda- 19 tion, along with the documentation supporting such recommendation, shall 20 be submitted to the attorney general for review. The attorney general 21 shall approve, deny, or refer the recommendation back to the drug utili- 22 zation review board for further review. The attorney general shall only 23 approve a recommended benchmark price once he or she is satisfied that 24 the price is adequate to guarantee patient access to such drug. 25 (b) If the price at which a drug is being sold by a manufacturer 26 exceeds the benchmark price for the drug determined by the department 27 pursuant to this section, the commissioner shall designate such drug a 28 high priced drug and notify the manufacturer of such drug of such desig- 29 nation. The commissioner shall publish on the department website a list 30 of drugs designated as high priced drugs pursuant to this subdivision, 31 along with the date on which each drug first appeared on such list and 32 the benchmark price for such drug determined by the department. 33 5. Rebates. (a) The commissioner may require a drug manufacturer to 34 provide rebates to the department for a drug determined to be a high 35 priced drug pursuant to subdivision three of this section when such drug 36 is paid for under the Medicaid program. In determining the amount of any 37 such rebate, the commissioner may consider information provided by the 38 drug manufacturer with respect to surcharges paid by the manufacturer, 39 or decreases in the price of the drug as a result of surcharges paid by 40 others, pursuant to article twenty-C of the tax law. 41 (b) Rebates required by this section shall be in addition to any 42 rebates payable to the department pursuant to any other provision of 43 federal or state law. The additional rebates authorized pursuant to 44 this subparagraph shall apply to drugs dispensed to enrollees of managed 45 care providers pursuant to section three hundred sixty-four-j of the 46 social services law and to drugs dispensed to Medicaid recipients who 47 are not enrollees of such providers. 48 § 2. The tax law is amended by adding a new article 20-C to read as 49 follows: 50 ARTICLE 20-C 51 SURCHARGE ON HIGH PRICED DRUGS 52 Section 492. Definitions. 53 493. Imposition of surcharge. 54 494. Returns to be secret. 55 § 492. Definitions. 1. The following terms shall have the following 56 meanings when used in this section.A. 3007--A 9 1 (a) "High priced drug" shall mean a drug determined to be a high 2 priced drug pursuant to section two hundred eighty of the public health 3 law, but not until the fifteenth day after the manufacturer was notified 4 of such designation and appeared on a list of such drugs to be main- 5 tained by the state department of health on its website pursuant to 6 subdivision seven of section four hundred ninety-three of this article. 7 (b) "Gross receipt" shall mean the amount received in or by reason of 8 any sale of a high priced drug, conditional or otherwise, or in or by 9 reason of the furnishing of such high priced drug. Gross receipt is 10 expressed in money, whether paid in cash, credit or property of any kind 11 or nature, and shall be determined without any deduction therefrom on 12 account of the cost of the service sold or the cost of materials, labor 13 or services used or other costs, interest or discount paid, or any other 14 expenses whatsoever. "Amount received" for the purpose of the definition 15 of gross receipt, as used throughout this article, means the amount 16 charged for the sale or provision of a high priced drug. 17 (c) "Establishment" shall mean any person, firm, corporation or asso- 18 ciation required to be registered with the education department pursuant 19 to section six thousand eight hundred eight or section six thousand 20 eight hundred eight-b of the education law, except for a "pharmacy" 21 defined in subdivision one of section six thousand eight hundred two of 22 the education law and any person, firm, corporation or association that 23 would be required to be registered with the education department pursu- 24 ant to section six thousand eight hundred eight-b of the education law 25 but for the exception in subdivision two of such section, except for a 26 "pharmacy" defined in subdivision one of section six thousand eight 27 hundred two of the education law. 28 (d) "Excess charge amount of the gross receipt" shall mean the differ- 29 ence between the price charged by an establishment for a high priced 30 drug and the benchmark price for such drug as determined by the depart- 31 ment of health pursuant to section two hundred eighty of the public 32 health law. 33 (e) "Invoice" shall mean the invoice, sales slip, memorandum of sale, 34 or other document evidencing a sale of a high priced drug. 35 § 493. Imposition of surcharge. 1. There is hereby imposed a surcharge 36 on the excess charge amount of the gross receipt from the first sale in 37 the state of a high priced drug by an establishment at the rate of sixty 38 percent. The surcharge imposed by this article shall be charged against 39 and be paid by the establishment making such first sale and shall not be 40 added as a separate charge or line item on any invoice given to the 41 customer or otherwise passed down to the customer. However, an estab- 42 lishment liable for the surcharge imposed by this article shall clearly 43 note on the invoice for the first sale of such high priced drug in the 44 state its liability for the surcharge imposed by this article with 45 regard to such sale, along with its name, address, and taxpayer iden- 46 tification number. Any sale of a high priced drug in this state shall be 47 presumed to be the first sale of such drug in the state unless the sell- 48 er with regard to such sale can prove that the surcharge imposed by this 49 article is due from another establishment in the chain of title of such 50 drug, which burden can be satisfied, among other ways, by producing an 51 invoice from the establishment owing such surcharge in which such estab- 52 lishment has noted its liability for such surcharge. 53 2. Every establishment liable for the surcharge imposed by this arti- 54 cle shall, on or before the twentieth date of each month, file with the 55 commissioner a return, on forms to be prescribed by the commissioner, 56 showing the total excess charge amount of its gross receipt from theA. 3007--A 10 1 first sale in the state of high priced drugs during the preceding calen- 2 dar month and the amount of surcharge due thereon. Such returns shall 3 contain such further information as the commissioner may require. Every 4 establishment required to file a return under this section shall, at the 5 time of filing such return, pay to the commissioner the total amount of 6 surcharge due on such first sales of high priced drugs for the period 7 covered by such return. If a return is not filed when due, the surcharge 8 shall be due on the day on which the return is required to be filed. 9 3. Establishments making sales of high priced drugs in this state 10 shall maintain all invoices pertaining to such sales for three years 11 after such sales unless the commissioner provides for a different 12 retention period by rule or regulation. The establishment shall produce 13 such records upon demand by the department. 14 4. Whenever the commissioner shall determine that any moneys received 15 under the provisions of this article were paid in error, he may cause 16 the same to be refunded, with interest, in accordance with such rules 17 and regulations as he or she may prescribe, except that no interest 18 shall be allowed or paid if the amount thereof would be less than one 19 dollar. Such interest shall be at the overpayment rate set by the 20 commissioner pursuant to subdivision twenty-sixth of section one hundred 21 seventy-one of this chapter, or if no rate is set, at the rate of six 22 percent per annum, from the date when the surcharge, penalty or interest 23 to be refunded was paid to a date preceding the date of the refund check 24 by not more than thirty days. Provided, however, that for the purposes 25 of this subdivision, any surcharge paid before the last day prescribed 26 for its payment shall be deemed to have been paid on such last day. Such 27 moneys received under the provisions of this article that the commis- 28 sioner shall determine were paid in error, may be refunded out of funds 29 in the custody of the comptroller to the credit of such surcharges 30 provided an application therefor is filed with the commissioner within 31 two years from the time the erroneous payment was made. 32 5. The provisions of article twenty-seven of this chapter shall apply 33 to the surcharge imposed by this article in the same manner and with the 34 same force and effect as if the language of such article had been incor- 35 porated in full into this section and had expressly referred to the 36 surcharge imposed by this article, except to the extent that any 37 provision of such article is either inconsistent with a provision of 38 this article or is not relevant to this article. 39 6. (a) The surcharges, interest, and penalties imposed by this article 40 and collected or received by the commissioner shall be deposited daily 41 with such responsible banks, banking houses or trust companies, as may 42 be designated by the superintendent of financial services, to the credit 43 of the high priced drug reimbursement fund established pursuant to 44 section eighty-nine-j of the state finance law. An account may be estab- 45 lished in one or more of such depositories. Such deposits will be kept 46 separate and apart from all other money in the possession of the super- 47 intendent of financial services. The superintendent of financial 48 services shall require adequate security from all such depositories. Of 49 the total revenue collected or received under this article, the super- 50 intendent of financial services shall retain such amount as the commis- 51 sioner may determine to be necessary for refunds under this article. The 52 commissioner is authorized and directed to deduct from the amounts it 53 receives under this article, before deposit into the trust accounts 54 designated by the superintendent of financial services, a reasonable 55 amount necessary to effectuate refunds of appropriations of the depart-A. 3007--A 11 1 ment to reimburse the department for the costs incurred to administer, 2 collect and distribute the surcharges imposed by this article. 3 (b) On or before the twelfth and twenty-sixth day of each succeeding 4 month, after reserving such amount for such refunds and deducting such 5 amounts for such costs, as provided for in paragraph (a) of this 6 subsection, the commissioner shall certify to the superintendent of 7 financial services the amount of all revenues so received during the 8 prior month as a result of the surcharges, interest and penalties so 9 imposed. The amount of revenues so certified shall be paid over by the 10 fifteenth and the final business day of each succeeding month from such 11 account into the high priced drug reimbursement fund established pursu- 12 ant to section eighty-nine-j of the state finance law. 13 7. The state department of health shall maintain and publish on its 14 website a list of drugs determined, pursuant to section two hundred 15 eighty of the public health law, to be high priced drugs, along with the 16 date on which each drug first appeared on that list and the benchmark 17 price for such drug determined pursuant to section two hundred eighty of 18 the public health law by the department of health. Promptly after 19 including a high priced drug on such list, the state department of 20 health shall notify the manufacturer of such drug and the department 21 that the drug has been determined to be a high priced drug. 22 8. The state department of education and the state department of 23 health shall cooperate with the department in administering this 24 surcharge, including sharing with the department pertinent information 25 about establishments upon the request of the commissioner. 26 9. The commissioner may make, adopt and amend rules, regulations, 27 procedures and forms necessary for the proper administration of this 28 article. 29 § 494. Returns to be secret. 1. Except in accordance with proper judi- 30 cial order or as in this section or otherwise provided by law, it shall 31 be unlawful for the commissioner, any officer or employee of the depart- 32 ment, or any officer or person who, pursuant to this section, is permit- 33 ted to inspect any return or report or to whom a copy, an abstract or a 34 portion of any return or report is furnished, or to whom any information 35 contained in any return or report is furnished, or any person engaged or 36 retained by such department on an independent contract basis or any 37 person who in any manner may acquire knowledge of the contents of a 38 return or report filed pursuant to this article to divulge or make known 39 in any manner the contents or any other information relating to the 40 business of an establishment contained in any return or report required 41 under this article. The officers charged with the custody of such 42 returns or reports shall not be required to produce any of them or 43 evidence of anything contained in them in any action or proceeding in 44 any court, except on behalf of the state, the state department of 45 health, the state department of education or the commissioner in an 46 action or proceeding under the provisions of this chapter or on behalf 47 of the state or the commissioner in any other action or proceeding 48 involving the collection of a tax due under this chapter to which the 49 state or the commissioner is a party or a claimant or on behalf of any 50 party to any action or proceeding under the provisions of this article, 51 when the returns or the reports or the facts shown thereby are directly 52 involved in such action or proceeding, or in an action or proceeding 53 relating to the regulation or surcharge of high priced drugs on behalf 54 of officers to whom information shall have been supplied as provided in 55 subsection two of this section, in any of which events the court may 56 require the production of, and may admit in evidence so much of saidA. 3007--A 12 1 returns or reports or of the facts shown thereby as are pertinent to the 2 action or proceeding and no more. Nothing herein shall be construed to 3 prohibit the commissioner, in his or her discretion, from allowing the 4 inspection or delivery of a certified copy of any return or report filed 5 under this article or of any information contained in any such return or 6 report by or to a duly authorized officer or employee of the state 7 department of health or the state department of education; or by or to 8 the attorney general or other legal representatives of the state when an 9 action shall have been recommended or commenced pursuant to this chapter 10 in which such returns or reports or the facts shown thereby are directly 11 involved; or the inspection of the returns or reports required under 12 this article by the comptroller or duly designated officer or employee 13 of the state department of audit and control, for purposes of the audit 14 of a refund of any surcharge paid by an establishment or other person 15 under this article; nor to prohibit the delivery to an establishment, or 16 a duly authorized representative of such establishment, a certified copy 17 of any return or report filed by such establishment pursuant to this 18 article, nor to prohibit the publication of statistics so classified as 19 to prevent the identification of particular returns or reports and the 20 items thereof. 21 2. The commissioner, in his or her discretion and pursuant to such 22 rules and regulations as he or she may adopt, may permit the commission- 23 er of internal revenue of the United States, or the appropriate officers 24 of any other state which regulates or surcharges high priced drugs, or 25 the duly authorized representatives of such commissioner or of any such 26 officers, to inspect returns or reports made pursuant to this article, 27 or may furnish to such commissioner or other officers, or duly author- 28 ized representatives, a copy of any such return or report or an abstract 29 of the information therein contained, or any portion thereof, or may 30 supply such commissioner or any such officers or such representatives 31 with information relating to the business of an establishment making 32 returns or reports hereunder. The commissioner may refuse to supply 33 information pursuant to this subsection to the commissioner of internal 34 revenue of the United States or to the officers of any other state if 35 the statutes of the United States, or of the state represented by such 36 officers, do not grant substantially similar privileges to the commis- 37 sioner, but such refusal shall not be mandatory. Information shall not 38 be supplied to the commissioner of internal revenue of the United States 39 or the appropriate officers of any other state which regulates or 40 surcharges high priced drugs, or the duly authorized representatives of 41 such commissioner or of any of such officers, unless such commissioner, 42 officer or other representatives shall agree not to divulge or make 43 known in any manner the information so supplied, but such officers may 44 transmit such information to their employees or legal representatives 45 when necessary, who in turn shall be subject to the same restrictions as 46 those hereby imposed upon such commissioner, officer or other represen- 47 tatives. 48 3. (a) Any officer or employee of the state who willfully violates the 49 provisions of subsection one or two of this section shall be dismissed 50 from office and be incapable of holding any public office in this state 51 for a period of five years thereafter. 52 (b) A violation of this article shall be considered a violation of 53 secrecy provisions under article thirty-seven of this chapter. 54 § 3. Section 1825 of the tax law, as amended by section 89 of part A 55 of chapter 59 of the laws of 2014, is amended to read as follows:A. 3007--A 13 1 § 1825. Violation of secrecy provisions of the tax law.--Any person 2 who violates the provisions of subdivision (b) of section twenty-one, 3 subdivision one of section two hundred two, subdivision eight of section 4 two hundred eleven, subdivision (a) of section three hundred fourteen, 5 subdivision one or two of section four hundred thirty-seven, section 6 four hundred eighty-seven, section four hundred ninety-four, subdivision 7 one or two of section five hundred fourteen, subsection (e) of section 8 six hundred ninety-seven, subsection (a) of section nine hundred nine- 9 ty-four, subdivision (a) of section eleven hundred forty-six, section 10 twelve hundred eighty-seven, subdivision (a) of section fourteen hundred 11 eighteen, subdivision (a) of section fifteen hundred eighteen, subdivi- 12 sion (a) of section fifteen hundred fifty-five of this chapter, and 13 subdivision (e) of section 11-1797 of the administrative code of the 14 city of New York shall be guilty of a misdemeanor. 15 § 4. The state finance law is amended by adding a new section 89-j to 16 read as follows: 17 § 89-j. High Priced Drug Reimbursement Fund. 1. There is hereby 18 established in the sole custody of the superintendent of financial 19 services an agency fund, to be known as the "High Priced Drug Reimburse- 20 ment Fund." 21 2. Such fund shall consist of revenues derived from the surcharge on 22 high priced drugs imposed by article twenty-C of the tax law and all 23 other moneys credited or transferred thereto from any other fund or 24 source pursuant to law. 25 3. All moneys retained in such fund shall be held on behalf of health 26 insurers and the New York Medicaid program, and paid out by the super- 27 intendent of financial services to health insurers and the New York 28 Medicaid program in proportion to health insurers' and the New York 29 Medicaid program's respective costs attributable to each pharmaceutical 30 product for which the surcharge on high price drugs was imposed. The 31 superintendent of financial services shall establish regulations to 32 apportion such revenues derived to reflect health insurers' and the New 33 York Medicaid program's respective costs for such drugs. 34 4. All moneys distributed from the high priced drug reimbursement fund 35 to a health insurer shall be, at the discretion of the superintendent of 36 financial services, either (1) credited to the premiums charged by such 37 health insurer for the next policy period or (2) credited to policyhold- 38 ers pursuant to procedures that the superintendent of financial services 39 shall establish by regulations. 40 5. For purposes of this section: (a) "health insurer" shall mean an 41 insurance company authorized in this state to write accident and health 42 insurance, a company organized pursuant to article forty-three of the 43 insurance law, a municipal cooperative health benefit plan established 44 pursuant to article forty-seven of the insurance law, a health mainte- 45 nance organization certified pursuant to article forty-four of the 46 public health law, an institution of higher education certified pursuant 47 to section one thousand one hundred twenty-four of the insurance law, 48 the New York state health insurance plan established under article elev- 49 en of the civil service law, or an employer with an employee benefit 50 plan, as defined by the federal Employee Retirement Income Security Act 51 of 1974, provided that the employer voluntarily elects; 52 (b) "New York Medicaid program" shall mean the medical assistance 53 program for needy persons established pursuant to title eleven of arti- 54 cle five of the social services law.A. 3007--A 14 1 6. The superintendent of financial services may issue such rules and 2 regulations as he or she shall deem necessary to implement this section 3 and administer the high priced drug reimbursement fund. 4 7. The funds so received and deposited in the high priced drug 5 reimbursement fund shall not be deemed to be state funds. 6 8. Moneys distributed from the fund shall not be subject to appropri- 7 ation. 8 9. No amounts may be paid out of this fund prior to April first, two 9 thousand eighteen. 10 § 5. Subdivision 1 and paragraph (f) of subdivision 2 of section 369- 11 bb of the social services law, subdivision 1 as amended and paragraph 12 (f) of subdivision 2 as added by section 20 of part A of chapter 56 of 13 the laws of 2013, are amended and two new paragraphs (g) and (h) are 14 added to subdivision 2 to read as follows: 15 1. A [nineteen-member] twenty-three member drug utilization review 16 board is hereby created in the department. The board is responsible for 17 the establishment and implementation of medical standards and criteria 18 for the retrospective and prospective DUR program. 19 (f)(i) The commissioner shall designate a person from the department 20 to serve as chairperson of the board. 21 (ii) Two persons who are health care economists. 22 (g) One person who is an actuary. 23 (h) One person representing the department of financial services. 24 § 6. Paragraphs (g), (h) and (i) of subdivision 8 of section 369-bb of 25 the social services law are relettered paragraphs (h), (i) and (j) and a 26 new paragraph (g) is added to read as follows: 27 (g) The review of the drug cost and pricing of specific drugs submit- 28 ted to the board pursuant to section two hundred eighty of the public 29 health law, and the formulation of recommendations as to a per-unit 30 benchmark price for such drugs, in accordance with the provisions of 31 such section. 32 § 7. The social services law is amended by adding a new section 365-i 33 to read as follows: 34 § 365-i. Prescription drugs in medicaid managed care programs. 1. 35 Definitions. (a) The definitions of terms in section two hundred seventy 36 of the public health law shall apply to this section. 37 (b) As used in this section, unless the context clearly requires 38 otherwise: 39 (i) "Managed care provider" means a managed care provider under 40 section three hundred sixty-four-j of this title, a managed long term 41 care plan under section forty-four hundred three-f of the public health 42 law, or any other entity that provides or arranges for the provision of 43 medical assistance services and supplies to participants directly or 44 indirectly (including by referral), including case management, and the 45 managed care provider's authorized agents. 46 (ii) "Participant" means a medical assistance recipient who receives, 47 is required to receive or elects to receive his or her medical assist- 48 ance services from a managed care provider. 49 2. Providing and payment for prescription drugs for medicaid managed 50 care provider participants. Prescription drugs eligible for reimburse- 51 ment under this article prescribed in relation to a service provided by 52 a managed care provider shall be provided and paid for under the 53 preferred drug program and the clinical drug review program under title 54 one of article two-a of the public health law. The managed care provider 55 shall account to and reimburse the department for the net cost to the 56 department for prescription drugs provided to the managed care provid-A. 3007--A 15 1 er's participants. Payment for prescription drugs shall be included in 2 the capitation payments to the managed care provider for services or 3 supplies provided to a managed care provider's participants. 4 § 8. Section 270 of the public health law is amended by adding a new 5 subdivision 15 to read as follows: 6 15. "Third-party health care payer" has its ordinary meanings and 7 includes an entity such as a fiscal administrator, or administrative 8 services provider that participates in the administration of a third- 9 party health care payer system. 10 § 9. The public health law is amended by adding a new section 274-a to 11 read as follows: 12 § 274-a. Use of preferred drug program and clinical drug review 13 program. The commissioner shall contract with any third-party health 14 care payer that so chooses, to use the preferred drug program and the 15 clinical drug review program to provide and pay for prescription drugs 16 for the third-party health care payer's enrollees. To contract under 17 this section, the third-party health care payer shall provide coverage 18 for prescription drugs authorized under this title. The third-party 19 health care payer shall account to and reimburse the department for the 20 net cost to the department for prescription drugs provided to the third- 21 party health care payers' enrollees. The contract shall include terms 22 required by the commissioner. 23 § 10. Section 272 of the public health law is amended by adding a new 24 subdivision 12 to read as follows: 25 12. (a) As used in this section, unless the context clearly requires 26 otherwise, "high-priced drug" means a drug which: 27 (i) when first introduced on the market, is prohibitively expensive 28 for patients who could benefit from the drug; or 29 (ii) suddenly or over a relatively brief period of time experiences a 30 large price increase and such increase is not explained by a significant 31 increase in ingredient costs or by some other relevant factor; or 32 (iii) has been determined to be priced disproportionally in relation 33 to its therapeutic benefits. 34 (b) Where a drug meets the criteria in paragraph (a) of this subdivi- 35 sion: 36 (i) the commissioner may negotiate with the manufacturer of the drug 37 for payment of an enhanced supplemental rebate, including under any 38 provision of this section, and designate the drug to be on the preferred 39 drug list; and 40 (ii) the high-priced drug shall not be placed on the preferred drug 41 list in the absence of a negotiated enhanced supplemental rebate under 42 this subdivision, or a rebate under section two hundred eighty of this 43 article, notwithstanding paragraph (b) of subdivision ten of this 44 section. 45 § 11. Subdivisions 25 and 25-a of section 364-j of the social services 46 law are REPEALED. 47 § 12. The opening paragraph and subparagraphs (i) and (ii) of para- 48 graph (b) and paragraph (d) of subdivision 9 of section 367-a of the 49 social services law, the opening paragraph and paragraph (d) as amended 50 by chapter 19 of the laws of 1998, subparagraphs (i) and (ii) of para- 51 graph (b) as amended by section 2 of part C of chapter 60 of the laws of 52 2014, subparagraph (i) of paragraph (d) as amended by section 10-a of 53 part H of chapter 59 of the laws of 2011 and subparagraph (ii) of para- 54 graph (d) as amended by section 48 of part C of chapter 58 of the laws 55 of 2009, are amended to read as follows:A. 3007--A 16 1 Notwithstanding any inconsistent provision of law or regulation to the 2 contrary, for those drugs which may not be dispensed without a 3 prescription as required by section sixty-eight hundred ten of the 4 education law and for which payment is authorized pursuant to paragraph 5 (g) of subdivision two of section three hundred sixty-five-a of this 6 title, and for those drugs that are available without a prescription as 7 required by section sixty-eight hundred ten of the education law but are 8 reimbursed as items of medical assistance pursuant to paragraph (a) of 9 subdivision four of section three hundred sixty-five-a of this title, 10 payments under this title shall be made at the following amounts: 11 (i) [if the drug dispensed is a multiple source prescription drug for12which an upper limit has been set by the federal centers for medicare13and medicaid services, the lower of: (A) an amount equal to the specific14upper limit set by such federal agency for the multiple source15prescription drug; (B) the estimated acquisition cost of such drug to16pharmacies which, for purposes of this subparagraph, shall mean the17average wholesale price of a prescription drug based on the package size18dispensed from, as reported by the prescription drug pricing service19used by the department, less twenty-five percent thereof; (C) the maxi-20mum acquisition cost, if any, established pursuant to paragraph (e) of21this subdivision, provided that the methodology used by the department22to establish a maximum acquisition cost shall not include average acqui-23sition cost as determined by department surveys; or (D) the dispensing24pharmacy's usual and customary price charged to the general public; and] 25 if the drug dispensed is a generic prescription drug, or is a drug that 26 is available without a prescription as required by section sixty-eight 27 hundred ten of the education law but is reimbursed as an item of medical 28 assistance pursuant to paragraph (a) of subdivision four of section 29 three hundred sixty-five-a of this title, the lower of: (A) an amount 30 equal to the national average drug acquisition cost set by the federal 31 centers for medicare and medicaid services for the drug, if any, or if 32 such amount if not available, the wholesale acquisition cost of the drug 33 based on the package size dispensed from, as reported by the 34 prescription drug pricing service used by the department; (B) the feder- 35 al upper limit, if any, established by the federal centers for medicare 36 and medicaid services; (C) the state maximum acquisition cost, if any, 37 established pursuant to paragraph (e) of this subdivision; or (D) the 38 dispensing pharmacy's usual and customary price charged to the general 39 public; 40 (ii) if the drug dispensed is [a multiple source prescription drug or] 41 a brand-name prescription drug [for which no specific upper limit has42been set by such federal agency], the lower of [the estimated acquisi-43tion cost of such drug to pharmacies or the dispensing pharmacy's usual44and customary price charged to the general public. For sole and multiple45source brand name drugs, estimated acquisition cost means the average46wholesale price of a prescription drug based upon the package size47dispensed from, as reported by the prescription drug pricing service48used by the department, less seventeen percent thereof or the wholesale49acquisition cost of a prescription drug based upon package size50dispensed from, as reported by the prescription drug pricing service51used by the department, minus zero and forty-one hundredths percent52thereof, and updated monthly by the department. For multiple source53generic drugs, estimated acquisition cost means the lower of the average54wholesale price of a prescription drug based on the package size55dispensed from, as reported by the prescription drug pricing service56used by the department, less twenty-five percent thereof, or the maximumA. 3007--A 17 1acquisition cost, if any, established pursuant to paragraph (e) of this2subdivision, provided that the methodology used by the department to3establish a maximum acquisition cost shall not include average acquisi-4tion cost as determined by department surveys.]: 5 (A) an amount equal to the national average drug acquisition cost set 6 by the federal centers for medicare and medicaid services for the drug, 7 if any, or if such amount is not available, the wholesale acquisition 8 cost of the drug based on the package size dispensed from, as reported 9 by the prescription drug pricing service used by the department; or (B) 10 the dispensing pharmacy's usual and customary price charged to the 11 general public; and 12 (d) In addition to the amounts paid pursuant to paragraph (b) of this 13 subdivision [to pharmacies for those drugs which may not be dispensed14without a prescription, as required by section sixty-eight hundred ten15of the education law and for which payment is authorized pursuant to16paragraph (g) of subdivision two of section three hundred sixty-five-a17of this title], the department shall pay a professional pharmacy 18 dispensing fee for each such [prescription] drug dispensed[, which19dispensing fee shall not be less than the following amounts:20(i) for prescription drugs categorized as generic by the prescription21drug pricing service used by the department, three dollars and fifty22cents per prescription; and23(ii) for prescription drugs categorized as brand-name prescription24drugs by the prescription drug pricing service used by the department,25three dollars and fifty cents per prescription, provided, however, that26for brand name prescription drugs reimbursed pursuant to subparagraph27(ii) of paragraph (a-1) of subdivision four of section three hundred28sixty-five-a of this title, the dispensing fee shall be four dollars and29fifty cents per prescription] in the amount of ten dollars per 30 prescription or written order of a practitioner; provided, however that 31 this professional dispensing fee will not apply to drugs that are avail- 32 able without a prescription as required by section sixty-eight hundred 33 ten of the education law but do not meet the definition of a covered 34 outpatient drug pursuant to Section 1927K of the Social Security Act. 35 § 13. It shall be an unacceptable practice in the Medicaid program 36 established pursuant to title 11 of article 5 of the social services law 37 for a provider to prescribe opioids in violation of the requirements of 38 paragraph (g-1) of subdivision 2 of section 365-a of such law, in 39 violation of any other applicable law limiting or restricting the 40 prescribing of opioids, and/or contrary to recommendations issued by the 41 drug utilization review board established by section 369-bb of the 42 social services law, such practice may result in the provider being 43 sanctioned pursuant to 18 NYCRR 515. 44 § 14. Paragraph (g-1) of subdivision 2 of section 365-a of the social 45 services law, as amended by section 5 of part C of chapter 60 of the 46 laws of 2014, is amended to read as follows: 47 (g-1) drugs provided on an in-patient basis, those drugs contained on 48 the list established by regulation of the commissioner of health pursu- 49 ant to subdivision four of this section, and those drugs which may not 50 be dispensed without a prescription as required by section sixty-eight 51 hundred ten of the education law and which the commissioner of health 52 shall determine to be reimbursable based upon such factors as the avail- 53 ability of such drugs or alternatives at low cost if purchased by a 54 medicaid recipient, or the essential nature of such drugs as described 55 by such commissioner in regulations, provided, however, that such drugs, 56 exclusive of long-term maintenance drugs, shall be dispensed in quanti-A. 3007--A 18 1 ties no greater than a thirty day supply or one hundred doses, whichever 2 is greater; provided further that the commissioner of health is author- 3 ized to require prior authorization for any refill of a prescription 4 when more than a ten day supply of the previously dispensed amount 5 should remain were the product used as normally indicated, or in the 6 case of a controlled substance, as defined in section thirty-three 7 hundred two of the public health law, when more than a seven day supply 8 of the previously dispensed amount should remain were the product used 9 as normally indicated; provided further that the commissioner of health 10 is authorized to require prior authorization of prescriptions of opioid 11 analgesics in excess of four prescriptions in a thirty-day period in 12 accordance with section two hundred seventy-three of the public health 13 law; medical assistance shall not include any drug provided on other 14 than an in-patient basis for which a recipient is charged or a claim is 15 made in the case of a prescription drug, in excess of the maximum reim- 16 bursable amounts to be established by department regulations in accord- 17 ance with standards established by the secretary of the United States 18 department of health and human services, or, in the case of a drug not 19 requiring a prescription, in excess of the maximum reimbursable amount 20 established by the commissioner of health pursuant to paragraph (a) of 21 subdivision four of this section; 22 § 15. Subparagraph (iii) of paragraph (c) of subdivision 6 of section 23 367-a of the social services law, as amended by section 9 of part C of 24 chapter 60 of the laws of 2014, is amended to read as follows: 25 (iii) Notwithstanding any other provision of this paragraph, co-pay- 26 ments charged for each generic prescription drug dispensed shall be one 27 dollar and for each brand name prescription drug dispensed shall be 28 [three dollars] two dollars and fifty cents; provided, however, that the 29 co-payments charged for [each brand name prescription drug on the30preferred drug list established pursuant to section two hundred seven-31ty-two of the public health law or, for managed care providers operating32pursuant to section three hundred sixty-four-j of this title, for each33brand name prescription drug on a managed care provider's formulary that34such provider has designated as a preferred drug, and the co-payments35charged for] each brand name prescription drug reimbursed pursuant to 36 subparagraph (ii) of paragraph (a-1) of subdivision four of section 37 three hundred sixty-five-a of this title shall be one dollar. 38 § 16. Subparagraphs 1 and 5 of paragraph (f) of subdivision 7 of 39 section 367-a of the social services law, as added by section 11 of part 40 B of chapter 59 of the laws of 2016, are amended to read as follows: 41 (1) The department may require manufacturers of drugs other than 42 single source drugs and innovator multiple source drugs, as such terms 43 are defined in 42 U.S.C. § 1396r-8(k), to provide rebates to the depart- 44 ment for any drug that has increased more than three hundred percent of 45 its state maximum acquisition cost (SMAC)[, on or after] during the 46 period April 1, 2016 through March 31, 2017, or that has increased more 47 than seventy-five percent of its SMAC on or after April 1, 2017, in 48 comparison to its SMAC at any time during the course of the preceding 49 twelve months. The required rebate shall be limited to the amount by 50 which the current SMAC for the drug exceeds [three hundred percent] the 51 applicable percentage of the SMAC for the same drug at any time during 52 the course of the preceding twelve months. Such rebates shall be in 53 addition to any rebates payable to the department pursuant to any other 54 provision of federal or state law. Nothing herein shall affect the 55 department's obligation to reimburse for covered outpatient drugs pursu- 56 ant to paragraph (d) of this subdivision.A. 3007--A 19 1 (5) Beginning in two thousand seventeen, the department shall provide 2 an annual report to the legislature no later than February first setting 3 forth: 4 (i) The number of drugs that exceeded the ceiling price established in 5 this paragraph during the preceding year in comparison to the number of 6 drugs that experienced at least a three hundred percent price increase 7 during two thousand fourteen and two thousand fifteen, or at least a 8 seventy-five percent price increase during two thousand fifteen and two 9 thousand sixteen; 10 (ii) The average percent amount above the ceiling price of drugs that 11 exceeded the ceiling price in the preceding year in comparison to the 12 number of drugs that experienced a price increase more than three 13 hundred percent during two thousand fourteen and two thousand fifteen, 14 or at least a seventy-five percent price increase during two thousand 15 fifteen and two thousand sixteen; 16 (iii) The number of generic drugs available to enrollees in Medicaid 17 fee for service or Medicaid managed care, by fiscal quarter, in the 18 preceding year in comparison to the drugs available, by fiscal quarter, 19 during two thousand fourteen [and], two thousand fifteen, and two thou- 20 sand sixteen; and 21 (iv) The total drug spend on generic drugs for the preceding year in 22 comparison to the total drug spend on generic drugs during two thousand 23 fourteen [and], two thousand fifteen, and two thousand sixteen. 