Title II, SEC. 2102. STATE PLANS. (a) Plan Requirements. In order to be approved under subsection (b), a State plan for home and community-based services for individuals with disabilities must meet the following requirements (except to the extent provided in subsection (b)(2), relating to phase-in period): (1) Eligibility. (A) In general. Within the amounts provided by the State (and under section 2108) for such program, the plan shall provide that services under the plan will be available to individuals with disabilities (as defined in section 2103(a)) in the State. (B) Initial screening. The plan shall provide a process for the initial screening of individuals who appear to have some reasonable likelihood of being an individual with disabilities. (C) Restrictions. The plan may not limit the eligibility of individuals with disabilities based on (i) income, (ii) age, (iii) geography, (iv) nature, severity, or category of disability, (v) residential setting (other than an institutional setting), or (vi) other grounds specified by the Secretary. (D) Maintenance of effort. The plan must provide assurances that, in the case of an individual receiving medical assistance for home and community-based services under the State medicaid plan as of the date of the enactment of this Act, the State will continue to make available (either under this plan, under the State medicaid plan, or otherwise) to such individual an appropriate level of assistance for home and community-based services, taking into account the level of assistance provided as of such date and the individual's need for home and community-based services. (2) Services. (A) Specification. Consistent with section 2104, the plan shall specify (i) the services made available under the State plan, (ii) the extent and manner in which such services are allocated and made available to individuals with disabilities, and (iii) the manner in which services under the State plan are coordinated with each other and with health and long-term care services available outside the plan for individuals with disabilities. Subject to section 2104(e)(1)(B), such services may be delivered in an individual's home, a range of community residential arrangements, or outside the home. (B) Allocation. The State plan (i) shall specify how it will allocate services under the plan, during and after the 7-fiscal-year phase-in period beginning with fiscal year 1996, among covered individuals with disabilities, and (ii) may not allocate such services based on the income or other financial resources of such individuals. (C) Limitation on licensure or certification. The State may not subject consumer-directed providers of personal assistance services to licensure, certification, or other requirements which the Secretary finds not to be necessary for the health and safety of individuals with disabilities. (D) Consumer choice. To the extent possible, the choice of an individual with disabilities (and that individual's family) regarding which covered services to receive and the providers who will provide such services shall be followed. (E) Requirement to serve low-income individuals. The State plan shall assure that (i) the proportion of the population of low-income individuals with disabilities in the State that represents individuals with disabilities who are provided home and community-based services either under the plan, under the State medicaid plan, or under both, is not less than (ii) the proportion of the population of the State that represents individuals who are low-income individuals. (3) Cost sharing. The plan shall impose cost sharing with respect to covered services only in accordance with section 2105. (4) Types of providers and requirements for participation. The plan shall specify (A) the types of service providers eligible to participate in the program under the plan, which shall include consumer-directed providers, and (B) any requirements for participation applicable to each type of service provider. (5) Budget. The plan shall specify how the State will manage Federal and State funds available under the plan during each 5-fiscal-year period (with the first such period beginning with fiscal year 1996) to serve all categories of individuals with disabilities and meet the requirements of this subsection. (6) Provider reimbursement. (A) Payment methods. The plan shall specify the payment methods to be used to reimburse providers for services furnished under the plan. Such methods may include retrospective reimbursement on a fee-for-service basis, prepayment on a capitation basis, payment by cash or vouchers to individuals with disabilities, or any combination of these methods. In the case of the use of cash or vouchers, the plan shall specify how the plan will assure compliance with applicable employment tax provisions. (B) Payment rates. The plan shall specify the methods and criteria to be used to set payment rates for services furnished under the plan (including rates for cash payments or vouchers to individuals with disabilities). (C) Plan payment as payment in full. The plan shall restrict payment under the plan for covered services to those providers that agree to accept the payment under the plan (at the rates established pursuant to subparagraph (B)) and any cost sharing permitted or provided for under section 2105 as payment in full for services furnished under the plan. (7) Quality assurance and safeguards. The State plan shall provide for quality assurance and safeguards for applicants and beneficiaries in accordance with section 2106. (8) Advisory group. The State plan shall (A) assure the establishment and maintenance of an advisory group under section 2107(b), and (B) include the documentation prepared by the group under section 2107(b)(4).. (9) Administration. (A) State agency. The plan shall designate a State agency or agencies to administer (or to supervise the administration of) the plan. (B) Administrative expenditures. Effective beginning with fiscal year 2003, the plan shall contain assurances that not more than 10 percent of expenditures under the plan for all quarters in any fiscal year shall be for administrative costs. (C) Coordination. The plan shall specify how the plan (i) will be integrated with the State medicaid plan, titles V and XX of the Social Security Act, programs under the Older Americans Act of 1965, programs under the Developmental Disabilities Assistance and Bill of Rights Act, the Individuals with Disabilities Education Act, and any other Federal or State programs that provide services or assistance targeted to individuals with disabilities, and (ii) will be coordinated with health plans. (10) Reports and information to secretary; audits. The plan shall provide that the State will furnish to the Secretary (A) such reports, and will cooperate with such audits, as the Secretary determines are needed concerning the State's administration of its plan under this subpart, including the processing of claims under the plan, and (B) such data and information as the Secretary may require in order to carry out the Secretary's responsibilities. (11) Use of state funds for matching. (A) In general. The plan shall provide assurances that Federal funds will not be used to provide for the State share of expenditures under this subpart. (B) Incorporation of disqualification for certain provider-related donations and health related taxes. The Secretary shall apply the provisions of section 1903(w) of the Social Security Act to plans and payment under this title in a manner similar to the manner in which such section applies to plans and payment under title XIX of such Act. (b) Approval of Plans. The Secretary shall approve a plan submitted by a State if the Secretary determines that the plan (1) was developed by the State after consultation with individuals with disabilities and representatives of groups of such individuals, and (2) meets the requirements of subsection (a). (c) Monitoring. The Secretary shall monitor the compliance of State plans with the eligibility requirements of section 2103 and may monitor the compliance of such plans with other requirements of this subpart. (d) Regulations. The Secretary shall issue such regulations as may be appropriate to carry out this subpart on a timely basis.