Today's Law As Amended


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AB-131 Child development programs.(2021-2022)



As Amends the Law Today


SECTION 1.

 The heading of Chapter 2 (commencing with Section 8200) of Part 6 of Division 1 of Title 1 of the Education Code is amended to read:

CHAPTER  2. Early Education Act

SEC. 2.

 Section 8200 of the Education Code is amended to read:

8200.
 This chapter shall be known and may be cited as the Early Education Act.

SEC. 3.

 Section 8201 of the Education Code is amended to read:

8201.
 The purpose of this chapter is as follows:
(a) To provide an inclusive and cost-effective preschool program that provides high-quality learning experiences, coordinated services, and referrals for families to access health and social-emotional support services through full- and part-day programs.
(b) To encourage community-level coordination in support of preschool and early childhood services.
(c) To provide an inclusive, developmentally appropriate, and culturally and linguistically responsive preschool environment that is nurturing for all children in the programs.
(d) To provide family engagement activities that support positive parenting practices and enhance understanding of human growth and development.
(e) To promote strengthening families and access to resources that prevent and address child abuse, neglect, or exploitation.
(f) To support the cognitive and social emotional development of all children, including children with exceptional needs, children experiencing developmental delays, and children experiencing trauma.
(g) To promote and support home language and development of multilingual capabilities to ensure all children attain their full potential.
(h) To establish a framework that promotes equitable access to quality early learning experiences through the expansion of preschool services.
(i) To empower parents and family choice by providing information and resources for choosing a high-quality preschool program that meets the needs of the family.
(j) To inform parents and families of their right to understand and evaluate the quality and health and safety requirements of the preschool program.

SEC. 4.

 Section 8202 of the Education Code is amended to read:

8202.
 It is the intent of the Legislature that:
(a) All families have equitable access to a high-quality preschool program, regardless of race or ethnic status, cultural, religious, or linguistic background, family composition, or children with exceptional needs. It is further the intent that subsidized preschool services be provided to persons meeting the eligibility criteria established under this chapter to the extent funding is made available by the Legislature and Congress.
(b) The physical, cognitive, social, and emotional growth and development of preschool children be supported in a healthy, developmentally, and culturally appropriate manner.
(c) Families are supported to seek opportunities through employment, training, and education to attain financial stability, while maximizing learning opportunities for their children through participation in preschool programs.
(d) Local- and community-level coordination of various funding streams and programs to support preschool services and preschool to third-grade alignment.
(e) Programs allow for maximum involvement of families in planning, implementation, operation, and evaluation of preschool programs, recognizing that parent and family engagement is integral to the well-being of the child.
(f) Parents and families be fully informed of their rights and responsibilities to evaluate the quality and safety of preschool programs, including, but not limited to, their right to inspect childcare licensing files.
(g) Planning for expansion of preschool programs based on ongoing, coordinated, and comprehensive local needs assessments and other state-level data.
(h) Support for staff, including administrators, program directors, site supervisors, and teachers, to reduce bias through professional development opportunities.
(i) Investments in preschool programs be leveraged to improve equity and reduce the opportunity gap through a targeted universalism approach.
(j) Preschool programs provide fully inclusive early learning experiences that contribute to closing the school readiness gap, especially for children from low-income families, children with exceptional needs, and children who are dual language learners, and partner with elementary schools to support smooth transitions and sustain early learning gains.
(k) The Superintendent of Public Instruction, in providing funding to agencies offering preschool programs, promote a range of services that will allow parents the opportunity to choose the type of care most suited to their needs. The program scope may include the following:
(1) Programs located in childcare centers or family childcare homes.
(2) Services provided part day or full day.
(l) The Superintendent of Public Instruction be responsible for the establishment of a public hearing process or other public input process that ensures the participation of those agencies directly affected by a particular section or sections of this chapter.

SEC. 5.

 Section 8203 of the Education Code is amended to read:

8203.
 The Superintendent of Public Instruction  shall develop standards for the implementation of high-quality preschool programs. Indicators of quality shall include, but not be limited to:
(a) A physical environment that is safe and appropriate for preschool children and that meets applicable licensing standards.
(b) Program activities and services that are age appropriate for preschool children and meet the developmental needs of each child.
(c) Program activities and services that meet the cultural and linguistic needs of children and families, including, but not limited to, program activities and services that meet the need of dual language learners for support in the development of their home language and English. families. 
(d) Family engagement including, but not limited to, opportunities to participate on parent advisory committees and parent education.
(e) Community engagement, coordination, and local partnerships that support successful transitions from preschool to the early elementary grades.
(f) Efficient and effective local program administration.
(g) Staff that possesses the appropriate and required qualifications,  qualifications or  experience, or training, or a combination thereof.  both.  The appropriate staff qualifications shall reflect the diverse linguistic and cultural makeup of the children and families in the preschool program. The use of intergenerational staff shall be encouraged.
(h) The promotion of inclusive experiences through program activities and support for parents to access services that meet the needs of children with exceptional needs and their families.
(i) Support services for children, families, and early learning staff and administrators.
(j) Program activities that support equity by eliminating implicit bias, exclusionary discipline practices, and discrimination through staff development and training.
(k) Provision for nutritional needs of children, including nutrition education at preschool and, when appropriate, shared resource for families.
(l) Social services that include, but are not limited to, identification of child and family needs and referral to appropriate agencies.
(m) Health services that include referral of children to appropriate agencies for services.

SEC. 6.

 Section 8203.1 of the Education Code is amended to read:

8203.1.
 (a) The Superintendent shall administer a QRIS block grant, pursuant to an appropriation made for that purpose in the annual Budget Act, to be allocated to local consortia for support of local early learning quality rating and improvement systems that increase the number of low-income children in high-quality preschool programs that prepare those children for success in school and life.
(b) (1) For purposes of this section, “early learning quality rating and improvement system” or “QRIS” is defined as a locally determined system for continuous quality improvement based on a tiered rating structure with progressively higher quality standards for each tier that provides supports and incentives for programs, teachers, and administrators to reach higher levels of quality, monitors and evaluates the impacts on child outcomes, and disseminates information to parents and the public about program quality.
(2) For purposes of this section, “local consortium” is defined as a local or regional entity, administered by a lead agency, that convenes a planning body that designs and implements a QRIS. A local consortium shall include representatives from organizations including, but not limited to, all of the following:
(A) Local educational agencies.
(B) First 5 county commissions.
(C) Higher educational institutions.
(D) Local childcare and development planning councils.
(E) Local resource and referral agencies.
(F) Alternative payment programs.
(G) Other local agencies, as appropriate, which may include, but are not limited to, nonprofit organizations, that provide services to children from birth to five years of age, inclusive, tribal representatives, childcare licensing regional offices, special education local plan area, the county social services department, the local public health department, the local behavioral health department, regional centers, and Head Start and Early Head Start grantees.
(3) For purposes of this section, “quality continuum framework” means the tiered rating matrix created and adopted by a local consortium for purposes of implementing a QRIS. The tiered rating matrix shall include three common tiers shared by all participating local consortia. Changes to the common tiers shall be approved and adopted by all participating local consortia.
(c) The QRIS block grant shall build on local consortia and other local QRIS work in existence on or before the operative date of this section.
(d) For the 2014–15 fiscal year, if a county or region has an established local consortium that has adopted a quality continuum framework, the local consortium’s lead administering agency shall be provided the first opportunity to apply for a QRIS block grant.
(e) Local consortia shall do all of the following to be eligible for a QRIS block grant:
(1) Implement a QRIS that incorporates evidence-based elements and tools in the quality continuum framework that are tailored to the local conditions and enhanced with local resources.
(2) Set ambitious yet achievable targets for California state preschool program contracting agencies’ participation in the QRIS with the goal of achieving the highest common tier, as the tier existed on June 1, 2014, or a higher level of quality.
(3) Develop an action plan that includes a continuous quality improvement process that is tied to improving child outcomes.
(4) Describe how QRIS block grant funds will be used to increase the number of sites achieving the highest common local tier and to directly support classrooms that have achieved the highest common tier, as that tier existed on June 1, 2014, or a higher level of quality.
(5) Develop information and resources that help families understand why preschool matters and how to identify a quality preschool program that meets the needs of the family.
(f) The Superintendent, in consultation with the executive director of the state board, shall allocate QRIS block grant funds to local consortia that satisfy the requirements of subdivision (e) based on the number of California state preschool program slots within the county or region.
(g) (1) Local consortia receiving QRIS block grant funds shall allocate those funds to contracting agencies of the California state preschool program, as established by Article 2 (commencing with Section 8207), or local educational agencies, for activities that support and improve quality, and assess quality and access. In allocating the QRIS block grant funds, priority shall be given to directly supporting the classrooms of the California state preschool program sites that have achieved the highest common local tier of quality.
(2) No more than 20 percent of a local consortium’s QRIS block grant funds may be used for assessment and access projects.
(h) A family childcare home education network that provides California state preschool program services shall be eligible for an allocation from a local consortium of QRIS block grant funds for activities that support, improve, and assess quality.

SEC. 7.

 Section 8203.3 of the Education Code is amended to read:

8203.3.
 (a) The department, in consultation with the State Department of Social Services, shall maintain and update the prekindergarten learning development guidelines. The guidelines shall focus on preparing three-, four-,  four-  and five-year-old children for kindergarten. The guidelines shall identify appropriate developmental milestones for each age, how to assess where children are in relation to the milestones, and suggested methods for achieving the milestones. In addition, the guidelines shall identify any basic beginning skills needed to prepare children for kindergarten or first grade, and methods for teaching these basic skills. The guidelines shall be articulated with the academic content and performance standards adopted by the State Board of Education for kindergarten and grades 1 to 12, inclusive. The department may contract with an appropriate public or private agency to develop the guidelines.
(b) In future expenditure plans for quality improvement activities, the State Department of Social Services shall include funding for periodically updating the guidelines consistent with academic and performance standards and relevant research, broadly distributing the guidelines, and providing education, outreach, and training services to implement the guidelines.
(c) Programs funded by the department under this chapter shall use the prekindergarten learning development guidelines developed pursuant to this section.

SEC. 8.

 Section 8203.5 of the Education Code is amended to read:

8203.5.
 (a) The Superintendent shall ensure that each contract entered into under this chapter to provide preschool services, or to facilitate the provision of those services, provides support to the public school system of this state through the delivery of appropriate educational services to the children served pursuant to the contract.
(b) The Superintendent shall ensure that all contracts for preschool programs include a requirement that each public or private provider maintain a developmental profile to appropriately identify the emotional, social, physical, and cognitive growth of each child served in order to promote the child’s success in the public schools. To the extent possible, the department shall provide a developmental profile to all public and private providers using existing profile instruments that are most cost efficient. The provider of any program operated pursuant to a contract under Section 8233 shall be responsible for maintaining developmental profiles upon entry through exit from a child development program.
(c) This section is not subject to Part 34 (commencing with Section 62000) of Division 4 of Title 2.

SEC. 9.

 Section 8204 of the Education Code is amended to read:

8204.
 In recognition of the demonstrated relationship between food and good nutrition and the capacity of children to develop and learn, it is the policy of this state that no child shall be hungry while in attendance in a preschool facility, as defined in Section 8205, and that preschool programs have an obligation to provide for the nutritional needs of children in attendance.

SEC. 10.

 Section 8205 of the Education Code is repealed.