24 § 17. Severability. If any clause, sentence, paragraph, or subdivi- 25 sion of this section shall be adjudged by any court of competent juris- 26 diction to be invalid, such judgment shall not affect, impair, or inval- 27 idate the remainder thereof, but shall be confined in its operation to 28 the clause, sentence, paragraph, or subdivision directly involved in the 29 controversy in which such judgment shall have been rendered. It is here- 30 by declared to be the intent of the legislature that this section would 31 have been enacted even if such invalid provisions had not been included 32 herein. 33 § 18. This act shall take effect immediately and shall be deemed to 34 have been in full force and effect on and after April 1, 2017; provided, 35 however, that sections fourteen, fifteen, and sixteen of this act shall 36 take effect July 1, 2017; provided, further, that the amendments to 37 paragraph (c) of subdivision 6 of section 367-a of the social services 38 law made by section fifteen of this act shall not affect the repeal of 39 such paragraph and shall be deemed repealed therewith; provided, 40 further, that the amendments to paragraph (f) of subdivision 7 of 41 section 367-a of the social services law made by section sixteen of this 42 act shall not affect the repeal of such paragraph and shall be deemed 43 repealed therewith; and provided, further, that the amendments to subdi- 44 vision 9 of section 367-a of the social services law made by section 45 twelve of this act shall not affect the expiration of such subdivision 46 and shall be deemed to expire therewith. 47 PART E 48 Intentionally Omitted 49 PART F 50 Section 1. Subdivision 4 of section 365-h of the social services law, 51 as separately amended by section 50 of part B and section 24 of part D 52 of chapter 57 of the laws of 2015, is amended to read as follows:A. 3007--A 20 1 4. The commissioner of health is authorized to assume responsibility 2 from a local social services official for the provision and reimburse- 3 ment of transportation costs under this section. If the commissioner 4 elects to assume such responsibility, the commissioner shall notify the 5 local social services official in writing as to the election, the date 6 upon which the election shall be effective and such information as to 7 transition of responsibilities as the commissioner deems prudent. The 8 commissioner is authorized to contract with a transportation manager or 9 managers to manage transportation services in any local social services 10 district, other than transportation services provided or arranged for: 11 enrollees of managed long term care plans issued certificates of author- 12 ity under section forty-four hundred three-f of the public health law; 13 and adult day health care programs located at a licensed residential 14 health care facility as defined by section twenty-eight hundred one of 15 the public health law or an approved extension site thereof. Any trans- 16 portation manager or managers selected by the commissioner to manage 17 transportation services shall have proven experience in coordinating 18 transportation services in a geographic and demographic area similar to 19 the area in New York state within which the contractor would manage the 20 provision of services under this section. Such a contract or contracts 21 may include responsibility for: review, approval and processing of 22 transportation orders; management of the appropriate level of transpor- 23 tation based on documented patient medical need; and development of new 24 technologies leading to efficient transportation services. If the 25 commissioner elects to assume such responsibility from a local social 26 services district, the commissioner shall examine and, if appropriate, 27 adopt quality assurance measures that may include, but are not limited 28 to, global positioning tracking system reporting requirements and 29 service verification mechanisms. Any and all reimbursement rates devel- 30 oped by transportation managers under this subdivision shall be subject 31 to the review and approval of the commissioner. 32 § 2. This act shall take effect October 1, 2017; provided, further, 33 that the amendments to section 365-h of the social services law made by 34 section one of this act shall not affect the repeal of such section and 35 shall be deemed repealed therewith. 36 PART G 37 Intentionally Omitted 38 PART H 39 Section 1. Subdivision 5 of section 168 of chapter 639 of the laws of 40 1996, constituting the New York Health Care Reform Act of 1996, as 41 amended by section 1 of part B of chapter 60 of the laws of 2014, is 42 amended to read as follows: 43 5. sections 2807-c, 2807-j, 2807-s and 2807-t of the public health 44 law, as amended or as added by this act, shall expire on December 31, 45 [2017] 2020, and shall be thereafter effective only in respect to any 46 act done on or before such date or action or proceeding arising out of 47 such act including continued collections of funds from assessments and 48 allowances and surcharges established pursuant to sections 2807-c, 49 2807-j, 2807-s and 2807-t of the public health law, and administration 50 and distributions of funds from pools established pursuant to sections 51 2807-c, 2807-j, 2807-k, 2807-l, 2807-m, 2807-s and 2807-t of the public 52 health law related to patient services provided before December 31,A. 3007--A 21 1 [2017] 2020, and continued expenditure of funds authorized for programs 2 and grants until the exhaustion of funds therefor; 3 § 2. Subdivision 1 of section 138 of chapter 1 of the laws of 1999, 4 constituting the New York Health Care Reform Act of 2000, as amended by 5 section 2 of part B of chapter 60 of the laws of 2014, is amended to 6 read as follows: 7 1. sections 2807-c, 2807-j, 2807-s, and 2807-t of the public health 8 law, as amended by this act, shall expire on December 31, [2017] 2020, 9 and shall be thereafter effective only in respect to any act done before 10 such date or action or proceeding arising out of such act including 11 continued collections of funds from assessments and allowances and 12 surcharges established pursuant to sections 2807-c, 2807-j, 2807-s and 13 2807-t of the public health law, and administration and distributions of 14 funds from pools established pursuant to sections 2807-c, 2807-j, 15 2807-k, 2807-l, 2807-m, 2807-s, 2807-t, 2807-v and 2807-w of the public 16 health law, as amended or added by this act, related to patient services 17 provided before December 31, [2017] 2020, and continued expenditure of 18 funds authorized for programs and grants until the exhaustion of funds 19 therefor; 20 § 3. Subparagraph (xv) of paragraph (a) of subdivision 6 of section 21 2807-s of the public health law, as amended by section 3 of part B of 22 chapter 60 of the laws of 2014, is amended to read as follows: 23 (xv) A gross annual statewide amount for the period January first, two 24 thousand fifteen through December thirty-first, two thousand [seventeen] 25 twenty, shall be one billion forty-five million dollars. 26 § 4. Subparagraph (xiii) of paragraph (a) of subdivision 7 of section 27 2807-s of the public health law, as amended by section 4 of part B of 28 chapter 60 of the laws of 2014, is amended to read as follows: 29 (xiii) twenty-three million eight hundred thirty-six thousand dollars 30 each state fiscal year for the period April first, two thousand twelve 31 through March thirty-first, two thousand [seventeen] twenty; 32 § 5. Subparagraphs (iv) and (v) of paragraph (a) of subdivision 9 of 33 section 2807-j of the public health law, as amended by section 5 of part 34 B of chapter 60 of the laws of 2014, are amended to read as follows: 35 (iv) seven hundred sixty-five million dollars annually of the funds 36 accumulated for the periods January first, two thousand through December 37 thirty-first, two thousand [sixteen] nineteen, and 38 (v) one hundred ninety-one million two hundred fifty thousand dollars 39 of the funds accumulated for the period January first, two thousand 40 [seventeen] twenty through March thirty-first, two thousand [seventeen] 41 twenty. 42 § 6. Subdivisions 5-a and 7 of section 2807-m of the public health 43 law, as amended by section 9 of part B of chapter 60 of the laws of 44 2014, subparagraphs (iv), (v) and (vi) of paragraph (d) of subdivision 45 5-a as added by section 4 of part W of chapter 57 of the laws of 2015, 46 are amended to read as follows: 47 5-a. Graduate medical education innovations pool. (a) Supplemental 48 distributions. (i) Thirty-one million dollars for the period January 49 first, two thousand eight through December thirty-first, two thousand 50 eight, shall be set aside and reserved by the commissioner from the 51 regional pools established pursuant to subdivision two of this section 52 and shall be available for distributions pursuant to subdivision five of 53 this section and in accordance with section 86-1.89 of title 10 of the 54 codes, rules and regulations of the state of New York as in effect on 55 January first, two thousand eight; provided, however, for purposes of 56 funding the empire clinical research investigation program (ECRIP) inA. 3007--A 22 1 accordance with paragraph eight of subdivision (e) and paragraph two of 2 subdivision (f) of section 86-1.89 of title 10 of the codes, rules and 3 regulations of the state of New York, distributions shall be made using 4 two regions defined as New York city and the rest of the state and the 5 dollar amount set forth in subparagraph (i) of paragraph two of subdivi- 6 sion (f) of section 86-1.89 of title 10 of the codes, rules and regu- 7 lations of the state of New York shall be increased from sixty thousand 8 dollars to seventy-five thousand dollars. 9 (ii) For periods on and after January first, two thousand nine, 10 supplemental distributions pursuant to subdivision five of this section 11 and in accordance with section 86-1.89 of title 10 of the codes, rules 12 and regulations of the state of New York shall no longer be made and the 13 provisions of section 86-1.89 of title 10 of the codes, rules and regu- 14 lations of the state of New York shall be null and void. 15 (b) Empire clinical research investigator program (ECRIP). Nine 16 million one hundred twenty thousand dollars annually for the period 17 January first, two thousand nine through December thirty-first, two 18 thousand ten, and two million two hundred eighty thousand dollars for 19 the period January first, two thousand eleven, through March thirty- 20 first, two thousand eleven, nine million one hundred twenty thousand 21 dollars each state fiscal year for the period April first, two thousand 22 eleven through March thirty-first, two thousand fourteen, [and] up to 23 eight million six hundred twelve thousand dollars each state fiscal year 24 for the period April first, two thousand fourteen through March thirty- 25 first, two thousand seventeen, and within amounts appropriated for each 26 state fiscal year for periods on and after April first, two thousand 27 seventeen, shall be set aside and reserved by the commissioner from the 28 regional pools established pursuant to subdivision two of this section 29 to be allocated regionally with two-thirds of the available funding 30 going to New York city and one-third of the available funding going to 31 the rest of the state and shall be available for distribution as 32 follows: 33 Distributions shall first be made to consortia and teaching general 34 hospitals for the empire clinical research investigator program (ECRIP) 35 to help secure federal funding for biomedical research, train clinical 36 researchers, recruit national leaders as faculty to act as mentors, and 37 train residents and fellows in biomedical research skills based on 38 hospital-specific data submitted to the commissioner by consortia and 39 teaching general hospitals in accordance with clause (G) of this subpar- 40 agraph. Such distributions shall be made in accordance with the follow- 41 ing methodology: 42 (A) The greatest number of clinical research positions for which a 43 consortium or teaching general hospital may be funded pursuant to this 44 subparagraph shall be one percent of the total number of residents 45 training at the consortium or teaching general hospital on July first, 46 two thousand eight for the period January first, two thousand nine 47 through December thirty-first, two thousand nine rounded up to the near- 48 est one position. 49 (B) Distributions made to a consortium or teaching general hospital 50 shall equal the product of the total number of clinical research posi- 51 tions submitted by a consortium or teaching general hospital and 52 accepted by the commissioner as meeting the criteria set forth in para- 53 graph (b) of subdivision one of this section, subject to the reduction 54 calculation set forth in clause (C) of this subparagraph, times one 55 hundred ten thousand dollars.A. 3007--A 23 1 (C) If the dollar amount for the total number of clinical research 2 positions in the region calculated pursuant to clause (B) of this 3 subparagraph exceeds the total amount appropriated for purposes of this 4 paragraph, including clinical research positions that continue from and 5 were funded in prior distribution periods, the commissioner shall elimi- 6 nate one-half of the clinical research positions submitted by each 7 consortium or teaching general hospital rounded down to the nearest one 8 position. Such reduction shall be repeated until the dollar amount for 9 the total number of clinical research positions in the region does not 10 exceed the total amount appropriated for purposes of this paragraph. If 11 the repeated reduction of the total number of clinical research posi- 12 tions in the region by one-half does not render a total funding amount 13 that is equal to or less than the total amount reserved for that region 14 within the appropriation, the funding for each clinical research posi- 15 tion in that region shall be reduced proportionally in one thousand 16 dollar increments until the total dollar amount for the total number of 17 clinical research positions in that region does not exceed the total 18 amount reserved for that region within the appropriation. Any reduction 19 in funding will be effective for the duration of the award. No clinical 20 research positions that continue from and were funded in prior distrib- 21 ution periods shall be eliminated or reduced by such methodology. 22 (D) Each consortium or teaching general hospital shall receive its 23 annual distribution amount in accordance with the following: 24 (I) Each consortium or teaching general hospital with a one-year ECRIP 25 award shall receive its annual distribution amount in full upon 26 completion of the requirements set forth in items (I) and (II) of clause 27 (G) of this subparagraph. The requirements set forth in items (IV) and 28 (V) of clause (G) of this subparagraph must be completed by the consor- 29 tium or teaching general hospital in order for the consortium or teach- 30 ing general hospital to be eligible to apply for ECRIP funding in any 31 subsequent funding cycle. 32 (II) Each consortium or teaching general hospital with a two-year 33 ECRIP award shall receive its first annual distribution amount in full 34 upon completion of the requirements set forth in items (I) and (II) of 35 clause (G) of this subparagraph. Each consortium or teaching general 36 hospital will receive its second annual distribution amount in full upon 37 completion of the requirements set forth in item (III) of clause (G) of 38 this subparagraph. The requirements set forth in items (IV) and (V) of 39 clause (G) of this subparagraph must be completed by the consortium or 40 teaching general hospital in order for the consortium or teaching gener- 41 al hospital to be eligible to apply for ECRIP funding in any subsequent 42 funding cycle. 43 (E) Each consortium or teaching general hospital receiving distrib- 44 utions pursuant to this subparagraph shall reserve seventy-five thousand 45 dollars to primarily fund salary and fringe benefits of the clinical 46 research position with the remainder going to fund the development of 47 faculty who are involved in biomedical research, training and clinical 48 care. 49 (F) Undistributed or returned funds available to fund clinical 50 research positions pursuant to this paragraph for a distribution period 51 shall be available to fund clinical research positions in a subsequent 52 distribution period. 53 (G) In order to be eligible for distributions pursuant to this subpar- 54 agraph, each consortium and teaching general hospital shall provide to 55 the commissioner by July first of each distribution period, the follow- 56 ing data and information on a hospital-specific basis. Such data andA. 3007--A 24 1 information shall be certified as to accuracy and completeness by the 2 chief executive officer, chief financial officer or chair of the consor- 3 tium governing body of each consortium or teaching general hospital and 4 shall be maintained by each consortium and teaching general hospital for 5 five years from the date of submission: 6 (I) For each clinical research position, information on the type, 7 scope, training objectives, institutional support, clinical research 8 experience of the sponsor-mentor, plans for submitting research outcomes 9 to peer reviewed journals and at scientific meetings, including a meet- 10 ing sponsored by the department, the name of a principal contact person 11 responsible for tracking the career development of researchers placed in 12 clinical research positions, as defined in paragraph (c) of subdivision 13 one of this section, and who is authorized to certify to the commission- 14 er that all the requirements of the clinical research training objec- 15 tives set forth in this subparagraph shall be met. Such certification 16 shall be provided by July first of each distribution period; 17 (II) For each clinical research position, information on the name, 18 citizenship status, medical education and training, and medical license 19 number of the researcher, if applicable, shall be provided by December 20 thirty-first of the calendar year following the distribution period; 21 (III) Information on the status of the clinical research plan, accom- 22 plishments, changes in research activities, progress, and performance of 23 the researcher shall be provided upon completion of one-half of the 24 award term; 25 (IV) A final report detailing training experiences, accomplishments, 26 activities and performance of the clinical researcher, and data, meth- 27 ods, results and analyses of the clinical research plan shall be 28 provided three months after the clinical research position ends; and 29 (V) Tracking information concerning past researchers, including but 30 not limited to (A) background information, (B) employment history, (C) 31 research status, (D) current research activities, (E) publications and 32 presentations, (F) research support, and (G) any other information 33 necessary to track the researcher; and 34 (VI) Any other data or information required by the commissioner to 35 implement this subparagraph. 36 (H) Notwithstanding any inconsistent provision of this subdivision, 37 for periods on and after April first, two thousand thirteen, ECRIP grant 38 awards shall be made in accordance with rules and regulations promulgat- 39 ed by the commissioner. Such regulations shall, at a minimum: 40 (1) provide that ECRIP grant awards shall be made with the objective 41 of securing federal funding for biomedical research, training clinical 42 researchers, recruiting national leaders as faculty to act as mentors, 43 and training residents and fellows in biomedical research skills; 44 (2) provide that ECRIP grant applicants may include interdisciplinary 45 research teams comprised of teaching general hospitals acting in collab- 46 oration with entities including but not limited to medical centers, 47 hospitals, universities and local health departments; 48 (3) provide that applications for ECRIP grant awards shall be based on 49 such information requested by the commissioner, which shall include but 50 not be limited to hospital-specific data; 51 (4) establish the qualifications for investigators and other staff 52 required for grant projects eligible for ECRIP grant awards; and 53 (5) establish a methodology for the distribution of funds under ECRIP 54 grant awards. 55 (c) Ambulatory care training. Four million nine hundred thousand 56 dollars for the period January first, two thousand eight through Decem-A. 3007--A 25 1 ber thirty-first, two thousand eight, four million nine hundred thousand 2 dollars for the period January first, two thousand nine through December 3 thirty-first, two thousand nine, four million nine hundred thousand 4 dollars for the period January first, two thousand ten through December 5 thirty-first, two thousand ten, one million two hundred twenty-five 6 thousand dollars for the period January first, two thousand eleven 7 through March thirty-first, two thousand eleven, four million three 8 hundred thousand dollars each state fiscal year for the period April 9 first, two thousand eleven through March thirty-first, two thousand 10 fourteen, [and] up to four million sixty thousand dollars each state 11 fiscal year for the period April first, two thousand fourteen through 12 March thirty-first, two thousand seventeen, and within amounts appropri- 13 ated for each state fiscal year for periods on and after April first, 14 two thousand seventeen, shall be set aside and reserved by the commis- 15 sioner from the regional pools established pursuant to subdivision two 16 of this section and shall be available for distributions to sponsoring 17 institutions to be directed to support clinical training of medical 18 students and residents in free-standing ambulatory care settings, 19 including community health centers and private practices. Such funding 20 shall be allocated regionally with two-thirds of the available funding 21 going to New York city and one-third of the available funding going to 22 the rest of the state and shall be distributed to sponsoring insti- 23 tutions in each region pursuant to a request for application or request 24 for proposal process with preference being given to sponsoring insti- 25 tutions which provide training in sites located in underserved rural or 26 inner-city areas and those that include medical students in such train- 27 ing. 28 (d) Physician loan repayment program. One million nine hundred sixty 29 thousand dollars for the period January first, two thousand eight 30 through December thirty-first, two thousand eight, one million nine 31 hundred sixty thousand dollars for the period January first, two thou- 32 sand nine through December thirty-first, two thousand nine, one million 33 nine hundred sixty thousand dollars for the period January first, two 34 thousand ten through December thirty-first, two thousand ten, four 35 hundred ninety thousand dollars for the period January first, two thou- 36 sand eleven through March thirty-first, two thousand eleven, one million 37 seven hundred thousand dollars each state fiscal year for the period 38 April first, two thousand eleven through March thirty-first, two thou- 39 sand fourteen, [and] up to one million seven hundred five thousand 40 dollars each state fiscal year for the period April first, two thousand 41 fourteen through March thirty-first, two thousand seventeen, and within 42 amounts appropriated for each state fiscal year for periods on and after 43 April first, two thousand seventeen, shall be set aside and reserved by 44 the commissioner from the regional pools established pursuant to subdi- 45 vision two of this section and shall be available for purposes of physi- 46 cian loan repayment in accordance with subdivision ten of this section. 47 Notwithstanding any contrary provision of this section, sections one 48 hundred twelve and one hundred sixty-three of the state finance law, or 49 any other contrary provision of law, such funding shall be allocated 50 regionally with one-third of available funds going to New York city and 51 two-thirds of available funds going to the rest of the state and shall 52 be distributed in a manner to be determined by the commissioner without 53 a competitive bid or request for proposal process as follows: 54 (i) Funding shall first be awarded to repay loans of up to twenty-five 55 physicians who train in primary care or specialty tracks in teachingA. 3007--A 26 1 general hospitals, and who enter and remain in primary care or specialty 2 practices in underserved communities, as determined by the commissioner. 3 (ii) After distributions in accordance with subparagraph (i) of this 4 paragraph, all remaining funds shall be awarded to repay loans of physi- 5 cians who enter and remain in primary care or specialty practices in 6 underserved communities, as determined by the commissioner, including 7 but not limited to physicians working in general hospitals, or other 8 health care facilities. 9 (iii) In no case shall less than fifty percent of the funds available 10 pursuant to this paragraph be distributed in accordance with subpara- 11 graphs (i) and (ii) of this paragraph to physicians identified by gener- 12 al hospitals. 13 (iv) In addition to the funds allocated under this paragraph, for the 14 period April first, two thousand fifteen through March thirty-first, two 15 thousand sixteen, two million dollars shall be available for the 16 purposes described in subdivision ten of this section; 17 (v) In addition to the funds allocated under this paragraph, for the 18 period April first, two thousand sixteen through March thirty-first, two 19 thousand seventeen, two million dollars shall be available for the 20 purposes described in subdivision ten of this section; 21 (vi) Notwithstanding any provision of law to the contrary, and subject 22 to the extension of the Health Care Reform Act of 1996, sufficient funds 23 shall be available for the purposes described in subdivision ten of this 24 section in amounts necessary to fund the remaining year commitments for 25 awards made pursuant to subparagraphs (iv) and (v) of this paragraph. 26 (e) Physician practice support. Four million nine hundred thousand 27 dollars for the period January first, two thousand eight through Decem- 28 ber thirty-first, two thousand eight, four million nine hundred thousand 29 dollars annually for the period January first, two thousand nine through 30 December thirty-first, two thousand ten, one million two hundred twen- 31 ty-five thousand dollars for the period January first, two thousand 32 eleven through March thirty-first, two thousand eleven, four million 33 three hundred thousand dollars each state fiscal year for the period 34 April first, two thousand eleven through March thirty-first, two thou- 35 sand fourteen, [and] up to four million three hundred sixty thousand 36 dollars each state fiscal year for the period April first, two thousand 37 fourteen through March thirty-first, two thousand seventeen, and within 38 amounts appropriated for each state fiscal year for periods on and after 39 April first, two thousand seventeen, shall be set aside and reserved by 40 the commissioner from the regional pools established pursuant to subdi- 41 vision two of this section and shall be available for purposes of physi- 42 cian practice support. Notwithstanding any contrary provision of this 43 section, sections one hundred twelve and one hundred sixty-three of the 44 state finance law, or any other contrary provision of law, such funding 45 shall be allocated regionally with one-third of available funds going to 46 New York city and two-thirds of available funds going to the rest of the 47 state and shall be distributed in a manner to be determined by the 48 commissioner without a competitive bid or request for proposal process 49 as follows: 50 (i) Preference in funding shall first be accorded to teaching general 51 hospitals for up to twenty-five awards, to support costs incurred by 52 physicians trained in primary or specialty tracks who thereafter estab- 53 lish or join practices in underserved communities, as determined by the 54 commissioner. 55 (ii) After distributions in accordance with subparagraph (i) of this 56 paragraph, all remaining funds shall be awarded to physicians to supportA. 3007--A 27 1 the cost of establishing or joining practices in underserved communi- 2 ties, as determined by the commissioner, and to hospitals and other 3 health care providers to recruit new physicians to provide services in 4 underserved communities, as determined by the commissioner. 5 (iii) In no case shall less than fifty percent of the funds available 6 pursuant to this paragraph be distributed to general hospitals in 7 accordance with subparagraphs (i) and (ii) of this paragraph. 8 (e-1) Work group. For funding available pursuant to paragraphs (d) and 9 (e) of this subdivision: 10 (i) The department shall appoint a work group from recommendations 11 made by associations representing physicians, general hospitals and 12 other health care facilities to develop a streamlined application proc- 13 ess by June first, two thousand twelve. 14 (ii) Subject to available funding, applications shall be accepted on a 15 continuous basis. The department shall provide technical assistance to 16 applicants to facilitate their completion of applications. An applicant 17 shall be notified in writing by the department within ten days of 18 receipt of an application as to whether the application is complete and 19 if the application is incomplete, what information is outstanding. The 20 department shall act on an application within thirty days of receipt of 21 a complete application. 22 (f) Study on physician workforce. Five hundred ninety thousand dollars 23 annually for the period January first, two thousand eight through Decem- 24 ber thirty-first, two thousand ten, one hundred forty-eight thousand 25 dollars for the period January first, two thousand eleven through March 26 thirty-first, two thousand eleven, five hundred sixteen thousand dollars 27 each state fiscal year for the period April first, two thousand eleven 28 through March thirty-first, two thousand fourteen, [and] up to four 29 hundred eighty-seven thousand dollars each state fiscal year for the 30 period April first, two thousand fourteen through March thirty-first, 31 two thousand seventeen, and within amounts appropriated for each state 32 fiscal year for periods on and after April first, two thousand 33 seventeen, shall be set aside and reserved by the commissioner from the 34 regional pools established pursuant to subdivision two of this section 35 and shall be available to fund a study of physician workforce needs and 36 solutions including, but not limited to, an analysis of residency 37 programs and projected physician workforce and community needs. The 38 commissioner shall enter into agreements with one or more organizations 39 to conduct such study based on a request for proposal process. 40 (g) Diversity in medicine/post-baccalaureate program. Notwithstanding 41 any inconsistent provision of section one hundred twelve or one hundred 42 sixty-three of the state finance law or any other law, one million nine 43 hundred sixty thousand dollars annually for the period January first, 44 two thousand eight through December thirty-first, two thousand ten, four 45 hundred ninety thousand dollars for the period January first, two thou- 46 sand eleven through March thirty-first, two thousand eleven, one million 47 seven hundred thousand dollars each state fiscal year for the period 48 April first, two thousand eleven through March thirty-first, two thou- 49 sand fourteen, [and] up to one million six hundred five thousand dollars 50 each state fiscal year for the period April first, two thousand fourteen 51 through March thirty-first, two thousand seventeen, and within amounts 52 appropriated for each state fiscal year for periods on and after April 53 first, two thousand seventeen, shall be set aside and reserved by the 54 commissioner from the regional pools established pursuant to subdivision 55 two of this section and shall be available for distributions to the 56 Associated Medical Schools of New York to fund its diversity programA. 3007--A 28 1 including existing and new post-baccalaureate programs for minority and 2 economically disadvantaged students and encourage participation from all 3 medical schools in New York. The associated medical schools of New York 4 shall report to the commissioner on an annual basis regarding the use of 5 funds for such purpose in such form and manner as specified by the 6 commissioner. 7 (h) In the event there are undistributed funds within amounts made 8 available for distributions pursuant to this subdivision, such funds may 9 be reallocated and distributed in current or subsequent distribution 10 periods in a manner determined by the commissioner for any purpose set 11 forth in this subdivision. 12 7. Notwithstanding any inconsistent provision of section one hundred 13 twelve or one hundred sixty-three of the state finance law or any other 14 law, up to one million dollars for the period January first, two thou- 15 sand through December thirty-first, two thousand, one million six 16 hundred thousand dollars annually for the periods January first, two 17 thousand one through December thirty-first, two thousand eight, one 18 million five hundred thousand dollars annually for the periods January 19 first, two thousand nine through December thirty-first, two thousand 20 ten, three hundred seventy-five thousand dollars for the period January 21 first, two thousand eleven through March thirty-first, two thousand 22 eleven, one million three hundred twenty thousand dollars each state 23 fiscal year for the period April first, two thousand eleven through 24 March thirty-first, two thousand fourteen, [and] up to two million 25 seventy-seven thousand dollars each state fiscal year for the period 26 April first, two thousand fourteen through March thirty-first, two thou- 27 sand seventeen, and within amounts appropriated for each state fiscal 28 year for periods on and after April first, two thousand seventeen, shall 29 be set aside and reserved by the commissioner from the regional pools 30 established pursuant to subdivision two of this section and shall be 31 available for distributions to the New York state area health education 32 center program for the purpose of expanding community-based training of 33 medical students. In addition, one million dollars annually for the 34 period January first, two thousand eight through December thirty-first, 35 two thousand ten, two hundred fifty thousand dollars for the period 36 January first, two thousand eleven through March thirty-first, two thou- 37 sand eleven, and eight hundred eighty thousand dollars each state fiscal 38 year for the period April first, two thousand eleven through March thir- 39 ty-first, two thousand fourteen, shall be set aside and reserved by the 40 commissioner from the regional pools established pursuant to subdivision 41 two of this section and shall be available for distributions to the New 42 York state area health education center program for the purpose of post- 43 secondary training of health care professionals who will achieve specif- 44 ic program outcomes within the New York state area health education 45 center program. The New York state area health education center program 46 shall report to the commissioner on an annual basis regarding the use of 47 funds for each purpose in such form and manner as specified by the 48 commissioner. 49 § 7. Paragraph (a) of subdivision 12 of section 367-b of the social 50 services law, as amended by section 10 of part B of chapter 60 of the 51 laws of 2014, is amended to read as follows: 52 (a) For the purpose of regulating cash flow for general hospitals, the 53 department shall develop and implement a payment methodology to provide 54 for timely payments for inpatient hospital services eligible for case 55 based payments per discharge based on diagnosis-related groups provided 56 during the period January first, nineteen hundred eighty-eight throughA. 3007--A 29 1 March thirty-first two thousand [seventeen] twenty, by such hospitals 2 which elect to participate in the system. 3 § 8. Subdivision 6 of section 2807-t of the public health law, as 4 amended by section 15 of part B of chapter 60 of the laws of 2014, is 5 amended to read as follows: 6 6. Prospective adjustments. (a) The commissioner shall annually recon- 7 cile the sum of the actual payments made to the commissioner or the 8 commissioner's designee for each region pursuant to section twenty-eight 9 hundred seven-s of this article and pursuant to this section for the 10 prior year with the regional allocation of the gross annual statewide 11 amount specified in subdivision six of section twenty-eight hundred 12 seven-s of this article for such prior year. The difference between the 13 actual amount raised for a region and the regional allocation of the 14 specified gross annual amount for such prior year shall be applied as a 15 prospective adjustment to the regional allocation of the specified gross 16 annual payment amount for such region for the year next following the 17 calculation of the reconciliation. The authorized dollar value of the 18 adjustments shall be the same as if calculated retrospectively. 19 (b) Notwithstanding the provisions of paragraph (a) of this subdivi- 20 sion, for covered lives assessment rate periods on and after January 21 first, two thousand fifteen through December thirty-first, two thousand 22 [seventeen] twenty, for amounts collected in the aggregate in excess of 23 one billion forty-five million dollars on an annual basis, prospective 24 adjustments shall be suspended if the annual reconciliation calculation 25 from the prior year would otherwise result in a decrease to the regional 26 allocation of the specified gross annual payment amount for that region, 27 provided, however, that such suspension shall be lifted upon a determi- 28 nation by the commissioner, in consultation with the director of the 29 budget, that sixty-five million dollars in aggregate collections on an 30 annual basis over and above one billion forty-five million dollars on an 31 annual basis have been reserved and set aside for deposit in the HCRA 32 resources fund. Any amounts collected in the aggregate at or below one 33 billion forty-five million dollars on an annual basis, shall be subject 34 to regional adjustments reconciling any decreases or increases to the 35 regional allocation in accordance with paragraph (a) of this subdivi- 36 sion. 37 § 9. Section 34 of part A3 of chapter 62 of the laws of 2003 amending 38 the general business law and other laws relating to enacting major 39 components necessary to implement the state fiscal plan for the 2003-04 40 state fiscal year, as amended by section 6 of part B of chapter 60 of 41 the laws of 2014, is amended to read as follows: 42 § 34. (1) Notwithstanding any inconsistent provision of law, rule or 43 regulation and effective April 1, 2008 through March 31, [2017] 2020, 44 the commissioner of health is authorized to transfer and the state comp- 45 troller is authorized and directed to receive for deposit to the credit 46 of the department of health's special revenue fund - other, health care 47 reform act (HCRA) resources fund - 061, provider collection monitoring 48 account, within amounts appropriated each year, those funds collected 49 and accumulated pursuant to section 2807-v of the public health law, 50 including income from invested funds, for the purpose of payment for 51 administrative costs of the department of health related to adminis- 52 tration of statutory duties for the collections and distributions 53 authorized by section 2807-v of the public health law. 54 (2) Notwithstanding any inconsistent provision of law, rule or regu- 55 lation and effective April 1, 2008 through March 31, [2017] 2020, the 56 commissioner of health is authorized to transfer and the state comp-A. 3007--A 30 1 troller is authorized and directed to receive for deposit to the credit 2 of the department of health's special revenue fund - other, health care 3 reform act (HCRA) resources fund - 061, provider collection monitoring 4 account, within amounts appropriated each year, those funds collected 5 and accumulated and interest earned through surcharges on payments for 6 health care services pursuant to section 2807-s of the public health law 7 and from assessments pursuant to section 2807-t of the public health law 8 for the purpose of payment for administrative costs of the department of 9 health related to administration of statutory duties for the collections 10 and distributions authorized by sections 2807-s, 2807-t, and 2807-m of 11 the public health law. 12 (3) Notwithstanding any inconsistent provision of law, rule or regu- 13 lation and effective April 1, 2008 through March 31, [2017] 2020, the 14 commissioner of health is authorized to transfer and the comptroller is 15 authorized to deposit, within amounts appropriated each year, those 16 funds authorized for distribution in accordance with the provisions of 17 paragraph (a) of subdivision 1 of section 2807-l of the public health 18 law for the purposes of payment for administrative costs of the depart- 19 ment of health related to the child health insurance plan program 20 authorized pursuant to title 1-A of article 25 of the public health law 21 into the special revenue funds - other, health care reform act (HCRA) 22 resources fund - 061, child health insurance account, established within 23 the department of health. 