AB 2150: Subsidized child care and development services: eligibility periods.
- Session Year: 2015-2016
- House: Assembly
- Latest Version Date: 2016-06-01
Existing law, the Child Care and Development Services Act, requires the Superintendent of Public Instruction to administer child care and development programs that offer a full range of services for eligible children from infancy to 13 years of age. Existing law requires the Superintendent to adopt rules and regulations on eligibility, enrollment, and priority of services needed to implement the act. The act, and regulations adopted pursuant to the act, set forth eligibility requirements for families to receive federal and state subsidized child development services and impose various time limits for receipt of services and recertification for continued services.
This bill would require that a family, upon establishing initial eligibility or ongoing eligibility for services under the act, be considered to meet all eligibility requirements for those services for not less than 12 months, receive those services for not less than 12 months before having their eligibility redetermined, and not be required to report changes to income or other changes for at least 12 months, except as provided. The bill would revise the definition of income eligible and provide that the definition applies for purposes of establishing initial income eligibility for services under the act, and would add a definition of ongoing income eligible for purposes of establishing ongoing income eligibility for services under the act. The
The bill would, except as provided, prohibit a payment made by a child development program for a child, during the period between a familys most recent eligibility determination or redetermination and its next eligibility redetermination, from being considered an error or an improper payment due to a change in the familys circumstances during that same period. The bill would, notwithstanding specified law, authorize the State Department of Education to implement this provision through management bulletins or similar letters of instruction until regulations are filed with the Secretary of State to implement the provision. The bill would require the department to initiate a rulemaking action to implement the provision on or before December 31, 2017. The bill would require the department, before initiating this rulemaking action, to convene a workgroup of parents, advocates, department staff, child development program representatives, and other stakeholders to develop recommendations regarding implementing the provision.
The bill would repeal certain provisions that impose time limits for services under the act and a provision that authorizes the Superintendent to grant an extension of services, as specified. The bill would make other conforming changes.
Existing law, the Child Care and Development Services Act, requires the Superintendent of Public Instruction to administer child care and development programs that offer a full range of services for eligible children from infancy to 13 years of age. Existing law requires the Superintendent to adopt rules and regulations on eligibility, enrollment, and priority of services needed to implement the act. The act, and regulations adopted pursuant to the act, set forth eligibility requirements for families to receive federal and state subsidized child development services and impose various time limits for receipt of services and recertification for continued services.
This bill would require that a family, upon establishing initial eligibility or ongoing eligibility for services under the act, be considered to meet all eligibility requirements for those services for not less than 12 months, receive those services for not less than 12 months before having their eligibility redetermined, and not be required to report changes to income or other changes for at least 12 months, except as provided. The bill would revise the definition of income eligible and provide that the definition applies for purposes of establishing initial income eligibility for services under the act, and would add a definition of ongoing income eligible for purposes of establishing ongoing income eligibility for services under the act. The bill would repeal certain provisions that impose time limits for services under the act and a provision that authorizes the Superintendent to grant an extension of services, as specified. The bill would make other conforming changes.
Existing law, the Child Care and Development Services Act, requires the Superintendent of Public Instruction to administer child care and development programs that offer a full range of services for eligible children from infancy to 13 years of age. Existing law requires the Superintendent to adopt rules and regulations on eligibility, enrollment, and priority of services needed to implement the act. The act, and regulations adopted pursuant to the act, set forth eligibility requirements for families to receive federal and state subsidized child development services and impose various time limits for receipt of services and recertification for continued services.
This bill would require that a family, upon establishing initial eligibility or ongoing eligibility for services under the act, be considered to meet all eligibility requirements for those services for not less than 12 months, receive those services for not less than 12 months before having their eligibility redetermined, and not be required to report changes to income or other changes for at least 12 months, except as provided. The bill would revise the definition of income eligible and provide that the definition applies for purposes of establishing initial income eligibility for services under the act, and would add a definition of ongoing income eligible for purposes of establishing ongoing income eligibility for services under the act. The bill would repeal certain provisions that impose time limits for services under the act and a provision that authorizes the Superintendent to grant an extension of services, as specified. The bill would make other conforming changes.
(a)The Superintendent shall adopt rules and regulations on eligibility, enrollment, and priority of services needed to implement this chapter. In order to be eligible for federal and state subsidized child development services, families shall meet at least one requirement in each of the following areas:
(1)A family is (A) a current aid recipient, (B) income eligible, (C) homeless, or (D) one whose children are recipients of protective services, or whose children have been identified as being abused, neglected, or exploited, or at risk of being abused, neglected, or exploited.
(2)A family needs the child care services (A) because the child is identified by a legal, medical, or social services agency, a local educational agency liaison for homeless children and youths designated pursuant to Section 11432(g)(1)(J)(ii) of Title 42 of the United States Code, a Head Start program, or an emergency or transitional shelter as (i) a recipient of protective services, (ii) being neglected, abused, or exploited, or at risk of neglect, abuse, or exploitation, or (iii) being homeless or (B) because the parents are (i) engaged in vocational training leading directly to a recognized trade, paraprofession, or profession, (ii) employed or seeking employment, (iii) seeking permanent housing for family stability, or (iv) incapacitated.
(b)Except as provided in Article 15.5 (commencing with Section 8350), priority for federal and state subsidized child development services is as follows:
(1)First priority shall be given to neglected or abused children who are recipients of child protective services, or children who are at risk of being neglected or abused, upon written referral from a legal, medical, or social services agency. If an agency is unable to enroll a child in the first priority category, the agency shall refer the family to local resource and referral services to locate services for the child.
(2)Second priority shall be given equally to eligible families, regardless of the number of parents in the home, who are income eligible. Within this priority, families with the lowest gross monthly income in relation to family size, as determined by a schedule adopted by the Superintendent, shall be admitted first. If two or more families are in the same priority in relation to income, the family that has a child with exceptional needs shall be admitted first. If there is no family of the same priority with a child with exceptional needs, the same priority family that has been on the waiting list for the longest time shall be admitted first. For purposes of determining order of admission, the grants of public assistance recipients shall be counted as income.
(3)The Superintendent shall set criteria for, and may grant specific waivers of, the priorities established in this subdivision for agencies that wish to serve specific populations, including children with exceptional needs or children of prisoners. These new waivers shall not include proposals to avoid appropriate fee schedules or admit ineligible families, but may include proposals to accept members of special populations in other than strict income order, as long as appropriate fees are paid.
(c)Notwithstanding any other law, in order to promote continuity of services, a family enrolled in a state or federally funded child care and development program whose services would otherwise be terminated because the family no longer meets the program income, eligibility, or need criteria may continue to receive child development services in another state or federally funded child care and development program if the contractor is able to transfer the familys enrollment to another program for which the family is eligible before the date of termination of services or to exchange the familys existing enrollment with the enrollment of a family in another program, provided that both families satisfy the eligibility requirements for the program in which they are being enrolled. The transfer of enrollment may be to another program within the same administrative agency or to another agency that administers state or federally funded child care and development programs.
(d)A physical examination and evaluation, including age-appropriate immunization, shall be required before, or within six weeks of, enrollment. A standard, rule, or regulation shall not require medical examination or immunization for admission to a child care and development program of a child whose parent or guardian files a letter with the governing board of the child care and development program stating that the medical examination or immunization is contrary to his or her religious beliefs, or provide for the exclusion of a child from the program because of a parent or guardian having filed the letter. However, if there is good cause to believe that a child is suffering from a recognized contagious or infectious disease, the child shall be temporarily excluded from the program until the governing board of the child care and development program is satisfied that the child is not suffering from that contagious or infectious disease.
(e)Regulations formulated and promulgated pursuant to this section shall include the recommendations of the State Department of Health Care Services relative to health care screening and the provision of health care services. The Superintendent shall seek the advice and assistance of these health authorities in situations where service under this chapter includes or requires care of children who are ill or children with exceptional needs.
(f)The Superintendent shall establish guidelines for the collection of employer-sponsored child care benefit payments from a parent whose child receives subsidized child care and development services. These guidelines shall provide for the collection of the full amount of the benefit payment, but not to exceed the actual cost of child care and development services provided, notwithstanding the applicable fee based on the fee schedule.
(g)The Superintendent shall establish guidelines according to which the director or a duly authorized representative of the child care and development program will certify children as eligible for state reimbursement pursuant to this section.
(h)(1)Except as provided in paragraphs (2) to (4), inclusive, upon establishing initial eligibility or ongoing eligibility for services under this chapter, a family shall be considered to meet all eligibility requirements for those services for not less than 12 months, shall receive those services for not less than 12 months before having their eligibility redetermined, and shall not be required to report changes to income or other changes for at least 12 months.
(2)A family shall report increases in income that exceed the threshold for ongoing income eligibility as described in subdivision (b) of Section 8263.1, and the familys ongoing eligibility for services shall at that time be redetermined.
(3)A family that establishes initial eligibility or ongoing eligibility on the basis of seeking employment shall receive services under this chapter as follows:
(A)If seeking employment is the basis for initial eligibility, the family shall receive services under this chapter for not less than six months.
(B)If seeking employment is the only basis for ongoing eligibility at the time of redetermination, the family shall receive services under this chapter for six additional month unless the family becomes eligible on another basis pursuant to paragraph (2) of subdivision (a).
(4)A family may at any time voluntarily report income or other changes. This information shall be used, as applicable, to reduce a familys fees, increase the familys subsidy, or extend the period of the familys eligibility before redetermination.
(i)(1) Because a family that meets eligibility requirements at its most recent eligibility determination or redetermination is considered eligible until the next redetermination, as provided in subdivision (h), a payment made by a child development program for a child during this period shall not be considered an error or an improper payment due to a change in the familys circumstances during that same period.
(2)Notwithstanding paragraph (1), the state or its designated agent may seek to recover payments that are the result of fraud.
(j)(1) Notwithstanding the rulemaking provisions of the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code) and Section 33308.5 of this code, until regulations are filed with the Secretary of State to implement subdivision (h), the department may implement this section through management bulletins or similar letters of instruction.
(2)The department shall initiate a rulemaking action to implement subdivision (h) on or before December 31, 2017. Before initiating a rulemaking action pursuant to this paragraph, the department shall convene a workgroup of parents, advocates, department staff, child development program representatives, and other stakeholders to develop recommendations regarding implementing subdivision (h).
(i)
(k)Public funds shall not be paid directly or indirectly to an agency that does not pay at least the minimum wage to each of its employees.
SEC. 2.Section 8263.1 of the Education Code is amended to read:8263.1.(a)For purposes of establishing initial income eligibility for services under this chapter, income eligible means that a familys adjusted monthly income is at or below 70 percent of the state median income, based on the most recent data on state median income published by the United States Census Bureau, for a family of the same size.
(b)For purposes of establishing ongoing income eligibility under this chapter, ongoing income eligible means that a familys adjusted monthly income is at or below 85 percent of the state median income, based on the most recent data on state median income published by the United States Census Bureau, for a family of the same size.
(c)The income of a recipient of federal supplemental security income benefits pursuant to Title XVI of the federal Social Security Act (42 U.S.C. Sec. 1381 et seq.) and state supplemental program benefits pursuant to Title XVI of the federal Social Security Act and Chapter 3 (commencing with Section 12000) of Part 3 of Division 9 of the Welfare and Institutions Code shall not be included as income for purposes of determining eligibility for child care under this chapter.
