AB 540: Child care: alternative payment programs: reimbursement rates.

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. Existing law requires the Superintendent of Public Instruction to develop standards for the implementation of quality child care programs. Existing law authorizes various counties, as a pilot project, to develop an individualized county child care subsidy plan, as provided. Existing law provides for child care alternative payment programs, the purpose of which is to provide for maximum parental choice in child care. Existing law requires reimbursement for alternative payment programs to include the cost of child care paid to child care providers, plus administrative and support services costs. Under existing law, the total cost for administrative and support services is not permitted to exceed 17.5% of the total contract amount.

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. Existing law requires the Superintendent of Public Instruction to develop standards for the implementation of quality child care programs. Existing law authorizes various counties, as a pilot project, to develop an individualized county child care subsidy plan, as provided.

This bill would provide that it is the intent of the Legislature to create legislation that would establish an optional statewide child care and education subsidy policy program to increase and encourage county and regional collaboration among subsidized early care and education programs and providers in order to increase access to subsidized services for children and families, promote local flexibility to meet the unique needs of children and families in each county or region, and maximize the utilization of the allocated funding within the county or region.

Existing law provides that it is the intent of the Legislature to appropriate money each fiscal year for allocation to child care and development resources and referral programs. Existing law requires child care resource and referral programs to provide specified services and requires the services to be provided in a manner that is responsive to the diverse cultural, linguistic, and economic needs of a defined geographic area of service.

This bill would require child care resource and referral services to also be provided in a manner that is responsive to the social needs of a defined geographic area of service.