What's happening
This bill requires New York nursing homes to conduct quarterly third-party audits of resident trust funds and report findings to the health commissioner.
Why it matters
Increases Financial Oversight. By mandating quarterly third-party audits, the bill addresses risks of mismanagement or misuse of resident trust funds, potentially preventing theft or fraud that could harm vulnerable nursing home residents.
Enhances Accountability. Requiring separate audits for each facility and submission of audit reports to the health commissioner creates a direct channel for regulatory scrutiny, making it more likely that problems will be identified and addressed promptly.
Strengthens Resident Protections. Regular, independent reviews can reassure residents and their families that their personal funds are being properly handled, which may enhance trust in nursing home operations and deter potential financial exploitation.
Empowers Regulators. The explicit authority for the commissioner to examine and audit records at any time goes beyond scheduled audits, providing a flexible enforcement tool to investigate complaints or suspicions as they arise.
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Who cares
Nursing home companies
They would have to pay for quarterly independent audits of residents’ trust fund accounts, with a separate audit for each New York facility.
Nursing home residents with trust fund accounts
The audits would check that their money is not misappropriated.
Independent financial auditors
Nursing home companies would have to engage unaffiliated third parties to audit the books and records for each resident trust fund account.
State health commissioner
The commissioner would receive audit reports within 60 days of completion and could examine and audit company books and records at any time.
Headline styles
Audit Nursing Home Trust Funds
Plain English, a few words. Used as the page title.
Sponsors
2 Co-sponsors
3 Multi-sponsors
History
- Enacting clause stricken
- Referred to health
- Referred to health
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
3290
2017-2018 Regular Sessions
IN ASSEMBLY
January 27, 2017
Introduced by M. of A. SEPULVEDA, CRESPO -- Multi-Sponsored by -- M. of A. COOK, PERRY, RIVERA -- read once and referred to the Committee on Health
AN ACT to amend the public health law, in relation to requiring nursing homes that maintain a trust fund or funds into which residents' money is deposited to conduct quarterly audits and to report the findings of such audits to the commissioner of public health
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. The public health law is amended by adding a new section 2862-a to read as follows:
§ 2862-a. Audits of trust fund accounts. 1. Each nursing home company subject to the provisions of this article shall, at its own expense, arrange for quarterly financial audits of all books and records pertaining to each trust fund account into which moneys of residents of the nursing home facilities operated by the company are deposited. A separate audit shall be conducted for each nursing home facility operated by the company in this state.
2. The audits shall be conducted by a third party unaffiliated with the nursing home company and shall be conducted for the purpose of ensuring that residents' moneys are not misappropriated.
3. Copies of the report of such audits shall be provided to the commissioner within sixty days of the completion of the audit.
4. The commissioner may examine and audit the books and records of the company at any time.
§ 2. This act shall take effect on the first of January next succeeding the date upon which it shall become a law.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD07276-01-7
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.