SEC. 3.Section 8273.1 of the Education Code is amended to read:8273.1.(a)A family that receives services pursuant to paragraph (1) of subdivision (b) of Section 8263 may be exempt from family fees for up to 12 months.
(b)Notwithstanding any other law, a family receiving CalWORKs cash aid shall not be charged a family fee.
(c)Notwithstanding any other law, commencing with the 201415 fiscal year, family fees shall not be assessed for the part-day California preschool program to income eligible families whose children are enrolled in that program pursuant to Article 7 (commencing with Section 8235).
SEC. 4.Section 11323.2 of the Welfare and Institutions Code is amended to read:11323.2.(a)Necessary supportive services shall be available to every participant in order to participate in the program activity to which he or she is assigned or to accept employment or the participant shall have good cause for not participating under subdivision (f) of Section 11320.3. As provided in the welfare-to-work plan entered into between the county and participant pursuant to this article, supportive services shall include all of the following:
(1)Child care.
(A)Paid child care shall be available to every participant with a dependent child in the assistance unit who needs paid child care if the child is 10 years of age or under, or requires child care or supervision due to a physical, mental, or developmental disability or other similar condition as verified by the county welfare department, or who is under court supervision.
(B)To the extent funds are available, paid child care shall be available to a participant with a dependent child in the assistance unit who needs paid child care if the child is 11 or 12 years of age.
(C)Necessary child care services shall be available to every former recipient for up to two years, pursuant to Article 15.5 (commencing with Section 8350) of Chapter 2 of Part 6 of Division 1 of Title 1 of the Education Code.
(D)A child in foster care receiving benefits under Title IV-E of the federal Social Security Act (42 U.S.C. Sec. 670 et seq.) or a child who would become a dependent child except for the receipt of federal Supplemental Security Income benefits pursuant to Title XVI of the federal Social Security Act (42 U.S.C. Sec. 1381 et seq.) shall be deemed to be a dependent child for the purposes of this paragraph.
(E)The provision of care and payment rates under this paragraph shall be governed by Article 15.5 (commencing with Section 8350) of Chapter 2 of Part 6 of Division 1 of Title 1 of the Education Code. Parent fees shall be governed by Section 8263 of the Education Code.
(2)Transportation costs, which shall be governed by regional market rates as determined in accordance with regulations established by the department.
(3)Ancillary expenses, which shall include the cost of books, tools, clothing specifically required for the job, fees, and other necessary costs.
(4)Personal counseling. A participant who has personal or family problems that would affect the outcome of the welfare-to-work plan entered into pursuant to this article shall, to the extent available, receive necessary counseling or therapy to help him or her and his or her family adjust to his or her job or training assignment.
(b)If provided in a county plan, the county may continue to provide case management and supportive services under this section to former participants who become employed. The county may provide these services for up to the first 12 months of employment to the extent they are not available from other sources and are needed for the individual to retain the employment.
(a)The Superintendent shall adopt rules and regulations on eligibility, enrollment, and priority of services needed to implement this chapter. In order to be eligible for federal and state subsidized child development services, families shall meet at least one requirement in each of the following areas:
(1)A family is (A) a current aid recipient, (B) income eligible, (C) homeless, or (D) one whose children are recipients of protective services, or whose children have been identified as being abused, neglected, or exploited, or at risk of being abused, neglected, or exploited.
(2)A family needs the child care services (A) because the child is identified by a legal, medical, or social services agency, a local educational agency liaison for homeless children and youths designated pursuant to Section 11432(g)(1)(J)(ii) of Title 42 of the United States Code, a Head Start program, or an emergency or transitional shelter as (i) a recipient of protective services, (ii) being neglected, abused, or exploited, or at risk of neglect, abuse, or exploitation, or (iii) being homeless or (B) because the parents are (i) engaged in vocational training leading directly to a recognized trade, paraprofession, or profession, (ii) employed or seeking employment, (iii) seeking permanent housing for family stability, or (iv) incapacitated.
(b)Except as provided in Article 15.5 (commencing with Section 8350), priority for federal and state subsidized child development services is as follows:
(1)First priority shall be given to neglected or abused children who are recipients of child protective services, or children who are at risk of being neglected or abused, upon written referral from a legal, medical, or social services agency. If an agency is unable to enroll a child in the first priority category, the agency shall refer the family to local resource and referral services to locate services for the child.
(2)Second priority shall be given equally to eligible families, regardless of the number of parents in the home, who are income eligible. Within this priority, families with the lowest gross monthly income in relation to family size, as determined by a schedule adopted by the Superintendent, shall be admitted first. If two or more families are in the same priority in relation to income, the family that has a child with exceptional needs shall be admitted first. If there is no family of the same priority with a child with exceptional needs, the same priority family that has been on the waiting list for the longest time shall be admitted first. For purposes of determining order of admission, the grants of public assistance recipients shall be counted as income.
(3)The Superintendent shall set criteria for, and may grant specific waivers of, the priorities established in this subdivision for agencies that wish to serve specific populations, including children with exceptional needs or children of prisoners. These new waivers shall not include proposals to avoid appropriate fee schedules or admit ineligible families, but may include proposals to accept members of special populations in other than strict income order, as long as appropriate fees are paid.
(c)Notwithstanding any other law, in order to promote continuity of services, a family enrolled in a state or federally funded child care and development program whose services would otherwise be terminated because the family no longer meets the program income, eligibility, or need criteria may continue to receive child development services in another state or federally funded child care and development program if the contractor is able to transfer the familys enrollment to another program for which the family is eligible before the date of termination of services or to exchange the familys existing enrollment with the enrollment of a family in another program, provided that both families satisfy the eligibility requirements for the program in which they are being enrolled. The transfer of enrollment may be to another program within the same administrative agency or to another agency that administers state or federally funded child care and development programs.
(d)A physical examination and evaluation, including age-appropriate immunization, shall be required before, or within six weeks of, enrollment. A standard, rule, or regulation shall not require medical examination or immunization for admission to a child care and development program of a child whose parent or guardian files a letter with the governing board of the child care and development program stating that the medical examination or immunization is contrary to his or her religious beliefs, or provide for the exclusion of a child from the program because of a parent or guardian having filed the letter. However, if there is good cause to believe that a child is suffering from a recognized contagious or infectious disease, the child shall be temporarily excluded from the program until the governing board of the child care and development program is satisfied that the child is not suffering from that contagious or infectious disease.
(e)Regulations formulated and promulgated pursuant to this section shall include the recommendations of the State Department of Health Care Services relative to health care screening and the provision of health care services. The Superintendent shall seek the advice and assistance of these health authorities in situations where service under this chapter includes or requires care of children who are ill or children with exceptional needs.
(f)The Superintendent shall establish guidelines for the collection of employer-sponsored child care benefit payments from a parent whose child receives subsidized child care and development services. These guidelines shall provide for the collection of the full amount of the benefit payment, but not to exceed the actual cost of child care and development services provided, notwithstanding the applicable fee based on the fee schedule.
(g)The Superintendent shall establish guidelines according to which the director or a duly authorized representative of the child care and development program will certify children as eligible for state reimbursement pursuant to this section.
(h)(1)Except as provided in paragraphs (1) to (3), (2) to (4), inclusive, upon establishing initial eligibility or ongoing eligibility for services under this chapter, a family shall be considered to meet all eligibility requirements for those services for not less than 12 months, shall receive those services for not less than 12 months before having their eligibility redetermined, and shall not be required to report changes to income or other changes for at least 12 months.
(1)
(2)A family shall report increases in income that exceed the threshold for ongoing income eligibility as described in subdivision (b) of Section 8263.1, and the familys ongoing eligibility for services shall at that time be redetermined.
(2)
(3)A family that establishes initial eligibility or ongoing eligibility on the basis of seeking employment shall receive services under this chapter as follows:
(A)If seeking employment is the basis for initial eligibility, the family shall receive services under this chapter for not less than six months.
(B)If seeking employment is the only basis for ongoing eligibility at the time of redetermination, the family shall receive services under this chapter for six additional month unless the family becomes eligible on another basis pursuant to paragraph (2) of subdivision (a).
(3)
(4)A family may at any time voluntarily report income or other changes. This information shall be used, as applicable, to reduce a familys fees, increase the familys subsidy, or extend the period of the familys eligibility before redetermination.
(i)Public funds shall not be paid directly or indirectly to an agency that does not pay at least the minimum wage to each of its employees.
SEC. 2.Section 8263.1 of the Education Code is amended to read:8263.1.(a)For purposes of establishing initial income eligibility for services under this chapter, income eligible means that a familys adjusted monthly income is at or below 70 percent of the state median income, based on the most recent data on state median income published by the United States Census Bureau, for a family of the same size.
(b)For purposes of establishing ongoing income eligibility under this chapter, ongoing income eligible means that a familys adjusted monthly income is at or below 85 percent of the state median income, based on the most recent data on state median income published by the United States Census Bureau, for a family of the same size.
(c)The income of a recipient of federal supplemental security income benefits pursuant to Title XVI of the federal Social Security Act (42 U.S.C. Sec. 1381 et seq.) and state supplemental program benefits pursuant to Title XVI of the federal Social Security Act and Chapter 3 (commencing with Section 12000) of Part 3 of Division 9 of the Welfare and Institutions Code shall not be included as income for purposes of determining eligibility for child care under this chapter.
SEC. 3.Section 8273.1 of the Education Code is amended to read:8273.1.(a)A family that receives services pursuant to paragraph (1) of subdivision (b) of Section 8263 may be exempt from family fees for up to 12 months.
(b)Notwithstanding any other law, a family receiving CalWORKs cash aid shall not be charged a family fee.
(c)Notwithstanding any other law, commencing with the 201415 fiscal year, family fees shall not be assessed for the part-day California preschool program to income eligible families whose children are enrolled in that program pursuant to Article 7 (commencing with Section 8235).
SEC. 4.Section 11323.2 of the Welfare and Institutions Code is amended to read:11323.2.(a)Necessary supportive services shall be available to every participant in order to participate in the program activity to which he or she is assigned or to accept employment or the participant shall have good cause for not participating under subdivision (f) of Section 11320.3. As provided in the welfare-to-work plan entered into between the county and participant pursuant to this article, supportive services shall include all of the following:
(1)Child care.
(A)Paid child care shall be available to every participant with a dependent child in the assistance unit who needs paid child care if the child is 10 years of age or under, or requires child care or supervision due to a physical, mental, or developmental disability or other similar condition as verified by the county welfare department, or who is under court supervision.
(B)To the extent funds are available, paid child care shall be available to a participant with a dependent child in the assistance unit who needs paid child care if the child is 11 or 12 years of age.
(C)Necessary child care services shall be available to every former recipient for up to two years, pursuant to Article 15.5 (commencing with Section 8350) of Chapter 2 of Part 6 of Division 1 of Title 1 of the Education Code.
(D)A child in foster care receiving benefits under Title IV-E of the federal Social Security Act (42 U.S.C. Sec. 670 et seq.) or a child who would become a dependent child except for the receipt of federal Supplemental Security Income benefits pursuant to Title XVI of the federal Social Security Act (42 U.S.C. Sec. 1381 et seq.) shall be deemed to be a dependent child for the purposes of this paragraph.
(E)The provision of care and payment rates under this paragraph shall be governed by Article 15.5 (commencing with Section 8350) of Chapter 2 of Part 6 of Division 1 of Title 1 of the Education Code. Parent fees shall be governed by Section 8263 of the Education Code.
