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

5/30/12 N.Y. St. Reg. CCS-22-12-00015-P

NEW YORK STATE REGISTER

VOLUME XXXIV, ISSUE 22

May 30, 2012

RULE MAKING ACTIVITIES

DEPARTMENT OF CORRECTIONS AND COMMUNITY SUPERVISION

PROPOSED RULE MAKING

NO HEARING(S) SCHEDULED

 

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

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 proposed rule (Full text is posted at the following State website: doccs.ny.gov/RulesReg/index.html):

The Department of Corrections and Community Supervision is adding a new Part 513 to 7NYCRR.

The purpose of this Part is to implement Executive Order No. 38, issued by Governor Andrew Cuomo on January 18, 2012, by exercising the authority of the Commissioner of the Department of Corrections and Community Supervision to issue regulations governing the use of State funds and State-authorized payments in connection with providing program services to members of the public. This new Part provides for a limit on administrative expenses and executive compensation of providers of program services in order to meet the State’s ongoing obligation to ensure the proper use of taxpayer dollars and the most effective provision of such services to the public.

Text of proposed 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]

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

Statutory Authority: Correction Law, Section 112.

Legislative Objectives: Correction Law section 112 authorizes the Commissioner of the Department of Corrections and Community Supervision to promulgate regulations in the best interest of meeting the agencies objectives while ensuring the proper use of taxpayer dollars and the effective provision for the delivery of services to the public.

Needs and Benefits: The Department of Corrections and Community Supervision is proposing to adopt the following regulation because the State of New York directly or indirectly funds with taxpayer dollars a large number of tax exempt organizations and for-profit entities that provide critical services to New Yorkers in need and the goal is to ensure that taxpayers' dollars are used properly, efficiently, and effectively to improve the lives of New Yorkers. In certain instances, providers of services that receive State funds or State-authorized payments have used such funds to pay for excessive administrative costs or inflated compensation for their senior executives, rather than devoting a greater proportion of such funds to providing direct care or services to their clients. Such abuses involving public funds harm both the people of New York who are paying for such services, and those persons who must depend upon such services to be available and well-funded. These regulations, which are required by Executive Order No. 38, will ensure that State funds or State-authorized payments paid by this agency to providers are not used to support excessive compensation or unnecessary administrative costs.

Costs: The costs of implementing this rule to affected providers is anticipated to be minimal as most, if not all, of the information that must be reported by such providers is already gathered or reported for other purposes. The costs to the agency of such implementation are expected to be very limited as well, and efforts to ensure efficient centralization of certain aspects of such implementation are underway.

Paperwork/Reporting Requirements: The proposed regulatory amendments will require limited additional information to be reported to the agency by providers receiving State funds or State-authorized payments. To the extent feasible, such reporting shall be made electronically to avoid unnecessary paperwork costs.

Local Government Mandates: The proposed regulatory amendments does not anticipate any additional mandates.

Duplication: This proposed rule does not duplicate, overlap, or conflict with any State or federal statute or rule. However, the proposed rule seeks to minimize the reporting requirements faced by providers by building upon those requirements in the federal internal revenue code that require certain tax-exempt organizations to report information concerning their executive compensation and administrative costs.

Alternatives: Executive Order #38 and Executive Order #43 require the adoption of this proposed regulation; therefore no alternatives were considered.

Federal Standards: These amendments do not conflict with federal standards.

Compliance Schedule: This rule takes effect January 1, 2013.

Regulatory Flexibility Analysis

A Regulatory Flexibility Analysis for Small Businesses and Local Governments is not being submitted with this notice because the proposed rule will not impose any adverse economic impact on small businesses, nor will it impose new reporting, record keeping or other compliance requirements on small businesses or local governments. This regulation will ensure the proper use of taxpayer dollars and the effective provision for the delivery of services to the public.

Rural Area Flexibility Analysis

A Rural Area Flexibility Analysis is not being submitted with this notice because the proposed rule will not impose any adverse economic impact on rural areas. This regulation will ensure the proper use of taxpayer dollars and the effective provision for the delivery of services to the public.

Job Impact Statement

A Job Impact Statement is not being submitted with this notice because it is evident from the subject matter of the regulation that it will have no impact on jobs and employment opportunities. This regulation will ensure the proper use of taxpayer dollars and the effective provision for the delivery of services to the public.