AB 233: Child care and development services: alternative payment programs: reimbursement rates.
- Session Year: 2015-2016
- House: Assembly
- Latest Version Date: 2015-05-06
The Child Care and Development Services Act has a purpose of providing a comprehensive, coordinated, and cost-effective system of child care and development services for children from infancy to 13 years of age and their parents, including a full range of supervision, health, and support services through full- and part-time programs. The act requires the State Department of Education to contract with local contracting agencies for alternative payment programs that are intended to allow for maximum parental choice in child care. The act, to provide maximum parental choice, authorizes alternative payment programs to include certain things, including a subsidy that follows the family from one provider to another, as provided. Existing law authorizes funds appropriated for the act to be used for alternative payment programs to allow for maximum parental choice, as provided.
This bill would, to provide maximum parental choice and access, instead require alternative payment programs to include these certain things, and to also include an eligibility determination process of every 12 months. things. The bill would authorize funds appropriated for the act to also be used to allow for maximum parental access, as provided.
The act requires certain child care providers to submit to the alternative payment program a monthly attendance record or invoice, as provided, and requires the record or invoice to be maintained by the child care provider in the unaltered original form in which it was created.
This bill would delete the requirement that the child care provider maintain the record or invoice in the unaltered original form in which it was created.
The act requires an alternative payment program to verify provider rates no less frequently than once a year, as provided, and requires the department to develop regulations for addressing discrepancies in provider rate levels identified through this verification process. The act requires a child care provider to post the providers rates and discounts or scholarship policies, if any.
This bill would delete these requirements. this requirement.
The act requires, when making referrals, every agency operating both a direct service program and an alternative payment program to provide at least 4 referrals, as provided, to a family.
This bill would instead require a resource and referral agency to provide at least 4 referrals to a family, as provided.
The act provides that a family enrolled in a state or federally funded child care and development program whose services would otherwise be terminated, as provided, may continue to receive child development services, as provided.
This bill would also require that 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 subsequent to enrollment, a child be deemed eligible for services for a period of 12 months.
The act requires a physical examination and evaluation, including age-appropriate immunization, before, or within 6 weeks of, enrollment, as provided. Existing law requires a child to be temporarily excluded from the program if there is good cause to believe the child is suffering from a recognized contagious or infectious disease, as provided.
This bill would delete this requirement. instead specify that if the child care provider has good cause to believe that a child is suffering from a recognized contagious or infectious disease, the child would be temporarily excluded from the program, as provided.
The act requires the Superintendent to adopt rules, regulations, and guidelines to facilitate the funding and reimbursement procedures.
This bill would require the Superintendent to adopt these rules, regulations, and guidelines to facilitate the funding and reimbursement procedures for contractors operating centers, family child care homes, or both.
The act requires the Superintendent to establish a fee schedule for families using preschool and child care and development services.
This bill would authorize the contractor to require a child care provider to collect the family fee, as deducted from the child care provider reimbursement, or to collect the family fee amount directly from the parent. The bill would authorize specified contractors to develop a written policy that directs parents to pay family fees directly to the child care provider, as provided.
The Child Care and Development Services Act has a purpose of providing a comprehensive, coordinated, and cost-effective system of child care and development services for children from infancy to 13 years of age and their parents, including a full range of supervision, health, and support services through full- and part-time programs. The act requires the State Department of Education to contract with local contracting agencies for alternative payment programs that are intended to allow for maximum parental choice in child care. The act, to provide maximum parental choice, authorizes alternative payment programs to include certain things, including a subsidy that follows the family from one provider to another, as provided. Existing law authorizes funds appropriated for the act to be used for alternative payment programs to allow for maximum parental choice, as provided.
This bill would, to provide maximum parental choice and access, authorize instead require alternative payment programs to include these certain things, and to also include an eligibility determination process of not less than once every 12 months. The bill would authorize funds appropriated for the act to also be used to allow for maximum parental access, as provided.
The act requires certain child care providers to submit to the alternative payment program a monthly attendance record or invoice, as provided, and requires the record or invoice to be maintained by the child care provider in the unaltered original form in which it was created. The act requires the alternative payment program to reimburse child care providers based on specified criteria, including based on hours of service. The act prohibits contractors from being required to track absences.
This bill would delete the requirement that the child care provider maintain the record or invoice in the unaltered original form in which it was created. The bill would delete the requirement that alternative payment programs reimburse child care providers based on the specified criteria. The bill would delete the prohibition on contractors from being required to track absences.
The act requires an alternative payment program to reimburse a licensed child care provider for child care of a subsidized child based on the rate charged by the provider to nonsubsidized families, if any, for the same services, or the rates established by the providers for prospective nonsubsidized families. The act requires a licensed child care provider to submit to the alternative payment program a copy of the providers rate sheet listing the rate charged, among other things.
This bill would instead require an alternative payment program to reimburse a licensed child care provider for child care of a subsidized child based on the rate charged by the provider to nonsubsidized families. The bill would delete the requirement for the licensed child care provider to submit to the alternative payment program a copy of the providers rate sheet, among other things.
The act requires an alternative payment program to verify provider rates no less frequently than once a year, as provided, and requires the department to develop regulations for addressing discrepancies in provider rate levels identified through this verification process. The act requires a child care provider to post the providers rates and discounts or scholarship policies, if any.
This bill would delete these requirements and would require an alternative payment program to develop a rate verification process. requirements.
The act requires, when making referrals, every agency operating both a direct service program and an alternative payment program to provide at least 4 referrals, as provided, to a family.
This bill would delete this requirement.
The act authorizes alternative payment programs and providers operating or providing services to maintain records in electronic format only if the original documents were created in electronic format.
This bill would authorize alternative payment programs and providers to maintain records in electronic format regardless of whether they were created in electronic format. The bill would require alternative payment programs to create and maintain specified records, including parental job verification records.
The act requires the Superintendent of Public Instruction to adopt rules and regulations that do certain things, including provide for a contract monitoring system, specify adequate standards of agency performance, set forth standards for department site visits to contracting agencies, and authorize the department to develop a process that requires every contracting agency to recompete for continued funding no less frequently than every 5 years.
This bill would delete the requirement that the Superintendent adopt rules and regulations relating to the above provisions.
This bill would instead require a resource and referral agency to provide at least 4 referrals to a family, as provided.
The act provides that a family enrolled in a state or federally funded child care and development program whose services would otherwise be terminated, as provided, may continue to receive child development services, as provided.
This bill would instead also require that 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.
Existing law provides that, if the basis of need as stated on the application for services is seeking employment, the parents period of eligibility for child care and development services is limited to 60 working days during the contract period. The act authorizes the Superintendent to extend this period for an additional 60 working days, as provided.
This bill would delete the Superintendents authority to make this extension.
The act requires the Superintendent to implement a plan that, among other things, establishes reasonable standards and assigned reimbursement rates, as provided, and requires the Superintendent to confer with applicant agencies when establishing the standards and rates.
This bill would require the applicant agencies to establish, as applicable, full-time, part-time, and hourly rates and to establish reimbursement rates that best meet the needs of the community, as provided.
The act authorizes the Superintendent to establish regulations concerning conditions of service and hours of enrollment for children in the programs.
This bill would delete this authorization, among other changes.
The act requires a physical examination and evaluation, including age-appropriate immunization, before, or within 6 weeks of, enrollment, as provided.
This bill would delete this requirement.
The act requires the Superintendent to adopt rules, regulations, and guidelines to facilitate the funding and reimbursement procedures.
This bill would require the Superintendent to adopt these rules, regulations, and guidelines to facilitate the funding and reimbursement procedures for contractors operating centers, family child care homes, or both, as well as for contractors who do not operate a center, family child care home, or both. The bill would require the contractors who do not operate a center, family child care home, or both to establish a specified rate reimbursement structure to meet a certified need for child care, as provided. both.
The act requires the Superintendent to establish a fee schedule for families using preschool and child care and development services.
This bill would require the amount of the family fee to be deducted from the reimbursement to a provider.
The act requires the department, in consultation with the State Department of Social Services and with fraud investigation experts, as provided, to perform an error rate study to estimate the percentage of errors relating to child care and development services. The act requires the department to develop recommendations for the prevention and elimination of child care fraud and programmatic errors and the identification and collection of child care overpayments. The act requires the department to report its recommendations to the respective policy and fiscal committees of the Legislature by April 1, 2005.
This bill would delete these requirements.
This bill would also make conforming and nonsubtantive changes.
This bill would authorize the contractor to require a child care provider to collect the family fee, as deducted from the child care provider reimbursement, or to collect the family fee amount directly from the parent. The bill would authorize specified contractors to develop a written policy that directs parents to pay family fees directly to the child care provider, as provided.
The Child Care and Development Services Act has a purpose of providing a comprehensive, coordinated, and cost-effective system of child care and development services for children from infancy to 13 years of age and their parents, including a full range of supervision, health, and support services through full- and part-time programs. The act requires the State Department of Education to contract with local contracting agencies for alternative payment programs that are intended to allow for maximum parental choice in child care. The act, to provide maximum parental choice, authorizes alternative payment programs to include certain things, including a subsidy that follows the family from one provider to another, as provided.
This bill would, to provide maximum parental choice and access, authorize alternative payment programs to also include an eligibility determination process of not less than once every 12 months.
The act requires certain child care providers to submit to the alternative payment program a monthly attendance record or invoice, as provided, and requires the record or invoice to be maintained by the child care provider in the unaltered original form in which it was created. The act requires the alternative payment program to reimburse child care providers based on specified criteria, including based on hours of service. The act prohibits contractors from being required to track absences.
