SEC. 2. Section 4685.7 is added to the Welfare and Institutions Code, to read:

4685.7 (a) Self-determination services shall be available within every the 21 regional center catchment areas, and only when consistent with federal approval of a self-directed waiver, shall expand as set and the requirements set forth in this section. In order to provide opportunities to participate in a self-directed services program, the State Department of Developmental Services shall adopt regulations to implement the procedures in this section.

(b) For purposes of this section, the following definitions shall apply:

(1) “Financial management services” means a service or function that assists the family or individual participant to manage and direct the distribution of funds contained in the individual budget. This may include the facilitation of the employment of service workers by the family or individual participant including, but not limited to, being responsible for Federal, State, and local tax withholding/payments, unemployment compensation fees, wage settlements, fiscal accounting, and expenditure reports. Specific qualifications shall be established by the State Department of Developmental Services and required of a financial management services provider.

(2) “Supports brokerage” means a service or function that assists participating families and individuals participants to make informed decisions about the individual budget, and assists in locating, accessing and coordinating services consistent with, and reflecting the participants their needs, and reflect individual circumstances needs and preferences. The service is available to assist in identifying immediate and long-term needs, developing options to meet those needs, participating in the person-centered planning process and development of the individual program plan, and obtaining identified supports and services.

(3) “Supports broker” means a person, selected and directed by the participant, who fulfills the supports brokerage service or function and assists the participant to participate in the SDS program. who facilitates communication between the individual participant and the self-directed services program, identifying and assisting as needed to assure individuals and their families understand the responsibilities involved with directing one’s own services. The supports broker fulfills the supports brokerage service or function. Specific qualifications shall be established by the State Department of Developmental Services and required of a supports broker provider.

(4) “Waiver” means a waiver of federal law pursuant to Section 1396n of Title 42 of the United States Code.

(5) “Independence Plus Self-Directed (IPSD) Waiver Program” or “Self-Directed Waiver Program” means a federal waiver to the state’s Medicaid plan that provides for a delivery of services program that allows people with developmental disabilities who need or require long-term supports and services, and their families, greater opportunity to take charge of their own health by utilization of self-directed services.

(6) “Self-determination services,” SDS” or “self-directed services” means a voluntary delivery system consisting of a defined and comprehensive mix of services and supports personalized to or integrated and inclusive services that enhance the ability of a participant n individual his or her family, as appropriate, to control the decisions and resources required to meet all or some of the objectives in his or her individual program plan. SDS services occur in settings available and accessible to all community members and are designed to assist the participant to achieve personally defined outcomes in the most inclusive community setting. SDS programs shall be consistent with a federally approved IPSD waiver and shall include, but are not limited to: community living supports, health and clinical services, employment, transportation, training and educational supports, medical and environmental services, recreation and communication support, respite, advocacy services, supports brokerage, and financial management services. Any references to “self-determination services” shall have the same meaning as self-directed services.

(7) “Individual budget” means the monetary value of services available to the participant family or individual to support the individual’s individual program plan. The individual budget is constructed using a fair, equitable, and transparent methodology.

(8) “Risk pool” means an aggregate account comprised of a portion of each self-directed services participant’s yearly individual budget that is allocated for use in addressing unanticipated needs.

(9) “Participant” means an individual, and when appropriate, his or her parents, legal guardian or conservator, or authorized representative, who is participating in the SDS program.

“Employer of record” refers to the individual or legally authorized representative, functioning in the capacity of controlling what tasks self-directed service providers will perform and how the tasks will be performed. The term “employer of record” is a generic terms that refers to the legal employer of a worker. and in a self-directed program includes service workers hired directly by individuals.

(10) “Congregate setting” means an environment in a defined geographical area, the makeup of which is defined by the presence of people with disabilities roughly disproportionate to that of the population at large.

