Cal. Welf. & Inst. Code § 4781.5

(a) For the 2006–07 fiscal year only, a regional center may not expend any purchase of service funds for the startup of any new program unless one of the following criteria is met:
1. (1) The expenditure is necessary to protect the consumer’s health or safety or because of other extraordinary circumstances.
2. (2) The program to be developed promotes and provides integrated supported work options for individuals or groups of no more than three consumers.
3. (3) The program to be developed promotes and provides integrated social, civic, volunteer, or recreational activities.
(b) Notwithstanding subdivision (a), a regional center may approve grants for the 2006–07 fiscal year only to current providers to engage in new or expanded employment activities that result in greater integration, conversion from sheltered to supported work environments, self-employment, and increased consumer participation in the federal Ticket to Work program.
(c) Startup contracts for programs funded under this section shall be outcome-based.
(d) The department shall develop criteria by which regional centers shall approve grants, and shall provide prior written authorization for the expenditures under this section.
(e) This section shall not apply to any of the following:
1. (1) The purchase of services funds allocated as part of the department’s community placement plan process.
2. (2) Expenditures for the startup of new programs made pursuant to a contract entered into before July 1, 2002.