Safeguards cash accounts for people with developmental disabilities in a facility under the control of the commissioner of mental health, the commissioner of the office for people with developmental disabilities and the commissioner of alcoholism and substance abuse services.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A4637
SPONSOR: Anderson TITLE OF BILL:
An act to amend the mental hygiene law, in relation to safeguarding cash
accounts for people with developmental disabilities in a facility
PURPOSE OR GENERAL IDEA OF BILL:
Requires OPWDD Commissioner to develop additional policies and proce-
dures for the management of residents' cash accounts.
SUMMARY OF SPECIFIC PROVISIONS:
Section 1 of the bill adds language that requires the Commissioner of
OPWDD to develop a uniform statewide policy for conducting audits of
personal allowance and cash accounts. This is for every facility that
provides services for people with developmental disabilities and holds
an operating certificate from New York State. The developed policies
should also include but are not limited to:
1) The frequency of the audits, who conducts them, and how they are
conducted
2) Provide training on audit procedures for anyone who would conduct the
audits;
3) The purchase and appropriate use of gift cards by or on behalf of
residents;
4) The types of purchases which require receipts or documentation as
well as what types of documentation are needed.
Section 2 of the bill provides the effective date.
JUSTIFICATION:
Under New York State law, residents who live in individualized residen-
tial alternatives (such as community residences) and family care home
settings are entitled to personal allowance' accounts that the resident
can use for personal expenses such as personal shopping, entertainment,
vacation, home and family visits. Staff members who assist residents
with their purchases must comply with the Personal Expenditure Plan.
In October 2016, Inspector General Catherine Leahy Scott released the
results of an investigation of personal allowance accounts maintained by
OPWDD on behalf of OPWDD residents. The Inspector General's office
investigated ten instances of mismanagement of cash accounts maintained
by OPWDD and concluded that OPWDD's current policies regarding the
management of personal allowance accounts fails to adequately safeguard
residents' personal allowance accounts.
Among other things, the report found that residents' personal allowance
accounts were "pilfered" by OPWDD employees because of inadequate safe-
guards and oversight of the accounts by supervisors and OPWDD. The
Report recommended OPWDD take the following actions: Provide standard-
ized training on the management and review of individuals' personal
allowance accounts to staff in supervisory positions; Develop a state-
wide approach to implement the use of debit cards for individuals'
personal allowance accounts and a policy on their use; Issue a policy on
the process for purchasing, recording and using gift cards for individ-
uals in its care; Reinforce the requirement of an original receipt from
the vendor 'documenting a transaction for out-ofresidence mean
purchases; Reinforce existing policy requiring purchases to be invento-
ried upon receipt in the home; and Retrain staff on the requirement to
conduct an inventory at the time of purchase and to follow proper proce-
dures.
This bill would require OPWDD to implement additional policies and
procedures for the management of residents' cash accounts.
FISCAL IMPLICATIONS:
Minimal.
EFFECTIVE DATE:
120 days after it shall have become a law; provided however, that effec-
tive immediately, the addition, amendment, and/or repeal of any rule or
regulation necessary for the implementation of this act on its effective
date are authorized to be made and completed on or before such effective
date.
STATE OF NEW YORK
________________________________________________________________________
4637
2025-2026 Regular Sessions
IN ASSEMBLY
February 4, 2025
___________
Introduced by M. of A. ANDERSON, VANEL, WALSH -- read once and referred
to the Committee on Mental Health
AN ACT to amend the mental hygiene law, in relation to safeguarding cash
accounts for people with developmental disabilities in a facility
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Subdivision (f) of section 16.11 of the mental hygiene law
2 is relettered subdivision (g) and a new subdivision (f) is added to read
3 as follows:
4 (f) The commissioner shall develop a uniform statewide policy for
5 conducting audits for residents of article sixteen facilities for
6 personal allowance and cash accounts. The developed policies shall
7 include but shall not be limited to:
8 (1) the frequency of the audits, who is responsible for conducting the
9 audits, and how the audits shall be conducted;
10 (2) training of appropriate staff on conducting an audit in accordance
11 with policies and procedures and appropriate management of a resident's
12 personal allowance or a cash account;
13 (3) the purchase and appropriate use of gift cards by or on behalf of
14 residents, including, but not limited to, documentation requirements by
15 staff, in relation to including gift cards in a resident's personal
16 expenditure plan and notification to supervisors of the purchase or
17 delivery of a gift card to a resident; and
18 (4) type of purchases which require receipts or documentation by the
19 appropriate staff as well as what types of documentation are appropri-
20 ate.
21 § 2. This act shall take effect on the one hundred twentieth day after
22 it shall have become a law. Effective immediately, the addition, amend-
23 ment and/or repeal of any rule or regulation necessary for the implemen-
24 tation of this act on its effective date are authorized to be made and
25 completed on or before such effective date.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD07655-01-5