This bill would delete the requirement that the child care provider maintain the record or invoice in the unaltered original form in which it was created. The bill would delete the requirement that alternative payment programs reimburse child care providers based on the specified criteria. The bill would delete the prohibition on contractors from being required to track absences.
The act requires an alternative payment program to reimburse a licensed child care provider for child care of a subsidized child based on the rate charged by the provider to nonsubsidized families, if any, for the same services, or the rates established by the providers for prospective nonsubsidized families. The act requires a licensed child care provider to submit to the alternative payment program a copy of the providers rate sheet listing the rate charged, among other things.
This bill would instead require an alternative payment program to reimburse a licensed child care provider for child care of a subsidized child based on the rate charged by the provider to nonsubsidized families. The bill would delete the requirement for the licensed child care provider to submit to the alternative payment program a copy of the providers rate sheet, among other things.
The act requires an alternative payment program to verify provider rates no less frequently than once a year, as provided, and requires the department to develop regulations for addressing discrepancies in provider rate levels identified through this verification process.
This bill would delete these requirements and would require an alternative payment program to develop a rate verification process.
The act requires, when making referrals, every agency operating both a direct service program and an alternative payment program to provide at least 4 referrals, as provided, to a family.
This bill would delete this requirement.
The act authorizes alternative payment programs and providers operating or providing services to maintain records in electronic format only if the original documents were created in electronic format.
This bill would authorize alternative payment programs and providers to maintain records in electronic format regardless of whether they were created in electronic format. The bill would require alternative payment programs to create and maintain specified records, including parental job verification records.
The act requires the Superintendent of Public Instruction to adopt rules and regulations that do certain things, including provide for a contract monitoring system, specify adequate standards of agency performance, set forth standards for department site visits to contracting agencies, and authorize the department to develop a process that requires every contracting agency to recompete for continued funding no less frequently than every 5 years.
This bill would delete the requirement that the Superintendent adopt rules and regulations relating to the above provisions.
The act provides that a family enrolled in a state or federally funded child care and development program whose services would otherwise be terminated, as provided, may continue to receive child development services, as provided.
This bill would instead require that 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.
Existing law provides that, if the basis of need as stated on the application for services is seeking employment, the parents period of eligibility for child care and development services is limited to 60 working days during the contract period. The act authorizes the Superintendent to extend this period for an additional 60 working days, as provided.
This bill would delete the Superintendents authority to make this extension.
The act requires the Superintendent to implement a plan that, among other things, establishes reasonable standards and assigned reimbursement rates, as provided, and requires the Superintendent to confer with applicant agencies when establishing the standards and rates.
This bill would require the applicant agencies to establish, as applicable, full-time, part-time, and hourly rates and to establish reimbursement rates that best meet the needs of the community, as provided.
The act authorizes the Superintendent to establish regulations concerning conditions of service and hours of enrollment for children in the programs.
This bill would delete this authorization, among other changes.
The act requires the Superintendent to adopt rules, regulations, and guidelines to facilitate the funding and reimbursement procedures.
This bill would require the Superintendent to adopt these rules, regulations, and guidelines to facilitate the funding and reimbursement procedures for contractors operating centers, family child care homes, or both, as well as for contractors who do not operate a center, family child care home, or both. The bill would require the contractors who do not operate a center, family child care home, or both to establish a specified rate reimbursement structure to meet a certified need for child care, as provided.
The act requires the Superintendent to establish a fee schedule for families using preschool and child care and development services.
This bill would require the amount of the family fee to be deducted from the reimbursement to a provider.
The act requires the department, in consultation with the State Department of Social Services and with fraud investigation experts, as provided, to perform an error rate study to estimate the percentage of errors relating to child care and development services. The act requires the department to develop recommendations for the prevention and elimination of child care fraud and programmatic errors and the identification and collection of child care overpayments. The act requires the department to report its recommendations to the respective policy and fiscal committees of the Legislature by April 1, 2005.
This bill would delete these requirements.
This bill would also make conforming and nonsubtantive changes.
(a)Upon the approval of the State Department of Education, funds appropriated for the purposes of this chapter may be used for alternative payment programs to allow for maximum parental choice and access. Various methods of reimbursement for parental costs for child care may be utilized. All payment arrangements shall conform to the eligibility criteria and the parent fee schedule established pursuant to Sections 8263 and 8265.
(b)To provide for maximum parental choice and access, alternative payment programs shall include the following:
(1)An eligibility determination process of every 12 months.
(2)
(1)A subsidy that follows the family from one provider to another within a given alternative payment program.
(3)
(2)Choices, when possible, among hours of service including before and after school, evenings, weekends, and split shifts.
(4)
(3)Child care and development services according to parental choice, including use of family day care homes, general center based programs, and other state-funded programs to the extent that those programs exist in the general service area and are in conformity with the purposes and applicable laws for which those programs were established, but excluding state preschool programs.
SEC. 2.Section 8221.5 of the Education Code is amended to read:8221.5.(a)Child care providers authorized to provide services pursuant to this article shall submit to the alternative payment program a monthly attendance record or invoice for each child who received services that, at a minimum, documents the dates and actual times care was provided each day, including the time the child entered and the time the child left care each day. The information shall be documented on a daily basis.
(b)The monthly attendance record or invoice shall, at a minimum, be signed by the parent or guardian of the child receiving services and the child care provider once per month to attest that the childs attendance is accurately reflected. The verification of attendance shall be made by signature at the end of each month of care and under penalty of perjury by both the parent or guardian of the child receiving services and the child care provider.
(c)The monthly attendance record or invoice shall be maintained by the child care provider.
(d)The alternative payment program shall accept the monthly attendance record or invoice as documentation of the hours of care provided if the attendance record or invoice includes adequate information documented on a daily basis, including, at a minimum, the dates and actual times care was provided each day, including the time the child entered and the time the child left care each day. The alternative payment program shall reimburse child care providers based upon the following criteria:
(1)The hours of service provided that are broadly consistent with certified hours of need.
(2)For families with variable schedules, the actual days and hours of attendance, up to the maximum certified hours.
(3)For license-exempt providers that provide part-time services, the actual days and hours of attendance, up to the maximum certified hours.
(e)For purposes of this section, a monthly attendance record or invoice is defined as documentation that includes, at a minimum, the name of the child receiving services, the dates and actual times care was provided each day, including the time the child entered and the time the child left care each day, that is signed under penalty of perjury by both the parent or guardian and the child care provider, attesting that the information provided is accurate.
SEC. 3.Section 8222 of the Education Code is amended to read:8222.(a)Payments made by alternative payment programs shall not exceed the applicable market rate ceiling. Alternative payment programs may expend more than the standard reimbursement rate for a particular child. However, the aggregate payments for services reimbursed by the agency during the contract year shall not exceed the assigned reimbursable amount as established by the contract for the year. An agency shall not make payments in excess of the rate charged to full-cost families. This section does not preclude alternative payment programs from using the average daily enrollment adjustment factor for children with exceptional needs as provided in Section 8265.5.
(b)Alternative payment programs shall reimburse licensed child care providers in accordance with a biennial market rate survey pursuant to Section 8447, at a rate not to exceed the ceilings established pursuant to Section 8357.
(c)An alternative payment program shall reimburse a licensed provider for child care of a subsidized child based on the rate charged by the provider to nonsubsidized families, if any, for the same services, or the rates established by the provider for prospective nonsubsidized families. A licensed child care provider shall submit to the alternative payment program a copy of the providers rate sheet listing the rates charged, and the providers discount or scholarship policies, if any, along with a statement signed by the provider confirming that the rates charged for a subsidized child are equal to or less than the rates charged for a nonsubsidized child.
(d)An alternative payment program shall maintain a copy of the rate sheet and the confirmation statement.
(e)A licensed child care provider shall submit to the local resource and referral agency a copy of the providers rate sheet listing rates charged, and the providers discount or scholarship policies, if any, and shall self-certify that the information is correct.
(f)A licensed child care provider may alter rate levels for subsidized children once per year and shall provide the alternative payment program and resource and referral agency with the updated information pursuant to subdivisions (c) and (e), to reflect any changes. An alternative payment program may implement an altered rate level once per year.
(g)An alternative payment program shall verify provider rates no less frequently than once a year by randomly selecting 10 percent of licensed child care providers serving subsidized families. The purpose of this verification process is to confirm that rates reported to the alternative payment programs reasonably correspond to those reported to the resource and referral agency and the rates actually charged to nonsubsidized families for equivalent levels of services. It is the intent of the Legislature that the privacy of nonsubsidized families shall be protected in implementing this subdivision.
(h)The department shall develop regulations for addressing discrepancies in the provider rate levels identified through the rate verification process in subdivision (g).
SEC. 4.Section 8225 of the Education Code is amended to read:8225.When making referrals, a resource and referral agency shall provide at least four referrals, at least one of which shall be a provider over which the agency has no fiscal or operational control, as well as information to a family on the familys ability to choose a license exempt license-exempt provider.
SEC. 5.Section 8263 of the Education Code is amended to read:8263.(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, or emergency shelter as (i) a recipient of protective services or (ii) being neglected, abused, or exploited, or at risk of neglect, abuse, or exploitation, 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)Subsequent to enrollment, a child shall be deemed eligible for services for a period of 12 months.
(b)
(c)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 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)
(d)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. These families shall be considered eligible for services for 12 months from time of initial, or annual, eligibility determination. 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)
(e)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 to all contractors 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 or areas with disproportionately high numbers of seasonal agricultural jobs, or both.