8205.
 As used in this chapter:
(a) “Applicant or contracting agency” means a school district, community college district, college or university, county superintendent of schools, county, city, public agency, private nontax-exempt agency, private tax-exempt agency, or other entity that is authorized to establish, maintain, or operate services pursuant to this chapter. Private agencies and parent cooperatives, duly licensed by law, shall receive the same consideration as any other authorized entity with no loss of parental decisionmaking prerogatives as consistent with the provisions of this chapter.
(b) “Assigned reimbursement rate” is that rate established by the contract with the agency in accordance with Section 8242.
(c) “Attendance” means the number of children present at a preschool facility. “Attendance,” for purposes of reimbursement, includes excused absences by children because of illness, quarantine, illness or quarantine of their parent, family emergency, or to spend time with a parent or other relative as required by a court of law or that is clearly in the best interest of the child.
(d) “Capital outlay” means the amount paid for the renovation and repair of childcare and development and preschool facilities to comply with state and local health and safety standards, and the amount paid for the state purchase of relocatable childcare and development and preschool facilities for lease to qualifying contracting agencies.
(e) “Preschool facility” means a residence or building or part thereof in which preschool services are provided.
(f) “Early childhood programs” means those programs that offer a full range of services for children from infancy to 13 years of age, for any part of a day, by a public, private, or proprietary agency, in centers and family childcare homes.
(g) “Children at risk of abuse, neglect, or exploitation” means children who are so identified in a written referral from a legal, medical, or social service agency, or emergency shelter.
(h) “Children with exceptional needs” means either of the following:
(1) Children under three years of age who have been determined to be eligible for early intervention services pursuant to the California Early Intervention Services Act (Title 14 (commencing with Section 95000) of the Government Code) and its implementing regulations. These children include an infant or toddler with a developmental delay or established risk condition, or who is at high risk of having a substantial developmental disability, as defined in subdivision (a) of Section 95014 of the Government Code. These children shall have active individualized family service plans and shall be receiving early intervention services.
(2) Children 3 to 21 years of age, inclusive, who have been determined to be eligible for special education and related services by an individualized education program team according to the special education requirements contained in Part 30 (commencing with Section 56000) of Division 4 of Title 2, and who meet eligibility criteria described in Section 56026 and, Article 2.5 (commencing with Section 56333) of Chapter 4 of Part 30 of Division 4 of Title 2, and Sections 3030 and 3031 of Title 5 of the California Code of Regulations. These children shall have an active individualized education program and shall be receiving early intervention services or appropriate special education.
(i) “Cost” includes, but is not limited to, expenditures that are related to the operation of preschool programs. “Cost” may include a reasonable amount for state and local contributions to employee benefits, including approved retirement programs, agency administration, and any other reasonable program operational costs. “Cost” may also include amounts for licensable facilities in the community served by the program, including lease payments or depreciation, downpayments, and payments of principal and interest on loans incurred to acquire, rehabilitate, or construct licensable facilities, but these costs shall not exceed fair market rents existing in the community in which the facility is located. “Reasonable and necessary costs” are costs that, in nature and amount, do not exceed what an ordinary prudent person would incur in the conduct of a competitive business.
(j) “Elementary school,” as contained in former Section 425 of Title 20 of the United States Code (the National Defense Education Act of 1958, Public Law 85-864, as amended), includes early childhood education programs and all child development programs, for the purpose of the cancellation provisions of loans to students in institutions of higher learning.
(k) “Family childcare home education network” means an entity organized under law that contracts with the department to make payments to licensed family childcare home providers and to provide educational and support services to those providers and to children and families eligible for California state preschool program services.
(l) “Health services” include, but are not limited to, all of the following:
(1) Referral, whenever possible, to appropriate health care providers able to provide continuity of medical care.
(2) Health screening and health treatment, including a full range of immunization recorded on the appropriate state immunization form to the extent provided by the Medi-Cal Act (Chapter 7 (commencing with Section 14000) of Part 3 of Division 9 of the Welfare and Institutions Code) and the Child Health and Disability Prevention Program (Article 6 (commencing with Section 124025) of Chapter 3 of Part 2 of Division 106 of the Health and Safety Code), but only to the extent that ongoing care cannot be obtained utilizing community resources.
(3) Health education and training for children, parents, staff, and providers.
(4) Followup treatment through referral to appropriate health care agencies or individual health care professionals.
(m) “Higher educational institutions” means the Regents of the University of California, the Trustees of the California State University, the Board of Governors of the California Community Colleges, and the governing bodies of any accredited private nonprofit institution of postsecondary education.
(n) “Intergenerational staff” means persons of various generations.
(o) “Dual language learner children” means children whose first language is a language other than English or children who are developing two or more languages, one of which may be English.
(p) “Parent” means a biological parent, stepparent, adoptive parent, foster parent, caretaker relative, or any other adult living with a child who has responsibility for the care and welfare of the child.
(q) “Program director” means a person who, pursuant to Section 8298, is qualified to serve as a program director.
(r) “Proprietary agency” means an organization or facility providing preschool, which is operated for profit.
(s) “Children with severe disabilities” are children with exceptional needs from birth to 21 years of age, inclusive, who require intensive instruction and training in programs serving pupils with the following profound disabilities: autism, blindness, deafness, severe orthopedic impairments, serious emotional disturbances, or severe intellectual disabilities. “Children with severe disabilities” also include those individuals who would have been eligible for enrollment in a developmental center for handicapped pupils under Chapter 6 (commencing with Section 56800) of Part 30 of Division 4 of Title 2 as it read on January 1, 1980.
(t) (1) “Site supervisor” means a person who, regardless of their title, has operational program responsibility for an early childhood program at a single site.
(2) A site supervisor shall satisfy one of the following:
(A) Hold a permit issued by the Commission on Teacher Credentialing that authorizes supervision of a childcare and development program operating in a single site.
(B) Hold an administrative credential or an administrative services credential issued by the Commission on Teacher Credentialing.
(C) Meet the qualifications of a program director under Section 8298.
(3) The Superintendent may waive the requirements of this subdivision if the Superintendent determines that the existence of compelling need is appropriately documented.
(u) “Standard reimbursement rate” means the reimbursement rate applicable to California state preschool programs pursuant to Section 8242.
(v) “Startup costs” means those expenses an agency incurs in the process of opening a new or additional facility before the full enrollment of children.
(w) “California state preschool program” means those programs that offer part-day or full-day, or both, educational programs for eligible three- and four-year-old children. These programs may be offered by a public, private, or proprietary agency, and operated in childcare centers or family childcare homes operating through a family childcare home education network.
(x) “Support services” means those services that, when combined with preschool services, help promote the healthy physical, mental, social, and emotional growth of children. Support services may include, but are not limited to: protective services, parent training, provider and staff training, transportation, parent and child counseling, child development resource and referral services, and child placement counseling.
(y) “Teacher” means a person with the appropriate permit issued by the Commission on Teacher Credentialing who provides program supervision and instruction that includes supervision of a number of aides, volunteers, and groups of children.
(z) “Underserved area” means a county or subcounty area, including, but not limited to, school districts, census tracts, or ZIP Code areas, where the ratio of publicly subsidized preschool program services to the need for these services is low, as determined by the Superintendent.
(aa) “Three-year-old children” means children who will have their third birthday on or before December 1 of the fiscal year in which they are enrolled in a California state preschool program. Children who have their third birthday on or after December 2 of the fiscal year, may be enrolled in a California state preschool program on or after their third birthday. Any child under four years of age shall be served in a California state preschool program facility, licensed in accordance with Title 22 of the California Code of Regulations.
(ab) “Four-year-old children” means children who will have their fourth birthday on or before December 1 of the fiscal year in which they are enrolled in a California state preschool program, or a child whose fifth birthday occurs after September 1 of the fiscal year in which they are enrolled in a California state preschool and whose parent or guardian has opted to retain or enroll them in a California state preschool program.
(ac) “Homeless children and youth” has the same meaning as defined in Section 11434a(2) of the federal McKinney-Vento Homeless Assistance Act (42 U.S.C. Sec. 11301 et seq.).
(ad) “Local educational agency” means a school district, a county office of education, a community college district, or a school district acting on behalf of one or more schools within the school district.
(ae) “Funded enrollment” means the number of subsidized children funded to be enrolled, based on the maximum reimbursable amount, contract rate, inclusive of any adjustment factors, and approved program calendar, by a California state preschool program contractor.
(af) (1) Effective no later than March 1, 2024, “part-time” means preschool services certified for a child for fewer than 25 hours per week.
(2) Effective no later than March 1, 2024, “full-time” means preschool services certified for a child for 25 or more hours per week.
(3) Notwithstanding the rulemaking provisions of the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code) and Section 33308.5, until regulations are filed with the Secretary of State to implement this subdivision, the department may implement this subdivision through management bulletins or similar letters of instruction on or before December 31, 2023.
(4) The department shall initiate a rulemaking action to adopt regulations to implement this subdivision no later than July 1, 2026.
(5) If the provisions of this subdivision are in conflict with the provisions of a memorandum of understanding reached pursuant to Section 10426 of the Welfare and Institutions Code, the memorandum of understanding shall be controlling without further legislative action, except that if such provisions of a memorandum of understanding require the expenditure of funds, the provisions shall not become effective unless approved by the Legislature in the annual Budget Act.
(ag) This section shall become operative on July 1, 2027.

SEC. 11.

 Section 8206 of the Education Code is repealed.

8206.
 (a) If a state of emergency is declared by the Governor, the Superintendent may waive any requirements of this code or regulations adopted pursuant to this code relating to preschool programs operated pursuant to this chapter only to the extent that enforcement of the regulations or requirements would directly impede disaster relief and recovery efforts or would disrupt the current level of service in preschool programs.
(b) A waiver granted pursuant to subdivision (a) shall not exceed 45 calendar days.
(c) For purposes of this section, “state of emergency” includes, but is not limited to, fire, flood, earthquake, or a period of civil unrest.
(d) If a request for a waiver pursuant to subdivision (a) is for a childcare and development program, preschool program, or child nutrition program that receives federal funds and the waiver may be inconsistent with the state plan or any federal law or regulations governing the program, the Superintendent shall seek and obtain approval of the waiver from the appropriate federal agency before granting the waiver.
(e) (1) From July 1, 2020, to June 30, 2021, inclusive, due to the ongoing impacts of childcare and development facility closures and low child attendance due to the COVID-19 pandemic and related public health directives, the Superintendent shall reimburse a contracting agency for a California state preschool program pursuant to former Article 7 (commencing with Section 8235), a general childcare and development program pursuant to former Article 8 (commencing with Section 8240), a family childcare home education network pursuant to former Article 8.5 (commencing with Section 8245), a migrant childcare and development program pursuant to former Article 6 (commencing with Section 8230), or childcare and development services for children with special needs pursuant to former Article 9 (commencing with Section 8250) that meets one of the following requirements:
(A) The program operated by the contracting agency opens by September 8, 2020, or within 21 calendar days from the start date of the contracting agency’s 2020–21 program calendar approved by the department, whichever is sooner, and remains open and offering services through the 2020–21 program year.
(B) The program operated by the contracting agency is closed by local or state public health order or guidance due to the COVID-19 pandemic.
(C) (i) The program operates on the campus of a local educational agency that is closed by local or state public health guidance or order and the local educational agency has required the early learning and care program to close.
(ii) To ensure continuity of care and access to services during the COVID-19 pandemic, the governing board or body of the local educational agency requiring a closure pursuant to clause (i) shall discuss in a public hearing and prepare a plan for safely reopening early learning and care programs as soon as safely possible, but no later than when local education agency campuses open for in-person instruction.
(2) Reimbursement pursuant to paragraph (1) shall be 100 percent of the contract maximum reimbursable amount or net reimbursable program costs, whichever is less, pursuant to guidance released by the Superintendent.
(3) A childcare program specified in paragraph (1) that is physically closed pursuant to subparagraph (B) or (C) of paragraph (1) due to the COVID-19 pandemic, but funded to be operational, shall provide distance learning services as specified by the Superintendent. A contractor specified in paragraph (1) shall submit a distance learning plan to the department pursuant to guidance from the Superintendent.

SEC. 12.

 Section 8206.1 of the Education Code is repealed.

SEC. 13.

 Section 8206.2 of the Education Code is repealed.

SEC. 14.

 Section 8206.6 of the Education Code is repealed.

SEC. 15.

 Section 8207 of the Education Code is repealed.

8207.
 (a) The Superintendent shall administer all California state preschool programs. Those programs shall include, but not be limited to, part-day and full-day age and developmentally appropriate programs, offered through childcare centers and family childcare home education networks, that are designed to facilitate the transition to kindergarten for two-, three-, and four-year-old children and that provide early learning and care, health services, social services, nutritional services, parent education and parent participation, evaluation, and staff development, and that comply with all applicable statutory and regulatory requirements. Preschool programs for which federal reimbursement is not available shall be funded as prescribed by the Legislature in the annual Budget Act, and unless otherwise specified by the Legislature, shall not use federal funds made available through Title XX of the federal Social Security Act (42 U.S.C. Sec. 1397).
(b) A part-day California state preschool program shall operate for a minimum of (1) three hours per day, excluding time for home-to-school transportation, and (2) a minimum of 175 days per year, unless the contract specifies a lower number of days of operation.
(c) A full-day California state preschool program shall operate for a minimum of 246 days per year, unless the contract specifies a lower number of days of operation.
(d) Any agency described in subdivision (a) of Section 8205 as an “applicant or contracting agency” is eligible to contract to operate a California state preschool program.
(e) 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.
(f) Federal Head Start funds used to provide services to families receiving California state preschool services shall be deemed nonrestricted funds.
(g) School districts and charter schools that administer a California state preschool program may place four-year-old children in a transitional kindergarten program classroom in accordance with subdivisions (h) to (j), inclusive, of Section 48000.
(h) California state preschool programs shall include all of the following:
(1) Age- and developmentally appropriate activities for children.
(2) Supervision.
(3) Parenting education and parent engagement.
(4) Social services that include, but are not limited to, identification of child and family needs and referral to appropriate agencies.
(5) Health services.
(6) Nutrition.
(7) Training and career ladder opportunities, documentation of which shall be provided to the department.
(i) The Superintendent shall adopt rules and regulations related to the administration of this chapter, including rules and regulations related to eligibility, enrollment, and priority of services. Regulations shall also 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 have exceptional needs.
(j) This section shall become inoperative on July 1, 2027, and, as of January 1, 2028, is repealed.