24 (4) Notwithstanding any inconsistent provision of law, rule or regu- 25 lation and effective April 1, 2008 through March 31, [2017] 2020, the 26 commissioner of health is authorized to transfer and the comptroller is 27 authorized to deposit, within amounts appropriated each year, those 28 funds authorized for distribution in accordance with the provisions of 29 paragraph (e) of subdivision 1 of section 2807-l of the public health 30 law for the purpose of payment for administrative costs of the depart- 31 ment of health related to the health occupation development and work- 32 place demonstration program established pursuant to section 2807-h and 33 the health workforce retraining program established pursuant to section 34 2807-g of the public health law into the special revenue funds - other, 35 health care reform act (HCRA) resources fund - 061, health occupation 36 development and workplace demonstration program account, established 37 within the department of health. 38 (5) Notwithstanding any inconsistent provision of law, rule or regu- 39 lation and effective April 1, 2008 through March 31, [2017] 2020, the 40 commissioner of health is authorized to transfer and the comptroller is 41 authorized to deposit, within amounts appropriated each year, those 42 funds allocated pursuant to paragraph (j) of subdivision 1 of section 43 2807-v of the public health law for the purpose of payment for adminis- 44 trative costs of the department of health related to administration of 45 the state's tobacco control programs and cancer services provided pursu- 46 ant to sections 2807-r and 1399-ii of the public health law into such 47 accounts established within the department of health for such purposes. 48 (6) Notwithstanding any inconsistent provision of law, rule or regu- 49 lation and effective April 1, 2008 through March 31, [2017] 2020, the 50 commissioner of health is authorized to transfer and the comptroller is 51 authorized to deposit, within amounts appropriated each year, the funds 52 authorized for distribution in accordance with the provisions of section 53 2807-l of the public health law for the purposes of payment for adminis- 54 trative costs of the department of health related to the programs funded 55 pursuant to section 2807-l of the public health law into the special 56 revenue funds - other, health care reform act (HCRA) resources fund -A. 3007--A 31 1 061, pilot health insurance account, established within the department 2 of health. 3 (7) Notwithstanding any inconsistent provision of law, rule or regu- 4 lation and effective April 1, 2008 through March 31, [2017] 2020, the 5 commissioner of health is authorized to transfer and the comptroller is 6 authorized to deposit, within amounts appropriated each year, those 7 funds authorized for distribution in accordance with the provisions of 8 subparagraph (ii) of paragraph (f) of subdivision 19 of section 2807-c 9 of the public health law from monies accumulated and interest earned in 10 the bad debt and charity care and capital statewide pools through an 11 assessment charged to general hospitals pursuant to the provisions of 12 subdivision 18 of section 2807-c of the public health law and those 13 funds authorized for distribution in accordance with the provisions of 14 section 2807-l of the public health law for the purposes of payment for 15 administrative costs of the department of health related to programs 16 funded under section 2807-l of the public health law into the special 17 revenue funds - other, health care reform act (HCRA) resources fund - 18 061, primary care initiatives account, established within the department 19 of health. 20 (8) Notwithstanding any inconsistent provision of law, rule or regu- 21 lation and effective April 1, 2008 through March 31, [2017] 2020, the 22 commissioner of health is authorized to transfer and the comptroller is 23 authorized to deposit, within amounts appropriated each year, those 24 funds authorized for distribution in accordance with section 2807-l of 25 the public health law for the purposes of payment for administrative 26 costs of the department of health related to programs funded under 27 section 2807-l of the public health law into the special revenue funds - 28 other, health care reform act (HCRA) resources fund - 061, health care 29 delivery administration account, established within the department of 30 health. 31 (9) Notwithstanding any inconsistent provision of law, rule or regu- 32 lation and effective April 1, 2008 through March 31, [2017] 2020, the 33 commissioner of health is authorized to transfer and the comptroller is 34 authorized to deposit, within amounts appropriated each year, those 35 funds authorized pursuant to sections 2807-d, 3614-a and 3614-b of the 36 public health law and section 367-i of the social services law and for 37 distribution in accordance with the provisions of subdivision 9 of 38 section 2807-j of the public health law for the purpose of payment for 39 administration of statutory duties for the collections and distributions 40 authorized by sections 2807-c, 2807-d, 2807-j, 2807-k, 2807-l, 3614-a 41 and 3614-b of the public health law and section 367-i of the social 42 services law into the special revenue funds - other, health care reform 43 act (HCRA) resources fund - 061, provider collection monitoring account, 44 established within the department of health. 45 § 10. Section 2 of chapter 600 of the laws of 1986 amending the public 46 health law relating to the development of pilot reimbursement programs 47 for ambulatory care services, as amended by section 11 of part B of 48 chapter 60 of the laws of 2014, is amended to read as follows: 49 § 2. This act shall take effect immediately, except that this act 50 shall expire and be of no further force and effect on and after April 1, 51 [2017] 2020; provided, however, that the commissioner of health shall 52 submit a report to the governor and the legislature detailing the objec- 53 tive, impact, design and computation of any pilot reimbursement program 54 established pursuant to this act, on or before March 31, 1994 and annu- 55 ally thereafter. Such report shall include an assessment of the finan-A. 3007--A 32 1 cial impact of such payment system on providers, as well as the impact 2 of such system on access to care. 3 § 11. Paragraph (i) of subdivision (b) of section 1 of chapter 520 of 4 the laws of 1978, relating to providing for a comprehensive survey of 5 health care financing, education and illness prevention and creating 6 councils for the conduct thereof, as amended by section 12 of part B of 7 chapter 60 of the laws of 2014, is amended to read as follows: 8 (i) oversight and evaluation of the inpatient financing system in 9 place for 1988 through March 31, [2017] 2020, and the appropriateness 10 and effectiveness of the bad debt and charity care financing provisions; 11 § 12. Paragraph (l) of subdivision 9 of section 3614 of the public 12 health law, as added by section 13 of part B of chapter 60 of the laws 13 of 2014, is amended to read as follows: 14 (l) for the period April first, two thousand sixteen through March 15 thirty-first, two thousand [seventeen] twenty, up to one hundred million 16 dollars annually. 17 § 13. Paragraph (p) of subdivision 1 of section 367-q of the social 18 services law, as added by section 14 of part B of chapter 60 of the laws 19 of 2014, is amended to read as follows: 20 (p) for the period April first, two thousand sixteen through March 21 thirty-first, two thousand [seventeen] twenty, up to twenty-eight 22 million five hundred thousand dollars annually. 23 § 14. Subdivision 4-c of section 2807-p of the public health law, as 24 amended by section 16 of part B of chapter 60 of the laws of 2014, is 25 amended to read as follows: 26 4-c. Notwithstanding any provision of law to the contrary, the commis- 27 sioner shall make additional payments for uncompensated care to volun- 28 tary non-profit diagnostic and treatment centers that are eligible for 29 distributions under subdivision four of this section in the following 30 amounts: for the period June first, two thousand six through December 31 thirty-first, two thousand six, in the amount of seven million five 32 hundred thousand dollars, for the period January first, two thousand 33 seven through December thirty-first, two thousand seven, seven million 34 five hundred thousand dollars, for the period January first, two thou- 35 sand eight through December thirty-first, two thousand eight, seven 36 million five hundred thousand dollars, for the period January first, two 37 thousand nine through December thirty-first, two thousand nine, fifteen 38 million five hundred thousand dollars, for the period January first, two 39 thousand ten through December thirty-first, two thousand ten, seven 40 million five hundred thousand dollars, for the period January first, two 41 thousand eleven though December thirty-first, two thousand eleven, seven 42 million five hundred thousand dollars, for the period January first, two 43 thousand twelve through December thirty-first, two thousand twelve, 44 seven million five hundred thousand dollars, for the period January 45 first, two thousand thirteen through December thirty-first, two thousand 46 thirteen, seven million five hundred thousand dollars, for the period 47 January first, two thousand fourteen through December thirty-first, two 48 thousand fourteen, seven million five hundred thousand dollars, for the 49 period January first, two thousand fifteen through December thirty- 50 first, two thousand fifteen, seven million five hundred thousand 51 dollars, for the period January first two thousand sixteen through 52 December thirty-first, two thousand sixteen, seven million five hundred 53 thousand dollars, and for the period January first, two thousand [seven-54teen] twenty through March thirty-first, two thousand [seventeen] 55 twenty, in the amount of one million six hundred thousand dollars, 56 provided, however, that for periods on and after January first, twoA. 3007--A 33 1 thousand eight, such additional payments shall be distributed to volun- 2 tary, non-profit diagnostic and treatment centers and to public diagnos- 3 tic and treatment centers in accordance with paragraph (g) of subdivi- 4 sion four of this section. In the event that federal financial 5 participation is available for rate adjustments pursuant to this 6 section, the commissioner shall make such payments as additional adjust- 7 ments to rates of payment for voluntary non-profit diagnostic and treat- 8 ment centers that are eligible for distributions under subdivision 9 four-a of this section in the following amounts: for the period June 10 first, two thousand six through December thirty-first, two thousand six, 11 fifteen million dollars in the aggregate, and for the period January 12 first, two thousand seven through June thirtieth, two thousand seven, 13 seven million five hundred thousand dollars in the aggregate. The 14 amounts allocated pursuant to this paragraph shall be aggregated with 15 and distributed pursuant to the same methodology applicable to the 16 amounts allocated to such diagnostic and treatment centers for such 17 periods pursuant to subdivision four of this section if federal finan- 18 cial participation is not available, or pursuant to subdivision four-a 19 of this section if federal financial participation is available. 20 Notwithstanding section three hundred sixty-eight-a of the social 21 services law, there shall be no local share in a medical assistance 22 payment adjustment under this subdivision. 23 § 15. Subparagraph (ii) of paragraph (c) of subdivision 1 of section 24 2807-l of the public health law, as amended by section 7 of part B of 25 chapter 60 of the laws of 2014, is amended to read as follows: 26 (ii) deposit by the commissioner, within amounts appropriated, and the 27 state comptroller is hereby authorized and directed to receive for 28 deposit to, to the credit of the emergency medical services training 29 account established in section ninety-seven-q of the state finance law 30 or the health care reform act (HCRA) resources fund, whichever is appli- 31 cable, up to sixteen million dollars on an annualized basis for the 32 periods January first, nineteen hundred ninety-seven through December 33 thirty-first, nineteen hundred ninety-nine, up to twenty million dollars 34 for the period January first, two thousand through December thirty- 35 first, two thousand, up to twenty-one million dollars for the period 36 January first, two thousand one through December thirty-first, two thou- 37 sand one, up to twenty-two million dollars for the period January first, 38 two thousand two through December thirty-first, two thousand two, up to 39 twenty-two million five hundred fifty thousand dollars for the period 40 January first, two thousand three through December thirty-first, two 41 thousand three, up to nine million six hundred eighty thousand dollars 42 for the period January first, two thousand four through December thir- 43 ty-first, two thousand four, up to twelve million one hundred thirty 44 thousand dollars for the period January first, two thousand five through 45 December thirty-first, two thousand five, up to twenty-four million two 46 hundred fifty thousand dollars for the period January first, two thou- 47 sand six through December thirty-first, two thousand six, up to twenty 48 million four hundred ninety-two thousand dollars annually for the period 49 January first, two thousand seven through December thirty-first, two 50 thousand ten, up to five million one hundred twenty-three thousand 51 dollars for the period January first, two thousand eleven through March 52 thirty-first, two thousand eleven, up to eighteen million three hundred 53 fifty thousand dollars for the period April first, two thousand eleven 54 through March thirty-first, two thousand twelve, up to eighteen million 55 nine hundred fifty thousand dollars for the period April first, two 56 thousand twelve through March thirty-first, two thousand thirteen, up toA. 3007--A 34 1 nineteen million four hundred nineteen thousand dollars for the period 2 April first, two thousand thirteen through March thirty-first, two thou- 3 sand fourteen, and up to nineteen million six hundred fifty-nine thou- 4 sand seven hundred dollars each state fiscal year for the period of 5 April first, two thousand fourteen through March thirty-first, two thou- 6 sand [seventeen] twenty; 7 § 16. Clause (C) of subparagraph (ii) of paragraph (c) of subdivision 8 1 of section 2807-l of the public health law, as amended by section 7 of 9 part B of chapter 60 of the laws of 2014, is amended to read as follows: 10 (C) for services and expenses, including grants, related to emergency 11 assistance distributions as designated by the commissioner. Notwith- 12 standing section one hundred twelve or one hundred sixty-three of the 13 state finance law or any other contrary provision of law, such distrib- 14 utions shall be limited to providers or programs where, as determined by 15 the commissioner, emergency assistance is vital to protect the life or 16 safety of patients, to ensure the retention of facility caregivers or 17 other staff, or in instances where health facility operations are jeop- 18 ardized, or where the public health is jeopardized or other emergency 19 situations exist, up to three million dollars annually for the period 20 April first, two thousand seven through March thirty-first, two thousand 21 eleven, up to two million nine hundred thousand dollars each state 22 fiscal year for the period April first, two thousand eleven through 23 March thirty-first, two thousand fourteen, and up to two million nine 24 hundred thousand dollars each state fiscal year for the period April 25 first, two thousand fourteen through March thirty-first, two thousand 26 [seventeen] twenty. Upon any distribution of such funds, the commission- 27 er shall immediately notify the chair and ranking minority member of the 28 senate finance committee, the assembly ways and means committee, the 29 senate committee on health, and the assembly committee on health; 30 § 17. Subparagraph (iv) of paragraph (c) of subdivision 1 of section 31 2807-l of the public health law, as amended by section 7 of part B of 32 chapter 60 of the laws of 2014, is amended to read as follows: 33 (iv) distributions by the commissioner related to poison control 34 centers pursuant to subdivision seven of section twenty-five hundred-d 35 of this chapter, up to five million dollars for the period January 36 first, nineteen hundred ninety-seven through December thirty-first, 37 nineteen hundred ninety-seven, up to three million dollars on an annual- 38 ized basis for the periods during the period January first, nineteen 39 hundred ninety-eight through December thirty-first, nineteen hundred 40 ninety-nine, up to five million dollars annually for the periods January 41 first, two thousand through December thirty-first, two thousand two, up 42 to four million six hundred thousand dollars annually for the periods 43 January first, two thousand three through December thirty-first, two 44 thousand four, up to five million one hundred thousand dollars for the 45 period January first, two thousand five through December thirty-first, 46 two thousand six annually, up to five million one hundred thousand 47 dollars annually for the period January first, two thousand seven 48 through December thirty-first, two thousand nine, up to three million 49 six hundred thousand dollars for the period January first, two thousand 50 ten through December thirty-first, two thousand ten, up to seven hundred 51 seventy-five thousand dollars for the period January first, two thousand 52 eleven through March thirty-first, two thousand eleven, up to two 53 million five hundred thousand dollars each state fiscal year for the 54 period April first, two thousand eleven through March thirty-first, two 55 thousand fourteen, and up to three million dollars each state fiscalA. 3007--A 35 1 year for the period April first, two thousand fourteen through March 2 thirty-first, two thousand [seventeen] twenty; and 3 § 18. Subparagraph (i) of paragraph (d) of subdivision 1 of section 4 2807-l of the public health law, as amended by section 7 of part B of 5 chapter 60 of the laws of 2014, is amended to read as follows: 6 (i) An amount of up to twenty million dollars annually for the period 7 January first, two thousand through December thirty-first, two thousand 8 six, up to ten million dollars for the period January first, two thou- 9 sand seven through June thirtieth, two thousand seven, up to twenty 10 million dollars annually for the period January first, two thousand 11 eight through December thirty-first, two thousand ten, up to five 12 million dollars for the period January first, two thousand eleven 13 through March thirty-first, two thousand eleven, up to nineteen million 14 six hundred thousand dollars each state fiscal year for the period April 15 first, two thousand eleven through March thirty-first, two thousand 16 fourteen, and up to nineteen million six hundred thousand dollars each 17 state fiscal year for the period April first, two thousand fourteen 18 through March thirty-first, two thousand [seventeen] twenty, shall be 19 transferred to the health facility restructuring pool established pursu- 20 ant to section twenty-eight hundred fifteen of this article; 21 § 19. Paragraph (e) of subdivision 1 of section 2807-l of the public 22 health law, as amended by section 7 of part B of chapter 60 of the laws 23 of 2014, is amended to read as follows: 24 (e) Funds shall be reserved and accumulated from year to year and 25 shall be available, including income from invested funds, for purposes 26 of distributions to organizations to support the health workforce 27 retraining program established pursuant to section twenty-eight hundred 28 seven-g of this article from the respective health care initiatives 29 pools established for the following periods in the following amounts 30 from the pools or the health care reform act (HCRA) resources fund, 31 whichever is applicable, during the period January first, nineteen 32 hundred ninety-seven through December thirty-first, nineteen hundred 33 ninety-nine, up to fifty million dollars on an annualized basis, up to 34 thirty million dollars for the period January first, two thousand 35 through December thirty-first, two thousand, up to forty million dollars 36 for the period January first, two thousand one through December thirty- 37 first, two thousand one, up to fifty million dollars for the period 38 January first, two thousand two through December thirty-first, two thou- 39 sand two, up to forty-one million one hundred fifty thousand dollars for 40 the period January first, two thousand three through December thirty- 41 first, two thousand three, up to forty-one million one hundred fifty 42 thousand dollars for the period January first, two thousand four through 43 December thirty-first, two thousand four, up to fifty-eight million 44 three hundred sixty thousand dollars for the period January first, two 45 thousand five through December thirty-first, two thousand five, up to 46 fifty-two million three hundred sixty thousand dollars for the period 47 January first, two thousand six through December thirty-first, two thou- 48 sand six, up to thirty-five million four hundred thousand dollars annu- 49 ally for the period January first, two thousand seven through December 50 thirty-first, two thousand ten, up to eight million eight hundred fifty 51 thousand dollars for the period January first, two thousand eleven 52 through March thirty-first, two thousand eleven, up to twenty-eight 53 million four hundred thousand dollars each state fiscal year for the 54 period April first, two thousand eleven through March thirty-first, two 55 thousand fourteen, and up to twenty-six million eight hundred seventeen 56 thousand dollars each state fiscal year for the period April first, twoA. 3007--A 36 1 thousand fourteen through March thirty-first, two thousand [seventeen] 2 twenty, less the amount of funds available for allocations for rate 3 adjustments for workforce training programs for payments by state 4 governmental agencies for inpatient hospital services. 5 § 20. Subparagraph (v) of paragraph (i) of subdivision 1 of section 6 2807-l of the public health law, as amended by section 7 of part B of 7 chapter 60 of the laws of 2014, is amended to read as follows: 8 (v) from the pool or the health care reform act (HCRA) resources fund, 9 whichever is applicable, for the period January first, two thousand four 10 through December thirty-first, two thousand four, up to fifteen million 11 eight hundred fifty thousand dollars, for the period January first, two 12 thousand five through December thirty-first, two thousand five, up to 13 nineteen million two hundred thousand dollars, for the period January 14 first, two thousand six through December thirty-first, two thousand six, 15 up to nineteen million two hundred thousand dollars, for the period 16 January first, two thousand seven through December thirty-first, two 17 thousand ten, up to eighteen million one hundred fifty thousand dollars 18 annually, for the period January first, two thousand eleven through 19 March thirty-first, two thousand eleven, up to four million five hundred 20 thirty-eight thousand dollars, for each state fiscal year for the period 21 April first, two thousand eleven through March thirty-first, two thou- 22 sand fourteen, up to sixteen million two hundred thousand dollars, and 23 up to sixteen million two hundred thousand dollars each state fiscal 24 year for the period April first, two thousand fourteen through March 25 thirty-first, two thousand [seventeen] twenty. 26 § 21. Clause (A) of subparagraph (v) of paragraph (k) of subdivision 1 27 of section 2807-l of the public health law, as amended by section 7 of 28 part B of chapter 60 of the laws of 2014, is amended to read as follows: 29 (A) from the pool or the health care reform act (HCRA) resources fund, 30 whichever is applicable, for the period July first, two thousand three 31 through December thirty-first, two thousand three, up to six million 32 dollars, for the period January first, two thousand four through Decem- 33 ber thirty-first, two thousand six, up to twelve million dollars annual- 34 ly, for the period January first, two thousand seven through December 35 thirty-first, two thousand thirteen, up to forty-eight million dollars 36 annually, for the period January first, two thousand fourteen through 37 March thirty-first, two thousand fourteen, up to twelve million dollars 38 and for the period April first, two thousand fourteen through March 39 thirty-first, two thousand [seventeen] twenty, up to forty-eight million 40 dollars annually; 41 § 22. Subparagraph (v) of paragraph (l) of subdivision 1 of section 42 2807-l of the public health law, as amended by section 7 of part B of 43 chapter 60 of the laws of 2014, is amended to read as follows: 44 (v) from the pool or the health care reform act (HCRA) resources fund, 45 whichever is applicable, for the periods January first, two thousand 46 four through December thirty-first, two thousand four, up to fifty-six 47 million dollars, for the period January first, two thousand five through 48 December thirty-first, two thousand six, up to sixty million dollars 49 annually, for the period January first, two thousand seven through 50 December thirty-first, two thousand ten, up to sixty million dollars 51 annually, for the period January first, two thousand eleven through 52 March thirty-first, two thousand eleven, up to fifteen million dollars, 53 each state fiscal year for the period April first, two thousand eleven 54 through March thirty-first, two thousand fourteen, up to forty-two 55 million three hundred thousand dollars and up to forty-one million fifty 56 thousand dollars each state fiscal year for the period April first, twoA. 3007--A 37 1 thousand fourteen through March thirty-first, two thousand [seventeen] 2 twenty. 3 § 23. Paragraph (b) of subdivision 1 of section 2807-v of the public 4 health law, as amended by section 8 of part B of chapter 60 of the laws 5 of 2014, is amended to read as follows: 6 (b) Funds shall be reserved and accumulated from year to year and 7 shall be available, including income from invested funds, for purposes 8 of payment of audits or audit contracts necessary to determine payor and 9 provider compliance with requirements set forth in sections twenty-eight 10 hundred seven-j, twenty-eight hundred seven-s and twenty-eight hundred 11 seven-t of this article from the tobacco control and insurance initi- 12 atives pool established for the following periods in the following 13 amounts: five million six hundred thousand dollars annually for the 14 periods January first, two thousand through December thirty-first, two 15 thousand two, up to five million dollars for the period January first, 16 two thousand three through December thirty-first, two thousand three, up 17 to five million dollars for the period January first, two thousand four 18 through December thirty-first, two thousand four, up to five million 19 dollars for the period January first, two thousand five through December 20 thirty first, two thousand five, up to five million dollars for the 21 period January first, two thousand six through December thirty-first, 22 two thousand six, up to seven million eight hundred thousand dollars for 23 the period January first, two thousand seven through December thirty- 24 first, two thousand seven, and up to eight million three hundred twen- 25 ty-five thousand dollars for the period January first, two thousand 26 eight through December thirty-first, two thousand eight, up to eight 27 million five hundred thousand dollars for the period January first, two 28 thousand nine through December thirty-first, two thousand nine, up to 29 eight million five hundred thousand dollars for the period January 30 first, two thousand ten through December thirty-first, two thousand ten, 31 up to two million one hundred twenty-five thousand dollars for the peri- 32 od January first, two thousand eleven through March thirty-first, two 33 thousand eleven, up to fourteen million seven hundred thousand dollars 34 each state fiscal year for the period April first, two thousand eleven 35 through March thirty-first, two thousand fourteen, and up to eleven 36 million one hundred thousand dollars each state fiscal year for the 37 period April first, two thousand fourteen through March thirty-first, 38 two thousand [seventeen] twenty. 39 § 24. Subparagraph (xiv) of paragraph (j) of subdivision 1 of section 40 2807-v of the public health law, as amended by section 8 of part B of 41 chapter 60 of the laws of 2014, is amended to read as follows: 42 (xiv) up to six million dollars each state fiscal year for the period 43 April first, two thousand fourteen through March thirty-first, two thou- 44 sand [seventeen] twenty. 45 § 25. Subparagraph (xvi) of paragraph (n) of subdivision 1 of section 46 2807-v of the public health law, as amended by section 8 of part B of 47 chapter 60 of the laws of 2014, is amended to read as follows: 48 (xvi) one hundred twenty-seven million four hundred sixteen thousand 49 dollars each state fiscal year for the period April first, two thousand 50 fourteen through March thirty-first, two thousand [seventeen] twenty. 51 § 26. Subparagraph (xiv) of paragraph (o) of subdivision 1 of section 52 2807-v of the public health law, as amended by section 8 of part B of 53 chapter 60 of the laws of 2014, is amended to read as follows: 54 (xiv) up to ninety-six million six hundred thousand dollars each state 55 fiscal year for the period April first, two thousand fourteen through 56 March thirty-first, two thousand [seventeen] twenty.A. 3007--A 38 1 § 27. Subparagraph (xii) of paragraph (q) of subdivision 1 of section 2 2807-v of the public health law, as amended by section 8 of part B of 3 chapter 60 of the laws of 2014, is amended to read as follows: 4 (xii) up to five million two hundred eighty-eighty thousand dollars 5 each state fiscal year for the period April first, two thousand fourteen 6 through March thirty-first, two thousand [seventeen] twenty. 7 § 28. Subparagraph (xii) of paragraph (w) of subdivision 1 of section 8 2807-v of the public health law, as amended by section 8 of part B of 9 chapter 60 of the laws of 2014, is amended to read as follows: 10 (xii) up to two million one hundred thousand dollars each state fiscal 11 year for the period April first, two thousand fourteen through March 12 thirty-first, two thousand [seventeen] twenty. 13 § 29. Clause (L) of subparagraph (i) of paragraph (bb) of subdivision 14 1 of section 2807-v of the public health law, as amended by section 8 of 15 part B of chapter 60 of the laws of 2014, is amended to read as follows: 16 (L) up to one hundred thirty-six million dollars each state fiscal 17 year for the period March thirty-first, two thousand fourteen through 18 April first, two thousand [seventeen] twenty. 19 § 30. Clause (L) of subparagraph (ii) of paragraph (bb) of subdivision 20 1 of section 2807-v of the public health law, as amended by section 8 of 21 part B of chapter 60 of the laws of 2014, is amended to read as follows: 22 (L) for each state fiscal year within the period April first, two 23 thousand fourteen through March thirty-first, two thousand [seventeen] 24 twenty, three hundred forty million dollars. 25 § 31. Subparagraph (xii) of paragraph (cc) of subdivision 1 of section 26 2807-v of the public health law, as amended by section 8 of part B of 27 chapter 60 of the laws of 2014, is amended to read as follows: 28 (xii) up to eleven million two hundred thousand dollars each state 29 fiscal year for the period April first, two thousand fourteen through 30 March thirty-first, two thousand [seventeen] twenty. 31 § 32. Subparagraph (xii) of paragraph (ff) of subdivision 1 of section 32 2807-v of the public health law, as amended by section 8 of part B of 33 chapter 60 of the laws of 2014, is amended to read as follows: 34 (xii) fifteen million dollars each state fiscal year for the period 35 April first, two thousand fourteen through March thirty-first, two thou- 36 sand [seventeen] twenty. 37 § 33. Subparagraph (xii) of paragraph (ii) of subdivision 1 of section 38 2807-v of the public health law, as amended by section 8 of part B of 39 chapter 60 of the laws of 2014, is amended to read as follows: 40 (xii) eight million five hundred thousand dollars each state fiscal 41 year for the period April first, two thousand fourteen through March 42 thirty-first, two thousand [seventeen] twenty. 43 § 34. Paragraph (aaa) of subdivision 1 of section 2807-v of the public 44 health law, as amended by section 8 of part B of chapter 60 of the laws 45 of 2014, is amended to read as follows: 46 (aaa) Funds shall be reserved and accumulated from year to year and 47 shall be available, including income from invested funds, for services 48 and expenses related to school based health centers, in an amount up to 49 three million five hundred thousand dollars for the period April first, 50 two thousand six through March thirty-first, two thousand seven, up to 51 three million five hundred thousand dollars for the period April first, 52 two thousand seven through March thirty-first, two thousand eight, up to 53 three million five hundred thousand dollars for the period April first, 54 two thousand eight through March thirty-first, two thousand nine, up to 55 three million five hundred thousand dollars for the period April first, 56 two thousand nine through March thirty-first, two thousand ten, up toA. 3007--A 39 1 three million five hundred thousand dollars for the period April first, 2 two thousand ten through March thirty-first, two thousand eleven, up to 3 two million eight hundred thousand dollars each state fiscal year for 4 the period April first, two thousand eleven through March thirty-first, 5 two thousand fourteen, and up to two million six hundred forty-four 6 thousand dollars each state fiscal year for the period April first, two 7 thousand fourteen through March thirty-first, two thousand [seventeen] 8 twenty. The total amount of funds provided herein shall be distributed 9 as grants based on the ratio of each provider's total enrollment for all 10 sites to the total enrollment of all providers. This formula shall be 11 applied to the total amount provided herein. 12 § 35. Subparagraph (viii) of paragraph (ccc) of subdivision 1 of 13 section 2807-v of the public health law, as amended by section 8 of part 14 B of chapter 60 of the laws of 2014, is amended to read as follows: 15 (viii) up to fifty million dollars each state fiscal year for the 16 period April first, two thousand fourteen through March thirty-first, 17 two thousand [seventeen] twenty. 18 § 36. This act shall take effect immediately; provided, however, that: 19 (a) the amendments made to sections 2807-s and 2807-j of the public 20 health law made by sections three, four and five of this act shall not 21 affect the expiration of such sections and shall expire therewith; and 22 (b) the amendments to subdivision 6 of section 2807-t of the public 23 health law made by section eight of this act shall not affect the expi- 24 ration of such section and shall be deemed to expire therewith. 25 PART I 26 Section 1. Section 11 of chapter 884 of the laws of 1990, amending the 27 public health law relating to authorizing bad debt and charity care 28 allowances for certified home health agencies, as amended by section 1 29 of part D of chapter 57 of the laws of 2015, is amended to read as 30 follows: 31 § 11. This act shall take effect immediately and: 32 (a) sections one and three shall expire on December 31, 1996, 33 (b) sections four through ten shall expire on June 30, [2017] 2020, 34 and 35 (c) provided that the amendment to section 2807-b of the public health 36 law by section two of this act shall not affect the expiration of such 37 section 2807-b as otherwise provided by law and shall be deemed to 38 expire therewith. 39 § 2. Subdivision 4-a of section 71 of part C of chapter 60 of the laws 40 of 2014 amending the social services law relating to eliminating pres- 41 criber prevails for brand name drugs with generic equivalent, as amended 42 by section 6 of part D of chapter 59 of the laws of 2016, is amended to 43 read as follows: 44 4-a. section twenty-two of this act shall take effect April 1, 2014, 45 and shall be deemed expired January 1, [2018] 2020; 46 § 3. Subparagraph (vi) of paragraph (b) of subdivision 2 of section 47 2807-d of the public health law, as amended by section 3 of part D of 48 chapter 57 of the laws of 2015, is amended to read as follows: 49 (vi) Notwithstanding any contrary provision of this paragraph or any 50 other provision of law or regulation to the contrary, for residential 51 health care facilities the assessment shall be six percent of each resi- 52 dential health care facility's gross receipts received from all patient 53 care services and other operating income on a cash basis for the period 54 April first, two thousand two through March thirty-first, two thousandA. 3007--A 40 1 three for hospital or health-related services, including adult day 2 services; provided, however, that residential health care facilities' 3 gross receipts attributable to payments received pursuant to title XVIII 4 of the federal social security act (medicare) shall be excluded from the 5 assessment; provided, however, that for all such gross receipts received 6 on or after April first, two thousand three through March thirty-first, 7 two thousand five, such assessment shall be five percent, and further 8 provided that for all such gross receipts received on or after April 9 first, two thousand five through March thirty-first, two thousand nine, 10 and on or after April first, two thousand nine through March thirty- 11 first, two thousand eleven such assessment shall be six percent, and 12 further provided that for all such gross receipts received on or after 13 April first, two thousand eleven through March thirty-first, two thou- 14 sand thirteen such assessment shall be six percent, and further provided 15 that for all such gross receipts received on or after April first, two 16 thousand thirteen through March thirty-first, two thousand fifteen such 17 assessment shall be six percent, and further provided that for all such 18 gross receipts received on or after April first, two thousand fifteen 19 through March thirty-first, two thousand seventeen such assessment shall 20 be six percent, and further provided that for all such gross receipts 21 received on or after April first, two thousand seventeen through March 22 thirty-first, two thousand twenty such assessment shall be six percent. 23 § 4. Subdivision 1 of section 194 of chapter 474 of the laws of 1996, 24 amending the education law and other laws relating to rates for residen- 25 tial health care facilities, as amended by section 5 of part D of chap- 26 ter 57 of the laws of 2015, is amended to read as follows: 27 1. Notwithstanding any inconsistent provision of law or regulation, 28 the trend factors used to project reimbursable operating costs to the 29 rate period for purposes of determining rates of payment pursuant to 30 article 28 of the public health law for residential health care facili- 31 ties for reimbursement of inpatient services provided to patients eligi- 32 ble for payments made by state governmental agencies on and after April 33 1, 1996 through March 31, 1999 and for payments made on and after July 34 1, 1999 through March 31, 2000 and on and after April 1, 2000 through 35 March 31, 2003 and on and after April 1, 2003 through March 31, 2007 and 36 on and after April 1, 2007 through March 31, 2009 and on and after April 37 1, 2009 through March 31, 2011 and on and after April 1, 2011 through 38 March 31, 2013 and on and after April 1, 2013 through March 31, 2015, 39 and on and after April 1, 2015 through March 31, 2017, and on and after 40 April 1, 2017 through March 31, 2020 shall reflect no trend factor 41 projections or adjustments for the period April 1, 1996, through March 42 31, 1997. 