Section 58860 - General Provisions(a) The rates shall be based on the allowable costs inclusive of allowable staff time costs associated with the Work Activity Programs only and shall not include expenses for other programs such as Activity Centers, residential programs, camps, or transportation to and from the consumer's home. Staff cost will be determined by a semi-annual two-week time study.(b) The Department shall establish rates which reflect the reasonable cost of both an overall habilitation service and each specific allowable service, activity, or administrative cost comprising that overall service. Direct costs related to services, provided in the areas of shipping/receiving, or business operations, such as stores, shall not be included in the computation of the Habilitation Service cost, but rates paid for consumers receiving services in these areas shall be based on the costs and consumer attendance of the primary work activity operation.(c) For new Work Activity Programs, which have insufficient historical fiscal and consumer data, rates shall be set according to Section 4861 of the Welfare and Institutions Code.(d) When an established habilitation service provider who has a historical period of costs for Work Activity Program services corresponding to that of service providers already vendorized requests a new vendorization, the Department shall:(1) Base the rate on all allowable historical period costs relating to all cost centers, except those for other vendorized programs, and on the total attendance of all consumers served through those cost centers in the historical period, since the service provider cannot have served Habilitation consumers in the historical period; and(2) Determine if the computed rate is comparable (within one standard deviation of the mean) to those of service providers already vendorized that are similar in size, area, and consumer services.(e) Reasonable cost shall not be based on actual cost during a payment year, but on actual allowable costs in a historical period. The principle of reasonable cost, as distinct from actual cost, shall be based on the cost containment methods specified in Sections 58871.(f) The policies and procedures the Department employs to establish rates shall be equitable. The Department shall require all vendors to submit the same type of cost statement data in the same form.(g) The Department shall apply all of the ratesetting policies and procedures specified in these regulations in the same manner.(h) The Cost Statement shall be used by the Department as a basis for establishing rates so that expenses for all services for which the vendor bills the regional center are reported separately for each service.(i) The Department shall not reduce the rate of payment resulting from income, as defined in Section 58801(e)(34), received by vendors.(j) The rate for Work Activity Program services shall be the sole rate paid for such services and shall not be paid if any other fee is paid by any government or private entity other than the regional center for a consumer for such Work Activity Program services.(k) The historical rate for Work Activity Program services shall be based on allowable administrative, production, and service costs divided by the actual habilitation and vocational rehabilitation services consumer attendance during the historical period as reported on the Cost Statement required in Section 58870. (1) Allowable costs include: (A) Administrative -- costs allocated to service programs based on the percentage of indirect costs of each program.(B) Production -- all indirect production costs are allowable to the extent that consumers are not working to the industry's production level. (Net of consumer productivity).(C) Service -- all indirect service costs are allowed up to the amount allocated to Work Activity Program (WAP).(l) This historical rate shall then be adjusted by any State approved COLA(s) to arrive at a daily or hourly rate. The amount of the COLA(s) shall depend directly upon the accounting fiscal year that is the historical period for the service provider (e.g., if the accounting fiscal year of the service provider begins two years prior to the payment year, a two-year COLA shall be added to the rate resulting from the historical period data).(m) Days or hours billed during the historical period by the Work Activity Program and paid by the regional center, Department of Rehabilitation, and any other entity shall be considered to be days or hours of attendance for purposes of rate setting.(n) Because the Legislature has expressed its intent that the Department assures service quality the ratesetting procedure shall seek to maintain an adequate level of habilitation services.Cal. Code Regs. Tit. 17, § 58860
1. New article 7 (sections 58860-58864) and 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 article 7 (sections 58860-58864) and 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 article 7 (sections 58860-58864) and 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 Sections 4857.1, 4859(a), 4860(b) and 4866, Welfare and Institutions Code. Reference: Sections 4859, 4861(b) and 4863, Welfare and Institutions Code.
1. New article 7 (sections 58860-58864) and 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 article 7 (sections 58860-58864) and 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 article 7 (sections 58860-58864) and 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).