Assuming you are using RACF, I would have to ask what you are trying to do. The MODEL is doesn't do what you might expect. It doesn't create a new Userid based on the model.
The Model parameter is a discrete Dataset profile used as model for all Dataset profiles created with the new Userid as a High Level Qualifier.
for example you add a new user called User1 and specify the model parameter : -
ADDUSER User1 MODEL(modds)
You add a Discrete Dataset profile to use as a model and define the access list you require: -
ADDSD 'User1.modds' MODEL UACC(NONE)
PERMIT 'User1.modds' ID(User2 Group1) ACCESS(READ)
Activate Userid modelling in the SETROPTS: -
Now, when User1 adds a new Dataset profile perfixed User1
The new profile will be built using 'User1.modds' as the model, so the UACC would be NONE and User2 and Group1 would appear in the access list with READ.
This can also be done at Group level.
I hope this helps.