(2)Transportation costs, which shall be governed by regional market rates as determined in accordance with regulations established by the department.
(3)Ancillary expenses, which shall include the cost of books, tools, clothing specifically required for the job, fees, and other necessary costs.
(4)Personal counseling. A participant who has personal or family problems that would affect the outcome of the welfare-to-work plan entered into pursuant to this article shall, to the extent available, receive necessary counseling or therapy to help him or her and his or her family adjust to his or her job or training assignment.
(b)If provided in a county plan, the county may continue to provide case management and supportive services under this section to former participants who become employed. The county may provide these services for up to the first 12 months of employment to the extent they are not available from other sources and are needed for the individual to retain the employment.
(a)The Superintendent shall adopt rules and regulations on eligibility, enrollment, and priority of services needed to implement this chapter. In order to be eligible for federal and state subsidized child development services, families shall meet at least one requirement in each of the following areas:
(1)A family is (A) a current aid recipient, (B) income eligible, (C) homeless, or (D) one whose children are recipients of protective services, or whose children have been identified as being abused, neglected, or exploited, or at risk of being abused, neglected, or exploited.
(2)A family needs the child care services (A) because the child is identified by a legal, medical, or social services agency, a local educational agency liaison for homeless children and youths designated pursuant to Section 11432(g)(1)(J)(ii) of Title 42 of the United States Code, a Head Start program, or an emergency or transitional shelter as (i) a recipient of protective services, (ii) being neglected, abused, or exploited, or at risk of neglect, abuse, or exploitation, or (iii) being homeless or (B) because the parents are (i) engaged in vocational training leading directly to a recognized trade, paraprofession, or profession, (ii) employed or seeking employment, (iii) seeking permanent housing for family stability, or (iv) incapacitated.
(b)Except as provided in Article 15.5 (commencing with Section 8350), priority for federal and state subsidized child development services is as follows:
(1)(A)First priority shall be given to neglected or abused children who are recipients of child protective services, or children who are at risk of being neglected or abused, upon written referral from a legal, medical, or social services agency. If an agency is unable to enroll a child in the first priority category, the agency shall refer the family to local resource and referral services to locate services for the child.
(B)A family who is receiving child care on the basis of being a child at risk of abuse, neglect, or exploitation, as defined in subdivision (k) of Section 8208, is eligible to receive services pursuant to subparagraph (A) for up to three months, unless the family becomes eligible pursuant to subparagraph (C).
(C)A family may receive child care services for up to 12 months on the basis of a certification by the county child welfare agency that child care services continue to be necessary or, if the child is receiving child protective services during that period of time, and the family requires child care and remains otherwise eligible. This time limit does not apply if the familys child care referral is recertified by the county child welfare agency.
(2)Second priority shall be given equally to eligible families, regardless of the number of parents in the home, who are income eligible. Within this priority, families with the lowest gross monthly income in relation to family size, as determined by a schedule adopted by the Superintendent, shall be admitted first. If two or more families are in the same priority in relation to income, the family that has a child with exceptional needs shall be admitted first. If there is no family of the same priority with a child with exceptional needs, the same priority family that has been on the waiting list for the longest time shall be admitted first. For purposes of determining order of admission, the grants of public assistance recipients shall be counted as income.
(3)The Superintendent shall set criteria for, and may grant specific waivers of, the priorities established in this subdivision for agencies that wish to serve specific populations, including children with exceptional needs or children of prisoners. These new waivers shall not include proposals to avoid appropriate fee schedules or admit ineligible families, but may include proposals to accept members of special populations in other than strict income order, as long as appropriate fees are paid.
(c)Notwithstanding any other law, in order to promote continuity of services, a family enrolled in a state or federally funded child care and development program whose services would otherwise be terminated because the family no longer meets the program income, eligibility, or need criteria may continue to receive child development services in another state or federally funded child care and development program if the contractor is able to transfer the familys enrollment to another program for which the family is eligible before the date of termination of services or to exchange the familys existing enrollment with the enrollment of a family in another program, provided that both families satisfy the eligibility requirements for the program in which they are being enrolled. The transfer of enrollment may be to another program within the same administrative agency or to another agency that administers state or federally funded child care and development programs.
(d)In order to promote continuity of services, the Superintendent may extend the 60-working-day period specified in subdivision (a) of Section 18086.5 of Title 5 of the California Code of Regulations for an additional 60 working days if he or she determines that opportunities for employment have diminished to the degree that one or both parents cannot reasonably be expected to find employment within 60 working days and granting the extension is in the public interest. The scope of extensions granted pursuant to this subdivision shall be limited to the necessary geographic areas and affected persons, which shall be described in the Superintendents order granting the extension. It is the intent of the Legislature that extensions granted pursuant to this subdivision improve services in areas with high unemployment rates and areas with disproportionately high numbers of seasonal agricultural jobs.
(e)
(d)A physical examination and evaluation, including age-appropriate immunization, shall be required before, or within six weeks of, enrollment. A standard, rule, or regulation shall not require medical examination or immunization for admission to a child care and development program of a child whose parent or guardian files a letter with the governing board of the child care and development program stating that the medical examination or immunization is contrary to his or her religious beliefs, or provide for the exclusion of a child from the program because of a parent or guardian having filed the letter. However, if there is good cause to believe that a child is suffering from a recognized contagious or infectious disease, the child shall be temporarily excluded from the program until the governing board of the child care and development program is satisfied that the child is not suffering from that contagious or infectious disease.
(f)
(e)Regulations formulated and promulgated pursuant to this section shall include the recommendations of the State Department of Health Care Services relative to health care screening and the provision of health care services. The Superintendent shall seek the advice and assistance of these health authorities in situations where service under this chapter includes or requires care of children who are ill or children with exceptional needs.
(g)
(f)The Superintendent shall establish guidelines for the collection of employer-sponsored child care benefit payments from a parent whose child receives subsidized child care and development services. These guidelines shall provide for the collection of the full amount of the benefit payment, but not to exceed the actual cost of child care and development services provided, notwithstanding the applicable fee based on the fee schedule.
(h)
(g)The Superintendent shall establish guidelines according to which the director or a duly authorized representative of the child care and development program will certify children as eligible for state reimbursement pursuant to this section.
(h)Except as provided in paragraphs (1) to (3), inclusive, upon establishing initial eligibility or ongoing eligibility for services under this chapter, a family shall be considered to meet all eligibility requirements for those services for not less than 12 months, shall receive those services for not less than 12 months before having their eligibility redetermined, and shall not be required to report changes to income or other changes for at least 12 months.
(1)A family shall report increases in income that exceed the threshold for ongoing income eligibility as described in subdivision (b) of Section 8263.1, and the familys ongoing eligibility for services shall at that time be redetermined.
(2)A family that establishes initial eligibility or ongoing eligibility on the basis of seeking employment shall receive services under this chapter as follows:
(A)If seeking employment is the basis for initial eligibility, the family shall receive services under this chapter for not less than six months.
(B)If seeking employment is the only basis for ongoing eligibility at the time of redetermination, the family shall receive services under this chapter for six additional month unless the family becomes eligible on another basis pursuant to paragraph (2) of subdivision (a).
(3)A family may at any time voluntarily report income or other changes. This information shall be used, as applicable, to reduce a familys fees, increase the familys subsidy, or extend the period of the familys eligibility before redetermination.
(i)Public funds shall not be paid directly or indirectly to an agency that does not pay at least the minimum wage to each of its employees.SEC. 2.Section 8263.1 of the Education Code is amended to read:8263.1.(a)For purposes of establishing initial income eligibility for services under this chapter, income eligible means that a familys adjusted monthly income is at or below 70 percent of the state median income, adjusted for family size, and adjusted annually. based on the most recent data on state median income published by the United States Census Bureau, for a family of the same size.
(b)Notwithstanding any other law, for the 201112 fiscal year, the income eligibility limits that were in effect for the 200708 fiscal year shall be reduced to 70 percent of the state median income that was in use for the 200708 fiscal year, adjusted for family size, effective July 1, 2011.
(c)Notwithstanding any other law, for the 201213, 201314, 201415, and 201516 fiscal years, the income eligibility limits shall be 70 percent of the state median income that was in use for the 200708 fiscal year, adjusted for family size.
(d)
(b)For purposes of establishing ongoing income eligibility under this chapter, ongoing income eligible means that a familys adjusted monthly income is at or below 85 percent of the state median income, based on the most recent data on state median income published by the United States Census Bureau, for a family of the same size.
(c)The income of a recipient of federal supplemental security income benefits pursuant to Title XVI of the federal Social Security Act (42 U.S.C. Sec. 1381 et seq.) and state supplemental program benefits pursuant to Title XVI of the federal Social Security Act and Chapter 3 (commencing with Section 12000) of Part 3 of Division 9 of the Welfare and Institutions Code shall not be included as income for purposes of determining eligibility for child care under this chapter.
SEC. 3.Section 8273.1 of the Education Code is amended to read:8273.1.(a)Families receiving services pursuant to subparagraph (B) of paragraph (1) of subdivision (b) of Section 8263 may be exempt from family fees for up to three months.
(b)Families receiving services pursuant to subparagraph (C) of paragraph (1) of subdivision (b) of Section 8263 may be exempt from family fees for up to 12 months.
(c)The cumulative period of time of exemption from family fees for families receiving services pursuant to paragraph (1) of subdivision (b) of Section 8263 shall not exceed 12 months.
8273.1.(a)A family that receives services pursuant to paragraph (1) of subdivision (b) of Section 8263 may be exempt from family fees for up to 12 months.
(d)
(b)Notwithstanding any other law, a family receiving CalWORKs cash aid shall not be charged a family fee.
(e)
(c)Notwithstanding any other law, commencing with the 201415 fiscal year, family fees shall not be assessed for the part-day California preschool program to income eligible families whose children are enrolled in that program pursuant to Article 7 (commencing with Section 8235).
SEC. 4.Section 11323.2 of the Welfare and Institutions Code is amended to read:11323.2.(a)Necessary supportive services shall be available to every participant in order to participate in the program activity to which he or she is assigned or to accept employment or the participant shall have good cause for not participating under subdivision (f) of Section 11320.3. As provided in the welfare-to-work plan entered into between the county and participant pursuant to this article, supportive services shall include all of the following:
(1)Child care.
(A)Paid child care shall be available to every participant with a dependent child in the assistance unit who needs paid child care if the child is 10 years of age or under, or requires child care or supervision due to a physical, mental, or developmental disability or other similar condition as verified by the county welfare department, or who is under court supervision.
(B)To the extent funds are available available, paid child care shall be available to a participant with a dependent child in the assistance unit who needs paid child care if the child is 11 or 12 years of age.
(C)Necessary child care services shall be available to every former recipient for up to two years, pursuant to Article 15.5 (commencing with Section 8350) of Chapter 2 of Part 6 of Division 1 of Title 1 of the Education Code.
(D)A child in foster care receiving benefits under Title IV-E of the federal Social Security Act (42 U.S.C. Sec. 670 et seq.) or a child who would become a dependent child except for the receipt of federal Supplemental Security Income benefits pursuant to Title XVI of the federal Social Security Act (42 U.S.C. Sec. 1381 et seq.) shall be deemed to be a dependent child for the purposes of this paragraph.
(E)The provision of care and payment rates under this paragraph shall be governed by Article 15.5 (commencing with Section 8350) of Chapter 2 of Part 6 of Division 1 of Title 1 of the Education Code. Parent fees shall be governed by subdivisions (g) and (h) of Section 8263 of the Education Code.
