Today's Law As Amended


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AB-125 Early childhood education: reimbursement rates.(2019-2020)



As Amends the Law Today


SECTION 1.

 Section 8265 of the Education Code is amended to read:

8265.
 (a) The Superintendent shall implement a reimbursement system  plan that establishes reasonable standards and assigned reimbursement rates, which vary with the regional reimbursement ceiling adopted pursuant to Section 8357, a quality adjustment factor to address the cost of staffing ratios pursuant to Section 8264.8, the  length of the program year and  year,  the hours of service. service, and any additional adjustment factors pursuant to paragraphs (3) to (7), inclusive, of subdivision (c) of Section 8265.5. 
(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.
(3) The reimbursement system, including standards and rates, shall be  system plan, including methodology, standards, county rate targets as established by the Superintendent pursuant to subdivision (g), and the total statewide funding amount necessary to reach annual rate targets for all agencies shall be annually  submitted to the Joint Legislative Budget Committee. Committee, on or before November 10. 
(4) The Superintendent may establish any regulations he or she  the Superintendent  deems advisable concerning conditions of service and hours of enrollment for children in the programs.
(b) Commencing July 1, 2018, the standard reimbursement rate shall be eleven thousand nine hundred ninety-five dollars ($11,995) and, commencing with the 2019–20 fiscal year, shall be increased by the cost-of-living adjustment granted by the Legislature annually pursuant to Section 42238.15. Commencing July 1, 2018, the full-day state preschool reimbursement rate shall be twelve thousand seventy dollars ($12,070) and, commencing with the 2019–20 fiscal year, shall be increased by the cost-of-living adjustment granted by the Legislature annually pursuant to Section 42238.15.
(c) The reimbursement system  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) (1) The reimbursement system  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.  agencies.  Assigned reimbursement rates shall be increased only on the basis of one or more of the following:
(A) Loss of program resources from other sources.
(B) Need of an agency to pay the same child care  childcare  rates as those prevailing in the local community.
(C) Increased costs directly attributable to new or different regulations.
(D) Documented increased costs necessary to maintain the prior year’s level of service and ensure the continuation of threatened programs.
(2) Child care  Childcare  agencies funded at the lowest rates shall be given first priority for increases.
(e) The reimbursement system  plan shall provide for expansion of child development programs at no more than the standard reimbursement rate for that fiscal year.
(f) 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.
(g) (1) Notwithstanding subdivision (c) of Section 8265.5, on or before July 1, 2020, and annually thereafter, the department shall establish a reimbursement rate target for each contracting agency that meets quality standards pursuant to Sections 8203, 8208, 8244, 8261, 8264.7, 8360, and 8360.1, and any regulations adopted thereunder, based on all of the following elements:
(A) The regional market rate ceilings for the contracting agency’s county, as applicable, pursuant to paragraphs (1) and (2) of subdivision (b) of Section 8357.
(B) The quality adjustment factor for the age range of children proposed to be served by the contracting agency, as a multiplier, specified in paragraph (3).
(C) The program year and hours of service reimbursement factor pursuant to Section 8266.1, if applicable.
(D) Additional adjustment factors for special circumstances or services, pursuant to paragraphs (3) to (7), inclusive, of subdivision (c) of Section 8265.5, if applicable.
(2) A contracting agency’s rate target shall not be less than that agency’s 2018 rate, by age range, pursuant to Section 8265.5.
(3) The department, in order to meet the costs of providing quality standards pursuant to Sections 8203, 8208, 8244, 8261, 8264.7, 8360, and 8360.1, and any regulations adopted thereunder beyond those calculated in the regional market rate survey, shall establish quality adjustment factors for all of the following age ranges:
(A) For infants who are 0 to 18 months of age, the adjustment factor shall be 1.23.
(B) For toddlers who are 18 to 36 months of age, the adjustment factor shall be 1.23.
(C) For preschoolers who are 36 months to six years of age, the adjustment factor shall be 1.23.
(D) For schoolage children who are six years of age and older, the adjustment factor shall be 1.03.
(4) The reimbursement system plan shall include a formula for annually adjusting reimbursement rates for each agency, based on all of the following:
(A) The annual Budget Act funding allocated for standard reimbursement rate increases pursuant to this section.
(B) An equitable distribution of standard reimbursement rate increases to agencies, by county, as an equal percentage of the county outstanding rate target, for purposes of meeting the targets identified pursuant to this subdivision.
(C) Funding allocated for cost-of-living adjustments, if applicable.
(h) This section shall become inoperative on July 1, 2020, and, as of January 1, 2021, is repealed.