(f)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 the child care provider has 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)
(g)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)
(h)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)
(i)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)
(j)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. 6.Section 8269 of the Education Code is amended to read:8269.The Superintendent shall adopt rules, regulations, and guidelines to facilitate the funding and reimbursement procedures for contractors operating centers, family child care homes, or both, required by this chapter.
SEC. 7.Section 8273 of the Education Code is amended to read:8273.(a)The Superintendent shall establish a fee schedule for families using preschool and child care and development services pursuant to this chapter, including families receiving services pursuant to paragraph (1) of subdivision (b) of Section 8263. It is the intent of the Legislature that the new fee schedule shall be simple and easy to implement.
(b)The family fee schedule shall retain a flat monthly fee per family. The schedule shall differentiate between fees for part-time care and full-time care.
(c)A contractor operating pursuant to Section 8220 may develop a written policy that directs parents to pay family fees directly to the child care provider.
(1)The contractor shall provide written notification of the assessed fee to both the parent and the child care provider.
(2)The contractor shall deduct the amount of the family fee assessed to the parent when calculating the payment due to the child care provider.
(3)The contractor shall report its payment to the child care provider plus the assessed family fees as an expense on the attendance and expenditure reports as required by regulation.
(4)A contractor with a written policy directing parents to pay family fees directly to the child care provider are exempt from all of the following:
(A)Requiring families to pay family fees in advance of child care services.
(B)Requiring any record or proof that the family paid any applicable family fees to the child care provider.
(C)Notification of delinquent fees or termination for delinquent fees.
(d)The contractor is authorized to require child care providers to collect the family fee, which shall be deducted from the reimbursement to the child care provider, or to collect the family fee amount directly from the parent.
(e)Using the most recently approved family fee schedule pursuant to subdivision (f) of Section 8447, families shall be assessed a flat monthly fee based on income, certified family need for full-time or part-time care services, and enrollment, and shall not be based on actual attendance. A recalculation of a family fee shall not occur if attendance varies from enrollment unless a change in need for care is assessed.
(f)The Superintendent shall design the new family fee schedule based on the state median income data that was in use for the 200708 fiscal year, adjusted for family size. The revised family fee schedule shall begin at income levels at which families currently begin paying fees. The revised fees shall not exceed 10 percent of the familys monthly income. The Superintendent shall first submit the adjusted fee schedule to the Department of Finance for approval.
(g)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 (42 U.S.C. Sec. 1381 et seq.) and Chapter 3 (commencing with Section 12000) of Part 3 of Division 9 of the Welfare and Institutions Code shall not be included in total countable income for purposes of determining the amount of the family fee.
(h)Family fees shall be assessed at initial enrollment and reassessed at update of certification or recertification.
(i)It is the intent of the Legislature that the new family fees shall be cost neutral to the state and generate roughly the same amount of revenue as was generated under the previous family fee schedule.
(a)Upon the approval of the State Department of Education, funds appropriated for the purposes of this chapter may be used for alternative payment programs to allow for maximum parental choice and access. Various methods of reimbursement for parental costs for child care may be utilized. All payment arrangements shall conform to the eligibility criteria and the parent fee schedule established pursuant to Sections 8263 and 8265.
(b)To provide for maximum parental choice and access, alternative payment programs may shall include the following:
(1)An eligibility determination process of not less than once every 12 months.
(2)A subsidy that follows the family from one provider to another within a given alternative payment program.
(3)Choices, when possible, among hours of service including before and after school, evenings, weekends, and split shifts.
(4)Child care and development services according to parental choice, including use of family day care homes, general center based programs, and other state-funded programs to the extent that those programs exist in the general service area and are in conformity with the purposes and applicable laws for which those programs were established, but excluding state preschool programs.
SEC. 2.Section 8221.5 of the Education Code is amended to read:8221.5.(a)Child care providers authorized to provide services pursuant to this article shall submit to the alternative payment program a monthly attendance record or invoice for each child who received services that, at a minimum, documents the dates and actual times care was provided each day, including the time the child entered and the time the child left care each day. The information shall be documented on a daily basis.
(b)The monthly attendance record or invoice shall, at a minimum, be signed by the parent or guardian of the child receiving services and the child care provider once per month to attest that the childs attendance is accurately reflected. The verification of attendance shall be made by signature at the end of each month of care and under penalty of perjury by both the parent or guardian of the child receiving services and the child care provider.
(c)The monthly attendance record or invoice shall be maintained by the child care provider . provider.
(d)The alternative payment program shall accept the monthly attendance record or invoice as documentation of the hours of care provided if the attendance record or invoice includes adequate information documented on a daily basis, including, at a minimum, the dates and actual times care was provided each day, including the time the child entered and the time the child left care each day. The alternative payment program shall reimburse child care providers based upon the following criteria:
(1)The hours of service provided that are broadly consistent with certified hours of need.
(2)For families with variable schedules, the actual days and hours of attendance, up to the maximum certified hours.
(3)For license-exempt providers that provide part-time services, the actual days and hours of attendance, up to the maximum certified hours.
(e)For purposes of this section, a monthly attendance record or invoice is defined as documentation that includes, at a minimum, the name of the child receiving services, the dates and actual times care was provided each day, including the time the child entered and the time the child left care each day, that is signed under penalty of perjury by both the parent or guardian and the child care provider, attesting that the information provided is accurate.
SEC. 3.Section 8222 of the Education Code is amended to read:8222.(a)Payments made by alternative payment programs shall not exceed the applicable market rate ceiling. Alternative payment programs may expend more than the standard reimbursement rate for a particular child. However, the aggregate payments for services purchased reimbursed by the agency during the contract year shall not exceed the assigned reimbursable amount as established by the contract for the year. An agency shall not make payments in excess of the rate charged to full-cost families. This section does not preclude alternative payment programs from using the average daily enrollment adjustment factor for children with exceptional needs as provided in Section 8265.5.
(b)Alternative payment programs shall reimburse licensed child care providers in accordance with a biennial market rate survey pursuant to Section 8447, at a rate not to exceed the ceilings established pursuant to Section 8357.
(c)An alternative payment program shall reimburse a licensed provider for child care of a subsidized child based on the rate charged by the provider to nonsubsidized families. families, if any, for the same services, or the rates established by the provider for prospective nonsubsidized families. A licensed child care provider shall submit to the alternative payment program a copy of the providers rate sheet listing the rates charged, and the providers discount or scholarship policies, if any, along with a statement signed by the provider confirming that the rates charged for a subsidized child are equal to or less than the rates charged for a nonsubsidized child.
(d)An alternative payment program shall maintain a copy of the rate sheet and the confirmation statement.
(d)
(e)A licensed child care provider shall submit to the local resource and referral agency a copy of the providers rate sheet listing rates charged, and the providers discount or scholarship policies, if any, and shall self-certify that the information is correct.
(e)
(f)A licensed child care provider may alter rate levels for subsidized children once per year and shall provide the alternative payment program and resource and referral agency with the updated information pursuant to subdivisions (c) and (e), to reflect any changes. An alternative payment program may implement an altered rate level once per year.
(f)A licensed child care provider shall post in a prominent location adjacent to the providers license at the child care facility the providers rates and discounts or scholarship policies, if any.
(g)An alternative payment program shall develop a rate verification process.
SEC. 4.Section 8225 of the Education Code is repealed. SEC. 5.Section 8227.3 of the Education Code is amended to read:8227.3.(a)Alternative payment programs and providers operating or providing services pursuant to this article may maintain records in electronic format.
(b)Alternative payment programs shall create and maintain the following records:
(1)Parental job verification records.
(2)Parent income verification.
(3)Parent school or training verifications and attendance records.
(c)Pursuant to Section 33421, the original records shall be retained by each contractor for at least five years, or, where an audit has been requested by a state agency, until the date the audit is resolved, whichever is longer.
(d)This section does not require an alternative payment program or provider to create records electronically.
SEC. 6.Section 8261 of the Education Code is amended to read:8261.(a)The Superintendent shall adopt rules and regulations pursuant to this chapter. The rules and regulations shall include, but not be limited to, provisions that do all of the following:
(1)Provide clear guidelines for the selection of agencies when child development contracts are let, including, but not limited to, specification that an agency headquartered in the proposed service area on January 1, 1985, will be given priority for a new contract in that area, unless the department makes a written determination that (A) the agency is not able to deliver the level of services specified in the request for proposal, or (B) the department has notified the agency that it is not in compliance with the terms of its contract.
(2)Establish reporting requirements for service reports, including provisions for varying the frequency with which these reports are to be submitted on the basis of agency performance.
(3)Specify standards for withholding payments to agencies that fail to submit required fiscal reports.
(b)The Superintendent shall consult with the State Department of Social Services with respect to rules and regulations adopted relative to the disbursal of federal funds under Title XX of the federal Social Security Act.
(c)For purposes of expediting the implementation of state or federal legislation to expand child care services, the Superintendent may waive (1) the regulations regarding the point qualifications for, and the process and scoring of, interviews of contract applicants pursuant to Section 18002 of Title 5 of the California Code of Regulations, or (2) the time limitations for scheduling and notification of appeal hearings and their results pursuant to Section 18003 of Title 5 of the California Code of Regulations. The Superintendent shall ensure that the appeal hearings provided for in Section 18003 of Title 5 of the California Code of Regulations are conducted in a timely manner.