(2)Transportation costs, which shall be governed by regional market rates as determined in accordance with regulations established by the department.
(3)Ancillary expenses, which shall include the cost of books, tools, clothing specifically required for the job, fees, and other necessary costs.
(4)Personal counseling. A participant who has personal or family problems that would affect the outcome of the welfare-to-work plan entered into pursuant to this article shall, to the extent available, receive necessary counseling or therapy to help him or her and his or her family adjust to his or her job or training assignment.
(b)If provided in a county plan, the county may continue to provide case management and supportive services under this section to former participants who become employed. The county may provide these services for up to the first 12 months of employment to the extent they are not available from other sources and are needed for the individual to retain the employment.
|
Date
|
Status
|
|---|---|
| Jun 2, 2016 | Assembly Rule 69 suspended. |
| Aug 11, 2016 | In committee: Held under submission. |
| Aug 8, 2016 | Referred to APPR. suspense file. |
| Aug 1, 2016 | In committee: Set, first hearing. Hearing canceled at the request of author. |
| Jun 22, 2016 | From committee: Do pass and re-refer to Com. on APPR. with recommendation: To Consent Calendar. (Ayes 9. Noes 0.) (June 22). Re-referred to Com. on APPR. |
| Jun 9, 2016 | Referred to Com. on ED. |
| Jun 6, 2016 | In Senate. Read first time. To Com. on RLS. for assignment. |
| Jun 2, 2016 | Read third time. Passed. Ordered to the Senate. (Ayes 80. Noes 0.) |
| Jun 2, 2016 | Read third time. Passed. Ordered to the Senate. (Ayes 80. Noes 0. Page 5179.) |
| Jun 2, 2016 | Read third time. Passed. Ordered to the Senate. |
| Jun 2, 2016 | Assembly Rule 69 suspended. (Page 5166.) |
| Feb 17, 2016 | Read first time. To print. |
| Jun 1, 2016 | Read third time and amended. Ordered to third reading. (Page 5075.) |
| Jun 1, 2016 | Read third time and amended. Ordered to third reading. |
| May 31, 2016 | Read second time. Ordered to third reading. |
| May 27, 2016 | Read second time and amended. Ordered returned to second reading. |
| May 27, 2016 | From committee: Amend, and do pass as amended. (Ayes 20. Noes 0.) (May 27). |
| May 18, 2016 | In committee: Set, first hearing. Referred to APPR. suspense file. |
| Apr 13, 2016 | From committee: Do pass and re-refer to Com. on APPR. (Ayes 7. Noes 0.) (April 12). Re-referred to Com. on APPR. |
| Feb 29, 2016 | Referred to Com. on HUM. S. |
| Feb 18, 2016 | From printer. May be heard in committee March 19. |
|
Date
|
Description
|
Location
|
Votes
|
|
|---|---|---|---|---|
| Aug 8, 2016 | Placed on suspense file | Senate Standing Committee on Appropriations |
Passed |
|
| Jun 22, 2016 | Do pass, but first be re-referred to the Committee on [Appropriations] with the recommendation: To Consent Calendar | Senate Standing Committee on Education |
Passed |
|
| Jun 2, 2016 | AB 2150 SANTIAGO Assembly Third Reading | Assembly Floor |
Passed |
|
| May 27, 2016 | Do pass as amended. | Assembly Standing Committee on Appropriations |
Passed |
|
| Apr 12, 2016 | Do pass and be re-referred to the Committee on [Appropriations] | Assembly Standing Committee on Human Services |
Passed |
This list shows positions taken on this bill by organizations on the date displayed, which is linked to the original source.
Positions by individuals are not included.
|
Organization
|
Position
|
Date
|
|---|---|---|
| A Stronger California Advocates Network | ** Support | Apr 12, 2016 |
| Advancement Project | ** Support | Apr 12, 2016 |
| AFSCME Local 3930 | ** Support | Apr 12, 2016 |
| Butte County Child Abuse Prevention Council | ** Support | Apr 12, 2016 |
| California Alternative Payment Program Association | ** Support | Apr 12, 2016 |
| California Child Development Administrators Association | * Support | Apr 12, 2016 |
| California Child Development Consortium of Los Angeles | * Support | Apr 12, 2016 |
| California Community College CalWORKs Association | ** Support | Apr 12, 2016 |
| California Work & Family Coalition | ** Support | Apr 12, 2016 |
| Center for Community Change Action | ** Support | Apr 12, 2016 |
| Child Care Alliance of Los Angeles | ** Support | Apr 12, 2016 |
| Child Care Law Center | * Support | Apr 12, 2016 |
| Child Care Law Center -co-sponsor | ** Support | Apr 12, 2016 |
| Child Care Resource Center | ** Support | Apr 12, 2016 |
| Childcare Alliance Los Angeles | * Support | Apr 12, 2016 |
| Children Now | * Support | Apr 12, 2016 |
| Children's Council of San Francisco | ** Support | Apr 12, 2016 |
| Choices For Children | ** Support | Apr 12, 2016 |
| Community Child Care Council of Alameda County | ** Support | Apr 12, 2016 |
| Contra Costa County | * Support | Apr 12, 2016 |
| Educational Enrichment Systems | * Support | Apr 12, 2016 |
| Equal Rights Advocates | ** Support | Apr 12, 2016 |
| Fresno County | * Support | Apr 12, 2016 |
| Marin Child Care Council | ** Support | Apr 12, 2016 |
| Marin County Parent Voices | * Support | Apr 12, 2016 |
| Marin Family Child Care Association | ** Support | Apr 12, 2016 |
| Mimi and Peter Hass Fund | ** Support | Apr 12, 2016 |
| National Association of Social Workers, CA Chapter | ** Support | Apr 12, 2016 |
| National Council of Jewish Women-CA | ** Support | Apr 12, 2016 |
| Oakland Unified School District | ** Support | Apr 12, 2016 |
| Our Family Coalition | ** Support | Apr 12, 2016 |
| Parent Voices | * Support | Apr 12, 2016 |
| Parent Voices - co-sponsor | ** Support | Apr 12, 2016 |
| Parent Voices California | * Support | Apr 12, 2016 |
| Parent Voices Solano | * Support | Apr 12, 2016 |
| Raising California Together | ** Support | Apr 12, 2016 |
| San Francisco Parent Voices | * Support | Apr 12, 2016 |
| Services Employees International Union | ** Support | Apr 12, 2016 |
| W. Haywood Burns Institute | ** Support | Apr 12, 2016 |
| Western Center On Law And Poverty Inc. | * Support | Apr 12, 2016 |
SENATE COMMITTEE ON
Senator Ricardo Lara, Chair
2015 - 2016 Regular Session
AB 2150 (Santiago) - Subsidized child care and development services: eligibility periods
Version: | Policy Vote: |
Urgency: | Mandate: |
Hearing Date: | Consultant: |
This bill meets the criteria for referral to the Suspense File.
Bill Summary:
This bill makes changes to eligibility determination and re-determination requirements for subsidized child care to promote continuity of services for no less than 12 months.
Fiscal Impact:
- Unknown, but costs potentially in the low tens of millions General Fund annually for CalWORKS Stage 2 and Stage 3, an entitlement program, to provide eligibility for services for 12 months, despite changes in family circumstances, due to less program attrition. (General Fund)
- Significant increase in cost pressure for capped child care programs. Providing guaranteed eligibility for 12 months results in longer waitlists for programs that have a capped number of slots due to children remaining in programs despite changes in income or need that would have otherwise caused them to become ineligible, thus freeing up a slot for a waiting family. This bill further reduces program attrition in out years by increasing the ongoing income eligibility threshold. It also allows more families to qualify for services by updating the initial income eligibility threshold, thereby adding families to existing waitlists.
- One-time cost to the California Department of Education (CDE) to develop regulations to implement this bill, estimated to be $147,000 over an 18 month timeline. (General Fund)
- State and local administrative workload could be reduced due to less paperwork related to reporting changes that affect eligibility. The magnitude of this effect is unquantifiable.
Background:
Current law establishes the Child Care and Development Services Act to provide child care and development services as part of a coordinated, comprehensive, and cost effective system serving children from birth to 13 years old and their parents, and including a full range of supervision, health, and support services through full and part-time programs. Children are eligible for subsidized child care if the family currently receives aid, meets specified income eligibility requirements, is homeless, or if the child is the recipient of protective services, or has been identified as being, or at risk of being, neglected, abused or exploited.
To be income eligible for subsidized child care and services the state requires a family's adjusted monthly income to be at or below 70 percent of the state median income, about $42,000 per year for a family of three. For the 2016-17 fiscal year, the income eligibility limits are based on what was in use for the 2007-08 fiscal year, adjusted for family size. Families are required to report changes in circumstances, including changes in income and employment status, throughout their child’s enrollment that could disqualify a child from the program.
The federal Child Care and Development Block Grant (CCDBG) Act of 1990 was reauthorized in 2014. This reauthorization brought about a number of changes aimed at addressing health and safety requirements, quality of care, and consumer and provider education. Among the changes adopted, the reauthorization establishes a 12-month eligibility redetermination period for families, regardless of changes in income (provided income does not exceed 85 percent of state median income), or temporary changes in participation in work, training, or education activities.
State regulations require families to notify their child care contractor within five days of any changes in family income, family size, or the need for services. Families receiving services because the child is at risk of, or has experienced actual, abuse, neglect or exploitation are recertified at once every six months. All other families are recertified at least once each contract period and at intervals not to exceed 12 months. There is some debate as to whether California’s current eligibility provisions will meet the new federal requirement. According to the author’s office, this bill seeks to provide stability to families and ensure that California is incompliance with the federal CCDBG Act which specifies the minimum period of eligibility to be 12 months for each child who receives assistance.
Proposed Law:
This bill changes eligibility with regard to the minimum duration of services and income eligibility to qualify for services.
12-month Eligibility
Specifically, this bill requires, upon establishing initial eligibility or ongoing eligibility for services for child care services, a family to be considered to meet eligibility for services for not less than 12 months. Except as specified, this bill provides that re-determination of eligibility must not occur before the 12 months of services are provided and a family is not required to report changes to income or other changes that affect eligibility during that time. However, a family must report increases in income that exceed the threshold for “ongoing income eligibility” as defined below, and the family’s ongoing eligibility for services must then be re-determined.
A family that establishes eligibility for services on the basis of seeking employment receives services as follows:
- If seeking employment is the basis for initial eligibility, the family receives services for at least six months.
- If seeking employment is the only basis for ongoing eligibility at the time of redetermination, the family receives services for an additional six months unless the family becomes eligible on another basis.
This bill authorizes a family to voluntarily report income or other changes which would be used to reduce a family’s fees, increase the family’s subsidy, or extend the period of the family’s eligibility before redetermination.
This bill requires the CDE to initiate a rulemaking action to implement these requirements by December 31, 2017. The CDE must beforehand, convene a workgroup of parents, advocates, department staff, child development program representatives, and other stakeholders to develop recommendations regarding implementation.
State Median Income
This bill also changes the criteria for establishing income eligibility for purposes of qualifying for child care services. With regard to income eligibility, this bill provides that for purposes of establishing initial income eligibility for services, “income eligible” means that a family’s adjusted monthly income is at or below 70 percent of the state median income, based on the most recent data on state median income published by the United States Census Bureau, for a family of the same size.
