The emergency adoption of these amendments makes additional funds available to affected agencies in a more expeditious fashion than could be achieved by promulgation of the rule using the regular rulemaking process. The more timely receipt of these funds is necessary in order to allow residential providers to pay increased rents, thereby allowing individuals with developmental disabilities to continue to live in these facilities and avoiding disruptive and costly moves for these individuals.

(iii) The annual increase percentage for 2014 is 2.6 percent.

1. Statutory authority:

a. OPWDD has the authority to adopt rules and regulations necessary and proper to implement any matter under its jurisdiction as stated in the New York State Mental Hygiene Law Section 13.09(b).

b. OPWDD has the responsibility, as stated in section 43.02 of the Mental Hygiene Law, for setting Medicaid rates for services in facilities licensed by OPWDD.

2. Legislative objectives: These emergency/proposed amendments further the legislative objectives embodied in sections 13.09(b) and 43.02 of the Mental Hygiene Law. The emergency/proposed amendments update the annual increase percentage for leases for real property.

3. Needs and benefits: In 2012, OPWDD implemented changes in the methodology for reimbursement of allowable costs of continuing residential lease arrangements. Instead of approving rent costs for these arrangements via the Prior Property Approval (PPA) process, OPWDD implemented an annual calendar year increase in the allowable lease costs. The increase is determined by multiplying the base lease amount by a percentage increase established in the regulation. OPWDD updates this percentage increase annually in regulation based on the Rent of Primary Residence component of the Consumer Price Index (CPI). This guarantees an independently derived, statistically sound and uniform means to adjust lease reimbursements fairly and expeditiously.

4. Costs:

a. Costs to the Agency and to the State and its local governments.

OPWDD expects that there will be an increase in costs to the State of approximately $558,500.

There will be no impact to local governments as a result of any of these amendments.

b. Costs to private regulated parties: There are no initial capital investment costs or initial non-capital expenses for either of these amendments.

The adjustments to reimbursement to providers found in these amendments result in an overall fiscal impact on providers that is cost neutral. The adjustments to reimbursement merely take into account overall estimated rent increases.

5. Local government mandates: There are no new requirements imposed by the rule on any county, city, town, village; or school, fire, or other special district.

6. Paperwork: No additional paperwork is required by the emergency/proposed amendments.

7. Duplication: Although the emergency/proposed amendments are derived from federal statistics, the amendments do not duplicate any existing requirements that are applicable to services for persons with developmental disabilities.

8. Alternatives: OPWDD did not consider any alternatives to the emergency/proposed amendments.

9. Federal standards: The emergency/proposed amendments do not exceed any minimum standards of the federal government for the same or similar subject areas.

10. Compliance schedule: The emergency rule is effective May 9, 2014. OPWDD has concurrently filed the rule as a Notice of Proposed Rule Making, and it intends to finalize the rule as soon as possible within the time frames mandated by the State Administrative Procedure Act. These amendments do not impose any new requirements with which regulated parties are expected to comply.

A regulatory flexibility analysis for small businesses and local governments is not being submitted because these amendments do not impose any adverse economic impact or reporting, record keeping or other compliance requirements on small businesses. There are no professional services, capital, or other compliance costs imposed on small businesses as a result of these amendments.

The emergency/proposed amendments are concerned with updating the annual increase percentage for reimbursement of continuing residential lease arrangements in order to provide additional reimbursement to providers for increases in lease costs. The amendments result in an overall fiscal impact that is cost neutral for the affected facilities, and further, the amendments do not result in any new compliance requirements. Due to an overall cost neutral fiscal impact and no new compliance requirements, the emergency/proposed amendments do not have any adverse effects on regulated parties.

These amendments do not impose any requirements on local governments.

These amendments will consequently have no adverse impacts on small businesses or local governments.

A Rural Area Flexibility Analysis for these amendments is not being submitted because the amendments do not impose any adverse impact or significant reporting, record keeping or other compliance requirements on public or private entities in rural areas. There are no professional services, capital, or other compliance costs imposed on public or private entities in rural areas as a result of the amendments.

The emergency/proposed amendments are concerned with updating the annual increase percentage for reimbursement of continuing residential lease arrangements in order to provide additional reimbursement to providers for increases in lease costs. The amendments result in an overall fiscal impact that is cost neutral for the affected facilities, and further, the amendments do not result in any new compliance requirements. Due to an overall cost neutral fiscal impact and no new compliance requirements, the emergency/proposed amendments do not have any adverse effects on regulated parties.

The amendments will consequently have no adverse impacts on public or private entities in rural areas.

A Job Impact Statement for the emergency/proposed amendments is not being submitted because it is apparent from the nature and purposes of the amendments that they do not have a substantial adverse impact on jobs and/or employment opportunities.

The emergency/proposed amendments are concerned with updating the annual increase percentage for reimbursement of continuing residential lease arrangements in order to provide additional reimbursement to providers for increases in lease costs. The amendments result in an overall fiscal impact that is cost neutral for the affected facilities, and further, the amendments do not result in any new compliance requirements. Due to an overall cost neutral fiscal impact and no new compliance requirements, the emergency/proposed amendments do not have a substantial adverse impact on jobs or employment opportunities in New York State.