Cal. Code Regs. tit. 17 § 58801

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Current through Register 2024 Notice Reg. No. 40, October 4, 2024

Section 58801 - Definitions

(a) As used in this Subchapter, the following terms shall have the meanings specified in Title 17, Section 50602:

(1) Service Provider,

(b) As used in this Subchapter, the following terms shall have the meanings specified in Title 17, Section 54302

(1) Accreditation;

(2) CARF;

(3) Certification;

(4) Department

(5) Habilitation Services;

(6) Individual Program Plan (IPP)

(7) Management Organization

(8) Supported Employment;

(9) Supported Employment Program (SEP);

(10) Vendor;

(11) Vendorization; and

(12) Work Activity Program.

(c) As used in this Subchapter, the term "regional center" shall have the meaning specified in Title 17, Section 54505.

(d) As used in this Subchapter, the term "Cost-of-Living Adjustment" or "COLA" shall have the meaning specified in Title 17, Section 57210.

(e) As used in this Subchapter, the following terms shall mean:

(1) "Allowable supported employment services" means the services approved in the IPP and specified in the IHSP for the purpose of achieving supported employment outcomes, and may include any combination of the following:

(A) Job development to the extent authorized by the regional center;

(B) Program staff time for conducting job analysis of supported employment opportunities for a specific consumer;

(C) Program staff time for the direct supervision or training of a consumer or consumers while they engage in integrated work unless other arrangements for consumer supervision, including, but not limited to, employer supervision reimbursed by the Supported Employment Program, are approved by the regional center;

(D) Community-based training in adaptive functional and social skills necessary to ensure job adjustment and retention;

(E) Counseling with a consumer/family and/or authorized representative to ensure support of a consumer in job adjustment;

(F) Advocacy or intervention on behalf of a consumer to resolve problems affecting the consumer's work adjustment or retention; and

(G) Ongoing support services needed to ensure the consumer's retention of the job;

(2) "Audit, Desk" means a desk review by the Department used to calculate a daily rate based on the Cost Statement data submitted. This does not verify or guarantee that the data submitted or the daily rate are accurate or final;

(3) "Audit, Independent" means an external examination by a Certified Public Accountant (CPA) of a facility's year-end financial statements on which an opinion is issued;

(4) "Audit, Review" means an examination is an independent review by an accountant of a facility's year-end financial statements on which a statement is issued;

(5) "Common Area" means the space within a service provider's location that has no specific purpose related to the cost centers (e.g., lunchrooms, hallways, and rest rooms);

(6) "Consumer, Habilitation Services (consumer)" means an individual who is at least 18 years of age, with a developmental disability receiving habilitation services who has been referred by a Regional Center or by another agency (in accordance with Welfare and Institutions Code section 4850- 4867) and is authorized to receive such services;

(7) "Consumer, Other" means an individual who is funded by a private or government source other than the regional center, Department of Rehabilitation or unfunded by any source (including unfunded sheltered employees);

(8) "Consumer, Vocational Rehabilitation" means an individual funded by the Vocational Rehabilitation Program (VRP) of the Department of Rehabilitation;

(9) "Consumer Productivity Rate" means the percentage of industrial standard that the consumer has produced in the work setting;

(10) "Consumer Stipend" means a monetary payment to a consumer, generally used as an incentive, for purposes other than a consumer wage (e.g., during training, class time, and other time spent in unpaid activities);

(11) "Consumer Subsidy" means that portion of wages exceeding the wages warranted by the consumer's productivity rate that must be paid to meet regulations for Department of Labor's certificate for regular work programs and/or applicable State labor laws, i.e. if a consumer produces at 40% but must be paid 50% of minimum wage;

(12) "Consumer Wage" means a monetary payment to a consumer in accordance with regulations for the Department of Labor certificate and/or any applicable State Labor laws for the production of goods/and or services;

(13) "Cost Center" means a grouping of revenues and expenses based on a similar purpose;