This bill creates a new threshold for establishing “ongoing income eligibility.” For purposes of establishing ongoing income eligibility a family’s adjusted monthly income is at or below the 85 percent of the state median income, based on the most recent data on state median income published by the United States Census Bureau, for a family of the same size.
Related Legislation:
SB 567 (Liu, 2015) would have required a child who is enrolled in a state or federally funded child care program to be deemed eligible for that program for the remainder of the program year. SB 567 failed passage in this committee.
Staff Comments:
This bill creates unknown but potential costs of up to about $30 million to CalWORKS Stage 2 and 3 to require continued 12 month eligibility for families that would have otherwise become ineligible due to exceeding the income threshold. This generally assumes an attrition rate of about 4 percent to Stage 2 and Stage 3 caseload and assumes that, based on total amounts appropriated and the caseload being served, the annual cost of care averages about $8,500. Exact costs attributed to this benefit are ultimately unknown because, though the state tracks the number of children leaving care each month, there is no way to know if the same child reenrolled in the same or another program in the same year. The state also does not track the reason a child leaves care, including those whose families have left due to no longer meeting the income eligibility. Reasons for leaving care extend beyond changes in eligibility.
This bill also expands eligibility by increasing the income ceiling. For the first year of services, the threshold remains at the existing 70 percent of the state median income, but based on updated data by which eligibility is determined. For the 2016-17 fiscal year, the income eligibility limits are set at 70 percent of the state median income that was in use for the 2007-08 fiscal year, adjusted for family size. This bill uses the most recent data on state median income published by the United States Census Bureau, which likely has the effect of higher incomes qualifying.
In addition, this bill establishes an ongoing eligibility limit of 85 percent of the state median income. This has the effect of more children staying in services for longer as they would have otherwise become ineligible once the family’s income exceeds 70 percent. Conceivably, a family’s income could consistently reside between 70 and 85 percent of the state median income and not lose services, thereby further decreasing program attrition and reducing the number of slots that become available for the lowest income families.
-- END --
SENATE COMMITTEE ON EDUCATION
Senator Carol Liu, Chair
2015 - 2016 Regular
Bill No: AB 2150
Author: | |||
Version: | June 1, 2016 Hearing Date: June 22, 2016 | ||
Urgency: | No | Fiscal: | Yes |
Consultant: | Olgalilia Ramirez | ||
Subject: Subsidized child care and development services: eligibility periods
SUMMARY
This bill provides for changes to eligibility determination and redetermination for subsidized child care for purposes of promoting continuity of service for no less than 12 months, except as specified.
BACKGROUND
Existing law:
- Establishes the Child Care and Development Services Act to provide child care and development services as part of a coordinated, comprehensive, and cost-effective system serving children from birth to 13 years old and their parents, and including a full range of supervision, health, and support services through full- and part-time programs. (Education Code § 8200, et seq.)
- Requires the Superintendent of Public Instruction to adopt rules and regulations on eligibility, enrollment, and priority of services. Specifies that children are eligible for child care and development services if the family currently receives aid, meets specified income eligibility requirements, is homeless, or if the child is the recipient of protective services, or has been identified as neglected, abused or exploited (or at risk of such). (EC § 8263)
- Defines income eligibility to mean that a family’s adjusted monthly income is at or below 70 percent of the state median income, adjusted for family size, and adjusted annually. For the 2015–16 fiscal year, the income eligibility limits are set at 70 percent of the state median income (SMI) that was in use for the 2007–08 fiscal year, adjusted for family size. (EC § 8263.1(a) and § 8263.1(e))
- Requires that families whose incomes exceed 70 percent of SMI be disenrolled from subsidized child care services in a specified order.
(EC § 8263.2 and § 8263.3)
- Requires families to notify their child care contractor within five calendar days of any changes in family income, family size or the need for services.
(California Code of Regulations, Title 5, § 18102, § 18410 and § 18425)
- Permits a family enrolled in a state or federally funded child care and development program whose services would otherwise be terminated because the family no longer meets the program income, eligibility, or need criteria, to continue to receive child development services in another state or federally funded child care and development program if the contractor is able to transfer the family’s enrollment to another program, as specified. (EC § 8263(c))
- Establishes, through federal law, the Child Care and Developmental Block Grant (CCDBG), reauthorized in 2014 with the following purposes:
- To allow each state maximum flexibility in developing child care programs and policies that best suit the needs of children and parents within that state;
- To promote parental choice to empower working parents to make their own decisions regarding the child care services that best suit their family’s needs;
- To encourage states to provide consumer education information to help parents make informed choices about child care services and to promote involvement by parents and family members in the development of their children in child care settings;
- To assist states in delivering high-quality, coordinated early childhood care and education services to maximize parents’ options and support parents trying to achieve independence from public assistance;
- To assist states in improving the overall quality of child care services and programs by implementing the health, safety, licensing, training, and oversight standards;
- To improve child care and development of participating children; and
- To increase the number and percentage of low-income children in high-quality child care settings.” (USC Title 42, § 9801 and § 658A)
2) Requires, through federal law (CCDBG), that state plans demonstrate that each child who receives assistance will be considered to meet all eligibility requirements and will receive assistance for not less than 12 months before the state or designated local entity re-determines the eligibility of the child, regardless of a temporary change in the ongoing status of the child's parent as working or attending a job training or educational program, or a change in family income for the child's family, if that family income does not exceed 85 percent of the state median income for a family of the same size.
(USC, Title 42, § 9801 and § 658E(c)(2)(N)(i))
ANALYSIS
This bill:
- Requires a family, upon establishing initial or ongoing eligibility for subsidized child care services, to:
- Be considered to meet all eligibility requirements for a period of not less than 12 months, unless the family established eligibility on the basis of seeking employment, as specified;
- Receive subsidized child care services for not less than 12 months prior to having their eligibility redetermined, unless the family established eligibility on the basis of seeking employment or exceeds the threshold for ongoing eligibility, as specified; and
- Not be required to report changes to income or other changes for at least 12 months, unless the family established eligibility on the basis of seeking employment or exceeds the threshold for ongoing eligibility, as specified, as specified.
- Requires a family establishing eligibility solely on the basis of seeking employment to receive services for not less than six months and at the time of redetermination receive services for six additional months unless the family exceeds the threshold for ongoing eligibility.
- Requires a family to report increases in income that exceed the threshold for ongoing income eligibility, as specified, and further requires the family’s ongoing eligibility to be redetermined at that time.
- Specifies that a family may at any time voluntarily report income or other changes for the purpose of reducing family’s fees, increasing the family’s subsidy, or extending the period of the family’s eligibility before redetermination.
- Prohibits a payment made by a child development program for a child during the 12 month period, as specified from being considered an error or an improper payment due to a change in the family’s circumstances during that same period.
- Modifies the definition of “income eligible” to mean that a family’s adjusted gross income is at or below 70 percent of the state median income (SMI) based on the most recent data on SMI published by the United States Census Bureau, for a family of the same size and provides that this definition applies for purposes of establishing initial for services.
- Defines “ongoing income eligibility,” for purposes of establishing ongoing income eligibility for services to mean that a family’s adjusted monthly income is at or below 85 percent of the SMI based on the most recent data on state median income published by the United States Census Bureau, for a family of the same size.
- Authorizes, the California Department of Education (CDE) to implement the bill’s provisions through management bulletins or similar letters of instruction until regulations are filed with the Secretary of State.
- Requires CDE to initiate a rulemaking action to implement the provisions on or before December 31, 2017, as specified.
- Makes technical amendments, including removing provisions that specify or refer to eligibility determination periods that conflict with the provisions contained in this bill.
STAFF COMMENTS
- Need for the bill. In 2014, the federal Child Care Development Block Grant Act of 2014 (CCDBG) was enacted. The new law requires states to immediately implement a number of policies to promote stable child care assistance. According to the author, “in California, burdensome reporting rules cause eligible families to churn between child care programs and long waiting lists for the programs. Churning disrupts children’s school readiness and development; makes it impossible for child care providers to balance ledgers or plan for quality investments; and burdens employers and education providers to sign off on endless paperwork. This bill seeks to provide stability to families and ensure that California is in compliance with the federal CCDBG Act which specifies the minimum period of eligibility to be a 12-month period for each child who receives assistance.
- Child Care Eligibility. Under current law, children are eligible for subsidized child care if the family currently receives aid, meets specified income eligibility requirements, is homeless, or if the child is the recipient of protective services, or has been identified as neglected, abused or exploited (or at risk of such). To be income eligible for subsidized child care and services the state requires a family's adjusted monthly income to be at or below 70 percent of the state median income about $42,000 per year for a family of three. Families are required to report changes in circumstances including changes in income and employment status throughout their child’s enrollment that could disqualify a child from the program. Concern about families whose wages fluctuate or who receive incremental increases that bump them above the eligibility threshold have been persistent both in California and nationwide. The effect of frequent changes in child care arrangements on children and their development has also raised concerns.
- Child Care and Development Block Grant (CCDBG). The federal Child Care and Development Block Grant Act of 1990 was reauthorized in 2014. This reauthorization brought about a number of changes aimed at addressing health and safety requirements, quality of care, and consumer and provider education. Among the changes adopted, the reauthorization establishes a 12-month eligibility redetermination period for families, regardless of changes in income (provided income does not exceed 85% of State median income), or temporary changes in participation in work, training, or education activities. According to California Department of Education, the provision of 12-month eligibility is one of the requirements where California is not yet in compliance. The provisions in this bill would ensure that California meets that requirement.
- Related legislation.
SB 567 (Liu, 2015) would have required a child who is enrolled in a state or federally funded child care program to be deemed eligible for that program for the remainder of the program year. AB 567 died in the Senate Appropriations Committee.
AB 233 (Lopez, 2015) would have required a family enrolled in a state or federally funded child care and development program to be considered eligible for services for 12 months from time of initial or annual, eligibility determination. The bill additionally would make substantial changes to the process used by alternative payment providers in establishing and tracking rates. AB 233 died in the Assembly Appropriations Committee.
SB 1123 (Liu, 2014) would have permitted providers to have choices that enable greater funding flexibility and allow services to be tailored to fit community needs including the remainder of program year eligibility. SB 1123 died in the Assembly Appropriations Committee.
SB 192 (Liu, 2014) would have recast existing child care and development statute as the Early Learning and Educational Support Act, and would require the Superintendent to develop standards for the implementation of high-quality early learning and educational support programs based on certain indicia of quality, as defined. SB 192 died in the Assembly Appropriations Committee.
SUPPORT
Advancement Project
Advancement Project
Alameda County Board of Supervisors
Alameda County Early Care and Education Planning Council
American Federation of State, County and Municipal Employees (AFSCME)
Butte County Child Abuse Prevention Council
California Alternative Payment Program Association
California Association for the Education of Young Children
California Child Care Resource & Referral Network
California Child Development Administrators Association
California Community College CalWORKS Association
California Work and Family Coalition
Center for Community Change Action
Center for Law and Social Policy
Central Valley Children’s Network
Child Care Alliance of Los Angeles
Child Care Law Center
Child Care Resource Center
Children Now
Children’s Council of San Francisco
Choices for Children
Coalition of California Welfare Rights Organizations, Inc.
