Chapter DCF 57

DCF 57.57(1)(a)3. 3. The licensee, an employee, a volunteer or any other person in regular contact with the residents in care has been convicted of, or has a pending charge for a crime against life or a crime of bodily injury.

DCF 57.57(1)(a)4. 4. A licensee, staff member, volunteer or any other person in regular contact with the residents in care is the subject of a current investigation for alleged child abuse or neglect under s. 48.981, Stats.

DCF 57.57(1)(a)5. 5. The reasons specified under s. DCF 57.56 (1) (a).

DCF 57.57(1)(b) (b) Notice of summary suspension of a license may be written or verbal and shall specify the reason for the department action and the date the action becomes effective.

DCF 57.57(2) (2) If the department determines that circumstances which caused the action in sub. (1) require the immediate relocation of the residents, the department shall order the licensee orally and in writing to relocate the residents to suitable housing and to notify for each resident, the placing agency and parent or guardian within 24 hours after relocating the resident into that housing.

DCF 57.57(3) (3) Within 72 hours after the order in sub. (1), the department shall either permit the reopening of the group home or proceed to revoke the group home’s license.

DCF 57.57(4) (4) The division of hearings and appeals shall hold a preliminary hearing within 10 working days after the effective date of the order in sub. (1) to determine if the license should remain suspended during revocation proceedings. The division of hearings and appeals shall give written notice of the hearing to the licensee and the department.

DCF 57.57 History History: CR 04-067: cr. Register September 2005 No. 597, eff. 1-1-06; correction in (1) (a) 5. made under s. 13.92 (4) (b) 7., Stats., Register November 2008 No. 635.

DCF 57.58 DCF 57.58 Appeal procedure.

DCF 57.58(1) (1) Except as provided in subs. (3) and (4), a department decision to deny, refuse to renew, or revoke a license or to issue an order or decision affecting the licensee under s. 48.64 or 48.715, Stats., may be reviewed under ch. 227, Stats.

DCF 57.58(2) (2) A request for a hearing shall be in writing and submitted to the department of administration’s division of hearings and appeals. The request for a hearing shall be sent to the division of hearings and appeals within 10 days after the date on the notice of the department’s refusal or failure to issue, renew, or continue a license or the department’s action taken under s. 48.715, Stats.

DCF 57.58 Note Note: A request for a hearing may be mailed to Division of Hearings and Appeals, P.O. Box 7875, Madison, WI 53707-7875 or faxed to [phone]. A copy of the request should be sent to the appropriate field office listed in Appendix A.

DCF 57.58(3) (3) An appeal of a denial or revocation based on a certification by the department of failure to pay court-ordered payments of support or failure to comply with a subpoena or warrant issued by the department shall be filed pursuant to s. 49.857, Stats.

DCF 57.58(4) (4) An appeal of a denial, refusal to renew or revocation of a license based on a certification of tax delinquency from the department of revenue shall be filed within 30 days after the date on which the notice of denial, refusal to renew, or revocation as required under s. 73.0301 (2) (b) 1. b., Stats.

DCF 57.58 History History: CR 04-067: cr. Register September 2005 No. 597, eff. 1-1-06; EmR1106: emerg. am. (3), eff. 9-16-11; CR 11-026: am. (3) Register December 2011 No. 672, eff. 1-1-12; EmR1633: emerg. am. (2), eff. 11-18-16; CR 16-051: am. (2) Register July 2017 No. 739, eff. 8-1-17.

DCF 57.59 DCF 57.59 Complaints. Any person having a complaint about a licensed group home or a group home operating without a license may submit that complaint to the department by telephone, facsimile, electronic mail, letter or personal interview. A department licensing representative shall investigate each complaint. The department shall send a written report of the findings of that investigation to the complainant upon request.

DCF 57.59 Note Note: A complaint should be sent, phoned or delivered to the regional field office listed in Appendix A that serves the group home.

DCF 57.59 History History: CR 04-067: cr. Register September 2005 No. 597, eff. 1-1-06.

subch. VII of ch. DCF 57 Subchapter VII — Rate Regulation

DCF 57.60 DCF 57.60 Rate determination.

DCF 57.60(1) (1) The department shall determine the maximum per client rate that each group home may charge for costs associated with room, board, administration, service provision, and oversight of youth in the group home based on all of the following:

DCF 57.60(1)(a) (a) A maximum per client rate determined by the department that no group home may exceed.

DCF 57.60(1)(b) (b) A per client rate that the department determines is appropriate for each group home based on the reasonable and necessary costs of the services provided by that group home.

DCF 57.60(2) (2) A group home shall charge all Wisconsin public purchasers the same rate for the same services.

DCF 57.60 History History: EmR1106: emerg. cr., eff. 9-16-11; CR 11-026: cr. Register December 2011 No. 672, eff. 1-1-12.

