SOCIAL AND HEALTH SERVICES

(Division of Vocational Rehabilitation)

[Filed May 16, 2025, 11:17 a.m.]

Preproposal statement of inquiry was filed as WSR 25-08-060.

Title of Rule and Other Identifying Information: WAC 388-892-0500 What is DVR's payment system for VR service contracts?

Hearing Location(s): On June 24, 2025, at 10:00 a.m., virtually via Teams or call in. See the department of social and health services (DSHS) website at https://www.dshs.wa.gov/sesa/rpau/proposed-rules-and-public-hearings for the most current information.

Date of Intended Adoption: No earlier than June 25, 2025.

Submit Written Comments to: DSHS Rules Coordinator, P.O. Box 45850, Olympia, WA 98504, email DSHSRPAURulesCoordinator@dshs.wa.gov, fax 360-664-6185, beginning noon on May 21, 2025, by 5:00 p.m. on June 24, 2025.

Assistance for Persons with Disabilities: Contact Shelley Tencza, rules consultant, phone 360-664-6036, fax 360-664-6185, TTY 711 relay service, email shelley.tencza@dshs.wa.gov, by 5:00 p.m. on June 10, 2025.

Purpose of the Proposal and Its Anticipated Effects, Including Any Changes in Existing Rules: This proposal amends existing rule to provide more information to interested parties as to the process the division of vocational rehabilitation (DVR) uses to set rates for service fees and the cadence of these processes. Greater clarity around this topic will benefit interested parties.

Reasons Supporting Proposal: The proposed rule making is necessary pursuant to a corrective action plan required by the Department of Education's Rehabilitation Services Administration for DVR to come into compliance with 34 C.F.R. 361, which is a condition of receiving federal vocational rehabilitation funding. DVR must align WAC with current practices and provide clarity to stakeholders. Failure to implement this change immediately could result in disciplinary action by the Rehabilitation Services Administration and could include loss of federal funds.

Statutory Authority for Adoption: RCW 43.20A.310(2), 74.29.020(3), and 74.29.080(8).

Rule is not necessitated by federal law, federal or state court decision.

Name of Proponent: DSHS, DVR, governmental.

Name of Agency Personnel Responsible for Drafting, Implementation, and Enforcement: Mari Heusman, P.O. Box 45340, Olympia, WA 98504, 360-280-2044.

A school district fiscal impact statement is not required under RCW 28A.305.135.

A cost-benefit analysis is not required under RCW 34.05.328. Rule amendment is exempt because it falls under RCW 34.05.328 (5)(b)(ii), rules relating only to internal governmental operations that are not subject to violation by a nongovernment party.

This rule proposal, or portions of the proposal, is exempt from requirements of the Regulatory Fairness Act because the proposal:

Is exempt under RCW 19.85.061 because this rule making is being adopted solely to conform and/or comply with federal statute or regulations. Citation of the specific federal statute or regulation and description of the consequences to the state if the rule is not adopted: DVR must amend this rule to come into compliance with 34 C.F.R. 361, which is a condition of receiving federal vocational rehabilitation funding.

Is exempt under RCW 19.85.025(3) as the rules relate only to internal governmental operations that are not subject to violation by a nongovernment party.

Scope of exemption for rule proposal:

Katherine I. Vasquez

AMENDATORY SECTION(Amending WSR 03-19-075, filed 9/12/03, effective 10/13/03)

WAC 388-892-0500What is DVR's payment system for VR service contracts?

To establish reasonable reimbursement rates for vocational rehabilitation services while providing informed choice and access, DVR establishes fixed fees for VR contract services as follows:

(1) ((DVR identifies geographic VR service delivery areas based on economic cost of living data))Every six years, or on an interval as announced, and with input received from the service providers, DVR will conduct a fee study to establish community rehabilitation program/independent living and preemployment transition services/transition rates for the services outlined in WAC 388-891A-0527, 388-891A-0705, 388-891A-0715, 388-891A-0725 through 388-891A-0732, 388-891A-0760 through 388-891A-0769.

(2) ((Every two years or on an interval as announced in the contract RFQ, with input received from the service providers, DVR will establish and publish a scheduled of fixed payment fee for each contracted VR service))As needed, DVR will establish and publish a schedule of fixed payment fees for each contracted VR service, which may include an increase, if the budget allows, based on the following:

(a) The percentage increase of the Consumer Price Index (CPI), CPI-U, U.S. city average, not seasonally adjusted, or successor index, as calculated by the U.S. department of labor or successor agency for the 12 months preceding the previous May 1; or

(b) Five percent, whichever is smaller, but in no event shall the fees or maximums be decreased.

(3) ((All VR service contractors, within each geographic VR service delivery area, are paid the fixed payment fee for each contracted VR service))DVR will publish a schedule of the new fixed payment fee for each contracted VR service.

(4) All VR service contractors are paid the fixed payment fee for each contracted VR service.  