Senate Bill S5155

                                 BILL NUMBER:  S5155

 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.