(14) "Cost Center, Administration" means those costs of a general nature that are applicable to all programs operated by the service provider and those specified in these regulations to be administrative in nature;

(15) "Cost Center, Fund Raising" means those costs related to producing income for the service provider from private sources other than production, fee-for-service, and/or grants;

(16) "Cost Center, Non-Program Activities" means those costs generated and incurred by the service provider for revenue generating activities in which no consumers are served (e.g., thrift stores in which no consumers participate, non-habilitation programs);

(17) "Cost Center, Other" means those costs generated and incurred by service providers serving consumers in other than work activity programs which are administered by the same service provider (e.g., day program, residential, camp);

(18) "Cost Center, Production" means those costs generated and incurred by the work activity program service provider from the production of goods and/or services;

(19) "Cost Center, Stores" means those costs incurred and generated by stores or other business operations in which consumers are trained for employment;

(20) "Cost Center, Transportation" means those costs incurred and generated by the ongoing transportation of consumers by the service provider to and from their place of residence and their habilitation services program;

(21) "Cost Center, Work Activity Programs (WAP)" means those costs generated and incurred by the provision of services to a consumer in the work activity program. These services include Habilitation/Rehabilitation which is a single set of services that incorporate work adjustment where the purpose is to enable consumers to develop, maintain, and increase proficiency in work skills and behaviors. Included may be supportive habilitation services which are non-vocational but support the consumer's vocational development and retention of work skills and behavior;

(22) "Cost Statement" means the information required biennially by the Department from the work activity program vendor for the establishment of the rate for Work Activity Programs.

(23) "Direct Production Expense" means those expenses or portion of expenses that are directly attributable to the production of goods or services, including, but not limited to raw materials, marketing, contract procurement, direct production labor, food in food service programs, and shipping and receiving expenses. This does not include expenses for stores and/or other non-program activities;

(24) "Direct Production Labor" means the salary or portion of salary paid to or for an employee for the production of goods and/or services for revenue to the service provider; which includes the cost of non-consumer production workers;

(25) "DOR" means the Department of Rehabilitation;

(26) "Extended services" means training, supervision and support services given to a consumer after transition from intensive services;

(27) "Facility" means a single unit vendored by a regional center that has at least one component of habilitation services that may be operated by a management organization;

(28) "Fee-For-Service" means a fee paid to a facility by a government or private source for a specific service or services provided to a consumer or group of consumers;

(29) "Fiscal Year" means that period of twelve consecutive-months selected and used by a vendor for organizing and reporting accounting records;

(30) "Government Source" means Federal, state, or local public agencies that are supported by public funds;

(31) "Group Services" means job coaching in a group supported employment where services are funded by the Regional Center or DOR. For consumers receiving group services, ongoing support shall be limited to job coaching at the work site;

(32) "Historical period" means the period of time upon which allowable costs for the Work Activity Program are based;

(33) "Holding Company" means a management organization of which the vendor is a subsidiary;

(34) "Income" means all revenue received by a vendor that is not a recovery;

(35) "Indirect Expenses" means vendor expenses that are related to providing services to consumers, and non-consumer related activities administered by the vendor;

(36) "Individual Habilitation Service Plan (IHSP)" means the service plan developed by the habilitation service vendor to meet the employment goals of the IPP;

(37) "Individualized Plan for Employment (IPE)" means an agreed upon, approved, written plan of vocational rehabilitation program services that assists an individual with a disability eligible for Department of Rehabilitation services to achieve an employment outcome.