(d)(1)Child care and development programs operated under contract from funds made available pursuant to the federal Child Care and Development Fund, shall be administered according to Division 19 (commencing with Section 17906) of Chapter 1 of Title 5 of the California Code of Regulations, unless provisions of these regulations conflict with federal regulations. If state and federal regulations conflict, the federal regulations shall apply unless a waiver of federal regulations is authorized.
(2)For purposes of this section, Child Care and Development Fund has the same meaning as in Section 98.2 of Title 45 of the Code of Federal Regulations.
SEC. 4.Section 8225 of the Education Code is amended to read:8225.When making referrals, every agency operating both a direct service program and an alternative payment program a resource and referral agency shall provide at least four referrals, at least one of which shall be a provider over which the agency has no fiscal or operational control, as well as information to a family on the familys ability to choose a license exempt provider.
SEC. 7.SEC. 5.Section 8263 of the Education Code is amended to read:8263.(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, or emergency shelter as (i) a recipient of protective services or (ii) being neglected, abused, or exploited, or at risk of neglect, abuse, or exploitation, 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. These families shall be considered eligible for services for 12 months from time of initial, or annual, eligibility determination. 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.
(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 to all contractors 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 or areas with disproportionately high numbers of seasonal agricultural jobs, or both.
(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)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. 8.Section 8265 of the Education Code is amended to read:8265.(a)The Superintendent shall implement a plan that establishes reasonable standards and assigned reimbursement rates, which vary with the length of the program year and the hours of service.
(1)Parent fees shall be used to pay reasonable and necessary costs for providing additional services.
(2)When establishing standards and assigned reimbursement rates, the Superintendent shall confer with applicant agencies. Applicant agencies shall comply with both of the following:
(A)Applicant agencies shall establish, as applicable, full-time, part-time, and hourly rates.
(B)Applicant agencies shall establish reimbursement rates that best meet the needs of the community, that are consistent with certified hour of care, and that do not exceed market rate ceilings.
(3)The reimbursement system, including standards and rates, shall be submitted to the Joint Legislative Budget Committee.
(b)The standard reimbursement rate shall be nine thousand twenty-four dollars and seventy-five cents ($9,024.75) per unit of average daily enrollment for a 250-day year, and commencing with the 201516 fiscal year, shall be increased by the cost-of-living adjustment granted by the Legislature annually pursuant to Section 42238.15.
(c)The plan shall provide for adjusting reimbursement on a case-by-case basis, in order to maintain service levels for agencies currently at a rate less than the standard reimbursement rate. Assigned reimbursement rates shall be increased only on the basis of one or more of the following:
(1)Loss of program resources from other sources.
(2)Need of an agency to pay the same child care rates as those prevailing in the local community.
(3)Increased costs directly attributable to new or different regulations.
(4)(A)Documented increased costs necessary to maintain the prior years level of service and ensure the continuation of threatened programs.
(B)Child care agencies funded at the lowest rates shall be given first priority for increases.
(d)The plan shall provide for expansion of child development programs at no more than the standard reimbursement rate for that fiscal year.
(e)The Superintendent may reduce the percentage of reduction for a public agency that satisfies any of the following:
(1)Serves more than 400 children.
(2)Has in effect a collective bargaining agreement.
(3)Has other extenuating circumstances that apply, as determined by the Superintendent.
SEC. 9.SEC. 6.Section 8269 of the Education Code is amended to read:8269.(a)The Superintendent shall adopt rules, regulations, and guidelines to facilitate the funding and reimbursement procedures, procedures for contractors operating centers, family child care homes, or both, required by this chapter.
(b)(1)The Superintendent shall adopt rules, regulations, and guidelines to facilitate the funding and reimbursement procedures for contractors that do not operate a center, a family child care home, or both.
(2)Contractors not operating a center, a family child care home, or both, shall establish, as applicable, a full-time, part-time, and hourly rate reimbursement structure to meet a certified need for child care.
(3)Reimbursement to the provider shall be the amount the provider charges unsubsidized families for the same hours of child care, or the maximum subsidy amount.
SEC. 10.SEC. 7.Section 8273 of the Education Code is amended to read:8273.(a)The Superintendent shall establish a fee schedule for families using preschool and child care and development services pursuant to this chapter, including families receiving services pursuant to paragraph (1) of subdivision (b) of Section 8263. It is the intent of the Legislature that the new fee schedule shall be simple and easy to implement.
(b)The family fee schedule shall retain a flat monthly fee per family. The schedule shall differentiate between fees for part-time care and full-time care.
(c)The amount of a family fee shall be deducted from the reimbursement to a provider.
(c)A contractor operating pursuant to Section 8220 may develop a written policy that directs parents to pay family fees directly to the child care provider.
(1)The contractor shall provide written notification of the assessed fee to both the parent and the child care provider.
(2)The contractor shall deduct the amount of the family fee assessed to the parent when calculating the payment due to the child care provider.
(3)The contractor shall report its payment to the child care provider plus the assessed family fees as an expense on the attendance and expenditure reports as required by regulation.
(4)A contractor with a written policy directing parents to pay family fees directly to the child care provider are exempt from all of the following:
(A)Requiring families to pay family fees in advance of child care services.
(B)Requiring any record or proof that the family paid any applicable family fees to the child care provider.
(C)Notification of delinquent fees or termination for delinquent fees.
(d)The contractor is authorized to require child care providers to collect the family fee, which shall be deducted from the reimbursement to the child care provider, or to collect the family fee amount directly from the parent.
(d)
(e)Using the most recently approved family fee schedule pursuant to subdivision (f) of Section 8447, families shall be assessed a flat monthly fee based on income, certified family need for full-time or part-time care services, and enrollment, and shall not be based on actual attendance. A recalculation of a family fee shall not occur if attendance varies from enrollment unless a change in need for care is assessed.
(e)
(f)The Superintendent shall design the new family fee schedule based on the state median income data that was in use for the 200708 fiscal year, adjusted for family size. The revised family fee schedule shall begin at income levels at which families currently begin paying fees. The revised fees shall not exceed 10 percent of the familys monthly income. The Superintendent shall first submit the adjusted fee schedule to the Department of Finance for approval.
(f)
(g)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 (42 U.S.C. Sec. 1381 et seq.) and Chapter 3 (commencing with Section 12000) of Part 3 of Division 9 of the Welfare and Institutions Code shall not be included in total countable income for purposes of determining the amount of the family fee.
(g)
(h)Family fees shall be assessed at initial enrollment and reassessed at update of certification or recertification.
(h)
(i)It is the intent of the Legislature that the new family fees shall be cost neutral to the state and generate roughly the same amount of revenue as was generated under the previous family fee schedule.
SEC. 11.The heading of Article 16.5 (commencing with Section 8385) of Chapter 2 of Part 6 of Division 1 of Title 1 of the Education Code is amended to read:16.5.Best PracticesSEC. 12.Section 8385 of the Education Code is amended to read:8385.On or after July 1, 2005, all child care contracts entered into by the department for means-tested child care programs, including, but not limited to, the programs described in Article 3 (commencing with Section 8220), Article 8 (commencing with Section 8240), and Article 15.5 (commencing with Section 8350), shall require implementation of best practices.
(a)Upon the approval of the State Department of Education, funds appropriated for the purposes of this chapter may be used for alternative payment programs to allow for maximum parental choice. Various methods of reimbursement for parental costs for child care may be utilized. All payment arrangements shall conform to the eligibility criteria and the parent fee schedule established pursuant to Sections 8263 and 8265.
To
(b)To provide for maximum parental choice and access, alternative payment programs may include the following:
(1)An eligibility determination process of not less than once every 12 months.
(a)
(2)A subsidy that follows the family from one provider to another within a given alternative payment program.
(b)
(3)Choices, whenever when possible, among hours of service including before and after school, evenings, weekends, and split shifts.
(c)
(4)Child care and development services according to parental choice, including use of family day care homes, general center based programs, and other state-funded programs to the extent that those programs exist in the general service area and are in conformity with the purposes and applicable laws for which those programs were established, but excluding state preschool programs.
SEC. 2.Section 8221.5 of the Education Code is amended to read:8221.5.(a)Child care providers authorized to provide services pursuant to this article shall submit to the alternative payment program a monthly attendance record or invoice for each child who received services that, at a minimum, documents the dates and actual times care was provided each day, including the time the child entered and the time the child left care each day. The information shall be documented on a daily basis.
(b)The monthly attendance record or invoice shall, at a minimum, be signed by the parent or guardian of the child receiving services and the child care provider once per month to attest that the childs attendance is accurately reflected. The verification of attendance shall be made by signature at the end of each month of care and under penalty of perjury by both the parent or guardian of the child receiving services and the child care provider.
(c)The monthly attendance record or invoice shall be maintained by the child care provider in the unaltered original format in which it was created, which may be in paper form or electronic format.
(d)The alternative payment program shall accept the monthly attendance record or invoice as documentation of the hours of care provided if the attendance record or invoice includes adequate information documented on a daily basis, including, at a minimum, the dates and actual times care was provided each day, including the time the child entered and the time the child left care each day. The alternative payment program shall reimburse child care providers based upon the following criteria:
(1)The hours of service provided that are broadly consistent with certified hours of need.
(2)For families with variable schedules, the actual days and hours of attendance, up to the maximum certified hours.
(3)For license-exempt providers that provide part-time services, the actual days and hours of attendance, up to the maximum certified hours.
(e)For purposes of reimbursement to providers through an alternative payment program, contractors shall not be required to track absences.
