Michael Seereiter Director of Planning, NYS Office of Mental Health and EO #38 Implementation Lead 1

 EO 38 Language  Status of Regulations  Key Elements  Timeline for Implementation  Responsibility of Providers  EO 38 Website/Waiver Application Portal  Preliminary Guidelines  EO 38 Worksheets  Waiver Application Submission Process  Waiver Review Process 2

Issued January 18, 2012: “…prevent public funds from being diverted to excessive compensation and unnecessary administrative costs, and … ensure that taxpayer dollars are being used to help New Yorkers in need.” 3

Drafts published: May 2012, October 2012, March 2013, and April 2013 (DOH only) Final Regulations published May 29, 2013 Regulations become effective July 1, 2013 Applicability of regulatory limits on Administrative Expenses and Executive Compensation take effect on the first day of the Covered Provider’s Covered Reporting Period on or after July 1,

 Agencies that published draft regulations: 1. Agriculture & Markets 2. Division of Criminal Justice Services 3. Department of Corrections and Community Supervision 4. Department of Health 5. Department of State 6. Homes and Community Renewal 7. Office for the Aging 8. Office of Alcoholism and Substance Abuse Services 9. Office of Children and Family Services 10. Office of Mental Health 11. Office for People with Developmental Disabilities 12. Office of Temporary and Disability Assistance 13. Office of Victim Services 5

 EO #38 applies to Covered Providers, which are individuals/entities: That are not exempt under the regulations, That receive State Funds / State Authorized Payments (SF/SAP) To render Program Services during the Covered Reporting Period, That received at least an average of $500K in SF/SAP in the Covered Reporting Period and the one-year period immediately prior, and For which the SF/SAP received was at least 30% of total in-state revenue in the Covered Reporting Period and the one-year period immediately prior. Limitations apply only to individuals/entities that qualify as a Covered Provider for the Covered Reporting Period 6

1.Governmental Exemption? 2.Covered Reporting Period and One-Year Period Immediately Preceding Determination – Cost Report period, or fiscal year/calendar year 3.Program Services provided in CRP? 4.Other Exemptions? e.g. Primarily products v. services, Specific child care subsidies, DOH and OCFS specific exemptions 5.State Funds/State-Authorized Payments (SF/SAP) – Calculate for CRP and one-year period immediately prior from list of government programs, eliminating excluded amounts 6.$500,000 Test – Average annual amount of SF/SAP received $500,000 or greater in CRP and one-year period immediately prior? 7.30% Test – At least 30% of in-state revenues received in CRP and one-year period immediately Preceding from SF/SAP? 7

Must not exceed 25% for a Covered Reporting Period beginning between July 1, 2013 and June 30, 2014; Must not exceed 20% for a Covered Reporting Period beginning between July 1, 2014 and June 30, 2015; and, Must not exceed 15% for a Covered Reporting Period beginning July 1, 2015 or thereafter. 8

Must not exceed $199K if compensating only with SF/SAP If Executive Compensation exceeds $199,000 using sources of funding other than SF/SAP: 1) the compensation must not exceed the 75 th percentile of compensation for comparable executives in comparable providers; AND, 2) must be reviewed and approved by the Board of Directors 9

 Covered Providers must submit EO #38 Disclosure Form no later than 180 days after the last day of the Covered Reporting Period (July 1, 2014, at the earliest).  Disclosure Form will require attestation from Covered Provider about Administrative Expenses and Executive Compensation paid  Limits will be enforced, unless a waiver was granted. 10

 Applications for waiver from Executive Compensation and Administrative Expenses limits may be submitted starting July 1, 2013  Waiver submission may occur at any point, but no later than the submission of the EO #38 Disclosure Form for the Covered Reporting Period  Waivers granted before last day of Covered Reporting Period based on projected data will be conditional and will need to be substantiated with actual data submitted on the EO #38 Disclosure Form. 11

 Upon EO #38 Disclosure Form submission and finding of non-compliance, Covered Provider may be required to develop and implement Corrective Action Plan  If Corrective Action Plan not implemented properly, Covered Provider may be subject to penalties 12

2013 June ◦ EO #38 website launched ◦ Publication of Preliminary Guidelines for affected parties July 1 ◦ Regulatory limitations go into effect ◦ Waiver application web portal opens and submissions begin; State agency reviews begin 13

2014 June ◦ Publication of Final Guidelines for affected parties ◦ EO #38 Disclosure Form portal (with revised Waiver application submission capacity) opens July 1 ◦ EO #38 Disclosure Form filings begin (will be a different process than for Waiver Applications) ◦ Waiver applications submissions continue 14

 Read and understand regulations  Read and utilize Preliminary Guidance and worksheets  For those that expect to qualify as a Covered Provider, ensure compliance with regulatory limits once the Covered Reporting Period begins on or after July 1, 2013, and/or seek a waiver. 15

16

 Published June 2013  Step-by-step guidance and worksheets to assist with: ◦ Covered Provider Determination ◦ SF/SAP Calculation ◦ Administrative Expenses and Program Services Expenses Calculation ◦ Covered Executive Determination and Executive Compensation Calculation ◦ Waiver application submission instructions 17

 Covered Provider Determination Worksheet  State Funds/State-Authorized Payments (SF/SAP) Worksheet  Administrative Expenses and Program Services Expenses Calculation Worksheet  Executive Compensation Calculation Worksheet 18

1.User Account Creation Covered Provider submits request for account via EO #38 web portal Request routed to State agency identified by Covered Provider as Lead agency (greatest amount of SF/SAP) Agency verifies Lead agency status (discussion with other agencies) Lead agency creates user account for Covered Provider 2. Submission of Waiver Applications Provider submits waiver application via EO #38 web portal Lead agency notifies other agencies of pending waiver application ready for review 19

 Waiver application submitted to Lead Agency  Lead agency assembles all other State agency reviews, if applicable  Once waiver application determination made, Lead Agency notifies Covered Provider  Lead Agency serves as point of contact for Covered Provider throughout waiver process (determinations, additional information requests), for submission of the EO 38 Disclosure Form, and, if necessary, into Corrective Action Plan and Penalties period. 20