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AB-231 Subsidized child care: eligibility.(2017-2018)

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Date Published: 02/21/2017 09:00 PM
AB231:v98#DOCUMENT

Amended  IN  Assembly  February 21, 2017

CALIFORNIA LEGISLATURE— 2017–2018 REGULAR SESSION

Assembly Bill No. 231


Introduced by Assembly Member Chávez

January 26, 2017


An act to amend Sections 8263.1, 8263.2, and 8354 of, and to add Section 8264.9 to, of the Education Code, relating to child care.


LEGISLATIVE COUNSEL'S DIGEST


AB 231, as amended, Chávez. Subsidized child care: eligibility.
Existing law, the Child Care and Development Services Act, requires the Superintendent of Public Instruction to administer child care and development programs that offer a full range of services for eligible children from infancy to 13 years of age. The act requires families to meet certain requirements in various areas to be eligible for federal and state subsidized child development services. The act authorizes the Superintendent of Public Instruction to enter into and execute local contractual agreements with any public or private entity or agency for the delivery of child care and development services.

This bill would limit a family to a total of not more than 8 years of state-funded child care and development services per child under the act.

Existing law provides for income eligibility standards for families to receive child care and development services. Existing law defines income eligibility, for purposes of the act, as a family’s adjusted monthly income at or below 70% of the state median income, adjusted for family size, and adjusted annually. Notwithstanding this provision, existing law sets the income eligibility limits for the 2016–17 fiscal year at 70% of the state median income that was in use for the 2007–08 fiscal year, adjusted for family size.
This bill would, for the 2018–19 fiscal year, and each fiscal year thereafter, (1) define income eligibility as a family’s adjusted monthly income at or below 75% of the state median income, adjusted for family size, and adjusted annually; and (2) establish a phasing-out scale for eligibility levels based on the state median income, as specified. The bill would also require the income of each family receiving state-funded child care under the act to be verified annually. The bill would make conforming changes and nonsubstantive changes to related provisions.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

The people of the State of California do enact as follows:


SECTION 1.

 Section 8263.1 of the Education Code is amended to read:

8263.1.
 (a) For purposes of this chapter, “income eligible” means the following:
(1) For the 2017–18 fiscal year, a family’s adjusted monthly income is at or below 70 percent of the state median income, adjusted for family size, and adjusted annually.
(2) Except as provided in subdivision (d), for the 2018–19 fiscal year, and each fiscal year thereafter, a family’s adjusted monthly income is at or below 75 percent of the state median income, adjusted for family size, and adjusted annually.
(b) Notwithstanding any other law, for the 2011–12 fiscal year, the income eligibility limits that were in effect for the 2007–08 fiscal year shall be reduced to 70 percent of the state median income that was in use for the 2007–08 fiscal year, adjusted for family size, effective July 1, 2011.
(c) Notwithstanding any other law, for the 2012–13, 2013–14, 2014–15, 2015–16, and 2016–17 fiscal years, the income eligibility limits shall be 70 percent of the state median income that was in use for the 2007–08 fiscal year, adjusted for family size.
(d) Notwithstanding subdivision (a), for the 2018–19 fiscal year, and each fiscal year thereafter, the following phasing-out scale for eligibility levels based on the state median income shall be used:
(1) A family whose income is at 75 percent or lower of the state median income shall receive 100 percent of state-funded child care for which the family is eligible.
(2) A family whose income is at 76 percent to 78 percent, inclusive, of the state median income shall receive 75 percent of state-funded child care for which the family is eligible.
(3) A family whose income is at 79 percent to 82 percent, inclusive, of the state median income shall receive 50 percent of state-funded child care for which the family is eligible.
(4) A family whose income is at 83 percent to 85 percent, inclusive, of the state median income shall receive 25 percent of state-funded child care for which the family is eligible.
(e) The income of a recipient of federal supplemental security income benefits pursuant to Title XVI of the federal Social Security Act (42 U.S.C. Sec. 1381 et seq.) and state supplemental program benefits pursuant to Title XVI of the federal Social Security Act and Chapter 3 (commencing with Section 12000) of Part 3 of Division 9 of the Welfare and Institutions Code shall not be included as income for purposes of determining eligibility for child care under this chapter.
(f) The income of each family receiving state-funded child care pursuant to this chapter shall be verified annually.