SEC. 16.

 The heading of Article 2 (commencing with Section 8207) is added to Chapter 2 of Part 6 of Division 1 of Title 1 of the Education Code, to read:

Article  2. Program Administration

SEC. 17.

 Section 8208 of the Education Code is amended and renumbered to read:

8208. 8205. 
 As used in this chapter:
(a) (1) “Applicant  A child is eligible for the part-day California state preschool program if both of the following requirements are met:  or contracting agency” means a school district, community college district, college or university, county superintendent of schools, county, city, public agency, private nontax-exempt agency, private tax-exempt agency, or other entity that is authorized to establish, maintain, or operate services pursuant to this chapter. Private agencies and parent cooperatives, duly licensed by law, shall receive the same consideration as any other authorized entity with no loss of parental decisionmaking prerogatives as consistent with the provisions of this chapter. 
(A) (b)  The child is one of the following: “Assigned reimbursement rate” is that rate established by the contract with the agency and is derived by dividing the total dollar amount of the contract by the minimum child day of average daily enrollment level of service required. 
(i) (c)  A two-year-old child and the California state preschool program has chosen to enroll the two-year-old child in accordance with the guidance developed pursuant to Section 8207.1. “Attendance” means the number of children present at a preschool facility. “Attendance,” for purposes of reimbursement, includes excused absences by children because of illness, quarantine, illness or quarantine of their parent, family emergency, or to spend time with a parent or other relative as required by a court of law or that is clearly in the best interest of the child. 
(ii) A three-year-old child.
(iii) (d)  A four-year-old child. “Capital outlay” means the amount paid for the renovation and repair of childcare and development and preschool facilities to comply with state and local health and safety standards, and the amount paid for the state purchase of relocatable childcare and development and preschool facilities for lease to qualifying contracting agencies. 
(iv) (e)  Enrolled in kindergarten pursuant to Section 48000. “Preschool facility” means a residence or building or part thereof in which preschool services are provided. 
(f) “Early childhood programs” means those programs that offer a full range of services for children from infancy to 13 years of age, for any part of a day, by a public, private, or proprietary agency, in centers and family childcare homes.
(g) “Children at risk of abuse, neglect, or exploitation” means children who are so identified in a written referral from a legal, medical, or social service agency, or emergency shelter.
(B) (h)  The child’s family is one  “Children with exceptional needs” means either  of the following:
(i) A current aid recipient.
(ii) Income eligible.
(iii) Homeless.
(iv) One whose children are recipients of child protective services, or whose children have been identified as being abused, neglected, or exploited, or at risk of being abused, neglected, or exploited.
(v) (I) One that has children with exceptional needs, as defined in Section 8205.
(II) Only the children in the family who are children with exceptional needs may be enrolled under the eligibility criteria of this clause. Any other child in the family without exceptional needs may be enrolled pursuant to any of the criteria established in clauses (i) to (iv), inclusive.
(vi) (1)  One who has a member of its household who is certified to receive benefits from Medi-Cal, CalFresh, the California Food Assistance Program, the California Special Supplemental Nutrition Program for Women, Infants, and Children, the federal Food Distribution Program on Indian Reservations, Head Start, Early Head Start, or any other designated means-tested government program, as determined by the department. Children eligible for services pursuant to this subparagraph shall be prioritized by the income declared on the application for the means-tested government program. Children under three years of age who have been determined to be eligible for early intervention services pursuant to the California Early Intervention Services Act (Title 14 (commencing with Section 95000) of the Government Code) and its implementing regulations. These children include an infant or toddler with a developmental delay or established risk condition, or who is at high risk of having a substantial developmental disability, as defined in subdivision (a) of Section 95014 of the Government Code. These children shall have active individualized family service plans, shall be receiving early intervention services, and shall be children who require the special attention of adults in a childcare setting. 
(2) Notwithstanding any other law, a part-day California state preschool program may provide services to children in families whose income is no more than 15 percent above the income eligibility threshold, as described in Section 8213, after all eligible two-, three-, and four-year-old children have been enrolled. No more than 10 percent of children enrolled, calculated throughout the participating program’s entire contract, may be filled by children in families above the income eligibility threshold.
(3) Notwithstanding Section 8213, after all otherwise eligible children have been enrolled as provided in paragraphs (1) and (2), a part-day California state preschool program may provide services to two-, three-, and four-year-old children in families whose income is above the income eligibility threshold if those children are children with exceptional needs. Children receiving services pursuant to this paragraph shall not count towards the 10-percent limit in paragraph (2).
(4) Notwithstanding any other law, after all otherwise eligible children have been enrolled as provided in paragraphs (1) to (3), inclusive, a provider operating a part-day state preschool program within the attendance boundary of a public school, as set forth in Section 8217, may enroll two-, three-, and four-year-old children.
(b) A part-day California state preschool program contracting agency shall certify eligibility and enroll families into their program within 120 calendar days prior to the first day of the beginning of the new preschool year. Subsequent to enrollment, a child shall be deemed eligible for a part-day California state preschool program for the remainder of the program year and for the following program year, as long as applicable age-eligibility requirements are met, as specified in Sections 8205 and 48000.
(c) (1) Commencing July 1, 2022, at least 5 percent of a part-day California state preschool program contracting agency’s funded enrollment shall be reserved for children with exceptional needs, as defined in Section 8205.
(2) (A) The department shall review data on compliance and provide technical assistance to California state preschool program contracting agencies to assist them in meeting the requirement described in paragraph (1).
(B) Agencies shall be fully funded for the percentage of enrollment specified in paragraph (1), inclusive of the exceptional needs adjustment factor for that enrollment pursuant to Section 8244, to ensure funding is available to enroll children with exceptional needs within the set aside specified in paragraph (1) at any point during the fiscal year. An agency not meeting the requirement to fill the percent of funded enrollment specified in paragraph (1) with children with exceptional needs shall conduct community outreach to special education partners to recruit additional children with exceptional needs into their programs.
(C) (i) Any agency not meeting the applicable requirement described in clause (ii) may be put on a conditional contract as described in Section 8314 unless they have applied and been approved for a waiver pursuant to clause (iii).
(ii) On and after July 1, 2026, any agency not meeting the 5-percent requirement pursuant to paragraph (1).
(iii) The Superintendent shall create an ongoing waiver process for an agency not able to meet the requirement described in paragraph (1).
(3) (2)  Children with exceptional needs attending California state preschool programs shall be educated in the least restrictive environment in accordance with Section 1412(a)(5)(A) 3 to 21 years of age, inclusive, who have been determined to be eligible for special education and related services by an individualized education program team according to the special education requirements contained in Part 30 (commencing with Section 56000) of Division 4 of Title 2, and who meet eligibility criteria described in Section 56026 and, Article 2.5 (commencing with Section 56333) of Chapter 4 of Part 30 of Division 4 of Title 2, and Sections 3030 and 3031 of Title 5 of the California Code of Regulations. These children shall have an active individualized education program, shall be receiving early intervention services or appropriate special education and related services, and shall be children who require the special attention of adults in a childcare setting. These children include children with intellectual disabilities, hearing impairments (including deafness), speech or language impairments, visual impairments (including blindness), serious emotional disturbance (also referred to as emotional disturbance), orthopedic impairments, autism, traumatic brain injury, other health impairments, or specific learning disabilities, who need special education and related services consistent with Section 1401(3)(A)  of Title 20 of the United States Code.
(4) (A) Notwithstanding the rulemaking provisions of the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code) and Section 33308.5, until regulations are filed with the Secretary of State to implement this subdivision, the department shall implement this subdivision through management bulletins or similar letters of instruction on or before December 31, 2022.
(B) The department shall initiate a rulemaking action to implement this subdivision on or before December 31, 2023.
(d) (1) A child is eligible for a full-day California state preschool program if all of the following requirements are met:
(A) The child is one of the following:
(i) A two-year-old child and the California state preschool program has chosen to enroll the two-year-old child in accordance with the guidance developed pursuant to Section 8207.1.
(ii) A three-year-old child.
(iii) A four-year-old child.
(B) The child’s family is one of the following:
(i) A current aid recipient.
(ii) Income eligible.
(iii) Homeless.
(iv) One whose children are recipients of child protective services, or whose children have been identified as being abused, neglected, or exploited, or at risk of being abused, neglected, or exploited.
(v) (I) One that has children with exceptional needs, as defined in Section 8205.
(II) Only the children in the family who are children with exceptional needs may be enrolled under the eligibility criteria of this clause. Any other child in the family without exceptional needs may be enrolled pursuant to any of the criteria established in clauses (i) to (iv), inclusive.
(vi) (i)  One who has a member of its household who is certified to receive benefits from Medi-Cal, CalFresh, the California Food Assistance Program, the California Special Supplemental Nutrition Program for Women, Infants, and Children, the federal Food Distribution Program on Indian Reservations, Head Start, Early Head Start, or any other designated means-tested government program, as determined by the department. Children eligible for services pursuant to this subparagraph shall be prioritized by the income declared on the application for the means-tested government program. “Cost” includes, but is not limited to, expenditures that are related to the operation of preschool programs. “Cost” may include a reasonable amount for state and local contributions to employee benefits, including approved retirement programs, agency administration, and any other reasonable program operational costs. “Cost” may also include amounts for licensable facilities in the community served by the program, including lease payments or depreciation, downpayments, and payments of principal and interest on loans incurred to acquire, rehabilitate, or construct licensable facilities, but these costs shall not exceed fair market rents existing in the community in which the facility is located. “Reasonable and necessary costs” are costs that, in nature and amount, do not exceed what an ordinary prudent person would incur in the conduct of a competitive business. 
(C) The child’s family needs the childcare services because of either the following:
(i) The child has been identified by a legal, medical, or social services agency, a local educational agency liaison for homeless children and youths designated pursuant to Section 11432(g)(1)(J)(ii) of Title 42 of the United States Code, a Head Start program, or an emergency or transitional shelter as one of the following:
(I) A recipient of protective services.
(II) Being neglected, abused, or exploited, or at risk of neglect, abuse, or exploitation.
(III) Being homeless.
(ii) The child’s parents are one of the following:
(I) Engaged in vocational training leading directly to a recognized trade, paraprofession, or profession.
(II) Engaged in an educational program for English language learners or to attain a high school diploma or general educational development certificate.
(III) Employed or seeking employment.
(IV) Seeking permanent housing for family stability.
(V) Incapacitated.
(2) (A) Commencing July 1, 2022, at least 5 percent of a full-day California state preschool program contracting agency’s funded enrollment shall be reserved for children with exceptional needs, as defined in Section 8205.
(B) (i) The department shall review data on compliance and provide technical assistance to California state preschool program contracting agencies to assist them in meeting the requirement described in subparagraph (A).
(ii) Agencies shall be fully funded for the percentage of enrollment specified in subparagraph (A), inclusive of the exceptional needs adjustment factor for that enrollment pursuant to Section 8244, to ensure funding is available to enroll children with exceptional needs within the set aside specified in subparagraph (A) at any point during the fiscal year. An agency not meeting the requirement to fill the percent of funded enrollment specified in subparagraph (A) with children with exceptional needs shall conduct community outreach to special education partners to recruit additional children with exceptional needs into their programs.
(iii) (I) Any agency not meeting the applicable requirement described in subclause (II) may be put on a conditional contract as described in Section 8314 unless they have applied and been approved for a waiver pursuant to subclause (III).
(II) On and after July 1, 2026, any agency not meeting the 5-percent requirement pursuant to subparagraph (A).
(III) The Superintendent shall create an ongoing waiver process for agencies not able to meet the requirement described in subparagraph (A).
(C) (j)  Children with exceptional needs attending California state preschool programs shall be educated in the least restrictive environment in accordance with Section 1412(a)(5)(A) “Elementary school,” as contained in former Section 425  of Title 20 of the United States Code. Code (the National Defense Education Act of 1958, Public Law 85-864, as amended), includes early childhood education programs and all child development programs, for the purpose of the cancellation provisions of loans to students in institutions of higher learning. 
(D) (i) Notwithstanding the rulemaking provisions of the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code) and Section 33308.5, until regulations are filed with the Secretary of State to implement this paragraph, the department shall implement this paragraph through management bulletins or similar letters of instruction on or before December 31, 2022.
(ii) (k)  The department shall initiate a rulemaking action to implement this paragraph on or before December 31, 2023. “Family childcare home education network” means an entity organized under law that contracts with the department to make payments to licensed family childcare home providers and to provide educational and support services to those providers and to children and families eligible for California state preschool program services. 
(l) “Health services” include, but are not limited to, all of the following:
(1) Referral, whenever possible, to appropriate health care providers able to provide continuity of medical care.
(2) Health screening and health treatment, including a full range of immunization recorded on the appropriate state immunization form to the extent provided by the Medi-Cal Act (Chapter 7 (commencing with Section 14000) of Part 3 of Division 9 of the Welfare and Institutions Code) and the Child Health and Disability Prevention Program (Article 6 (commencing with Section 124025) of Chapter 3 of Part 2 of Division 106 of the Health and Safety Code), but only to the extent that ongoing care cannot be obtained utilizing community resources.
(3) Health education and training for children, parents, staff, and providers.
(4) Followup treatment through referral to appropriate health care agencies or individual health care professionals.
(m) “Higher educational institutions” means the Regents of the University of California, the Trustees of the California State University, the Board of Governors of the California Community Colleges, and the governing bodies of any accredited private nonprofit institution of postsecondary education.
(n) “Intergenerational staff” means persons of various generations.
(o) “Dual language learner children” means children whose first language is a language other than English or children who are developing two or more languages, one of which may be English.
(p) “Parent” means a biological parent, stepparent, adoptive parent, foster parent, caretaker relative, or any other adult living with a child who has responsibility for the care and welfare of the child.
(q) “Program director” means a person who, pursuant to Section 8298, is qualified to serve as a program director.
(r) “Proprietary agency” means an organization or facility providing preschool, which is operated for profit.
(3) (s)  Notwithstanding any other law, a full-day California state preschool program may provide services to children in families whose income is no more than 15 percent above the income eligibility threshold, as described in Section 8213, after all eligible two-, three-, and four-year-old children have been enrolled pursuant to paragraph (1). No more than 10 percent of children enrolled, as calculated throughout the participating program’s entire contract, may be filled by children in families above the income eligibility threshold. “Children with severe disabilities” are children with exceptional needs from birth to 21 years of age, inclusive, who require intensive instruction and training in programs serving pupils with the following profound disabilities: autism, blindness, deafness, severe orthopedic impairments, serious emotional disturbances, or severe intellectual disabilities. “Children with severe disabilities” also include those individuals who would have been eligible for enrollment in a developmental center for handicapped pupils under Chapter 6 (commencing with Section 56800) of Part 30 of Division 4 of Title 2 as it read on January 1, 1980. 
(t) (1) “Site supervisor” means a person who, regardless of their title, has operational program responsibility for an early childhood program at a single site.
(2) A site supervisor shall satisfy one of the following:
(A) Hold a permit issued by the Commission on Teacher Credentialing that authorizes supervision of a childcare and development program operating in a single site.
(B) Hold an administrative credential or an administrative services credential issued by the Commission on Teacher Credentialing.
(C) Meet the qualifications of a program director under Section 8298.
(3) The Superintendent may waive the requirements of this subdivision if the Superintendent determines that the existence of compelling need is appropriately documented.
(4) (u)  Notwithstanding paragraph (1), after all families meeting the criteria specified in paragraphs (1) and (3) have been enrolled, a full-day  “Standard reimbursement rate” means the reimbursement rate applicable to  California state preschool program may provide services to two-, three-, and four-year-old children in families who do not meet at least one of the criteria specified in subparagraph (B) of paragraph (1). programs pursuant to Section 8242. 
(v) “Startup costs” means those expenses an agency incurs in the process of opening a new or additional facility before the full enrollment of children.
(w) “California state preschool program” means those programs that offer part-day or full-day, or both, educational programs for eligible three- and four-year-old children. These programs may be offered by a public, private, or proprietary agency, and operated in childcare centers or family childcare homes operating through a family childcare home education network.
(x) “Support services” means those services that, when combined with preschool services, help promote the healthy physical, mental, social, and emotional growth of children. Support services may include, but are not limited to: protective services, parent training, provider and staff training, transportation, parent and child counseling, child development resource and referral services, and child placement counseling.
(y) “Teacher” means a person with the appropriate permit issued by the Commission on Teacher Credentialing who provides program supervision and instruction that includes supervision of a number of aides, volunteers, and groups of children.
(z) “Underserved area” means a county or subcounty area, including, but not limited to, school districts, census tracts, or ZIP Code areas, where the ratio of publicly subsidized preschool program services to the need for these services is low, as determined by the Superintendent.
(5) (aa)  After all otherwise eligible children have been enrolled as provided in paragraphs (1), (3), and (4), a provider operating a full-day  “Three-year-old children” means children who will have their third birthday on or before December 1 of the fiscal year in which they are enrolled in a California state preschool program. Children who have their third birthday on or after December 2 of the fiscal year, may be enrolled in a  California state preschool program within the attendance boundary of a public school as set forth in Section 8217 may enroll any two-, three-, or four-year-old child. on or after their third birthday. Any child under four years of age shall be served in a California state preschool program facility, licensed in accordance with Title 22 of the California Code of Regulations. 
(e) (1) With the exception of the age requirements and paragraphs (3) and (4), upon establishing initial eligibility or ongoing eligibility for full-day California state preschool program services under this chapter, a family shall be considered to meet all eligibility and need requirements for those services for not less than 24 months, shall receive those services for not less than 24 months before having their eligibility or need recertified, and shall not be required to report changes to income or other changes for at least 24 months.
(2) In the event that the eligibility period as described in paragraph (1) ends before the end of a program year, eligibility shall be extended until the end of the program year, as long as applicable age-eligibility requirements are met, as specified in Section 8205.
(3) A family that establishes initial eligibility or ongoing eligibility on the basis of income shall report increases in income that exceed the threshold for ongoing income eligibility, as described in Section 8213, and the family’s ongoing eligibility for services shall at that time be recertified.
(4) A family may, at any time, voluntarily report income or other changes. This information shall be used, as applicable, to reduce the family’s fees, increase the family’s services, or extend the period of the family’s eligibility before recertification.
(f) (1) Because a family that meets eligibility requirements at its most recent eligibility certification or recertification is considered eligible until the next recertification, as provided in subdivision (d), a payment made by a preschool program for a child during this period shall not be considered an error or an improper payment due to a change in the family’s circumstances during that same period.
(2) Notwithstanding paragraph (1), the Superintendent or the Superintendent’s designated agent may seek to recover payments that are the result of fraud.
(g) (1) Notwithstanding the rulemaking provisions of the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code) and Section 33308.5, until regulations are filed with the Secretary of State to implement subdivision (e), the department shall implement subdivision (e) through management bulletins or similar letters of instruction on or before December 31, 2022.
(2) The department shall initiate a rulemaking action to implement subdivision (e) on or before December 31, 2023.
(h) (ab)  The Superintendent shall establish guidelines according to which the director or a duly authorized representative of the  “Four-year-old children” means children who will have their fourth birthday on or before December 1 of the fiscal year in which they are enrolled in a California state preschool program, or a child whose fifth birthday occurs after September 1 of the fiscal year in which they are enrolled in a  California state preschool program will certify children as eligible for state reimbursement purposes. and whose parent or guardian has opted to retain or enroll them in a California state preschool program. 
(ac) “Homeless children and youth” has the same meaning as defined in Section 11434a(2) of the federal McKinney-Vento Homeless Assistance Act (42 U.S.C. Sec. 11301 et seq.).
(i) (ad)  This section shall become inoperative on July 1, 2027, and, as of January 1, 2028, is repealed. “Local educational agency” means a school district, a county office of education, a community college district, or a school district acting on behalf of one or more schools within the school district. 