SEC. 2.

 Section 8265 is added to the Education Code, to read:

8265.
 (a) The Superintendent shall implement a reimbursement system plan that establishes reasonable standards and assigned reimbursement rates, which vary with the regional reimbursement ceiling adopted pursuant to Section 8357, a quality adjustment factor to address the cost of staffing ratios pursuant to Section 8264.8, the length of the program year, the hours of service, and any additional adjustment factors pursuant to paragraphs (1) to (5), inclusive, of subdivision (b) of Section 8265.5.
(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.
(3) The reimbursement system plan, including methodology, standards, county rate targets as established by the Superintendent pursuant to subdivision (g), and the total statewide funding amount necessary to reach annual rate targets for all agencies shall be annually submitted to the Joint Legislative Budget Committee, on or before November 10.
(4) The Superintendent may establish any regulations the Superintendent deems advisable concerning conditions of service and hours of enrollment for children in the programs.
(b) Commencing July 1, 2018, the standard reimbursement rate shall be eleven thousand nine hundred ninety-five dollars ($11,995) and, commencing with the 2019–20 fiscal year, shall be increased by the cost-of-living adjustment granted by the Legislature annually pursuant to Section 42238.15. Commencing July 1, 2018, the full-day state preschool reimbursement rate shall be twelve thousand seventy dollars ($12,070) and, commencing with the 2019–20 fiscal year, shall be increased by the cost-of-living adjustment granted by the Legislature annually pursuant to Section 42238.15.
(c) The reimbursement system 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) (1) The reimbursement system plan shall provide for adjusting reimbursement on a case-by-case basis, in order to maintain service levels for agencies. Assigned reimbursement rates shall be increased only on the basis of one or more of the following:
(A) Loss of program resources from other sources.
(B) Need of an agency to pay the same childcare rates as those prevailing in the local community.
(C) Increased costs directly attributable to new or different regulations.
(D) Documented increased costs necessary to maintain the prior year’s level of service and ensure the continuation of threatened programs.
(2) Childcare agencies funded at the lowest rates shall be given first priority for increases.
(e) The reimbursement system plan shall provide for expansion of child development programs at no more than the standard reimbursement rate for that fiscal year.
(f) 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.
(g) (1) Notwithstanding subdivision (b) of Section 8265.5, on or before July 1, 2020, and annually thereafter, the department shall establish a reimbursement rate target for each contracting agency that meets quality standards pursuant to Sections 8203, 8208, 8244, 8261, 8264.7, 8360, and 8360.1, and any regulations adopted thereunder, based on all of the following elements:
(A) The regional market rate ceilings for the contracting agency’s county, as applicable, pursuant to paragraphs (1) and (2) of subdivision (b) of Section 8357.
(B) The quality adjustment factor for the age range of children proposed to be served by the contracting agency, as a multiplier, specified in paragraph (3).
(C) The program year and hours of service reimbursement factor pursuant to Section 8266.1, if applicable.
(D) Additional adjustment factors for special circumstances or services, pursuant to paragraphs (1) to (5), inclusive, of subdivision (b) of Section 8265.5, if applicable.
(2) A contracting agency’s rate target shall not be less than that agency’s 2018 rate, by age range, pursuant to 8265.5.
(3) The department, in order to meet the costs of providing quality standards pursuant to Sections 8203, 8208, 8244, 8261, 8264.7, 8360, and 8360.1, and any regulations adopted thereunder beyond those calculated in the regional market rate survey, shall establish quality adjustment factors for all of the following age ranges:
(A) For infants who are 0 to 18 months of age, the adjustment factor shall be 1.23.
(B) For toddlers who are 18 to 36 months of age, the adjustment factor shall be 1.23.
(C) For preschoolers who are 36 months to six years of age, the adjustment factor shall be 1.23.
(D) For schoolage children who are six years of age and older, the adjustment factor shall be 1.03.
(4) The reimbursement system plan shall include a formula for annually adjusting reimbursement rates for each agency, based on all of the following:
(A) The annual Budget Act funding allocated for standard reimbursement rate increases pursuant to this section.
(B) An equitable distribution of standard reimbursement rate increases to agencies, by county, as an equal percentage of the county outstanding rate target, for purposes of meeting the targets identified pursuant to this subdivision.
(C) Funding allocated for cost-of-living adjustments, if applicable.
(h) This section shall become operative on July 1, 2020.

