NOTICES

INDEPENDENT REGULATORY REVIEW COMMISSION

Actions Taken by the Commission

[26 Pa.B. 4145]

   The Independent Regulatory Review Commission met publicly at 11 a.m., Thursday, August 8, 1996, and took the following actions:

Regulations Approved:

   Department of Revenue #15-369:  Payments by Electronic Funds Transfer (amends 61 Pa. Code § 5.3)

   (Editor's Note: For the text of the regulations pertaining to this order, see 26 Pa.B. 4089 (August 24, 1996).)

   Department of Public Welfare #14-435. Nursing Facility Intergovernmental Transfer (amends 55 Pa. Code Chapter 1181)

   (Editor's Note: For the text of the regulations pertaining to this order, see 26 Pa.B. 4086 (August 24, 1996).)

Commissioners Present:  John R. McGinley, Jr., Chairperson; Robert J. Harbison, III, Vice Chairperson; Arthur Coccodrilli; John F. Mizner; Irvin G. Zimmerman

Public Meeting held
August 8, 1996

Department of Revenue; Treasury Department--Payments by Electronic Funds Transfer; Doc. No. 15-369

Order

   On July 9, 1996, the Independent Regulatory Review Commission (Commission) received this regulation from the Department of Revenue and the Treasury Department (Departments). This rulemaking updates 61 Pa. Code § 5.3 relating to payments required to be paid by electronic funds transfer under the authority of section 9 of the act of April 9, 1929 (72 P. S. § 9). Notice of proposed rulemaking was omitted for this regulation; it will become effective upon publication in the Pennsylvania Bulletin.

   In 1992, the Secretary of Revenue and the State Treasurer jointly adopted a regulation relating to payments by electronic funds transfer. A taxpayer may satisfy their obligation to remit a payment by electronic fund transfer by delivering a certified or cashier's check, in person or by courier with the appropriate return or deposit statement to the Department of Revenue. However, late in 1994, the Department of Revenue relocated the Bureau of Receipts and Control.

   The Department of Revenue relocated the Bureau of Receipts and Control from the fourth floor to the ninth floor of Strawberry Square in Harrisburg. Therefore, the address under section 5.3(e) needs to be amended to reflect the new correct address for making electronic fund transfers.

   In order to assist taxpayers with this transition, an announcement setting forth the address change was mailed in March 1995, to all taxpayers who have pre-registered to submit payments by certified or cashier's check.

   We have reviewed this regulation and find it to be in the public interest. In view of the fact that the regulation currently contains an incorrect address, this regulation should be adopted to include the correct address.

Therefore, It Is Ordered That:

   1.  Regulation No. 15-369 from the Department of Revenue and Treasury Department, as submitted to the Commission on July 9, 1996, is approved; and

   2.  The Commission will transmit a copy of this Order to the Legislative Reference Bureau.

Commissioners Present:  John R. McGinley, Jr., Chairperson; Robert J. Harbison, III, Vice Chairperson; Arthur Coccodrilli; John F. Mizner; Irvin G. Zimmerman

Public Meeting held
August 8, 1996

Department of Public Welfare--Nursing Facility Intergovernmental Transfer; Doc. No. 14-435

Order

   On July 22, 1996, the Independent Regulatory Review Commission (Commission) received this regulation from the Department of Public Welfare (DPW). The DPW amended the original final-omitted rulemaking on July 30, 1996. This rulemaking would amend 55 Pa. Code Chapter 1181. The authority for this regulation is contained in section 443.1 of the Public Welfare Code (62 P. S. § 443.1). Notice of proposed rulemaking was omitted for this regulation; it will become effective upon publication in the Pennsylvania Bulletin.

   Federal law allows states to use funds transferred from public entities, such as county governments, to qualify as the State's share of funding for Medicaid services. This money is matched by the Federal government. The DPW has entered into an intergovernmental transfer agreement for fiscal year 1995-1996 with a group of county governments. As a result of this agreement, the DPW has been able to get additional Federal funds to use to reimburse nursing homes. Through discussions with the county nursing homes, an agreement was made as to how these additional funds should be distributed.

   This regulation codifies where the DPW has provided for increase payments for nursing home services. The regulation is retroactive to July 1, 1995, and only effective until December 31, 1995. The December 31, 1995, ending date corresponds to the expiration date of the DPW's retrospective payment system for nursing homes. On January 1, 1996, the DPW began reimbursing nursing homes under its new prospective reimbursement system, commonly referred to as case-mix. The DPW will be doing another rulemaking that implements the remainder of the intergovernmental transfer agreement effective for the period of January 1, 1996, to June 30, 1996.

   The regulation results in additional payments to all nursing homes participating in the Medicaid program. The additional funds are derived from Federal funds and no State monies are used. The amount of additional payment will approximate the amount of the intergovernmental transfer agreement which was $395 million for fiscal year 1995-96. Since this regulation is only effective for the first half of fiscal year 1995-96, only a portion of the $395 million is expended as a result of the regulation.

   We have reviewed this regulation and find it to be in the public interest. The rulemaking is necessary to make the DPW's regulations accurately reflect how it reimburses nursing homes in the Medicaid program. We encourage the DPW to proceed with its companion rulemaking that will codify the provisions of the intergovernmental transfer agreement for the January 1, 1996, through June 30, 1996 time period in an expeditious manner.

Therefore, It Is Ordered That:

   1.  Regulation No. 14-435 from the Department of Public Welfare, as submitted to the Commission on July 22, 1996, and amended on July 30, 1996, is approved; and

   2.  The Commission will transmit a copy of this Order to the Legislative Reference Bureau.

JOHN R. MCGINLEY, Jr.,   
Chairperson

[Pa.B. Doc. No. 96-1400. Filed for public inspection August 23, 1996, 9:00 a.m.]

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