(b) The applicant must satisfactorily demonstrate to the council:

1. (1) that there is a public need for the hospice or the proposed new hospice;

   1. (i) if a not-for-profit corporation, that the members of the board of directors and the officers of the corporation are of such character, experience, competence and standing as to give reasonable assurance of their ability to conduct the affairs of the corporation in its best interests and in the public interest and to provide proper care for those to be served by the hospice or the proposed hospice;
   2. (ii) if a proprietary business, that the owner, or all the partners of a partnership, are persons of such character, experience, competence and standing as to give reasonable assurance of their ability to conduct the affairs of the business in its best interests and in the public interest and to provide proper care for those to be served by the hospice or the proposed hospice;
   3. (iii) if a business corporation, that the members of the board of directors, the officers and the stockholders of the corporation or, in the case of an application solely for a change in the principal stockholder(s), that the proposed new principal stockholder(s) of the corporation are of such character, experience, competence and standing as to give reasonable assurance of their ability to conduct the affairs of the corporation in its best interest and in the public interest and to provide proper care for those to be served by the hospice or the proposed hospice; and

   (2)

2. (3) that there are adequate finances and sources of future revenue to properly establish and conduct the hospice or the proposed hospice.

(c) The applicant must supply:

1. (1) any additional information requested by the department within 30 days of such request, or must obtain from the department an extension of the time in which to provide such information. Any request for such extension of time shall set forth the reasons why such information could not be obtained within the prescribed time. The granting of such extension of time shall be at the discretion of the commissioner, providing such extensions are not for more than 30 days and the commissioner is satisfied as to the reasons why such information could not be obtained within the prescribed time. The commissioner is authorized to deny a request for an extension of time. Failure to provide such information within the time prescribed shall constitute an abandonment and withdrawal of the application.
2. (2) any authorization the department requests in order to verify any information contained in the application or to obtain additional information which the department finds is pertinent to the application. Failure to provide such authorization shall constitute an abandonment and withdrawal of the application.

(d) Whenever any applicant proposes to lease premises in which a hospice residence or the inpatient component of a hospice is to be provided, the lease agreement shall include the following language:

“The landlord acknowledges that its rights of reentry into the premises set forth in this lease do not confer on it the authority to operate a hospital or hospice as defined in articles 28 and 40, respectively, of the Public Health Law on the premises and agrees to provide the New York State Department of Health, Mayor Erastus Corning 2nd Tower, The Governor Nelson A. Rockefeller Empire State Plaza, Albany, N.Y. 12237, with notification by certified mail of its intent to reenter the premises or to initiate dispossess proceedings or that the lease is due to expire, at least 30 days prior to the date on which the landlord intends to exercise a right of reentry or to initiate such proceedings or at least 60 days before expiration of the lease.”