43 § 5. Subdivision 1 of section 89-a of part C of chapter 58 of the laws 44 of 2007, amending the social services law and other laws relating to 45 enacting the major components of legislation necessary to implement the 46 health and mental hygiene budget for the 2007-2008 state fiscal year, as 47 amended by section 6 of part D of chapter 57 of the laws of 2015, is 48 amended to read as follows: 49 1. Notwithstanding paragraph (c) of subdivision 10 of section 2807-c 50 of the public health law and section 21 of chapter 1 of the laws of 51 1999, as amended, and any other inconsistent provision of law or regu- 52 lation to the contrary, in determining rates of payments by state 53 governmental agencies effective for services provided beginning April 1, 54 2006, through March 31, 2009, and on and after April 1, 2009 through 55 March 31, 2011, and on and after April 1, 2011 through March 31, 2013, 56 and on and after April 1, 2013 through March 31, 2015, and on and afterA. 3007--A 41 1 April 1, 2015 through March 31, 2017, and on and after April 1, 2017 2 through March 31, 2020 for inpatient and outpatient services provided by 3 general hospitals and for inpatient services and outpatient adult day 4 health care services provided by residential health care facilities 5 pursuant to article 28 of the public health law, the commissioner of 6 health shall apply a trend factor projection of two and twenty-five 7 hundredths percent attributable to the period January 1, 2006 through 8 December 31, 2006, and on and after January 1, 2007, provided, however, 9 that on reconciliation of such trend factor for the period January 1, 10 2006 through December 31, 2006 pursuant to paragraph (c) of subdivision 11 10 of section 2807-c of the public health law, such trend factor shall 12 be the final US Consumer Price Index (CPI) for all urban consumers, as 13 published by the US Department of Labor, Bureau of Labor Statistics less 14 twenty-five hundredths of a percentage point. 15 § 6. Subdivision 5-a of section 246 of chapter 81 of the laws of 1995, 16 amending the public health law and other laws relating to medical 17 reimbursement and welfare reform, as amended by section 11 of part D of 18 chapter 57 of the laws of 2015, is amended to read as follows: 19 5-a. Section sixty-four-a of this act shall be deemed to have been in 20 full force and effect on and after April 1, 1995 through March 31, 1999 21 and on and after July 1, 1999 through March 31, 2000 and on and after 22 April 1, 2000 through March 31, 2003 and on and after April 1, 2003 23 through March 31, 2007, and on and after April 1, 2007 through March 31, 24 2009, and on and after April 1, 2009 through March 31, 2011, and on and 25 after April 1, 2011 through March 31, 2013, and on and after April 1, 26 2013 through March 31, 2015, and on and after April 1, 2015 through 27 March 31, 2017 and on and after April 1, 2017 through March 31, 2020; 28 § 7. Section 64-b of chapter 81 of the laws of 1995, amending the 29 public health law and other laws relating to medical reimbursement and 30 welfare reform, as amended by section 12 of part D of chapter 57 of the 31 laws of 2015, is amended to read as follows: 32 § 64-b. Notwithstanding any inconsistent provision of law, the 33 provisions of subdivision 7 of section 3614 of the public health law, as 34 amended, shall remain and be in full force and effect on April 1, 1995 35 through March 31, 1999 and on July 1, 1999 through March 31, 2000 and on 36 and after April 1, 2000 through March 31, 2003 and on and after April 1, 37 2003 through March 31, 2007, and on and after April 1, 2007 through 38 March 31, 2009, and on and after April 1, 2009 through March 31, 2011, 39 and on and after April 1, 2011 through March 31, 2013, and on and after 40 April 1, 2013 through March 31, 2015, and on and after April 1, 2015 41 through March 31, 2017 and on and after April 1, 2017 through March 31, 42 2020. 43 § 8. Subdivision (a) of section 40 of part B of chapter 109 of the 44 laws of 2010, amending the social services law relating to transporta- 45 tion costs, as amended by section 23 of part D of chapter 57 of the laws 46 of 2015, is amended to read as follows: 47 (a) sections two, three, three-a, three-b, three-c, three-d, three-e 48 and twenty-one of this act shall take effect July 1, 2010; sections 49 fifteen, sixteen, seventeen, eighteen and nineteen of this act shall 50 take effect January 1, 2011; and provided further that section twenty of 51 this act shall be deemed repealed [six] nine years after the date the 52 contract entered into pursuant to section 365-h of the social services 53 law, as amended by section twenty of this act, is executed; provided 54 that the commissioner of health shall notify the legislative bill draft- 55 ing commission upon the execution of the contract entered into pursuant 56 to section 367-h of the social services law in order that the commissionA. 3007--A 42 1 may maintain an accurate and timely effective data base of the official 2 text of the laws of the state of New York in furtherance of effectuating 3 the provisions of section 44 of the legislative law and section 70-b of 4 the public officers law; 5 § 9. Section 4-a of part A of chapter 56 of the laws of 2013 amending 6 chapter 59 of the laws of 2011 amending the public health law and other 7 laws relating to general hospital reimbursement for annual rates relat- 8 ing to the cap on local Medicaid expenditures, as amended by section 29 9 of part D of chapter 57 of the laws of 2015, is amended to read as 10 follows: 11 § 4-a. Notwithstanding paragraph (c) of subdivision 10 of section 12 2807-c of the public health law, section 21 of chapter 1 of the laws of 13 1999, or any other contrary provision of law, in determining rates of 14 payments by state governmental agencies effective for services provided 15 on and after January 1, [2017] 2018 through March 31, [2017] 2018, for 16 inpatient and outpatient services provided by general hospitals, for 17 inpatient services and adult day health care outpatient services 18 provided by residential health care facilities pursuant to article 28 of 19 the public health law, except for residential health care facilities or 20 units of such facilities providing services primarily to children under 21 twenty-one years of age, for home health care services provided pursuant 22 to article 36 of the public health law by certified home health agen- 23 cies, long term home health care programs and AIDS home care programs, 24 and for personal care services provided pursuant to section 365-a of the 25 social services law, the commissioner of health shall apply no greater 26 than zero trend factors attributable to the [2017] 2018 calendar year in 27 accordance with paragraph (c) of subdivision 10 of section 2807-c of the 28 public health law, provided, however, that such no greater than zero 29 trend factors attributable to such [2017] 2018 calendar year shall also 30 be applied to rates of payment provided on and after January 1, [2017] 31 2018 through March 31, [2017] 2018 for personal care services provided 32 in those local social services districts, including New York city, whose 33 rates of payment for such services are established by such local social 34 services districts pursuant to a rate-setting exemption issued by the 35 commissioner of health to such local social services districts in 36 accordance with applicable regulations, and provided further, however, 37 that for rates of payment for assisted living program services provided 38 on and after January 1, [2017] 2018 through March 31, [2017] 2018, such 39 trend factors attributable to the [2017] 2018 calendar year shall be 40 established at no greater than zero percent. 41 § 10. Subdivisions 3 and 5 of section 47 of chapter 2 of the laws of 42 1998, amending the public health law and other laws relating to expand- 43 ing the child health insurance plan, as amended by section 61 of part C 44 of chapter 60 of the laws of 2014, are amended to read as follows: 45 3. section six of this act shall take effect January 1, 1999; 46 provided, however, that subparagraph (iii) of paragraph (c) of subdivi- 47 sion 9 of section 2510 of the public health law, as added by this act, 48 shall expire on July 1, [2017] 2020; 49 5. section twelve of this act shall take effect January 1, 1999; 50 provided, however, paragraphs (g) and (h) of subdivision 2 of section 51 2511 of the public health law, as added by such section, shall expire on 52 July 1, [2017] 2020; 53 § 11. Section 4 of chapter 19 of the laws of 1998, amending the social 54 services law relating to limiting the method of payment for prescription 55 drugs under the medical assistance program, as amended by section 65 of 56 part C of chapter 60 of the laws of 2014, is amended to read as follows:A. 3007--A 43 1 § 4. This act shall take effect 120 days after it shall have become a 2 law and shall expire and be deemed repealed March 31, [2017] 2020. 3 § 12. Paragraph (e-1) of subdivision 12 of section 2808 of the public 4 health law, as amended by section 66 of part C of chapter 60 of the laws 5 of 2014, is amended to read as follows: 6 (e-1) Notwithstanding any inconsistent provision of law or regulation, 7 the commissioner shall provide, in addition to payments established 8 pursuant to this article prior to application of this section, addi- 9 tional payments under the medical assistance program pursuant to title 10 eleven of article five of the social services law for non-state operated 11 public residential health care facilities, including public residential 12 health care facilities located in the county of Nassau, the county of 13 Westchester and the county of Erie, but excluding public residential 14 health care facilities operated by a town or city within a county, in 15 aggregate annual amounts of up to one hundred fifty million dollars in 16 additional payments for the state fiscal year beginning April first, two 17 thousand six and for the state fiscal year beginning April first, two 18 thousand seven and for the state fiscal year beginning April first, two 19 thousand eight and of up to three hundred million dollars in such aggre- 20 gate annual additional payments for the state fiscal year beginning 21 April first, two thousand nine, and for the state fiscal year beginning 22 April first, two thousand ten and for the state fiscal year beginning 23 April first, two thousand eleven, and for the state fiscal years begin- 24 ning April first, two thousand twelve and April first, two thousand 25 thirteen, and of up to five hundred million dollars in such aggregate 26 annual additional payments for the state fiscal years beginning April 27 first, two thousand fourteen, April first, two thousand fifteen and 28 April first, two thousand sixteen and of up to five hundred million 29 dollars in such aggregate annual additional payments for the state 30 fiscal years beginning April first, two thousand seventeen, April first, 31 two thousand eighteen, and April first, two thousand nineteen. The 32 amount allocated to each eligible public residential health care facili- 33 ty for this period shall be computed in accordance with the provisions 34 of paragraph (f) of this subdivision, provided, however, that patient 35 days shall be utilized for such computation reflecting actual reported 36 data for two thousand three and each representative succeeding year as 37 applicable, and provided further, however, that, in consultation with 38 impacted providers, of the funds allocated for distribution in the state 39 fiscal year beginning April first, two thousand thirteen, up to thirty- 40 two million dollars may be allocated in accordance with paragraph (f-1) 41 of this subdivision. 42 § 13. Section 18 of chapter 904 of the laws of 1984, amending the 43 public health law and the social services law relating to encouraging 44 comprehensive health services, as amended by section 67-c of part C of 45 chapter 60 of the laws of 2014, is amended to read as follows: 46 § 18. This act shall take effect immediately, except that sections 47 six, nine, ten and eleven of this act shall take effect on the sixtieth 48 day after it shall have become a law, sections two, three, four and nine 49 of this act shall expire and be of no further force or effect on or 50 after March 31, [2017] 2020, section two of this act shall take effect 51 on April 1, 1985 or seventy-five days following the submission of the 52 report required by section one of this act, whichever is later, and 53 sections eleven and thirteen of this act shall expire and be of no 54 further force or effect on or after March 31, 1988. 55 § 14. Section 4 of part X2 of chapter 62 of the laws of 2003, amending 56 the public health law relating to allowing for the use of funds of theA. 3007--A 44 1 office of professional medical conduct for activities of the patient 2 health information and quality improvement act of 2000, as amended by 3 section 4-b of part A of chapter 57 of the laws of 2015, is amended to 4 read as follows: 5 § 4. This act shall take effect immediately; provided that the 6 provisions of section one of this act shall be deemed to have been in 7 full force and effect on and after April 1, 2003, and shall expire March 8 31, [2017] 2020 when upon such date the provisions of such section shall 9 be deemed repealed. 10 § 15. Subdivision (o) of section 111 of part H of chapter 59 of the 11 laws of 2011, amending the public health law relating to the statewide 12 health information network of New York and the statewide planning and 13 research cooperative system and general powers and duties, as amended by 14 section 28 of part D of chapter 57 of the laws of 2015, is amended to 15 read as follows: 16 (o) sections thirty-eight and thirty-eight-a of this act shall expire 17 and be deemed repealed March 31, [2017] 2020; 18 § 16. Section 32 of part A of chapter 58 of the laws of 2008, amending 19 the elder law and other laws relating to reimbursement to participating 20 provider pharmacies and prescription drug coverage, as amended by 21 section 13 of part A of chapter 57 of the laws of 2015, is amended to 22 read as follows: 23 § 32. This act shall take effect immediately and shall be deemed to 24 have been in full force and effect on and after April 1, 2008; provided 25 however, that sections one, six-a, nineteen, twenty, twenty-four, and 26 twenty-five of this act shall take effect July 1, 2008; provided however 27 that sections sixteen, seventeen and eighteen of this act shall expire 28 April 1, [2017] 2020; provided, however, that the amendments made by 29 section twenty-eight of this act shall take effect on the same date as 30 section 1 of chapter 281 of the laws of 2007 takes effect; provided 31 further, that sections twenty-nine, thirty, and thirty-one of this act 32 shall take effect October 1, 2008; provided further, that section twen- 33 ty-seven of this act shall take effect January 1, 2009; and provided 34 further, that section twenty-seven of this act shall expire and be 35 deemed repealed March 31, [2017] 2020; and provided, further, however, 36 that the amendments to subdivision 1 of section 241 of the education law 37 made by section twenty-nine of this act shall not affect the expiration 38 of such subdivision and shall be deemed to expire therewith and provided 39 that the amendments to section 272 of the public health law made by 40 section thirty of this act shall not affect the repeal of such section 41 and shall be deemed repealed therewith. 42 § 17. Subdivision 3 of section 2999-p of the public health law, as 43 amended by chapter 461 of the laws of 2012, is amended to read as 44 follows: 45 3. The commissioner may issue a certificate of authority to an entity 46 that meets conditions for ACO certification as set forth in regulations 47 made by the commissioner pursuant to section twenty-nine hundred nine- 48 ty-nine-q of this article. The commissioner shall not issue any new 49 certificate under this article after December thirty-first, two thousand 50 [sixteen] twenty. 51 § 18. This act shall take effect immediately and shall be deemed to 52 have been in full force and effect on and after April 1, 2017. 53 PART JA. 3007--A 45 1 Section 1. The insurance law is amended by adding a new article 29 to 2 read as follows: 3 ARTICLE 29 4 PHARMACY BENEFIT MANAGERS 5 Section 2901. Definitions. 6 2902. Acting without a registration. 7 2903. Registration requirements for pharmacy benefit managers. 8 2904. Reporting requirements for pharmacy benefit managers. 9 2905. Acting without a license. 10 2906. Licensing of a pharmacy benefit manager. 11 2907. Revocation or suspension of a registration or license of a 12 pharmacy benefit manager. 13 2908. Penalties for violations. 14 2909. Stay or suspension of superintendent's determination. 15 2910. Revoked registrations. 16 2911. Change of address. 17 2912. Assessment. 18 2913. Applicability of other laws. 19 § 2901. Definitions. For purposes of this article: 20 (a) "Controlling person" is any person or other entity who or which 21 directly or indirectly has the power to direct or cause to be directed 22 the management, control or activities of a pharmacy benefit manager. 23 (b) "Health insurer" means an insurance company authorized in this 24 state to write accident and health insurance, a company organized pursu- 25 ant to article forty-three of this chapter, a municipal cooperative 26 health benefit plan established pursuant to article forty-seven of this 27 chapter, a health maintenance organization certified pursuant to article 28 forty-four of the public health law, an institution of higher education 29 certified pursuant to section one thousand one hundred twenty-four of 30 this chapter, the state public health plan as defined in section two 31 hundred seventy of the public health law, child health plus established 32 pursuant to title one-a of article twenty-five of the public health law, 33 the New York state health insurance plan established under article elev- 34 en of the civil service law, or any other health plan or provider as 35 defined in paragraph (a) of subdivision one of section two hundred 36 eighty-a of the public health law. 37 (c) "Pharmacy benefit management services" means pharmacy benefit 38 management services defined by section two hundred eighty-a of the 39 public health law. 40 (d) "Pharmacy benefit manager" means a person, firm, association, 41 corporation or other entity that, pursuant to a contract with a health 42 insurer, provides pharmacy benefit management services, except that term 43 shall not include: 44 (1) an officer or employee of a registered or licensed pharmacy bene- 45 fit manager; or 46 (2) a health insurer, or any manager thereof, individual or corporate, 47 or any officer, director or regular salaried employee thereof, providing 48 pharmacy benefit management services under a policy or contract issued 49 by the health insurer. 50 § 2902. Acting without a registration. (a) No person, firm, associ- 51 ation, corporation or other entity may act as a pharmacy benefits manag- 52 er on or after the effective date of this section without having a valid 53 registration as a pharmacy benefit manager filed with the superintendent 54 in accordance with this article and the regulations promulgated there- 55 under.A. 3007--A 46 1 (b) Following the effective date of this section, no health insurer 2 may pay any fee or other compensation to any person, firm, association, 3 corporation or other entity for performing pharmacy benefit management 4 services unless the person, firm, association, corporation or other 5 entity is registered as a pharmacy benefit manager in accordance with 6 this article. 7 (c) Any person, firm, association, corporation or other entity that 8 violates this section shall, in addition to any other penalty provided 9 by law, be subject to a civil penalty of the greater of: (1) one thou- 10 sand dollars for the first violation and two thousand five hundred 11 dollars for each subsequent violation; or (2) the aggregate gross 12 receipts attributable to all violations. 13 § 2903. Registration requirements for pharmacy benefit managers. (a) 14 Every pharmacy benefit manager that performs pharmacy benefit management 15 services prior to January first, two thousand nineteen shall register 16 with the superintendent in accordance with this article, in a manner 17 acceptable to the superintendent, and shall pay a fee of one thousand 18 dollars for each year in which the registration shall be valid. Every 19 registration will expire on December thirty-first, two thousand eighteen 20 regardless of when registration was first made. 21 (b) Every pharmacy benefit manager that performs pharmacy benefit 22 management services at any time between January first, two thousand 23 seventeen and June first, two thousand seventeen, shall register and 24 make the registration fee payment required by subsection (a) of this 25 section on or before June first, two thousand seventeen. 26 (c) Every pharmacy benefit manager not subject to subsection (b) of 27 this section shall make the registration and fee payment required by 28 subsection (a) of this section prior to performing pharmacy benefit 29 management services. 30 (d) Each registered pharmacy benefit manager shall renew its registra- 31 tion and make the required fee payment by February first, two thousand 32 eighteen for the two thousand eighteen calendar year. 33 § 2904. Reporting requirements for pharmacy benefit managers. (a)(1) 34 On or before July first of each year, beginning in two thousand seven- 35 teen, every pharmacy benefit manager shall report to the superintendent, 36 in a statement subscribed and affirmed as true under penalties of perju- 37 ry, information requested by the superintendent to enable him or her to 38 carry out his or her duties under this article. Such information may 39 include, without limitation, disclosure of any financial incentive or 40 benefit for promoting the use of certain drugs and other financial 41 arrangements affecting health insurers or their policyholders or 42 insureds. 43 (2) The superintendent also may address to any pharmacy benefit manag- 44 er or its officers any inquiry in relation to its provision of pharmacy 45 benefit management services or any matter connected therewith. Every 46 pharmacy benefit manager or person so addressed shall reply in writing 47 to such inquiry promptly and truthfully, and such reply shall be, if 48 required by the superintendent, subscribed by such individual, or by 49 such officer or officers of the pharmacy benefit manager as the super- 50 intendent shall designate, and affirmed by them as true under the penal- 51 ties of perjury. 52 (3) In addition to the other reports required by this subsection, the 53 superintendent also may require the filing of quarterly or other state- 54 ments, which shall be in such form and shall contain such matters 55 concerning this article as the superintendent shall prescribe.A. 3007--A 47 1 (b) In the event any pharmacy benefit manager or person does not 2 submit the report required by paragraph one or three of subsection (a) 3 of this section or does not provide a good faith response to an inquiry 4 from the superintendent pursuant to paragraph two of subsection (a) of 5 this section within a time period specified by the superintendent of not 6 less than fifteen business days, the superintendent is authorized to 7 levy a civil penalty, after notice and hearing, against such pharmacy 8 benefit manager or person not to exceed five hundred dollars per day for 9 each day beyond the date the report is due or such date specified by the 10 superintendent for response to the inquiry. 11 § 2905. Acting without a license. (a) No person, firm, association, 12 corporation or other entity may act as a pharmacy benefit manager on or 13 after January first, two thousand nineteen without having authority to 14 do so by virtue of a license issued in force pursuant to the provisions 15 of this chapter. 16 (b) No health insurer may pay any fee or other compensation to any 17 person, firm, association, corporation or other entity for performing 18 pharmacy benefit management services unless the person, firm, associ- 19 ation, corporation or other entity is licensed as a pharmacy benefit 20 manager in accordance with this article. 21 (c) Any person, firm, association, corporation or other entity that 22 violates this section shall, in addition to any other penalty provided 23 by law, be subject to a civil penalty of the greater of: (1) one thou- 24 sand dollars for the first violation and two thousand five hundred 25 dollars for each subsequent violation; or (2) the aggregate gross 26 receipts attributable to all violations. 27 § 2906. Licensing of a pharmacy benefit manager. (a) The superinten- 28 dent may issue a pharmacy benefit manager's license to any person, firm, 29 association or corporation who or that has complied with the require- 30 ments of this chapter, including regulations promulgated by the super- 31 intendent consistent with applicable law. The superintendent may estab- 32 lish, by regulation, minimum standards for the issuance of a license to 33 a pharmacy benefit manager. 34 (b) The superintendent may establish, by regulation, minimum standards 35 for the delivery of pharmacy benefit management services. The minimum 36 standards established under this subsection may address: 37 (1) the elimination of conflicts of interest between pharmacy benefit 38 managers and health insurers; 39 (2) the elimination of deceptive practices in connection with the 40 performance of pharmacy benefit management services; 41 (3) the elimination of anti-competitive practices in connection with 42 the performance of pharmacy benefit management services; and 43 (4) the elimination of unfair claims practices in connection with the 44 performance of pharmacy benefit management services. 45 (c)(1) Any such license issued to a firm or association shall author- 46 ize all of the members of the firm or association and any designated 47 employees to act as pharmacy benefit managers under the license, and all 48 such persons shall be named in the application and supplements thereto. 49 (2) Any such license issued to a corporation shall authorize all of 50 the officers and any designated employees and directors thereof to act 51 as pharmacy benefit managers on behalf of such corporation, and all such 52 persons shall be named in the application and supplements thereto. 53 (3) For each business entity, the officer or officers and director or 54 directors named in the application shall be designated responsible for 55 the business entity's compliance with the insurance laws, rules and 56 regulations of this state.A. 3007--A 48 1 (d)(1) Before a pharmacy benefit manager's license shall be issued or 2 renewed, the prospective licensee shall properly file in the office of 3 the superintendent a written application therefor in such form or forms 4 and supplements thereto as the superintendent prescribes, and pay a fee 5 of one thousand dollars for each year for which a license shall be 6 valid. 7 (2) Every pharmacy benefit manager's license issued to a business 8 entity pursuant to this section shall expire on the thirtieth day of 9 November of even-numbered years. Every license issued pursuant to this 10 section to an individual pharmacy benefit manager who was born in an 11 odd-numbered year, shall expire on the individual's birthday in each 12 odd-numbered year. Every license issued pursuant to this section to an 13 individual pharmacy benefit manager who was born in an even-numbered 14 year, shall expire on the individual's birthday in each even-numbered 15 year. Every license issued pursuant to this section may be renewed for 16 the ensuing period of twenty-four months upon the filing of an applica- 17 tion in conformity with this subsection. 18 (e)(1) If an application for a renewal license shall have been filed 19 with the superintendent before October first of the year of expiration, 20 then the license sought to be renewed shall continue in full force and 21 effect either until the issuance by the superintendent of the renewal 22 license applied for or until five days after the superintendent shall 23 have refused to issue such renewal license and given notice of such 24 refusal to the applicant. 25 (2) Before refusing to renew any license pursuant to this section, the 26 superintendent shall notify the applicant of the superintendent's inten- 27 tion so to do and the reasons therefor and shall give such applicant a 28 hearing. 29 (f) The superintendent may refuse to issue a pharmacy benefit manag- 30 er's license if, in the superintendent's judgment, the applicant or any 31 member, principal, officer or director of the applicant, is not trust- 32 worthy and competent to act as or in connection with a pharmacy benefit 33 manager, or has given cause for revocation or suspension of such license 34 by violation of this article, or has failed to comply with any prerequi- 35 site for the issuance of such license. 36 (g) The superintendent may promulgate regulations establishing other- 37 wise lawful methods and procedures for facilitating and verifying 38 compliance with the requirements of this section and such other lawful 39 regulations as necessary. 40 (h) The superintendent may issue a replacement for a currently 41 in-force license that has been lost or destroyed. Before the replacement 42 license shall be issued, there shall be on file in the office of the 43 superintendent a written application for the replacement license, 44 affirming under penalty of perjury that the original license has been 45 lost or destroyed, together with a fee of one hundred dollars. 46 § 2907. Revocation or suspension of a registration or license of a 47 pharmacy benefit manager. (a) The superintendent may refuse to renew, 48 revoke or suspend, for an appropriate period the superintendent deter- 49 mines, the registration or license of any pharmacy benefit manager if, 50 after notice and hearing, there has been a determination that the regis- 51 trant or licensee or any member, principal, officer, director, or 52 controlling person of the registrant or licensee, has: 53 (1) in a material respect, violated any insurance law or regulation, 54 subpoena, or order of the superintendent or of another state's insurance 55 commissioner or any law including but not limited to section two hundredA. 3007--A 49 1 eighty-a of the public health law, in the course of his or her dealings 2 in such capacity; 3 (2) provided materially incorrect, materially misleading, materially 4 incomplete or materially untrue information in the registration or 5 license application; 6 (3) obtained or attempted to obtain a registration or license through 7 fraud or intentional misrepresentation; 8 (4)(A) used fraudulent, coercive or dishonest practices; 9 (B) demonstrated incompetence; 10 (C) demonstrated untrustworthiness; or 11 (D) demonstrated financial irresponsibility in the conduct of business 12 in this state or elsewhere; 13 (5) improperly withheld, misappropriated or converted any monies or 14 properties received in the course of business in this state or else- 15 where; 16 (6) intentionally misrepresented the terms of an actual or proposed 17 insurance contract; 18 (7) admitted or been found to have committed any insurance unfair 19 trade practice or fraud; 20 (8) had a pharmacy benefit manager registration or license, or its 21 equivalent, denied, suspended or revoked in any other state, province, 22 district or territory; 23 (9) failed to pay state income tax or comply with any administrative 24 or court order directing payment of state income tax; or 25 (10) ceased to meet the requirements for registration or licensure 26 under this article. 27 (b) Before revoking or suspending the registration or license of any 28 pharmacy benefit manager pursuant to the provisions of this article, the 29 superintendent shall give notice to the registrant or licensee and to 30 every sub-licensee and shall hold a hearing not less than ten days after 31 the giving of such notice except that a reasonable request for delay of 32 a revocation hearing by a suspended registrant or licensee shall be 33 granted. 34 (c) If a registration or license pursuant to the provisions of this 35 article is revoked or suspended by the superintendent, then the super- 36 intendent shall forthwith give notice to the registrant or licensee. 37 (d) The revocation or suspension of any registration or license pursu- 38 ant to the provisions of this article shall terminate forthwith such 39 registration or license and the authority conferred thereby upon all 40 sub-licensees. 41 (e)(1) No individual, corporation, firm or association whose registra- 42 tion or license as a pharmacy benefit manager subject to subsection (a) 43 of this section has been revoked, and no firm or association of which 44 such individual is a member, and no corporation of which such individual 45 is an officer or director, and no controlling person of the registrant 46 or licensee shall be entitled to obtain any registration or license 47 under the provisions of this chapter for a period of one year after such 48 revocation. In the event that such revocation be judicially reviewed, 49 the one year suspension shall be in effect following a final determi- 50 nation thereof affirming the action of the superintendent in revoking 51 such license and shall include any interim period of suspension. 52 (2) If any such registration or license held by a firm, association or 53 corporation be revoked, no member of such firm or association and no 54 officer or director of such corporation or any controlling person of the 55 registrant or licensee shall be entitled to obtain any registration or 56 license, or to be named as a sub-licensee in any such license, underA. 3007--A 50 1 this chapter for the same period of time, unless the superintendent 2 determines, after notice and hearing which shall be held promptly upon 3 such request, that such member, officer or director was not directly 4 involved in the matter on account of which such registration or license 5 was revoked. 6 (f) If any person aggrieved shall file with the superintendent a veri- 7 fied complaint setting forth facts tending to show sufficient ground for 8 the revocation or suspension of any pharmacy benefit manager's registra- 9 tion or license, then the superintendent shall, after notice and a hear- 10 ing, determine whether such registration or license shall be suspended 11 or revoked. 12 (g) The superintendent shall retain the authority to enforce the 13 provisions of and impose any penalty or remedy authorized by this chap- 14 ter against any person or entity who is in violation of this chapter, 15 even if the person's or entity's registration or license has been 16 surrendered, has expired or has lapsed by operation of law. 17 (h) A registrant or licensee subject to this article shall report to 18 the superintendent any administrative action taken against the regis- 19 trant or licensee in another jurisdiction or by another governmental 20 agency in this state within thirty days of the final disposition of the 21 matter. This report shall include a copy of the order, consent to order 22 or other relevant legal documents documenting such final determination. 23 (i) Within thirty days of the initial pretrial hearing date, a regis- 24 trant or licensee subject to this article shall report to the super- 25 intendent any criminal prosecution of the registrant or licensee taken 26 in any jurisdiction. The report shall include a copy of the initial 27 complaint filed, the order resulting from the hearing and any other 28 relevant legal documents documenting the disposition of the matter. 29 § 2908. Penalties for violations. (a) The superintendent, in lieu of 30 revoking or suspending the registration or license of a registrant or 31 licensee in accordance with the provisions of this article, may in any 32 one proceeding by order, require the registrant or licensee to pay to 33 the people of this state a civil penalty in a sum not exceeding the 34 greater of: (1) one thousand dollars for each offense, not exceeding 35 twenty-five hundred dollars in the aggregate for all offenses; or (2) 36 the aggregate gross receipts attributable to all offenses. 37 (b) Upon the failure of such a registrant or licensee to pay the 38 penalty ordered pursuant to subsection (a) of this section within twenty 39 days after the mailing of the order, postage prepaid, registered, and 40 addressed to the last known place of business of the licensee, unless 41 the order is stayed by the superintendent or an order of a court of 42 competent jurisdiction, the superintendent may revoke the registration 43 or license of the registrant or licensee or may suspend the same for 44 such period as the superintendent determines. 45 § 2909. Stay or suspension of superintendent's determination. The 46 commencement of a proceeding under article seventy-eight of the civil 47 practice law and rules, to review the action of the superintendent in 48 suspending or revoking or refusing to renew any certificate under this 49 article, shall stay such action of the superintendent for a period of 50 thirty days. Such stay may be extended for a longer period by the court, 51 pending the final determination or further order of the court, in 52 accordance with the relevant provisions of the civil practice law and 53 rules. 54 § 2910. Revoked registrations. (a)(1) No person, firm, association, 55 corporation or other entity subject to the provisions of this article 56 whose registration or license under this article has been revoked, orA. 3007--A 51 1 whose registration or license to engage in the business of pharmacy 2 benefit management in any capacity has been revoked by any other state 3 or territory of the United States, shall become employed or appointed by 4 a pharmacy benefit manager as an officer, director, manager, controlling 5 person without the prior written approval of the superintendent, unless 6 such services are for maintenance or are clerical or ministerial in 7 nature. 8 (2) No person, firm, association, corporation or other entity subject 9 to the provisions of this article shall knowingly employ or appoint any 10 person or entity whose registration or license issued under this article 11 has been revoked, or whose registration or license to engage in the 12 business of pharmacy benefit management in any capacity has been revoked 13 by any other state or territory of the United States, as an officer, 14 director, manager or controlling person, without the prior written 15 approval of the superintendent, unless such services are for maintenance 16 or are clerical or ministerial in nature. 17 (3) No corporation or partnership subject to the provisions of this 18 article shall knowingly permit any person whose registration or license 19 issued under this article has been revoked, or whose registration or 20 license to engage in the business of pharmacy benefit management has 21 been revoked by any other state, or territory of the United States, to 22 be a shareholder or have an interest in such corporation or partnership, 23 nor shall any such person become a shareholder or partner in such corpo- 24 ration or partnership, without the prior written approval of the super- 25 intendent. 26 (b) The superintendent may approve the employment, appointment or 27 participation of any such person whose registration or license has been 28 revoked: 29 (1) if the superintendent determines that the duties and responsibil- 30 ities of such person are subject to appropriate supervision and that 31 such duties and responsibilities will not have an adverse effect upon 32 the public, other registrants and licensees, and the registrant or 33 licensee proposing employment or appointment of such person; or 34 (2) if such person has filed an application for reregistration or 35 relicensing pursuant to this article and the application for reregistra- 36 tion or relicensing has not been approved or denied within one hundred 37 twenty days following the filing thereof, unless the superintendent 38 determines within the said time that employment or appointment of such 39 person by a registrant or licensee in the conduct of a pharmacy benefit 40 management business would not be in the public interest. 41 (c) The provisions of this section shall not apply to the ownership of 42 shares of any corporation registered or licensed pursuant to this arti- 43 cle if such shares of such corporation are publicly held and traded in 44 the over-the-counter market or upon any national or regional securities 45 exchange. 46 § 2911. Change of address. A registrant or licensee under this arti- 47 cle shall inform the superintendent by a reasonable means acceptable to 48 the superintendent of a change of address within thirty days of the 49 change. 