State legislators have expanded a health-care program to benefit small businesses and reached an agreement on handling the subprime mortgage crisis.

Both actions come in the waning days of this year's legislative session, scheduled to end Monday.

Wednesday, the Senate unanimously approved changes to the "Healthy New York" program, which coordinates with HMOs across the state to provide health insurance for small businesses, sole proprietors and uninsured workers.

Currently, a business with fewer than 50 employees is not eligible for the Health New York program if it has offered health insurance within the past 12 months. The new change erases that requirement.

The state Assembly had approved the change earlier this year. Last year, the same bill passed the Assembly but died in the Senate. If Democratic Gov. David Paterson signs the legislation, it will take effect Jan. 1, 2009.

Meanwhile, Paterson said Thursday that leaders in both legislative chambers have agreed to pass a modified version of his proposal to address the subprime mortgage issues in the state.

The bill includes extra regulations and provisions that have worried representatives of the state's banking industry. Critics have said that the added costs and challenges of complying with the new regulations could deter banks from offering sound mortgages to creditworthy customers.

Details were not immediately available because the bill was being amended. But at a press conference, Paterson said a key element is a 90-day period during which homeowners will receive "pre-foreclosure" notices that their properties are in jeopardy of pending foreclosure.

During that time, borrowers and lenders will be required to meet and try to work out a different resolution, Paterson said. Such a provision extends the state's foreclosure process - which, at an average of 445 days, is already the nation's longest.

Mortgage lenders will also be required to register with the state Banking Department, enabling an official "track record" to be established, Paterson said. He maintained that the changes would help lenders.

The agreement announced Thursday rejects a proposed one-year moratorium on foreclosure proceedings, an idea supported by Democrats in the Assembly.