1. (a) During each state fiscal year, the department will authorize the payment of costs only to the extent of money allocated in the state budget to the program for children with disabilities. The department will authorize benefits on a first-come, first-served basis, except as otherwise provided in this section.
2. (b) The department will reserve a portion of the amount allocated in the state budget to the program for children with disabilities for emergencies; life-threatening diseases, defects, and conditions; and diseases, defects, and conditions that will cause severe, permanent impairment if they are not treated during the fiscal year. The department may determine the amount of money that it will keep in reserve at any time, based on the part of the fiscal year that remains and the demand for services of the program that the department expects during the balance of the fiscal year.
3. (c) The department will pay no more than $20,000 under the program for children with disabilities for any child during any state fiscal year, unless the child's parent or guardian applies for a waiver of the $20,000 limit, and the department finds that there is a severe danger to the child's life or that the child will be permanently disabled without treatment services during the fiscal year that require more than a $20,000 state participation. The child's parent or guardian may provide medical testimony and evidence in support of the request for a waiver.

(Eff. 6/28/85, Register 94)