RULE NO.:RULE TITLE:
58A-5.036Emergency Environmental Control for Assisted Living Facilities
NOTICE OF CORRECTION
Notice is hereby given that the following correction has been made to the proposed rule in Vol. 43 No. 220, November 14, 2017 issue of the Florida Administrative Register.
SUMMARY OF STATEMENT OF ESTIMATED REGULATORY COSTS AND LEGISLATIVE RATIFICATION: The Agency has determined that this rule will have an adverse impact on small business or likely increase directly or indirectly regulatory costs in excess of $200,000 in the aggregate within one year after the implementation of the rule. A SERC has been prepared by the Agency.
Following is a summary of the revised SERC:
Several avenues were pursued to determine the estimated regulatory cost to assisted living facilities for compliance with this proposed rule: an assisted living facility trade association provided estimates and quotes submitted by some of their members, estimates were supplied by a national generator supply company, and a sample review of cost information set forth in sworn petitions for variance or waiver submitted by assisted living facilities requesting additional time to comply with the emergency rule. Estimates provided by the assisted living facility trade association and samples from the petitions were combined to calculate the following estimates.
Less than or equal to 6 beds = $19,033 average cost per facility, with a range from $9,390 to $35,000 per facility. There are 1,568 assisted living facilities in Florida that have fewer than 7 beds; 68 of those facilities have indicated they have achieved compliance with Emergency Rule 58AER17-1 and would be considered in compliance with this proposed rule. The total estimated cost for the remaining 1,500 facilities is $28,549,500.
7 – 49 beds = $68,637 average cost per facility, with a range from $12,280 to $175,000 per facility. There are 774 assisted living facilities in Florida that have between 7 and 49 beds; 42 of those facilities have indicated they have achieved compliance with Emergency Rule 58AER17-1 and would be considered in compliance with this proposed rule. The total estimated cost for the remaining 732 facilities is $50,242,284.
50 – 100 beds = $106,721 average cost per facility (excluding outliers*), with a range of $47,207 to $150,000 per facility. There are 433 assisted living facilities in Florida that have between 50 to 100 beds; 17 of those facilities have indicated they have achieved compliance with Emergency Rule 58AER17-1 and would be considered in compliance with this proposed rule. The total estimated cost for the remaining 416 facilities is $44,395,936. *A conservative approach was used to determine the average cost for this sample size by excluding the higher amount when provided a range of estimated costs. These higher costs differed by almost $400,000 from the lower range so the outlier higher amount was excluded from the calculation.
Estimates provided by a national generator supplier indicate costs related to a 350KW stationary generator (which would be sufficient to power a 120-bed assisted living facility) are estimated at $70,000 to purchase, $70,000 to install, plus fuel costs of $5,700 ($145,700 total for each facility). The total estimate for the 28 facilities in Florida with 120 beds is $145,700 * 28 = $4,079,600.
100+ beds = $439,000 average cost per facility (excluding outliers**), with a range of $306,000 to $550,000 per facility. There are 286 assisted living facilities in Florida that have 100 or more beds (excluding those with exactly 120 beds); 11 of those facilities have indicated they have achieved compliance with Emergency Rule 58AER17-1 and would be considered in compliance with this proposed rule. The total estimated cost for the remaining 275 facilities is $116,645,400. **A conservative approach was used to determine the average cost for this sample size by excluding the lower amount when provided a range of estimated costs. These lower costs differed between $200,000 and $400,000 from the upper range so the outlier lower amount was excluded from the calculation.
Thus, the total cost for the remaining 2,951 assisted living facilities to comply with this proposed rule is $243,912,720.
The Agency has determined that the proposed rule is expected to require legislative ratification based on the statement of estimated regulatory costs.
Copies of the revised SERC can be obtained by contacting Djanet Cannady at cannadyd@elderaffairs.org
