Miller v. DeBuono

OPINION OF THE COURT

On November 7, 1991, the New York State Commissioner of Health received a report that petitioner Patricia Miller, a certified nurse aide employed at the Greenpark Care Center in

Pursuant to Public Health Law § 2803-d (6) (d), petitioner requested a fair hearing, challenging the Commissioner’s written determination. At the conclusion of the hearing, at which the patient and petitioner both testified, the Administrative Law Judge (ALJ) recommended that the Commissioner’s written determination of patient abuse be annulled and the record expunged. In finding that the determination was "not supported by the evidence,” the ALJ noted that, although petitioner’s hand may have come in contact with the patient’s eye, there was no evidence that petitioner intended "to hit or punch or otherwise knowingly [do] what she is charged with doing, that is to hit the patient.”

The Commissioner rejected the ALJ’s proposed findings and conclusion, made contrary findings and sustained the charge of patient abuse against petitioner. On December 2, 1994, the Commissioner’s determination was forwarded to the office of Health Systems Management for placement in the Registry. Thereafter, as mandated by 10 NYCRR 415.4 (b) (1) (ii) (6) (adopted eff Apr. 1, 1992), the Greenpark Care Center terminated petitioner’s employment.

Petitioner then instituted this hybrid CPLR article 78 proceeding and declaratory judgment action objecting to the Commissioner’s alleged retroactive enforcement of the regulatory provision (as applied to her conduct predating the regulation) prohibiting future employment once a finding of abuse has been entered into the Nurse Aide Registry. In addition, petitioner challenged the Commissioner’s written determination as an abuse of discretion, and not in accordance with substantial evidence. Petitioner also sought a declaration that 10 NYCRR 415.4 (b) (1) (ii) (6) violated her due process rights

If the Commissioner sustains the allegations, the subject of the investigation may, within 30 days of notification, request that the record be amended or expunged (Public Health Law § 2803-d [6] [d]). If the Commissioner does not comply with such a request, the subject may pursue an administrative fair hearing and seek expungement on the grounds that the record is inaccurate or the written determination is not supported by the evidence (id.; see also, 10 NYCRR 81.6 [b]). At the fair hearing, the burden of proof is on the Department of Health (Public Health Law § 2803-d [6] [d]) and, as the statute sets forth no specific evidentiary standard, the hearing is governed by the State Administrative Procedure Act which provides:

"[n]o decision, determination or order shall be made except upon consideration of the record as a whole * * * and as supported by and in accordance with substantial evidence” (State Administrative Procedure Act § 306 [1] [emphasis supplied]).

If the prior determination is upheld, the Commissioner shall, in addition to other penalties prescribed by law, report the finding to the Nurse Aide Registry (see, Public Health Law § 2803-d [6] [g]; [7]; § 2803-j [3] [d]; see also, 42 USC § 1396r [e] [2] [requiring States to establish and maintain a Nurse Aide Registry]; 42 USC § 1396r [g] [1] [C] [requiring States to report findings of abuse, neglect or misappropriation to the State Nurse Aide Registry]; 42 CFR 488.335).

As previously noted, effective April 1, 1992, the State Department of Health promulgated a new regulation for residential care facilities Statewide which specifically prohibits nursing homes from employing nurse aides "who have * * * had a finding entered into the New York State Nurse Aide Registry concerning abuse, neglect or mistreatment of residents or misappropriation of their property” (10 NYCRR 415.4 [b] [1] [ii] [6]). The Department’s regulation, issued to satisfy Medicaid and Medicare participation requirements (see, 42 CFR 442.100, 430.10), corresponds to a Federal directive promulgated by the Secretary of Health and Human Services which also prohibits the employment of nurse aides under identical circumstances (see, 42 CFR 483.13 [c] [1] [ii] [B] [eff Apr. 1, 1992]; see also, 56

We agree with the position of respondents, on their appeal, that the Appellate Division erred in annulling petitioner’s discharge on the ground that it resulted from an improper retroactive application of 10 NYCRR 415.4 to conduct which allegedly occurred prior to the adoption of that provision.

In Forti v New York State Ethics Commn. ( 75 NY2d 596 ), this Court stated that " '[a] statute is not retroactive * * * when made to apply to future transactions merely because such transactions relate to and are founded upon antecedent events’ ” (id., at 609 [quoting McKinney’s Cons Laws of NY, Book 1, Statutes § 51, at 87] [emphasis supplied]). We held in Forti that where the requirements for engaging in specified professional activity are changed to govern future professional eligibility, a statute does not operate " 'retroactively]’ in any true sense” even though its application may be triggered by an event which occurred prior to its effective date (see, id., at 609-610 ; see also, Matter of Abrams v Brady, 77 NY2d 741 , 750-751; Matter of Allied Grocers Coop. v Tax Appeals Tribunal, 162 AD2d 791 , 792-793).

Critical to our determination in Forti was that the newly enacted restriction was not intended as punishment for past conduct; rather, the enhanced limitation applied only to then-future transactions notwithstanding that prior conduct might affect, prospectively, those transactions (see, Forti v New York State Ethics Commn., supra, at 609-611 ; Matter of Allied Grocers Coop. v Tax Appeals Tribunal, 162 AD2d, at 792-793 , supra; Matter of Springer v Whalen, 68 AD2d 1011 , 1012, Iv denied 47 NY2d 710 )

The rationale of Forti governs the issue of retroactivity here. Public health regulation 10 NYCRR 415.4 prohibits a nursing home from employing individuals "who have * * * had a finding” of abuse, neglect, mistreatment or misappropriation entered into the State Nurse Aide Registry (10 NYCRR 415.4 [b] [1] [ii] [6] [emphasis supplied]). By its terms, the provision aims to regulate employment in futuro by barring residential care facilities from employing any nurse aide who, previously, has been found guilty of patient abuse.