(38) "Individualized Services" means job coaching and other supported employment services, provided on or off the worksite, for regional center consumers in a supported employment placement at a job coach-to-consumer ratio of one-to-one. These services decrease over time;

(39) "Integrated work" means paid work by a consumer in a community setting in which the consumer interacts with individuals without disabilities, other than those providing services to the consumer, to the same extent that individuals without disabilities in comparable positions interact with other persons;

(40) "Intensive Services" means, except as noted in Section 58842, initial DOR funded ongoing support services as specified by the Code of Federal Regulations, and when related to individualized services, as defined in this section, decrease to stabilization;

(41) "Intervention" means job coaching services necessary for maintenance of employment;

(42) "Job Coaching" means employment-related services specified in the IPP and provided by a job coach, directly to or on behalf of consumers, for both group and individual placements;

(43) "Non-Consumer Production Worker" means a person who is not a consumer and who is hired specifically to produce goods and/or services for revenue for the Work Activity Program;

(44) "Order of Selection" for vocational rehabilitation services means the priority established by the Department of Rehabilitation for selecting eligible individuals to receive vocational rehabilitation services in the event these services cannot be provided to all eligible applicants.

(45) "Payment Year" means the year for which the daily rate is paid for habilitation services, beginning July 1 and ending June 30;

(46) "Percentage of Intervention" means supported employment program job coaching time expressed as a percentage of all the hours worked by the consumer;

(47) "Private Source" means any entity other than a government source;

(48) "Production Consumer" means a consumer who is receiving a wage for the production of goods and/or services under the supervision of the Work Activity Program staff;

(49) "Production Work Day" means a day of attendance in which any paid work is performed by a consumer or non-consumer production worker for the production of goods and/or services;

(50) "Production Work Hour" means an hour in which any paid work is performed during a day of attendance by a consumer or non-consumer production worker for the production of goods and/or services;

(51) "Productivity Rate" means the percentage of the industrial standard established with the Code of Federal Regulations, by the U. S. Department of Labor and the California Industrial Welfare Commission Orders, that the consumer has produced in either a supported Employment or Work Activity Program work setting and when sub-minimum wages apply;

(52) "Program Day" means the period of time during which a Work Activity Program provides services to consumers as established by the vendor in the approved program design;

(53) "Program Expansion" means the addition of a new service program, space at an existing site, or a new site by a vendor;

(54) "Rate" means the daily or hourly rate paid to service providers for their provision of services to habilitation consumers;

(55) "Rate, Base" means the daily or hourly fee based on the historical period and updated by a rate adjustment based on the State approved COLA, if any, through the current fiscal year;

(56) "Rate, Gross" means the base rate without deducting recoveries from indirect expenses;

(57) "Rate, Historical" means the total allowable Work Activity Program costs in the historical period divided by the total days or hours of attendance of consumers in the historical period;.

(58) "Rate, Interim" means the daily, statewide average rate, set by the Department for a new Work Activity Program prior to the establishment of a daily rate based on the historical period;

(59) "Rate Adjustment " means a rate increase or decrease to adjust for cost changes not reflected in the historical period;

(60) "Rate Correction" means the increase or decrease in the rate following a Departmental review or onsite audit, based on source documentation;

(61) "Rate Revision" means a rate increase or decrease in consequence of a review or audit conducted by the Department or the regional center based on additional information provided by the vendor;

(62) "Reconciliation" means the explanation by the service provider of differences between year end financial statements (audited or unaudited) and Revenue Statement (Form DS1950 Work Activity Program Cost Statement [Rev 3/05], Tab C) and Expense Statement (Form DS1950 Work Activity Program Cost Statement [Rev 3/05], Tab D);

(63) "Recoveries" are defined primarily as funds provided to offset indirect expenses by reimbursing a service provider directly for expenses incurred or by direct payment (generally for staff) of such expenses. Rental income or revenue from sales when the production cost has been included as an indirect expense, are also included as recoveries.

(64) "Revenue" means all income and support, including cash, goods, and in-kind received by a service provider;

(65) "Service Delivery Staff" means the Work Activity Program staff working directly with the consumer;

(66) "Shipping and Receiving" means incoming and outgoing transportation and loading area expenses for production materials and supplies, used goods, and finished products;

(67) "Stabilization" means the consumer has reached the employment outcomes as specified in the Individualized Plan for Employment and IPP, the consumer has learned and maintained the job for a minimum of sixty (60) consecutive work days, and is expected to continue in the employment. Stabilization rates (the ratio of job coaching hours to the consumers work hours per month) for consumers receiving individualized services in supported employment requires the following percentages of intervention be achieved:

(A) 20% intervention or less for 60 days; or

(B) 25% intervention or less for 90 days; or

(C) 30% intervention or less for 120 days.

