Cal. Welf. & Inst. Code § 4681.7

(a) Effective July 1, 2011, in order to maintain a consumer’s preferred living arrangement and adjust the residential services and supports in accordance with changing service needs identified in the individual program plan (IPP), a regional center may enter into a signed written agreement with a residential service provider for a consumer’s supervision, training, and support needs to be provided at a lower level of payment than the facility’s designated Alternative Residential Model (ARM) service level. The regional center signed written agreement with the provider shall ensure all of the following:
1. (1) Services provided to other facility residents comply with the applicable service requirements for the facility’s approved service level pursuant to Section 4681.1 and Title 17 of the California Code of Regulations.
2. (2) Protection of the health and safety of each facility resident.
3. (3) Identification of the revised services and supports to be provided to the consumer within the ARM rate structure as part of the establishment or revision of an IPP.
4. (4) Identification of the rate.
(b) If the service needs of a consumer referred to in subdivision (a) change such that the consumer requires a higher level of supervision, training, and support, the regional center shall adjust the consumer’s service level and rate to meet the consumer’s changing needs.
(c) A regional center is authorized to enter into a signed written agreement with a residential service provider for a consumer’s needed services at a lower level of payment and staffing without adjusting the facility’s approved service level. A signed written agreement for a lower level of payment and staffing may only be entered into when a regional center, a consumer, and the facility agree that the facility can safely provide the service and supports needed by the consumer, as identified in the IPP, at the lower level of payment.
(d) Any negotiated lower level of payment pursuant to this section shall be consistent with the payment options within the ARM rate structure and with associated ARM service level requirements.