Opinion ID: 2032263
Heading Depth: 1
Heading Rank: 6

Heading: State Administrative Procedure Act

Text: Article 2 of the State Administrative Procedure Act governs administrative rulemaking in New York. Pursuant to State Administrative Procedure Act § 202 (8), each rule or regulation proposed by an agency must be promulgated in substantial compliance with State Administrative Procedure Act §§ 202 (setting forth general procedures for rulemaking), 202-a (requiring consideration of the regulatory impact of the proposed rule), and 202-b (requiring consideration of regulatory flexibility for small businesses). Petitioners allege that the promulgation of the revised regulations did not comport with this statutory standard. According to petitioners, respondents failed to analyze alternative approaches raised in public comments made pursuant to State Administrative Procedure Act §§ 202-a, 202-b, and 202 (5); failed to supply an adequate Regulatory Impact Statement (RIS) and Regulatory Flexibility Analysis (RFA) that described the needs and benefits of the revised regulations, as required by State Administrative Procedure Act §§ 202-a and 202-b; failed to amend the RIS and RFA, as required by State Administrative Procedure Act § 202 (5) (c); and failed to provide a best estimate of the costs of the proposed regulations, as required by State Administrative Procedure Act § 202-a (3) (c) (iv). The record reveals, however, that the revised regulations were indeed promulgated in substantial compliance with the State Administrative Procedure Act. During the rulemaking process, respondentshaving received public comments from a wide array of interests and in an attempt to cure the procedural shortcomings identified in Medical Society I made substantive revisions to the proposed regulations and issued a Notice of Revised Proposed Rulemaking that contained a Revised Regulatory Impact Statement, a Revised Regulatory Analysis for Small Businesses and Local Governments, a Revised Job Impact Statement, a Revised Rural Area Flexibility Analysis, and an Assessment of Public Comments. The Revised RIS included a statement of alternative suggestions received during the public comment period and an explanation of why most were not adopted; identified suggestions received that were adopted and incorporated into the final version of the revised regulations; and contained statements regarding the potential costs and paperwork implications of the revised regulations for insurers, self-insurers, health care providers, and claimants. The Revised RFA, too, discussed the impact that the revised regulations may have on small businesses, including health care providers, transportation companies, billing agencies, attorneys, and local governments, and concluded that any increased costs associated with the revised regulations would likely be offset by greater efficiencies in the claims process, more prompt payment of benefits, and reductions in systemic fraud and abuse. The Assessment of Public Comments responded to a variety of public comments and set forth the reasons why the Insurance Department regarded some suggestions as unworkable or less efficacious than those proposed in the revised regulations. In response to comments that the time period for comment was too short, respondents extended the public comment period for an additional 15 days.