PURSUANT TO THE PROVISIONS OF THE State Administrative Procedure Act, NOTICE is hereby given of the following proposed rule:
Proposed Action:
Amendment of sections 405.3(e), 405.4(b)(2) and (c) of Title 18 NYCRR.
Statutory authority:
Social Services Law, sections 20(2)(b), (3)(d), 34(3)(f) and 20-c
Subject:
Multi-year Contracts.
Purpose:
Provide greater flexibility in multi-year contracts.
Text of proposed rule:
Paragraph (e) of section 405.3 of Title 18 NYCRR is amended to read as follows:
(e) Contract period.
(1) [A contract may not remain in effect for a period exceeding 12 months. Contracts may be negotiated for a period of less than 12 months if the nature of the service provision is clearly expected to be for a shorter period or if a shorter trial period is justified.] The social services district may enter a multi-year purchase of services contract, provided that the contract is reviewed on at least an annual basis for verification of conformance by the contracting parties and is continued for subsequent periods only if the social services district determines that the contract continues to be in the best interest of the district.
(2) [Contracts shall be reviewed by the social services district at least every six months for verification of conformance by the contracting parties. Any contract which is not being properly fulfilled shall be immediately terminated in accordance with the terms of the contract.] All contracts shall be renegotiated as required to [ensure] promote timely renewal.
Subdivision 2 of paragraph (b) and paragraph (c) of section 405.4 of title 18 NYCRR are amended to read as follows:
(2) developing an effective system for evaluation and review of contracts [at the specified six-month intervals] on at least an annual basis and the quality of services being provided under contracts in force.
(c) The social services district shall compile and maintain a master index of all existing or newly executed contracts. [Such index shall include, but need not be limited to, the following records:
(1) name of provider;
(2) status of provider, i.e., public, private, etc.;
(3) status of license or approval of the provider, if required, and notations of any exceptions granted by the department;
(4) services purchased;
(5) number of individuals to be served pursuant to such contracts;
(6) estimated contract dollar amount;
(7) date of execution of contract; and
(8) date of termination of contract.]
Text of proposed rule and any required statements and analyses may be obtained from:
Public Information Office, NYS Office of Children and Family Services, 52 Washington Street, Rensselaer, N.Y. 12144, (518) 473-7793
Data, views or arguments may be submitted to:
Same as above.
Public comment will be received until:
45 days after publication of this notice.
Regulatory Impact Statement
1. Statutory Authority
Section 20(3)(d) of the Social Services Law (SSL) authorizes the Office of Children and Family Services (OCFS) to establish rules, regulations and policies to carry out OCFS' powers and duties under the SSL. Section 20(2)(b) of the SSL authorizes OCFS to supervise local social services officials in the performance of their official duties and regulate the financial assistance granted to social services districts (districts) by the State to perform these duties. Section 34(3)(f) authorizes the Commissioner of OCFS to establish regulations for the administration of public care by local social services districts.
Section 20-c of the SSL authorizes districts to enter contracts for the performance of their duties under the SSL. Section 20-c also requires that contracts for social services contain specific information, including a description of the quality of service expected, as measured by specific performance measures, and detailed information about the qualifications and remuneration of employees who will be performing the work.
2. Legislative Objectives
The proposed regulatory changes provide mandate relief to local social services districts (LSSDs) by providing greater flexibility in contracting by permitting multi-year purchase of services contracts that are reviewed on an annual basis and by eliminating specific contracting documentation. These changes allow local districts to enter more efficient contracts for services, as permitted by SSL § 20-c.
3. Needs and Benefits
By adding flexibility to the social services district contracting process, the proposed regulatory amendments are intended to satisfy the need identified by districts for administrative workload relief and cost savings measures.
4. Costs
The increased flexibility in contracting procedures is intended to save administrative and other costs associated with contracts for services, and ultimately, with the provision of social services by districts and service providers. There is no adverse fiscal impact to OCFS or the State related to the proposed regulatory amendments.
5. Local Government Mandates
The proposed regulatory amendments do not impose any local government mandates. Rather, they provide affected local governments with additional flexibility in carrying out their statutory duties.
6. Paperwork
The proposed regulatory changes decrease existing reporting requirements by providing local flexibility in the form that may be used to report authorized services.
7. Duplication
The proposed regulatory amendments do not duplicate other state or federal requirements.
8. Alternate Approaches
The proposed regulatory changes were suggested by local social services districts and service providers in an effort to decrease their administrative workload. The feasibility of various alternatives for workload relief was discussed by district and OCFS staff.