50 § 2912. Assessment. Pharmacy benefit managers that maintain a regis- 51 tration with the department or are licensed by the department shall be 52 assessed by the superintendent for the operating expenses of the depart- 53 ment that are solely attributable to regulating such pharmacy benefit 54 managers in such proportions as the superintendent shall deem just and 55 reasonable.A. 3007--A 52 1 § 2913. Applicability of other laws. Nothing in this article shall be 2 construed to exempt a pharmacy benefit manager from complying with the 3 provisions of articles twenty-one and forty-nine of this chapter, and 4 section two hundred eighty-a and article forty-nine of the public health 5 law or any other provision of this chapter or the financial services 6 law. 7 § 2. Subsection (b) of section 2402 of the insurance law, as amended 8 by section 71 of part A of chapter 62 of the laws of 2011, is amended to 9 read as follows: 10 (b) "Defined violation" means the commission by a person of an act 11 prohibited by: subsection (a) of section one thousand one hundred two, 12 section one thousand two hundred fourteen, one thousand two hundred 13 seventeen, one thousand two hundred twenty, one thousand three hundred 14 thirteen, subparagraph (B) of paragraph two of subsection (i) of section 15 one thousand three hundred twenty-two, subparagraph (B) of paragraph two 16 of subsection (i) of section one thousand three hundred twenty-four, two 17 thousand one hundred two, two thousand one hundred seventeen, two thou- 18 sand one hundred twenty-two, two thousand one hundred twenty-three, 19 subsection (p) of section two thousand three hundred thirteen, section 20 two thousand three hundred twenty-four, two thousand five hundred two, 21 two thousand five hundred three, two thousand five hundred four, two 22 thousand six hundred one, two thousand six hundred two, two thousand six 23 hundred three, two thousand six hundred four, two thousand six hundred 24 six, two thousand seven hundred three, two thousand nine hundred two, 25 two thousand nine hundred five, three thousand one hundred nine, three 26 thousand two hundred twenty-four-a, three thousand four hundred twenty- 27 nine, three thousand four hundred thirty-three, paragraph seven of 28 subsection (e) of section three thousand four hundred twenty-six, four 29 thousand two hundred twenty-four, four thousand two hundred twenty-five, 30 four thousand two hundred twenty-six, seven thousand eight hundred nine, 31 seven thousand eight hundred ten, seven thousand eight hundred eleven, 32 seven thousand eight hundred thirteen, seven thousand eight hundred 33 fourteen and seven thousand eight hundred fifteen of this chapter; or 34 section 135.60, 135.65, 175.05, 175.45, or 190.20, or article one 35 hundred five of the penal law. 36 § 3. Paragraph 28 of subsection (i) of section 3216 of the insurance 37 law, as amended by chapter 11 of the laws of 2012, is amended to read as 38 follows: 39 (28) (A) Definitions. For the purpose of this paragraph: 40 (1) "Same reimbursement amount" shall mean that any coverage described 41 under subparagraph (B) of this paragraph shall provide the same bench- 42 mark index, including the same average wholesale price, maximum allow- 43 able cost and national prescription drug codes to reimburse all pharma- 44 cies participating in the insurance network regardless of whether a 45 pharmacy is a mail order pharmacy or a non-mail order pharmacy. 46 (2) "Mail order pharmacy" means a pharmacy whose primary business is 47 to receive prescriptions by mail, telefax or through electronic 48 submissions and to dispense medication to patients through the use of 49 the United States mail or other common or contract carrier services and 50 provides any consultation with patients electronically rather than face- 51 to-face. 52 (B) Any policy that provides coverage for prescription drugs shall 53 permit each insured to fill any covered prescription that may be 54 obtained at a network participating mail order or other non-retail phar- 55 macy, at the insured's option, at a network participating non-mail order 56 retail pharmacy provided that the network participating non-mail orderA. 3007--A 53 1 retail pharmacy agrees [in advance, through a contractual network agree-2ment,] to the same reimbursement amount[, as well as the same applicable3terms and conditions,] that the insurer has established for the network 4 participating mail order or other non-retail pharmacy. In such a case, 5 the policy shall not impose a co-payment fee or other condition on any 6 insured who elects to purchase prescription drugs from a network partic- 7 ipating non-mail order retail pharmacy which is not also imposed on 8 insureds electing to purchase drugs from a network participating mail 9 order or other non-retail pharmacy. 10 § 4. Paragraph 18 of subsection (l) of section 3221 of the insurance 11 law, as amended by chapter 11 of the laws of 2012, is amended to read as 12 follows: 13 (18) (A) Definitions. For the purpose of this paragraph: 14 (1) "Same reimbursement amount" shall mean that any coverage described 15 under subparagraph (B) of this paragraph shall provide the same bench- 16 mark index, including the same average wholesale price, maximum allow- 17 able cost and national prescription drug codes to reimburse all pharma- 18 cies participating in the insurance network regardless of whether a 19 pharmacy is a mail order pharmacy or a non-mail order pharmacy. 20 (2) "Mail order pharmacy" means a pharmacy whose primary business is 21 to receive prescriptions by mail, telefax or through electronic 22 submissions and to dispense medication to patients through the use of 23 the United States mail or other common or contract carrier services and 24 provides any consultation with patients electronically rather than face- 25 to-face. 26 (B) Any insurer delivering a group or blanket policy or issuing a 27 group or blanket policy for delivery in this state that provides cover- 28 age for prescription drugs shall permit each insured to fill any covered 29 prescription that may be obtained at a network participating mail order 30 or other non-retail pharmacy, at the insured's option, at a network 31 participating non-mail order retail pharmacy provided that the network 32 participating non-mail order retail pharmacy agrees [in advance, through33a contractual network agreement,] to the same reimbursement amount[, as34well as the same applicable terms and conditions,] that the insurer has 35 established for the network participating mail order or other non-retail 36 pharmacy. In such a case, the policy shall not impose a co-payment fee 37 or other condition on any insured who elects to purchase drugs from a 38 network participating non-mail order retail pharmacy which is not also 39 imposed on insureds electing to purchase drugs from a network partic- 40 ipating mail order or other non-retail pharmacy; provided, however, that 41 the provisions of this section shall not supersede the terms of a 42 collective bargaining agreement or apply to a policy that is the result 43 of a collective bargaining agreement between an employer and a recog- 44 nized or certified employee organization. 45 § 5. Subsection (kk) of section 4303 of the insurance law, as amended 46 by chapter 11 of the laws of 2012 and as relettered by section 55 of 47 part D of chapter 56 of the laws of 2013, is amended to read as follows: 48 (kk) (1) Definitions. For the purpose of this subsection: 49 (A) "Same reimbursement amount" shall mean that any coverage described 50 under paragraph two of this subsection shall provide the same benchmark 51 index, including the same average wholesale price, maximum allowable 52 cost and national prescription drug codes to reimburse all pharmacies 53 participating in the health benefit plan regardless of whether a pharma- 54 cy is a mail order pharmacy or a non-mail order pharmacy. 55 (B) "Mail order pharmacy" means a pharmacy whose primary business is 56 to receive prescriptions by mail, telefax or through electronicA. 3007--A 54 1 submissions and to dispense medication to patients through the use of 2 the United States mail or other common or contract carrier services and 3 provides any consultation with patients electronically rather than face- 4 to-face. 5 (2) Any contract issued by a medical expense indemnity corporation, a 6 hospital service corporation or a health services corporation that 7 provides coverage for prescription drugs shall permit each covered 8 person to fill any covered prescription that may be obtained at a 9 network participating mail order or other non-retail pharmacy, at the 10 covered person's option, at a network participating non-mail order 11 retail pharmacy provided that the network participating non-mail order 12 retail pharmacy agrees [in advance, through a contractual network agree-13ment,] to the same reimbursement amount[, as well as the same applicable14terms and conditions,] that the corporation has established for the 15 network participating mail order or other non-retail pharmacy. In such 16 a case, the contract shall not impose a copayment fee or other condition 17 on any covered person who elects to purchase drugs from a network 18 participating non-mail order retail pharmacy which is not also imposed 19 on covered persons electing to purchase drugs from a network participat- 20 ing mail order or other non-retail pharmacy; provided, however, that the 21 provisions of this section shall not supersede the terms of a collective 22 bargaining agreement or apply to a contract that is the result of a 23 collective bargaining agreement between an employer and a recognized or 24 certified employee organization. 25 § 6. Section 280-a of the public health law is REPEALED and a new 26 section 280-a is added to read as follows: 27 § 280-a. Pharmacy benefit managers. 1. Definitions. As used in this 28 section, the following terms shall have the following meanings: 29 (a) "Health plan or provider" means an entity for which a pharmacy 30 benefit manager provides pharmacy benefit management services including, 31 but not limited to: 32 (i) a health benefit plan or other entity that approves, provides, 33 arranges for, or pays for health care items or services, under which 34 prescription drugs for beneficiaries of the entity are purchased or 35 which provides or arranges reimbursement in whole or in part for the 36 purchase of prescription drugs; or 37 (ii) a health care provider or professional, including a state or 38 local government entity, that acquires prescription drugs to use or 39 dispense in providing health care to patients. 40 (b) "Pharmacy benefit management" means the service provided to a 41 health plan or provider, directly or through another entity, including 42 the procurement of prescription drugs to be dispensed to patients, or 43 the administration or management of prescription drug benefits, includ- 44 ing but not limited to, any of the following: 45 (i) mail service pharmacy; 46 (ii) claims processing, retail network management, or payment of 47 claims to pharmacies for dispensing prescription drugs; 48 (iii) clinical or other formulary or preferred drug list development 49 or management; 50 (iv) negotiation or administration of rebates, discounts, payment 51 differentials, or other incentives, for the inclusion of particular 52 prescription drugs in a particular category or to promote the purchase 53 of particular prescription drugs; 54 (v) patient compliance, therapeutic intervention, or generic substi- 55 tution programs; 56 (vi) disease management;A. 3007--A 55 1 (vii) drug utilization review or prior authorization; 2 (viii) adjudication of appeals or grievances related to prescription 3 drug coverage; 4 (ix) controlling the cost of covered prescription drugs; and 5 (x) contracting with network pharmacies. 6 (c) "Pharmacy benefit manager" means any entity that: (i) performs 7 pharmacy benefit management services for a health plan or provider; or 8 (ii) is registered or licensed as a pharmacy benefit manager under 9 article twenty-nine of the insurance law. 10 (d) "Maximum allowable cost price" means a maximum reimbursement 11 amount set by the pharmacy benefit manager for therapeutically equiv- 12 alent multiple source generic drugs. 13 2. Application of section. This section applies to the providing of 14 pharmacy benefit management services by a pharmacy benefit manager to a 15 particular health plan or provider. 16 3. Duty, accountability and transparency. (a) The pharmacy benefit 17 manager shall have a fiduciary relationship with and obligation to the 18 health plan or provider, and shall perform pharmacy benefit management 19 with care, skill, prudence, diligence, and professionalism. 20 (b) All funds received by the pharmacy benefit manager in relation to 21 providing pharmacy benefit management services shall be received by the 22 pharmacy benefit manager in trust for the health plan or provider and 23 shall be used or distributed only pursuant to the pharmacy benefit 24 manager's contract with the health plan or provider or applicable law; 25 except for any fee or payment expressly provided for in the contract 26 between the pharmacy benefit manager and the health plan or provider to 27 compensate the pharmacy benefit manager for its services. 28 (c) The pharmacy benefit manager shall periodically account to the 29 health plan or provider for all funds received by the pharmacy benefit 30 manager. The health plan or provider shall have access to all financial 31 and utilization information of the pharmacy benefit manager in relation 32 to pharmacy benefit management services provided to the health plan or 33 provider. 34 (d) The pharmacy benefit manager shall disclose in writing to the 35 health plan or provider the terms and conditions of any contract or 36 arrangement between the pharmacy benefit manager and any party relating 37 to pharmacy benefit management services provided to the health plan or 38 provider. 39 (e) The pharmacy benefit manager shall disclose in writing to the 40 health plan or provider any activity, policy, practice, contract or 41 arrangement of the pharmacy benefit manager that directly or indirectly 42 presents any conflict of interest with the pharmacy benefit manager's 43 relationship with or obligation to the health plan or provider. 44 (f) Any information required to be disclosed by a pharmacy benefit 45 manager to a health plan or provider under this section that is reason- 46 ably designated by the pharmacy benefit manager as proprietary or trade 47 secret information shall be kept confidential by the health plan or 48 provider, except as required or permitted by law, including disclosure 49 necessary to prosecute or defend any legitimate legal claim or cause of 50 action. 51 4. Prescriptions. A pharmacy benefit manager may not substitute or 52 cause the substituting of one prescription drug for another in dispens- 53 ing a prescription, or alter or cause the altering of the terms of a 54 prescription, except with the approval of the prescriber or as explicit- 55 ly required or permitted by law.A. 3007--A 56 1 5. A pharmacy benefit manager shall, with respect to contracts between 2 a pharmacy benefit manager and a pharmacy or, alternatively, a pharmacy 3 benefit manager and a pharmacy's contracting agent, such as a pharmacy 4 services administrative organization, include a reasonable process to 5 appeal, investigate and resolve disputes regarding multi-source generic 6 drug pricing. The appeals process shall include the following 7 provisions: 8 (a) the right to appeal by the pharmacy and/or the pharmacy's 9 contracting agent shall be limited to thirty days following the initial 10 claim submitted for payment; 11 (b) a telephone number through which a network pharmacy may contact 12 the pharmacy benefit manager for the purpose of filing an appeal and an 13 electronic mail address of the individual who is responsible for proc- 14 essing appeals; 15 (c) the pharmacy benefit manager shall send an electronic mail message 16 acknowledging receipt of the appeal. The pharmacy benefit manager shall 17 respond in an electronic message to the pharmacy and/or the pharmacy's 18 contracting agent filing the appeal within seven business days indicat- 19 ing its determination. If the appeal is determined to be valid, the 20 maximum allowable cost for the drug shall be adjusted for the appealing 21 pharmacy effective as of the date of the original claim for payment. The 22 pharmacy benefit manager shall require the appealing pharmacy to reverse 23 and rebill the claim in question in order to obtain the corrected 24 reimbursement; 25 (d) if an update to the maximum allowable cost is warranted, the phar- 26 macy benefit manager or covered entity shall adjust the maximum allow- 27 able cost of the drug effective for all similarly situated pharmacies in 28 its network in the state on the date the appeal was determined to be 29 valid; and 30 (e) if an appeal is denied, the pharmacy benefit manager shall identi- 31 fy the national drug code of a therapeutically equivalent drug, as 32 determined by the federal Food and Drug Administration, that is avail- 33 able for purchase by pharmacies in this state from wholesalers regis- 34 tered pursuant to subdivision four of section sixty-eight hundred eight 35 of the education law at a price which is equal to or less than the maxi- 36 mum allowable cost for that drug as determined by the pharmacy benefit 37 manager. 38 § 7. This act shall take effect on the one hundred eightieth day after 39 it shall have become a law; provided, however, that effective immediate- 40 ly, the superintendent of financial services shall repeal, amend, or 41 promulgate any rules and regulations necessary for the implementation of 42 the provisions of this act on its effective date. 43 PART K 44 Section 1. The public health law is amended by adding a new section 45 2825-e to read as follows: 46 § 2825-e. Health care facility transformation program: statewide II. 47 1. A statewide health care facility transformation program is hereby 48 established under the joint administration of the commissioner and the 49 president of the dormitory authority of the state of New York for the 50 purpose of strengthening and protecting continued access to health care 51 services in communities. The program shall provide funding in support of 52 capital projects, debt retirement, working capital or other non-capital 53 projects that facilitate health care transformation activities includ- 54 ing, but not limited to, merger, consolidation, acquisition or otherA. 3007--A 57 1 activities intended to create financially sustainable systems of care or 2 preserve or expand essential health care services. Grants shall not be 3 available to support general operating expenses. The issuance of any 4 bonds or notes hereunder shall be subject to section sixteen hundred 5 eighty-r of the public authorities law and the approval of the director 6 of the division of the budget, and any projects funded through the issu- 7 ance of bonds or notes hereunder shall be approved by the New York state 8 public authorities control board, as required under section fifty-one of 9 the public authorities law. 10 2. The commissioner and the president of the dormitory authority shall 11 enter into an agreement, subject to approval by the director of the 12 budget, and subject to section sixteen hundred eighty-r of the public 13 authorities law, for the purposes of awarding, distributing, and admin- 14 istering the funds made available pursuant to this section. Such funds 15 may be distributed by the commissioner for capital grants to general 16 hospitals, residential health care facilities, diagnostic and treatment 17 centers and clinics licensed pursuant to this chapter or the mental 18 hygiene law, and community-based health care providers as defined in 19 subdivision three of this section for works or purposes that support the 20 purposes set forth in this section. A copy of such agreement, and any 21 amendments thereto, shall be provided to the chair of the senate finance 22 committee, the chair of the assembly ways and means committee, and the 23 director of the division of the budget no later than thirty days prior 24 to the release of a request for applications for funding under this 25 program. Priority shall be given to projects not funded under section 26 twenty-eight hundred twenty-five-d of this article. Projects awarded, in 27 whole or part, under sections twenty-eight hundred twenty-five-a and 28 twenty-eight hundred twenty-five-b of this article shall not be eligible 29 for grants or awards made available under this section. 30 3. Notwithstanding section one hundred sixty-three of the state 31 finance law or any inconsistent provision of law to the contrary, up to 32 seven hundred million dollars of the funds appropriated for this program 33 shall be awarded without a competitive bid or request for proposal proc- 34 ess for grants to health care providers (hereafter "applicants"). 35 Provided, however, that a minimum of one hundred twenty-five million 36 dollars of total awarded funds shall be made to community-based health 37 care providers, which for purposes of this section shall be defined as a 38 diagnostic and treatment center licensed or granted an operating certif- 39 icate under this article; a mental health clinic licensed or granted an 40 operating certificate under article thirty-one of the mental hygiene 41 law; an alcohol and substance abuse treatment clinic licensed or granted 42 an operating certificate under article thirty-two of the mental hygiene 43 law; a primary care provider or a home care provider certified or 44 licensed pursuant to article thirty-six of this chapter. Eligible appli- 45 cants shall be those deemed by the commissioner to be a provider that 46 fulfills or will fulfill a health care need for acute inpatient, outpa- 47 tient, primary, home care or residential health care services in a 48 community. 49 4. In determining awards for eligible applicants under this section, 50 the commissioner shall consider criteria including, but not limited to: 51 (a) The extent to which the proposed project will contribute to the 52 integration of health care services or the long term sustainability of 53 the applicant or preservation of essential health services in the commu- 54 nity or communities served by the applicant;A. 3007--A 58 1 (b) The extent to which the proposed project or purpose is aligned 2 with delivery system reform incentive payment ("DSRIP") program goals 3 and objectives; 4 (c) Consideration of geographic distribution of funds; 5 (d) The relationship between the proposed project and identified 6 community need; 7 (e) The extent to which the applicant has access to alternative 8 financing; 9 (f) The extent that the proposed project furthers the development of 10 primary care and other outpatient services; 11 (g) The extent to which the proposed project benefits Medicaid enrol- 12 lees and uninsured individuals; 13 (h) The extent to which the applicant has engaged the community 14 affected by the proposed project and the manner in which community 15 engagement has shaped such project; and 16 (i) The extent to which the proposed project addresses potential risk 17 to patient safety and welfare. 18 5. Disbursement of awards made pursuant to this section shall be 19 conditioned on the awardee achieving certain process and performance 20 metrics and milestones as determined in the sole discretion of the 21 commissioner. Such metrics and milestones shall be structured to ensure 22 that the goals of the project are achieved, and such metrics and mile- 23 stones shall be included in grant disbursement agreements or other 24 contractual documents as required by the commissioner. 25 6. The department shall provide a report on a quarterly basis to the 26 chairs of the senate finance, assembly ways and means, and senate health 27 and assembly health committees. Such reports shall be submitted no later 28 than sixty days after the close of the quarter, and shall include, for 29 each award, the name of the applicant, a description of the project or 30 purpose, the amount of the award, disbursement date, and status of 31 achievement of process and performance metrics and milestones pursuant 32 to subdivision five of this section. 33 § 2. This act shall take effect immediately and shall be deemed to 34 have been in full force and effect on and after April 1, 2017. 35 PART L 36 Intentionally Omitted 37 PART M 38 Section 1. This act shall be known and may be cited as the "Emerging 39 Contaminant Monitoring Act." 40 § 2. The public health law is amended by adding a new section 1112 to 41 read as follows: 42 § 1112. Emerging contaminant monitoring. 1. Industry and modern tech- 43 nology have created thousands of new chemicals that would not otherwise 44 exist in nature. Although some of these chemicals have proven benefits, 45 the effect of many such chemicals on human health is unknown or not 46 fully understood. Furthermore, with the advance of science and technolo- 47 gy, public health scientists and experts are able to identify naturally 48 occurring contaminants that pose previously unknown hazards to human 49 health. Where these chemicals or contaminants, collectively referred to 50 as "emerging contaminants," enter drinking water supplies, they can 51 present unknown but potentially serious risks to public health. New 52 Yorkers served by public water supplies have the right to know whenA. 3007--A 59 1 potentially hazardous substances contaminate their drinking water and 2 the department must be equipped to monitor and protect the public from 3 these emerging contaminants. 4 2. a. "Emerging contaminants" shall mean any physical, chemical, 5 microbiological or radiological substance listed as an emerging contam- 6 inant pursuant to subdivision three of this section. 7 b. "Notification level" shall mean the concentration level of an 8 emerging contaminant in drinking water that the commissioner has deter- 9 mined, based on available scientific information, to be linked to 10 adverse health outcomes including both physical and behavioral health, 11 and warrants public notification pursuant to this section. 12 c. "Covered public water system" shall mean: (i) a public water 13 system that serves at least five service connections used by year-round 14 residents or regularly serves at least twenty-five year-round residents; 15 (ii) a public water system that regularly serves at least twenty-five of 16 the same people, four hours or more per day, for four or more days per 17 week, for twenty-six or more weeks per year; or (iii) any other substan- 18 tially similar water system as determined by the commissioner. 19 3. The commissioner shall promulgate regulations to identify and list 20 substances as emerging contaminants. In determining what substances 21 shall be identified as emerging contaminants the commissioner shall, at 22 a minimum, examine substances that require regulation or monitoring when 23 present in drinking water in other jurisdictions outside the state of 24 New York; the United States environmental protection agency's human 25 health benchmarks for pesticides; and, substances found at sites in 26 remedial programs located inside and outside the state of New York, 27 including but not limited to inactive hazardous waste sites. The commis- 28 sioner shall, at a minimum, include the following chemicals to be iden- 29 tified as emerging contaminants: 1,4-dioxane; vanadium; strontium; chro- 30 mium-6; chlorate; perfluorooctanesulfonic acid; and perfluorooctanoic 31 acid. Additional substances to be identified as emerging contaminants 32 shall meet the following criteria: 33 a. are not subject to any other substance-specific drinking water 34 regulation of the department that establishes a maximum contaminant 35 level, or other legally established threshold concentration used by the 36 department that requires public notification or remedial action; 37 b. are known or anticipated to occur in public water systems; and 38 c. because of their quantity, concentration, or physical, chemical or 39 infectious characteristics, may cause physical injury or illness, or 40 otherwise pose a potential hazard to human health when present in drink- 41 ing water. 42 4. Every covered public water system shall test drinking water for the 43 presence of emerging contaminants in the state and unregulated contam- 44 inants monitored under the federal Safe Drinking Water Act as amended 45 from time to time, at least once every three years in a manner and time- 46 frame established by the department through regulation. 47 5. Every test conducted in accordance with this section shall be 48 conducted by a laboratory certified by the department pursuant to 49 section five hundred two of this chapter. Laboratories shall submit such 50 results to the department, any other health department that the covered 51 public water system is located in, and to the covered public water 52 system electronically in the manner prescribed by the commissioner. 53 6. The commissioner shall promulgate regulations establishing notifi- 54 cation levels for any emerging contaminant listed pursuant to subdivi- 55 sion three of this section. Any notification level established pursuant 56 to this subdivision shall be equal to or lower than any federally estab-A. 3007--A 60 1 lished concentration level that would require public notification, or 2 remedial action for that substance. 3 7. Whenever one or more emerging contaminants is present in drinking 4 water at concentrations at or above a notification level established 5 pursuant to this section the covered public water system shall notify 6 all owners of real property served by the covered public water system in 7 a time and manner to be prescribed by the department. Such public 8 notification shall occur within thirty days. The covered public water 9 system shall consult with the department within twenty-four hours of 10 being notified of the presence of an emerging contaminant. The depart- 11 ment may reduce the timeframe for public notification from thirty days 12 if it is determined that the public's interest would be best served by 13 such reduction. The commissioner may directly notify such owners of real 14 property if it is determined that the public's interest would be best 15 served by such notification, or if the commissioner determines that the 16 covered public water system is not acting, or cannot act in a timely 17 manner. 18 8. The commissioner may require that the covered public water system 19 take such actions as may be appropriate to reduce exposure to emerging 20 contaminants. The commissioner shall work in consultation with the 21 commissioner of the department of environmental conservation to develop 22 educational materials, which shall be made available to the covered 23 public water system and the general public, relating to methodologies 24 for reducing exposure to emerging contaminants and potential actions 25 that may be taken to remediate emerging contaminants. The commissioner 26 shall also provide the covered public water system with information 27 relating to potential funding sources provided by the state and federal 28 government for remedial activities, and to reduce the exposure to emerg- 29 ing contaminants. Whenever the commissioner of health has required a 30 public water system to take action to reduce exposure to emerging 31 contaminants, the department shall undertake all reasonable and neces- 32 sary measures to ensure that safe drinking water is expeditiously made 33 available to all people in any area of the state in which emerging 34 contaminants are known to be present. Such area shall include, at a 35 minimum, all properties served by the covered public water system and 36 any land and any surface or underground water sources identified by the 37 department or department of environmental conservation as causing or 38 contributing to the contamination. The department's measures may include 39 installation of onsite water supplies, or the provision of alternative 40 water supply sources. 41 9. Any owner of real property, including any owner's agent, to whom a 42 covered public water system or the department has provided notification 43 of the exceedance of a notification level established pursuant to subdi- 44 vision six of this section, shall take all reasonable and necessary 45 steps to provide, within ten days, any tenants with copies of the 46 notification provided by the covered public water system, or the commis- 47 sioner. 48 10. The commissioner shall promulgate regulations pursuant to which 49 the department may provide financial assistance for compliance with the 50 testing requirements of this section, to any covered public water system 51 upon a showing that the costs associated with testing drinking water in 52 compliance with this section would impose an unreasonable financial 53 hardship. 54 11. The commissioner of health shall review substances that have been 55 identified as emerging contaminants pursuant to this section and deter- 56 mine if the department should establish a maximum contaminant level forA. 3007--A 61 1 the substance. Such a review shall occur, at a minimum, once every three 2 years. 3 § 3. Section 502 of the public health law is amended by adding a new 4 subdivision 10 to read as follows: 5 10. The department may require an environmental laboratory to report 6 laboratory test results to the department, or to any other health 7 department in an electronic manner prescribed by the department. 8 § 4. This act shall take effect immediately. 9 PART N 10 Section 1. This act shall be known and may be cited as the "residen- 11 tial well testing act". 12 § 2. The public health law is amended by adding a new section 1111 to 13 read as follows: 14 § 1111. Testing of individual onsite water supply systems. 1. The 15 commissioner shall promulgate regulations establishing standards for the 16 testing of new or existing individual onsite water supply systems that 17 provide potable water for humans. Such regulations shall specify the 18 manner of testing and the amount of time such results shall be valid. 19 Individual onsite water supplies shall be tested for character and 20 contaminants commonly found in such water supplies, including but not 21 limited to: bacteria (total coliform); sodium; nitrites; nitrates; 22 iron; manganese; iron plus manganese; pH; lead; 1,4-dioxane; vanadium; 23 strontium; chromium-6; chlorate; perfluorooctanesulfonic acid; perfluo- 24 rooctanoic acid; and other emerging contaminants as such term is defined 25 in section one thousand one hundred twelve of this title. Such regu- 26 lations may require additional testing, limit testing or exclude from 27 testing a characteristic or contaminant on a county, regional or local 28 basis if the commissioner determines that such characteristic or contam- 29 inant is significant or not significant in that area. 30 2. a. For the purposes of this section residential real property shall 31 include real property used or occupied, or intended to be used or occu- 32 pied, wholly or partly, as the home or residence of one or more persons, 33 but shall not refer to unimproved real property upon which such dwell- 34 ings are to be constructed, condominium units or cooperative apartments, 35 or property in a homeowners' association that is not owned in fee simple 36 by the seller. Any real estate purchase contract for the sale of resi- 37 dential real property, which is served by an individual onsite water 38 supply system, shall include a provision requiring, prior to and as a 39 condition of sale, the testing of such individual onsite water supply 40 system in a manner that meets or exceeds the standards prescribed pursu- 41 ant to this section. This section shall not apply to covered public 42 water systems, as defined by section one thousand one hundred twelve of 43 this title. 44 b. Within one year after the effective date of this section, and at 45 least once every five years thereafter, the lessor of any residential 46 real property which is served by an individual onsite water supply 47 system shall test such water supply in accordance with this section for 48 at least the characteristics and contaminants required pursuant to this 49 section. Within thirty days after the receipt of validated test results, 50 the lessor shall provide a written copy thereof to each current tenant 51 of a rental unit on the property. The lessor shall also provide a writ- 52 ten copy of the most recent validated test results to a prospective 53 tenant prior to the signing of the lease or entering into an agreement 54 for the rental of a residential unit on the property, or to any formerA. 3007--A 62 1 tenant upon request. The department or the department's designee shall 2 have the authority to request and receive such test results from the 3 lessor. 4 3. Every test conducted in accordance with this section shall be 5 conducted by a laboratory certified by the department pursuant to 6 section five hundred two of this chapter. Any test results provided by 7 the laboratory, pursuant to this section, shall include the maximum 8 contaminant levels or other threshold concentrations, if any, prescribed 9 by the department for each characteristic or contaminant tested. Labora- 10 tories shall submit such results to the department electronically in the 11 manner prescribed pursuant to section five hundred two of this chapter. 12 4. The commissioner shall promulgate regulations pursuant to which the 13 department may provide financial assistance to owners of residential 14 property served by an individual onsite water supply system, upon a 15 showing that the costs associated with testing drinking water in compli- 16 ance with this section would impose an unreasonable financial hardship. 17 5. Nothing contained in this section shall prohibit or limit the test- 18 ing of individual onsite water supply systems pursuant to any other 19 statutory or regulatory authority. 20 § 3. Section 502 of the public health law is amended by adding a new 21 subdivision 10 to read as follows: 22 10. The department may require an environmental laboratory to report 23 laboratory test results to the department, or to any other health 24 department in an electronic manner prescribed by the department. 25 § 4. The real property law is amended by adding a new section 468 to 26 read as follows: 27 § 468. Individual onsite water supply testing requirements. 1. Every 28 real estate purchase contract for the sale of residential real property, 29 as defined by section one thousand one hundred eleven of the public 30 health law, which is served by an individual onsite water supply system, 31 shall include a provision requiring as a condition of sale, the testing 32 of such water supply for at least the standards prescribed pursuant to 33 section eleven hundred eleven of the public health law. This section 34 shall not apply to property that is served by a public water system, as 35 defined in regulations promulgated by the commissioner. 36 2. Closing of title on the sale of such real property shall not occur 37 unless both the buyer and the seller have received and reviewed a copy 38 of the water test results. At closing, the buyer and seller both shall 39 certify in writing that they have received and reviewed the water test 40 results. 41 3. The requirements of this section may not be waived. 42 § 5. Subdivision 3 of section 15-1525 of the environmental conserva- 43 tion law, as amended by section 2 of part F of chapter 59 of the laws of 44 2006, is amended to read as follows: 45 3. The certificate of registration shall require that, before the 46 commencement of drilling of any well or wells, the water well driller 47 shall file a preliminary notice with the department; it shall also 48 provide that upon the completion of the drilling of any water well or 49 water wells, a completion report be filed with the department, giving 50 the log of the well, the size and depth thereof, the capacity of the 51 pump or pumps attached or to be attached thereto, the laboratory results 52 of the water sample tested in accordance with section eleven hundred 53 eleven of the public health law, and such other information pertaining 54 to the withdrawal of water and operation of such water well or water 55 wells as the department by its rules and regulations may require. The 56 water well driller shall provide a copy of such completion report to theA. 3007--A 63 1 water well owner and the department of health and department of environ- 2 mental conservation. The number of the certificate of registration must 3 be displayed on the well drilling machinery of the registrant. The 4 certificate of registration shall also contain a notice to the certif- 5 icate holder that the business activities authorized by such certificate 6 are subject to the provisions of article thirty-six-A of the general 7 business law. The fee for such certificate of registration shall be ten 8 dollars annually. The commissioner shall promulgate a water well 9 completion report form which shall be utilized by all water well dril- 10 lers in satisfying the requirements of this section and any other 11 provision of state or local law which requires the submission of a water 12 well completion report or water well log. 13 § 5-a. Subdivision 1 of section 3-0315 of the environmental conserva- 14 tion law, as added by section 1 of part C of chapter 1 of the laws of 15 2003, is amended to read as follows: 16 1. The department shall create or modify an existing geographic infor- 17 mation system, and maintain such system for purposes including, but not 18 limited to, incorporating information from remedial programs under its 19 jurisdiction, and shall also incorporate information from the source 20 water assessment program collected by the department of health, informa- 21 tion collected pursuant to section eleven hundred eleven of the public 22 health law, data from annual water supply statements prepared pursuant 23 to section eleven hundred fifty-one of the public health law, informa- 24 tion from the database pursuant to title fourteen of article twenty-sev- 25 en of this chapter, and any other existing data regarding soil and 26 groundwater contamination currently gathered by the department, as well 27 as data on contamination that is readily available from the United 28 States geological survey and other sources determined appropriate by the 29 department. 