(f)
(e)For purposes of this section, a monthly attendance record or invoice is defined as documentation that includes, at a minimum, the name of the child receiving services, the dates and actual times care was provided each day, including the time the child entered and the time the child left care each day, that is signed under penalty of perjury by both the parent or guardian and the child care provider, attesting that the information provided is accurate.
(g)This section shall become operative on July 1, 2014.
SEC. 3.Section 8222 of the Education Code is amended to read:8222.(a)Payments made by alternative payment programs shall not exceed the applicable market rate ceiling. Alternative payment programs may expend more than the standard reimbursement rate for a particular child. However, the aggregate payments for services purchased by the agency during the contract year shall not exceed the assigned reimbursable amount as established by the contract for the year. No An agency may shall not make payments in excess of the rate charged to full-cost families. This section does not preclude alternative payment programs from using the average daily enrollment adjustment factor for children with exceptional needs as provided in Section 8265.5.
(b)Alternative payment programs shall reimburse licensed child care providers in accordance with a biennial market rate survey pursuant to Section 8447, at a rate not to exceed the ceilings established pursuant to Section 8357.
(c)An alternative payment program shall reimburse a licensed provider for child care of a subsidized child based on the rate charged by the provider to nonsubsidized families, if any, for the same services, or the rates established by the provider for prospective nonsubsidized families. A licensed child care provider shall submit to the alternative payment program a copy of the providers rate sheet listing the rates charged, and the providers discount or scholarship policies, if any, along with a statement signed by the provider confirming that the rates charged for a subsidized child are equal to or less than the rates charged for a nonsubsidized child. families.
(d)An alternative payment program shall maintain a copy of the rate sheet and the confirmation statement.
(e)
(d)A licensed child care provider shall submit to the local resource and referral agency a copy of the providers rate sheet listing rates charged, and the providers discount or scholarship policies, if any, and shall self-certify that the information is correct.
(f)Each
(e)A licensed child care provider may alter rate levels for subsidized children once per year and shall provide the alternative payment program and resource and referral agency with the updated information pursuant to subdivisions (c) and (e), to reflect any changes.
(g)
(f)A licensed child care provider shall post in a prominent location adjacent to the providers license at the child care facility the providers rates and discounts or scholarship policies, if any.
(h)An alternative payment program shall verify provider rates no less frequently than once a year by randomly selecting 10 percent of licensed child care providers serving subsidized families. The purpose of this verification process is to confirm that rates reported to the alternative payment programs reasonably correspond to those reported to the resource and referral agency and the rates actually charged to nonsubsidized families for equivalent levels of services. It is the intent of the Legislature that the privacy of nonsubsidized families shall be protected in implementing this subdivision.
(i)The department shall develop regulations for addressing discrepancies in the provider rate levels identified through the rate verification process in subdivision (h).
(g)An alternative payment program shall develop a rate verification process.
SEC. 4.Section 8225 of the Education Code is repealed.8225.When making referrals, every agency operating both a direct service program and an alternative payment program shall provide at least four referrals, at least one of which shall be a provider over which the agency has no fiscal or operational control, as well as information to a family on the familys ability to choose a license exempt provider.
SEC. 5.Section 8227.3 of the Education Code is amended to read:8227.3.(a)Alternative payment programs and providers operating or providing services pursuant to this article may maintain records in electronic format only if the original documents were created in electronic format. Records that may be created in electronic format and maintained electronically include, but are not limited to, the following: format.
(1)Child immunization records.
(2)Parental job verification records.
(3)Parent income verification.
(4)Parent school or training verifications and attendance records.
(b)Alternative payment programs shall create and maintain the following records:
(1)Parental job verification records.
(2)Parent income verification.
(3)Parent school or training verifications and attendance records.
(b)
(c)Pursuant to Section 33421, the original records shall be retained by each contractor for at least five years, or, where an audit has been requested by a state agency, until the date the audit is resolved, whichever is longer.
(c)Nothing in this
(d)This section requires does not require an alternative payment program or provider to create records electronically.
SEC. 6.Section 8261 of the Education Code is amended to read:8261.(a)The Superintendent shall adopt rules and regulations pursuant to this chapter. The rules and regulations shall include, but not be limited to, provisions which that do all of the following:
(1)Provide clear guidelines for the selection of agencies when child development contracts are let, including, but not limited to, specification that any an agency headquartered in the proposed service area on January 1, 1985, will be given priority for a new contract in that area, unless the department makes a written determination that (A) the agency is not able to deliver the level of services specified in the request for proposal, or (B) the department has notified the agency that it is not in compliance with the terms of its contract.
(2)Provide for a contract monitoring system to ensure that agencies expend funds received pursuant to this chapter in accordance with the provisions of their contracts.
(3)Specify adequate standards of agency performance.
(4)
(2)Establish reporting requirements for service reports, including provisions for varying the frequency with which these reports are to be submitted on the basis of agency performance.
(5)
(3)Specify standards for withholding payments to agencies that fail to submit required fiscal reports.
(6)Set forth standards for department site visits to contracting agencies, including, but not limited to, specification as to the purpose of the visits, the personnel that will perform these visits, and the frequency of these visits which shall be as frequently as staff and budget resources permit. By September 1 of each year, the department shall report to the Senate Education, Senate Health and Human Services, Assembly Education, and Assembly Human Services Committees on the number of visits conducted during the previous fiscal year pursuant to this paragraph.
(7)Authorize the department to develop a process that requires every contracting agency to recompete for continued funding no less frequently than every five years.
(b)The Superintendent shall consult with the State Department of Social Services with respect to rules and regulations adopted relative to the disbursal of federal funds under Title XX of the federal Social Security Act.
(c)For purposes of expediting the implementation of state or federal legislation to expand child care services, the Superintendent may waive (1) the regulations regarding the point qualifications for, and the process and scoring of, interviews of contract applicants pursuant to Section 18002 of Title 5 of the California Code of Regulations, or (2) the time limitations for scheduling and notification of appeal hearings and their results pursuant to Section 18003 of Title 5 of the California Code of Regulations. The Superintendent shall ensure that the appeal hearings provided for in Section 18003 of Title 5 of the California Code of Regulations are conducted in a timely manner.
(d)(1)Child care and development programs operated under contract from funds made available pursuant to the federal Child Care and Development Fund, shall be administered according to Division 19 (commencing with Section 17906) of Chapter 1 of Title 5 of the California Code of Regulations, unless provisions of these regulations conflict with federal regulations. If state and federal regulations conflict, the federal regulations shall apply unless a waiver of federal regulations is authorized.
(2)For purposes of this section, Child Care and Development Fund has the same meaning as in Section 98.2 of Title 45 of the Code of Federal Regulations.
SEC. 7.Section 8263 of the Education Code is amended to read:8263.(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, or emergency shelter as (i) a recipient of protective services or (ii) being neglected, abused, or exploited, or at risk of neglect, abuse, or exploitation, 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 shall be considered eligible for services for 12 months from time of initial, or annual, eligibility determination. 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.
(i)
(h)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. 8.Section 8265 of the Education Code is amended to read:8265.(a)The Superintendent shall implement a plan that establishes reasonable standards and assigned reimbursement rates, which vary with the length of the program year and the hours of service.
(1)Parent fees shall be used to pay reasonable and necessary costs for providing additional services.
(2)When establishing standards and assigned reimbursement rates, the Superintendent shall confer with applicant agencies. Applicant agencies shall comply with both of the following:
(A)Applicant agencies shall establish, as applicable, full-time, part-time, and hourly rates.
(B)Applicant agencies shall establish reimbursement rates that best meet the needs of the community, that are consistent with certified hour of care, and that do not exceed market rate ceilings.
(3)The reimbursement system, including standards and rates, shall be submitted to the Joint Legislative Budget Committee.
(4)The Superintendent may establish any regulations he or she deems advisable concerning conditions of service and hours of enrollment for children in the programs.
(b)The standard reimbursement rate shall be nine thousand twenty-four dollars and seventy-five cents ($9,024.75) per unit of average daily enrollment for a 250-day year, and commencing with the 201516 fiscal year, shall be increased by the cost-of-living adjustment granted by the Legislature annually pursuant to Section 42238.15.
(c)The plan shall require agencies having an assigned reimbursement rate above the current year standard reimbursement rate to reduce costs on an incremental basis to achieve the standard reimbursement rate.
(d)
(c)The plan shall provide for adjusting reimbursement on a case-by-case basis, in order to maintain service levels for agencies currently at a rate less than the standard reimbursement rate. Assigned reimbursement rates shall be increased only on the basis of one or more of the following:
(1)Loss of program resources from other sources.
(2)Need of an agency to pay the same child care rates as those prevailing in the local community.
(3)Increased costs directly attributable to new or different regulations.
(4)(A)Documented increased costs necessary to maintain the prior years level of service and ensure the continuation of threatened programs.
Child
(B)Child care agencies funded at the lowest rates shall be given first priority for increases.
(e)
(d)The plan shall provide for expansion of child development programs at no more than the standard reimbursement rate for that fiscal year.
(f)
(e)The Superintendent may reduce the percentage of reduction for a public agency that satisfies any of the following:
(1)Serves more than 400 children.
(2)Has in effect a collective bargaining agreement.
(3)Has other extenuating circumstances that apply, as determined by the Superintendent.
SEC. 9.Section 8269 of the Education Code is amended to read:8269.(a)The Superintendent of Public Instruction shall adopt rules, regulations, and guidelines to facilitate the funding and reimbursement procedures, for contractors operating centers, family child care homes, or both, required by this chapter.
(b)(1)The Superintendent shall adopt rules, regulations, and guidelines to facilitate the funding and reimbursement procedures for contractors that do not operate a center, a family child care home, or both.
