Relates to minimizing any existence of backlog of fair hearings in certain social services districts

Summary of provisions

Section 1 of the bill amends Section 1 of part I of chapter 58 of the laws of 2014 to require any social services district with a population of more than five million to submit to the office of temporary and disa- bility assistance on a quarterly basis a written plan outlining the efforts of such district to minimize any existing backlog of fair hear- ings to be scheduled so that hearings may be conducted within a reason- able time.

In the event that such plans are not timely submitted, or any existing backlog grows over four or more consecutive quarters, the city will be subject to the following chargeback methodology: A percentage of total issues heard is calculated by adding the number of issues reversed and the number of issues withdrawn after scheduling of the hearing. However, issues that are settled after scheduling of the hearing or issues reversed due to a defective notice by the state shall not be included in the calculation.

If the calculated percentage is greater than fifty percent in the given state fiscal year quarter, state reimbursement otherwise payable to the city shall be reduced by a percentage in proportion to the percentage over fifty percent of the non-federal share of total administrative costs of fair hearings operations attributable to the city for the given quarter.

Section 2 provides for this act to take effect immediately; provided, however, that section one of this act shall not affect the expiration of part I of chapter 58 of the laws of 2014.

Justification

In the adopted 2014-15 Budget, the State established a Fair Hearing Chargeback methodology aimed at addressing the backlog of hearings and seeking to improve the city's administrative practices related to with- drawal of "indefensible" fair hearings at the time of hearing. As of

May, 2015, the city has for the most part eliminated the backlog and implemented new procedures to curb negative case actions and resolve cases before a hearing is requested. However, the chargeback language continues to be in effect until it sunsets on March 31, 2016. As a result, under the current methodology, the Human Resources Adminis- tration would have to conduct full hearings, even when the issue has been resolved prior to the hearing, rather than withdraw cases at the time of the hearing in order to avoid the penalty.

The bill proposes to modify the chargeback language to require the City to provide quarterly reports to the Office of Temporary and Disability Assistance outlining the efforts the City has made to minimize any existing backlog. Under this modified chargeback proposal, the City would be subject to the chargeback methodology and penalty only if the reports are not submitted or any existing backlog grows over four or more consecutive quarters, beginning with the quarter commencing April 1, 2015.

The modified methodology for calculating the percentage of an "indefen- sible hearing" will consist of the sum of the number of issues reversed and the number of issues withdrawn after scheduling of the hearing. However, the calculation shall not include issues in which the city has taken actions to settle after scheduling of the hearing and issues reversed because the hearing officer determined that a state notice was defective.

If the calculated percentage is greater than fifty percent in the given state fiscal year quarter, state reimbursement otherwise payable to the city shall be reduced by a percentage in proportion to the percentage over fifty percent of the non-federal share of total administrative costs of fair hearings operations attributable to the city for the given quarter.

Prior legislative history

None.

Fiscal implications

To be determined.

Effective date

This act shall be effective immediately.