N.Y. Public Health Law § 2862: Supervision and regulation

§ 2862. Supervision and regulation. 1. The commissioner may from time

to time make, alter, amend and repeal rules and regulations for the

supervision, examination, regulation and audit of nursing home companies

and for carrying into effect the provisions and purposes of this

article, and each company shall submit an annual report of its

operations to the commissioner and the New York state housing finance

agency or the New York state medical care facilities finance agency, as

the case may be, who may examine and audit the books and records of the

company at any time.

2. The commissioner and the department of health shall have power to

act for and in behalf of the New York state housing finance agency or

the New York state medical care facilities finance agency, as the case

may be, in servicing the nursing home mortgage loans of such agency, and

to perform such functions and services in connection with the making,

servicing and collection of such loans as shall be requested by such

agency.

3. (a) The commissioner and the department may, with respect to any

nursing home project of which the New York state housing finance agency

or the New York state medical care facilities finance agency, as the

case may be, has acquired the fee or otherwise, enter into an agreement

with said agency subject to the approval of the director of the budget,

for the department, as provided in paragraph (b) of this subdivision, to

operate the said project in a manner consistent with the purposes of

this article. In such event, the commissioner, on behalf of the

department, shall have the power to use any available funds to pay all

operating expenses and to comply with all the terms and provisions of

the mortgage, if any, as though the mortgage had not been foreclosed, or

any other applicable agreement and to comply with the provisions of this

article.

(b) Subject to the provisions of the agreement with said agency, the

commissioner may contract with any person, firm or corporation which he

deems qualified to operate and manage such project and to perform such

duties and functions as he may deem necessary.

4. Whenever the commissioner shall be of the opinion that a company is

failing or omitting, or is about to fail or omit to do anything required

of it by law or by order of the commissioner and is doing or is about to

do anything, or permitting anything, or is about to permit anything to

be done, contrary to or in violation of law or of any order of the

commissioner, or which is improvident or prejudicial to the interest of

the public, the lienholders, the shareholders, or the occupants, the

commissioner may, in addition to such other remedies as may be

available, commence an action or proceeding in the supreme court of the

state of New York in the name of the commissioner, for the purpose of

having such violations or threatened violations stopped and prevented,

and in such action or proceeding, the court may appoint a temporary or

permanent receiver or both. Such action or proceeding shall be commenced

by a petition to the supreme court, alleging the violation complained of

and praying for appropriate relief. It shall thereupon be the duty of

the court to specify the time, not exceeding twenty days after service

of a copy of the petition, within which the company complained of must

answer the petition. In case of any default or after answer the court

shall immediately inquire into the facts and circumstances in such

manner as the court shall direct in the interest of substantial justice

without other or formal pleading. Such other persons or corporations as

it shall seem to the court necessary or proper to join as parties in

order to make its order or judgment effective, may be joined as parties.

The final judgment in any such action or proceeding shall either dismiss

the action or proceeding or direct that an order or an injunction, or

both, issue, or provide for the appointment of a receiver as prayed for

in the petition, or grant such other relief as the court may deem

appropriate.