(2)Contractors not operating a center, a family child care home, or both, shall establish, as applicable, a full-time, part-time, and hourly rate reimbursement structure to meet a certified need for child care.
(3)Reimbursement to the provider shall be the amount the provider charges unsubsidized families for the same hours of child care, or the maximum subsidy amount.
SEC. 10.Section 8273 of the Education Code is amended to read:8273.(a)The Superintendent shall establish a fee schedule for families using preschool and child care and development services pursuant to this chapter, including families receiving services pursuant to paragraph (1) of subdivision (b) of Section 8263. It is the intent of the Legislature that the new fee schedule shall be simple and easy to implement.
(b)The family fee schedule shall retain a flat monthly fee per family. The schedule shall differentiate between fees for part-time care and full-time care.
(c)The amount of a family fee shall be deducted from the reimbursement to a provider.
(c)
(d)Using the most recently approved family fee schedule pursuant to subdivision (f) of Section 8447, families shall be assessed a flat monthly fee based on income, certified family need for full-time or part-time care services, and enrollment, and shall not be based on actual attendance. No A recalculation of a family fee shall not occur if attendance varies from enrollment unless a change in need for care is assessed.
(d)
(e)The Superintendent shall design the new family fee schedule based on the state median income data that was in use for the 200708 fiscal year, adjusted for family size. The revised family fee schedule shall begin at income levels at which families currently begin paying fees. The revised fees shall not exceed 10 percent of the familys monthly income. The Superintendent shall first submit the adjusted fee schedule to the Department of Finance for approval.
(e)
(f)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 (42 U.S.C. Sec. 1381 et seq.) and Chapter 3 (commencing with Section 12000) of Part 3 of Division 9 of the Welfare and Institutions Code shall not be included in total countable income for purposes of determining the amount of the family fee.
(f)
(g)Family fees shall be assessed at initial enrollment and reassessed at update of certification or recertification.
(g)
(h)It is the intent of the Legislature that the new family fees shall be cost neutral to the state and generate roughly the same amount of revenue as was generated under the previous family fee schedule.
SEC. 11.The heading of Article 16.5 (commencing with Section 8385) of Chapter 2 of Part 6 of Division 1 of Title 1 of the Education Code is amended to read:16.5.Fraud And Overpayments Best PracticesSEC. 12.Section 8385 of the Education Code is amended to read:8385.(a)(1)The department, in consultation with the State Department of Social Services, county fraud investigators, and other fraud investigation experts, shall perform an error rate study to estimate the percentage of errors, including, but not limited to, overpayments and fraud, in determinations of eligibility, the need for child care pursuant to paragraph (2) of subdivision (a) of Section 8263, family fees, and reimbursement payments to child care providers, including, but not limited to, authorized hours of care and the use of adjustment factors, in programs operated pursuant to Article 3 (commencing with Section 8220) and Article 15.5 (commencing with Section 8350). The study shall include, but not be limited to, an analysis of a statistically valid, random, sample of family files and reimbursement payments that have been processed over a specified time. Each payment from the sample shall be audited to determine whether it was correctly paid or paid in error. Those payments identified as being paid in error shall be classified based on the type of the error that occurred, including, but not limited to, administrative errors, overpayment caused by providers, overpayments caused by parents, provider fraud, and beneficiary fraud.
(2)In conducting the compliance reviews required by regulations of the Superintendent pursuant to Section 8261 for programs operated pursuant to Article 8 (commencing with Section 8240), the department shall survey a statistically valid sample of files for the program and identify and report the errors, by category, resulting from that survey.
(3)The department shall report in writing to the Governor, the Chair of the Joint Legislative Budget Committee, the chairs of the fiscal committees for both houses of the Legislature, and the Department of Finance, information regarding the error rate study by April 1, 2005. The report shall include, but not be limited to, all of the following:
(A)The results of the error rate study.
(B)Fraud and overpayment reduction targets that have been established based on the data from the error rate study.
(C)The timeframe for achieving the targets.
(D)Recommendations developed pursuant to subdivision (b).
(b)The department shall develop recommendations for the prevention and elimination of child care fraud and programmatic errors and the identification and collection of child care overpayments. The recommendations shall include, but not be limited to:
(1)Precise definitions of what constitutes child care fraud and overpayments.
(2)A consistent statewide system to identify fraud and overpayments.
(3)A consistent statewide system of standards for fraud prevention, intervention, and overpayment collection that is applied to all child care program provider categories.
(4)Statewide fraud and overpayment measures that will be reported annually by the department.
(5)Standards for independent financial compliance audits, including provisions to ensure that small programs are not unduly burdened.
(6)Consistent statewide mechanisms for due process for parents.
(7)Consistent statewide mechanisms for dispute resolution for child care programs and providers.
(8)Assessment of the cost-effectiveness of prevention and intervention activities.
(9)Equitable treatment of all consumers of subsidized child care.
(10)Consideration of the need to minimize new barriers to family access to child care.
(11)A survey of best practices from both California agencies and providers and from other states.
(c)In developing its recommendations, the department shall place priority on prevention of fraud and overpayments, and shall consider existing best practices for doing so. The department shall make any identified best practices available on its Web site by March 1, 2005.
(d)The department shall consult with representatives of the State Department of Social Services, the Legislative Analysts Office, the Department of Finance, staff from the appropriate policy and fiscal committees of each house of the Legislature, and other interested parties including, but not limited to, child care consumers and providers, representatives from county welfare departments, district attorneys, county special investigative units, and legal advocacy organizations representing consumers in developing these recommendations.
(e)The department shall report its recommendations directly to the respective policy and fiscal committees of the Legislature by April 1, 2005.
(f)
8385.On or after July 1, 2005, all child care contracts entered into by the State Department of Education department for means-tested child care programs, including, but not limited to, the programs described in Article 3 (commencing with Section 8220), Article 8 (commencing with Section 8240), and Article 15.5 (commencing with Section 8350), shall require implementation of best practices identified pursuant to subdivision (c).
|
Date
|
Status
|
|---|---|
| Feb 4, 2015 | Read first time. To print. |
| Feb 5, 2015 | From printer. May be heard in committee March 7. |
| Feb 17, 2015 | Referred to Com. on HUM. S. |
| Mar 24, 2015 | In committee: Hearing postponed by committee. |
| Apr 9, 2015 | From committee chair, with author's amendments: Amend, and re-refer to Com. on HUM. S. Read second time and amended. |
| Apr 13, 2015 | Re-referred to Com. on HUM. S. |
| Apr 15, 2015 | From committee: Do pass and re-refer to Com. on ED. (Ayes 7. Noes 0.) (April 14). Re-referred to Com. on ED. |
| May 5, 2015 | From committee: Amend, and do pass as amended and re-refer to Com. on APPR. (Ayes 7. Noes 0.) (April 29). |
| May 6, 2015 | Read second time and amended. |
| May 7, 2015 | Re-referred to Com. on APPR. |
| May 20, 2015 | In committee: Set, first hearing. Referred to suspense file. |
| May 20, 2015 | In committee: Set, first hearing. Referred to APPR. suspense file. |
| May 28, 2015 | In committee: Held under submission. |
| Jan 31, 2016 | Died pursuant to Article IV, Sec. 10(c) of the Constitution. |
| Feb 1, 2016 | From committee: Filed with the Chief Clerk pursuant to Joint Rule 56. |
|
Date
|
Description
|
Location
|
Votes
|
|
|---|---|---|---|---|
| Apr 29, 2015 | Do pass as amended and be re-referred to the Committee on [Appropriations] | Assembly Standing Committee on Education |
Passed |
|
| Apr 14, 2015 | Do pass and be re-referred to the Committee on [Education] | 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
|
|---|---|---|
| Avaya | * Support | Apr 14, 2015 |
| California Alternative Payment Program Association | * Support | Apr 29, 2015 |
| CAPPA Children's Foundation | ** Support | Apr 14, 2015 |
| Child Care Links | ** Support | Apr 14, 2015 |
| Child Development Resources of Ventura County, Inc. | ** Support | Apr 14, 2015 |
| Children's Paradise | * Support | Apr 14, 2015 |
| Community Action Partnership of San Luis Obispo | ** Support | Apr 14, 2015 |
| Community Child Care Council of Alameda County | ** Support | Apr 14, 2015 |
| Community Resources for Children | ** Support | Apr 14, 2015 |
| Controltec, Inc. | ** Support | Apr 14, 2015 |
| Davis Street Family Resource Center | ** Support | Apr 14, 2015 |
| Family Resource & Referral Center | ** Support | Apr 14, 2015 |
| Footsteps Child Care | * Support | Apr 14, 2015 |
| Knowledge Universe-Us, LLC | * Support | Apr 29, 2015 |
| Mexican American Opportunity Foundation | ** Support | Apr 14, 2015 |
| One individual | ** Support | Apr 29, 2015 |
| Professional Association For Childhood Education | * Support | Apr 14, 2015 |
| San Fernando Valley LGBT | * Support | Apr 14, 2015 |
| Santa Cruz County Parents Association | ** Support | Apr 14, 2015 |
| Sierra Nevada Children's Services | ** Support | Apr 14, 2015 |
| Supportive Services, Inc. | ** Support | Apr 14, 2015 |
AB 233
Page 3
Date of Hearing: May 20, 2015
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Jimmy Gomez, Chair
AB 233
(Lopez) – As Amended May 6, 2015
Policy Committee: |
Human Services |
Vote: |
7 - 0 |
|
Education |
|
7 - 0 |
|
|
|
|
Urgency: No State Mandated Local Program: No Reimbursable: No
SUMMARY:
This bill adopts a 12-month eligibility determination process for subsidized child care, and removes certain reporting and administrative requirements. Specifically, this bill:
Establishes an eligibility determination process of every 12 months for Alternative Payment Programs (APPs).