SEC. 18.

 Section 8208 is added to the Education Code, to read:

8208.
 (a) (1) A three- or four-year-old child is eligible for the part-day California state preschool program if the child’s family is one of the following:
(A) A current aid recipient.
(B) Income eligible.
(C) Homeless.
(D) One whose children are recipients of child protective services, or whose children have been identified as being abused, neglected, or exploited, or at risk of being abused, neglected or exploited.
(2) Notwithstanding any other law, a part-day California state preschool program may provide services to children in families whose income is no more than 15 percent above the income eligibility threshold, as described in Section 8213, after all eligible three- and four-year-old children have been enrolled. No more than 10 percent of children enrolled, calculated throughout the participating program’s entire contract, may be filled by children in families above the income eligibility threshold.
(3) Notwithstanding any other law, after all otherwise eligible children have been enrolled as provided in paragraphs (1) and (2), a part-day California state preschool program may provide services to three- and four-year-old children in families whose income is above the income eligibility threshold if those children are children with exceptional needs. Children receiving services pursuant to this paragraph shall not count towards the 10-percent limit in paragraph (2).
(4) Notwithstanding any other law, after all otherwise eligible children have been enrolled as provided in paragraphs (1) to (3), inclusive, a provider operating a part-day state preschool program within the attendance boundary of a public school, as set forth in Section 8217, may enroll four-year-old children.
(b) A part-day California state preschool program contracting agency shall certify eligibility and enroll families into their program within 120 calendar days prior to the first day of the beginning of the new preschool year. Subsequent to enrollment, a child shall be deemed eligible for a part-day California state preschool program for the remainder of the program year.
(c) (1) A three- or four-year old child is eligible for a full-day California state preschool program if the family meets both of the following requirements:
(A) The child’s family is one of the following:
(i) A current aid recipient.
(ii) Income eligible.
(iii) Homeless.
(iv) One whose children are recipients of child protective services, or whose children have been identified as being abused, neglected, or exploited, or at risk of being abused, neglected or exploited.
(B) The child’s family needs the childcare services because of either the following:
(i) The child has been identified by a legal, medical, or social services agency, a local educational agency liaison for homeless children and youths designated pursuant to Section 11432(g)(1)(J)(ii) of Title 42 of the United States Code, a Head Start program, or an emergency or transitional shelter as one of the following:
(I) A recipient of protective services.
(II) Being neglected, abused, or exploited, or at risk of neglect, abuse, or exploitation.
(III) Being homeless.
(ii) The child’s parents are one of the following:
(I) Engaged in vocational training leading directly to a recognized trade, paraprofession, or profession.
(II) Engaged in an educational program for English language learners or to attain a high school diploma or general educational development certificate.
(III) Employed or seeking employment.
(IV) Seeking permanent housing for family stability.
(V) Incapacitated.
(2) Notwithstanding paragraph (1), after all families meeting the criteria specified in paragraph (1) have been enrolled, a full-day California state preschool program may provide services to three- and four-year-old children in families who do not meet at least one of the criteria specified in subparagraph (B) of paragraph (1).
(3) After all otherwise eligible children have been enrolled as provided in paragraphs (1) and (2), a provider operating a full-day California state preschool program within the attendance boundary of a public school as set forth in Section 8217 may enroll any four-year-old child.
(d) (1) With the exception of the age requirements and paragraphs (2) and (3), upon establishing initial eligibility or ongoing eligibility for full-day California state preschool program services under this chapter, a family shall be considered to meet all eligibility and need requirements for those services for not less than 12 months, shall receive those services for not less than 12 months before having their eligibility or need recertified, and shall not be required to report changes to income or other changes for at least 12 months.
(2) A family that establishes initial eligibility or ongoing eligibility on the basis of income shall report increases in income that exceed the threshold for ongoing income eligibility, as described in Section 8213, and the family’s ongoing eligibility for services shall at that time be recertified.
(3) A family may, at any time, voluntarily report income or other changes. This information shall be used, as applicable, to reduce the family’s fees, increase the family’s services, or extend the period of the family’s eligibility before recertification.
(e) (1) Because a family that meets eligibility requirements at its most recent eligibility certification or recertification is considered eligible until the next recertification, as provided in subdivision (d), a payment made by a preschool program for a child during this period shall not be considered an error or an improper payment due to a change in the family’s circumstances during that same period.
(2) Notwithstanding paragraph (1), the Superintendent or the Superintendent’s designated agent may seek to recover payments that are the result of fraud.
(f) (1) Notwithstanding the rulemaking provisions of the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code) and Section 33308.5, until regulations are filed with the Secretary of State to implement subdivision (d), the department shall implement subdivision (d) through management bulletins or similar letters of instruction on or before October 1, 2017.
(2) The department shall initiate a rulemaking action to implement subdivision (d) on or before December 31, 2018. The department shall convene a workgroup of parents, advocates, department staff, child development program representatives, and other stakeholders to develop recommendations regarding implementing subdivision (d).
(g) The Superintendent shall establish guidelines according to which the director or a duly authorized representative of the California state preschool program will certify children as eligible for state reimbursement purposes.

SEC. 19.

 Section 8208.1 of the Education Code is repealed.

SEC. 20.

 Section 8208.5 of the Education Code is repealed.

SEC. 21.

