New York Codes, Rules and Regulations › Title 14 - DEPARTMENT OF MENTAL HYGIENE › Chapter XXI - OFFICE OF ALCOHOLISM AND SUBSTANCE ABUSE SERVICES › Part 812 - Limits On Administrative Expenses And Executive Compensation › Section 812.5 - Limits on executive compensation

Current through Register Vol. 46, No. 28, July 10, 2024
(a)
Limits on executive
				compensation.
Except if a covered provider has obtained a waiver pursuant
				  to section
				  812.6  of this
				  Part, a covered provider as defined in this regulation shall not use State
				  funds or State-authorized payments for executive compensation given directly or
				  indirectly to a covered executive in an amount greater than $199,000 per annum,
				  provided, however, that the Division of Budget shall review this figure
				  annually to determine whether adjustment is necessary based on appropriate
				  factors and subject to the approval of the Director of the Division of the
				  Budget. Commencing on July 1, 2013, the limits on executive compensation
				  pursuant to this Part shall be effective and applicable to each covered
				  provider on the first day of each covered provider's respective covered
				  reporting period.
(b)
Program services rendered by covered executives.
The limit on executive compensation pursuant to this Section
				  shall not be applied to limit reimbursement with State funds or
				  State-authorized payments for reasonable compensation paid to a covered
				  executive for program services, including but not limited to supervisory
				  services performed to facilitate the covered provider's program services,
				  rendered by the executive outside of his or her managerial or policy-making
				  duties. Documentation of such program services rendered shall be used by the
				  covered provider to determine that percentage, if any, of the covered
				  executive's compensation that is attributable to program services and that
				  compensation shall not be considered in the calculation of his or her executive
				  compensation. Such documentation shall be maintained and provided to the office
				  or its designee upon request. Clinical and program personnel in a hospital or
				  other entity providing program services, including chairs of departments, heads
				  of service, chief medical officers, directors of nursing, or similar types of
				  personnel fulfilling administrative functions that are nevertheless directly
				  attributable to and comprise program services shall not be considered covered
				  executives for purposes of limiting the use of State funds or State-authorized
				  payments to compensate them.
(c)
Covered providers with multiple
				sources of State funds or State-authorized payments.
If a covered provider receives State funds or
				  State-authorized payments from multiple sources, the provider's compliance with
				  the limits on executive compensation in subdivision (a) of this section shall
				  be determined based upon the total amount of such funding received and the
				  reimbursements received from all sources of State funds or State-authorized
				  payments. As set forth in section
				  812.7  of
				  this Part, the covered provider shall report all of such State funds and
				  State-authorized payments in the form specified by the office or its
				  designee.
(d)
Subcontractors and agents of covered providers.
The limits on executive compensation in subdivision (a) of
				  this section and the reporting requirements in section
				  812.7  of
				  this Part shall apply to subcontractors and agents of covered providers if and
				  to the extent that such a subcontractor or agent has received State funds or
				  State-authorized payments from the covered provider to provide program or
				  administrative services during the reporting period and would otherwise meet
				  the definition of a covered provider but for the fact that it has received
				  State funds or State-authorized payments from the covered provider rather than
				  directly from a governmental agency. A covered provider shall incorporate into
				  its agreement with such a subcontractor or agent the terms of these regulations
				  by reference to require and facilitate compliance. Upon request, covered
				  providers shall promptly report to the funding or authorizing agency the
				  identity of such subcontractors and agents, along with any other information
				  requested by that agency or by the office or its designee. A covered provider
				  shall not be held responsible for a subcontractor's or agent's failure to
				  comply with these regulations.
(e)
Covered providers receiving State
				funds or State-authorized payments from county or local government or an entity
				on contracting on its behalf.
The office or its designee, rather than the county or local
				  unit of government, shall be responsible for obtaining the necessary reporting
				  from and compliance by such covered providers, and shall issue guidance to
				  affected county and local governments to set forth the procedures by which the
				  office or it designee shall do so.
(f)
Other limits on executive
				compensation.
If the contract, grant, or other agreement is subject to more
				  stringent limits on executive compensation, whether through law or contract,
				  such limits shall control and shall not be affected by the less stringent
				  limits imposed by these regulations. However, the definition and interpretation
				  of terms in this Part shall not be affected or limited by the definition or
				  interpretation of terms in other regulations or agreements.
(g) A covered provider's contract or other
				agreement with a covered executive agreed to prior to July 1, 2012 shall not be
				subject to the limits in this section during the term of the contract, except
				that:
(1) covered providers must apply for a
				waiver for any contracts or agreements with covered executives for executive
				compensation that exceeds or otherwise fails to comply with these regulations
				if such contracts or agreements extend beyond April 1, 2015; and
(2) renewals of such contracts or agreements
				after the completion of their term must comply with these
				regulations.