1. (a) The Department shall, biennially, set the maximum daily rate for Work Activity Program services.
2. (b) The Department shall set three (3) maximums, dependent on the total number of consumers served in the Work Activity Program during the historical period.
3. (c) The maximums shall be established biennially based on the Cost Statements submitted and received by the Department, in a form permitting such determination, by June 1 preceding the payment year for which they are submitted.
4. (d) For each vendor submitting a Cost Statement meeting the time constraints stated in (c) above, the Department shall calculate the gross rate.

5. (e) The Department shall group the above gross rates based on the number of all consumers served in the Work Activity Program during the historical period covered by the Cost Statements. The vendor groupings are as follows:

   1. (1) Small vendors: 0-30 consumers;
   2. (2) Medium vendors: 31-100 consumers;
   3. (3) Large vendors: 101 or more consumers.
6. (f) For each grouping of gross rates calculated, the Department shall compute the mean (average) and standard deviation for that grouping.
7. (g) The mean plus one standard deviation shall be the maximum allowable rate for each grouping for the payment year.
8. (h) If a vendor's rate exceeds the maximum established for its number of consumers, following application of any other cost containment measures in Sections 58871 through 58872, the rate shall be reduced to the maximum for that grouping.

Note: Authority cited: 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.

History

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 A Certificate of Compliance must be transmitted to OAL by 11-19-2004 or emergency language will be repealed by operation of law on the following day.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 Repealed by operation of Government Code section 11346.1(g) (Register 2004, No. 49).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 A Certificate of Compliance must be transmitted to OAL by 3-29-2005 or emergency language will be repealed by operation of law on the following day.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 A Certificate of Compliance must be transmitted to OAL by 7-28-2005 or emergency language will be repealed by operation of law on the following day.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