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Having determined that the regulation was not retroactively applied, we must address petitioner’s contention that the substantial evidence standard of proof contained in section 306 of the State Administrative Procedure Act is constitutionally insufficient as applied in this case. Specifically, she asserts that the Federal Due Process Clause requires the State Department of Health to substantiate a report of patient abuse by a fair preponderance of the evidence prior to forwarding a subject’s name to the Nurse Aide Registry with its resultant discharge from nursing home employment and public disclosure of the finding.

We recognized in Matter of Lee TT. v Dowling ( 87 NY2d 699 , rearg denied sub nom. Matter of Joel P. v Bane, 88 NY2d 920 ) that there is no constitutional prohibition against the State maintaining a register of those suspected of abuse or maltreatment. Matter of Lee TT., however, holds that the inclusion and dissemination of information contained therein which harms not only an individual’s good name, integrity or standing in the community, but also affects that individual’s present employment or effectively forecloses possible future employment opportunities is sufficient to constitute "stigma plus” and invoke the procedural protection of the Due Process Clause (see, id., at 707-709; see also, Paul v Davis, 424 US 693 , 701; Board of Regents v Roth, 408 US 564 , 572-574; Valmonte v Bane, 18 F3d 992 , 1000-1001 [2d Cir]).

Even though entry of a finding in the Registry implicates a protected liberty interest, petitioner must still show that the procedural safeguards established by the State are insufficient to prevent a deprivation of that constitutionally protected interest (see, Matter of Lee TT. v Dowling, supra, at 710 ). Evaluation of the constitutional sufficiency of administrative procedures involves the balancing of three factors: (1) the nature of the private interest affected by the State’s action; (2) the risk of an erroneous deprivation and the effect of additional procedural safeguards; and (3) the governmental interest (see, Mathews v Eldridge, 424 US 319 ; see also, Matter of Lee TT. v Dowling, supra).

Petitioner’s argument in support of her affected private interest is essentially the same argument that supports her liberty interest; i.e., the State’s stigmatizing characterization of her as a patient abuser prohibits not only her present employment, but also effectively forecloses her freedom to take advantage of any other employment within the realm of patient care. We agree that petitioner has a legitimate interest in pursuing employment in her chosen field, and that the stigma of being labeled a patient abuser may well jeopardize

Thus, the decisive factor in this case is the risk of an erroneous deprivation of petitioner’s protected interest through the procedures and safeguards established by the State. The parties do not dispute that the standard of proof necessary to sustain an allegation of patient abuse and forward a subject’s name to the Registry for inclusion thereon is whole-record substantial evidence (see, State Administrative Procedure Act § 306 [1]; Public Health Law § 2803-d [6] [d]). Substantial evidence has been defined as "such relevant proof as a reasonable mind may accept as adequate to support a conclusion or ultimate fact” (300 Gramatan Ave. Assocs. v State Div. of Human Rights, 45 NY2d 176 , 180; see also, Matter of Stork Rest. v Boland, 282 NY 256 , 273-274). Although perhaps more exacting than the minimal standard of "some credible evidence” we found deficient in Matter of Lee TT., substantial evidence "is less than a preponderance of the evidence” (300 Gramatan Ave. Assocs. v State Div. of Human Rights, supra, at 180 ) and, as a burden of proof, it demands only that "a given inference is reasonable and plausible, not necessarily the most probable” (Borchers and Markell, New York State Administrative Procedure and Practice § 3.12, at 51 [1995]; see also, Matter of Berenhaus v Ward, 70 NY2d 436 , 443-444 [as a burden for the trier of fact, the substantial evidence standard may support inconsistent findings]; Matter of Kopec v Buffalo Brake Beam-Acme Steel & Malleable Iron Works, 304 NY 65 ).

Reports of suspected patient abuse are required not only from administrators and health care professionals, but also may be received from any individual, whether or not they have specific knowledge of the particular incident. Thus, under the substantial evidence standard, the inclusion of a nurse aide on the Registry can be supported by nothing more than the hearsay evidence giving rise to the Commissioner’s initial investigation (cf., Matter of Lee TT. v Dowling, supra, at 711-712 ). Indeed, at the fair hearing below, the ALJ recognized

Consequently, petitioner is entitled to a new determination by the Commissioner of whether, on the existing record, the allegation of patient abuse was substantiated by a fair preponderance of the evidence (see, Matter of Lee TT. v Dowling, supra). We have considered petitioner’s remaining contentions and find them to be without merit.

Accordingly, the judgment of the Appellate Division should be modified, without costs, and the matter remitted to that Court with directions to remand to the State Commissioner of Health for further proceedings not inconsistent with this opinion.

Chief Judge Kaye and Judges Titone, Bellacosa, Smith, Ciparick and Wesley concur.

Judgment modified, without costs, and matter remitted to the Appellate Division, Second Department, with directions to remand to respondent Commissioner of Health for further proceedings in accordance with the opinion herein.