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ASSEMBLY BILL #A9808-C Budget - Same as SENATE Uni. BILL #S6808-C

Budget Article VII (Internal # 24 - 2008

LAWS OF NEW YORK, 2008

CHAPTER 58

AN ACT to amend the elder law, in relation to reimbursement to partic- ipating provider pharmacies, prescription drug coverage; to amend the public health law, in relation to a universal vaccine study and certain reimbursements made to the coordinating council for services related to Alzheimer's disease and other dementia; to amend part X2 of chapter 62 of the laws of 2003, amending the public health law relating to allowing for the use of funds of the office of professional medical conduct for activities of the patient health information and quality improvement act of 2000, in relation to the effectiveness of such part; to amend the public health law and the state financelaw, in relation to establishing a patient safetycenter account; to amend the public health law, in relation to the transfer of adolescent pregnancy prevention and services to the departmentofhealth; to amend section 122 of part B of chapter 436 of the laws of 1997, amending the education law and other laws relating to "The Welfare Reform Act of 1997", in relation to services for pregnant adolescents; to amend the elder law, in relation to establishing an enriched social adult day services demonstration project; and to repeal certain provisions of the social services law, relating thereto; and providing for the repeal of certain provisions upon expiration thereof (Part A); 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 effectiveness of provisions thereof; to amend the public health law, in relation to the distribution of pool allocations and graduate medical education; 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 the public health law, in relation to health care initiative pool distributions; to amend the public authorities law, in relation to the transfer of certain funds; to amend the social services law, in relation to extending payment provisions for general hospitals; to amend chapter 600 of the laws of 1986 amending the public health law relating to the development of pilot reimbursement programs for ambulatory care services, in relation to the effectiveness of such chapter; to amend chapter 753 of the laws of 1989 amending the public health law and other laws relating to general hospital reimbursement for inpatient and ambulatory surgery, in relation to the effectiveness of portions thereof; 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 chapter 703 of the laws of 1988 relating to enacting the expanded health care coverage act of nineteen hundred eighty-eight and amending the insurance law and other laws relating to expanded health care and catastrophic health care coverage, in relation to extending certain provisions thereof; to EXPLANATION--Matter in italics is new; matter in brackets [] is old law to be omitted.

CHAP. 58 2

amend the public health law, in relation to continuing the priority restoration adjustment; to amend chapter 266 of the laws of 1986 amending the civil practice law and rules and other laws relating to malpractice and professional medical conduct, in relation to extending the applicability of certain provisions thereof; to amend the insurance law, in relation to liquidation of domestic insurers; to amend chapter 63 of the laws of 2001 amending chapter 20 of the laws of 2001 amending the military law and other laws relating to making appropriations for the support of government, in relation to extending the applicability of certain provisions thereof; to amend the publichealth law, in relation to comprehensive diagnostic and treatment centers indigent care program; to amend chapter 495 of the laws of 2004 amending the insurance law and the public health law relating to the New York state health insurance continuation assistance demonstration project, in relation to the effectiveness of such provisions; to amend the public health law, in relation to funding for expansion of cancer services; to amend the public health law, in relation to certain audits being deemed presumptively correct; to amend the public health law, in relation to inpatient rate adjustments; and to amend the public health law, in relation to the child health insurance plan and providing for the repeal of certain provisions of the public health law upon expiration thereof (Part B); to amend the social services law and the public health law, in relation to family health care plus, payments of insurance, hospital reimbursements; rates of payment for residential health care facilities, managed long term care plans, prescription drugs, general hospital reimbursements, hospital assessments, rates of payment for residential health care facilities, the long term care demonstration program, the medical assistance program, prescriber education, the prescription drug discount program, the graduate medical education innovations pool, physician loan repayment program; to amend the social services law, in relation to claims and false statements; to amend the tax law, in relation to the verification of income; to amend the state finance law, in relation to the health care reform act resources fund; to amend chapter 109 of the laws of 2006, amending the social services law and other laws relating to certain payments, in relation to prohibiting medical assistance payments for services provided by psychiatrists and federal financial participation; to amend chapter 58 of the laws of 2005, authorizing reimbursements for expenditures made by or on behalf of social services districts for medical assistance for needy persons and the administration thereof, in relation to the maximum allowable administrative costs; 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 effectiveness thereof; to amend chapter 649 of the laws of 1996 amending the public health law, the mental hygiene law and the social services law relating to authorizing the establishment of special needs plans, in relation to the effectiveness thereof; to amend chapter 904 of the laws of 1984, amending the public health law and the social services law relating to encouraging comprehensive health services, in relation to the effectiveness thereof; to amend chapter 57 of the laws of 2006, amending the social services law relating to medically fragile children, in relation to the effectiveness thereof; to amend chapter 710 of the laws of 1988,amending the social services law and the education law relating to medical assistance eligibility of certain persons and providing for managed medical care demonstration programs, in relation to the effect-

