3304:1-21-07 Closing a facility.

 

 

 

Rule Summary and Fiscal Analysis (Part A)

 

Rehabilitation Services Commission

Agency Name

 

Business Enterprise Program                            Mary Theodoras

Division                                                                  Contact

 

400 East Campus View Blvd Mail Station WA-2 Columbus OH 43235-4604

614-781-8718

Agency Mailing Address (Plus Zip)                                       Phone                     Fax

3304:1-21-07

Rule Number

AMENDMENT

TYPE of rule filing

Rule Title/Tag Line              Bureau-operator        agreements,        bureau-temporary/proxy

operator agreements, initiating and concluding responsibility for the facility.

RULE SUMMARY

1.  Is the rule being filed consistent with the requirements of the RC 119.032 review? Yes

2.  Are you proposing this rule as a result of recent legislation? No

3.  Statute prescribing the procedure in accordance with the agency is required to adopt the rule: 119.03

4.  Statute(s) authorizing agency to adopt the rule: 3304.29(D)

5.  Statute(s) the rule, as filed, amplifies or implements: 3304.29(D)

6.  State the reason(s) for proposing (i.e., why are you filing,) this rule:

The rule has been reviewed to meet the requirements of the Ohio Revised Code

119.032 to review and update administrative rules every five years. This year the Rehabilitation Services Commission, Bureau of Services for the Visually Impaired (BSVI), is scheduled to review this Business Enterprise Program Administrative Rule. The rule is proposed amended to update language and references; to clarify language for the immediate suspension and/or termination of a bureau-operator agreement; to establish uniform temporary facility assignment procedures; and to delete language in one paragraph that has been moved to the BSVI Business

Enterprise Program Administrative Rule 3304:1-21-09.

7.  If the rule is an AMENDMENT, then summarize the changes and the content of the proposed rule; If the rule type is RESCISSION, NEW or NO CHANGE, then summarize the content of the rule:

The rule is proposed amended to update language and references; to clarify language for the immediate suspension and/or termination of a bureau-operator agreement; to establish uniform temporary facility assignment procedures; and to delete language that was moved to another BSVI Business Enterprise Program Administrative Rule. The rule creates components of bureau-operator and temporary bureau-operator agreements and reasons to terminate an agreement; establishes temporary facility assignment procedures; and institutes procedures for closing inventories.

8.  If the rule incorporates a text or other material by reference and the agency claims the incorporation by reference is exempt from compliance with sections

121.71 to 121.74 of the Revised Code because the text or other material is generally available to persons who reasonably can be expected to be affected by the rule, provide an explanation of how the text or other material is generally available to those persons:

This response left blank because filer specified online that the rule does not incorporate a text or other material by reference.

9.  If the rule incorporates a text or other material by reference, and it was infeasible for the agency to file the text or other material electronically, provide an explanation of why filing the text or other material electronically was infeasible:

This response left blank because filer specified online that the rule does not incorporate a text or other material by reference.

10.  If the rule is being rescinded and incorporates a text or other material by reference, and it was infeasible for the agency to file the text or other material, provide an explanation of why filing the text or other material was infeasible:

Not Applicable.

11.  If revising or refiling this rule, identify changes made from the previously filed version of this rule; if none, please state so:

10/31/2005 Changed the words "operators" to "operators/licensees," "vacancy" to "vacant facility" throughout the rule.

In paragraph (C) changed the language "To maintain continuity of service at an unassigned facility" to "In regard to vacant facilities"; added the words "at its discretion."

In paragraph (E), language updated to clarify that the BE assistant manager shall maintain a temporary-assignment list for each district; to identify that operators/licensees shall be listed on a temporary-assignment list for all districts of interest to them.

Paragraphs (E)(1)(a) and (c) are combined to become (E)(1) to clarify that the operator/licensee will be placed in rank order, the highest being the operator/ licensee with the lowest average net proceeds over the twelve months preceding the date when the temporary-operator vacant facility becomes available.

The originally filed paragraph (E)(1) and (E)(1)(b) are deleted.

In paragraph (E)(2) changed "zero projected income" to " zero income"; language updated to establish that if there is more than one operator/licensee on the temporary-assignment list who has zero income, the assistant manager shall offer the temporary assignment to the operator/licensee believed to have the best potential for operating the facility; to add a definition of "zero income."

In paragraph (E)(3) language updated to add a reason to exclude offering a temporary assignment to those on the list who have been deemed unable to meet the requirements for operation of the vacant facility.