Deletes the requirement that APP child care providers maintain monthly attendance records or invoices in the unaltered original format, and instead simply requires that these records or invoices be maintained.
Deletes the requirement that contractors track absences for purpose of reimbursement to providers through an APP, and authorizes an APP to implement an altered rate level once a year.
Deletes the requirement that a licensed child care provider post its rates and discounts or scholarship policies in a prominent location adjacent to the provider's license at a child care facility.
Specifies that a family may receive child care services for 12 months, rather than up to 12 months, on the basis of a certification by the county child welfare agency that child care services continue to be necessary.
Specifies that a family that transfers from one subsidized child care program to another in order to maintain eligibility shall be considered continuously eligible for services for 12 months from the time of initial, or subsequent, eligibility determination.
Requires the Superintendent of Public Instruction (SPI) to adopt rules, regulations, and guidelines to facilitate the funding and reimbursement for contractors operating centers, family child care homes, or both.
Authorizes an APP contractor to develop a written policy directing parents to pay family fees directly to the child care provider. Establishes requirements related to this process.
FISCAL EFFECT:
The proposal to remove requirements for providers to keep documentation in the unaltered original format is problematic to CDE. They note audit and legal considerations regarding the increased risk for fraud and the possible loss of some or all of CDEs $700 million federal child care dollars due to inadequate controls on the use of those funds. They have been working with the sponsor to develop the necessary controls to protect the federal funds, but those controls are not in the bill. Absent those controls, CDE anticipates the following costs.
One-time costs of approximately $75,000 to train CDE audit staff and revise audit procedures.
On-going costs of up to $4.9 million due to increased audit field work costs of between $70,000 and $100,000 per on site audit, and for review of the independent audits of the 1,227 child care contractors.
Potential costs due to potential caseload increases in Stage 2 and Stage 3 CalWORKs childcare (federal funds/GF), resulting from the 12 month eligibility changes.
One-time costs, unknown, but likely minor, for the SPI to adopt rules, regulations, and guidelines to facilitate the funding and reimbursement procedures specific for contractors operating centers, family child care homes, or both.
COMMENTS:
Purpose. According to the author, “The priority of this bill is to provide maximum parental choice, access and stable child care for eligible working families up to 12 months. Our working poor families dealing with a multitude of poverty stressors ought to have peace of mind that their child care is stable. Additionally, this bill aims to create greater efficiencies and maximize the use of public funds to greater support working families.”
In addition, adopting a 12-month eligibility period for subsidized child care will help bring the state into conformity with pending federal requirements per the Child Care and Development Block Grant Act of 2014.
Background. The California Department of Education (CDE) administers a child care and development system, maintaining over 1,300 service contracts with approximately 750 public and private agencies supporting and providing services to children from birth through 12 years of age. Programs administered by the CDE include General Child Care, California State Preschool Program, Migrant Child Care, and APPs. In fiscal year (FY) 2014-15, $2.4 billion was provided for child care and development programs from state and federal funds, offering 355,000 slots.
A network of APPs contract with CDE to provide low-income and eligible families access to subsidized child care. In 2013-14, there were 76 APPs across the state providing support and payment services and they range from private, nonprofit organizations to county offices of education. APPs do not provide direct child development services or programs; instead, they facilitate family choice by providing families with subsidized child care vouchers. Eligible families can include those participating in welfare-to-work activities under the California Work Opportunities and Responsibility to Kids (CalWORKs) program, or those who are low-income but do not qualify for CalWORKs.
APPs are reimbursed based on the number of children served and funds are appropriated based on the fiscal reporting process and budget estimations. APPs began as pilot programs in 1977 and became permanent in 1980.
Child Care and Development Block Grant. 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) or temporary changes in participation in work, training, or education activities.
Related Legislation. AB 271 (Obernolte), pending in this Committee, allows APPs and child care providers to maintain records electronically.
Analysis Prepared by: Jennifer Swenson / APPR. / (916) 319-2081
AB 233
Page 5
Date of Hearing: April 29, 2015
ASSEMBLY COMMITTEE ON EDUCATION
Patrick O'Donnell, Chair
AB 233
(Lopez) – As Amended April 9, 2015
[Note: This bill was doubled referred to the Assembly Human Services Committee and was heard by that Committee as it relates to issues under its jurisdiction.]
SUBJECT: Child care and development services: alternative payment programs: reimbursement rates
SUMMARY: Provides a 12-month eligibility determination process for specified child care and development programs and makes changes to the administration of various programs. Specifically, this bill:
Adds “access” to the current designated purpose of alternative payment programs (APPs) of allowing for maximum parental choice.
Establishes an eligibility determination process of every 12 months for APPs.
Deletes the requirement that alternative payment (AP) child care providers maintain monthly attendance records or invoices in the unaltered original format and instead simply requires that these records or invoices be maintained.
Deletes the requirement that contractors track absences for purpose of reimbursement to providers through an APP.
Authorizes an APP to implement an altered rate level once per year.
Deletes the requirement that a licensed child care provider post its rates and discounts or scholarship policies in a prominent location adjacent to the provider's license at a child care facility.
Deletes the requirement for an APP to verify provider rates no less frequently than once a year by randomly selecting 10% of licensed child care providers serving subsidized families.
Deletes the provision requiring the California Department of Education (CDE) to develop regulations addressing discrepancies in the provider rate levels identified through the rate verification process.
Changes the requirement that every agency operating both a direct service program and an APP provide at least four referrals to a family, as specified, to apply only to resource and referral agencies.
Specifies that a family may receive child care services for 12 months, rather than 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.
Specifies that a family that transfers from one subsidized child care program to another in order to maintain eligibility shall be considered continuously eligible for services for 12 months from the time of initial, or subsequent, eligibility determination.
States that it is the intent of the Legislature that an extension of the 60-day working period improve services in areas with high unemployment rates or areas with disproportionately high numbers of seasonal agricultural jobs, or both.
Deletes the requirement that families have a physical examination and evaluation, including age-appropriate immunization, as a condition of enrollment in a child care and development program. Deletes the requirement that 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. Deletes the requirement that 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.
Specifies that the funding and reimbursement procedures the Superintendent of Public Instruction (SPI) is currently required to adopt rules, regulations, and guidelines for apply to contractors operating centers, family child care homes, or both.
Authorizes an APP contractor to develop a written policy directing parents to pay family fees directly to the child care provider. Establishes requirements related to this process, as follows:
The contractor shall provide written notification of the assessed fee to both the parent and the child care provider.
The contractor shall deduct the amount of the family fee assessed to the parent when calculating the payment due to the child care provider.
The contractor shall report its payment to the child care provider plus the assessed family fees as an expense on the attendance and expenditure reports as required by regulation.
A contractor with a written policy directing parents to pay family fees directly to the child care provider are exempt from all of the following:
Requiring families to pay family fees in advance of child care services.
Requiring any record or proof that the family paid any applicable family fees to the child care provider.
Notification of delinquent fees or termination for delinquent fees.
The contractor is authorized to require child care providers to collect the family fee, which shall be deducted from the reimbursement to the child care provider, or to collect the family fee amount directly from the parent.
Strikes obsolete provisions and makes technical, non-substantive changes.
EXISTING LAW:
Establishes eligibility for child care services and child development programs administered by the CDE and requires the SPI to adopt rules and regulations on eligibility, enrollment and priority of services needed for implementation (Education Code (EC) Section 8263).
Provides that CalWORKs recipients are eligible for three stages of child care services. Stage one child care begins when a recipient first receives CalWORKs aid and is limited to six months. Stage two begins when a recipient's work or work activity is stable and is available for up to two years after a recipient is no longer eligible for CalWORKs aid. Families can maintain child care benefits if it meets income eligibility under stage 3 if there are slots available. (EC Sections 8350-8359.1)
Specifies that in order to be eligible for federal and state subsidized child development services, families must meet at least one requirement in each of the following areas:
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; and,
A family needs the child care services (A) because the child is identified by a legal, medical, social services agency, or emergency shelter as (i) a recipient of protective services or (ii) being neglected, abused, or exploited, or at risk of neglect, abuse or exploitation, 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. (EC Section 8263(a))
Defines "income eligible" as a family whose adjusted monthly income is at or below 70% of the state median income (SMI), adjusted for family size, and adjusted annually. For the 2014-15 fiscal year, the income eligibility shall be 70% of the SMI that was in use for the 2007-08 fiscal year, adjusted for family size. (EC Section 8263.1)
Authorizes child care and development funds to be used for APPs to allow for maximum parental choice. (EC Section 8220)
Requires the SPI to establish a family fee schedule for subsidized child care, as specified, contingent on income and subject to a cap. (EC Section 8273)
FISCAL EFFECT: Unknown
COMMENTS: Background on child care and development programs. The CDE administers a child care and development system, maintaining over 1,300 service contracts with approximately 750 public and private agencies supporting and providing services to children from birth through 12 years of age. Contractors include school districts, county offices of education, cities, colleges, other public entities, community-based organizations, and private agencies. Programs administered by the CDE include General Child Care, California State Preschool Program, Migrant Child Care, and APPs. In fiscal year (FY) 2014-15, $2.4 billion was provided for child care and development programs from state and federal funds, offering 355,000 slots.
