Cal. Code Regs. tit. 17 § 58872

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

Section 58872 - Program Expansion Policy and Procedure

(a) Through its ratesetting procedure, the Department shall allow increased costs incurred in the historical period for program expansion only if such costs for expansion were approved by the Department, in writing, prior to the expenditure. This policy shall apply only to major line items (related to staff, occupancy, and equipment) and shall not apply to any costs incurred by a Work Activity Program prior to the date of the filing of these regulations.

(b) Work Activity Programs shall adhere to the following procedure to submit costs related to program expansion:

(1) A Work Activity Program planning to incur increased costs for program expansion which are likely to exceed the Consumer Price Index (CPI) percent increase as reported in California Abstract for "all items", shall submit a written request for approval of those costs to the Department. The request shall include all applicable information as required for vendorization as a new service provider.

(2) In consultation with the regional center and the Department of Rehabilitation, the Department shall review and evaluate the request.

(3) The Department shall apply criteria as they are relevant to the pertinent policies and procedures relating to: local needs assessment, service capacity, standards, and evaluation of all alternative options to meet the identified need that apply to the vendorization of new service providers.

(4) The Department shall submit a written response to the director of the Work Activity Program within 45 days of the receipt of the request. The response shall specify the rationale applied for approval (in full or in part) or for denial of the request.

(5) If the request is approved, the director of the Work Activity Program shall include a copy of the written letter of approval with the Cost Statement for the historical period in which those costs were incurred.

(6) If the letter of approval does not accompany the Cost Statement, the Department, during the desk audit, shall compare current Cost Statement expense line items to those of the prior year. If increases have occurred above the CPI, the Department shall require the Work Activity Program to provide an explanation of the increased costs. If the increases were due to disapproved program expansion, the costs shall be disallowed in the computation of the rate.

Cal. Code Regs. Tit. 17, § 58872

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 renumbering of former section 58872 to section 58871(c)-(c)(8) and new section, transmitted to OAL 6-21-2005 and filed 8-1-2005; amendments operative 8-31-2005 (Register 2005, No. 31).

Note: Authority: Section 11152, Government Code; and Sections 4857.1, 4859(a), 4860(b) and 4866, Welfare and Institutions Code. Reference: Sections 4859 and 4861(b), Welfare and Institutions Code.