(68) "Staff-To-Consumer Ratio" means the number of service delivery staff to number of consumers in the Work Activity Program reported on the cost statement;

(69) "Staggered Work Schedule" means differing start and stop times for consumer work schedules in a supported employment group;

(70) "State" means the State of California;

(71) "Subsidy" means the funds from a government source (cash or in-kind) other than fee-for-service that offsets allowable indirect expenses;

(72) "Supported Employment Intake" means the process completed by a vendor for the purpose of the provision of Supported Employment services to a consumer, and must include;

(A) Initial meeting with the consumer and, when appropriate, the consumer's authorized representative.

(B) Review of the Job Placement Parameters form with the consumer, and

(C) Development of a plan of action for job placement.

(73) "Supported Employment Placement" means the employment of an individual with a developmental disability in an individual placement by an employer in the community, directly or through contract with a supported employment program. This includes provision of ongoing support services necessary for the individual to retain employment.

(74) "Supported Employment Retention" means a consumer authorized for individual placement services who is placed in an integrated supported employment setting and has remained on the job for ninety (90) days.

(75) "Supportive Habilitation Services" means any combination of direct services to consumers to achieve personal safety practice training, housekeeping maintenance skills training development, health maintenance skills development, including hygiene skills, and other vocationally related activities identified in the vendor's program design and approved by the vendoring regional center, including but not be limited to self-advocacy training, consumer counseling, job club, peer vocational counseling, and career counseling;

(76) "Temporary Transfer" means a regional center-authorized reassignment of a consumer from one habilitation program type to another, for a period not exceeding sixty (60) consecutive days per occurrence, with one thirty (30) consecutive day extension;

(77) "Vocational Rehabilitation Program (VR)" means a statewide program administered by the Department of Rehabilitation to assess, plan, develop, and provide employment services for individuals with disabilities so that those individuals may prepare for and engage in employment opportunities and achieve employment outcomes consistent with their strengths, priorities, concerns, abilities, capabilities, interests, and informed choice. The VR program is an integral part of a statewide workforce investment system.

(78) "Work Adjustment Services" means any combination of direct services to consumers designed to develop physical capacities, psychomotor skills, interpersonal and communicative skills, work habits, vocationally appropriate dress and grooming, productive skills, work practices and work-related skills development, or preparation for a Vocational Rehabilitation referral.

Cal. Code Regs. Tit. 17, § 58801

1. New section filed 7-22-2004 as an emergency; operative 7-22-2004 (Register 2004, No. 30). A Certificate of Compliance must be transmitted to OAL by 11-19-2004 or emergency language will be repealed by operation of law on the following day.
2. Repealed by operation of Government Code section 11346.1(g) (Register 2004, No. 49).
3. New section refiled 11-29-2004 as an emergency; operative 11-29-2004 (Register 2004, No. 49). A Certificate of Compliance must be transmitted to OAL by 3-29-2005 or emergency language will be repealed by operation of law on the following day.
4. New section refiled 3-30-2005 as an emergency; operative 3-30-2005 (Register 2005, No. 13). A Certificate of Compliance must be transmitted to OAL by 7-28-2005 or emergency language will be repealed by operation of law on the following day.
5. Certificate of Compliance as to 3-30-2005 order, including amendment of section, transmitted to OAL 6-21-2005 and filed 8-1-2005; amendments operative 8-31-2005 (Register 2005, No. 31).

Note: Authority cited: Section 11152, Government Code; and Section 4866, Welfare and Institutions Code. Reference: Section 4851, Welfare and Institutions Code.