This bill is sponsored by the California Alternative Payment Program Association (CAPPA). APPs, funded with state and federal funds, offer a variety of child care arrangements for parents, including licensed family child care homes and center-based care, and arrange for payments to licensed-exempt providers, who are relatives or friends of parents or guardians. The APP helps families access child care services and makes payment for those services directly to the child care provider selected by the family. The APP is intended to increase parental choice and accommodate the individual needs of the family. APPs are reimbursed based on the number of children served and funds are appropriated based on the fiscal reporting process and budget estimations. In 2013-14, there were 76 APPs throughout the state and they range from private, nonprofit organizations to county offices of education. APPs began as pilot programs in 1977 and became permanent in 1980.
The bill has the following major components:
12-month eligibility: This bill extends eligibility for child care services to 12 months for APPs and for families transferring from one subsidized child care program to another. With the exception of families receiving care due to social services placements, California already has a 12-month eligibility determination practice. The issue addressed by the bill is whether and to what extent families should be required to report changes during the 12 month period and whether these changes should result in termination of services. California requires families to report any changes in income or need within five calendar days. This bill negates this regulation and the requirement for contractors to recertify families receiving services.
The 12-month eligibility provision is incorporated in the APP section of the EC and in the section regarding families transferring from one subsidized child care program to another. Staff recommends striking the 12-month eligibility language in the two sections in the bill and instead adding a new subdivision in EC 8263 to apply the 12-month eligibility determination to all child care and development programs.
A 12-month eligibility determination provides certainty to families. It is also consistent with the changes in the reauthorization of the federal Child Care and Development Block Grant, from which California received $570 million in 2014-15.
Physical examination and evaluation. The bill deletes requirements that a physical exam and evaluation, including age-appropriate immunization, be required before, or within six weeks of, enrollment. The bill also strikes the provision offering an exemption from the requirement for religious reasons, and the authority to remove a child temporarily if a child is suffering from a recognized contagious or infectious disease. According to the sponsor, this provision was removed because APPs do not directly work with children. This provision is not specific to APPs and should not be deleted. Staff recommends reinstating this provision and instead adding language clarifying the provisions that apply to providers.
Elimination of requirement for APs to verify provider rates. This bill eliminates a requirement for an APP to verify provider rates at least once a year in order to ascertain the rates charged to nonsubsidized families. The sponsor argues that this is unnecessary because the rates is established by the regional market rate established by the Legislature. According to the CDE, this provision is necessary to verify the amount being charged to non-subsidized families. Staff recommends reinstating this provision.
Family fee. This bill authorizes an APP to develop a written policy that directs parents to pay family fees directly to the child care provider and exempts APs from the responsibility for collecting fees. This provision reduces administrative responsibilities for APs, but may put a burden and financial risk on a provider to collect fees, as the bill authorizes the AP contractor to deduct the family fee amount in the reimbursement to a child care provider. It is also unclear who will be responsible for conducting the administrative functions currently required of APs, such as maintaining records of payments and issuing a Notice of Action if a family fails to pay a fee. According to the sponsor, many providers have already assumed the responsibilities for collecting the fees. Staff recommends adding an amendment to specify that an AP may direct a parent to pay family fees directly to a provider upon agreement by a child care provider to collect the fee.
Arguments in support. According to the author, “The priority of this bill is to provide maximum parental choice, access and stable child care for eligible working families up to 12 months. Our working poor families dealing with a multitude of poverty stressors, that are getting up, working and doing everything we ask of them to move towards self-sufficiency, ought to have peace of mind that their child care is stable. Additionally, this bill aims to create greater efficiencies and maximize the use of public funds to greater support working families.”
REGISTERED SUPPORT / OPPOSITION:
Support
One individual
Opposition
None on file
Analysis Prepared by: Sophia Kwong Kim / ED. / (916) 319-2087
AB 233
Page 5
Date of Hearing: April 14, 2015
ASSEMBLY COMMITTEE ON HUMAN SERVICES
Kansen Chu, Chair
AB 233
(Lopez) – As Amended April 9, 2015
SUBJECT:
Child care and development services: alternative payment programs: reimbursement rates
SUMMARY:
Adopts a 12-month eligibility determination process for subsidized child care and removes certain reporting and administrative requirements.
Specifically, this bill:
Adds “access” to the current designated purpose of alternative payment programs (APPs) of allowing for maximum parental choice.
Makes components of APPs which were previously permissible, as specified, required.
Requires APPs to include an eligibility determination process of every 12 months.
Removes the requirement that alternative payment (AP) child care providers maintain monthly attendance records or invoices in the unaltered original format and instead simply requires that these records or invoices be maintained.
Removes the requirement that contractors track absences for purpose of reimbursement to providers through an APP.
Adds language that allows an APP to implement an altered rate level once per year.
Deletes the requirement that a licensed child care provider post its rates and discounts or scholarship policies, as specified.
Deletes the requirement that an APP must verify provider rates at least once a year, as specified. Further deletes the requirement that the Department of Social Services (DSS) develop regulations to address discrepancies identified in this process.
Changes the requirement that every agency operating both a direct service program and an APP provide at least four referrals to a family, as specified, to apply only to resource and referral agencies.
Adds language stating that a family that transfers from one subsidized child care program to another in order to maintain eligibility shall be considered continuously eligible for services for 12 months from the time of initial, or subsequent, eligibility determination.
Specifies that extension of the 60-day working period, as specified, may be granted to all contractors.
States that it is the intent of the Legislature that an extension of the 60-day working period improve services in areas with high unemployment rates or areas with disproportionately high numbers of seasonal agricultural jobs, or both.
Removes the requirement that families have a physical examination and evaluation, including age-appropriate immunization, as a condition of enrollment in APP services, as specified.
Specifies that the funding and reimbursement procedures the Superintendent of Public Instruction is currently required to adopt rules, regulations, and guidelines for apply to contractors operating centers, family child care homes, or both.
Allows contractors, as specified, to develop a written policy directing parents to pay family fees directly to the child care provider. Establishes requirements related to this process, including, among others as specified, that the contractor shall deduct the amount of the family fee assessed to the parent from the payment to the provider.
Exempts contractors that have a written policy instructing parents to pay family fees directly to the provider from certain requirements, as specified, including having to supply record or proof that the family fee was paid to the provider.
Deletes outdated language and makes technical, non-substantive amendments.
EXISTING LAW:
Establishes the Child Care and Developmental 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 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 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 the 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 of Public Instruction to adopt rules and regulations regarding eligibility, enrollment, and priority of services. Allows the Superintendent to extend the 60-day eligibility limit for job-seeking activities (per Section 18086.5 of Title 5 of the California Code of Regulations), as specified, in order to promote continuity of care. Requires a physical examination and evaluation for enrollment, as specified. (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:
Alternative Payment Programs: A network of APPs contract with CDE to provide to low-income and eligible families access to subsidized child care. In 2013-14, there were 76 APPs across the state providing support and payment services. APPs do not provide direct child development services or programs; instead, they facilitate family choice by providing families with subsidized child care vouchers. Eligible families can include those participating in welfare-to-work activities under the California Work Opportunities and Responsibility to Kids (CalWORKs) program, or those who are low-income but do not qualify for CalWORKs.
A family who receives a voucher from an APP will typically be referred to a local child care resource and referral (R&R) agency, which, like APPs, is also funded through state and federal dollars. R&Rs assist families in identifying and accessing available and appropriate care and services. Currently, limited state resources have hindered access to programs accepting vouchers, and many families are placed on a waiting list, if one is available.
Child Care and Development Block Grant: 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) or temporary changes in participation in work, training, or education activities.
Need for this bill: According to the author, “The priority of this bill is to provide maximum parental choice, access and stable child care for eligible working families up to 12 months. Our working poor families dealing with a multitude of poverty stressors, that are getting up, working and doing everything we ask of them to move towards self-sufficiency, ought to have peace of mind that their child care is stable. Additionally, this bill aims to create greater efficiencies and maximize the use of public funds to greater support working families.”
Supporters contend that maintaining eligibility for 12 months will strengthen the subsidized child care delivery system, where they see, firsthand, the benefit of removing the threat of loss of child care in the lives of families. Additionally, employers stand to benefit from the more stable and reliable workforce resulting when child care is consistently available.
Furthermore, this bill’s provisions adopting a 12-month eligibility period for subsidized child care will help bring the state into conformity with pending federal requirements per the Child Care and Development Block Grant Act of 2014.
DOUBLE REFERRAL. This bill has been double-referred. Should this bill pass out of this committee, it will be referred to the Assembly Committee on Education.
REGISTERED SUPPORT / OPPOSITION:
Support
Coalition of California Welfare Rights Organizations, Inc.
Child Care Links
Community Resources for Children
Controltec, Inc.
Mexican American Opportunity Foundation
Davis Street Family Resource Center
Child Development Resources of Ventura County, Inc.
North Coast Opportunities, Inc.
Supportive Services, Inc.
Community Child Care Council (4C's) of Alameda County
CAPPA Children’s Foundation
Child Development Associates, Inc.
Family Resource & Referral Center
Sierra Nevada Children's Services
Valley Oak Children’s Services
Community Action Partnership of San Luis Obispo
Santa Cruz County Parents Association
Opposition
None on file.
Analysis Prepared by:
Daphne Hunt/HUM. S./(916) 319-2089
Discussed in Hearing
10MIN
Assembly Standing Committee on Education
8MIN
Assembly Standing Committee on Human Services
Bill Author
Bill Co-Author(s):