(A) If, during the period beginning on the first day of May of a calendar year and ending on the first day of January of the immediately following calendar year, the operator of an ICF/IID converts, pursuant to section 5124.60 of the Revised Code, one or more of the ICF/IID's beds to providing home and community-based services, the department of developmental disabilities shall do the following:

1. (1) If the ICF/IID's medicaid certification is terminated because of the conversion, terminate the ICF/IID's franchise permit fee effective on the first day of the quarter immediately following the quarter in which the department receives the notice of the conversion from the director of health;
2. (2) If the ICF/IID's medicaid-certified capacity is reduced because of the conversion, redetermine the ICF/IID's franchise permit fee in accordance with division (B) of this section for the second half of the fiscal year for which the fee is assessed.

(B)

1. (1) To redetermine an ICF/IID's franchise permit fee, the department shall multiply the franchise permit fee rate by the product of the following:

   1. (a) The ICF/IID's medicaid-certified capacity as of the date the conversion takes effect;
   2. (b) The number of days in the second half of the fiscal year for which the redetermination is made.
2. (2) The ICF/IID shall pay its franchise permit fee as redetermined under division (B)(1) of this section in installment payments not later than forty-five days after the last day of March and June of the fiscal year for which the redetermination is made.