Limits on Administrative Expenses and Executive Compensation
NY-ADR
10/30/19 N.Y. St. Reg. ASA-44-19-00002-P
NEW YORK STATE REGISTER
VOLUME XLI, ISSUE 44
October 30, 2019
RULE MAKING ACTIVITIES
OFFICE OF ALCOHOLISM AND SUBSTANCE ABUSE SERVICES
PROPOSED RULE MAKING
NO HEARING(S) SCHEDULED
I.D No. ASA-44-19-00002-P
Limits on Administrative Expenses and Executive Compensation
PURSUANT TO THE PROVISIONS OF THE State Administrative Procedure Act, NOTICE is hereby given of the following proposed rule:
Proposed Action:
Amendment of Part 812 of Title 14 NYCRR. This rule is proposed pursuant to SAPA § 207(3), 5-Year Review of Existing Rules.
Statutory authority:
Mental Hygiene Law, sections 19.07(e), 19.09(b), 19.40, 25.09, 32.01, 32.02, 32.07(a), 43.02; Not-for-Profit Corporation Law, section 508
Subject:
Limits on administrative expenses and executive compensation.
Purpose:
To define limits on administrative expenses and executive compensation in accordance with State law and Executive Order 38.
Substance of proposed rule (Full text is posted at the following State website: www.oasas.ny.gov ):
In addition to technical amendments and the Proposed Rule amends Part 812 as follows:
§ 812.3(l)(m) Definitions. Clarifies that the NY Division of Budget (DOB) will annually publish a list of government programs whose funds shall be considered State-authorized payments.
§ 812.5 Limits on Executive Compensation. Strikes subdivision (b) in compliance with the NY Court of Appeals decision regarding the cap on non-state funds which may used for executive compensation.
Text of proposed rule and any required statements and analyses may be obtained from:
Carmelita Cruz, NYS OASAS, 1450 Western Avenue, Albany, NY 12203, (518) 485-2312, email: [email protected]
Data, views or arguments may be submitted to:
Same as above.
Public comment will be received until:
60 days after publication of this notice.
Reasoned Justification for Modification of the Rule
The proposed rule amends Part 812 regarding executive compensation limits established by Executive Order Number 38 in 2013. Part 812 is amended to comply with an October 2018 NY Court of Appeals decision invalidating a portion of the regulation as it relates to a cap on non-state funds which may be used for executive compensation. OASAS no longer enforces this provision of the regulation.
Regulatory Impact Statement
1. Statutory Authority:
(a) Section 19.07(e) of the Mental Hygiene Law authorizes the Commissioner (“Commissioner”) of the Office to adopt standards including necessary rules and regulations pertaining to chemical dependence services.
(b) Section 19.09(b) of the Mental Hygiene Law authorizes the Commissioner to adopt regulations necessary and proper to implement any matter under his or her jurisdiction.
(c) Section 19.40 of the Mental Hygiene Law authorizes the Commissioner to issue operating certificates for the provision of chemical dependence services.
(d) Section 25.09 of the Mental Hygiene Law authorizes the Office to establish limits on the amount of financial support which may be advanced or reimbursed to a program for the administration of such program.
(e) Section 32.01 of the Mental Hygiene Law authorizes the Commissioner to adopt any regulation reasonably necessary to implement and effectively exercise the powers and perform the duties conferred by Article 32 of the Mental Hygiene Law.
(f) Section 32.02 of the Mental Hygiene Law authorizes the Commissioner to adopt regulations necessary to ensure quality services to those suffering from problem gambling.
(g) Section 32.07(a) of the Mental Hygiene Law authorizes the Commissioner to adopt regulations to effectuate the provisions and purposes of Article 32 of the Mental Hygiene Law.
(h) Section 43.02 of the Mental Hygiene Law authorizes the establishment of rates or methods of payment for services at facilities subject to licensure or certification by the Office.
(i) Executive Order Number 38 requires the promulgation of regulations and related actions to address the extent and nature of state funded providers’ administrative costs and executive compensation which shall be eligible for reimbursement with State financial assistance or State-authorized payments for operating expenses.
(j) Section 508 of the Not for Profit Corporation Law requires any incidental profit from fees charged for services shall be applied to the maintenance, expansion or operation of the activities of the not for profit corporation and in no case be distributed among members, directors or officers of the corporation.
2. Legislative Objectives: The legislature has authorized OASAS to establish standards and regulations governing the provision of addiction treatment services, the certification of providers and to establish limits on the amount of financial support which may be advanced or reimbursed to a program for the administration of such program.
3. Needs and Benefits: An October 2018 NY Court of Appeals decision has invalidated portions of this regulation as it relates to a cap on non-state funds which may be used for executive compensation. As of the date of the decision, OASAS no longer enforces those provisions of the regulation.
4. Costs: No additional administrative costs to the agency are anticipated.
5. Paperwork: There is no additional paperwork beyond what is already required.
6. Local Government Mandates: There are no new local government mandates.
7. Duplication: This proposed rule does not duplicate, overlap, or conflict with any State or federal statute or rule.
8. Alternatives: The alternative is to leave the regulation as it currently reads and continue to not enforce those provisions that have been invalidated.
9. Federal Standards: This regulation does not conflict with federal standards.
10. Compliance Schedule: This rulemaking will be effective upon publication of a Notice of Adoption in the State Register.
Regulatory Flexibility Analysis
OASAS has determined that the rule will not impose any adverse economic impact or reporting, recordkeeping or other compliance requirements on small businesses or local governments because the amended portion of this regulation is already not being enforced by the Office.
Rural Area Flexibility Analysis
OASAS has determined that the rule will not impose any adverse impact on rural areas or reporting, recordkeeping or other compliance requirements on public or private entities in rural areas because the amended portion of this regulation is already not being enforced by the Office.
Job Impact Statement
OASAS is not submitting a Job Impact Statement for this rulemaking. OASAS does not anticipate a substantial adverse impact on jobs and employment opportunities because the amended portion of this regulation is already not being enforced by the Office.
| End of Document |