Community Child Care Council of Sonoma County
Crystal Stairs, Inc.,
Early Edge California
Equal Rights Advocates
First 5 California
First 5 LA
Frist 5 Association of California
Los Angeles County Office of Education
Marin Child Care Council
Marin County Child Care Commission
Marin Family Child Care Association
National Association of Social Workers
National Association of Working Women
National Council of Jewish Women
Our Family Coalition
Parent Voices
Professional Association for Childhood Education
San Francisco Office of Early Care and Education
Services Employees International Union (SEIU)
State Superintendent of Public Instruction, Tom Torlakson
Supervisor Katy Tang, City and County of San Francisco
The Stronger California Advocates Network
UDW/AFSCME Local 3930
United Way of San Diego County
W. Haywood Burns Institute
Women’s Foundation of California
OPPOSITION
None received.
-- END --
ASSEMBLY THIRD READING
ATR Bill Id:AB 2150
Author:(Santiago, et al.)
As Amended Ver:June 1, 2016
Majority vote
Committee | Votes | Ayes | Noes |
Human Services | 7-0 | Bonilla, Grove, Calderon, Lopez, Maienschein, Mark Stone, Thurmond | |
Appropriations | 20-0 | Gonzalez, Bigelow, Bloom, Bonilla, Bonta, Calderon, Chang, Daly, Eggman, Gallagher, Eduardo Garcia, Roger Hernández, Holden, Jones, Obernolte, Quirk, Santiago, Wagner, Weber, Wood |
SUMMARY: Provides for changes to eligibility determination and redetermination for subsidized child care. Specifically, this bill:
- Requires a family, upon establishing initial or ongoing eligibility for subsidized child care services, to:
- Be considered to meet all eligibility requirements for a period of not less than 12 months, unless the family established eligibility on the basis of seeking employment, as specified;
- Receive subsidized child care services for not less than 12 months prior to having their eligibility redetermined, unless the family established eligibility on the basis of seeking employment, as specified; and
- Not be required to report changes to income or other changes for at least 12 months, unless the family attains an income that exceeds the threshold for ongoing eligibility, as specified.
- Requires a family that establishes initial eligibility on the basis of seeking employment to receive services for not less than six months and further requires a family that establishes ongoing eligibility for subsidized child care to receive services for six additional months unless the family becomes otherwise eligible, as specified.
- Requires a family to report increases in income that exceed the threshold for ongoing income eligibility, as specified, and further requires the family's ongoing eligibility to be redetermined at that time.
- Permits a family to, at any time, voluntarily report income or other changes for purposes of reducing a family's fees, increasing a family's subsidy, or extending the period of the family's eligibility prior to redetermination.
- Stipulates that a payment made by a child development program for a child prior to the next redetermination of eligibility shall not be considered an error or an improper payment due to a change in the family's circumstances during that period, as specified.
- Authorizes the California Department of Education (CDE) to implement 12-month continuous eligibility, as specified, for subsidized child care via management bulletins or similar letters of instruction until implementing regulations are filed with the Secretary of State and further, requires CDE to initiate a rulemaking action to implement 12-month continuous eligibility by December 31, 2017, and after convening a workgroup of stakeholders to develop related recommendations, as specified.
- Specifies that, for purposes of establishing initial income eligibility for subsidized child care services, "income eligible" means that a family's adjusted monthly income is at or below 70% of the state median income (SMI) based on the most recent data published by the United States Census Bureau for a family of the same size.
- Defines, for purposes of establishing ongoing income eligibility for subsidized child care services, "ongoing income eligible" to mean that a family's adjusted monthly income is at or below 85% of the SMI based on the most recent data published by the United States Census Bureau for a family of the same size.
- Authorizes any family that receives first priority for subsidized child care services, as specified, to be exempt from family fees for up to 12 months.
- Makes technical amendments, including removing provisions that specify or refer to eligibility determination periods that conflict with the provisions contained in this bill.
EXISTING LAW:
- Establishes the Child Care and Development Services Act to provide child care and development services as part of a coordinated, comprehensive, and cost-effective system serving children from birth to 13 years old and their parents, and including a full range of supervision, health, and support services through full- and part-time programs. (Education Code Section (EDC) 8200 et seq.)
- Requires the Superintendent of Public Instruction to administer general child care and development programs to include, among other things as specified, age- and developmentally-appropriate activities, supervision, parenting education and involvement, and nutrition. Further allows such programs to be designed to meet child-related needs identified by parents or guardians, as specified. (EDC 8240 and 8241)
- To allow for maximum parental choice, authorizes the operation of Alternative Payment Programs (APPs) and provision of alternative payments and support services to parents and child care providers by local government agencies or non-profit organizations that contract with California Department of Education (CDE). (EDC 8220)
- Establishes rules and requirements for APPs and providers, as contracted agencies with CDE, to observe, including but not limited to accounting and auditing requirements, attendance monitoring requirements, referral requirements where applicable, and reimbursement and payment procedures. (EDC 8220 et seq.)
- Requires the Superintendent to establish a family fee schedule for subsidized child care, as specified, contingent on income and subject to a cap. (EDC 8273)
FISCAL EFFECT: According to the Assembly Appropriations Committee, this bill may result in the following costs:
- Unknown, potentially major costs to the CDE, estimated in the range of $1 million to $5 million annually, due to increased caseload for CalWORKs stages 2 and 3 child care. With existing data we are unable to identify the percentage of children leaving child care due to loss of eligibility. This estimate assumes between 2% and 10% of the existing number of children leaving child care each month would instead continue child care under this bill.
- Administrative costs to CDE of approximately $40,000 in Fiscal Year (FY) 2016-17 and $23,000 in FY 2017-18 to update regulations.
COMMENTS:
Subsidized child care: Subsidized child care may be available to low-income families through a number of programs. Additionally, California offers State Preschool Programs to eligible three-and four-year-olds. California offers subsidized child care to parents participating in CalWORKs and to families transitioning off of and no longer receiving aid. This child care is offered in three "stages"; Department of Social Services (DSS) administers Stage 1, and CDE administers Stages 2 and 3. CDE also administers non-CalWORKs child care. The largest programs are: General Child Care, which includes contracted centers and family child care homes; the California State Preschool Program, which includes contracted centers and family child care homes for three- and four-year olds; and APPs, which provide vouchers that can be used to obtain child care in a center, family child care home, or from a license-exempt provider. Waitlists for non-CalWORKs child care are common.
Contracted providers are funded through the receipt of the Standard Reimbursement Rate (SRR) based on the number of children enrolled and the hours of care provided. Families may also be required to pay a family fee if they earn above a certain threshold income for their family size. The current SRR is $38.29 per child for a full day of care. Adjustment factors are applied to the SRR in some instances to reflect the increased cost of care for the different ages and needs of children.
The Regional Market Rate (RMR) survey calculates the market rates for child care in each of California's 58 counties and uses these to establish maximum child care reimbursement rates for child care services for families in various APPs or other voucher child care programs. States are required to conduct a market rate survey every two years, but are not required to use the most recent survey to set rates. Reimbursement rates for licensed providers accepting vouchers are currently derived by applying a formula to the 2009 RMR. License-exempt providers are reimbursed at 65% of the Family Child Care Home ceilings. In Santa Clara County, for example, the full-time daily RMR for a preschool-age child in a child care center is $69.77. For that same child in a family child care home, the RMR is $57.88, and with a license-exempt provider, the RMR is $37.62.
Families are typically eligible for subsidized child care if their income is less than 70% of the 2007-08 State Median Income (about $42,000 per year for a family of 3), if the parents have a need related to work, training, or education, and if the children are up to 12 years old (or 21 years old for youth with exceptional needs).
Families may be charged a "family fee" depending on their income. For a family of 3, for example, subsidized child care remains at no cost for families earning less than $1,950 per month. However, with incomes between $1,950 a month and the monthly income ceiling of $3,518, a family fee is charged, the amount of which increases with income, but never to surpass 10% of a family's income. For a family of three with a monthly income of $1,950, the family fee per month for full-time care is $42; for a family of three earning $3,518 per month, this fee is $345.
Across the various subsidized child care programs, there are estimated to be over 195,000 slots (not including State Preschool). State Preschool contains over 157,000 additional slots.
Child Care and Development Block Grant (CCDBG): The federal Child Care and Development Block Grant Act of 2014 (P.L. 113-186) reauthorized the Child Care and Development Block Grant Act of 1990. This reauthorization brought about a number of changes aimed at addressing health and safety requirements, quality of care, and consumer and provider education.
One specific change adopted by this reauthorization establishes a 12-month eligibility redetermination period for families, regardless of changes in income (provided income does not exceed 85% of the SMI, the maximum income ceiling allowable under federal law) or temporary changes in participation in work, training, or education activities.
Also, according to the federal Administration for Children and Families' (ACF) Office of Child Care:
The [CCDBG Act] specifies that a State must provide for a graduated phase-out of assistance for families whose income has increased at the time of re-determination, but still does not exceed the federal income limit of 85% of State Median Income (SMI). Providing a graduated phase-out promotes continuity by allowing for wage growth, a tapered transition out of the child care subsidy program, and supports long-term financial stability to help families get to a point where they no longer need the subsidy. Sudden withdrawal of support can destabilize and undermine a family's pathway to financial stability.
ACF strongly encourages States and Territories to consider how to continue to support families through access to financial assistance for child care until they have achieved financial stability. Pending additional guidance from ACF, this could be achieved through policies such as establishing a second income eligibility threshold at re-determination (e.g., establishing a different eligibility threshold for families first applying for assistance and those already receiving assistance, sometimes called an 'exit threshold') or by granting a sustained period of continued assistance to the family before termination. The law allows the exit threshold to be set as high as 85% of SMI. States could adjust co-pays for families during this period to create a gradual shift in how families must adjust their budget to cover the full cost of care once they are no longer receiving a subsidy, but should consider how to do this in a way that minimizes paperwork and reporting burdens on working families.
Need for this bill: According to the author:
In California, burdensome reporting rules cause eligible families to churn between child care programs and long waiting lists for the programs. Churning disrupts children's school readiness and development; makes it impossible for child care providers to balance ledgers or plan for quality investments; and burdens employers and education providers to sign off on endless paperwork.
There is broad consensus among child care administrators, advocates, and parents that the state's current reporting rules are harmful, and that establishing more stability within the child care system will create better outcomes for children.
Analysis Prepared by: Daphne Hunt / HUM. S. / (916) 319-2089 FN: 0003389
ASSEMBLY THIRD READING
ATR Bill Id:AB 2150
Author:(Santiago, et al.)
As Amended Ver:May 27, 2016
Majority vote
Committee | Votes | Ayes | Noes |
Human Services | 7-0 | Bonilla, Grove, Calderon, Lopez, Maienschein, Mark Stone, Thurmond | |
Appropriations | 20-0 | Gonzalez, Bigelow, Bloom, Bonilla, Bonta, Calderon, Chang, Daly, Eggman, Gallagher, Eduardo Garcia, Roger Hernández, Holden, Jones, Obernolte, Quirk, Santiago, Wagner, Weber, Wood |
|
SUMMARY: Provides for changes to eligibility determination and redetermination for subsidized child care. Specifically, this bill:
- Requires a family, upon establishing initial or ongoing eligibility for subsidized child care services, to:
- Be considered to meet all eligibility requirements for a period of not less than 12 months, unless the family established eligibility on the basis of seeking employment, as specified;
- Receive subsidized child care services for not less than 12 months prior to having their eligibility redetermined, unless the family established eligibility on the basis of seeking employment, as specified; and
- Not be required to report changes to income or other changes for at least 12 months, unless the family attains an income that exceeds the threshold for ongoing eligibility, as specified.