9. Federal Standards
These proposed regulatory amendments meet but do not exceed any applicable federal standards.
10. Compliance Schedule
The proposed regulatory amendments do not establish any compliance requirements.
Regulatory Flexibility Analysis
1. Effect on Small Businesses and Local Governments
The proposed regulatory changes provide local social services districts (LSSDs) with greater flexibility when contracting to purchase social services paid with state or federal funds. LSSDs are no longer limited to a maximum 12-month contract term and are permitted to enter multi-year contracts. In order to provide additional administrative flexibility, LSSDs are permitted to use an equivalent local form in lieu of the formerly required state form and are no longer required to maintain a master index of all contracts. The public, not-for-profit, voluntary, and other agencies that social services districts may contract with for these services will also benefit from the increased contracting flexibility. LSSDs will be able to negotiate contracts more competitively by being able to agree to multi-year contract periods. The agencies with which they contract will be able to better plan for needed resources and to commit to developing additional resources if they successfully enter into multi-year contracts.
2. Compliance Requirements
The proposed regulatory amendments do not establish any compliance requirements. Insofar as the proposed regulatory changes provide LSSDs with additional options in contracting for services, they reduce compliance requirements.
3. Professional Services
The technical assistance to be provided by the Office of Children and Family Services (OCFS) will include professional services to assist local districts in implementing multi-year contracts on an as needed basis.
4. Compliance Costs
There are no identified compliance costs as the proposed regulatory amendments provide increased flexibility and choices to social services districts and service providers when they enter contracts for purchase of services.
5. Economic and Technological Feasibility
It is anticipated that the affected local governmental agencies (social services districts) have the economic and technological feasibility to enter multi-year contracts for the purchase of services, if they so choose.
6. Minimizing Adverse Impact
It is not anticipated that the proposed regulatory changes will result in an adverse impact on small businesses or local government agencies or instrumentalities. Consistent with State Administrative Procedure Act § 202-b(1), the proposed amendments provide increased flexibility in model contract form and length of contract term.
7. Small Business and Local Government Participation
OCFS held a series of conferences calls with social services commissioners, directors of services, and staff, and several service providers to discuss ways that OCFS could assist social services districts in providing workload relief. LSSDs suggested that having the ability to enter multi-year contracts would assist them by eliminating the time and effort otherwise required for annual contract negotiations. These proposed regulatory changes seek to implement the LSSDs' suggestion.
Rural Area Flexibility Analysis
1. Types and estimated number of rural areas:
The proposed regulatory amendments apply to all local social services districts (LSSDs), including the 44 districts that contain rural areas. Those public and private agencies in rural areas contracting with LSSDs to provide social services also will be affected by the regulation.
2. Reporting, recordkeeping and other compliance requirements; and professional services:
The proposed regulatory changes do not impose any reporting, recordkeeping or other compliance requirements. The proposed regulatory amendments will increase flexibility regarding the current recordkeeping requirement that LSSDs maintain a master index of contracts by eliminating the specific requirements of that index.
3. Costs:
The proposed amendments will not impose any costs on LSSDs or agencies, including those in rural areas. The proposed regulatory changes will provide the opportunity for LSSDs to save administrative costs by eliminating the requirement of annual contract negotiations, and may enable LSSDs and service providers to enter into more competitive contracts.
4. Minimizing adverse impact:
It is not anticipated that the proposed regulatory amendments will result in an adverse impact on rural areas. Consistent with State Administrative Procedure Act § 202-bb(2), the proposed amendments provide increased flexibility in model contract form and length of contract term.
5. Rural area participation:
OCFS held a series of conferences calls with social services commissioners, directors of services, and staff, and several service providers, including those from LSSDs that contain rural areas, to discuss ways that OCFS could assist the districts in providing workload relief. LSSD staff suggested that having the ability to enter multi-year contracts would assist them by eliminating the time and effort otherwise required for annual contract negotiations. These proposed regulatory changes seek to implement this suggestion.
Job Impact Statement
A full job impact statement has not been prepared for the proposed regulatory amendments. The proposed regulatory amendments would not result in the loss of any jobs. It is apparent from the nature and purpose of the proposed amendments (allowing local social services districts to enter multi-year contracts for the purchase of social services with state or federal funds, and permitting additional flexibility in related contract procedures) that they will not have a substantially adverse impact on jobs and employment opportunities. The proposed regulations may have a positive impact on job stability insofar as it may enable private agencies to enter multi-year contracts with social services districts and accordingly plan for a more stable workforce.