 Section 8209 of the Education Code is amended and renumbered to read:

8209. 8206. 
 (a) A physical examination and evaluation, including age-appropriate immunizations, shall be required before, or within six weeks of, enrollment in a preschool program. A standard, rule, or regulation shall not require medical examination or immunization for admission to a preschool program of a child whose parent or guardian files a letter with the governing board of the preschool program stating that the medical examination or immunization is contrary to the parent’s or guardian’s 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 preschool program is satisfied that the child is not suffering from that contagious or infectious disease. If a state of emergency is declared by the Governor, the Superintendent may waive any requirements of this code or regulations adopted pursuant to this code relating to preschool programs operated pursuant to this chapter only to the extent that enforcement of the regulations or requirements would directly impede disaster relief and recovery efforts or would disrupt the current level of service in preschool programs. 
(b) If only one parent has signed an application for enrollment in preschool services, as required by this chapter or regulations adopted to implement this chapter, and the information provided on the application indicates that there is a second parent who has not signed the application, the parent who has signed the application shall self-certify the presence or absence of the second parent under penalty of perjury. The parent who has signed the application shall not be required to submit additional information documenting the presence or absence of the second parent. A waiver granted pursuant to subdivision (a) shall not exceed 45 calendar days. 
(c) For purposes of this section, “state of emergency” includes, but is not limited to, fire, flood, earthquake, or a period of civil unrest.
(d) If a request for a waiver pursuant to subdivision (a) is for a childcare and development program, preschool program, or child nutrition program that receives federal funds and the waiver may be inconsistent with the state plan or any federal law or regulations governing the program, the Superintendent shall seek and obtain approval of the waiver from the appropriate federal agency before granting the waiver.
(e) (1) From July 1, 2020, to June 30, 2021, inclusive, due to the ongoing impacts of childcare and development facility closures and low child attendance due to the COVID-19 pandemic and related public health directives, the Superintendent shall reimburse a contracting agency for a California state preschool program pursuant to former Article 7 (commencing with Section 8235), a general childcare and development program pursuant to former Article 8 (commencing with Section 8240), a family childcare home education network pursuant to former Article 8.5 (commencing with Section 8245), a migrant childcare and development program pursuant to former Article 6 (commencing with Section 8230), or childcare and development services for children with special needs pursuant to former Article 9 (commencing with Section 8250) that meets one of the following requirements:
(A) The program operated by the contracting agency opens by September 8, 2020, or within 21 calendar days from the start date of the contracting agency’s 2020–21 program calendar approved by the department, whichever is sooner, and remains open and offering services through the 2020–21 program year.
(B) The program operated by the contracting agency is closed by local or state public health order or guidance due to the COVID-19 pandemic.
(C) (i) The program operates on the campus of a local educational agency that is closed by local or state public health guidance or order and the local educational agency has required the early learning and care program to close.
(ii) To ensure continuity of care and access to services during the COVID-19 pandemic, the governing board or body of the local educational agency requiring a closure pursuant to clause (i) shall discuss in a public hearing and prepare a plan for safely reopening early learning and care programs as soon as safely possible, but no later than when local education agency campuses open for in-person instruction.
(2) Reimbursement pursuant to paragraph (1) shall be 100 percent of the contract maximum reimbursable amount or net reimbursable program costs, whichever is less, pursuant to guidance released by the Superintendent.
(c) (3)  Notwithstanding any other law, in order to promote continuity of services, a family enrolled in a state or federally funded preschool program whose services would otherwise be terminated because the family no longer meets the program income, eligibility, or need criteria may continue to receive preschool services in another state or federally funded preschool program if the contractor is able to transfer the family’s enrollment to another program for which the family is eligible before the date of termination of services or to exchange the family’s 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. The transfer of enrollment may be to another program within the same administrative agency or to another agency that administers state or federally funded preschool programs.  A childcare program specified in paragraph (1) that is physically closed pursuant to subparagraph (B) or (C) of paragraph (1) due to the COVID-19 pandemic, but funded to be operational, shall provide distance learning services as specified by the Superintendent. A contractor specified in paragraph (1) shall submit a distance learning plan to the department pursuant to guidance from the Superintendent. 

SEC. 22.

 Section 8209 is added to the Education Code, to read:

8209.
 (a) A physical examination and evaluation, including age-appropriate immunizations, shall be required before, or within six weeks of, enrollment in a preschool program. A standard, rule, or regulation shall not require medical examination or immunization for admission to a preschool program of a child whose parent or guardian files a letter with the governing board of the preschool program stating that the medical examination or immunization is contrary to the parent’s or guardian’s 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 preschool program is satisfied that the child is not suffering from that contagious or infectious disease.
(b) If only one parent has signed an application for enrollment in preschool services, as required by this chapter or regulations adopted to implement this chapter, and the information provided on the application indicates that there is a second parent who has not signed the application, the parent who has signed the application shall self-certify the presence or absence of the second parent under penalty of perjury. The parent who has signed the application shall not be required to submit additional information documenting the presence or absence of the second parent.
(c) Notwithstanding any other law, in order to promote continuity of services, a family enrolled in a state or federally funded preschool program whose services would otherwise be terminated because the family no longer meets the program income, eligibility, or need criteria may continue to receive preschool services in another state or federally funded preschool program if the contractor is able to transfer the family’s enrollment to another program for which the family is eligible before the date of termination of services or to exchange the family’s 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. The transfer of enrollment may be to another program within the same administrative agency or to another agency that administers state or federally funded preschool programs.

SEC. 23.

 Article 1.1 (commencing with Section 8209.6) of Chapter 2 of Part 6 of Division 1 of Title 1 of the Education Code is repealed.

SEC. 24.

 Article 2 (commencing with Section 8210) of Chapter 2 of Part 6 of Division 1 of Title 1 of the Education Code is repealed.

SEC. 25.

 Section 8210 is added to the Education Code, to read:

8210.
 (a) Each applicant or contracting agency shall give priority for part-day programs according to the following:
(1) The first priority for services shall be given to three-year-old or four-year-old children who are recipients of child protective services or who are at risk of being neglected, abused, or exploited and for whom there is a written referral from a legal, medical, or social service agency. If an agency is unable to enroll a child in this first priority category, the agency shall refer the child’s parent or guardian to local resources and referral services so that services for the child can be located.
(2) (A) The second priority for services shall be given to eligible four-year-old children who are not enrolled in a state-funded transitional kindergarten program.
(B) Within this priority category, eligible children with the lowest income according to the income ranking on the most recent schedule of income ceiling eligibility table, as published by the Superintendent at the time of enrollment, shall be enrolled first.
(i) If two or more families have the same income ranking according to the most recent schedule of income ceiling eligibility table, a child with exceptional needs shall be enrolled first.
(ii) If there are no families with a child with exceptional needs, the child that has been on the waiting list for the longest time shall be admitted first.
(3) The third priority shall be given to eligible three-year-old children. Enrollment determinations within this priority category shall be made pursuant to subparagraph (B) of paragraph (2).
(4) The fourth priority, after all otherwise eligible children have been enrolled, shall be children from families whose income is no more than 15 percent above the eligibility income threshold, as described in Section 8213. Within this priority category, priority shall be given to four-year-old children before three-year-old children.
(5) The fifth priority, after all otherwise eligible children have been enrolled, shall be a child with exceptional needs whose family’s income is above the income eligibility threshold, as described in Section 8213. Within this priority category, priority shall be given to four-year-old children before three-year-old children.
(6) After all otherwise eligible children have been enrolled in the first through fifth priority categories, as described in paragraphs (1) to (5), inclusive, a California preschool program site operating within the attendance boundaries of a qualified free and reduced priced meals school, in accordance with Section 8217, may enroll any four-year-old children whose families reside within the attendance boundary of the qualified elementary school. These children shall, to the extent possible, be enrolled by lowest to highest income according to the most recent schedule of income ceiling eligibility table.
(b) For purposes of determining order of enrollment, public assistance grants shall be counted as income.
(c) The Superintendent shall set criteria for, and may grant specific waivers of, the priorities established in this section 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.

SEC. 26.

 Section 8211 is added to the Education Code, to read:

8211.
 (a) Each applicant or contracting agency shall give priority for full-day programs according to the following:
(1) The first priority for services shall be given to three-year-old or four-year-old children who are recipients of child protective services or who are at risk of being neglected, abused or exploited upon written referral from a legal, medical, or social service agency. If an agency is unable to enroll a child in this first priority category, the agency shall refer the child’s parent or guardian to local resources and referral services so that services for the child can be located.
(2) (A) The second priority for services shall be given to eligible four-year-old children who are not enrolled in a state-funded transitional kindergarten program.
(B) Within this priority category, eligible children with the lowest income according to the income ranking on the most recent schedule of income ceiling eligibility table, as published by the Superintendent at the time of enrollment, shall be enrolled first.
(i) If two or more families have the same income ranking according to the most recent schedule of income ceiling eligibility table, a child with exceptional needs shall be enrolled first.
(ii) If there are no families with a child with exceptional needs, the child that has been on the waiting list for the longest time shall be admitted first.
(3) The third priority shall be given to eligible three-year-old children. Enrollment determinations within this priority category shall be made pursuant to subparagraph (B) of paragraph (2).
(4) After all otherwise eligible children have been enrolled in the first through fourth priority categories, as described in paragraphs (1) to (4), inclusive, the contractor may enroll the children in the following order:
(A) The contractor may enroll three- and four-year-old children from families that meet eligibility criteria pursuant to paragraph (2) of subdivision (c) of Section 8208. Within this priority, contractors shall enroll families in income ranking order, lowest to highest, and within income ranking order, enroll four-year-old children before three-year-old children.
(B) For California state preschool program sites operating within the attendance boundaries of a qualified free and reduced priced meals school, in accordance with Section 8217, the contractor may enroll any four-year-old children whose families reside within the attendance boundary of the qualified school without establishing eligibility or a need for services pursuant to paragraph (1) or (2) of subdivision (c) of Section 8208. These families shall, to the extent possible, be enrolled in income ranking order, lowest to highest.
(b) For purposes of determining order of admission, grants of public assistance shall be counted as income.
(c) The Superintendent shall set criteria for, and may grant specific waivers of, the priorities established in this section 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.

SEC. 27.

 Section 8214 is added to the Education Code, to read:

8214.
 If families have to be disenrolled from subsidized preschool services, families shall be disenrolled in reverse priority order for services, as specified in Sections 8210 and 8211, as applicable.

SEC. 28.

 Article 3 (commencing with Section 8220) of Chapter 2 of Part 6 of Division 1 of Title 1 of the Education Code is repealed.

SEC. 29.

 The heading of Article 3 (commencing with Section 8226) is added to Chapter 2 of Part 6 of Division 1 of Title 1 of the Education Code, to read:

Article  3. Administration

SEC. 30.

 Section 8227 is added to the Education Code, to read:

8227.
 The department shall develop procedures for annually evaluating the monitoring processes and the training and technical assistance that is to be provided to the contracting agencies.

SEC. 31.

 Article 6 (commencing with Section 8230) of Chapter 2 of Part 6 of Division 1 of Title 1 of the Education Code is repealed.

SEC. 32.

 The heading of Article 7 (commencing with Section 8235) of Chapter 2 of Part 6 of Division 1 of Title 1 of the Education Code is repealed.

SEC. 33.

 Section 8235 of the Education Code is amended and renumbered to read:

8235. 8207. 
 (a) The Superintendent shall administer all California state preschool programs. Those programs shall include, but not be limited to, part-day and full-day age and developmentally appropriate programs, offered through childcare centers and family childcare home education networks, that are designed to facilitate the transition to kindergarten for three- and four-year-old children in educational development, health services, social services, nutritional services, parent education and parent participation, evaluation, and staff development. Preschool programs for which federal reimbursement is not available shall be funded as prescribed by the Legislature in the Budget Act, and unless otherwise specified by the Legislature, shall not use federal funds made available through Title XX of the federal Social Security Act (42 U.S.C. Sec. 1397).
(b) A part-day California state preschool program shall operate for a minimum of (1) three hours per day, excluding time for home-to-school transportation, and (2) a minimum of 175 days per year, unless the contract specifies a lower number of days of operation.
(c) A full-day California state preschool program shall operate for a minimum of 246 days per year, unless the contract specifies a lower number of days of operation.
(d) Any agency described in subdivision (a) of Section 8205 as an “applicant or contracting agency” is eligible to contract to operate a California state preschool program.
(e) 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.
(f) Federal Head Start funds used to provide services to families receiving California state preschool services shall be deemed nonrestricted funds.
(g) School districts and charter schools that administer a California state preschool program may place four-year-old children in a transitional kindergarten program classroom in accordance with subdivisions (h) to (j), inclusive, of Section 48000.
(h) California state preschool programs shall include all of the following:
(1) Age- and developmentally appropriate activities for children.
(2) Supervision.
(3) Parenting education and parent engagement.
(4) Social services that include, but are not limited to, identification of child and family needs and referral to appropriate agencies.
(5) Health services.
(6) Nutrition.
(7) Training and career ladder opportunities, documentation of which shall be provided to the department.
Contractors (i)   operating or providing services pursuant to this chapter may use digital forms to allow families to apply for services, if those forms comply with state and federal standards. The Superintendent shall adopt rules and regulations related to the administration of this chapter, including rules and regulations related to eligibility, enrollment, and priority of services. Regulations shall also 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 have exceptional needs. 