- Requires a family that establishes initial eligibility on the basis of seeking employment to receive services for not less than six months and further requires a family that establishes ongoing eligibility for subsidized child care to receive services for six additional months unless the family becomes otherwise eligible, as specified.
- Requires a family to report increases in income that exceed the threshold for ongoing income eligibility, as specified, and further requires the family's ongoing eligibility to be redetermined at that time.
- Permits a family to, at any time, voluntarily report income or other changes for purposes of reducing a family's fees, increasing a family's subsidy, or extending the period of the family's eligibility prior to redetermination.
- Specifies that, for purposes of establishing initial income eligibility for subsidized child care services, "income eligible" means that a family's adjusted monthly income is at or below 70% of the state median income (SMI) based on the most recent data published by the United States Census Bureau for a family of the same size.
- Defines, for purposes of establishing ongoing income eligibility for subsidized child care services, "ongoing income eligible" to mean that a family's adjusted monthly income is at or below 85% of the SMI based on the most recent data published by the United States Census Bureau for a family of the same size.
- Authorizes any family that receives first priority for subsidized child care services, as specified, to be exempt from family fees for up to 12 months.
- Makes technical amendments, including removing provisions that specify or refer to eligibility determination periods that conflict with the provisions contained in this bill.
EXISTING LAW:
- Establishes the Child Care and Development Services Act to provide child care and development services as part of a coordinated, comprehensive, and cost-effective system serving children from birth to 13 years old and their parents, and including a full range of supervision, health, and support services through full- and part-time programs. (Education Code Section (EDC) 8200 et seq.)
- Requires the Superintendent of Public Instruction to administer general child care and development programs to include, among other things as specified, age- and developmentally-appropriate activities, supervision, parenting education and involvement, and nutrition. Further allows such programs to be designed to meet child-related needs identified by parents or guardians, as specified. (EDC 8240 and 8241)
- To allow for maximum parental choice, authorizes the operation of Alternative Payment Programs (APPs) and provision of alternative payments and support services to parents and child care providers by local government agencies or non-profit organizations that contract with California Department of Education (CDE). (EDC 8220)
- Establishes rules and requirements for APPs and providers, as contracted agencies with CDE, to observe, including but not limited to accounting and auditing requirements, attendance monitoring requirements, referral requirements where applicable, and reimbursement and payment procedures. (EDC 8220 et seq.)
- Requires the Superintendent to establish a family fee schedule for subsidized child care, as specified, contingent on income and subject to a cap. (EDC 8273)
FISCAL EFFECT: According to the Assembly Appropriations Committee, this bill may result in the following costs:
- Unknown, potentially major costs to the CDE, estimated in the range of $1 million to $5 million annually, due to increased caseload for CalWORKs stages 2 and 3 child care. With existing data we are unable to identify the percentage of children leaving child care due to loss of eligibility. This estimate assumes between 2% and 10% of the existing number of children leaving child care each month would instead continue child care under this bill.
- Administrative costs to CDE of approximately $40,000 in Fiscal Year (FY) 2016-17 and $23,000 in FY 2017-18 to update regulations.
COMMENTS:
Subsidized child care: Subsidized child care may be available to low-income families through a number of programs. Additionally, California offers State Preschool Programs to eligible three-and four-year-olds. California offers subsidized child care to parents participating in CalWORKs and to families transitioning off of and no longer receiving aid. This child care is offered in three "stages"; Department of Social Services (DSS) administers Stage 1, and CDE administers Stages 2 and 3. CDE also administers non-CalWORKs child care. The largest programs are: General Child Care, which includes contracted centers and family child care homes; the California State Preschool Program, which includes contracted centers and family child care homes for three- and four-year olds; and APPs, which provide vouchers that can be used to obtain child care in a center, family child care home, or from a license-exempt provider. Waitlists for non-CalWORKs child care are common.
Contracted providers are funded through the receipt of the Standard Reimbursement Rate (SRR) based on the number of children enrolled and the hours of care provided. Families may also be required to pay a family fee if they earn above a certain threshold income for their family size. The current SRR is $38.29 per child for a full day of care. Adjustment factors are applied to the SRR in some instances to reflect the increased cost of care for the different ages and needs of children.
The Regional Market Rate (RMR) survey calculates the market rates for child care in each of California's 58 counties and uses these to establish maximum child care reimbursement rates for child care services for families in various APPs or other voucher child care programs. States are required to conduct a market rate survey every two years, but are not required to use the most recent survey to set rates. Reimbursement rates for licensed providers accepting vouchers are currently derived by applying a formula to the 2009 RMR. License-exempt providers are reimbursed at 65% of the Family Child Care Home ceilings. In Santa Clara County, for example, the full-time daily RMR for a preschool-age child in a child care center is $69.77. For that same child in a family child care home, the RMR is $57.88, and with a license-exempt provider, the RMR is $37.62.
Families are typically eligible for subsidized child care if their income is less than 70% of the 2007-08 State Median Income (about $42,000 per year for a family of 3), if the parents have a need related to work, training, or education, and if the children are up to 12 years old (or 21 years old for youth with exceptional needs).
Families may be charged a "family fee" depending on their income. For a family of 3, for example, subsidized child care remains at no cost for families earning less than $1,950 per month. However, with incomes between $1,950 a month and the monthly income ceiling of $3,518, a family fee is charged, the amount of which increases with income, but never to surpass 10% of a family's income. For a family of three with a monthly income of $1,950, the family fee per month for full-time care is $42; for a family of three earning $3,518 per month, this fee is $345.
Across the various subsidized child care programs, there are estimated to be over 195,000 slots (not including State Preschool). State Preschool contains over 157,000 additional slots.
Child Care and Development Block Grant (CCDBG): The federal Child Care and Development Block Grant Act of 2014 (P.L. 113-186) reauthorized the Child Care and Development Block Grant Act of 1990. This reauthorization brought about a number of changes aimed at addressing health and safety requirements, quality of care, and consumer and provider education.
One specific change adopted by this reauthorization establishes a 12-month eligibility redetermination period for families, regardless of changes in income (provided income does not exceed 85% of the SMI, the maximum income ceiling allowable under federal law) or temporary changes in participation in work, training, or education activities.
Also, according to the federal Administration for Children and Families' (ACF) Office of Child Care:
The [CCDBG Act] specifies that a State must provide for a graduated phase-out of assistance for families whose income has increased at the time of re-determination, but still does not exceed the federal income limit of 85% of State Median Income (SMI). Providing a graduated phase-out promotes continuity by allowing for wage growth, a tapered transition out of the child care subsidy program, and supports long-term financial stability to help families get to a point where they no longer need the subsidy. Sudden withdrawal of support can destabilize and undermine a family's pathway to financial stability.
ACF strongly encourages States and Territories to consider how to continue to support families through access to financial assistance for child care until they have achieved financial stability. Pending additional guidance from ACF, this could be achieved through policies such as establishing a second income eligibility threshold at re-determination (e.g., establishing a different eligibility threshold for families first applying for assistance and those already receiving assistance, sometimes called an 'exit threshold') or by granting a sustained period of continued assistance to the family before termination. The law allows the exit threshold to be set as high as 85% of SMI. States could adjust co-pays for families during this period to create a gradual shift in how families must adjust their budget to cover the full cost of care once they are no longer receiving a subsidy, but should consider how to do this in a way that minimizes paperwork and reporting burdens on working families.
Need for this bill: According to the author:
In California, burdensome reporting rules cause eligible families to churn between child care programs and long waiting lists for the programs. Churning disrupts children's school readiness and development; makes it impossible for child care providers to balance ledgers or plan for quality investments; and burdens employers and education providers to sign off on endless paperwork.
There is broad consensus among child care administrators, advocates, and parents that the state's current reporting rules are harmful, and that establishing more stability within the child care system will create better outcomes for children.
Analysis Prepared by: Daphne Hunt / HUM. S. / (916) 319-2089 FN: 0003270
Date of Hearing: May 18, 2016
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Lorena Gonzalez, Chair
ABPCA Bill Id:AB 2150
Author:(Santiago) – As Introduced Ver:February 17, 2016
Policy Committee: | Human Services | Vote: | 7 - 0 |
Urgency: No State Mandated Local Program: No Reimbursable: No
SUMMARY: This bill changes eligibility determination and redetermination for subsidized child care. Specifically, this bill:
- For purposes of establishing initial income eligibility for subsidized child care services, updates the state median income (SMI) threshold for entering families to 70% of the current SMI.
- For purposes of establishing ongoing income eligibility for subsidized child care services, updates the income threshold at which families exit to 85% of the current SMI.
- Guarantees eligibility for child care for 12 months upon receiving a child care subsidy.
- Eliminates the required interim reporting during the 12 month eligibility period unless family income exceeds 86% SMI or the initial certification is on the basis of seeking employment, in which case the family must report at six months.
FISCAL EFFECT:
- Unknown, potentially major costs to the California Department of Education (CDE), estimated in the range of $1 million to $5 million annually, due to increased caseload for CalWORKs stages 2 and 3 childcare. With existing data we are unable to identify the percentage of children leaving childcare due to loss of eligibility. This estimate assumes between 2% and 10% of the existing number of children leaving childcare each month would instead continue childcare under this bill.
- Administrative costs to CDE of approximately $40,000 in FY 2016-17 and $23,000 in FY 2017-18 to update regulations.
COMMENTS:
- Purpose. This bill brings the State into compliance with the newly authorized federal Child Care and Development Block Grant which brought about a number of changes, including establishing a 12-month eligibility redetermination period for families, regardless of changes in income and other criteria.
According to the author, "In California, burdensome reporting rules cause eligible families to churn between child care programs and long waiting lists for the programs. Churning disrupts children’s school readiness and development; makes it impossible for child care providers to balance ledgers or plan for quality investments; and burdens employers and education providers to sign off on endless paperwork. There is broad consensus among child care administrators, advocates, and parents that the state’s current reporting rules are harmful, and that establishing more stability within the child care system will create better outcomes for children.”
- Background. California offers subsidized child care to parents participating in CalWORKs and to families transitioning off and no longer receiving aid. This child care is offered in three “stages”; DSS administers Stage 1, and CDE administers Stages 2 and 3. CDE also administers non-CalWORKs child care. Families are typically eligible for subsidized child care if their income is less than 70% of the 2007-08 State Median Income (about $42,000 per year for a family of 3), if the parents have a need related to work, training, or education, and if the children are up to 12 years old (or 21 years old for youth with exceptional needs).
Analysis Prepared by: Jennifer Swenson / APPR. / (916) 319-2081
Date of Hearing: April 12, 2016
ASSEMBLY COMMITTEE ON HUMAN SERVICES
Susan Bonilla, Chair
ABPCA Bill Id:AB 2150 (
Author:Santiago) – As Introduced Ver:February 17, 2016
SUBJECT: Subsidized child care and development services: eligibility periods
SUMMARY: Provides for changes to eligibility determination and redetermination for subsidized child care.
Specifically, this bill:
- Requires a family, upon establishing initial or ongoing eligibility for subsidized child care services, to:
- Be considered to meet all eligibility requirements for a period of not less than 12 months, unless the family established eligibility on the basis of seeking employment, as specified;
- Receive subsidized child care services for not less than 12 months prior to having their eligibility redetermined, unless the family established eligibility on the basis of seeking employment, as specified; and
- Not be required to report changes to income or other changes for at least 12 months, unless the family attains an income that exceeds the threshold for ongoing eligibility, as specified.
