New York Public Health Code § 2809

Residential health care facilities; powers to require security
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§ 2809. Residential health care facilities; powers to require\nsecurity.  1. If a residential health care facility receives a rating in\nthe lowest category which may be assigned pursuant to subdivision one of\nsection twenty-eight hundred three of this chapter, the commissioner may\nrequire, as a condition of continuing to operate, that the facility\nobtain financial security to ensure that future obligations will be met,\nwhich security may be of a form that the commissioner deems appropriate,\nand which shall be in an amount determined necessary by the commissioner\nafter considering the rating of the facility; deficiencies in its\noverall condition and its operating practices; the size of the facility;\nthe ease or difficulty of obtaining given types of security; and the\nfinancial burden of obtaining particular types of security; but in no\ncase shall such amount exceed twenty-five thousand dollars.\n  2. If the commissioner obtains the agreement of any such facility to\ncorrect or eliminate any deficiency, by release or compromise of a\npenalty or for any other reason, he may require as a part of such\nagreement that the facility obtain security in an amount sufficient to\nensure that the agreement be upheld, which security may take a form\nwhich the commissioner deems appropriate.\n  3. If for any reason the security required by the commissioner is\ndepleted, either wholly or partially by civil penalties assessed by the\ncommissioner or for any other cause, the commissioner may require, after\nconsidering those factors which were applicable to the original\nrequirement of security, that the amount of security be wholly or\npartially replenished, or that the total amount of security be\nincreased; but in no case shall such security exceed twenty-five\nthousand dollars at one time.\n

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