DCF 57.61 DCF 57.61 Allowable costs. In determining rates under this subchapter, the department may consider costs incurred for any purpose that is allowable under all of the following:

DCF 57.61(1) (1) Applicable federal regulations, including 2 CFR Part 200, 45 CFR Part 75, and 48 CFR Part 31, except as provided in sub. (2).

DCF 57.61(2) (2) Reserves or profit as allowed under the following:

DCF 57.61(2)(a) (a) For nonprofit corporations, reserves allowed under s. 49.34 (5m) (b) 1., Stats.

DCF 57.61(2)(b) (b) For proprietary group homes, profit allowed on an annual basis is the smaller amount determined under the following 2 methods of calculating profit:

DCF 57.61(2)(b)1. 1. The equity method is the sum of 7.5 percent of allowable operating costs plus 15 percent of average net equity for the year. In this subdivision, “average net equity” means the average cost of equipment, buildings, land, and fixed equipment minus the average accumulated depreciation and average long term liabilities for the year.

DCF 57.61(2)(b)2. 2. The expenses method is 10 percent of allowable operating costs for the year.

DCF 57.61 Note Note: Further explanation is available in the department’s Allowable Cost Policy Manual, which is available in the Partner Resources/Grants and Contract Administration section of the department’s website at http://dcf.wisconsin.gov.

DCF 57.61 History History: EmR1106: emerg. cr., eff. 9-16-11; CR 11-026: cr. Register December 2011 No. 672, eff. 1-1-12; CR 20-003: am. (1), (2) (a) Register July 2020 No. 775, eff. 8-1-20.

DCF 57.62 DCF 57.62 Rate methodology.

DCF 57.62(1) (1) Cost and service information. Each year by July 1, a licensee shall submit the following information to the department:

DCF 57.62(1)(a) (a) A cost and service report in which the licensee reports the group home’s costs, types of services provided, and number of children served in the previous year. The report shall be submitted on a department-prescribed form.

DCF 57.62 Note Note: The cost and service report form is available at https://dcf.wisconsin.gov/ratereg.

DCF 57.62(1)(b) (b) The group home’s most recent audit report under s. DCF 57.07 (1).

DCF 57.62(2) (2) Maximum allowable rate. Each year no later than September 1, the department shall notify licensees of the per client rate that no group home may exceed for services provided in the following calendar year.

DCF 57.62(3) (3) Proposed rates.

DCF 57.62(3)(a) (a) Each year no later than October 1, a licensee shall submit to the department a proposed rate for the following calendar year for each group home that the licensee operates. The licensee shall submit the proposed rate on a department-prescribed form.

DCF 57.62(3)(b) (b) A licensee may request an exception to the department’s maximum rate under sub. (2) if the licensee provides a specialized service or specialized programming to a specific population of children. The exception request shall explain the benefits of the service or programming and why the licensee cannot provide the service or programming within the maximum rate. The exception request shall be made on the rate request form.

DCF 57.62 Note Note: The rate request form is available at https://dcf.wisconsin.gov/ratereg.

DCF 57.62(4) (4) Review of a proposed rate. In reviewing a proposed rate submitted by a licensee under sub. (3), the department shall consider all of the following:

DCF 57.62(4)(a) (a) Whether the proposed rate exceeds the maximum rate determined by the department under sub. (2).

DCF 57.62(4)(b) (b) The group home’s most recent cost and service report under sub. (1) (a).

DCF 57.62(4)(c) (c) The group home’s most recent audit report under sub. (1) (b).

DCF 57.62(4)(d) (d) Whether the group home’s reported costs are within a range of similar costs reported by other group homes for similar items and services.

DCF 57.62(4)(e) (e) The group home’s per client rate in previous years.

DCF 57.62(4)(f) (f) Changes in the consumer price index for all urban consumers, U.S. city average, as determined by the U.S. department of labor, for the 12 months ending on June 30 of the year in which the proposed rate is submitted.

DCF 57.62(4)(g) (g) Changes in the consumer price index for all urban consumers, U.S. city average, for the medical care group, as determined by the U.S. department of labor, for the 12 months ending on June 30 of the year in which the proposed rate is submitted.

DCF 57.62(4)(h) (h) Changes in the allowable costs of group homes based on current actual cost data or documented projections of costs.

DCF 57.62(4)(i) (i) Changes in program utilization that affect the per client rate.

DCF 57.62(4)(j) (j) Changes in the department’s expectations relating to service delivery.

DCF 57.62(4)(k) (k) Changes in service delivery proposed by a group home and agreed to by the department.

DCF 57.62(4)(L) (L) The loss of any source of revenue that had been used to pay expenses, resulting in a lower per client rate for services.

DCF 57.62(4)(m) (m) Whether the group home is accredited by a national accrediting body that has developed child welfare standards.