(c) The Self-Directed Services Program is hereby established to provide participants individuals with developmental disabilities greater control of needed services and supports to purchase needed services and supports with an individual budget. The methodology for determining individual budgets shall be detailed in departmental regulations and shall limit the individual budgets to 90 percent of historic annual purchase of service costs for consumers with similar characteristics. at the regional center that established the consumer’s individual program plan. For the purposes of this section, the individual budget methodology shall be constructed using data residing on the State Department of Developmental Services information systems. The SDS program shall provide:

(1) An individual budget methodology based on factors including, but not limited to: age, type of residence, type of disability, and functional skill level.

(2) Establishment of a risk pool equivalent to 5% of historic annual purchase of service costs for consumers participating in the SDS program to address unanticipated needs as described in subdivision (m).

(3) Establishment of savings to the general fund equivalent to 5% of historic annual purchase of service costs for consumers participating in the SDS program.

It is the intent of the Legislature that 5 percent of the annual appropriation for the SDS Program will go to a risk pool for consumer’s unanticipated needs, and 5 percent will be reflected as savings to the state in the SDS Program.

(d) The SDSelf-directed services programs shall include, but not be limited to, all the following requisites:

(1) In order to participate in a self-directed services program, an individual A Participant shall be three years of age or older.

(2) An individual receiving services living in a licensed residential services facility, as defined in California Code of Regulations, Title 17, Section 54302(44) and 543402(45), or receiving day program services, as defined in California Code of Regulations, Title 17, Section 54302(16) is not eligible for the SDS program. Nothing shall prohibit individuals from receiving person-centered planning services in order to make other congregate setting shall make satisfactory arrangements for the transition to the voluntary discharge from such living arrangements upon enrollment a self-directed services program.

(3) The participant individual shall have a developmental disability as defined in Section 4512.

(4) The participant individual shall reside in a regional center geographic area where a self-directed services program is available.

(5) (4) The individuals participant shall accept all of the following terms and conditions:

(A) The person participant shall undergo an in-depth orientation to the SDS Program prior to enrollment.

(B) The person participant shall agree to utilize the services and supports available within the SDS Program only when generic services are not available, and except for Medi-Cal state plan benefits when applicable.

(C) An individual participant who is not Medi-Cal eligible may receive self-directed services if all other IPSD Waiver Program eligibility requirements are met and a recent history of service needs is evidenced by regional center service utilization.

(D) An individual who is utilizing any services and supports participant shall consent to use only services necessary to implement his or her individual program plan as described in the IPSD Waiver Program and as defined in paragraph (6) of subdivision (b) as an available service in the self-directed services program and shall agree to comply with any and all other terms and conditions for participation in the self-directed services program described in this section.

(E) The person shall accept and manage self-directed services within the individual budget amount that has been established by calculated by the regional center in accordance with departmental regulations planning team, and described in the individual’s participant’s individual program plan.

(F) The individual budget amount shall be calculated no more than once in a 12-month period.

(G) The person participant shall employ utilize the services of a financial management services entity for the purposes of payroll, disbursement of funds, and related duties pursuant to the individual’s participant’s approval. A financial management services provider may either be hired or designated by the participant. A designated financial management services provider shall perform services on a non-paid basis. A participant or parent of a participant shall provide financial management services only as a designated provider and only if An individual may provide financial management services on his or her own behalf if the capacity to fulfill the roles and responsibilities as described in the financial management services provider qualifications can be demonstrated to the regional center.

(H) The person participant shall employutilize the services of a supports broker for the purpose of providing services and functions as described in paragraphs (2) and (3) of subdivision (b). A supports broker may either be hired or designated by the participant. A designated supports broker shall perform support brokerage services on a non-paid basis. A participant of a parent of a participant shall provide supports broker services on a non-paid basis and only fn individual may provide supports brokerage services on his or her own behalf, or his or her designated representative may provide the services on behalf of the individual, if the capacity to fulfill the role and responsibilities as described in the supports broker provider qualifications can be demonstrated to the financial management services provider.

(6) The individual, except when the individual is a minor, will participant shall implement his or her self-directed services individual program plan. An adult participant may designate an authorized representative to effect the implementation. In the case of a minor, a legally responsible family guardian, or conservator will implement the self-directed services. In the event that an adult individual in a self-directed program is unable to fully implement his or her identified services, there shall be an authorized representative who may be a family member, friend, legal guardian, other legally appointed representative to effect the implementation. The representative shall meet all of the following requirements:

(A) He or she shall dDemonstrated knowledge and understanding of the individual’s needs and preferences.