- Requires a family that establishes initial eligibility on the basis of seeking employment to receive services for not less than six months and further requires a family that establishes ongoing eligibility for subsidized child care to receive services for six additional months unless the family becomes otherwise eligible, as specified.
- Requires a family to report increases in income that exceed the threshold for ongoing income eligibility, as specified, and further requires the family’s ongoing eligibility to be redetermined at that time.
- Permits a family to, at any time, voluntarily report income or other changes for purposes of reducing a family’s fees, increasing a family’s subsidy, or extending the period of the family’s eligibility prior to redetermination.
- Specifies that, for purposes of establishing initial income eligibility for subsidized child care services, “income eligible” means that a family’s adjusted monthly income is at or below 70% of the state median income (SMI) based on the most recent data published by the United States Census Bureau for a family of the same size.
- Defines, for purposes of establishing ongoing income eligibility for subsidized child care services, “ongoing income eligible” to mean that a family’s adjusted monthly income is at or below 85% of the SMI based on the most recent data published by the United States Census Bureau for a family of the same size.
- Authorizes any family that receives first priority for subsidized child care services, as specified, to be exempt from family fees for up to 12 months.
- Makes technical amendments, including removing provisions that specify or refer to eligibility determination periods that conflict with the provisions contained in this bill.
EXISTING LAW:
- Establishes the Child Care and Development Services Act to provide child care and development services as part of a coordinated, comprehensive, and cost-effective system serving children from birth to 13 years old and their parents, and including a full range of supervision, health, and support services through full- and part-time programs. (EDC 8200 et seq.)
- Defines “child care and development services” to mean services designed to meet a wide variety of children’s and families’ needs while parents and guardians are working, in training, seeking employment, incapacitated, or in need of respite. (EDC 8208)
- States the intent of the Legislature that all families have access to child care and development services, through resource and referral where appropriate, and regardless of demographic background or special needs, and that families are provided the opportunity to attain financial stability through employment, while maximizing growth and development of their children, and enhancing their parenting skills through participation in child care and development programs. (EDC 8202)
- Requires the Superintendent of Public Instruction to administer general child care and development programs to include, among other things as specified, age- and developmentally-appropriate activities, supervision, parenting education and involvement, and nutrition. Further allows such programs to be designed to meet child-related needs identified by parents or guardians, as specified. (EDC 8240 and 8241)
- To allow for maximum parental choice, authorizes the operation of Alternative Payment Programs (APPs) and provision of alternative payments and support services to parents and child care providers by local government agencies or non-profit organizations that contract with CDE. (EDC 8220)
- Establishes rules and requirements for APPs and providers, as contracted agencies with CDE, to observe, including but not limited to accounting and auditing requirements, attendance monitoring requirements, referral requirements where applicable, and reimbursement and payment procedures. (EDC 8220 et seq.)
- Requires the Superintendent of Public Instruction to adopt rules and regulations regarding eligibility, enrollment, and priority of services. (EDC 8263)
- Requires the Superintendent to adopt rules, regulations, and guidelines to facilitate funding and reimbursement procedures for subsidized child care. (EDC 8269)
- Requires the Superintendent to establish a family fee schedule for subsidized child care, as specified, contingent on income and subject to a cap. (EDC 8273)
FISCAL EFFECT: Unknown.
COMMENTS:
Subsidized child care: Subsidized child care may be available to low-income families through a number of programs. Additionally, California offers State Preschool Programs to eligible three-and four-year-olds.
California offers subsidized child care to parents participating in CalWORKs and to families transitioning off of and no longer receiving aid. This child care is offered in three “stages”; DSS administers Stage 1, and CDE administers Stages 2 and 3. CDE also administers non-CalWORKs child care. The largest programs are: General Child Care, which includes contracted centers and family child care homes; the California State Preschool Program, which includes contracted centers and family child care homes for three- and four-year olds; and APPs, which provide vouchers that can be used to obtain child care in a center, family child care home, or from a license-exempt provider. Waitlists for non-CalWORKs child care are common.
Contracted providers are funded through the receipt of the Standard Reimbursement Rate (SRR) based on the number of children enrolled and the hours of care provided. Families may also be required to pay a family fee if they earn above a certain threshold income for their family size. The current SRR is $38.29 per child for a full day of care. Adjustment factors are applied to the SRR in some instances to reflect the increased cost of care for the different ages and needs of children.
The Regional Market Rate (RMR) survey calculates the market rates for child care in each of California’s 58 counties and uses these to establish maximum child care reimbursement rates for child care services for families in various APPs or other voucher child care programs. States are required to conduct a market rate survey every two years, but are not required to use the most recent survey to set rates. Reimbursement rates for licensed providers accepting vouchers are currently derived by applying a formula to the 2009 RMR. License-exempt providers are reimbursed at 65% of the Family Child Care Home ceilings. In Santa Clara County, for example, the full-time daily RMR for a preschool-age child in a child care center is $69.77. For that same child in a family child care home, the RMR is $57.88, and with a license-exempt provider, the RMR is $37.62.
Families are typically eligible for subsidized child care if their income is less than 70% of the 2007-08 State Median Income (about $42,000 per year for a family of 3), if the parents have a need related to work, training, or education, and if the children are up to 12 years old (or 21 years old for youth with exceptional needs). The following table shows current income ceilings by family size:
Family Size | Family Monthly Income | Family Yearly Income |
1-2 | $3,283 | $39,396 |
3 | $3,518 | $42,216 |
4 | $3,908 | $46,896 |
5 | $4,534 | $54,408 |
6 | $5,159 | $61,908 |
7 | $5,276 | $63,312 |
8 | $5,394 | $64,728 |
9 | $5,511 | $66,132 |
10 | $5,628 | $67,536 |
11 | $5,745 | $68,940 |
12 | $5,863 | $70,356 |
(Source: California Department of Education)
Families may be charged a “family fee” depending on their income. For a family of 3, for example, subsidized child care remains at no cost for families earning less than $1,950 per month. However, with incomes between $1,950 a month and the monthly income ceiling of $3,518, a family fee is charged, the amount of which increases with income, but never to surpass 10% of a family’s income. For a family of three with a monthly income of $1,950, the family fee per month for full-time care is $42; for a family of three earning $3,518 per month, this fee is $345.
Across the various subsidized child care programs, there are estimated to be over 195,000 slots (not including State Preschool). State Preschool contains over 157,000 additional slots.
Child Care and Development Block Grant (CCDBG): The federal Child Care and Development Block Grant Act of 2014 (P.L. 113-186) reauthorized the Child Care and Development Block Grant Act of 1990. This reauthorization brought about a number of changes aimed at addressing health and safety requirements, quality of care, and consumer and provider education.
One specific change adopted by this reauthorization establishes a 12-month eligibility redetermination period for families, regardless of changes in income (provided income does not exceed 85% of State median income, the maximum income ceiling allowable under federal law) or temporary changes in participation in work, training, or education activities.
Also, according to the federal Administration for Children and Families’ (ACF) Office of Child Care:
“The [CCDBG Act] specifies that a State must provide for a graduated phase-out of assistance for families whose income has increased at the time of re-determination, but still does not exceed the federal income limit of 85% of State Median Income (SMI). Providing a graduated phase-out promotes continuity by allowing for wage growth, a tapered transition out of the child care subsidy program, and supports long-term financial stability to help families get to a point where they no longer need the subsidy. Sudden withdrawal of support can destabilize and undermine a family’s pathway to financial stability.
ACF strongly encourages States and Territories to consider how to continue to support families through access to financial assistance for child care until they have achieved financial stability. Pending additional guidance from ACF, this could be achieved through policies such as establishing a second income eligibility threshold at re-determination (e.g., establishing a different eligibility threshold for families first applying for assistance and those already receiving assistance, sometimes called an ‘exit threshold’) or by granting a sustained period of continued assistance to the family before termination. The law allows the exit threshold to be set as high as 85% of SMI. States could adjust co-pays for families during this period to create a gradual shift in how families must adjust their budget to cover the full cost of care once they are no longer receiving a subsidy, but should consider how to do this in a way that minimizes paperwork and reporting burdens on working families.”
Need for this bill: According to the author:
“In California, burdensome reporting rules cause eligible families to churn between child care programs and long waiting lists for the programs. Churning disrupts children’s school readiness and development; makes it impossible for child care providers to balance ledgers or plan for quality investments; and burdens employers and education providers to sign off on endless paperwork.
There is broad consensus among child care administrators, advocates, and parents that the state’s current reporting rules are harmful, and that establishing more stability within the child care system will create better outcomes for children.”
The co-sponsors of this bill, Parent Voices and the Child Care Law Center, write the following in support of the bill:
“The intent of this bill is to promote continuous child care assistance for children and families for an extended period of time. Working low-income families often experience rapid and multiple changes in income and work-related activities. Retention of child care during a temporary hardship such as unemployment or extended illness alleviates stress on children and families and facilitates parents’ smooth transition back into the workforce. Stable child care is critical to strengthen parents’ ability to work, improve their prospects in the job market, and increase their earning potential. In addition, continuity creates the stable conditions children need for their healthy development and school-readiness. Research shows that children’s educational and developmental outcomes improve when they have continuity in their child care arrangements. Frequent changes in child care arrangements are associated with higher levels of stress and negative behavior in young children…
[This bill] is an extraordinary opportunity to remove unjust and unjustified, red-tape reporting rules that cause eligible families to churn in and out of child care programs; put their jobs at risk; disrupt children’s school readiness and development; force them to turn down job promotions, make it impossible for child care providers to balance ledgers or plan for quality investments while accepting subsidized children; and burden employers and education providers who are required to sign off on endless paperwork.”
REGISTERED SUPPORT / OPPOSITION:
Support
A Stronger California Advocates Network
Advancement Project
American Federation of State, County and Municipal Employees (AFSCME), AFLCIO
Butte County Child Abuse Prevention Council
California Alternative Payment Program Association (CAPPA)
California Child Development Administrators Association (CCDAA)
California Community College CalWORKs Association (CCC CWA)
California Work & Family Coalition
Center for Community Change Action
Child Care Alliance of Los Angeles
Child Care Law Center –co-sponsor
Child Care Resource Center
Children Now
Children’s Council of San Francisco
Choices for Children
Coalition of California Welfare Rights Organizations, Inc.
Community Action Partnership of San Luis Obispo County, Child Care Resource Connection
Community Child Care Council (4Cs) of Alameda County
Equal Rights Advocates (ERA)
Marin Child Care Council
Marin Family Child Care Association
Mimi and Peter Hass Fund
National Association of Social Workers, CA Chapter (NASW-CA)
National Council of Jewish Women-CA (NCJW-CA)
Oakland Unified School District
Our Family Coalition
Parent Voices – co-sponsor
Raising California Together
Services Employees International Union (SEIU)
The Friends Committee on Legislation (FCLCA)
The Young Women’s Freedom Center
UDW/AFSCME Local 3930
W. Haywood Burns Institute
Western Center on Law and Poverty
Women’s Foundation of California
2 individuals
Opposition
None on file.
Analysis Prepared by: Daphne Hunt / HUM. S. / (916) 319-2089
Discussed in Hearing
Assembly Floor
Assembly Floor
Assembly Standing Committee on Human Services
Bill Author
Bill Co-Author(s):