SEC. 3.

 Section 8265.5 of the Education Code is amended to read:

8265.5.
 (a) In order to reflect the additional expense of serving children who meet any of the criteria outlined in subdivision (c), the provider agency’s reported child days of enrollment for these children shall be multiplied by the adjustment factors listed below.
(b) (1) The  Except as provided in paragraph (2), the adjustment factors described in subdivision (c)   adjustment factors  shall apply to a full-day  state preschool program and those programs for which assigned reimbursement rates are at or below the standard reimbursement rate. In addition, the adjustment factors shall apply to those programs for which assigned reimbursement rates are above the standard reimbursement rate, but the reimbursement rate, as adjusted, shall not exceed the adjusted standard reimbursement rate. The adjustment factors shall apply to those full-day  state preschool programs for which assigned reimbursement rates are above the full-day  state preschool reimbursement rate, but the reimbursement rate, as adjusted, shall not exceed the adjusted full-day  state preschool reimbursement rate.
(2) The adjustment factors described in paragraphs (5) and (6) of subdivision (c) shall apply only for full-day preschool programs and those part-day preschool programs for which assigned reimbursement rates are at or below the standard reimbursement rate.
(c) Notwithstanding any other law, commencing January 1, 2019, the adjustment factors shall be as follows:
(1) For infants who are 0 to 18 months of age and are served in a child daycare center or a family childcare home, the adjustment factor shall be 2.44.
(2) For toddlers who are 18 to 36 months of age and are served in a child daycare center or a family childcare home, the adjustment factor shall be 1.8.
(3) For children with exceptional needs who are 0 to 21 years of age, the adjustment factor shall be 1.54.
(4) For severely disabled children who are 0 to 21 years of age, the adjustment factor shall be 1.93.
(5) For children at risk of neglect, abuse, or exploitation who are 0 to 14 years of age, the adjustment factor shall be 1.1.
(6) For limited-English-speaking and non-English-speaking children who are two years of age through kindergarten age, the adjustment factor shall be 1.1.
(7) For children who are served in a California state preschool program, infants and toddlers who are 0 to 36 months of age and are served in general childcare and development programs, or children who are 0 to 5 years of age and are served in a family childcare home education network setting funded by a general childcare and development program, where early childhood mental health consultation services are provided, pursuant to Section 8265.2, the adjustment factor shall be 1.05.
(d) Use of the adjustment factors shall not increase the provider agency’s total annual allocation.
(e) (1) Days of enrollment for children who meet more than one of the criteria outlined in paragraphs (1) to (6), inclusive, of subdivision (c) shall not be reported under more than one of the categories specified in those paragraphs.
(2) Notwithstanding paragraph (1), for children for whom an adjustment factor is applied pursuant to any of paragraphs (1) to (6), inclusive, of subdivision (c), and who are additionally eligible for the adjustment factor established in paragraph (7) of subdivision (c), reported child days of enrollment shall be multiplied by the sum of the applicable adjustment factor under paragraphs (1) to (6), inclusive, of subdivision (c) and 0.05.
(f) The difference between the reimbursement resulting from the use of the adjustment factors outlined in subdivision (c) and the reimbursement that would otherwise be received by a provider in the absence of the adjustment factors shall be used for special and appropriate services for each child for whom an adjustment factor is claimed.
(g) This section shall become inoperative on July 1, 2020, and, as of January 1, 2021, is repealed.

SEC. 4.