In paragraph (E)(4) language updated to combine the originally filed paragraphs (E)(4), (E)(4)(a), and (E)(4)(a)(i) to state that in situations where there is the possibility of loss of a facility, an exception to the low-income priority may be made by the assistant manager; to delete paragraphs (E)(4)(a)(ii) and (iii) and (E)(4)(b).

In paragraph (E)(5)(a) language updated to establish that the survey to apply for temporary assignments are to be returned in order to update the

temporary-assignment list by October first of each year.

In paragraph (E)(5)(b) language updated to establish that operators/licensees will have the opportunity to update their interest in a temporary-assignment each quarter.

The originally filed paragraphs (E)(5)(c) and (d) are deleted since operators/ licensees may express interest in a temporary assignment at any location throughout Ohio.

The originally filed paragraph (E)(6)(c) language updated to specify that operators/

licensees seeking to be included on a temporary-assignment list must "not have an active management plan" instead of saying "not have management practice issues."

The originally filed paragraph (E)(6)(d) is deleted.

In paragraph (G) language updated to add the word "performed" for further clarification.

To the originally filed paragraph (H) language updated to add that when the bureau must take charge of a facility, the BE specialist may assume temporary custody of the cash on hand until outstanding service charges and inventory adjustment charges due to the bureau are resolved.

12. 119.032 Rule Review Date: 4/4/2005

(If the rule is not exempt and you answered NO to question No. 1, provide the scheduled review date. If you answered YES to No. 1, the review date for this rule is the filing date.)

NOTE: If the rule is not exempt at the time of final filing, two dates are required: the current review date plus a date not to exceed 5 years from the effective date for Amended rules or a date not to exceed 5 years from the review date for No Change rules.

FISCAL ANALYSIS

13.  Estimate the total amount by which this proposed rule would increase

/decrease either revenues/ expenditures for the agency during the current biennium (in dollars): Explain the net impact of the proposed changes to the budget of your agency/department.

This will decrease revenues.

$43,680

The rule is proposed amended to update language and references; to clarify language for the immediate suspension and/or termination of a bureau-operator agreement; to establish uniform temporary facility assignment procedures; and to delete language that was moved to another BSVI Business Enterprise Program Administrative Rule. These changes may decrease revenues and increase expenditures.

The added temporary-operator language may have an effect on revenues/expenditures. This language codifies previous practices. The amount of decrease in revenues is an expense that the program has incurred as a normal expenditure when temporarily filling vacancies.

The BSVI Business Enterprise program is funded by the 21.3% by the operators through set-aside payments and 78.7% through Federal 110 Funds; it does not use Ohio General Revenue Funds.

14.  Identify the appropriation (by line item etc.) that authorizes each expenditure necessitated by the proposed rule:

N/A

15.  Provide a summary of the estimated cost of compliance with the rule to all directly affected persons. When appropriate, please include the source for your information/estimated costs, e.g. industry, CFR, internal/agency:

The added temporary-operator language may decrease revenues and increase expenditures. The BSVI Business Enterprise program is funded 21.3% by the operators through set-aside payments and 78.7% through Federal 110 Funds; it does not use Ohio General Revenue Funds. When a facility is "unexpectedly" vacated due to death, illness, etc., the BSVI Business Enterprise program assistant manager reviews the area temporary assignment operator list and contacts a licensee, who meets the criteria stated in Administrative Rule 3304:1-21-07, to offer the opportunity of the temporary assignment. Financial matters are negotiated and the temporary position is filled. It is estimated that 10% of the 140 facilities statewide (14 facilities) will require a temporary assignment per year. Of these 14 facilities, it is estimated that the BSVI Business Enterprise program will need to pay a fee for the temporary operation of the site in 50% of these situations (7 facilities). In 50% of these situations, when the income of a temporary assignment facility is sufficient to provide a reasonable income for the temporary operator, there are no additional cost to the BSVI Business Enterprise program. For the balance of these facilities (7 facilities), fees are negotiated between the BSVI Business Enterprise program assistant manager and the temporary operator and are based on the demographics (size, location, amount of revenues generated by) of the facility. Revenues received from these sites is generally less because the operator is new to the site and is there on a temporary basis. Program expenditures increase in order to replace unsaleable inventory (estimated at $1,000 per facility x 7 sites equals $7,000), the need to hire an outside cleaning company to prepare the facility for reopening (emergency cleaning by an outside company is $5,000 x 7 facilities equals $35,000) and the cost of staff overtime payments ($240 x 7 sites equals

$1,680). Adding $7,000 + $35,000 + $1,680 equals $43,680.

16.  Does this rule have a fiscal effect on school districts, counties, townships, or municipal corporations? No

17.  Does this rule deal with environmental protection or contain a component

dealing with environmental protection as defined in R. C. 121.39? No