30 § 6. This act shall take effect on the one hundred eightieth day after 31 it shall have become a law; provided, however, that effective immediate- 32 ly, the commissioner of health and commissioner of environmental conser- 33 vation shall be authorized to promulgate any and all rules and regu- 34 lations necessary to implement the provisions of this act on its 35 effective date. 36 PART O 37 Intentionally Omitted 38 PART P 39 Section 1. Section 48-a of part A of chapter 56 of the laws of 2013 40 amending chapter 59 of the laws of 2011 amending the public health law 41 and other laws relating to general hospital reimbursement for annual 42 rates relating to the cap on local Medicaid expenditures, as amended by 43 section 29 of part B of chapter 59 of the laws of 2016, is amended to 44 read as follows: 45 § 48-a. 1. Notwithstanding any contrary provision of law, the commis- 46 sioners of the office of alcoholism and substance abuse services and the 47 office of mental health are authorized, subject to the approval of the 48 director of the budget, to transfer to the commissioner of health state 49 funds to be utilized as the state share for the purpose of increasing 50 payments under the medicaid program to managed care organizations 51 licensed under article 44 of the public health law or under article 43 52 of the insurance law. Such managed care organizations shall utilize suchA. 3007--A 64 1 funds for the purpose of reimbursing providers licensed pursuant to 2 article 28 of the public health law or article 31 or 32 of the mental 3 hygiene law for ambulatory behavioral health services, as determined by 4 the commissioner of health, in consultation with the commissioner of 5 alcoholism and substance abuse services and the commissioner of the 6 office of mental health, provided to medicaid [eligible] enrolled outpa- 7 tients and for all other behavioral health services except inpatient 8 included in New York state's Medicaid redesign waiver approved by the 9 centers for Medicare and Medicaid services (CMS). Such reimbursement 10 shall be in the form of fees for such services which are equivalent to 11 the payments established for such services under the ambulatory patient 12 group (APG) rate-setting methodology as utilized by the department of 13 health, the office of alcoholism and substance abuse services, or the 14 office of mental health for rate-setting purposes or any such other fees 15 pursuant to the Medicaid state plan or otherwise approved by CMS in the 16 Medicaid redesign waiver; provided, however, that the increase to such 17 fees that shall result from the provisions of this section shall not, in 18 the aggregate and as determined by the commissioner of health, in 19 consultation with the commissioner of alcoholism and substance abuse 20 services and the commissioner of the office of mental health, be greater 21 than the increased funds made available pursuant to this section. The 22 increase of such ambulatory behavioral health fees to providers avail- 23 able under this section shall be for all rate periods on and after the 24 effective date of section [1] 29 of part [C] B of chapter [57] 59 of the 25 laws of [2015] 2016 through March 31, [2018] 2021 for patients in the 26 city of New York, for all rate periods on and after the effective date 27 of section [1] 29 of part [C] B of chapter [57] 59 of the laws of [2015] 28 2016 through [June 30, 2018] March 31, 2021 for patients outside the 29 city of New York, and for all rate periods on and after the effective 30 date of such chapter through [June 30, 2018] March 31, 2021 for all 31 services provided to persons under the age of twenty-one; provided, 32 however, [eligible providers may work with managed care plans to achieve33quality and efficiency objectives and engage in shared savings] the 34 commissioner of health, in consultation with the commissioner of alco- 35 holism and substance abuse services and the commissioner of mental 36 health, may require, as a condition of approval of such ambulatory 37 behavioral health fees, that aggregate managed care expenditures to 38 eligible providers meet the following value based payment metrics for 39 the following periods: (i) for the period from April 1, 2018 through 40 March 31, 2019, at least ten percent of such managed care expenditures 41 are paid through level one value based payment arrangements, pursuant to 42 the terms and conditions of the delivery system reform incentive payment 43 program waiver approved by the centers for Medicare and Medicaid 44 services (ii) for the period April 1, 2019 through March 31, 2020, at 45 least fifty percent of such managed care expenditures are paid through 46 level one value based payment arrangements and at least fifteen percent 47 are paid through level two value based payment arrangements, pursuant to 48 the terms and conditions of the delivery system reform incentive payment 49 program waiver approved by the centers for Medicare and Medicaid 50 services and (iii) for the period April 1, 2020 through March 31, 2021, 51 at least eighty percent of such managed care expenditures are paid 52 through level one value based payment arrangements and at least thirty- 53 five percent are paid through level two value based payment arrange- 54 ments, pursuant to the terms and conditions of the delivery system 55 reform incentive payment program waiver approved by the centers for 56 Medicare and Medicaid services. The commissioner of health shall, inA. 3007--A 65 1 consultation with the commissioner of alcoholism and substance abuse 2 services and the commissioner of the office of mental health, waive such 3 conditions if a sufficient number of providers, as determined by the 4 commissioner, suffer a financial hardship as a consequence of such value 5 based payment arrangements, or if he or she shall determine that such 6 value based payment arrangements significantly threaten individuals' 7 access to ambulatory behavioral health services. Such waiver may be 8 applied on a provider specific or industry wide basis. Nothing in this 9 section shall prohibit managed care organizations and providers from 10 negotiating different rates and methods of payment during such periods 11 described above, subject to the approval of the department of health. 12 The department of health shall consult with the office of alcoholism and 13 substance abuse services and the office of mental health in determining 14 whether such alternative rates shall be approved. The commissioner of 15 health may, in consultation with the commissioner of alcoholism and 16 substance abuse services and the commissioner of the office of mental 17 health, promulgate regulations, including emergency regulations promul- 18 gated prior to October 1, 2015 to establish rates for ambulatory behav- 19 ioral health services, as are necessary to implement the provisions of 20 this section. Rates promulgated under this section shall be included in 21 the report required under section 45-c of part A of this chapter. 22 2. Notwithstanding any contrary provision of law, the fees paid by 23 managed care organizations licensed under article 44 of the public 24 health law or under article 43 of the insurance law, to providers 25 licensed pursuant to article 28 of the public health law or article 31 26 or 32 of the mental hygiene law, for ambulatory behavioral health 27 services provided to patients enrolled in the child health insurance 28 program pursuant to title one-A of article 25 of the public health law, 29 shall be in the form of fees for such services which are equivalent to 30 the payments established for such services under the ambulatory patient 31 group (APG) rate-setting methodology or any such other fees established 32 pursuant to the Medicaid state plan. The commissioner of health shall 33 consult with the commissioner of alcoholism and substance abuse services 34 and the commissioner of the office of mental health in determining such 35 services and establishing such fees. Such ambulatory behavioral health 36 fees to providers available under this section shall be for all rate 37 periods on and after the effective date of this chapter through [June3830, 2018] March 31, 2021, provided, however, that managed care organiza- 39 tions and providers may negotiate different rates and methods of payment 40 during such periods described above, subject to the approval of the 41 department of health. The department of health shall consult with the 42 office of alcoholism and substance abuse services and the office of 43 mental health in determining whether such alternative rates shall be 44 approved. The report required under section 16-a of part C of chapter 45 60 of the laws of 2014 shall also include the population of patients 46 enrolled in the child health insurance program pursuant to title one-A 47 of article 25 of the public health law in its examination on the transi- 48 tion of behavioral health services into managed care. 49 § 2. Section 1 of part H of chapter 111 of the laws of 2010 relating 50 to increasing Medicaid payments to providers through managed care organ- 51 izations and providing equivalent fees through an ambulatory patient 52 group methodology, as amended by section 30 of part B of chapter 59 of 53 the laws of 2016, is amended to read as follows: 54 Section 1. a. Notwithstanding any contrary provision of law, the 55 commissioners of mental health and alcoholism and substance abuse 56 services are authorized, subject to the approval of the director of theA. 3007--A 66 1 budget, to transfer to the commissioner of health state funds to be 2 utilized as the state share for the purpose of increasing payments under 3 the medicaid program to managed care organizations licensed under arti- 4 cle 44 of the public health law or under article 43 of the insurance 5 law. Such managed care organizations shall utilize such funds for the 6 purpose of reimbursing providers licensed pursuant to article 28 of the 7 public health law, or pursuant to article 31 or article 32 of the mental 8 hygiene law for ambulatory behavioral health services, as determined by 9 the commissioner of health in consultation with the commissioner of 10 mental health and commissioner of alcoholism and substance abuse 11 services, provided to medicaid [eligible] enrolled outpatients and for 12 all other behavioral health services except inpatient included in New 13 York state's Medicaid redesign waiver approved by the centers for Medi- 14 care and Medicaid services (CMS). Such reimbursement shall be in the 15 form of fees for such services which are equivalent to the payments 16 established for such services under the ambulatory patient group (APG) 17 rate-setting methodology as utilized by the department of health or by 18 the office of mental health or office of alcoholism and substance abuse 19 services for rate-setting purposes or any such other fees pursuant to 20 the Medicaid state plan or otherwise approved by CMS in the Medicaid 21 redesign waiver; provided, however, that the increase to such fees that 22 shall result from the provisions of this section shall not, in the 23 aggregate and as determined by the commissioner of health in consulta- 24 tion with the commissioners of mental health and alcoholism and 25 substance abuse services, be greater than the increased funds made 26 available pursuant to this section. The increase of such behavioral 27 health fees to providers available under this section shall be for all 28 rate periods on and after the effective date of section [2] 30 of part 29 [C] B of chapter [57] 59 of the laws of [2015] 2016 through March 31, 30 [2018] 2021 for patients in the city of New York, for all rate periods 31 on and after the effective date of section [2] 30 of part [C] B of chap- 32 ter [57] 59 of the laws of [2015] 2016 through [June 30, 2018] March 31, 33 2021 for patients outside the city of New York, and for all rate periods 34 on and after the effective date of section [2] 30 of part [C] B of chap- 35 ter [57] 59 of the laws of [2015] 2016 through [June 30, 2018] March 31, 36 2021 for all services provided to persons under the age of twenty-one; 37 provided, however, [eligible providers may work with managed care plans38to achieve quality and efficiency objectives and engage in shared39savings] the commissioner of health, in consultation with the commis- 40 sioner of alcoholism and substance abuse services and the commissioner 41 of mental health, may require, as a condition of approval of such ambu- 42 latory behavioral health fees, that aggregate managed care expenditures 43 to eligible providers meet the following value based payment metrics for 44 the following periods: (i) for the period from April 1, 2018 through 45 March 31, 2019, at least ten percent of such managed care expenditures 46 are paid through level one value based payment arrangements, pursuant to 47 the terms and conditions of the delivery system reform incentive payment 48 program waiver approved by the centers for Medicare and Medicaid 49 services (ii) for the period April 1, 2019 through March 31, 2020, at 50 least fifty percent of such managed care expenditures are paid through 51 level one value based payment arrangements and at least fifteen percent 52 are paid through level two value based payment arrangements, pursuant to 53 the terms and conditions of the delivery system reform incentive payment 54 program waiver approved by the centers for Medicare and Medicaid 55 services (iii) for the period April 1, 2020 through March 31, 2021, at 56 least eighty percent of such managed care expenditures are paid throughA. 3007--A 67 1 level one value based payment arrangements and at least thirty-five 2 percent are paid through level two value based payment arrangements, 3 pursuant to the terms and conditions of the delivery system reform 4 incentive payment program waiver approved by the centers for Medicare 5 and Medicaid services. The commissioner of health shall, in consultation 6 with the commissioner of alcoholism and substance abuse services and the 7 commissioner of the office of mental health, waive such conditions if a 8 sufficient number of providers, as determined by the commissioner, 9 suffer a financial hardship as a consequence of such value based payment 10 arrangements, or if he or she shall determine that such value based 11 payment arrangements significantly threaten individuals' access to ambu- 12 latory behavioral health services. Such waiver may be applied on a 13 provider specific or industry wide basis. Nothing in this section shall 14 prohibit managed care organizations and providers from negotiating 15 different rates and methods of payment during such periods described, 16 subject to the approval of the department of health. The department of 17 health shall consult with the office of alcoholism and substance abuse 18 services and the office of mental health in determining whether such 19 alternative rates shall be approved. The commissioner of health may, in 20 consultation with the commissioners of mental health and alcoholism and 21 substance abuse services, promulgate regulations, including emergency 22 regulations promulgated prior to October 1, 2013 that establish rates 23 for behavioral health services, as are necessary to implement the 24 provisions of this section. Rates promulgated under this section shall 25 be included in the report required under section 45-c of part A of chap- 26 ter 56 of the laws of 2013. 27 b. Notwithstanding any contrary provision of law, the fees paid by 28 managed care organizations licensed under article 44 of the public 29 health law or under article 43 of the insurance law, to providers 30 licensed pursuant to article 28 of the public health law or article 31 31 or 32 of the mental hygiene law, for ambulatory behavioral health 32 services provided to patients enrolled in the child health insurance 33 program pursuant to title one-A of article 25 of the public health law, 34 shall be in the form of fees for such services which are equivalent to 35 the payments established for such services under the ambulatory patient 36 group (APG) rate-setting methodology. The commissioner of health shall 37 consult with the commissioner of alcoholism and substance abuse services 38 and the commissioner of the office of mental health in determining such 39 services and establishing such fees. Such ambulatory behavioral health 40 fees to providers available under this section shall be for all rate 41 periods on and after the effective date of this chapter through [June4230, 2018] March 31, 2021, provided, however, that managed care organiza- 43 tions and providers may negotiate different rates and methods of payment 44 during such periods described above, subject to the approval of the 45 department of health. The department of health shall consult with the 46 office of alcoholism and substance abuse services and the office of 47 mental health in determining whether such alternative rates shall be 48 approved. The report required under section 16-a of part C of chapter 49 60 of the laws of 2014 shall also include the population of patients 50 enrolled in the child health insurance program pursuant to title one-A 51 of article 25 of the public health law in its examination on the transi- 52 tion of behavioral health services into managed care. 53 § 3. This act shall take effect immediately and shall be deemed to 54 have been in full force and effect on and after April 1, 2017; provided, 55 however, that the amendments to section 48-a of part A of chapter 56 of 56 the laws of 2013 made by section one of this act shall not affect theA. 3007--A 68 1 repeal of such section and shall be deemed repealed therewith; provided 2 further, that the amendments to section 1 of part H of chapter 111 of 3 the laws of 2010 made by section two of this act shall not affect the 4 expiration of such section and shall be deemed to expire therewith. 5 PART Q 6 Intentionally Omitted 7 PART R 8 Section 1. Paragraph (a) of subdivision 1 of section 18 of chapter 266 9 of the laws of 1986, amending the civil practice law and rules and other 10 laws relating to malpractice and professional medical conduct, as 11 amended by section 2 of part C of chapter 59 of the laws of 2016, is 12 amended to read as follows: 13 (a) The superintendent of financial services and the commissioner of 14 health or their designee shall, from funds available in the hospital 15 excess liability pool created pursuant to subdivision 5 of this section, 16 purchase a policy or policies for excess insurance coverage, as author- 17 ized by paragraph 1 of subsection (e) of section 5502 of the insurance 18 law; or from an insurer, other than an insurer described in section 5502 19 of the insurance law, duly authorized to write such coverage and actual- 20 ly writing medical malpractice insurance in this state; or shall 21 purchase equivalent excess coverage in a form previously approved by the 22 superintendent of financial services for purposes of providing equiv- 23 alent excess coverage in accordance with section 19 of chapter 294 of 24 the laws of 1985, for medical or dental malpractice occurrences between 25 July 1, 1986 and June 30, 1987, between July 1, 1987 and June 30, 1988, 26 between July 1, 1988 and June 30, 1989, between July 1, 1989 and June 27 30, 1990, between July 1, 1990 and June 30, 1991, between July 1, 1991 28 and June 30, 1992, between July 1, 1992 and June 30, 1993, between July 29 1, 1993 and June 30, 1994, between July 1, 1994 and June 30, 1995, 30 between July 1, 1995 and June 30, 1996, between July 1, 1996 and June 31 30, 1997, between July 1, 1997 and June 30, 1998, between July 1, 1998 32 and June 30, 1999, between July 1, 1999 and June 30, 2000, between July 33 1, 2000 and June 30, 2001, between July 1, 2001 and June 30, 2002, 34 between July 1, 2002 and June 30, 2003, between July 1, 2003 and June 35 30, 2004, between July 1, 2004 and June 30, 2005, between July 1, 2005 36 and June 30, 2006, between July 1, 2006 and June 30, 2007, between July 37 1, 2007 and June 30, 2008, between July 1, 2008 and June 30, 2009, 38 between July 1, 2009 and June 30, 2010, between July 1, 2010 and June 39 30, 2011, between July 1, 2011 and June 30, 2012, between July 1, 2012 40 and June 30, 2013, between July 1, 2013 and June 30, 2014, between July 41 1, 2014 and June 30, 2015, between July 1, 2015 and June 30, 2016, [and] 42 between July 1, 2016 and June 30, 2017, and between July 1, 2017 and 43 June 30, 2018 or reimburse the hospital where the hospital purchases 44 equivalent excess coverage as defined in subparagraph (i) of paragraph 45 (a) of subdivision 1-a of this section for medical or dental malpractice 46 occurrences between July 1, 1987 and June 30, 1988, between July 1, 1988 47 and June 30, 1989, between July 1, 1989 and June 30, 1990, between July 48 1, 1990 and June 30, 1991, between July 1, 1991 and June 30, 1992, 49 between July 1, 1992 and June 30, 1993, between July 1, 1993 and June 50 30, 1994, between July 1, 1994 and June 30, 1995, between July 1, 1995 51 and June 30, 1996, between July 1, 1996 and June 30, 1997, between July 52 1, 1997 and June 30, 1998, between July 1, 1998 and June 30, 1999,A. 3007--A 69 1 between July 1, 1999 and June 30, 2000, between July 1, 2000 and June 2 30, 2001, between July 1, 2001 and June 30, 2002, between July 1, 2002 3 and June 30, 2003, between July 1, 2003 and June 30, 2004, between July 4 1, 2004 and June 30, 2005, between July 1, 2005 and June 30, 2006, 5 between July 1, 2006 and June 30, 2007, between July 1, 2007 and June 6 30, 2008, between July 1, 2008 and June 30, 2009, between July 1, 2009 7 and June 30, 2010, between July 1, 2010 and June 30, 2011, between July 8 1, 2011 and June 30, 2012, between July 1, 2012 and June 30, 2013, 9 between July 1, 2013 and June 30, 2014, between July 1, 2014 and June 10 30, 2015, between July 1, 2015 and June 30, 2016, [and] between July 1, 11 2016 and June 30, 2017, and between July 1, 2017 and June 30, 2018 for 12 physicians or dentists certified as eligible for each such period or 13 periods pursuant to subdivision 2 of this section by a general hospital 14 licensed pursuant to article 28 of the public health law; provided that 15 no single insurer shall write more than fifty percent of the total 16 excess premium for a given policy year; and provided, however, that such 17 eligible physicians or dentists must have in force an individual policy, 18 from an insurer licensed in this state of primary malpractice insurance 19 coverage in amounts of no less than one million three hundred thousand 20 dollars for each claimant and three million nine hundred thousand 21 dollars for all claimants under that policy during the period of such 22 excess coverage for such occurrences or be endorsed as additional 23 insureds under a hospital professional liability policy which is offered 24 through a voluntary attending physician ("channeling") program previous- 25 ly permitted by the superintendent of financial services during the 26 period of such excess coverage for such occurrences. During such period, 27 such policy for excess coverage or such equivalent excess coverage 28 shall, when combined with the physician's or dentist's primary malprac- 29 tice insurance coverage or coverage provided through a voluntary attend- 30 ing physician ("channeling") program, total an aggregate level of two 31 million three hundred thousand dollars for each claimant and six million 32 nine hundred thousand dollars for all claimants from all such policies 33 with respect to occurrences in each of such years provided, however, if 34 the cost of primary malpractice insurance coverage in excess of one 35 million dollars, but below the excess medical malpractice insurance 36 coverage provided pursuant to this act, exceeds the rate of nine percent 37 per annum, then the required level of primary malpractice insurance 38 coverage in excess of one million dollars for each claimant shall be in 39 an amount of not less than the dollar amount of such coverage available 40 at nine percent per annum; the required level of such coverage for all 41 claimants under that policy shall be in an amount not less than three 42 times the dollar amount of coverage for each claimant; and excess cover- 43 age, when combined with such primary malpractice insurance coverage, 44 shall increase the aggregate level for each claimant by one million 45 dollars and three million dollars for all claimants; and provided 46 further, that, with respect to policies of primary medical malpractice 47 coverage that include occurrences between April 1, 2002 and June 30, 48 2002, such requirement that coverage be in amounts no less than one 49 million three hundred thousand dollars for each claimant and three 50 million nine hundred thousand dollars for all claimants for such occur- 51 rences shall be effective April 1, 2002. 52 § 2. Subdivision 3 of section 18 of chapter 266 of the laws of 1986, 53 amending the civil practice law and rules and other laws relating to 54 malpractice and professional medical conduct, as amended by section 3 of 55 part C of chapter 59 of the laws of 2016, is amended to read as follows:A. 3007--A 70 1 (3)(a) The superintendent of financial services shall determine and 2 certify to each general hospital and to the commissioner of health the 3 cost of excess malpractice insurance for medical or dental malpractice 4 occurrences between July 1, 1986 and June 30, 1987, between July 1, 1988 5 and June 30, 1989, between July 1, 1989 and June 30, 1990, between July 6 1, 1990 and June 30, 1991, between July 1, 1991 and June 30, 1992, 7 between July 1, 1992 and June 30, 1993, between July 1, 1993 and June 8 30, 1994, between July 1, 1994 and June 30, 1995, between July 1, 1995 9 and June 30, 1996, between July 1, 1996 and June 30, 1997, between July 10 1, 1997 and June 30, 1998, between July 1, 1998 and June 30, 1999, 11 between July 1, 1999 and June 30, 2000, between July 1, 2000 and June 12 30, 2001, between July 1, 2001 and June 30, 2002, between July 1, 2002 13 and June 30, 2003, between July 1, 2003 and June 30, 2004, between July 14 1, 2004 and June 30, 2005, between July 1, 2005 and June 30, 2006, 15 between July 1, 2006 and June 30, 2007, between July 1, 2007 and June 16 30, 2008, between July 1, 2008 and June 30, 2009, between July 1, 2009 17 and June 30, 2010, between July 1, 2010 and June 30, 2011, between July 18 1, 2011 and June 30, 2012, between July 1, 2012 and June 30, 2013, and 19 between July 1, 2013 and June 30, 2014, between July 1, 2014 and June 20 30, 2015, between July 1, 2015 and June 30, 2016, and between July 1, 21 2016 and June 30, 2017, and between July 1, 2017 and June 30, 2018 allo- 22 cable to each general hospital for physicians or dentists certified as 23 eligible for purchase of a policy for excess insurance coverage by such 24 general hospital in accordance with subdivision 2 of this section, and 25 may amend such determination and certification as necessary. 26 (b) The superintendent of financial services shall determine and 27 certify to each general hospital and to the commissioner of health the 28 cost of excess malpractice insurance or equivalent excess coverage for 29 medical or dental malpractice occurrences between July 1, 1987 and June 30 30, 1988, between July 1, 1988 and June 30, 1989, between July 1, 1989 31 and June 30, 1990, between July 1, 1990 and June 30, 1991, between July 32 1, 1991 and June 30, 1992, between July 1, 1992 and June 30, 1993, 33 between July 1, 1993 and June 30, 1994, between July 1, 1994 and June 34 30, 1995, between July 1, 1995 and June 30, 1996, between July 1, 1996 35 and June 30, 1997, between July 1, 1997 and June 30, 1998, between July 36 1, 1998 and June 30, 1999, between July 1, 1999 and June 30, 2000, 37 between July 1, 2000 and June 30, 2001, between July 1, 2001 and June 38 30, 2002, between July 1, 2002 and June 30, 2003, between July 1, 2003 39 and June 30, 2004, between July 1, 2004 and June 30, 2005, between July 40 1, 2005 and June 30, 2006, between July 1, 2006 and June 30, 2007, 41 between July 1, 2007 and June 30, 2008, between July 1, 2008 and June 42 30, 2009, between July 1, 2009 and June 30, 2010, between July 1, 2010 43 and June 30, 2011, between July 1, 2011 and June 30, 2012, between July 44 1, 2012 and June 30, 2013, between July 1, 2013 and June 30, 2014, 45 between July 1, 2014 and June 30, 2015, between July 1, 2015 and June 46 30, 2016, and between July 1, 2016 and June 30, 2017, and between July 47 1, 2017 and June 30, 2018 allocable to each general hospital for physi- 48 cians or dentists certified as eligible for purchase of a policy for 49 excess insurance coverage or equivalent excess coverage by such general 50 hospital in accordance with subdivision 2 of this section, and may amend 51 such determination and certification as necessary. The superintendent of 52 financial services shall determine and certify to each general hospital 53 and to the commissioner of health the ratable share of such cost alloca- 54 ble to the period July 1, 1987 to December 31, 1987, to the period Janu- 55 ary 1, 1988 to June 30, 1988, to the period July 1, 1988 to December 31, 56 1988, to the period January 1, 1989 to June 30, 1989, to the period JulyA. 3007--A 71 1 1, 1989 to December 31, 1989, to the period January 1, 1990 to June 30, 2 1990, to the period July 1, 1990 to December 31, 1990, to the period 3 January 1, 1991 to June 30, 1991, to the period July 1, 1991 to December 4 31, 1991, to the period January 1, 1992 to June 30, 1992, to the period 5 July 1, 1992 to December 31, 1992, to the period January 1, 1993 to June 6 30, 1993, to the period July 1, 1993 to December 31, 1993, to the period 7 January 1, 1994 to June 30, 1994, to the period July 1, 1994 to December 8 31, 1994, to the period January 1, 1995 to June 30, 1995, to the period 9 July 1, 1995 to December 31, 1995, to the period January 1, 1996 to June 10 30, 1996, to the period July 1, 1996 to December 31, 1996, to the period 11 January 1, 1997 to June 30, 1997, to the period July 1, 1997 to December 12 31, 1997, to the period January 1, 1998 to June 30, 1998, to the period 13 July 1, 1998 to December 31, 1998, to the period January 1, 1999 to June 14 30, 1999, to the period July 1, 1999 to December 31, 1999, to the period 15 January 1, 2000 to June 30, 2000, to the period July 1, 2000 to December 16 31, 2000, to the period January 1, 2001 to June 30, 2001, to the period 17 July 1, 2001 to June 30, 2002, to the period July 1, 2002 to June 30, 18 2003, to the period July 1, 2003 to June 30, 2004, to the period July 1, 19 2004 to June 30, 2005, to the period July 1, 2005 and June 30, 2006, to 20 the period July 1, 2006 and June 30, 2007, to the period July 1, 2007 21 and June 30, 2008, to the period July 1, 2008 and June 30, 2009, to the 22 period July 1, 2009 and June 30, 2010, to the period July 1, 2010 and 23 June 30, 2011, to the period July 1, 2011 and June 30, 2012, to the 24 period July 1, 2012 and June 30, 2013, to the period July 1, 2013 and 25 June 30, 2014, to the period July 1, 2014 and June 30, 2015, to the 26 period July 1, 2015 and June 30, 2016, and between July 1, 2016 and June 27 30, 2017, and to the period July 1, 2017 and June 30, 2018. 28 § 3. Paragraphs (a), (b), (c), (d) and (e) of subdivision 8 of section 29 18 of chapter 266 of the laws of 1986, amending the civil practice law 30 and rules and other laws relating to malpractice and professional 31 medical conduct, as amended by section 4 of part C of chapter 59 of the 32 laws of 2016, are amended to read as follows: 33 (a) To the extent funds available to the hospital excess liability 34 pool pursuant to subdivision 5 of this section as amended, and pursuant 35 to section 6 of part J of chapter 63 of the laws of 2001, as may from 36 time to time be amended, which amended this subdivision, are insuffi- 37 cient to meet the costs of excess insurance coverage or equivalent 38 excess coverage for coverage periods during the period July 1, 1992 to 39 June 30, 1993, during the period July 1, 1993 to June 30, 1994, during 40 the period July 1, 1994 to June 30, 1995, during the period July 1, 1995 41 to June 30, 1996, during the period July 1, 1996 to June 30, 1997, 42 during the period July 1, 1997 to June 30, 1998, during the period July 43 1, 1998 to June 30, 1999, during the period July 1, 1999 to June 30, 44 2000, during the period July 1, 2000 to June 30, 2001, during the period 45 July 1, 2001 to October 29, 2001, during the period April 1, 2002 to 46 June 30, 2002, during the period July 1, 2002 to June 30, 2003, during 47 the period July 1, 2003 to June 30, 2004, during the period July 1, 2004 48 to June 30, 2005, during the period July 1, 2005 to June 30, 2006, 49 during the period July 1, 2006 to June 30, 2007, during the period July 50 1, 2007 to June 30, 2008, during the period July 1, 2008 to June 30, 51 2009, during the period July 1, 2009 to June 30, 2010, during the period 52 July 1, 2010 to June 30, 2011, during the period July 1, 2011 to June 53 30, 2012, during the period July 1, 2012 to June 30, 2013, during the 54 period July 1, 2013 to June 30, 2014, during the period July 1, 2014 to 55 June 30, 2015, during the period July 1, 2015 and June 30, 2016, [and56between] during the period July 1, 2016 and June 30, 2017, and duringA. 3007--A 72 1 the period July 1, 2017 and June 30, 2018 allocated or reallocated in 2 accordance with paragraph (a) of subdivision 4-a of this section to 3 rates of payment applicable to state governmental agencies, each physi- 4 cian or dentist for whom a policy for excess insurance coverage or 5 equivalent excess coverage is purchased for such period shall be respon- 6 sible for payment to the provider of excess insurance coverage or equiv- 7 alent excess coverage of an allocable share of such insufficiency, based 8 on the ratio of the total cost of such coverage for such physician to 9 the sum of the total cost of such coverage for all physicians applied to 10 such insufficiency. 11 (b) Each provider of excess insurance coverage or equivalent excess 12 coverage covering the period July 1, 1992 to June 30, 1993, or covering 13 the period July 1, 1993 to June 30, 1994, or covering the period July 1, 14 1994 to June 30, 1995, or covering the period July 1, 1995 to June 30, 15 1996, or covering the period July 1, 1996 to June 30, 1997, or covering 16 the period July 1, 1997 to June 30, 1998, or covering the period July 1, 17 1998 to June 30, 1999, or covering the period July 1, 1999 to June 30, 18 2000, or covering the period July 1, 2000 to June 30, 2001, or covering 19 the period July 1, 2001 to October 29, 2001, or covering the period 20 April 1, 2002 to June 30, 2002, or covering the period July 1, 2002 to 21 June 30, 2003, or covering the period July 1, 2003 to June 30, 2004, or 22 covering the period July 1, 2004 to June 30, 2005, or covering the peri- 23 od July 1, 2005 to June 30, 2006, or covering the period July 1, 2006 to 24 June 30, 2007, or covering the period July 1, 2007 to June 30, 2008, or 25 covering the period July 1, 2008 to June 30, 2009, or covering the peri- 26 od July 1, 2009 to June 30, 2010, or covering the period July 1, 2010 to 27 June 30, 2011, or covering the period July 1, 2011 to June 30, 2012, or 28 covering the period July 1, 2012 to June 30, 2013, or covering the peri- 29 od July 1, 2013 to June 30, 2014, or covering the period July 1, 2014 to 30 June 30, 2015, or covering the period July 1, 2015 to June 30, 2016, or 31 covering the period July 1, 2016 to June 30, 2017, or covering the peri- 32 od July 1, 2017 to June 30, 2018 shall notify a covered physician or 33 dentist by mail, mailed to the address shown on the last application for 34 excess insurance coverage or equivalent excess coverage, of the amount 35 due to such provider from such physician or dentist for such coverage 36 period determined in accordance with paragraph (a) of this subdivision. 37 Such amount shall be due from such physician or dentist to such provider 38 of excess insurance coverage or equivalent excess coverage in a time and 39 manner determined by the superintendent of financial services. 40 (c) If a physician or dentist liable for payment of a portion of the 41 costs of excess insurance coverage or equivalent excess coverage cover- 42 ing the period July 1, 1992 to June 30, 1993, or covering the period 43 July 1, 1993 to June 30, 1994, or covering the period July 1, 1994 to 44 June 30, 1995, or covering the period July 1, 1995 to June 30, 1996, or 45 covering the period July 1, 1996 to June 30, 1997, or covering the peri- 46 od July 1, 1997 to June 30, 1998, or covering the period July 1, 1998 to 47 June 30, 1999, or covering the period July 1, 1999 to June 30, 2000, or 48 covering the period July 1, 2000 to June 30, 2001, or covering the peri- 49 od July 1, 2001 to October 29, 2001, or covering the period April 1, 50 2002 to June 30, 2002, or covering the period July 1, 2002 to June 30, 51 2003, or covering the period July 1, 2003 to June 30, 2004, or covering 52 the period July 1, 2004 to June 30, 2005, or covering the period July 1, 53 2005 to June 30, 2006, or covering the period July 1, 2006 to June 30, 54 2007, or covering the period July 1, 2007 to June 30, 2008, or covering 55 the period July 1, 2008 to June 30, 2009, or covering the period July 1, 56 2009 to June 30, 2010, or covering the period July 1, 2010 to June 30,A. 3007--A 73 1 2011, or covering the period July 1, 2011 to June 30, 2012, or covering 2 the period July 1, 2012 to June 30, 2013, or covering the period July 1, 3 2013 to June 30, 2014, or covering the period July 1, 2014 to June 30, 4 2015, or covering the period July 1, 2015 to June 30, 2016, or covering 5 the period July 1, 2016 to June 30, 2017, or covering the period July 1, 6 2017 to June 30, 2018 determined in accordance with paragraph (a) of 7 this subdivision fails, refuses or neglects to make payment to the 8 provider of excess insurance coverage or equivalent excess coverage in 9 such time and manner as determined by the superintendent of financial 10 services pursuant to paragraph (b) of this subdivision, excess insurance 11 coverage or equivalent excess coverage purchased for such physician or 12 dentist in accordance with this section for such coverage period shall 13 be cancelled and shall be null and void as of the first day on or after 14 the commencement of a policy period where the liability for payment 15 pursuant to this subdivision has not been met. 16 (d) Each provider of excess insurance coverage or equivalent excess 17 coverage shall notify the superintendent of financial services and the 18 commissioner of health or their designee of each physician and dentist 19 eligible for purchase of a policy for excess insurance coverage or 20 equivalent excess coverage covering the period July 1, 1992 to June 30, 21 1993, or covering the period July 1, 1993 to June 30, 1994, or covering 22 the period July 1, 1994 to June 30, 1995, or covering the period July 1, 23 1995 to June 30, 1996, or covering the period July 1, 1996 to June 30, 24 1997, or covering the period July 1, 1997 to June 30, 1998, or covering 25 the period July 1, 1998 to June 30, 1999, or covering the period July 1, 26 1999 to June 30, 2000, or covering the period July 1, 2000 to June 30, 27 2001, or covering the period July 1, 2001 to October 29, 2001, or cover- 28 ing the period April 1, 2002 to June 30, 2002, or covering the period 29 July 1, 2002 to June 30, 2003, or covering the period July 1, 2003 to 30 June 30, 2004, or covering the period July 1, 2004 to June 30, 2005, or 31 covering the period July 1, 2005 to June 30, 2006, or covering the peri- 32 od July 1, 2006 to June 30, 2007, or covering the period July 1, 2007 to 33 June 30, 2008, or covering the period July 1, 2008 to June 30, 2009, or 34 covering the period July 1, 2009 to June 30, 2010, or covering the peri- 35 od July 1, 2010 to June 30, 2011, or covering the period July 1, 2011 to 36 June 30, 2012, or covering the period July 1, 2012 to June 30, 2013, or 37 covering the period July 1, 2013 to June 30, 2014, or covering the peri- 38 od July 1, 2014 to June 30, 2015, or covering the period July 1, 2015 to 39 June 30, 2016, or covering the period July 1, 2016 to June 30, 2017, or 40 covering the period July 1, 2017 to June 30, 2018 that has made payment 41 to such provider of excess insurance coverage or equivalent excess 42 coverage in accordance with paragraph (b) of this subdivision and of 43 each physician and dentist who has failed, refused or neglected to make 44 such payment. 45 (e) A provider of excess insurance coverage or equivalent excess 46 coverage shall refund to the hospital excess liability pool any amount 47 allocable to the period July 1, 1992 to June 30, 1993, and to the period 48 July 1, 1993 to June 30, 1994, and to the period July 1, 1994 to June 49 30, 1995, and to the period July 1, 1995 to June 30, 1996, and to the 50 period July 1, 1996 to June 30, 1997, and to the period July 1, 1997 to 51 June 30, 1998, and to the period July 1, 1998 to June 30, 1999, and to 52 the period July 1, 1999 to June 30, 2000, and to the period July 1, 2000 53 to June 30, 2001, and to the period July 1, 2001 to October 29, 2001, 54 and to the period April 1, 2002 to June 30, 2002, and to the period July 55 1, 2002 to June 30, 2003, and to the period July 1, 2003 to June 30, 56 2004, and to the period July 1, 2004 to June 30, 2005, and to the periodA. 