Relates to the temporary suspension or limitation of an operating certificate for the misappropriation of public funds

Title of bill

An act to amend the mental hygiene law, in relation to the temporary suspension or limitation of an operating certificate for the misappropriation of public funds

Purpose

This legislation would provide OMRDD with the authority to temporarily limit or suspend the operating certificate of a facility not only when a client's health or safety is in imminent danger, but also when OMRDD has found public funds have been misappropriated.

Summary of provisions

Section 1 of the bill amends paragraph 1 of subdivision (b) of section 16.17 of the mental hygiene law to provide the Commissioner of the Office of Mental Retardation and Developmental Disabilities with the authority to temporarily suspend or limit the operating certificate of a facility without a prior hearing for 60 days when they have found that public funds have been misappropriated.

Section 2 of the bill provides for an effective day on the 90th day after it shall have become law.

Justification

While the vast majority of facilities providing care to New York State's developmentally disabled individuals do an outstanding job, on occasion facilities have been found to have safety, quality of care and fiscal mismanagement issues. Current law allows the Commissioner to temporarily suspend or limit without a prior hearing for not more than 60 days a operating certificate when they have found that a clients health or safety is in imminent danger. This will provide OMRDD with the ability to exercise the same authority when they find misappropriation of public funds has occurred.

A recent investigation by the Commission on Quality of Care and Advocacy for Persons with Disabilities of the Evelyn Douglin Center for Serving People in Need, Inc. located in Brooklyn New York found widespread fiscal mismanagement of public funds. In addition to finding a high paid "no show" employee, the investigation found, among other things, that for a three year period the organization's corporate credit card was used to purchase nearly 518,000 worth of gas in Atlanta Georgia where the Executive Director's son resided and that the Executive Director was paid more than 5140,000 above what had been approved by the board and against agency policies.

While client safety and quality of care must always be the first area of concern, fiscal misappropriation of public funds such as occurred at the Evelyn Douglin Center can not be allowed to flourish. OMRDD must have adequate enforcement tools to ensure that findings of fiscal mismanagement are dealt with swiftly and strongly. This bill aims to provide those added tools.

Legislative history

2008 S.8049/Referred to Rules

Fiscal implications

None

Effective date

90 days after it shall have become law.