SEC. 2.

 Section 8263.2 of the Education Code is amended to read:

8263.2.
 (a) Notwithstanding any other law, effective July 1, 2011, the department shall reduce the maximum reimbursable amounts of the contracts for the Preschool Education Program, the General Child Care Program, the Migrant Day Care Program, the Alternative Payment Program, the CalWORKs Stage 3 Program, and the Allowance for Handicapped Program by 11 percent or by whatever proportion is necessary to ensure that expenditures for these programs do not exceed the amounts appropriated for them, including any reductions made subsequent to the adoption of the annual Budget Act. The department may consider the contractor’s performance or whether the contractor serves children in underserved areas as defined in subdivision (ag) of Section 8208 when determining contract reductions, provided that the aggregate reduction to each program specified in this subdivision is 11 percent or by whatever proportion is necessary to ensure that expenditures for these programs do not exceed the amounts appropriated for them, including any reductions made subsequent to the adoption of the annual Budget Act.
(b) Notwithstanding any other law, effective July 1, 2011, families shall be disenrolled from subsidized child care services, consistent with the priorities for services specified in subdivision (b) of Section 8263. Families shall be disenrolled in the following order:
(1) Families whose income exceeds 70 percent of the state median income (SMI) for the 2017–18 fiscal year, or 85 percent of the SMI pursuant to Section 8263.1 commencing with the 2018–19 fiscal year, adjusted for family size, except for families whose children are receiving child protective services or are at risk of being neglected or abused.
(2) Families with the highest income below 70 percent of the SMI for the 2017–18 fiscal year, or 85 percent of the SMI pursuant to Section 8263.1 commencing with the 2018–19 fiscal year, in relation to family size.
(3) Families that have the same income and have been enrolled in child care services the longest.
(4) Families that have the same income and have a child with exceptional needs.
(5) Families whose children are receiving child protective services or are at risk of being neglected or abused, regardless of family income.

SEC. 3.Section 8264.9 is added to the Education Code, to read:
8264.9.

A family shall be limited to a total of not more than eight years of state-funded child care and development services per child under this chapter.

SEC. 4.SEC. 3.

 Section 8354 of the Education Code is amended to read:

8354.
 (a) The third stage of child care begins when a funded space is available. CalWORKs recipients are eligible for the third stage of child care. Persons who received a lump-sum diversion payment or diversion services and former CalWORKs participants are eligible if they have an income that does not exceed 70 percent of the state median income (SMI) for the 2017–18 fiscal year, or 85 percent of the SMI commencing with the 2018–19 fiscal year, pursuant to Section 8263.1. The third stage shall be administered by programs contracting with the State Department of Education. Parents’ eligibility for child care and development services shall be governed by Section 8263 and regulations adopted by the State Department of Education.
(b) In order to move welfare recipients and former recipients from their relationship with county welfare departments to relationships with institutions providing services to working families, it is the intent of the Legislature that families that are former recipients of aid, or are transitioning off aid, receive their child care assistance in the same fashion as other low-income working families. Therefore, it is the intent of the Legislature that families no longer rely on county welfare departments to obtain child care subsidies beyond the time they are receiving other services from the welfare department.
(c) A county welfare department shall not administer the third stage of child care for CalWORKs recipients except to the extent to which it delivered those services to families receiving, or within one year of having received, Aid to Families with Dependent Children before the enactment of this section.
(d) This article does not preclude county welfare departments from operating an alternative payment program under contract with the State Department of Education to serve families referred by child protective services.