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Substitute House Bill No. 5042

PUBLIC ACT NO. 96-188

AN ACT CONCERNING GROUP HOME FINANCING.

Be it enacted by the Senate and House of Representatives in General Assembly convened:

Section 1. Section 17b-244 of the general statutes, as amended by section 65 of public act 95-160, is repealed and the following is substituted in lieu thereof:

(a) The room and board component of the rates to be paid by the state to private facilities and facilities operated by regional education service centers which are licensed to provide residential care pursuant to section 17a-227, but not certified to participate in the Title XIX Medicaid program as intermediate care facilities for persons with mental retardation, shall be determined annually by the Commissioner of Social Services, except that rates effective April 30, 1989, shall remain in effect through October 31, 1989. Any facility with real property other than land placed in service prior to July 1, 1991, shall, for the fiscal year ending June 30, 1995, receive a rate of return on real property equal to the average of the rates of return applied to real property other than land placed in service for the five years preceding July 1, 1993. For the fiscal year ending June 30, 1996, and any succeeding fiscal year, the rate of return on real property for property items shall be revised every five years. The commissioner shall, upon submission of a request BY SUCH FACILITY, allow actual debt service, comprised of principal and interest, ON THE LOAN OR LOANS in [excess] LIEU of property costs allowed pursuant to section 17-313b-5 of the regulations of Connecticut state agencies, WHETHER ACTUAL DEBT SERVICE IS HIGHER OR LOWER THAN SUCH ALLOWED PROPERTY COSTS provided such debt service terms and amounts are reasonable in relation to the useful life and the base value of the property. IN THE CASE OF FACILITIES FINANCED THROUGH THE CONNECTICUT HOUSING FINANCE AUTHORITY, THE COMMISSIONER SHALL ALLOW ACTUAL DEBT SERVICE, COMPRISED OF PRINCIPAL, INTEREST, AND A REASONABLE REPAIR AND REPLACEMENT RESERVE ON THE LOAN OR LOANS IN LIEU OF PROPERTY COSTS ALLOWED PURSUANT TO SECTION 17-313b-5 OF THE REGULATIONS OF CONNECTICUT STATE AGENCIES, WHETHER ACTUAL DEBT SERVICE IS HIGHER OR LOWER THAN SUCH ALLOWED PROPERTY COSTS, PROVIDED SUCH DEBT SERVICE TERMS AND AMOUNTS ARE DETERMINED BY THE COMMISSIONER AT THE TIME THE LOAN IS ENTERED INTO TO BE REASONABLE IN RELATION TO THE USEFUL LIFE AND BASE VALUE OF THE PROPERTY. For the fiscal year ending June 30, 1992, the inflation factor used to determine rates shall be one-half of the gross national product percentage increase for the period between the midpoint of the cost year through the midpoint of the rate year. For fiscal year ending June 30, 1993, the inflation factor used to determine rates shall be two-thirds of the gross national product percentage increase from the midpoint of the cost year to the midpoint of the rate year. For the fiscal years ending June 30, 1996, and June 30, 1997, no inflation factor shall be applied in determining rates. The Commissioner of Social Services shall prescribe uniform forms on which such facilities shall report their costs. Such rates shall be determined on the basis of a reasonable payment for necessary services. Any increase in grants, gifts, fund-raising or endowment income used for the payment of operating costs by a private facility in the fiscal year ending June 30, 1992, shall be excluded by the commissioner from the income of the facility in determining the rates to be paid to the facility for the fiscal year ending June 30, 1993, provided any operating costs funded by such increase shall not obligate the state to increase expenditures in subsequent fiscal years. Nothing contained in this section shall authorize a payment by the state to any such facility in excess of the charges made by the facility for comparable services to the general public. The service component of the rates to be paid by the state to private facilities and facilities operated by regional education service centers which are licensed to provide residential care pursuant to section 17a-227, but not certified to participate in the Title XIX Medicaid programs as intermediate care facilities for persons with mental retardation, shall be determined annually by the Commissioner of Mental Retardation.

(b) The Commissioner of Social Services and the Commissioner of Mental Retardation shall adopt regulations in accordance with the provisions of chapter 54 to implement the provisions of this section.

Sec. 2. This act shall take effect from its passage.

Approved May 31, 1996. Effective May 31, 1996.

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