3007--A 74 1 July 1, 2005 to June 30, 2006, and to the period July 1, 2006 to June 2 30, 2007, and to the period July 1, 2007 to June 30, 2008, and to the 3 period July 1, 2008 to June 30, 2009, and to the period July 1, 2009 to 4 June 30, 2010, and to the period July 1, 2010 to June 30, 2011, and to 5 the period July 1, 2011 to June 30, 2012, and to the period July 1, 2012 6 to June 30, 2013, and to the period July 1, 2013 to June 30, 2014, and 7 to the period July 1, 2014 to June 30, 2015, and to the period July 1, 8 2015 to June 30, 2016, [and] to the period July 1, 2016 to June 30, 9 2017, and to the period July 1, 2017 to June 30, 2018 received from the 10 hospital excess liability pool for purchase of excess insurance coverage 11 or equivalent excess coverage covering the period July 1, 1992 to June 12 30, 1993, and covering the period July 1, 1993 to June 30, 1994, and 13 covering the period July 1, 1994 to June 30, 1995, and covering the 14 period July 1, 1995 to June 30, 1996, and covering the period July 1, 15 1996 to June 30, 1997, and covering the period July 1, 1997 to June 30, 16 1998, and covering the period July 1, 1998 to June 30, 1999, and cover- 17 ing the period July 1, 1999 to June 30, 2000, and covering the period 18 July 1, 2000 to June 30, 2001, and covering the period July 1, 2001 to 19 October 29, 2001, and covering the period April 1, 2002 to June 30, 20 2002, and covering the period July 1, 2002 to June 30, 2003, and cover- 21 ing the period July 1, 2003 to June 30, 2004, and covering the period 22 July 1, 2004 to June 30, 2005, and covering the period July 1, 2005 to 23 June 30, 2006, and covering the period July 1, 2006 to June 30, 2007, 24 and covering the period July 1, 2007 to June 30, 2008, and covering the 25 period July 1, 2008 to June 30, 2009, and covering the period July 1, 26 2009 to June 30, 2010, and covering the period July 1, 2010 to June 30, 27 2011, and covering the period July 1, 2011 to June 30, 2012, and cover- 28 ing the period July 1, 2012 to June 30, 2013, and covering the period 29 July 1, 2013 to June 30, 2014, and covering the period July 1, 2014 to 30 June 30, 2015, and covering the period July 1, 2015 to June 30, 2016, 31 and covering the period July 1, 2016 to June 30, 2017, and covering the 32 period July 1, 2017 to June 30, 2018 for a physician or dentist where 33 such excess insurance coverage or equivalent excess coverage is 34 cancelled in accordance with paragraph (c) of this subdivision. 35 § 4. Section 40 of chapter 266 of the laws of 1986, amending the civil 36 practice law and rules and other laws relating to malpractice and 37 professional medical conduct, as amended by section 5 of part C of chap- 38 ter 59 of the laws of 2016, is amended to read as follows: 39 § 40. The superintendent of financial services shall establish rates 40 for policies providing coverage for physicians and surgeons medical 41 malpractice for the periods commencing July 1, 1985 and ending June 30, 42 [2017] 2018; provided, however, that notwithstanding any other provision 43 of law, the superintendent shall not establish or approve any increase 44 in rates for the period commencing July 1, 2009 and ending June 30, 45 2010. The superintendent shall direct insurers to establish segregated 46 accounts for premiums, payments, reserves and investment income attrib- 47 utable to such premium periods and shall require periodic reports by the 48 insurers regarding claims and expenses attributable to such periods to 49 monitor whether such accounts will be sufficient to meet incurred claims 50 and expenses. On or after July 1, 1989, the superintendent shall impose 51 a surcharge on premiums to satisfy a projected deficiency that is 52 attributable to the premium levels established pursuant to this section 53 for such periods; provided, however, that such annual surcharge shall 54 not exceed eight percent of the established rate until July 1, [2017] 55 2018, at which time and thereafter such surcharge shall not exceed twen- 56 ty-five percent of the approved adequate rate, and that such annualA. 3007--A 75 1 surcharges shall continue for such period of time as shall be sufficient 2 to satisfy such deficiency. The superintendent shall not impose such 3 surcharge during the period commencing July 1, 2009 and ending June 30, 4 2010. On and after July 1, 1989, the surcharge prescribed by this 5 section shall be retained by insurers to the extent that they insured 6 physicians and surgeons during the July 1, 1985 through June 30, [2017] 7 2018 policy periods; in the event and to the extent physicians and 8 surgeons were insured by another insurer during such periods, all or a 9 pro rata share of the surcharge, as the case may be, shall be remitted 10 to such other insurer in accordance with rules and regulations to be 11 promulgated by the superintendent. Surcharges collected from physicians 12 and surgeons who were not insured during such policy periods shall be 13 apportioned among all insurers in proportion to the premium written by 14 each insurer during such policy periods; if a physician or surgeon was 15 insured by an insurer subject to rates established by the superintendent 16 during such policy periods, and at any time thereafter a hospital, 17 health maintenance organization, employer or institution is responsible 18 for responding in damages for liability arising out of such physician's 19 or surgeon's practice of medicine, such responsible entity shall also 20 remit to such prior insurer the equivalent amount that would then be 21 collected as a surcharge if the physician or surgeon had continued to 22 remain insured by such prior insurer. In the event any insurer that 23 provided coverage during such policy periods is in liquidation, the 24 property/casualty insurance security fund shall receive the portion of 25 surcharges to which the insurer in liquidation would have been entitled. 26 The surcharges authorized herein shall be deemed to be income earned for 27 the purposes of section 2303 of the insurance law. The superintendent, 28 in establishing adequate rates and in determining any projected defi- 29 ciency pursuant to the requirements of this section and the insurance 30 law, shall give substantial weight, determined in his discretion and 31 judgment, to the prospective anticipated effect of any regulations 32 promulgated and laws enacted and the public benefit of stabilizing 33 malpractice rates and minimizing rate level fluctuation during the peri- 34 od of time necessary for the development of more reliable statistical 35 experience as to the efficacy of such laws and regulations affecting 36 medical, dental or podiatric malpractice enacted or promulgated in 1985, 37 1986, by this act and at any other time. Notwithstanding any provision 38 of the insurance law, rates already established and to be established by 39 the superintendent pursuant to this section are deemed adequate if such 40 rates would be adequate when taken together with the maximum authorized 41 annual surcharges to be imposed for a reasonable period of time whether 42 or not any such annual surcharge has been actually imposed as of the 43 establishment of such rates. 44 § 5. Section 5 and subdivisions (a) and (e) of section 6 of part J of 45 chapter 63 of the laws of 2001, amending chapter 266 of the laws of 46 1986, amending the civil practice law and rules and other laws relating 47 to malpractice and professional medical conduct, as amended by section 6 48 of part C of chapter 59 of the laws of 2016, are amended to read as 49 follows: 50 § 5. The superintendent of financial services and the commissioner of 51 health shall determine, no later than June 15, 2002, June 15, 2003, June 52 15, 2004, June 15, 2005, June 15, 2006, June 15, 2007, June 15, 2008, 53 June 15, 2009, June 15, 2010, June 15, 2011, June 15, 2012, June 15, 54 2013, June 15, 2014, June 15, 2015, June 15, 2016, [and] June 15, 2017, 55 and June 15, 2018 the amount of funds available in the hospital excess 56 liability pool, created pursuant to section 18 of chapter 266 of theA. 3007--A 76 1 laws of 1986, and whether such funds are sufficient for purposes of 2 purchasing excess insurance coverage for eligible participating physi- 3 cians and dentists during the period July 1, 2001 to June 30, 2002, or 4 July 1, 2002 to June 30, 2003, or July 1, 2003 to June 30, 2004, or July 5 1, 2004 to June 30, 2005, or July 1, 2005 to June 30, 2006, or July 1, 6 2006 to June 30, 2007, or July 1, 2007 to June 30, 2008, or July 1, 2008 7 to June 30, 2009, or July 1, 2009 to June 30, 2010, or July 1, 2010 to 8 June 30, 2011, or July 1, 2011 to June 30, 2012, or July 1, 2012 to June 9 30, 2013, or July 1, 2013 to June 30, 2014, or July 1, 2014 to June 30, 10 2015, or July 1, 2015 to June 30, 2016, or July 1, 2016 to June 30, 11 2017, or to July 1, 2017 to June 30, 2018 as applicable. 12 (a) This section shall be effective only upon a determination, pursu- 13 ant to section five of this act, by the superintendent of financial 14 services and the commissioner of health, and a certification of such 15 determination to the state director of the budget, the chair of the 16 senate committee on finance and the chair of the assembly committee on 17 ways and means, that the amount of funds in the hospital excess liabil- 18 ity pool, created pursuant to section 18 of chapter 266 of the laws of 19 1986, is insufficient for purposes of purchasing excess insurance cover- 20 age for eligible participating physicians and dentists during the period 21 July 1, 2001 to June 30, 2002, or July 1, 2002 to June 30, 2003, or July 22 1, 2003 to June 30, 2004, or July 1, 2004 to June 30, 2005, or July 1, 23 2005 to June 30, 2006, or July 1, 2006 to June 30, 2007, or July 1, 2007 24 to June 30, 2008, or July 1, 2008 to June 30, 2009, or July 1, 2009 to 25 June 30, 2010, or July 1, 2010 to June 30, 2011, or July 1, 2011 to June 26 30, 2012, or July 1, 2012 to June 30, 2013, or July 1, 2013 to June 30, 27 2014, or July 1, 2014 to June 30, 2015, or July 1, 2015 to June 30, 28 2016, or July 1, 2016 to June 30, 2017, or July 1, 2017 to June 30, 2018 29 as applicable. 30 (e) The commissioner of health shall transfer for deposit to the 31 hospital excess liability pool created pursuant to section 18 of chapter 32 266 of the laws of 1986 such amounts as directed by the superintendent 33 of financial services for the purchase of excess liability insurance 34 coverage for eligible participating physicians and dentists for the 35 policy year July 1, 2001 to June 30, 2002, or July 1, 2002 to June 30, 36 2003, or July 1, 2003 to June 30, 2004, or July 1, 2004 to June 30, 37 2005, or July 1, 2005 to June 30, 2006, or July 1, 2006 to June 30, 38 2007, as applicable, and the cost of administering the hospital excess 39 liability pool for such applicable policy year, pursuant to the program 40 established in chapter 266 of the laws of 1986, as amended, no later 41 than June 15, 2002, June 15, 2003, June 15, 2004, June 15, 2005, June 42 15, 2006, June 15, 2007, June 15, 2008, June 15, 2009, June 15, 2010, 43 June 15, 2011, June 15, 2012, June 15, 2013, June 15, 2014, June 15, 44 2015, June 15, 2016, [and] June 15, 2017, and June 15, 2018 as applica- 45 ble. 46 § 6. Notwithstanding any law, rule or regulation to the contrary, only 47 physicians or dentists who were eligible, and for whom the superinten- 48 dent of financial services and the commissioner of health, or their 49 designee, purchased, with funds available in the hospital excess liabil- 50 ity pool, a full or partial policy for excess coverage or equivalent 51 excess coverage for the coverage period ending the thirtieth of June, 52 two thousand seventeen, shall be eligible to apply for such coverage for 53 the coverage period beginning the first of July, two thousand seventeen; 54 provided, however, if the total number of physicians or dentists for 55 whom such excess coverage or equivalent excess coverage was purchased 56 for the policy year ending the thirtieth of June, two thousand seventeenA. 3007--A 77 1 exceeds the total number of physicians or dentists certified as eligible 2 for the coverage period beginning the first of July, two thousand seven- 3 teen, then the general hospitals may certify additional eligible physi- 4 cians or dentists in a number equal to such general hospital's propor- 5 tional share of the total number of physicians or dentists for whom 6 excess coverage or equivalent excess coverage was purchased with funds 7 available in the hospital excess liability pool as of the thirtieth of 8 June, two thousand seventeen, as applied to the difference between the 9 number of eligible physicians or dentists for whom a policy for excess 10 coverage or equivalent excess coverage was purchased for the coverage 11 period ending the thirtieth of June, two thousand seventeen and the 12 number of such eligible physicians or dentists who have applied for 13 excess coverage or equivalent excess coverage for the coverage period 14 beginning the first of July, two thousand seventeen. 15 § 7. Intentionally omitted. 16 § 8. This act shall take effect immediately. 17 PART S 18 Section 1. On or before October 1, 2017, the commissioner of the 19 office for people with developmental disabilities shall issue a report 20 to the temporary president of the senate and the speaker of the assembly 21 to include the following: 22 (a) progress the office has made in meeting the housing needs of indi- 23 viduals with developmental disabilities, including through: 24 (1) its ongoing review of the residential registration list, including 25 information regarding services currently provided to individuals on the 26 list and any available information on residential support categories and 27 housing needs for such individuals; 28 (2) recommendations and information provided by the regional stake- 29 holder advisory groups; 30 (3) increasing access to rental housing, supportive housing, and other 31 independent living options; 32 (4) building understanding and awareness of housing options for inde- 33 pendent living among people with developmental disabilities, families, 34 public and private organizations, developers and direct support profes- 35 sionals; and 36 (5) assisting with the creation of a sustainable living environment 37 through funding for home modifications, down payment assistance and home 38 repairs; and 39 (b) an update on the implementation of the report and recommendations 40 of the transformation panel, including implementation of the panel's 41 recommendations to: 42 (1) increase and support access to self-directed models of care; 43 (2) enhance opportunities for individuals to access community inte- 44 grated housing; 45 (3) increase integrated employment opportunities; and 46 (4) examine the program design and fiscal model for managed care to 47 appropriately address the needs of individuals with developmental disa- 48 bilities. 49 § 2. This act shall take effect immediately; provided, however, that 50 this at shall be subject to appropriations made specifically available 51 for this purpose and shall expire and be deemed repealed April 1, 2018. 52 PART TA. 3007--A 78 1 Section 1. The opening paragraph of section 220.03 of the penal law, 2 as amended by section 4 of part I of chapter 57 of the laws of 2015, is 3 amended to read as follows: 4 A person is guilty of criminal possession of a controlled substance in 5 the seventh degree when he or she knowingly and unlawfully possesses a 6 controlled substance; provided, however, that it shall not be a 7 violation of this section when a person possesses a residual amount of a 8 controlled substance and that residual amount is in or on a hypodermic 9 syringe or hypodermic needle [obtained and possessed pursuant to section10thirty-three hundred eighty-one of the public health law, which includes11the state's syringe exchange and pharmacy and medical provider-based12expanded syringe access programs]; nor shall it be a violation of this 13 section when a person's unlawful possession of a controlled substance is 14 discovered as a result of seeking immediate health care as defined in 15 paragraph (b) of subdivision three of section 220.78 of [the penal law] 16 this article, for either another person or him or herself because such 17 person is experiencing a drug or alcohol overdose or other life threat- 18 ening medical emergency as defined in paragraph (a) of subdivision three 19 of section 220.78 of [the penal law] this article. 20 § 2. Section 220.45 of the penal law is REPEALED. 21 § 3. Subdivision 2 of section 850 of the general business law, as 22 amended by chapter 812 of the laws of 1980, is amended to read as 23 follows: 24 2. (a) "Drug-related paraphernalia" consists of the following objects 25 used for the following purposes: 26 [(a)] (i) Kits, used or designed for the purpose of planting, propa- 27 gating, cultivating, growing or harvesting of any species of plant which 28 is a controlled substance or from which a controlled substance can be 29 derived; 30 [(b)] (ii) Kits, used or designed for the purpose of manufacturing, 31 compounding, converting, producing, or preparing controlled substances; 32 [(c)] (iii) Isomerization devices, used or designed for the purpose of 33 increasing the potency of any species of plant which is a controlled 34 substance; 35 [(d)] (iv) Scales and balances, used or designed for the purpose of 36 weighing or measuring controlled substances; 37 [(e)] (v) Diluents and adulterants, including but not limited to 38 quinine hydrochloride, mannitol, mannite, dextrose and lactose, used or 39 designed for the purpose of cutting controlled substances; 40 [(f)] (vi) Separation gins, used or designed for the purpose of remov- 41 ing twigs and seeds in order to clean or refine marihuana; 42 [(g) Hypodermic syringes, needles and other objects, used or designed43for the purpose of parenterally injecting controlled substances into the44human body;45(h)] and 46 (vii) Objects, used or designed for the purpose of ingesting, inhal- 47 ing, or otherwise introducing marihuana, cocaine, hashish, or hashish 48 oil into the human body. 49 (b) "Drug-related paraphernalia" shall not include hypodermic needles, 50 hypodermic syringes and other objects used for the purpose of parenter- 51 ally injecting controlled substances into the human body. 52 § 4. Section 3381 of the public health law, as amended by section 9-a 53 of part B of chapter 58 of the laws of 2007, subdivisions 1, 2 and 3 as 54 amended by chapter 178 of the laws of 2010, paragraphs (e), (f) and (g) 55 of subdivision 5 as amended by section 2 of part D of chapter 71 of the 56 laws of 2016, is amended to read as follows:A. 3007--A 79 1 § 3381. Sale and possession of hypodermic syringes and hypodermic 2 needles. 1. It shall be unlawful for any person to sell or furnish to 3 another person or persons, a hypodermic syringe or hypodermic needle 4 except: 5 (a) pursuant to a prescription of a practitioner, which for the 6 purposes of this section shall include a patient specific prescription 7 form as provided for in the education law; or 8 (b) to persons who have been authorized by the commissioner to obtain 9 and possess such instruments; or 10 (c) by a pharmacy licensed under article one hundred thirty-seven of 11 the education law, health care facility licensed under article twenty- 12 eight of this chapter or a health care practitioner who is otherwise 13 authorized to prescribe the use of hypodermic needles or syringes within 14 his or her scope of practice; provided, however, that such sale or 15 furnishing: (i) shall only be to a person eighteen years of age or 16 older; and (ii) [shall be limited to a quantity of ten or less hypoderm-17ic needles or syringes; and (iii)] shall be in accordance with subdivi- 18 sion [five] four of this section[.] ; or 19 (d) under subdivision three of this section. 20 2. [It shall be unlawful for any person to obtain or possess a hypo-21dermic syringe or hypodermic needle unless such possession has been22authorized by the commissioner or is pursuant to a prescription, or is23pursuant to subdivision five of this section.243.] Any person selling or furnishing a hypodermic syringe or hypoderm- 25 ic needle pursuant to a prescription shall record upon the prescription, 26 his or her signature or electronic signature, and the date of the sale 27 or furnishing of the hypodermic syringe or hypodermic needle. Such 28 prescription shall be retained on file for a period of five years and be 29 readily accessible for inspection by any public officer or employee 30 engaged in the enforcement of this section. Such prescription may be 31 refilled not more than the number of times specifically authorized by 32 the prescriber upon the prescription, provided however no such authori- 33 zation shall be effective for a period greater than two years from the 34 date the prescription is signed. 35 [4] 3. The commissioner shall, subject to subdivision [five] four of 36 this section, designate persons, or by regulation, classes of persons 37 who may obtain hypodermic syringes and hypodermic needles without 38 prescription and the manner in which such transactions may take place 39 and the records thereof which shall be maintained. 40 [5] 4. (a) A person eighteen years of age or older may obtain and 41 possess a hypodermic syringe or hypodermic needle pursuant to paragraph 42 (c) of subdivision one of this section. 43 (b) Subject to regulations of the commissioner, a pharmacy licensed 44 under article one hundred thirty-seven of the education law, a health 45 care facility licensed under article twenty-eight of this chapter or a 46 health care practitioner who is otherwise authorized to prescribe the 47 use of hypodermic needles or syringes within his or her scope of prac- 48 tice, may obtain and possess hypodermic needles or syringes for the 49 purpose of selling or furnishing them pursuant to paragraph (c) of 50 subdivision one of this section or for the purpose of disposing of 51 them[, provided that such pharmacy, health care facility or health care52practitioner has registered with the department]. 53 (c) Sale or furnishing of hypodermic syringes or hypodermic needles to 54 direct consumers pursuant to this subdivision by a pharmacy, health care 55 facility, or health care practitioner shall be accompanied by a safety 56 insert. Such safety insert shall be developed or approved by the commis-A. 3007--A 80 1 sioner and shall include, but not be limited to, (i) information on the 2 proper use of hypodermic syringes and hypodermic needles; (ii) the risk 3 of blood borne diseases that may result from the use of hypodermic 4 syringes and hypodermic needles; (iii) methods for preventing the trans- 5 mission or contraction of blood borne diseases; (iv) proper hypodermic 6 syringe and hypodermic needle disposal practices; (v) information on the 7 dangers of injection drug use, and how to access drug treatment; (vi) a 8 toll-free phone number for information on the human immunodeficiency 9 virus; and (vii) information on the safe disposal of hypodermic syringes 10 and hypodermic needles including the relevant provisions of the environ- 11 mental conservation law relating to the unlawful release of regulated 12 medical waste. The safety insert shall be attached to or included in the 13 hypodermic syringe and hypodermic needle packaging, or shall be given to 14 the purchaser at the point of sale or furnishing in brochure form. 15 (d) In addition to the requirements of paragraph (c) of subdivision 16 one of this section, a pharmacy licensed under article one hundred thir- 17 ty-seven of the education law may sell or furnish hypodermic needles or 18 syringes only if such pharmacy[: (i) does not advertise to the public19the availability for retail sale or furnishing of hypodermic needles or20syringes without a prescription; and (ii) at any location where hypo-21dermic needles or syringes are kept for retail sale or furnishing,] 22 stores such needles and syringes in a manner that makes them available 23 only to authorized personnel and not openly available to customers. 24 (e) A pharmacy registered under article one hundred thirty-seven of 25 the education law may offer counseling and referral services to custom- 26 ers purchasing hypodermic syringes for the purpose of: preventing 27 injection drug abuse; the provision of drug treatment; preventing and 28 treating hepatitis C; preventing drug overdose; testing for the human 29 immunodeficiency virus; and providing pre-exposure prophylaxis and non- 30 occupational post-exposure prophylaxis. The content of such counseling 31 and referral shall be at the professional discretion of the pharmacist. 32 (f) The commissioner shall promulgate rules and regulations necessary 33 to implement the provisions of this subdivision which shall include: (i) 34 standards for advertising to the public the availability for retail sale 35 or furnishing of hypodermic syringes or needles; and (ii) a requirement 36 that such pharmacies, health care facilities and health care practition- 37 ers cooperate in a safe disposal of used hypodermic needles or syringes. 38 (g) The commissioner may, upon the finding of a violation of this 39 section, suspend for a determinate period of time the sale or furnishing 40 of syringes by a specific entity. 41 [6] 5. The provisions of this section shall not apply to farmers 42 engaged in livestock production or to those persons supplying farmers 43 engaged in livestock production, provided that: 44 (a) Hypodermic syringes and needles shall be stored in a secure, 45 locked storage container. 46 (b) At any time the department may request a document outlining: 47 (i) the number of hypodermic needles and syringes purchased over the 48 past calendar year; 49 (ii) a record of all hypodermic needles used over the past calendar 50 year; and 51 (iii) a record of all hypodermic needles and syringes destroyed over 52 the past calendar year. 53 (c) Hypodermic needles and syringes shall be destroyed in a manner 54 consistent with the provisions set forth in section thirty-three hundred 55 eighty-one-a of this article. 56 § 5. This act shall take effect immediately.A. 3007--A 81 1 PART U 2 Section 1. Notwithstanding any other inconsistent provision of law, 3 the Western New York Children's Psychiatric Center shall be maintained 4 as a distinct entity, both organizationally and physically, within the 5 office of mental health, and such facility shall not be collocated or 6 merged with any adult facility. Such facility shall have no less than 7 forty-six beds that only serve children or adolescents, and the office 8 of mental health shall not take any steps to limit clinically appropri- 9 ate admissions or transfers to such facility. 10 § 2. This act shall take effect immediately. 11 PART V 12 Section 1. Subdivision 1 of section 364-j of the social services law 13 is amended by adding two new paragraphs (w) and (w-1) to read as 14 follows: 15 (w) "School-based health center." A clinic licensed under article 16 twenty-eight of the public health law or sponsored by a facility 17 licensed under article twenty-eight of the public health law, which 18 provides primary and preventative care which may include but is not 19 limited to health maintenance, well-child care, diagnosis and treatment 20 of injury and acute illness, diagnosis and management of chronic 21 disease, behavioral health services directly or by referral, vision 22 care, dental care, and nutritional or other enhanced services to chil- 23 dren and adolescents, within an elementary, secondary or prekindergarten 24 public school setting. 25 (w-1) "Sponsoring organization." A facility licensed under article 26 twenty-eight of the public health law which acts as the sponsor for a 27 school-based health center. 28 § 2. Subdivision 3 of section 364-j of the social services law is 29 amended by adding a new paragraph (d-3) to read as follows: 30 (d-3) Services provided by school-based health centers shall not be 31 provided to medical assistance recipients through managed care programs 32 established pursuant to this section, and shall continue to be provided 33 outside of managed care programs in accordance with applicable 34 reimbursement methodologies. Applicable reimbursement methodologies 35 shall mean: 36 (i) for school-based health centers sponsored by a federally qualified 37 health center, rates of reimbursement and requirements in accordance 38 with those mandated by 42 U.S.C. Secs. 1396a(bb), 1396b(m)(2)(A)(ix) and 39 1396a(a)(13)(C); and 40 (ii) for school-based health centers sponsored by an entity licensed 41 pursuant to article twenty-eight of the public health law that is not a 42 federally qualified health center, rates of reimbursement at the fee for 43 service rate for such services in effect prior to the enactment of this 44 paragraph for the ambulatory patient group rate for the applicable 45 service. 46 § 3. This act shall take effect immediately provided, however, that 47 the amendments to subdivisions 1 and 3 of section 364-j of the social 48 services law made by sections one and two of this act shall not affect 49 the repeal of such section and shall be deemed repealed therewith. 50 PART WA. 3007--A 82 1 Section 1. Section 365-f of the social services law is amended by 2 adding two new subdivisions 4-a and 4-b to read as follows: 3 4-a. Fiscal intermediary services. (a) For the purposes of this 4 section: 5 (i) "Fiscal intermediary" means an entity that provides fiscal inter- 6 mediary services and has a contract for providing such services with: 7 (A) a local department of social services; 8 (B) an organization licensed under article forty-four of the public 9 health law; or 10 (C) an accountable care organization certified under article twenty- 11 nine-E of the public health law or an integrated delivery system 12 composed primarily of health care providers recognized by the department 13 as a performing provider system under the delivery system reform incen- 14 tive payment program. 15 (ii) Fiscal intermediary services shall include the following 16 services, performed on behalf of the consumer to facilitate his or her 17 role as the employer: 18 (A) wage and benefit processing for consumer directed personal assist- 19 ants; 20 (B) processing all income tax and other required wage withholdings; 21 (C) complying with workers' compensation, disability and unemployment 22 requirements; 23 (D) maintaining personnel records for each consumer directed personal 24 assistant, including time sheets and other documentation needed for 25 wages and benefit processing and a copy of the medical documentation 26 required pursuant to regulations established by the commissioner; 27 (E) ensuring that the health status of each consumer directed personal 28 assistant is assessed prior to service delivery pursuant to regulations 29 issued by the commissioner; 30 (F) maintaining records of authorizations or reauthorizations of 31 services; 32 (G) monitoring the consumer's or, if applicable, the designated repre- 33 sentative's continuing ability to fulfill the consumer's responsibil- 34 ities under the program and promptly notifying the authorizing entity of 35 any circumstance that may affect the consumer's or, if applicable, the 36 designated representative's ability to fulfill such responsibilities; 37 (H) complying with regulations established by the commissioner speci- 38 fying the responsibilities of providers providing services under this 39 title; and 40 (I) entering into a department approved memorandum of understanding 41 with the consumer that describes the parties' responsibilities under 42 this program. 43 (iii) Fiscal intermediaries are not responsible for, and fiscal inter- 44 mediary services shall not include, fulfillment of the responsibilities 45 of the consumer or, if applicable, the consumer's designated represen- 46 tative as established by the commissioner. A fiscal intermediary's 47 responsibilities shall not include, and a fiscal intermediary shall not 48 engage in: managing the plan of care including recruiting and hiring a 49 sufficient number of individuals who meet the definition of consumer 50 directed personal assistant, as such term is defined by the commission- 51 er, to provide authorized services that are included on the consumer's 52 plan of care; training, supervising and scheduling each consumer 53 directed personal assistant; terminating the consumer directed personal 54 assistant's employment; or assuring that each consumer directed personal 55 assistant competently and safely performs the personal care services, 56 home health aide services and skilled nursing tasks that are included onA. 3007--A 83 1 the consumer's plan of care. A fiscal intermediary shall exercise 2 reasonable care in properly carrying out its responsibilities under the 3 program. 4 (b) No entity shall provide, directly or through contract, fiscal 5 intermediary services without a certification as a fiscal intermediary 6 issued by the commissioner in accordance with this subdivision. 7 (c) An application for certification as a fiscal intermediary shall be 8 filed with the commissioner, together with such other forms and informa- 9 tion as shall be prescribed by, or acceptable to the commissioner. Such 10 information shall include, but not be limited to: 11 (i) the name, employer identification number, and Medicaid provider 12 identification number of the organization, including any subsidiary 13 corporations, if applicable, and any name under which the entity does 14 business; 15 (ii) all addresses at which the organization operates; 16 (iii) the names, titles and contact information of all officers and 17 directors in a not-for-profit company or business, or managers in a 18 limited liability company, as well as the name and employment history of 19 the individual ultimately accountable for operation of the fiscal inter- 20 mediary; and for a not-for-profit entity, the number of director posi- 21 tions set by the company's by-laws, and how many are currently filled; 22 (iv) a history of the organization, along with an overview of the 23 organization and all services it offers, including any relationships 24 with outside agencies that may influence in any way the ability of the 25 organization to provide fiscal intermediary services consistent with the 26 manner described in its application; 27 (v) all policies and procedures of the fiscal intermediary, including 28 any contracts or other documents used in communications with consumers; 29 (vi) plans to solicit and consider input from the fiscal interme- 30 diary's consumers, staff, personal assistants and other interested 31 parties which may be charged with roles including, but not limited to, 32 quality assurance review, referral, program monitoring or development or 33 establishing and responding to community needs; such input may be in the 34 form of a board of directors, committee, survey, or other mechanism, 35 provided that the majority of input obtained as part of this process 36 must be from individual consumers and consumer advocates of the fiscal 37 intermediary; 38 (vii) the organization's plan to address the needs of consumers and 39 their personal assistants in a timely manner, regardless of where they 40 live, including, but not limited to, input from consumers, obtaining 41 physicals and other health information from personal assistants, obtain- 42 ing time records for payroll, and timely processing of payroll; and 43 (viii) a written sworn statement by an officer of the entity disclos- 44 ing any pending litigation, unsatisfied judgments or penalties, 45 convictions for fraud or sanctions imposed by government authorities. 46 (d) The entity shall reasonably promptly notify the department of any 47 change in the information submitted to the department for certification 48 under this subdivision. 49 (e) The commissioner shall not approve an application for certif- 50 ication unless he or she is satisfied as to the character, competence 51 and standing in the community of the applicant's incorporators, direc- 52 tors, sponsors, stockholders or operators and finds that the personnel, 53 rules, consumer contracts or agreements, and fiscal intermediary 54 services are fit and adequate, and that the fiscal intermediary services 55 will be provided in the manner required by this subdivision and theA. 3007--A 84 1 rules and regulations hereunder, in a manner determined by the commis- 2 sioner. 3 (f) The commissioner may contract with an entity with appropriate 4 knowledge, expertise and experience possessing extensive knowledge of 5 consumer directed personal assistance fiscal intermediary services and 6 which has a history of providing similar services in relation to a self- 7 directed program to develop and to assist the commissioner in evaluating 8 applicants for certifications or readiness reviews to be a fiscal inter- 9 mediary. 10 (g) Neither public need, tax status nor profit-making status shall be 11 a criterion for certification under this subdivision. Status as a 12 licensed home care services agency or other health provider shall not 13 positively or negatively affect an application for certification under 14 this subdivision. An organization authorized pursuant to article 15 forty-four of the public health law shall not be a fiscal intermediary. 16 (h) A certification under this subdivision shall last for a period of 17 five years. Upon application for a renewal, the fiscal intermediary 18 shall submit up to date information to the commissioner. 19 (i) The commissioner shall charge applicants for the certification an 20 application fee of one thousand dollars. 21 4-b. Proceedings involving the certification of a fiscal intermediary. 22 (a) A certification of a fiscal intermediary may be revoked, suspended, 23 limited or annulled by the commissioner on proof that it has failed to 24 comply with the provisions of this subdivision or regulations promulgat- 25 ed hereunder. 26 (b) No such certification shall be revoked, suspended, limited, 27 annulled or denied without a hearing. However, a certification may be 28 temporarily suspended or limited without a hearing for a period not in 29 excess of thirty days upon written notice to the fiscal intermediary 30 following a finding by the department that the public health or safety 31 is in imminent danger. Such period may be renewed upon written notice 32 and a continued finding under this paragraph. 33 (c) The commissioner shall fix a time and place for the hearing. A 34 copy of the charges, together with the notice of the time and place of 35 the hearing, shall be served in person or mailed by registered or certi- 36 fied mail to the fiscal intermediary at least twenty-one days before the 37 date fixed for the hearing. The fiscal intermediary shall file with the 38 department not less than eight days prior to the hearing, a written 39 answer to the charges. 40 (d) All orders or determinations under this subdivision shall be 41 subject to review as provided in article seventy-eight of the civil 42 practice law and rules. 43 § 2. Section 365-a of the social services law is amended by adding a 44 new subdivision 10 to read as follows: 45 10. For any determination of the amount, nature and manner of provid- 46 ing long term care assistance under this article for which an assessment 47 tool is used, the department, in consultation with the independent actu- 48 ary, representatives of medical assistance recipients, representatives 49 of the managed care programs, representatives of long term care provid- 50 ers and other interested parties, shall evaluate existing assessment 51 tools and develop additional professionally and statistically valid 52 assessment tools to be used to assist in determining the amount, nature 53 and manner of services and care needs of individuals which shall involve 54 consideration of variables including but not limited to physical and 55 behavioral functioning; activities of daily living and instrumental 56 activities of daily living; family, social or geographic determinants ofA. 3007--A 85 1 health; primary or secondary diagnoses of cognitive impairment or mental 2 illness; and other appropriate conditions or factors. 3 § 3. Paragraphs (c) of subdivision 18 of section 364-j of the social 4 services law, as added by sections 40-c and 55 of part B of chapter 57 5 of the laws of 2015, are amended to read as follows: 6 (c) (i) In setting such reimbursement methodologies, the department 7 shall consider costs borne by the managed care program to ensure actuar- 8 ially sound and adequate rates of payment to ensure quality of care for 9 its enrollees and shall reflect the costs associated with all applicable 10 federal and state laws and regulations, including, but not limited to, 11 those relating to wages, labor, and actuarial soundness. 12 [(c)] (ii) The department [of health] shall require the independent 13 actuary selected pursuant to paragraph (b) of this subdivision to 14 provide a complete actuarial memorandum, along with all actuarial 15 assumptions made and all other data, materials and methodologies used in 16 the development of rates, to managed care providers thirty days prior to 17 submission of such rates to the centers for medicare and medicaid 18 services for approval. Managed care providers may request additional 19 review of the actuarial soundness of the rate setting process and/or 20 methodology. 