DCF 57.62(4)(n) (n) Changes in any state or federal laws, rules, or regulations that result in any change in the cost of providing services, including any changes in the minimum wage, as defined in s. 49.141 (1) (g), Stats.

DCF 57.62(4)(o) (o) Competitive factors.

DCF 57.62(4)(p) (p) The availability of funding to pay for the services to be provided under the proposed rate.

DCF 57.62(5) (5) Rate approval.

DCF 57.62(5)(a) (a) Each year no later than November 1, the department shall notify each licensee that submitted the information as required under subs. (1) and (3) of the maximum approved per client rate for the group home for the following year.

DCF 57.62 Note Note: The notification will be sent to the electronic mail address that the licensee has provided to the department.

DCF 57.62(5)(b) (b) If the department determines that a proposed rate submitted under sub. (3) is appropriate based on the factors in sub. (4), the department shall approve the proposed rate.

DCF 57.62(5)(c) (c) If the department determines that a proposed rate submitted under sub. (3) is not appropriate based on the factors in sub. (4), the department shall negotiate with a licensee to determine an agreed to rate. The department’s approved rate under par. (a) shall be based on the factors in sub. (4) and additional relevant information presented during negotiations.

DCF 57.62(5)(d) (d) The department may grant a licensee’s request for an exception to the department’s maximum rate under sub. (3) (b) if the department determines that the licensee has shown by clear and convincing evidence that the licensee’s costs are reasonable and necessary given the costs and benefits of the licensee’s specialized service or specialized programming.

DCF 57.62(6) (6) Noncompliance. If a licensee does not submit all information as required under subs. (1) and (3), the department may impose sanctions and penalties under s. DCF 57.56 and s. 48.715, Stats., including license revocation.

DCF 57.62 History History: EmR1106: emerg. cr., eff. 9-16-11; CR 11-026: cr. Register December 2011 No. 672, eff. 1-1-12.

DCF 57.63 DCF 57.63 Rate resolution.

DCF 57.63(1) (1) Mediation.

DCF 57.63(1)(a) (a) If a licensee has negotiated with the department under s. DCF 57.62 (5) (c) and does not agree to the department’s approved rate under s. DCF 57.62 (5) (a), the licensee may request that the department and the licensee engage in mediation. A licensee shall send a request for mediation within 5 business days after the date of the notice in s. DCF 57.62 (5) (a). The request shall be sent by electronic mail to an address specified by the department.

DCF 57.63 Note Note: Requests for mediation should be sent to [e-mail].

DCF 57.63(1)(b) (b) The department shall notify the licensee of the date of the mediation no later than 10 working days after receiving the request under par. (a).

DCF 57.63(1)(c) (c) The issues discussed in the mediation shall be limited to the factors in s. DCF 57.62 (4).

DCF 57.63(2) (2) Order a rate. If after mediation a rate is not agreed to, the department shall order a rate after considering the factors in s. DCF 57.62 (4) and relevant information presented during negotiation and mediation.

DCF 57.63(3) (3) Contested rate.

DCF 57.63(3)(a) (a) A licensee may appeal the rate ordered by the department under sub. (2) as a contested case under ch. 227, Stats. A request for hearing may be submitted to the division of hearing and appeals within 30 days after the date of the order.

DCF 57.63 Note Note: Requests for hearing may be sent to the Division of Hearings and Appeals, PO Box 7875, Madison, WI 53707

DCF 57.63(3)(b) (b) The basis for a request for hearing shall be limited to the factors in s. DCF 57.62 (4).

DCF 57.63(3)(c) (c) The division of hearings and appeals shall notify the parties in writing at least 10 days before the hearing of the date, time, and location of the hearing and the procedures to be followed.

DCF 57.63 History History: EmR1106: emerg. cr., eff. 9-16-11; CR 11-026: cr. Register December 2011 No. 672, eff. 1-1-12.

DCF 57.64 DCF 57.64 Extraordinary payments.

DCF 57.64(1) (1) A licensee may request that a Wisconsin public purchaser pay an extraordinary payment in addition to the rate established under ss. DCF 57.60 to 57.63 for a specific child in care.

DCF 57.64(2) (2) A licensee may request and a Wisconsin public purchaser may approve a child-specific extraordinary payment if all of the following conditions are met:

DCF 57.64(2)(a) (a) The child has service needs that are not accounted for in the maximum per client rate for the group home as determined by under s. DCF 57.62 (5) or 57.63, as applicable.

DCF 57.64(2)(b) (b) The child’s service needs are not paid for by another source.

DCF 57.64(2)(c) (c) The extraordinary payment will be used to cover expenses that are an allowable cost under s. DCF 57.61.

DCF 57.64(3) (3) A licensee shall submit a request for an extraordinary payment to the Wisconsin public purchaser on a form prescribed by the department. The request shall be dated and signed and include all of the following: