(1) The state department, in cooperation with the state department of human services, shall implement a program concerning residential child health care under this article 5 and articles 4 and 6 of this title 25.5 to provide services pursuant to article 67 of title 27 to medicaid-eligible children residing in residential child care facilities, as that term is defined in section 26-6-102 (33), to medicaid-eligible children residing in psychiatric residential treatment facilities, and children placed by the state department of human services or through county departments of human or social services in licensed or certified out-of-home placement facilities. Children with intellectual and developmental disabilities, as defined in section 25.5-10-202, who are placed in such facilities must meet the out-of-home placement criteria described in section 19-1-107 and must be neglected or dependent as described in section 19-3-102. The state board shall establish the type of rehabilitative or medical assistance services to be provided under the program as described in subsection (3) of this section, to the extent such services are cost-efficient, and the recipient eligibility criteria that may include, but are not limited to, a medical necessity determination and a financial eligibility determination. The state board shall define in rule the staff permitted to order, monitor, and assess seclusion and restraint in psychiatric residential treatment facilities, and the corresponding restrictions on the use of seclusion and restraint.

(2) The state department, in cooperation with the department of human services, may limit the number of recipients or providers participating in the program in accordance with any federal waiver obtained by the state department to implement this section.

(3) The state board, in cooperation with the department of human services, shall promulgate rules as necessary for the implementation of the program, including, but not limited to, rules regarding program services that may include rehabilitative services as appropriate to residential child health care when referred by a physician licensed pursuant to article 36 of title 12, C.R.S. a psychologist licensed pursuant to part 3 of article 43 of title 12, C.R.S., a registered professional nurse as defined in section 12-38-103 (11), C.R.S., who, by reason of postgraduate education and additional nursing preparation, has gained knowledge, judgment, and skill in psychiatric or mental health nursing, a clinical social worker licensed pursuant to part 4 of article 43 of title 12, C.R.S., a marriage and family therapist licensed pursuant to part 5 of article 43 of title 12, C.R.S., or a professional counselor licensed pursuant to part 6 of article 43 of title 12, C.R.S.; the number of recipients participating; eligibility criteria including financial eligibility criteria; reimbursement of providers; and such other rules as are necessary for the implementation and administration of the program. The county contribution established in section 26-1-122, C.R.S., for residential child care facilities may be used by the state to obtain federal financial participation under Title XIX of the social security act for any residential child health care program established pursuant to this section. The county contribution shall not be increased due to any federal financial participation received as a result of any programs established pursuant to this section. Nothing in this section shall be construed to prohibit an adjustment in the county contribution due to caseload or service cost increases. Nothing in this section shall be construed to create a county obligation to directly participate in the financing of any program established pursuant to the "Colorado Medical Assistance Act" as set forth in this article and articles 4 and 6 of this title.

(4) Services provided in a residential child care facility by a provisional licensee as defined in section 12-43-201 (7.8), C.R.S., to medicaid-eligible children shall receive medicaid reimbursement only if approved by the federal government.

(5) (a) On and after July 1, 2018, the state department shall initiate a stakeholder process to develop eligibility criteria, service definitions, and provider qualifications for purposes of drafting and submitting a redesigned waiver that provides home- and community-based services under the children's habilitation residential program waiver for medicaid-eligible children with intellectual and developmental disabilities, as defined in section 25.5-10-202, who have complex behavioral support needs. The redesigned waiver must provide access to services and supports that allow a child or youth, regardless of custody status, to remain in or return to his or her family home, including but not limited to a child or youth in the custody of a county department of human or social services, while also providing crisis stabilization and out-of-home services when necessary.

(b) No later than March 31, 2019, the state department shall submit the redesigned waiver for federal approval.

(c) Once the waiver is approved, the state board shall adopt rules implementing the redesigned waiver.

(d) On and after July 1, 2018, the state department may seek federal authorization to change the agency designated to operate and administer the program from the department of human services to the state department.

(6) This section will be repealed if the federal department of health and human services approves the waiver requested pursuant to subsection (5) of this section. The executive director of the state department shall notify the revisor of statutes in writing of the date on which the condition specified in this section has occurred by e-mailing the notice to . This section is repealed, effective upon the date identified in the notice that the federal department of health and human services approved the waiver or, if the notice does not specify that date, upon the date of the notice to the revisor of statutes.