What's happening
This bill requires New York nursing homes to conduct quarterly independent audits of resident trust fund accounts and report results to the health commissioner.
Why it matters
Increases financial accountability. By requiring independent, unaffiliated third-party audits every quarter, the bill aims to reduce the risk of fraud or mismanagement of residents' trust fund accounts in nursing homes.
Enhances oversight and transparency. Mandating that audit results be sent to the Commissioner of Health within 60 days ensures that state regulators are regularly updated, making it easier to catch problems early and intervene if necessary.
Empowers residents and families. Regular, independent reviews offer greater reassurance to nursing home residents and their families that their personal funds are being handled properly, potentially increasing trust in these facilities.
Potential for enforcement and deterrence. The explicit authority for the commissioner to audit at any time adds a layer of deterrence against potential wrongdoing by nursing home operators, reinforcing ongoing compliance.
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Who cares
Headline styles
Audit Nursing Home Trust Funds
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to health
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Audit Nursing Home Trust Funds
Stricken · Sponsor Luis R. Sepúlveda
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
4955
2017-2018 Regular Sessions
IN SENATE
March 3, 2017
Introduced by Sen. DIAZ -- 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 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.
Sponsor's memo
Title of bill
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
Purpose or general idea of bill
This bill would require nursing homes to, at their 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. The audit 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.
Summary of specific provisions
Section 1. Amends the public health law by adding a new section 2862-a. Provides for nursing home companies to arrange for quarterly financial audits, at its own expense, of all books and records pertaining to each trust fund account in which monies of residents at the facility is operated and deposited by the company. Requires an unaffiliated third party to conduct a separate audit to ensure that residents' monies are not misappropriated. Mandates that within sixty days of the completion of the audit copies of the report shall be provided to the commissioner. Specifies that the commissioner may conduct an examination of books and records at any given time.
Section 2. Effective Date.
Existing law
None.
Justification
This legislation seeks to mimic federal regulations that require all nursing homes that participate in Medicare and Medicaid to provide for quarterly audits of trust fund accounts to prevent the misappropriation of the residents' funds at nursing home companies.
Legislative history
2016: S.354- REFERRED TO HEALTH/A5589- REFERRED TO HEALTH 2015: S.354- REFERRED TO HEALTH/A5589- REFERRED TO HEALTH 2014: S.6464 - Referred to Health/A.8247 - Referred to Health 2013: A.8247 - Referred to Health
Fiscal implications
None to State and Local Government
Effective date
This act shall take effective on the first of January, next succeeding the date upon which it shall become a law.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.