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Clarifying Executive Compensation Regulation Revisions
In the aftermath of Executive Order No. 38 (the "Executive Order"), issued by Governor Andrew Cuomo on January 18, 2012, the New York State Department of Health ("DOH") on October 31, 2012 released revised proposed regulations (the "Revised Proposed Regulations") superseding the proposed regulations published on May 30, 2012 (the "Initial Proposed Regulations").

Additionally, all thirteen State agencies that had issued proposed regulations last May promulgated revised regulations provided a 30-day comment period ending November 30, 2012, with OPWDD accepting comments through December 24, 2012.

With the public comment period extending through November 30th, the Revised Proposed Regulations will not be finalized until December. This has now impacted the effective date of the regulations being pushed forward from January 1, 2013 to April 1, 2013. The deadline for any waiver application from the executive compensation or administrative expense limits for the first reporting period – due 90 days in advance (discussed below) – is January 2, 2013.

When the "Assessment of Public Comments" was released, with the Revised Proposed Regulations, several providers raised a variety of concerns and objections to the proposed limits on executive compensation and administrative costs. Responsibilities burdening nonprofit providers which were addressed in this Revised Proposed Regulations included :

  • Giving more time for appealing waiver denials
  • "Grandfathering" existing employment contracts
  • Conforming defined terms and reporting requirements with those used or required by the Internal Revenue Service ("IRS") in the Form 990, "Return of Organization Exempt From Income Tax", filed by certain tax exempt organizations.

For more information the more prominent changes made by the Revised Proposed Regulations and a chart summarizing the most significant differences between the two sets of regulations please click on the article below:

United States: Round Two: Revised Proposed New York State Regulations Restricting Executive Compensation And Administrative Costs Of State-Funded Providers Clarify Requirements But Do Not Change Basic Limits


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