3 CHAP. 58

tiveness thereof; to amend chapter 165 of the laws of 1991, amending the public health law and other laws relating to establishing payments for medical assistance, in relation to the effectiveness 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 chapter 535 of the laws of 1983, amending the social services law relating to eligibility of certain enrollees for medical assistance, in relation to the effectiveness thereof; to amend chapter 629 of the laws of 1986, amending the social services law, relating to establishing a demonstration program for the delivery of long term home health care services, in relation to the effectiveness thereof; to amend chapter 906 of the laws of 1984 amending the social services law relating to expanding medical assistance eligibility and the scope of services available to certain persons with disabilities, in relation to the effectiveness thereof; and to amend chapter 41 of the laws of 1992 amending the public health law and other laws relating to health care providers, in relation to the effectiveness thereof; and to amend chapter 629 of the laws of 1986 amending the social services law relating to establishing a demonstration program for the delivery of long term home health care services to certain persons, in relation to the effectiveness thereof; to repeal subparagraph (v) of paragraph (c) of subdivision 3 of section 364-j of the social services law relating to certain medicare/medicaid dually eligible individuals; to repeal paragraph (i) of subdivision 4 of section 132 of the social services law relating to investigation of medical assistance applications; and providing for the repeal of certain provisions upon expiration thereof (Part C); to amend the tax law, in relation to the posting of signs to assist compulsive gamblers; and to amend part I of chapter 58 of the laws of 2005 amending the mental hygiene law, the state finance law and the racing, pari-mutuel wagering and breeding law relating to compulsive gambling assistance, in relation to the expiration thereof (Part D); to amend the social services law, in relation to reimbursement rates for the Medicaid/Medicare crossover population (Part E); to amend chapter 723 of the laws of 1989 amending the mental hygiene law and other laws relating to comprehensive psychiatric emergency programs, in relation to extending the expiration of certain provisions thereof (Part F); Intentionally omitted (Part G); to amend chapter 359 of the laws of 1968, constituting the facilities development corporation act, in relation to including entities receiving financing from the state housing finance agency or the state division of housing and community renewal for integrated housing projects within the definition of the term "voluntary agency" (Part H); and to amend part C of chapter 57 of the laws of 2006, relating to establishing a cost of living adjustment for designated human services programs, in relation to adjustments to certain rates and to extend the effectiveness thereof (Part I)

Became a law April 23, 2008, with the approval of the Governor. Passed on message of necessity pursuant to Article III, section 14 of the Constitution by a majority vote, three-fifths being present.

The People of the State of New York, represented in Senate and Assembly, do enact as follows:

CHAP. 58 4

PART x

Section 1. This act enacts into law major components of legislationwhich are necessary to implement the state fiscal plan for the 2008-2009 state fiscal year. Each component is wholly contained within a Part identified as Parts A through I. The effective date for each particular provision contained within such Part is set forth in the last section of such Part. Any provision in any section contained within a Part, including the effective date of the Part, which makes a reference to a section "of this act", when used in connection with that particular component, shall be deemed to mean and refer to the corresponding section of the Part in which it is found. Section three of this act sets forth the general effective date of this act.

PART A

Section 1. Subparagraph 1 of paragraph (b) of subdivision 1 of section 250 of the elder law, as amended by section 2 of part B of chapter 58 of the laws of 2007, is amended to read as follows:

(1) Average wholesale price discounted by [fourteen] sixteen and twenty-five one hundredths percent, plus a dispensing fee as defined inparagraph (c) of this subdivision, or

§ 2. Intentionally Omitted.

§ 3. Intentionally Omitted.

§ 3-a. Section 613 of the public health law is amended by adding a new subdivision 7 to read as follows:

7. The commissioner shall, on or before January first, two thousandnine, conduct a study on the feasibility and cost-effectiveness of aprogram to make vaccines universally available for children and adolescents up to age nineteen, without charge to the patient or to localhealth departments, licensed physicians, hospitals, clinics and suchother licensed health care providers, as determined by the commissioner. Such study shall include consultation with stakeholders on potentialfinancing mechanisms and implementation options.

§ 4. Paragraph (a) of subdivision 4 of section 2004-a of the public health law, as amended by chapter 290 of the laws of 2007, is amended to read as follows:

(a) The council shall meet quarterly or more frequently if its business shall require. The community forums in the first year of implementation count as a formal meeting of the council. [The state shall not beresponsible for cost, travel, and other incidental or contingentexpenses of council members.] The members of the council shall receiveno compensation but shall be reimbursed for travel and other expensesactually and necessarily incurred in the performance of their duties.

The council shall provide reports to the governor and the legislature on or before June thirtieth, two thousand nine and by June thirtieth ofevery other year thereafter. Such reports shall include recommendations for state policy relating to dementia and a review of services initiated and coordinated among public and private agencies to meet the needs of persons with Alzheimer's disease and other dementia and their families.

