N.Y. Public Health Law § 3611-a: Change in the operator or owner

§ 3611-a. Change in the operator or owner. 1. Any change in the

person who, or any transfer, assignment, or other disposition of an

interest or voting rights of ten percent or more, or any transfer,

assignment or other disposition which results in the ownership or

control of an interest or voting rights of ten percent or more, in a

limited liability company or a partnership which is the operator of a

licensed home care services agency or a certified home health agency

shall be approved by the public health and health planning council, in

accordance with the provisions of subdivision four of section thirty-six

hundred five of this article relative to licensure or subdivision two of

section thirty-six hundred six of this article relative to certificate

of approval, except that:

(a) Public health and health planning council approval shall be

required only with respect to the person, or the member or partner that

is acquiring the interest or voting rights; and

(b) With respect to certified home health agencies, such change shall

not be subject to the public need assessment described in paragraph (a)

of subdivision two of section thirty-six hundred six of this article.

(c) No prior approval of the public health and health planning council

shall be required with respect to a transfer, assignment or disposition

of:

(i) an interest or voting rights to any person previously approved by

the public health and health planning council, or its predecessor, for

that operator; or

(ii) an interest or voting rights of less than ten percent in the

operator. However, no such transaction shall be effective unless at

least ninety days prior to the intended effective date thereof, the

partner or member completes and files with the public health and health

planning council notice on forms to be developed by the public health

council, which shall disclose such information as may reasonably be

necessary for the public health and health planning council to determine

whether it should bar the transaction. Such transaction will be final as

of the intended effective date unless, prior thereto, the public health

and health planning council shall state specific reasons for barring

such transactions under this paragraph and shall notify each party to

the proposed transaction.

2. Any transfer, assignment or other disposition of ten percent or

more of the stock or voting rights thereunder of a corporation which is

the operator of a licensed home care services agency or a certified home

health agency, or any transfer, assignment or other disposition of the

stock or voting rights thereunder of such a corporation which results in

the ownership or control of more than ten percent of the stock or voting

rights thereunder of such corporation by any person shall be subject to

approval by the public health and health planning council in accordance

with the provisions of subdivision four of section thirty-six hundred

five of this article relative to licensure or subdivision two of section

thirty-six hundred six of this article relative to certificate of

approval, except that:

(a) Public health and health planning council approval shall be

required only with respect to the person or entity acquiring such stock

or voting rights; and

(b) With respect to certified home health agencies, such change shall

not be subject to the public need assessment described in paragraph (a)

of subdivision two of section thirty-six hundred six of this article. In

the absence of such approval, the license or certificate of approval

shall be subject to revocation or suspension.

(c) No prior approval of the public health and health planning council

shall be required with respect to a transfer, assignment or disposition

of an interest or voting rights to any person previously approved by the

public health and health planning council, or its predecessor, for that

operator. However, no such transaction shall be effective unless at

least one hundred twenty days prior to the intended effective date

thereof, the partner or member completes and files with the public

health and health planning council notice on forms to be developed by

the public health and health planning council, which shall disclose such

information as may reasonably be necessary for the public health and

health planning council to determine whether it should bar the

transaction. Such transaction will be final as of the intended effective

date unless, prior thereto, the public health and health planning

council shall state specific reasons for barring such transactions under

this paragraph and shall notify each party to the proposed transaction.

3. (a) The commissioner shall charge to applicants for a change in

operator or owner of a licensed home care services agency or a certified

home health agency an application fee in the amount of two thousand

dollars.

(b) The fees paid by certified home health agencies pursuant to this

subdivision for any application approved in accordance with this section

shall be deemed allowable costs in the determination of reimbursement

rates established pursuant to this article. All fees pursuant to this

section shall be payable to the department of health for deposit into

the special revenue funds - other, miscellaneous special revenue fund -

339, certificate of need account.