Limits on Executive Compensation and Administrative Expenses in Agency Procurements
NY-ADR
4/10/13 N.Y. St. Reg. HLT-22-12-00012-RP
NEW YORK STATE REGISTER
VOLUME XXXV, ISSUE 15
April 10, 2013
RULE MAKING ACTIVITIES
DEPARTMENT OF HEALTH
REVISED RULE MAKING
NO HEARING(S) SCHEDULED
I.D No. HLT-22-12-00012-RP
Limits on Executive Compensation and Administrative Expenses in Agency Procurements
PURSUANT TO THE PROVISIONS OF THE State Administrative Procedure Act, NOTICE is hereby given of the following revised rule:
Proposed Action:
Addition of Part 1002 to Title 10 NYCRR.
Statutory authority:
Social Services Law, section 363-a(2); Public Health Law, sections 201(1)(o), (p), 206(3), (6); and Not-For-Profit Corporation Law, section 508
Subject:
Limits on Executive Compensation and Administrative Expenses in Agency Procurements.
Purpose:
Ensure state funds and state authorized payments are expended in the most efficient manner and appropriate use of funds.
Substance of revised rule:
The revised rule would add a new Part 1002 to 10 NYCRR titled Limits on Administrative Expenses and Executive Compensation.
Section 1002.1 Contains definitions for purposes of this Part, including definitions for administrative expenses, covered operating expenses, covered executive, covered provider, executive compensation, program services, program services expenses, related organization, reporting period, State-authorized payments, and State funds. The regulations have been amended since the last Notice of Revised Rulemaking to specifically include those providing early intervention services among the defined “covered providers.”
Section 1002.2 Limits on Administrative Expenses. Contains limits on the use of State funds or State-authorized payments for administrative expenses.
The restriction will apply to subcontractors and agents of covered providers which meet the specified criteria.
The restriction will apply to covered providers receiving State funds or State-authorized payments from county or local governments, rather than directly from a State agency, pursuant to specified criteria.
The revised regulation addresses how the restriction will apply in the event that a covered provider has multiple sources of State funds or State-authorized payments.
Section 1002.3 Limits on Executive Compensation. Contains restrictions on executive compensation provided to covered executives.
The restriction will apply to subcontractors and agents of covered providers which meet the specified criteria.
The restriction will apply to covered providers receiving State funds or State-authorized payments from county or local governments, rather than directly from a State agency, pursuant to specified criteria.
The revised rule addresses the application of this limit if the covered provider has multiple sources of State funds or State-authorized payments.
Section 1002.4 Waivers. Processes are established for covered providers to seek waivers of the limit on administrative expenses and the limits on executive compensation.
Section 1002.5 Reporting by Covered Providers. Covered providers are required to report information on an annual basis for each covered reporting period.
Section 1002.6 Penalties. A process is established for the imposition of penalties in the event of non-compliance with the limit on administrative expenses or the limits on executive compensation.
A copy of the full text of the regulatory proposal is available on the Department of Health website (www.health.ny.gov).
Revised rule making(s) were previously published in the State Register on
October 31, 2012 and March 13, 2013.
Revised rule compared with proposed rule:
Substantial revisions were made in section 1002.1(d)(3).
Text of revised proposed rule and any required statements and analyses may be obtained from
Katherine Ceroalo, DOH, Bureau of House Counsel, Reg. Affairs Unit, Room 2438, ESP Tower Building, Albany, NY 12237, (518) 473-7488, email: [email protected]
Data, views or arguments may be submitted to:
Same as above.
Public comment will be received until:
30 days after publication of this notice.
Revised Regulatory Impact Statement, Regulatory Flexibility Analysis, Rural Area Flexibility Analysis and Job Impact Statement
Changes made to the last published rule do not necessitate revision to the previously published Regulatory Impact Statement, Regulatory Flexibility Analysis, Rural Area Flexibility Analysis and Job Impact Statement.
Assessment of Public Comment
The agency received no public comment.
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