SEC. 34.

 Section 8235.5 of the Education Code is amended and renumbered to read:

8212.
 (a) (1) A local educational agency exempt from licensing pursuant to subdivision (o) of Section 1596.792 of the Health and Safety Code shall use the uniform complaint process it has adopted as required by Chapter 5.1 (commencing with Section 4600) of Division 1 of Title 5 of the California Code of Regulations, with modifications, as necessary, to resolve any deficiencies related to preschool health and safety issues for a California state preschool program pursuant to Section 1596.7925 of the Health and Safety Code.
(2) A complaint may be filed anonymously. A complainant who identifies themselves is entitled to a response if the complainant indicates that a response is requested. A complaint form shall include a space to mark to indicate whether a response is requested. If Section 48985 is otherwise applicable, the response, if requested, and report shall be written in English and the primary language in which the complaint was filed. All complaints and responses are public records.
(3) The complaint form shall specify the location for filing a complaint. A complainant may add as much text to explain the complaint as the complainant wishes.
(4) A complaint shall be filed with the preschool program administrator or their designee. A complaint about problems beyond the authority of the preschool program administrator shall be forwarded in a timely manner, but not to exceed 10 working days to the appropriate local educational agency official for resolution.
(b) The preschool program administrator or the designee of the district superintendent, as applicable, shall make all reasonable efforts to investigate any problem within their authority. Investigations shall begin within 10 days of the receipt of the complaint. The preschool program administrator or designee of the district superintendent shall remedy a valid complaint within a reasonable time period, but not to exceed 30 working days from the date the complaint was received. The preschool program administrator or designee of the district superintendent shall report to the complainant the resolution of the complaint within 45 working days of the initial filing. If the preschool program administrator makes this report, the preschool program administrator shall also report the same information in the same timeframe to the designee of the district superintendent.
(c) A complainant not satisfied with the resolution of the preschool program administrator or the designee of the district superintendent has the right to describe the complaint to the governing board or body, as applicable, of the local educational agency at a regularly scheduled hearing of the governing board or body, as applicable, of the local educational agency. A complainant who is not satisfied with the resolution proffered by the preschool program administrator or the designee of the district superintendent has the right to file an appeal to the Superintendent.
(d) A local educational agency shall report summarized data on the nature and resolution of all complaints on a quarterly basis to the county superintendent of schools and the governing board or body, as applicable, of the local educational agency. The summaries shall be publicly reported on a quarterly basis at a regularly scheduled meeting of the governing board or body, as applicable, of the local educational agency. The report shall include the number of complaints by general subject area with the number of resolved and unresolved complaints. The complaints and written responses shall be available as public records.
(e) In order to identify appropriate subjects of complaint, a notice shall be posted in each California state preschool program classroom in each school in the local educational agency notifying parents, guardians, pupils, and teachers of both of the following:
(1) The health and safety requirements under Title 5 of the California Code of Regulations that apply to California state preschool programs pursuant to Section 1596.7925 of the Health and Safety Code.
(2) The location at which to obtain a form to file a complaint. Posting a notice downloadable from the internet website of the department shall satisfy this requirement.
(f) A local educational agency shall establish local policies and procedures, post notices, and implement this section.
(g) For purposes of this section, “local educational agency” means a school district, county office of education, or charter school.

SEC. 35.

 Section 8236 of the Education Code is repealed.

8236.
 On and after the date on which the Superintendent determines that the Financial Information System for California (Fi$Cal Project) has been implemented within the department, at the request of a contractor, for a contract executed by the department pursuant to Section 8233, the department shall request the Controller to make a payment via direct deposit by electronic funds transfer through the Fi$Cal Project into the contractor’s account at the financial institution of the contractor’s choice.

SEC. 36.

 Section 8236.1 of the Education Code is amended and renumbered to read:

8215.
 The department shall annually monitor funding used in, and hours of service provided in, the California state preschool program, and shall annually report to the Department of Finance and to the Legislature a statewide summary identifying the estimated funding used for, and the number of, preschool age children receiving part-day preschool and wraparound childcare services. The annual report shall include a comparison to the prior year on a county-by-county basis.

SEC. 37.

 Section 8236.2 of the Education Code is amended and renumbered to read:

8216.
 (a) The department and the State Department of Social Services shall promote full utilization of childcare and development funds and match available unused funds with identified service needs. The department and the State Department of Social Services shall attempt to arrange intraagency adjustments between California state preschool contracts and general childcare contracts for the same agency and funding allocation. The department and the State Department of Social Services shall establish timelines for intraagency contract fund transfers.
(b) Notwithstanding the rulemaking provision of the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code), the department and the State Department of Social Services may implement and administer this section through the issuance of guidance or other written directives, which may include, but is not limited to, establishing timelines for submittal of requests to transfer funds.

SEC. 38.

 Section 8236.3 of the Education Code is amended and renumbered to read:

8217.
 (a) Notwithstanding any other law, a provider operating a state preschool program within the attendance boundary of a public school, except a charter or magnet school, where at least 80 percent of enrolled pupils are eligible for free or reduced-price meals, may enroll four-year-old children, as defined in Section 8205, in accordance with the enrollment priorities set forth in Sections 8210 and 8211. Any remaining slots may be open to enrollment of any families not otherwise eligible pursuant to Section 8208, subject to both of the following:
(1) Enrollment of eligible four-year-old children pursuant to this paragraph shall be limited to families that establish residency within the attendance boundary of the qualifying public school pursuant to this subdivision. Providers shall require proof of residency as a condition of enrollment.
(2) To the best of their ability, providers shall give first enrollment priority for slots available pursuant to this paragraph to families with the lowest income, and last enrollment priority to families with the highest income.
(b) (1) Notwithstanding the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code) and Section 33308.5, until regulations are filed with the Secretary of State to implement subdivision (a), the department shall implement subdivision (a) through management bulletins or similar letters of instruction issued on or before December 1, 2019.
(2) The department shall initiate a rulemaking action to implement subdivision (a) on or before December 31, 2020. The department shall convene a workgroup of parents, advocates, department staff, child development program representatives, and other stakeholders to develop recommendations regarding the implementation of subdivision (a).
(c) For purposes of this section, “magnet school” means an entire school with a focus on a special area of study, such as science, the performing arts, or career education, designed to attract pupils from across the school district who may choose to attend the magnet school instead of their local public school.

SEC. 39.

 Section 8237 of the Education Code is repealed.

8237.
 (a) In contract transfer situations in programs funded pursuant to this chapter, the Superintendent of Public Instruction may grant a certificate of operation to preschool facilities pursuant to this section.
(b) For purposes of maintaining continuity of services to children, the superintendent may grant a certificate of operation to any preschool facility that meets all of the following conditions:
(1) The superintendent, or the superintendent’s designee, has visited the facility and verified, in writing, to the State Department of Social Services licensing agency that the facility has no deficiencies at the time of granting the certificate of operation that would endanger the physical health, mental health, safety, or welfare of the children.
(2) Without a certificate of operation in lieu of a license from the State Department of Social Services, the facility would be ineligible to receive, as applicable, state or federal funds.
(c) A facility issued a certificate of operation pursuant to this section shall be deemed to be operating under licensing standards for childcare and development facilities specified by Chapters 3.4 (commencing with Section 1596.70), 3.5 (commencing with Section 1596.90), and 3.6 (commencing with Section 1597.30) of Division 2 of the Health and Safety Code and by Title 22 of the California Code of Regulations for the term specified on the certificate.
(d) A facility granted a certificate of operation shall submit a completed license application to the State Department of Social Services within 15 working days of the issuance of the certificate of operation. Failure to meet this requirement will result in the cancellation of the certificate of operation. The certificate of operation shall expire upon the issuance or denial of a license by the State Department of Social Services.

SEC. 40.

 Section 8238 of the Education Code is amended and renumbered to read:

8238. 8220. 
 As a condition of receipt of funds pursuant to Section 8221, a participating part-day preschool program shall coordinate the provision of all of the following:
(a) Opportunities for parents and legal guardians to work with their children on interactive literacy activities. For purposes of this subdivision, “interactive literacy activities” means activities in which parents or legal guardians actively participate in facilitating the acquisition by their children of prereading skills through guided activities such as shared reading, learning the alphabet, and basic vocabulary development.
(b) Parenting education for parents and legal guardians of children in participating classrooms to support the development by their children of literacy skills. Parenting education shall include, but not be limited to, instruction in all of the following:
(1) Providing support for the educational growth and success of their children.
(2) Improving parent-school communications and parental understanding of school structures and expectations.
(3) Becoming active partners with teachers in the education of their children.
(4) Improving parental knowledge of local resources for the identification of and services for developmental disabilities, including, but not limited to, contact information for school district special education referral.
The (c)   Superintendent may waive or modify California state preschool requirements in order to enable preschool programs to serve combinations of eligible children in areas of low population.  Referrals, as necessary, to providers of instruction in adult education and English as a second language in order to improve the academic skills of parents and legal guardians of children in participating classrooms. 
(d) Staff development for teachers in participating classrooms that includes, but is not limited to, all of the following:
(1) Development of a pedagogical knowledge, including, but not limited to, improved instructional and behavioral strategies.
(2) Knowledge and application of developmentally appropriate assessments of the prereading skills of children in participating classrooms.
(3) Information on working with families, including the use of onsite coaching, for guided practice in interactive literacy activities.
(4) Providing targeted interventions for all young children to improve kindergarten readiness upon program completion.

SEC. 41.

 Section 8238.4 of the Education Code is amended and renumbered to read:

8221.
 (a) A family literacy supplemental grant shall be made available and distributed to qualifying California state preschool classrooms, as determined by the Superintendent, at a rate of two thousand five hundred dollars ($2,500) per class. The Superintendent shall distribute the family literacy supplemental grant funds according to the following priorities:
(1) First priority shall be assigned to California state preschool programs that contract to receive this funding before July 1, 2012. These programs shall receive this funding until their contract is terminated or the California state preschool program no longer provides family literacy services.
(2) Second priority shall be assigned to California state preschool programs operating classrooms located in the attendance area of elementary schools in deciles 1 to 3, inclusive, based on the most recently published Academic Performance Index pursuant to Section 52056. The Superintendent shall use a lottery process in implementing this paragraph.
(b) A family literacy supplemental grant distributed pursuant to this section shall be used for purposes specified in Section 8220.
(c) Implementation of this section is contingent upon funding being provided for family literacy supplemental grants for California state preschool programs in the annual Budget Act or other statute.

SEC. 42.

 Section 8239 of the Education Code is repealed.

8239.
 The Superintendent of Public Instruction may provide outreach services and technical assistance to new contracting agencies and to those providing preschool services during nontraditional times, in underserved geographic areas, and for children with special childcare needs.

SEC. 43.

 Section 8239.1 of the Education Code is amended and renumbered to read:

8222.
 (a) A contracting agency shall not expel or unenroll a child because of a child’s behavior except as authorized by subdivision (c).
(b) (1) If a child exhibits persistent and serious challenging behaviors, the contracting agency shall expeditiously pursue and document reasonable steps, including, but not limited to, consulting with the child’s parents or legal guardians and teacher, to maintain the child’s safe participation in the program. The contracting agency shall inform the parents or legal guardians of a child exhibiting persistent and serious challenging behaviors of the process described in this section.
(2) (A) If the child has an individualized family service plan or individualized education program, the contracting agency, with written parental consent, shall contact the agency responsible for the individualized family service plan or individualized education program to seek consultation on serving the child.
(B) If the child does not have an individualized family service plan or individualized education program, the contracting agency shall consider, if appropriate, completing a universal screening of the child, including, but not limited to, screening the child’s social and emotional development, referring the child’s parents or legal guardians to community resources, and implementing behavior supports within the program before referring the child’s parents or legal guardians to the local agency responsible for implementing the federal Individuals with Disabilities Education Act (20 U.S.C. Sec. 1400 et seq.).
(c) If a contracting agency has expeditiously pursued and documented reasonable steps to maintain the child’s safe participation in the program and determines, in consultation with the parents or legal guardians of the child, the child’s teacher, and, if applicable, the local agency responsible for implementing the federal Individuals with Disabilities Education Act (20 U.S.C. Sec. 1400 et seq.), that the child’s continued enrollment would present a continued serious safety threat to the child or other enrolled children, it shall refer the parents or legal guardians to other potentially appropriate placements, the local childcare resource and referral agency, or any other referral service available in the local community. The contracting agency may then unenroll the child.
(d) A contracting agency shall have up to 180 days to complete the process described in this section.
(e) This section shall apply only to California state preschool programs described in this article.

