STATUS: S3068 HUNTLEY No Same as ON FILE: 02/10/11 Mental Hygiene Law TITLE....

Relates to the training of boards of directors or trustees of certain voluntary not-forprofit facilities or corporations 02/08/11 REFERRED TO MENTAL HEALTH AND DEVELOPMENTAL DISABILITIES 02/23/11 COMMITTEE DISCHARGED AND COMMITTED TO ALCOHOLISM AND DRUG ABUSE 05/09/11 REPORTED AND COMMITTED TO FINANCE SPONSORS MEMO: NEW YORK STATE SENATE INTRODUCER'S MEMORANDUM IN SUPPORT submitted in accordance with Senate Rule VI. Sec 1 BILL NUMBER: S3068 SPONSOR: HUNTLEY REVISED 05/09/11

TITLE OF BILL: An act to amend the mental hygiene law, in relation to the training of boards of directors or trustees of certain voluntary not-for-profit facilities or corporations

PURPOSE: This legislation would direct OPWDD, OMH and OASAS to establish minimum training requirements for all members of the board of directors or trustees of a voluntary, not-for-profit corporation or facility which is subject to the jurisdiction of the offices, with the exception of article 28 hospitals. Training would include, but not be limited to, the fiduciary responsibilities of being a board member or trustee and shall provide members or trustees with the tools and best practices necessary to effectively serve in such capacity.

SUMMARY OF PROVISIONS: Section One of the bill amends section 7.39(a) of the mental hygiene law to require OMH to establish minimum training requirements by October 31, 2012 for all members of the board of directors or trustees of a voluntary, not-for-profit corporation or facility which is subject to the jurisdiction of the office, with the exception of article 28 hospitals, and that the latest date of the member's completion of the training requirements shall be included in the list of board members that the agencies must give to OMH annually. Section two of the bill amends section 13.39 (a) of the mental hygiene law to provide that the Office of Mental Retardation and Developmental Disabilities (OPWDD) shall establish no later than October 31, 2012 minimum training requirements for all members of the board of directors

or trustees of a voluntary, not-for-profit corporation or facility which is subject to the jurisdiction of the office, with the exception of article 28 hospitals, and that the latest date of the member's completion of the training requirements shall be included in the list of board members that the agencies must give to OPWDD annually. Section three of the bill amends section 32.37 of the mental hygiene law to require OASAS to establish minimum training requirements by October 31, 2012 for all members of the board of directors or trustees of a voluntary, not-for-profit corporation or facility which is subject to the jurisdiction of the office, with the exception of article 28 hospitals, and that the latest date of the member's completion of the training requirements shall be included in the list of board members that the agencies must give to OASAS annually. Section four of the bill provides for an effective date on the 90th day after it shall have become law, provided that effective immediately changes to the rules or regulations necessary for the implementation of this act may be made.

JUSTIFICATION: While the vast majority of facilities providing care to New York State's developmentally disabled, mentally ill and chemically dependent individuals do an outstanding job, on occasion facilities have been found to have safety, quality of care and fiscal mismanagement issues. Recent investigations by the Commission on Quality of Care and Advocacy for Persons with Disabilities (CQCAPD) have once again highlighted problems that can occur. For example, CQC's report on its investigation of the Evelyn Douglin Center found widespread fiscal mismanagement of public funds by the Executive Director and further found that "the agency's Board of Directors failed in its fiduciary duty to closely monitor the executive director and hold him accountable for the management of the agency." Boards of Directors play a very important role in overseeing the agencies that are responsible for the care of some of our society's most vulnerable individuals and spending millions of dollars in public Medicaid funds in the process. While various training opportunity are available to boards and board members, there are no minimum training requirements in place for board members and no way to know if board members have ever had any training. It is not always easy to find individuals willing and able to serve on agency Board of Directors. Often parents and other concerned citizens agree to serve on a board not recognizing the fiduciary and ethical responsibility they are taking on. Furthermore, parents who are board members can have the uncomfortable position of questioning an agencies' management only to worry about how it may affect their child who is a resident. The recent reports of CQCAPD have highlighted the need for some minimum level of board training on the fiduciary and other responsibilities members hold as well as knowledge of the tools and best practices that are available to effectively serve in such a capacity. Such training should be completed as soon as possible for new board members and should be required of existing board members who have not yet completed similar training. This would go a long way toward ensuring that boards do not serve merely as rubber stamps of an agencies' or executive director's actions but play an active role in overseeing the agency and ensuring the well being of it and its residents.

LEGISLATIVE HISTORY: A similar bill was vetoed in 2008. This is a new bill to address concerns raise in veto message #169 of 2008. 2010: S.5596 - Referred to Mental Health & Developmental Disabilities

FISCAL IMPLICATIONS: None to state.

EFFECTIVE DATE: Ninety days after it shall become law provided that effective immediately changes to the rules or regulations necessary for the implementation of this act may be made.