§ 5. Section 621 of the public health law, as added by section 10 of part B of chapter 57 of the laws of 2006, is amended to read as follows:

§ 621. State aid; public health emergencies. If the state commissioner or a county health department or part-county department of health or municipality, with the approval of the state commissioner, determines that there is an imminent threat to public health, the department shall

5 CHAP. 58

reimburse counties or municipalities at fifty per centum for the cost of

emergency measures as approved by the department and subject to the approval of the director of the budget. Such funds shall be made available from funds appropriated for public health emergencies, only to those counties or municipalities, which have expended all other state aid which may be available for related activities and have developed measures to adequately address the emergency. Reimbursement is conditioned upon availability of appropriated funds. For purposes of thissection, "municipality" means a health department of a city that is notlocated in a county or part-county health district or a county in whichthe legislature has the powers and duties of a board of health of acounty or part-county health district and cities with a population ofover one million persons.

§ 6. Section 4 of part X2 of chapter 62 of the laws of 2003, amendingthe public health law relating to allowing for the use of funds of the office of professional medical conduct for activities of the patient health information and quality improvement act of 2000, as amended by section 7 of part B of chapter 58 of the laws of 2007, is amended to read as follows:

§ 4. This act shall take effect immediately; provided that the provisions of section one of this act shall be deemed to have been in full force and effect on and after April 1, 2003, and shall expire March 31, [2008] 2010 when upon such date the provisions of such section shall be deemed repealed.

§ 6-a. Paragraph (a) of subdivision 1 of section 250 of the elder law, as amended by section 17 of part A of chapter 58 of the laws of 2004, subparagraph 2 as amended by section 1 of part B of chapter 58 of thelaws of 2007, is amended to read as follows:

(a) Multiple source covered drugs. Except for brand name drugs thatare required by the prescriber to be dispensed as written, the allowedamount for a multiple source covered drug shall equal the lower of:

(1) The pharmacy's usual and customary charge to the general public, taking into consideration any quantity and promotional discounts to the general public at the time of purchase, or

(2) The [sum of the] upper limit, if any, set by the centers for medicare and medicaid services for such multiple source drug, or [average]

(3) Average wholesale price discounted by twenty-five percent [when noupper limit has been established by the centers for medicare and medicaid services for such multiple source drug, plus a dispensing fee asdefined in paragraph (c) of this subdivision.], or

(4) The maximum allowable cost, if any, established by the commissioner of health pursuant to paragraph (e) of subdivision nine of sectionthree hundred sixty-seven-a of the social services law. Plus a dispensing fee for drugs reimbursed pursuant to subparagraphstwo, three, and four of this paragraph, as defined in paragraph (c) ofthis subdivision.

§ 7. Intentionally Omitted.

§ 8. Intentionally Omitted.

§ 9. Intentionally Omitted.

§ 10. Intentionally Omitted.

§ 11. Intentionally Omitted.

§ 12. Intentionally Omitted.

§ 13. Intentionally Omitted.

§ 14. Intentionally Omitted.

§ 15. Intentionally Omitted.

CHAP. 58 6

§ 16. Subdivision 1 of section 12 of the public health law, as amended by chapter 190 of the laws of 1990, is amended to read as follows:

1. [Any] (a) Except as provided in paragraphs (b) and (c) of thissubdivision, any person who violates, disobeys or disregards any term or provision of this chapter or of any lawful notice, order or regulation pursuant thereto for which a civil penalty is not otherwise expressly prescribed by law, shall be liable to the people of the state for a civil penalty of not to exceed two thousand dollars for every such violation.

(b) The penalty provided for in paragraph (a) of this subdivision maybe increased to an amount not to exceed five thousand dollars for asubsequent violation if the person committed the same violation, withrespect to the same or any other person or persons, within twelve monthsof the initial violation for which a penalty was assessed pursuant toparagraph (a) of this subdivision and said violations were a seriousthreat to the health and safety of an individual or individuals.

(c) The penalty provided for in paragraph (a) of this subdivision maybe increased to an amount not to exceed ten thousand dollars if theviolation directly results in serious physical harm to any patient orpatients. Effective on and after April first, two thousand eight the comptrolleris hereby authorized and directed to deposit amounts collected in excessof two thousand dollars per violation to the patient safety centeraccount to be used for purposes of the patient safety center created bytitle two of article twenty-nine-D of this chapter.

§ 17. Subdivision 2 of section 12-b of the public health law, as amended by chapter 463 of the laws of 1969, is amended to read as follows:

2. A person who wilfully violates any provision of this chapter, or any regulation lawfully made or established by any public officer or board under authority of this chapter, the punishment for violating which is not otherwise prescribed by this chapter or any other law, is punishable by imprisonment not exceeding one year, or by a fine not exceeding [two] ten thousand dollars or by both. Effective on and afterApril first, two thousand eight the comptroller is hereby authorized anddirected to deposit amounts collected in excess of two thousand dollarsper violation to the patient safety center account to be used forpurposes ofthe patient safety center created by title two of articletwenty-nine-D of this chapter.