IN RE: Application of The MEDICAL SOCIETY OF THE STATE OF NEW YORK (2001)

Order and judgment (one paper), Supreme Court, New York County (Phyllis Gangel-Jacob, J.), entered June 13, 2000, which granted petitioner's article 78 application to the extent of declaring that recent amendments to the regulations in 11 NYCRR part 65, known as the “New Regulations” or “Regulation 68”, are null and void and that their promulgation was unlawful, arbitrary and capricious and an abuse of discretion and enjoined respondents from implementing them, unanimously affirmed, without costs.

 Appellants must, in promulgating regulations under the “no fault laws” (Insurance Law article 51), serve the legislative purpose of protecting the “right of an injured party to prompt and full compensation” (see, Gurnee v. Aetna Life & Cas. Co., 55 N.Y.2d 184, 193, 448 N.Y.S.2d 145, 433 N.E.2d 128, cert. denied, 459 U.S. 837, 103 S.Ct. 83, 74 L.Ed.2d 79).   Construction of the State Administrative Procedure Act (SAPA), as of any statute, should be to aid in effecting the legislative purpose (see, Matter of Am. Tr. Ins. Co. v. Corcoran, 105 A.D.2d 30, 32, 482 N.Y.S.2d 748, affd. 65 N.Y.2d 828, 493 N.Y.S.2d 122, 482 N.E.2d 918), which, as concerns the SAPA, is to ensure that regulators will adopt rules “for the purely practical purpose of attempting to make a legislative program work” (see, Matter of New York State Health Facilities Assn. v. Axelrod, 77 N.Y.2d 340, 349, 568 N.Y.S.2d 1, 569 N.E.2d 860).   In light of these principles, we agree with article 78 court that appellants incorrectly determined that the class of “regulated persons” (see, SAPA § 202[5][b][iii] and 202-a[3][c][i]), includes only insurers and self insurers.   Further, costs to regulated persons that are virtually certain to be incurred immediately upon implementation of the regulations are not “speculative” (cf., Matter of Lake George Chamber of Commerce v. New York State Dept. of Health, 205 A.D.2d 93, 95, 617 N.Y.S.2d 581).   Accordingly, we agree that appellants are in violation of SAPA §§ 202, 202-a and 202-b in the five instances identified by Supreme Court.   We have considered appellants' remaining arguments and find them unavailing.