CCS-22-12-00015-A Limits on Administrative Expenses and Executive Compensation

5/29/13 N.Y. St. Reg. CCS-22-12-00015-A

NEW YORK STATE REGISTER

VOLUME XXXV, ISSUE 22

May 29, 2013

RULE MAKING ACTIVITIES

DEPARTMENT OF CORRECTIONS AND COMMUNITY SUPERVISION

NOTICE OF ADOPTION

 

I.D No. CCS-22-12-00015-A

Filing No. 513

Filing Date. May. 14, 2013

Effective Date. Jul. 01, 2013

Limits on Administrative Expenses and Executive Compensation

PURSUANT TO THE PROVISIONS OF THE State Administrative Procedure Act, NOTICE is hereby given of the following action:

Action taken:

Addition of Part 513 to Title 7 NYCRR.

Statutory authority:

Correction Law, section 112

Subject:

Limits on Administrative Expenses and Executive Compensation.

Purpose:

To ensure the proper use of taxpayer dollars and the most effective provision of such services to the public.

Substance of final rule:

The Department of Corrections and Community Supervision is adopting as final regulations for 7 NYCRR Part 513.

There have been to minor edits to the text as follows:

Edit to the definition of Executive Compensation in 7 NYCRR subdivision (f) section 513.3.

And a clarification in provision on Limits on Executive Compensation in 7 NYCRR subdivision (b)(2)of section 513.6.

Section 513.3 contains definitions for purposes of this Part, including definitions for administrative expenses, covered operating expenses, covered executive, covered provider, covered reporting period, executive compensation, program services, program services expenses, related organization, reporting period, State-authorized payments, and State funds.

Section 513.4 Limits on Administrative Expenses. Contains limits on the use of State funds or State-authorized payments for administrative expenses.

Section 513.5. Limits on Executive Compensation. Contains restrictions on executive compensation provided to covered executives.

Section 513.6. Waivers. Processes are established for covered providers to seek waivers of the limit on administrative expenses and the limits on executive compensation.

Section 513.7. Reporting. Covered providers are required to report information on an annual basis.

Section 513.8. 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 DOCCS website @ http://www.doccs.ny.gov.

Final rule as compared with last published rule:

Nonsubstantive changes were made in sections 513.3(f) and 513.4(b)(2).

Revised rule making(s) were previously published in the State Register on

October 31, 2012 and March 13, 2013.

Text of rule and any required statements and analyses may be obtained from:

Maureen E. Boll, Deputy Commissioner and Counsel, NYS Department of Corrections and Community Supervision, The Harriman State Campus - Building 2, 1220 Washington Avenue, Albany, NY 12226-2050, [phone], email: [e-mail]

Revised Regulatory Impact Statement

Changes made to the last published rule do not necessitate revision to the previously published Regulatory Impact Statement (“RIS”) for the Department of Corrections and Community Supervision 7NYCRR Part 513.

The revisions to the last published rule merely provide clarifications in the text and correct technical errors (i.e., grammar), which requires no change to the RIS.

Revised Regulatory Flexibility Analysis

Changes made to the last published rule do not necessitate revision to the previously published Regulatory Flexibility Analysis for Small Businesses and Local Governments (“RFASBLG”) for the [insert your agency’s NYCRR reference].

The revisions to the last published rule merely clarify the text and correct technical errors (i.e., grammar), which requires no change to the RFASBLG.

Revised Rural Area Flexibility Analysis

Changes made to the last published rule do not necessitate revision to the previously published Rural Area Flexibility Analysis (“RAFA”) for the Third Amendment to Department of Corrections and Community Supervision 7NYCRR Part 513.

The revisions to the last published rule merely clarify the text and correct technical errors (i.e., grammar), which requires no change to the RAFA.

Revised Job Impact Statement

Changes made to the last published rule do not necessitate revision to the previously published Job Impact Statement (“JIS”) for the Department of Corrections and Community Supervision 7NYCRR Part 513.

The revisions to the last published rule merely clarify the text and correct technical errors (i.e., grammar), which requires no change to the JIS.

Assessment of Public Comment

A Notice of Revised Rule Making was published in the New York State Register on March 13, 2013. The Department of Corrections and Community Supervision received several comments during the public comment period associated with the revised rulemaking. The issues and concerns raised in these comments are set forth below. Issues and concerns have been grouped according to the part of the revised rule they address because they are related or for convenience in providing an efficient response. Because many comments addressed concerns that applied to all of the participating State agencies that are implementing Executive Order No. 38, the responses to comments provided by each of those agencies are incorporated by reference into these responses. The Department of Corrections and Community Supervision response is provided for each issue.

Limits on executive compensation

Comment: One comment was received arguing that covered providers may be in the position of having to attempt to recoup executive compensation funds and may not be able to do so under the Labor Law, and that if a waiver is not granted the covered provider would have no ability to recoup such funds, thus having no mechanism to avoid non-compliance with the proposed regulations.

Response: A covered provider who is faced with this dilemma may request a waiver. The waiver provisions of the regulations are intended to avoid placing covered providers into situations where compliance with competing legal requirements is impossible.

Comment: One comment was received requesting that the Division of the Budget create a list of compensation surveys that will be identified, provided and recognized by the State, and that such surveys consider executive compensation in both the not-for-profit and for-profit fields.

Response: Prior to the effective date guidance will be provided regarding acceptable surveys and comparability factors that must be taken into consideration for determining compensation and additional information regarding how this information will be identified, provided or recognized.

Waivers

Effective Date

Comment: One comment was received requesting that the effective date of the proposed regulations be extended to six months after a covered provider’s first reporting period after the later of (1) the date the regulations become effective or (2) the identification, provision and recognition by the Division of the Budget and the State agencies of compensation surveys, in order to afford not-for-profit entities time to comply.

Response: Additional guidance will be provided prior to the effective date to facilitate compliance and/ or the waiver process. No change has been made to the proposed regulations in response to this comment.