1. (a) Step five in the process of determining a permanent payment rate is to adjust the amount computed in step two, section 58111, for any money appropriated pursuant to the Budget Act, to fund the gap computed in Section 58320. The Department shall:

   1. (1) Convert the vendor's current permanent payment rate into an amount as follows:

      1. (A) Add back any vendor income subtracted out when the Department computed the vendor's current permanent payment rate. The increased rate shall become the amount for use in this step;
      2. (B) If no vendor income was used in computing the vendor's current permanent payment rate, that rate shall become the amount for use in this step.

   2. (2) If the amount computed in (1):

      1. (A) Is below, or within the allowable range of rates, the gap adjustment combined with the amount computed in (1) shall not exceed the upper limit of the allowable range of rates; or
      2. (B) Exceeds the upper limit of the allowable range of rates, the vendor shall not be eligible for a gap adjustment.

   3. (3) For those vendors eligible for a gap adjustment pursuant to (2)(A), the Department shall:

      1. (A) Increase to the upper limit, the difference between the amount computed in (1) and the amount computed in step two, section 58111 if the appropriation in the Budget Act is sufficient to fully cover the statewide fiscal impact of the gap computed in Section 58320; or

      2. (B) Increase the amount computed in (1) up to the upper limit, based upon the percentage of available funds, if the appropriation in the Budget Act is insufficient to fully cover the statewide fiscal impact of the gap computed in Section 58320. The Department shall, for those eligible vendors:

         1. 1. Determine the percentage of available funds by dividing the statewide fiscal impact of the gap computed in Section 58320, by the amount appropriated in the Budget Act;
         2. 2. Determine the difference between each vendor's amount as computed in step two, section 58111, and their amount as computed in (1);
         3. 3. Multiply the difference computed in 2. by the percentage of available funds computed in 1.; and
         4. 4. Increase the amount computed in (1) by the amount computed in 3.

Note: Authority cited: Section 4690.2, Welfare and Institutions Code. Reference: Sections 4690.2, 4691 and 4691.5, Welfare and Institutions Code.

History

1. New section filed 6-26-90 as an emergency; operative 7-1-90 (Register 90, No. 36). A Certificate of Compliance must be transmitted to OAL by 10-29-90 or emergency language will be repealed by operation of law on the following day.

2. Certificate of Compliance as to 6-26-90 order transmitted to OAL 9-28-90 and filed 10-29-90 (Register 90, No. 46).

3. Change without regulatory effect amending subsections (a)-(a)(1)(B) and (a)(3)(A)-(a)(3)(B)1. filed 1-17-97 pursuant to section 100, title 1, California Code of Regulations (Register 97, No. 3).