21 (iii) In fulfilling the requirements of this paragraph, the department 22 shall establish separate rate cells to reflect the costs of care for 23 specific high-need enrollees in managed care providers. The commissioner 24 shall make any necessary amendments to the state plan for medical 25 assistance under section three hundred sixty-three-a of this title, and 26 submit any applications for waivers of the federal social security act, 27 as may be necessary to ensure federal financial participation. As used 28 in this subparagraph and subparagraph (iv) of this paragraph, "managed 29 care provider" shall mean a managed care provider operating on a full 30 capitation basis or a managed long term care plan operating under 31 section forty-four hundred three-f of the public health law; and "long 32 term care entity" shall mean a residential health care facility under 33 article twenty-eight of the public health law, home care services agency 34 under article thirty-six of the public health law, a fiscal intermediary 35 in the consumer directed personal assistance program, other long term 36 care provider authorized under a home and community based waiver admin- 37 istered by the department or the office for people with developmental 38 disabilities. The high-need rate cells established in accordance with 39 this subparagraph shall be consistent with subdivision ten of section 40 three hundred sixty-five-a of this title and include, but shall not be 41 limited to: 42 (A) individuals who are in a residential health care facility; 43 (B) individuals enrolled with a managed care provider, who remain in 44 the community and who daily receive live-in twenty-four hour personal 45 care or home health services or twelve hours or more of personal care, 46 home health services or home and community support services; 47 (C) such other individuals who, based on the assessment of their care 48 needs, their diagnosis or other factors, are determined to present espe- 49 cially high needs related to factors that would influence the delivery 50 (including but not limited to home location) or their use of services, 51 as may be identified by the department. 52 (iv) Any contract for services under this title by a managed care 53 provider with a long term care entity shall ensure that resources made 54 available by the payer under such contract will support the recruitment, 55 hiring, training and retention of a qualified workforce capable of 56 providing quality care, including compliance with all applicable federalA. 3007--A 86 1 and state laws and regulations, including, but not limited to, those 2 relating to wages and labor. A managed care provider with a long term 3 care entity shall report its method of compliance with this subdivision 4 to the department as a component of cost reports required under section 5 forty-four hundred three-f of the public health law. 6 (v) A long term care entity that contracts with a managed care provid- 7 er shall annually submit written certification to the department as a 8 component of cost reports required under sections twenty-eight hundred 9 eight and thirty-six hundred twelve of the public health law and section 10 three hundred sixty-seven-q of this title, as applicable, as to how it 11 applied the amounts paid in compliance with this subdivision to support 12 the recruitment, hiring, training and retention of a qualified workforce 13 capable of providing quality care and consistent with section three 14 hundred sixty-five-a of this title. 15 § 4. Subparagraph (ii) of paragraph (a) and paragraph (g) of subdivi- 16 sion 7 and subdivision 8 of section 4403-f of the public health law, 17 subparagraph (ii) of paragraph (a) of subdivision 7 as amended by 18 section 43 of part C of chapter 60 of the laws of 2014, paragraph (g) of 19 subdivision 7 as amended by section 41-b of part H of chapter 59 of the 20 laws of 2011, subparagraph (iii) of paragraph (g) of subdivision 7 as 21 amended by section 54 of part A of chapter 56 of the laws of 2013 and 22 subdivision 8 as amended by section 21 of part B of chapter 59 of the 23 laws of 2016, are amended to read as follows: 24 (ii) Notwithstanding any inconsistent provision of the social services 25 law to the contrary, the commissioner shall, pursuant to regulation, 26 determine whether and the extent to which the applicable provisions of 27 the social services law or regulations relating to approvals and author- 28 izations of, and utilization limitations on, health and long term care 29 services reimbursed pursuant to title XIX of the federal social security 30 act, including, but not limited to, fiscal assessment requirements, are 31 inconsistent with the flexibility necessary for the efficient adminis- 32 tration of managed long term care plans and such regulations shall 33 provide that such provisions shall not be applicable to enrollees or 34 managed long term care plans, provided that such determinations are 35 consistent with applicable federal law and regulation, and subject to 36 the provisions of [subdivision] subdivisions eight and ten of section 37 three hundred sixty-five-a and paragraph (c) of subdivision eighteen of 38 section three hundred sixty-four-j of the social services law. 39 (g) (i) Managed long term care plans and demonstrations may enroll 40 eligible persons in the plan or demonstration upon the completion of a 41 comprehensive assessment [that shall include, but not be limited to, an42evaluation of the medical, social and environmental needs] of each 43 prospective enrollee in such program consistent with section three 44 hundred sixty-five-a of the social services law. This assessment shall 45 also serve as the basis for the development and provision of an appro- 46 priate plan of care for the enrollee. Upon approval of federal waivers 47 pursuant to paragraph (b) of this subdivision which require medical 48 assistance recipients who require community-based long term care 49 services to enroll in a plan, and upon approval of the commissioner, a 50 plan may enroll an applicant who is currently receiving home and commu- 51 nity-based services and complete the comprehensive assessment within 52 thirty days of enrollment provided that the plan continues to cover 53 transitional care until such time as the assessment is completed. 54 (ii) The assessment shall be completed by a representative of the 55 managed long term care plan or demonstration, in consultation with the 56 prospective enrollee's health care practitioner as necessary. TheA. 3007--A 87 1 commissioner shall prescribe the forms on which the assessment shall be 2 made. 3 (iii) The enrollment application shall be submitted by the managed 4 long term care plan or demonstration to the entity designated by the 5 department prior to the commencement of services under the managed long 6 term care plan or demonstration. Enrollments conducted by a plan or 7 demonstration shall be subject to review and audit by the department or 8 a contractor selected pursuant to paragraph (d) of this subdivision. 9 (iv) Continued enrollment in a managed long term care plan or demon- 10 stration paid for by government funds shall be based upon a comprehen- 11 sive assessment [of the medical, social and environmental needs] of the 12 recipient of the services consistent with section three hundred sixty- 13 five-a of this social services law. Such assessment shall be performed 14 at least every six months by the managed long term care plan serving the 15 enrollee. The commissioner shall prescribe the forms on which the 16 assessment will be made. 17 8. Payment rates for managed long term care plan enrollees eligible 18 for medical assistance. The commissioner shall establish payment rates 19 for services provided to enrollees eligible under title XIX of the 20 federal social security act. Such payment rates shall be subject to 21 approval by the director of the division of the budget and shall reflect 22 savings to both state and local governments when compared to costs which 23 would be incurred by such program if enrollees were to receive compara- 24 ble health and long term care services on a fee-for-service basis in the 25 geographic region in which such services are proposed to be provided. 26 Payment rates shall be risk-adjusted to take into account the character- 27 istics of enrollees, or proposed enrollees, including, but not limited 28 to: frailty, disability level, health and functional status, age, 29 gender, the nature of services provided to such enrollees, and other 30 factors as determined by the commissioner. The risk adjusted premiums 31 may also be combined with disincentives or requirements designed to 32 mitigate any incentives to obtain higher payment categories. In setting 33 such payment rates, the commissioner shall consider costs borne by the 34 managed care program to ensure actuarially sound and adequate rates of 35 payment to ensure quality of care [shall comply] and the costs associ- 36 ated with compliance with all applicable laws and regulations, state and 37 federal, including [regulations as to], but not limited to, those relat- 38 ing to wages, labor and actuarial soundness [for medicaid managed care]. 39 § 5. Subparagraph (i) of paragraph (g) of subdivision 7 of section 40 4403-f of the public health law, as added by section 65-c of part A of 41 chapter 57 of the laws of 2006 and such paragraph as relettered by 42 section 20 of part C of chapter 58 of the laws of 2007, is amended to 43 read as follows: 44 (i) Managed long term care plans and demonstrations may enroll eligi- 45 ble persons in the plan or demonstration upon the completion of a 46 comprehensive assessment [that shall include, but not be limited to, an47evaluation of the medical, social and environmental needs] of each 48 prospective enrollee in such program consistent with section three 49 hundred sixty-five-a of the social services law. This assessment shall 50 also serve as the basis for the development and provision of an appro- 51 priate plan of care for the prospective enrollee. 52 § 6. Section 364-j of the social services law is amended by adding a 53 new subdivision 33 to read as follows: 54 33. For services under this title provided by residential health care 55 facilities under article twenty-eight of the public health law, the 56 commissioner shall direct managed care organizations licensed underA. 3007--A 88 1 article forty-four of the public health law, article forty-three of the 2 insurance law, and this section, to continue to reimburse at a benchmark 3 rate which is to be the fee-for-service rate calculated pursuant to 4 section twenty-eight hundred eight of the public health law. The bench- 5 mark fee-for-service rate shall continue to be paid by such managed care 6 organizations for all services provided by residential healthcare facil- 7 ities from the effective date of this subdivision at least until Decem- 8 ber thirty-first, two thousand twenty-two. 9 § 7. Subdivision 10 of section 3614 of the public health law, as 10 amended by section 5 of part C of chapter 109 of the laws of 2006, para- 11 graph (a) as amended by section 57 of part A of chapter 56 of the laws 12 of 2013, is amended to read as follows: 13 10. (a) Such adjustments to rates of payments shall be allocated 14 proportionally based on each certified home health agency, long term 15 home health care program, AIDS home care and hospice program's home 16 health aide or other direct care services total annual hours of service 17 provided to medicaid patients, as reported in each such agency's most 18 recently available cost report as submitted to the department or for the 19 purpose of the managed long term care program a suitable proxy developed 20 by the department in consultation with the interested parties. Payments 21 made pursuant to this section shall not be subject to subsequent adjust- 22 ment or reconciliation; provided that such adjustments to rates of 23 payments to certified home health agencies shall only be for that 24 portion of services provided to children under eighteen years of age and 25 for services provided to a special needs population of medically complex 26 and fragile children, adolescents and young disabled adults by a CHHA 27 operating under a pilot program approved by the department. 28 (b) Programs which have their rates adjusted pursuant to this subdivi- 29 sion shall use such funds solely for the purposes of recruitment, train- 30 ing and retention of non-supervisory home care services workers or other 31 personnel with direct patient care responsibility. Such purpose shall 32 include the recruitment, training and retention of non-supervisory home 33 care services workers or any worker with direct patient care responsi- 34 bility employed in licensed home care services agencies under contract 35 with such agencies. Such agencies are prohibited from using such fund 36 for any other purpose. For purposes of the long term home health care 37 program, such payment shall be treated as supplemental payments and not 38 effect any current cost cap requirement. For purposes of the managed 39 long term care program, plans shall distribute such funds in their 40 entirety using a reasonable methodology. Such payments shall be supple- 41 mental to reimbursement rates, and plans shall provide written notifica- 42 tion to each contracted agency indicating the amount of funds disbursed 43 for the purpose of recruitment, training and retention of non-superviso- 44 ry home care services workers or any personnel with direct patient care 45 responsibility. Each such agency shall submit, at a time and in a manner 46 determined by the commissioner, a written certification attesting that 47 such funds will be used solely for the purpose of recruitment, training 48 and retention of non-supervisory home health aides or any personnel with 49 direct patient care responsibility. When submitting attestations to the 50 department, managed long term care plans shall include the methodology 51 utilized in the disbursement of funds. The commissioner is authorized to 52 audit each such agency or program to ensure compliance with the written 53 certification required by this subdivision and shall recoup any funds 54 determined to have been used for purposes other than recruitment and 55 retention of non-supervisory home health aides or other personnel withA. 3007--A 89 1 direct patient care responsibility. Such recoupment shall be in addition 2 to any other penalties provided by law. 3 (c) In the case of services provided by such agencies or programs 4 through contracts with licensed home care services agencies, rate 5 increases received by such agencies or programs pursuant to this subdi- 6 vision shall be reflected, consistent with the purposes of this subdivi- 7 sion, in either the fees paid or benefits or other supports, including 8 training, provided to non-supervisory home health aides or any other 9 personnel with direct patient care responsibility of such contracted 10 licensed home care services agencies and such fees, benefits or other 11 supports shall be proportionate to the contracted volume of services 12 attributable to each contracted agency. Such agencies or programs shall 13 submit to providers with which they contract written certifications 14 attesting that such funds will be used solely for the purposes of 15 recruitment, training and retention of non-supervisory home health aides 16 or other personnel with direct patient care responsibility and shall 17 maintain in their files expenditure plans specifying how such funds will 18 be used for such purposes. The commissioner is authorized to audit such 19 agencies or programs to ensure compliance with such certifications and 20 expenditure plans and shall recoup any funds determined to have been 21 used for purposes other than those set forth in this subdivision. Such 22 recoupment shall be in addition to any other penalties provided by law. 23 (d) Funds under this subdivision are not intended to supplant support 24 provided by local government. 25 (e) The department shall provide a report to the chairs of the senate 26 finance committee, assembly ways and means committee, and senate health 27 and assembly health committees. Such report shall be submitted on or 28 before January first, two thousand eighteen and shall include the 29 distribution of monies by plan and provider of the funds set forth in 30 this subdivision. 31 § 8. Section 3614-c of the public health law, as amended by chapter 56 32 of the laws of 2016, subparagraph (iv) of paragraph (a) of subdivision 3 33 as amended by section 1 and subparagraph (iv) of paragraph (b) of subdi- 34 vision 3 as amended by section 2 of part E of chapter 73 of the laws of 35 2016, is amended to read as follows: 36 § 3614-c. Home care worker wage parity. 1. As used in this section, 37 the following terms shall have the following meaning: 38 (a) "Living wage law" means any law enacted by Nassau, Suffolk or 39 Westchester county or a city with a population of one million or more 40 which establishes a minimum wage for some or all employees who perform 41 work on contracts with such county or city. 42 (b) "Total compensation" means all wages and other direct compensation 43 paid to or provided on behalf of the employee including, but not limited 44 to, wages, health, education or pension benefits, supplements in lieu of 45 benefits and compensated time off, except that it does not include 46 employer taxes or employer portion of payments for statutory benefits, 47 including but not limited to FICA, disability insurance, unemployment 48 insurance and workers' compensation. 49 (c) "Prevailing rate of total compensation" means the average hourly 50 amount of total compensation paid to all home care aides covered by 51 whatever collectively bargained agreement covers the greatest number of 52 home care aides in a city with a population of one million or more. For 53 purposes of this definition, any set of collectively bargained agree- 54 ments in such city with substantially the same terms and conditions 55 relating to total compensation shall be considered as a single collec- 56 tively bargained agreement.A. 3007--A 90 1 (d) "Home care aide" means a home health aide, personal care aide, 2 home attendant, personal assistant performing consumer directed personal 3 assistance services pursuant to section three hundred sixty-five-f of 4 the social services law, or other licensed or unlicensed person whose 5 primary responsibility includes the provision of in-home assistance with 6 activities of daily living, instrumental activities of daily living or 7 health-related tasks; provided, however, that home care aide does not 8 include any individual (i) working on a casual basis, or (ii) (except 9 for a person employed under the consumer directed personal care program 10 under section three hundred sixty-five-f of the social services law) who 11 is a relative through blood, marriage or adoption of: (1) the employer; 12 or (2) the person for whom the worker is delivering services, under a 13 program funded or administered by federal, state or local government. 14 (e) "Managed care plan" means any managed care program, organization 15 or demonstration covering personal care or home health aide services, 16 and which receives premiums funded, in whole or in part, by the New York 17 state medical assistance program, including but not limited to all Medi- 18 caid managed care, Medicaid managed long term care, Medicaid advantage, 19 and Medicaid advantage plus plans and all programs of all-inclusive care 20 for the elderly. 21 (f) "Episode of care" means any service unit reimbursed, in whole or 22 in part, by the New York state medical assistance program, whether 23 through direct reimbursement or covered by a premium payment, and which 24 covers, in whole or in part, any service provided by a home care aide, 25 including but not limited to all service units defined as visits, hours, 26 days, months or episodes. 27 (g) "Cash portion of the minimum rate of home care [aid] aide total 28 compensation" means the minimum amount of home care aide total compen- 29 sation that may be paid in cash wages, as determined by the department 30 in consultation with the department of labor. 31 (h) "Benefit portion of the minimum rate of home care aide total 32 compensation" means the portion of home care aide total compensation 33 that may be paid in cash or health, education or pension benefits, wage 34 differentials, supplements in lieu of benefits and compensated time off, 35 as determined by the department in consultation with the department of 36 labor. Cash wages paid pursuant to increases in the state or federal 37 minimum wage cannot be used to satisfy the benefit portion of the mini- 38 mum rate of home care aide total compensation. 39 2. Notwithstanding any inconsistent provision of law, rule or regu- 40 lation, no payments by government agencies shall be made to certified 41 home health agencies, long term home health care programs [or], managed 42 care plans, or the consumer directed personal care program under section 43 three hundred sixty-five-f of the social services law, for any episode 44 of care furnished, in whole or in part, by any home care aide who is 45 compensated at amounts less than the applicable minimum rate of home 46 care aide total compensation established pursuant to this section. 47 3. (a) The minimum rate of home care aide total compensation in a city 48 with a population of one million or more shall be: 49 (i) for the period March first, two thousand twelve through February 50 twenty-eighth, two thousand thirteen, ninety percent of the total 51 compensation mandated by the living wage law of such city; 52 (ii) for the period March first, two thousand thirteen through Febru- 53 ary twenty-eighth, two thousand fourteen, ninety-five percent of the 54 total compensation mandated by the living wage law of such city; 55 (iii) for the period March first, two thousand fourteen through March 56 thirty-first two thousand sixteen, no less than the prevailing rate ofA. 3007--A 91 1 total compensation as of January first, two thousand eleven, or the 2 total compensation mandated by the living wage law of such city, which- 3 ever is greater; 4 (iv) for all periods on or after April first, two thousand sixteen, 5 the cash portion of the minimum rate of home care aide total compen- 6 sation shall be ten dollars or the minimum wage as laid out in paragraph 7 (a) of subdivision one of section six hundred fifty-two of the labor 8 law, whichever is higher. The benefit portion of the minimum rate of 9 home care aide total compensation shall be four dollars and nine cents. 10 (b) The minimum rate of home care aide total compensation in the coun- 11 ties of Nassau, Suffolk and Westchester shall be: 12 (i) for the period March first, two thousand thirteen through February 13 twenty-eighth, two thousand fourteen, ninety percent of the total 14 compensation mandated by the living wage law as set on March first, two 15 thousand thirteen of a city with a population of a million or more; 16 (ii) for the period March first, two thousand fourteen through Febru- 17 ary twenty-eighth, two thousand fifteen, ninety-five percent of the 18 total compensation mandated by the living wage law as set on March 19 first, two thousand fourteen of a city with a population of a million or 20 more; 21 (iii) for the period March first, two thousand fifteen, through Febru- 22 ary twenty-eighth, two thousand sixteen, one hundred percent of the 23 total compensation mandated by the living wage law as set on March 24 first, two thousand fifteen of a city with a population of a million or 25 more; 26 (iv) for all periods on or after March first, two thousand sixteen, 27 the cash portion of the minimum rate of home care aide total compen- 28 sation shall be ten dollars or the minimum wage as laid out in paragraph 29 (b) of subdivision one of section six hundred fifty-two of the labor 30 law, whichever is higher. The benefit portion of the minimum rate of 31 home care aide total compensation shall be three dollars and twenty-two 32 cents. 33 4. The terms of this section shall apply equally to services provided 34 by home care aides who work on episodes of care as direct employees of 35 certified home health agencies, long term home health care programs, or 36 managed care plans, or as employees of licensed home care services agen- 37 cies, limited licensed home care services agencies, or the consumer 38 directed personal care program under section three hundred sixty-five-f 39 of the social services law, or under any other arrangement. 40 5. No payments by government agencies shall be made to certified home 41 health agencies, long term home health care programs, [or] managed care 42 plans, or the consumer directed personal care program under section 43 three hundred sixty-five-f of the social services law, for any episode 44 of care without the certified home health agency, long term home health 45 care program, [or] managed care plan or the consumer directed personal 46 care program having delivered prior written certification to the commis- 47 sioner, on forms prepared by the department in consultation with the 48 department of labor, that all services provided under each episode of 49 care are in full compliance with the terms of this section and any regu- 50 lations promulgated pursuant to this section. 51 6. If a certified home health agency or long term home health care 52 program elects to provide home care aide services through contracts with 53 licensed home care services agencies or through other third parties, 54 provided that the episode of care on which the home care aide works is 55 covered under the terms of this section, the certified home health agen- 56 cy, long term home health care program, or managed care plan must obtainA. 3007--A 92 1 a written certification from the licensed home care services agency or 2 other third party, on forms prepared by the department in consultation 3 with the department of labor, which attests to the licensed home care 4 services agency's or other third party's compliance with the terms of 5 this section. Such certifications shall also obligate the certified home 6 health agency, long term home health care program, or managed care plan 7 to obtain, on no less than a quarterly basis, all information from the 8 licensed home care services agency or other third parties necessary to 9 verify compliance with the terms of this section. Such certifications 10 and the information exchanged pursuant to them shall be retained by all 11 certified home health agencies, long term home health care programs, or 12 managed care plans, and all licensed home care services agencies, or 13 other third parties for a period of no less than ten years, and made 14 available to the department upon request. 15 7. The commissioner shall distribute to all certified home health 16 agencies, long term home health care programs, [and] managed care plans, 17 and fiscal intermediaries in the consumer directed personal care program 18 under section three hundred sixty-five-f of the social services law, 19 official notice of the minimum rates of home care aide compensation at 20 least one hundred twenty days prior to the effective date of each mini- 21 mum rate for each social services district covered by the terms of this 22 section. 23 8. The commissioner is authorized to promulgate regulations, and may 24 promulgate emergency regulations, to implement the provisions of this 25 section. 26 9. Nothing in this section should be construed as applicable to any 27 service provided by certified home health agencies, long term home 28 health care programs, [or] managed care plans, or consumer directed 29 personal care program under section three hundred sixty-five-f of the 30 social services law except for all episodes of care reimbursed in whole 31 or in part by the New York Medicaid program. 32 10. No certified home health agency, managed care plan [or], long term 33 home health care program, or fiscal intermediary in the consumer 34 directed personal care program under section three hundred sixty-five-f 35 of the social services law shall be liable for recoupment of payments 36 for services provided through a licensed home care services agency or 37 other third party with which the certified home health agency, long term 38 home health care program, or managed care plan has a contract because 39 the licensed agency or other third party failed to comply with the 40 provisions of this section if the certified home health agency, long 41 term home health care program, [or] managed care plan, or fiscal inter- 42 mediary has reasonably and in good faith collected certifications and 43 all information required pursuant to subdivisions five and six of this 44 section. 45 § 9. This act shall take effect on the first of January after it shall 46 have become a law, provided that prior to that date, the commissioner of 47 health shall make regulations and take other actions reasonably neces- 48 sary to implement this act on that date, and provided further that: 49 a. sections three and four of this act shall take effect April 1, 50 2018; 51 b. the amendments to section 364-j of the social services law made by 52 sections three and six of this act shall not affect the repeal of such 53 section and shall be deemed repealed therewith; 54 c. the amendments to section 4403-f of the public health law made by 55 section four of this act shall not affect the repeal of such section and 56 shall be deemed repealed therewith;A. 3007--A 93 1 d. the amendments to subparagraph (i) of paragraph (g) of subdivision 2 7 of section 4403-f of the public health law made by section four of 3 this act shall not affect the expiration and reversion of such subpara- 4 graph, pursuant to subdivision (i) of section 111 of part H of chapter 5 59 of the laws of 2011, as amended, when upon such date the provisions 6 of section five of this act shall take effect; and 7 e. any entity operating as a fiscal intermediary prior to this act 8 becoming a law may continue to do so for one year after this act takes 9 effect, and may continue to do so after that time only upon obtaining 10 certification under this act. 11 PART X 12 Section 1. Section 364-j of the social services law is amended by 13 adding a new subdivision 33 to read as follows: 14 33. (a) Thirty days prior to implementing or adjusting a rate, premi- 15 um, component of premium, add-on payment, quality pool, or other rate 16 component related to a managed care provider as defined in this section, 17 the commissioner of health shall provide written notice to the chairs of 18 the senate finance committee, the senate health committee, the assembly 19 ways and means committee, and the assembly health committee, with 20 regards to such actions. 21 (b) Such notice shall include, but not be limited to, a detailed 22 description of all components included in the action, the fiscal impact 23 of the action, the policy rationale for implementing the action, the 24 specific service sectors that would be impacted by the action, the meth- 25 odology used to determine the components of such action, the plan 26 specific impacts of the action, the provider specific impacts of the 27 action, any specific project descriptions or requirements related to 28 such action, the multi-year impacts of the action, and the availability 29 of federal matching funds. 30 (c) The commissioner of health shall provide quarterly reports to the 31 chairs on the premiums for a managed care provider as defined in para- 32 graph (b) of subdivision one of this section, including an itemized list 33 of all rates, premiums, component of premiums, add-on payments, quality 34 pools, or other rate components for the previous quarter, including a 35 description of any modifications implemented within such period. 36 § 2. This act shall take effect immediately. 37 PART Y 38 Section 1. Notwithstanding any other provision of law to the contrary, 39 any state agency with 25 percent or more of their workforce accruing 40 overtime in a calendar year, and absent an emergency requiring a tempo- 41 rary increase in overtime hours, shall maintain all full time equivalent 42 positions from the previous year and in the event of any vacancy or 43 vacancies such positions shall be filled as they become available. State 44 agencies shall report the total number of agency workers and the total 45 number of workers accruing overtime from the previous calendar year, to 46 the legislature and the director of the budget by January 15 of each 47 year. In addition, any agency exceeding the overtime threshold as estab- 48 lished herein shall report on the number of full time equivalent posi- 49 tions that have been filled in accordance with this section and all 50 other efforts made to reduce overtime to beneath the threshold stated 51 herein. Each agency shall further report on the number of temporary 52 workers and per diem workers in positions in such agency and the specif-A. 3007--A 94 1 ic number of hours worked by each temporary and per diem worker. Such 2 report shall include the length of time such temporary workers or per 3 diem workers have been employed in each agency. 4 § 2. This act shall take effect immediately. 5 PART Z 6 Section 1. 1. In the event that the commissioner of the office of 7 mental health shall order the transfer of inpatient services from a 8 state operated facility to a facility licensed by article 28 of the 9 public health law, such article 28 facility shall: 10 (a) Demonstrate the ability to seek and increase payment from third 11 party payors including commercial health insurance; 12 (b) Maintain inpatient capacity; and 13 (c) Provide a clinically appropriate level of care for each patient 14 admitted, and effectively link each patient to appropriate after care 15 services. 16 2. In the event that the facility which has accepted the transfer of 17 inpatient services is no longer able to meet the criteria set forth in 18 subdivision one of this section, the office of mental health shall 19 resume the administration of such services. 20 3. Any savings related to the transfer of state operated inpatient 21 services from the office of mental health as set forth in this section 22 shall be reinvested and disbursed in accordance with section 97-dddd of 23 the state finance law. 24 4. In the event that inpatient services are reduced and such service 25 capacity is subsequently eliminated, any savings related thereto shall 26 be reinvested and disbursed in accordance with section 97-dddd of the 27 state finance law. 28 5. There shall be no reduction in any full time equivalent positions 29 due to the transfer of inpatient services from an office of mental 30 health state operated facility to a facility licensed by article 28 of 31 the public health law. Any employees transferred shall be transferred 32 pursuant to section 70 of the civil service law, without further exam- 33 ination or qualification to the same or similar titles and shall remain 34 in the same collective bargaining units and shall retain their respec- 35 tive civil service classifications, status and rights pursuant to their 36 collective bargaining units and collective bargaining agreements. 37 § 2. This act shall take effect immediately. 38 PART AA 39 Section 1. Section 364-j of the social services law is amended by 40 adding a new subdivision 34 to read as follows: 41 34. Enhanced safety net hospital program. (a) For the purposes of this 42 subdivision, "enhanced safety net hospital" means a hospital which, in 43 any of the previous three calendar years, has met the following crite- 44 ria: 45 (i)(A) not less than fifty percent of the patients it treats receive 46 medicaid or are medically uninsured; 47 (B) not less than forty percent of its inpatient discharges are 48 covered by medicaid; 49 (C) twenty-five percent or less of its discharged patients are commer- 50 cially insured; 51 (D) not less than three percent of the patients it provides services 52 to are attributed to the care of uninsured patients; andA. 3007--A 95 1 (E) provides care to uninsured patients in its emergency room, hospi- 2 tal based clinics and community based clinics, including the provision 3 of important community services, such as dental care and prenatal care; 4 (ii) is a public hospital operated by a county, municipality, public 5 benefit corporation, or the state university of New York; or 6 (iii) is federally designated as a critical access or sole community 7 hospital. 8 (b) The commissioner shall establish an enhanced safety net hospital 9 program (referred to in this subdivision as "the program") to provide 10 for additional annual medical assistance payments under this section to 11 enhanced safety net hospitals for the purposes of ensuring the continued 12 availability of services by providing additional support for critically 13 needed health care services and to ensure the continued maintenance and 14 operation of such hospitals, to reflect the increased costs associated 15 with being an enhanced safety net hospital. The program shall provide 16 for increased payments by managed care providers to such hospitals in 17 addition to what the managed care providers would ordinarily pay to such 18 hospitals, and increased premium payments by the medical assistance 19 program to the managed care providers to accommodate such increased 20 payments to hospitals. 21 (c) Payments by managed care providers to such hospitals shall be 22 proportional to each such hospital's number of discharges of patients 23 who are enrolled in medical assistance under this title or are unin- 24 sured. 25 (d) Total payments by the medical assistance program to managed care 26 providers under the program shall be as appropriated. The commissioner 27 shall develop a formula for such payments considering the amount appro- 28 priated, each such hospital's number of discharges of patients who are 29 enrolled in medical assistance under this title or are uninsured, and 30 the amount ordinarily paid by the medical assistance program other than 31 under this section for each such hospital's discharges. 32 (e) Payment of the non-federal share of the medical assistance 33 payments made pursuant to this subdivision shall be the responsibility 34 of the state and shall not include a local share. 35 (f) Payments under this subdivision shall be consistent with federal 36 regulations and shall not be at a level that would jeopardize or dimin- 37 ish federal financial participation, and shall not supplant the use of 38 other funds for enhanced safety net hospitals. 39 (g) For payments under this subdivision, the commissioner may estab- 40 lish reasonable terms and conditions, consistent with this subdivision, 41 to ensure continued programs by enhanced safety net hospitals for health 42 care delivery system reform. 43 § 2. Notwithstanding any provision of law to the contrary, for the 44 period April 1, 2017 to March 31, 2018, the commissioner of health shall 45 not take any action with the purpose of reducing payment for general 46 hospital emergency services visits provided to patients eligible for 47 medical assistance pursuant to title eleven of article five of the 48 social services law, including such patients enrolled in organizations 49 operating in accordance with the provisions of article forty-four of the 50 public health law or in health maintenance organizations organized and 51 operating in accordance with article forty-three of the insurance law. 52 § 3. This act shall take effect April 1, 2017 and shall be deemed to 53 have been in full force and effect on and after such date; provided, 54 however, that the amendments to section 364-j of the social services law 55 made by section one of this act shall not affect the repeal of such 56 section and shall be deemed repealed therewith.A. 3007--A 96 1 PART BB 2 Section 1. Section 4 of chapter 495 of the laws of 2004, amending the 3 insurance law and the public health law relating to the New York state 4 health insurance continuation assistance demonstration project, as 5 amended by section 1 of part AA of chapter 54 of the laws of 2016, is 6 amended to read as follows: 7 § 4. This act shall take effect on the sixtieth day after it shall 8 have become a law; provided, however, that this act shall remain in 9 effect until July 1, [2017] 2018 when upon such date the provisions of 10 this act shall expire and be deemed repealed; provided, further, that a 11 displaced worker shall be eligible for continuation assistance retroac- 12 tive to July 1, 2004. 13 § 2. This act shall take effect immediately. 14 § 2. Severability clause. If any clause, sentence, paragraph, subdivi- 15 sion, section or part of this act shall be adjudged by any court of 16 competent jurisdiction to be invalid, such judgment shall not affect, 17 impair, or invalidate the remainder thereof, but shall be confined in 18 its operation to the clause, sentence, paragraph, subdivision, section 19 or part thereof directly involved in the controversy in which such judg- 20 ment shall have been rendered. It is hereby declared to be the intent of 21 the legislature that this act would have been enacted even if such 22 invalid provisions had not been included herein. 23 § 3. This act shall take effect immediately provided, however, that 24 the applicable effective date of Parts A through BB of this act shall be 25 as specifically set forth in the last section of such Parts.