 Section 8265.5 is added to the Education Code, to read:

8265.5.
 (a) In order to reflect the additional expense of serving children who meet any of the criteria outlined in subdivision (b), the provider agency’s reported child days of enrollment for these children shall be multiplied by the adjustment factors listed below.
(b) Notwithstanding any other law, the adjustment factors shall be as follows:
(1) For children with exceptional needs who are 0 to 21 years of age, the adjustment factor shall be 1.54.
(2) For severely disabled children who are 0 to 21 years of age, the adjustment factor shall be 1.93.
(3) For children at risk of neglect, abuse, or exploitation who are 0 to 14 years of age, the adjustment factor shall be 1.1.
(4) For limited-English-speaking and non-English-speaking children who are two years of age through kindergarten age, the adjustment factor shall be 1.1.
(5) For children who are served in a California state preschool program, infants and toddlers who are 0 to 36 months of age and are served in general childcare and development programs, or children who are 0 to 5 years of age and are served in a family childcare home education network setting funded by a general childcare and development program, where early childhood mental health consultation services are provided, pursuant to Section 8265.2, the adjustment factor shall be 1.05.
(c) Use of the adjustment factors shall not increase the provider agency’s total annual allocation.
(d) (1) Days of enrollment for children who meet more than one of the criteria outlined in paragraphs (1) to (4), inclusive, of subdivision (b) shall not be reported under more than one of the categories specified in those paragraphs.
(2) Notwithstanding paragraph (1), for children for whom an adjustment factor is applied pursuant to any of paragraphs (1) to (4), inclusive, of subdivision (b), and who are additionally eligible for the adjustment factor established in paragraph (5) of subdivision (b), reported child days of enrollment shall be multiplied by the sum of the applicable adjustment factor under paragraphs (1) to (4), inclusive, of subdivision (b) and 0.05.
(e) The difference between the reimbursement resulting from the use of the adjustment factors outlined in subdivision (b) and the reimbursement that would otherwise be received by a provider in the absence of the adjustment factors shall be used for special and appropriate services for each child for whom an adjustment factor is claimed.
(f) This section shall become operative on July 1, 2020.

SEC. 5.

 Section 8266.1 of the Education Code is amended to read:

8266.1.
 Commencing with the 1995–96 fiscal year and each fiscal year thereafter, for the  purposes of this chapter, reimbursement rates shall be adjusted by the following reimbursement factors for childcare and development programs with a standard reimbursement rate, but shall not apply to the Resource resource  and Referral Programs referral programs  set forth in Article 2 (commencing with Section 8210), the Alternative Payment Programs alternative payment programs  set forth in Article 3 (commencing with Section 8220), the part-day California state preschool programs set forth in Article 7 (commencing with Section 8235), the schoolage community childcare services programs set forth in Article 22 (commencing with Section 8460), or to the schoolage parent and infant development programs:
(a) For childcare and development providers serving children for less than four hours per day, the reimbursement factor is 55 50  percent of the standard reimbursement rate.
(b) For childcare and development program providers serving children for not less than four hours per day, and less than six and one-half hours per day, the reimbursement factor is 75 percent of the standard reimbursement rate. For childcare and development program  providers operating under the At Risk Child Care Program set forth in  Article 15.5 (commencing with Section 8350) and serving children for not less than four hours per day, and less than seven hours per day, the reimbursement factor is 75 percent of the standard reimbursement rate.
(c) For childcare and development program providers serving children for not less than six 6  and one-half hours per day, and less than 10 and one-half hours per day, the reimbursement factor is 100 percent of the standard reimbursement rate. For childcare and development program  providers operating under the At Risk Child Care Program set forth in  Article 15.5 (commencing with Section 8350) and serving children for not less than seven 7  hours per day, and less than 10 hours per day, the reimbursement factor is 100 percent of the standard reimbursement rate.
(d) For childcare and development program providers serving children for 10 and one-half hours or more per day, the reimbursement factor is 118 percent of the standard reimbursement rate.
SEC. 6.
 This act shall become operative only if Senate Bill 174 of the 2019–20 Regular Session is enacted and becomes effective on or before January 1, 2020.