California DDS FMS Vendor Standards for 2026
California DDS published new Financial Management Services vendor standards on October 14, 2026. Organizations supporting Self-Determination Program participants should review the change now, especially if they operate an FMS business or depend on an FMS vendor for service payments. [1]
The practical first step is to separate your role from your payment relationship. An FMS organization has different responsibilities from an agency delivering services paid through FMS. Build your response around the role your organization actually performs.
What changes for existing FMS vendors
The directive names San Diego Regional Center as the sole vendoring regional center for SDP FMS. Existing vendors transfer rather than restart vendorization. They must submit the completed review tool, supporting documents and relevant program-design amendments within 45 calendar days of issuance to FMS.vendorization@sdrc.org. Reviews of existing vendors occur outside the Provider Directory. [1-2]
Treat that submission as a documented project. Assign one person to own the package, keep a list of missing evidence, and preserve proof of delivery. Do not wait for an individual review-group notice before preparing the submission.
Counting 45 calendar days after October 14 gives November 28, 2026. This is a calendar calculation, not a separately announced deadline. Confirm practical submission arrangements with SDRC and avoid assuming an extension because the date falls on a weekend.
Review financial and billing evidence
Attachment A contains 16 standards. Among its financial requirements are initial access to at least $500,000 in credit or reserves and ongoing resources sufficient for four weeks of payroll and bills. Billing reimbursement follows actual provider payment, not anticipated payments. Claims and supporting records generally must remain accessible for at least five years from final payment in the applicable state fiscal year, longer when an audit or appeal remains unresolved. [3]
The standards also address participant spending plans, payment accuracy, EVV under applicable requirements, and documentation of corrected time entries. Complete and accurate invoices, receipts and valid payment requests support the 30-calendar-day payment requirement. These are FMS obligations, not a new instruction to every service provider to become an FMS vendor. [3]
For an internal review, select one recently completed service and trace the evidence from authorization to invoice and payment. Can your team identify which spending plan applied, who approved the record and where the supporting documents are stored? Record gaps as assigned tasks rather than treating a policy document alone as proof that the workflow works.
What a correction notice means for participants
Attachment C provides the regional center notice for an FMS vendor placed in a correction period. It explains that the vendor must continue financial management services and payments for approved spending-plan services through the participant's last service day or transfer. Participants may choose to change FMS vendors without waiting for the correction period to end. [4]
Service agencies should preserve invoices, approvals and correspondence when a participant receives such a notice. Ask the participant and service coordinator which contacts should receive payment inquiries. A correction notice should not be treated as evidence that delivered services no longer need to be paid.
Plan a transition around the participant
Attachment D addresses a scheduled end to vendorization. The participant chooses an available replacement FMS vendor with regional center assistance. The notice also recognizes that vendorization may not end if the vendor corrects the issue or files an appeal before the stated termination date. [5]
When a transition is confirmed, use a handover checklist for outstanding invoices and contact details. Record what the outgoing FMS has acknowledged and what the incoming FMS still needs. Avoid sending sensitive participant information to an unverified recipient. Keep the participant and authorized representatives involved in decisions that affect their service arrangements.
A practical action list for this week
- Confirm whether your organization is an SDP FMS vendor, a service provider paid through FMS, or both. Give each role a named internal owner.
- FMS vendors should use the official review tool as the submission checklist and link each answer to current evidence. Resolve uncertain requirements with SDRC.
- Service providers should identify the FMS contact for each relevant participant and reconcile unpaid invoices against acknowledged submissions.
- Keep policies, evidence, submission receipts and responses in a controlled location. Review access before sharing financial or participant records.
Where CareAutomate can help
If your agency needs a clearer way to organize consumer documentation, authorizations, service notes and signatures, explore CareAutomate's Regional Center workflows or book a demonstration using your own operational requirements. Confirm the fit for your exact services before selecting software.
CareAutomate is not the DDS Provider Directory or an FMS vendor. This article does not claim that it performs FMS payroll, tax filing, SDRC submissions or every requirement in the new standards. Software does not replace vendor approval or professional compliance review.
This guide summarizes official materials reviewed October 19, 2026. Use the linked DDS directive, attachments and your regional center's written instructions for decisions about your organization. It is general operational information, not legal advice.
Official sources
- DDS directive
- DDS plain-language summary
- Attachment A - FMS Vendor Standards
- Attachment C - correction period notice
- Attachment D - termination notice
- DDS directive landing page
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