(B) He or she shall be wWillingness and able ability to comply with SDS program requirements.

(C) He or she shall Be at least 18 years of age.

(D) He or she shall be a Approved by the individual to act in the capacity of a representative.

(e) If at any time during participation in a self-directed program a regional center determines that an individual participant is no longer eligible to continue based on the criteria described in subdivision (d), the regional center shall inform the individual participant of his or her ineligibility and shall provide for the individual’s transition from the SDS Program to other services and supports. This shall include the development of a new individual program plan that reflects the services and supports necessary to meet the individual’s needs. Upon determination of ineligibility pursuant to this subdivision, the participant shall be sent written notice of fair hearing rights, as required by Section 4701. The regional center shall ensure there is no gap in services and supports during the transition period.

(f) An individual determined ineligible as described in subdivision (e), or who voluntarily exits the SDS Program shall be permitted to return to the SDS Program after meeting all applicable eligibility criteria and after a minimum of 12 months.

(g) The SDS program confers the rights established in Chapter 7 (commencing with Section 4700) except for the individual budget methodology. SDS Program participants may appeal an error in the calculation of his or her individual budget to the executive director of the regional center within 30-days of the completion of the individual program plan. The individual may appeal to the Director of the State Department of Developmental Services, or his or her designee, any decision made by the regional center executive director pursuant to this subdivision within 15 days of receipt of the written decision of the executive director. The State Department of Developmental Services decision shall be final.

(h) Only the financial management services provider is required to apply for vendorization in accordance with Section 54300 et seq. of Subchapter 2 of Chapter 3 of Title 17 of the California Code of Regulation, for self-directed services programs. All other service providers shall have applicable state licenses, certifications, or other state required documentation, but are exempt from the vendorization requirements set forth in Title 17 of the California Code of Regulations. The financial management services entity shall ensure and document that all service providers are qualified for any service that may be delivered to any individual in a self-directed services program.

(i) Individuals Participants enrolled in a self-directed services program may request, at no charge, criminal history background checks for persons seeking employment as a service provider or providing direct care services to the individual participant.

(1) Criminal history records checks pursuant to this subdivision shall be performed and administered as described in subdivisions (b) and (d) through (h), inclusive of Section 4689.2 and Sections 4689.4 through 4689.6, inclusive and as same apply to vendorization of providers and hiring of employees to provide services for family home agencies and family homes.

(2) The State Department of Developmental Services may enter into a written agreement with the Department of Justice to implement this subdivision.

(j) Persons enrolled in a self-directed services program pursuant to this section and utilizing an individual budget for services and supports are exempt from Section 4783 and from the Family Cost Participation Program.

(k) The State Department of Developmental Services may develop, revise, and maintain regulations implementing the requirements of this section. The adoption of any emergency regulations to implement this section that are filed with the Office of Administrative Law on or before January 1, 2007, shall be deemed to be an emergency and necessary for the immediate preservation of the public peace, health and safety, or general welfare.

(l) Notwithstanding any provision of law, a person receiving services and supports in a congregate setting pursuant to Section 4685.5 may elect to either participate in the IPSD Waiver Pr SDS program or continue to receive self-directed services within their current scope and existing procedures and parameters.

(m) Persons participating in the IPSD Waiver Program or a self-directed services program Participants shall also be included in the self-directed services program SDS risk pool. The risk pool shall be allocated by the State Department of Developmental Services to the regional centers through an application a process specified by the State Department of Developmental Services. Funds in the risk pool may be accessed more than once in a lifetime by a participant and shall be used only for unanticipated and in the event of substantial change in the individual’s participant’s service and support needs that were not known at the time the individual budget was set; or relocation of individual residence; or catastrophic injury or illness.

(n) The State Department of Developmental Services may advance funds to a financial management services provider pursuant to SDS program regulations and in order to facilitate a participant’s individual budget and/or transition into the SDS program.