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AB-603 Child care: alternative payment programs: child care providers.(2017-2018)

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Date Published: 05/30/2017 02:00 PM
AB603:v97#DOCUMENT

Amended  IN  Assembly  May 30, 2017
Amended  IN  Assembly  March 29, 2017

CALIFORNIA LEGISLATURE— 2017–2018 REGULAR SESSION

Assembly Bill No. 603


Introduced by Assembly Member Quirk-Silva

February 14, 2017


An act to add Section 8227.4, 8227.6, and 8227.7 to the Education Code, relating to child care services.


LEGISLATIVE COUNSEL'S DIGEST


AB 603, as amended, Quirk-Silva. Child care: alternative payment programs: child care providers.
The Child Care and Development Services Act, administered by the State Department of Education, requires the Superintendent of Public Instruction to administer child care and development programs that offer a full range of services to eligible children from infancy to 13 years of age, inclusive. The act requires the department to contract with local contracting agencies to provide for alternative payment programs, and authorizes alternative payments to be made for child care services, as provided. The act requires child care providers authorized to provide services to submit to the alternative payment program a monthly attendance record or invoice for each child who received services, as provided. Existing law requires alternative payment programs to reimburse licensed child care providers in accordance with a biennial market rate survey, as provided.
This bill would require, on or before January 1, 2019, alternative payment programs to develop an electronic time sheet process for the monthly attendance record or invoices, as provided. The bill would require, beginning January 2, 2019, alternative payment programs to offer the electronic time sheet process to child care providers the department to provide to the appropriate policy and fiscal committees of the Legislature cost estimates and system analysis for alternative payment programs to develop an electronic timesheet process for the monthly attendance record or invoices, as provided. The bill would require on or before January 1, 2019, an alternative payment program to establish a program of electronic banking for payments made to licensed or license-exempt child care providers that have a contract with that alternative payment program, as provided. The bill would require, beginning July 1, 2019, alternative payment programs to provide written notice to a child care provider of any changes to service, as provided.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

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


SECTION 1.

 The Legislature finds and declares all of the following:
(a) The state has a responsibility to ensure accountability, transparency, and efficiency regarding funds allocated for the provision of subsidized child care for working families.
(b) Programs operated by the state should be cost-effective, streamlined, and simple to administer in order to ensure adequate care for children placed with child care providers, while not placing undue burdens on the child care providers.
(c) The state has a compelling interest to retain quality family day care providers, promote best practices, fiscal accountability, and reduce fraud and waste in California’s system of subsidized child care.

SEC. 2.

 Section 8227.4 is added to the Education Code, to read:

8227.4.
 (a)On or before January 1, 2019, alternative payment programs shall develop an electronic time sheet process, for the On or before January 1, 2019, the department shall provide information to the appropriate policy and fiscal committees of the Legislature regarding cost estimates and system analysis for alternative payment programs to develop an electronic timesheet process for the monthly attendance record or invoices required pursuant to Section 8221.5, in order for a child care provider to record hours of care for purposes of receiving state subsidies. The electronic time sheet process This information shall also include a an analysis of using the method for of a digital signature for both the child care provider and the parent or authorized signatory.

(b)Beginning January 2, 2019, alternative payment programs shall offer the electronic time sheet process to child care providers.

(c)This section does not require a child care provider to use the electronic time sheet process. The child care provider may continue to complete a paper time sheet if he or she so chooses.

SEC. 3.

 Section 8227.6 is added to the Education Code, to read:

8227.6.
 (a) (1) On or before January 1, 2019, an alternative payment program shall establish a program of electronic banking for payments made to licensed or license-exempt child care providers that have a contract with that alternative payment program, including, but not limited to, direct deposit. A child care provider may choose to receive payments via electronic banking at the child care provider’s option. The child care provider may, but is not required to, authorize payment to be directly deposited by an electronic fund transfer into the child care provider’s account at the financial institution of his or her choice.
(2) Nothing in this subdivision shall preclude an alternative payment program that has an electronic banking program in place before the effective date of this subdivision from continuing to require a child care provider, including child care centers and family day care homes, to accept direct deposit or another form of electronic payment after the effective date of this subdivision.
(b) An alternative payment program shall include a description of the payment to the child care provider, by child served and month of service covered by the payment.

SEC. 4.

 Section 8227.7 is added to the Education Code, to read:

8227.7.
 (a) Beginning July 1, 2019, alternative payment programs shall provide written notice to a child care provider of a change in eligibility for child care services, including, but not limited to, a change in the hours of care, rates, or schedules, an increase or decrease in parent fees, or termination of services. For purposes of this section, the notice shall occur both electronically, if requested by the child care provider, and via the United States Postal Service. The alternative payment program shall provide the written notice at least 14 calendar days before the effective date of the intended action.
(b) The notification shall not be deemed a violation of the parent’s confidentiality but as a method to ensure the proper administration of subsidy funds.