SEC. 44.

 Article 8 (commencing with Section 8240) of Chapter 2 of Part 6 of Division 1 of Title 1 of the Education Code is repealed.

SEC. 45.

 The heading of Article 4 (commencing with Section 8242) is added to Chapter 2 of Part 6 of Division 1 of Title 1 of the Education Code, to read:

Article  4. Reimbursement Rates

SEC. 46.

 Section 8242 is added to the Education Code, to read:

8242.
 (a) The department, in collaboration with the State Department of Social Services, shall implement a reimbursement system 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) The department may establish any regulations deemed advisable concerning conditions of service and hours of enrollment for children in the programs.
(b) (1) (A) Commencing July 1, 2021, the standard reimbursement rate shall be twelve thousand nine hundred sixty-eight dollars ($12,968).
(B) Commencing July 1, 2021, the standard reimbursement rate for part-day California state preschool programs shall be five thousand six hundred twenty-one dollars ($5,621).
(2) Commencing in the 2022–23 fiscal year, the standard reimbursement rates described in paragraph (1) shall be increased by the cost-of-living adjustment granted by the Legislature annually pursuant to Section 42238.15.
(c) (1) Commencing January 1, 2022, contractors who, as of December 31, 2021, received the standard reimbursement rate established in this section shall be reimbursed at the greater of the following:
(A) The 75th percentile of the 2018 regional market rate survey.
(B) The contract per-child reimbursement amount as of December 31, 2021.
(2) In accordance with federal requirements for Child Care Stabilization Grants appropriated pursuant to the federal American Rescue Plan Act of 2021 (Public Law 117-2), contractors shall provide information via a one-time application or survey in advance of receiving American Rescue Plan Act funds. The department shall specify the timeline and format in which this information shall be submitted, and the information shall include, but not be limited to, all of the following:
(A) Address, including ZIP Code.
(B) Race and ethnicity.
(C) Gender.
(D) Whether the provider is open and available to provide childcare services or closed due to the COVID-19 public health emergency.
(E) What types of federal relief funds have been received from the state.
(F) Use of federal relief funds received.
(G) Documentation that the provider met certifications as required by federal law.
(3) Rate increases shall be subject to federal usage limitations and federal and state program eligibility requirements.

SEC. 47.

 The heading of Article 8.5 (commencing with Section 8245) of Chapter 2 of Part 6 of Division 1 of Title 1 of the Education Code is repealed.

SEC. 48.

 Section 8245 of the Education Code is repealed.

8245.
 (a) For each fiscal year, for the purposes of this chapter, reimbursement rates for full-day California state preschool shall be adjusted by the following reimbursement factors:
(1) Prior to January 1, 2022, California state preschool 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.
(2) Prior to January 1, 2022, California state preschool program providers serving children for not less than six 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.
(3) For California state preschool 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.
(b) It is the intent of the Legislature, notwithstanding the difference between the standard reimbursement rate and the regional market rate, to support serving children for the length of day that is appropriate under a provider’s contract.

SEC. 49.

 Section 8246 of the Education Code is amended and renumbered to read:

8246. 8223. 
 (a) Contractors operating through a family childcare home education network shall do all of the following:
(1) Recruit, enroll, and certify eligible families.
(2) Recruit, train, support, and reimburse licensed family childcare home providers.
(3) Collect family fees in accordance with contract requirements.
(4) Assess, according to standards set by the department, the educational quality of the program offered in each family childcare home in the network.
(5) Assure that a developmental profile is completed for each child based upon observations of network staff, in consultation with the provider.
(6) Monitor requirements, including quality standards, and conduct periodic assessments of program quality in each family childcare home affiliated with the network.
(7) Ensure that basic health and nutrition requirements are met.
(8) Provide data and reporting in accordance with contract requirements.
The (b)   Superintendent of Public Instruction and the State Controller shall establish the necessary plans to advance preschool funds to contracting agencies. Each contractor shall ensure that their staff have sufficient training to successfully accomplish the requirements of subdivision (a). 

SEC. 50.

 Section 8247 of the Education Code is repealed.

8247.
 (a) The Superintendent of Public Instruction shall adopt rules, regulations, and guidelines to facilitate the funding and reimbursement procedures required by this chapter.
(b) The Superintendent may establish any regulations the Superintendent deems advisable concerning conditions of service and hours of enrollment for children in the programs.

SEC. 51.

 The heading of Article 9 (commencing with Section 8250) of Chapter 2 of Part 6 of Division 1 of Title 1 of the Education Code is repealed.

SEC. 52.

 Section 8250 of the Education Code is amended and renumbered to read:

8250. 8224. 
 (a) The rules, regulations, and guidelines adopted by the Superintendent of Public Instruction pursuant to Sections 8231 and 8247 shall permit reimbursement for interest paid by contractors on private sector debt financing for the purchase, lease-purchase, repair, or renovation of preschool facilities owned or leased by contractors providing center-based preschool. Superintendent shall ensure that eligible children with exceptional needs are given equal access to all California state preschool programs. Available federal and state funds for children with exceptional needs above the standard reimbursement amount shall be used to assist agencies in developing and supporting appropriate programs for these children, including federal and state funds available for the provision of special education and related services, as appropriate. 
(b) The Superintendent of Public Instruction shall adopt regulations requiring contractors to demonstrate that the amount of interest paid in a year on private sector debt financing for the purposes identified in subdivision (a) does not exceed the value obtained by the state in the use of the facilities during the year for the preschool services program. The regulations shall include, but not be limited to, the following methods of making this demonstration:
(1) Amortization of a loan or lease-purchase contract on a straight-line basis for the purchase price of a portable building, including any transportation charges, installation charges, loan fees, taxes, points or other fees associated with the purchase, over a period of 15 years or more.
(2) Amortization of a loan or lease-purchase contract on a straight-line basis for the purchase price of a permanent building and real estate, including any loan fees, taxes, points or other fees associated with the purchase, over a period of 15 years or more.
(3) Evidence acceptable to the Superintendent of Public Instruction that loan payments for the purchase of a portable building or permanent building and real estate, including principal and interest, do not exceed the fair market rental cost that the contractor would have paid if the property was not purchased.
(c) (b)  Loans or lease-purchase agreements amortized over the number of years designated in subdivision (b), but due in a fewer number of years, shall not be disallowed because of the shorter due date. Any child with exceptional needs served in California state preschool programs shall be afforded all rights and protections guaranteed in state and federal laws and regulations for individuals with exceptional needs. 

SEC. 53.

 Section 8250.5 of the Education Code is amended and renumbered to read:

8225.
 A contractor providing California state preschool services is subject to the requirements of the Americans with Disabilities Act (42 U.S.C. Sec. 12101, et seq.).

SEC. 54.

 Section 8251 of the Education Code is repealed.

8251.
 An agency contracting with the department to provide California state preschool program services may schedule up to two days of staff training, per contract period, using state reimbursement funding on the topics including procedures for emergencies in preschool programs, licensing regulations relating to preschool programs, recognition and reporting of suspected abuse of children in preschool programs, managing challenging behaviors and preventing expulsion of children, and addressing items on the program’s Quality Rating and Improvement System (QRIS) Quality plan.

SEC. 55.

 Section 8252 of the Education Code is repealed.

8252.
 (a) The Superintendent shall use the fee schedule developed in conjunction with the State Department of Social Services for families using full-day preschool services pursuant to this chapter, including families receiving services pursuant to subdivision (a) of Section 8211.
(b) Families shall be assessed a single flat monthly fee for all state subsidized early childhood services received, including California state preschool program services and services received through childcare and development programs administered by the State Department of Social Services, pursuant to Section 10290 of the Welfare and Institutions Code.
(c) 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.
(d) Family fees shall be assessed at initial enrollment and reassessed at recertification.
(e) Family fees shall be used by contractors to pay reasonable and necessary costs for providing additional services.
(f) Family fees shall not be based on the cost of care or amount of subsidy payment.
(g) Notwithstanding any other provision of this article, family fees shall not be collected for the 2021–22 fiscal year pursuant to Section 263 of Chapter 116 of the Statutes of 2021.
(h) (1) Notwithstanding any other law, family fees shall not be collected for the 2022–23 fiscal year.
(2) Contractors shall reimburse providers operating within a family childcare home education network for the full amount of the certificate or voucher without deducting family fees.
(i) (1) Notwithstanding any other law, family fees shall not be collected between July 1, 2023, and September 30, 2023, inclusive.
(2) Contractors shall reimburse providers operating within a family childcare home education network for the full amount of the certificate or voucher without deducting family fees.
(j) Family fees accrued but uncollected prior to October 1, 2023, may be forgiven and not collected.
(k) (1) A California state preschool program or childcare provider paid with childcare subsidies, including, but not limited to, a family childcare home provider participating in a family childcare home education network, shall not absorb a reduction in pay for the California state preschool program space or voucher on account of a waiver of or reduction in family fees.
(2) The number of California state preschool program contracted spaces and childcare contracted spaces shall not be reduced on account of a reduction in the collection of family fees.

SEC. 56.

 The heading of Article 5 (commencing with Section 8252) is added to Chapter 2 of Part 6 of Division 1 of Title 1 of the Education Code, to read:

Article  5. Family Fees

SEC. 57.

 The heading of Article 10 (commencing with Section 8255) of Chapter 2 of Part 6 of Division 1 of Title 1 of the Education Code is repealed.

SEC. 58.

 Section 8255 of the Education Code is amended and renumbered to read:

8255. 8226. 
 (a) The Superintendent may approve and reimburse startup costs for contracts under this chapter or facilities in an amount not to exceed 15 percent of the expansion or increase of each agency’s total contract amount. Under no circumstances shall reimbursement for startup costs result in an increase in the agency’s total award amount. These funds shall be available for all of the following: Legislature finds and declares that the effectiveness of preschool programs can be increased through improved state administration, technical assistance to provider agencies, and monitoring. 
(b) It is the intent of the Legislature:
(1) The employment and orientation of necessary staff. That the Superintendent of Public Instruction develop clear, consistent, and appropriate regulations for preschool programs to replace policy guidelines that are not subject to the public hearing process, often inconsistent, and without the force of law. 
(2) The setting up of the program and facility. That the department make better use of staff with direct field experience in early childhood programs. 
(3) The finalization of rental agreements and the making of necessary deposits. That better criteria be developed for the awarding, evaluating, and renewal of preschool contracts. 
(4) The purchase of a reasonable inventory of materials and supplies. That improvements be made in the method of reimbursing preschool providers. 
(5) The purchase of an initial premium for insurance.
(b) (5)  Agencies shall submit claims for startup costs with their first quarterly reports. That increased effort be made to provide preschool program operators with technical assistance in meeting their contractual obligations. 
(c) The Legislature recognizes that allowances for startup costs are necessary for the establishment and stability of new preschool programs.

SEC. 59.

 The heading of Article 6 (commencing with Section 8255) is added to Chapter 2 of Part 6 of Division 1 of Title 1 of the Education Code, to read:

Article  6. Allocations and Expenditures

SEC. 60.

 Section 8256 of the Education Code is repealed.

8256.
 (a) The department shall promote full utilization of California state preschool program funds and match available unused funds with identified service needs. Notwithstanding the requirements of Part 2 (commencing with Section 10100) of Division 2 of the Public Contract Code, the department shall arrange interagency adjustments between different contractors with the same type of contract when both agencies mutually agree to a temporary transfer of funds for the balance of the fiscal year. The department shall establish timelines for interagency contract fund transfers.
(b) Notwithstanding the rulemaking provisions of the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code), the department may implement and administer this section through the issuance of guidance or other written directives, which may include, but is not limited to, establishing timelines for submittal of requests to transfer funds.
(c) This section shall become operative on July 1, 2019.

SEC. 61.

 Section 8257 of the Education Code is amended and renumbered to read:

8257. 8228. 
 (a)  The Superintendent of Public Instruction shall develop a plan and procedures for the allocation of expansion funding balances resulting from the prorata allocation of expansion for the partial year operations of new agencies. department shall do all of the following in administering the provisions of this chapter: 
(a) Apply sanctions against contracting agencies that have serious licensing violations, as defined and reported by the State Department of Social Services pursuant to Section 1597.11 of the Health and Safety Code.
(b) The plan shall provide for the distribution of such funds among contracting agencies whose enrollments include children with special needs and shall limit the agencies’ use of these funds to the purchase of approved equipment or materials or one-time-only services, or any of them, that will directly benefit the children with special needs. Except in the case of immediate terminations taken pursuant to Section 8315 or 8316, provide 90 days’ written notification to any contractor whose agreement is being terminated. Notwithstanding Article 13 (commencing with Section 8306), the department shall establish procedures for placing a contractor whose agreement is being terminated into receivership. Action to initiate receivership shall be at the discretion of the department, and may be taken against a contractor whose agreement is being terminated either immediately or within 90 days. The receiver shall not be a department employee. The receiver shall have sufficient experience in the administration of early childhood programs to ensure compliance with the terms of the receivership. 

