Relates to capital upgrades to certain residential health care facilities

S T A T E   O F   N E W   Y O R K
        ________________________________________________________________________

                                          10177

                                    I N  S E N A T E

                                       May 4, 2026
                                       ___________

        Introduced  by  Sen.  ASHBY  -- read twice and ordered printed, and when
          printed to be committed to the Committee on Health

        AN ACT to amend the public health law, in relation to  capital  upgrades
          to certain residential health care facilities

          THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
        BLY, DO ENACT AS FOLLOWS:

     1    Section 1.   Paragraph (d) of subdivision 2-a of section 2808  of  the
     2  public  health  law, as amended by section 52 of part B of chapter 57 of
     3  the laws of 2015, is amended to read as follows:
     4    (d) For facilities granted operating certificates on  or  after  March
     5  tenth, nineteen hundred seventy-five, recognition of real property costs
     6  in such regulations shall be based upon historical costs to the owner of
     7  the facility, provided that payment for real property costs shall not be
     8  in  excess of the actual debt service, including principal and interest,
     9  and payment with respect to owner's equity, and further  provided  that,
    10  subject  to federal financial participation, and subject to the approval
    11  of the commissioner, effective April first, two  thousand  fifteen,  the
    12  commissioner  may  modify  such  payments  for  real  property costs for
    13  purposes of effectuating a shared savings  program,  whereby  facilities
    14  share  a  minimum of fifty percent of savings, for facilities that elect
    15  to refinance their mortgage loans; AND FURTHER  PROVIDED  THAT  FOR  ANY
    16  RENOVATION  OR  NEW  CONSTRUCTION  OF A RESIDENTIAL HEALTH CARE FACILITY
    17  WHICH COMMENCES ON OR AFTER JULY FIRST, TWO THOUSAND TWENTY-FIVE,  THERE
    18  SHALL BE NO MINIMUM EQUITY REQUIREMENTS IN EXCESS OF 10 PERCENT OF TOTAL
    19  PROJECT  COSTS OR PER BED LIMITATIONS ON TOTAL PROJECT COSTS UTILIZED IN
    20  THE DETERMINATION OF PAYMENTS FOR REAL PROPERTY COSTS UNDER THIS ARTICLE
    21  FOR THE FOLLOWING FACILITIES: (I) ANY FACILITY WHICH RECEIVED  AN  AWARD
    22  PURSUANT  TO  SECTIONS  TWENTY-EIGHT HUNDRED TWENTY-FIVE-F, TWENTY-EIGHT
    23  HUNDRED TWENTY-FIVE-G OR  TWENTY-EIGHT  HUNDRED  TWENTY-FIVE-H  OF  THIS
    24  ARTICLE;  AND (II) ANY NON-STATE OPERATED PUBLIC RESIDENTIAL HEALTH CARE
    25  FACILITY. For purposes of this  subdivision,  owner's  equity  shall  be
    26  calculated  without  regard  to  any  surplus  created by revaluation of
    27  assets and shall not include amounts  resulting  from  mortgage  amorti-

         EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD15555-01-6
        S. 10177                            2

     1  zation  where  the  payment  therefor has been provided by real property
     2  cost reimbursement.
     3    §  2.  This act shall take effect immediately; provided, however, that
     4  the amendments to paragraph (d) of subdivision 2-a of  section  2808  of
     5  the  public  health law made by section one of this act shall be subject
     6  to the expiration and repeal of such paragraph and shall expire  and  be
     7  deemed repealed therewith.