OFFICE OF FISCAL ANALYSIS

Legislative Office Building, Room 5200

Hartford, CT 06106 (860) 240-0200

http://www.cga.ct.gov/ofa

sHB-6155

AN ACT AUTHORIZING DEEMED STATUS LICENSE RENEWALS FOR CERTAIN NONPROFIT COMMUNITY SERVICE PROVIDERS.


OFA Fiscal Note

State Impact: See Below

Municipal Impact: None

Explanation

This bill requires the Departments of Children and Families (DCF), Developmental Services (DDS), Public Health (DPH), and Social Services (DSS) to grant “deemed status” license or certification renewals to certain contracted private providers that have earned and maintained accreditation from a recognized national accrediting organization. It allows the departments to charge an administrative fee to cover associated processing costs. It is unknown how many providers will seek deemed status and what fee, if any, departments will charge. Revenue that may be lost from existing licensing fees may, or may not, be recouped or surpassed through deemed status fees established by the departments.

Section 13 results in a potential savings to DSS. The agency contracts with the Connecticut Association of Adult Day Centers Inc. to complete the certification of adult day centers under the Connecticut Home Care Program for Elders waiver. Assuming an amendment to the waiver is approved by the federal Centers for Medicare and Medicaid Services, DSS could experience savings associated with reduced contract costs. Savings are anticipated to the extent that DSS chooses to waive inspections and/or investigations due to applicants meeting accreditation requirements.

Existing Licensure Fees

DCF does not charge fees for its health care institution licenses.

DDS collects a $50 annual licensing fee from private providers for each group home they operate with five or more individuals. There are approximately 85 providers qualified to operate group homes and there are approximately 390 group homes for which providers must pay the fee, generating $19,500 annually for the General Fund.

DPH generates approximately $11,470 for the General Fund every two years and approximately $25,000 for the General Fund every four years through health care institution licensure.

DSS contracts with the Connecticut Association of Adult Day Centers Inc., which does charge a fee for its adult day health care facilities certification.

The Out Years

The fiscal impact identified above would continue into the future subject to the number of entities seeking deemed status and fees established by the departments.