1. (a) Work Activity Program rates shall be established, as applicable, according to the following sequence:

   1. (1) Applying, as appropriate, all cost containment policies in accordance with Section 58871.
   2. (2) Setting of the historical rate from Cost Statement; Work Activity Program Cost Statement, DS 1950 (3/05), Tab A (Staff Survey Report); Tab B (Space Utilization Report),Tab C (Revenue Statement); Tab D (Expense Statement); Tab E (Other Expense Statement); Tab G (Consumer Survey Report); and Tab H (Rate Computation Sheet);
   3. (3) Computing the base rate.;
   4. (4) As appropriate, reducing the rate in accordance with the maximum daily rate policy specified in Section 58873.
   5. (5) Adjusting the rate, as appropriate, in accordance with policies on rate adjustments specified in Section 58876.
2. (b) If vendor operations during the historical period are dependent upon grant funds which will terminate before the payment year for which the rate is being set, the Department shall not apply such grant funds as a recovery in its computation of the rate.
3. (c) When a vendor dependent on grant funds has not been in operation long enough to establish a historical period, the daily rate shall be the statewide average rate.

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

History

1. New article 8 (sections 58870-58879) 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 A Certificate of Compliance must be transmitted to OAL by 11-19-2004 or emergency language will be repealed by operation of law on the following day.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 Repealed by operation of Government Code section 11346.1(g) (Register 2004, No. 49).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 8 (sections 58870-58879) 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 A Certificate of Compliance must be transmitted to OAL by 3-29-2005 or emergency language will be repealed by operation of law on the following day.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 8 (sections 58870-58879) 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 A Certificate of Compliance must be transmitted to OAL by 7-28-2005 or emergency language will be repealed by operation of law on the following day.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 subsections (a)(1)-(2) and (a)(5), transmitted to OAL 6-21-2005 and filed 8-1-2005; amendments operative 8-31-2005 (Register 2005, No. 31).