O4A urges delay on Ohio rule for area-agency commercial contracts; Department of Aging defends safeguards

Kelsey Birkfeld, chief policy officer of the Ohio Association of Area Agencies on Aging (O4A), told the Joint Committee on Agency Rule Review on Feb. 9 that the Department of Aging’s proposed rule OAC 170:3-28 on commercial relationships would expand bureaucracy, delay partnerships and be more stringent than federal guidance.

“As written, the rule will expand bureaucracy, delay partnerships, and discourage innovation that helps older Ohioans access critical services,” Birkfeld said, urging JCAR and the department to delay the rule’s effective date to allow technical assistance and full implementation planning. She said the Department had offered an April 1 effective date and noted that the Administration for Community Living had dispersed Ohio’s Older Americans Act allocation to the department in December, which O4A members are still waiting to receive.

Alex Lapso, chief administrative officer for the Ohio Department of Aging, responded that the department and its rules-development process are committed to protecting older Ohioans and to working with area agencies. He said the proposed rule targets conflicts of interest, self-dealing and nepotism; exempts contract types already subject to governmental review; and that Ohio’s Common Sense Initiative (CSI) found the rule does not exceed federal law or unduly burden businesses.

“CSI has approved this rule as not unduly burdening businesses more than what is required by federal law,” Lapso said, adding that the department welcomes continued engagement to ensure compliance and stewardship of funds. He also noted the department’s goal of serving “nearly 3,000,000 older adults in this state.”

Lawmakers on the committee expressed concern about the potential administrative burden. Representative Brenner thanked both sides for working with him, said he worried the rule might exceed federal intent and risk loss of federal funding, and suggested alternatives such as random audits instead of review of every contract. Brenner said the April 1 delay could provide needed runway and warned that legislators are prepared to pursue legislation if problems persist.

Lapso clarified the department’s reading of federal law and the rule’s exemptions, saying the rule pertains to specific contract types and that the department does not intend to require review of every AAA contract. He said the rule is intended to enhance transparency about what agencies must — and must not — share with the department.

The committee did not take a formal vote on OAC 170:3-28 during the session. Members agreed to continue discussions and stakeholder engagement ahead of the tentative implementation date. The department was thanked for its testimony and asked to provide follow-up as needed.