SEC. 62.

 Section 8258 of the Education Code is amended and renumbered to read:

8258. 8229. 
 Unless (a)   specifically exempted by the Legislature, the administrative cost for all state-funded preschool programs and all federal programs administered by the state shall not exceed 15 percent of the funds provided for those programs. Eighty-five percent of these funds shall be used to provide services in accordance with rules and regulations, or contractual funding terms and conditions prescribed by the Superintendent of Public Instruction. No person employed by the department in a policymaking position in the area of preschool programs shall serve as a member of the board of directors, advisory council, or advisory committee for any agency receiving funds pursuant to this chapter. The provisions of this subdivision shall not apply to any person appointed prior to January 1, 1985. 
(b) No retired, dismissed, separated, or formerly employed person of the state department employed under the State Civil Service or otherwise appointed to serve in the state department may enter into a contract pursuant to Section 8233 in which the person engaged in any of the negotiations, transactions, planning, arrangements, or any part of the decisionmaking process relevant to the contract while employed in any capacity by the state department. The prohibition contained in this subdivision shall apply to the person only during the two-year period beginning on the date the person left state employment.
(c) For a period of 12 months following the date of their retirement, dismissal, or separation from state service, no person employed under State Civil Service or otherwise appointed to serve in the state department may enter into a contract pursuant to Section 8233 if the person was employed by the department in a policymaking position in the area of preschool programs within the 12-month period prior to their retirement, dismissal, or separation.
(d) For a period of 12 months following the date of their retirement, dismissal, or separation from state service, no person employed under State Civil Service or otherwise appointed to serve in the department may be employed by a contractor pursuant to Section 8233 if the person engaged in any of the negotiations, transactions, planning, arrangements, or any part of the decisionmaking process relevant to the contract while employed in any capacity by the department.
(e) The provisions of subdivisions (b), (c), and (d) shall not apply to any persons who were already in the situations described by these subdivisions prior to January 1, 1985.

SEC. 63.

 Section 8260 of the Education Code is amended and renumbered to read:

8260. 8230. 
 Each county shall, as a minimum, maintain the level of expenditure for child development services provided by the county during the 1970–71 fiscal year. These funds shall be used exclusively for child development programs and shall be considered unrestricted funds unless restricted by the county granting the funds. The department shall develop and coordinate resources, provide technical assistance, monitor program implementation, generate maximum federal reimbursement wherever possible for the federally eligible children, and facilitate alternative funding for those children for whom federal funds are not available. 

SEC. 64.

 Section 8261 of the Education Code is amended and renumbered to read:

8261. 8231. 
 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:
(a) The Legislature recognizes that preschool programs have made valuable contributions towards ensuring that public assistance recipients will be able to accept and maintain employment or employment-related training. Therefore, it is the intent of the Legislature that the Superintendent ensure that counties comply with the requirements of Section 8260. Provide clear guidelines for the selection of agencies when child development contracts are let, including, but not limited to, specification that any agency headquartered in the proposed service area 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. 
(b) The Superintendent shall ensure each county’s compliance with Section 8260 by not issuing funds to a local preschool contractor within a county until the Superintendent has received written certification from that county that the level of expenditure for childcare services provided by the county has been maintained at the 1970–71 fiscal year level pursuant to Section 8260. Funding provided by a county to a local preschool contractor shall not adversely affect the reimbursement received by the agency from the Superintendent pursuant to Section 8242 or 8244. 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. 
(c) Specify adequate standards of agency performance.
(d) 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.
(e) Specify standards for withholding payments to agencies that fail to submit required fiscal reports.
(f) 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.
(g) Authorize the department to develop a process that requires every contracting agency to recompete for continued funding no less frequently than every five years.

SEC. 65.

 Section 8261.5 of the Education Code is amended and renumbered to read:

8232.
 The Superintendent of Public Instruction is authorized to require the collection and submission of information from public and private agencies contracting with the department pursuant to this chapter, including local educational agencies, to meet state and federal reporting requirements and for the effective administration of preschool programs.

SEC. 66.

 Section 8262 of the Education Code is amended and renumbered to read:

8262. 8233. 
 The  Notwithstanding any other law, the  Superintendent of Public Instruction shall publish the methodology and data used, including county-specific data if such data is used, for the allocation of preschool funds. The superintendent shall make this information available to the public, within 90 days of an allocation. It is the intent of the Legislature to expedite the allocation of funds to the field as quickly as possible. Nothing in this section shall create a requirement for a public hearing on the allocation methodology prior to the issuance of a request for application. may enter into and execute local contractual agreements with any public or private entity or agency for the delivery of preschool services or the furnishing of property, facilities, personnel, supplies, equipment, and administrative services related to the delivery of preschool services. Prior to entering into or executing a local agreement, the department shall obtain annual approval from the Department of General Services and the Department of Finance as to the form and general content thereof. The agreements may only be made for the delivery of preschool services, or the furnishing of property, facilities, personnel, supplies, equipment, or administrative services related thereto, which conform with the provisions of this chapter. 

SEC. 67.

 Section 8262.1 of the Education Code is amended and renumbered to read:

8234.
 Contractors operating or providing services pursuant to this chapter may do both of the following:
(a) (1) Maintain records electronically, in compliance with state and federal standards, as determined by the department. A conversion from a paper record to an electronic format, as well as the storage of the electronic record, shall comply with the minimum standards described in Section 12168.7 of the Government Code and the standards for trustworthy electronic document or record preservation described in Chapter 15 (commencing with Section 22620.1) of Division 7 of Title 2 of the California Code of Regulations.
(2) Pursuant to Section 33421, the 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.
(3) This subdivision does not require a contractor to create records electronically.
(b) (1) Use a digital signature that complies with state and federal standards, as determined by the department, that may be a marking that is either computer generated or produced by electronic means and is intended by the signatory to have the same effect as a handwritten signature.
(2) The use of a digital signature shall have the same force and effect as the use of a manual signature if the requirements for the digital signatures and their acceptable technology, as provided in Section 16.5 of the Government Code and in Chapter 10 (commencing with Section 22000) of Division 7 of Title 2 of the California Code of Regulations, are satisfied.

SEC. 68.

 Section 8262.2 of the Education Code is amended and renumbered to read:

8235.
 Contractors operating or providing services pursuant to this chapter may use digital forms to allow families to apply for services, if those forms comply with state and federal standards.

SEC. 69.

 Section 8262.3 of the Education Code is amended and renumbered to read:

8236.
 On and after the date on which the Superintendent determines that the Financial Information System for California (Fi$Cal Project) has been implemented within the department, at the request of a contractor, for a contract executed by the department pursuant to Section 8233, the department shall request the Controller to make a payment via direct deposit by electronic funds transfer through the Fi$Cal Project into the contractor’s account at the financial institution of the contractor’s choice.

SEC. 70.

 Section 8262.5 of the Education Code is amended and renumbered to read:

8237.
 (a) In contract transfer situations in programs funded pursuant to this chapter, the Superintendent of Public Instruction may grant a certificate of operation to preschool facilities pursuant to this section.
(b) For purposes of maintaining continuity of services to children, the superintendent may grant a certificate of operation to any preschool facility that meets all of the following conditions:
(1) The superintendent, or the superintendent’s designee, has visited the facility and verified, in writing, to the State Department of Social Services licensing agency that the facility has no deficiencies at the time of granting the certificate of operation that would endanger the physical health, mental health, safety, or welfare of the children.
(2) Without a certificate of operation in lieu of a license from the State Department of Social Services, the facility would be ineligible to receive, as applicable, state or federal funds.
(c) A facility issued a certificate of operation pursuant to this section shall be deemed to be operating under licensing standards for childcare and development facilities specified by Chapters 3.4 (commencing with Section 1596.70), 3.5 (commencing with Section 1596.90), and 3.6 (commencing with Section 1597.30) of Division 2 of the Health and Safety Code and by Title 22 of the California Code of Regulations for the term specified on the certificate.
(d) A facility granted a certificate of operation shall submit a completed license application to the State Department of Social Services within 15 working days of the issuance of the certificate of operation. Failure to meet this requirement will result in the cancellation of the certificate of operation. The certificate of operation shall expire upon the issuance or denial of a license by the State Department of Social Services.

SEC. 71.

 Section 8263 of the Education Code is repealed.

8263.
 (a) The department shall disburse augmentations to the base allocation for the expansion of preschool programs to promote equal access to preschool services across the state.
(b) (1) In order to provide progress towards achieving access to full-day, full-year preschool services for all income-eligible four-year-old children and to promote access for all income-eligible four-year-old children to attend at least a part-day California state preschool program, the Superintendent of Public Instruction shall, in awarding new funding appropriated by the Legislature, in any fiscal year, for the expansion of California state preschool programs, use the formula developed pursuant to subdivision (c) and may use the priorities identified by local childcare and development planning councils, as provided for in Section 10486 of the Welfare and Institutions Code, and other high-quality data resources available to the department.
(2) Expansion funding awarded pursuant to paragraph (1) shall be apportioned at the rate described in Section 8242 and as determined in the annual Budget Act.
(3) A family childcare home education network shall be eligible to apply for expansion funding awarded pursuant to paragraph (1).
(c) The Superintendent of Public Instruction shall develop a formula for prioritizing the disbursement of augmentations pursuant to this section. The formula shall give priority to allocating funds to underserved areas. The Superintendent of Public Instruction shall develop the formula by using the definition of “underserved area” in Section 8205 and direct impact indicators of need for preschool services in the county or subcounty areas. For purposes of this section, “subcounty areas” include, but are not limited to, school districts, census tracts, or ZIP Code areas that are deemed by the Superintendent of Public Instruction to be most appropriate to the type of program receiving an augmentation. Direct impact indicators of need may include, but are not limited to, the teenage pregnancy rate, the unemployment rate, area household income, or the number or percentage of families receiving public assistance, eligible for Medi-Cal, or eligible for free or reduced-price school meals, and any unique characteristics of the population served by the type of program receiving an augmentation.
(d) To promote equal access to services and allocate resources equitably, the Superintendent of Public Instruction shall develop a process for identifying underserved areas and populations within counties. This guidance shall include reference to the direct impact indicators of need described in subdivision (c).
(e) This section does not preclude a local educational agency from subcontracting with an appropriate public or private agency to operate a California state preschool program, subject to Section 18140 of Title 5 of the California Code of Regulations, and to apply for funds made available pursuant to this section. If a school district chooses not to operate or subcontract for a California state preschool program, the Superintendent shall work with the county office of education and other eligible agencies to explore possible opportunities in contracting or alternative subcontracting to provide a California state preschool program.
(f) This section does not prevent eligible children who are receiving services from continuing to receive those services pursuant to this chapter in future years.

SEC. 72.

 Section 8263.1 of the Education Code is amended and renumbered to read:

8213.
 (a) For purposes of establishing initial income eligibility for services under this chapter, “income eligible” means that a family’s adjusted monthly income is at or below 85 percent of the state median income, adjusted for family size, as specified in subdivision (c).
(b) For purposes of establishing ongoing income eligibility under this chapter, “ongoing income eligible” means that a family’s adjusted monthly income is at or below 85 percent of the state median income, adjusted for family size, as specified in subdivision (c).
(c) The Department of Finance shall calculate the state median income for family sizes of one to four, inclusive, by using the most recent census data available on state median family income in the past 12 months by family size. The Department of Finance shall calculate the state median income for family sizes of five and above by using the most recent census data for a family of four and multiplying this number by the ratios for the appropriate family size used in the federal Low-Income Home Energy Assistance Program (42 U.S.C. Sec. 8621 et seq.) and specified in federal regulations at paragraphs (5), (6), and (7) of subdivision (b) of Section 96.85 of Title 45 of the Code of Federal Regulations. The Department of Finance shall update its calculations of the state median income for families according to the methodology provided in this subdivision and provide the updated data to the department no later than March 1 of each fiscal year.
(d) 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 childcare under this chapter.

SEC. 73.

 Section 8263.2 of the Education Code is repealed.

SEC. 74.

 Section 8263.3 of the Education Code is repealed.

SEC. 75.

 Section 8263.4 of the Education Code is repealed.

SEC. 76.

 Section 8264 of the Education Code is repealed.

8264.
 (a) The Legislature finds and declares that the state makes a substantial, annual investment in preschool programs for eligible families. It is in the best interests of children and their families, and the taxpayers of California, to have information about the development and learning abilities of children developed in these settings, health and other information transferred to, or otherwise available to, the pupil’s elementary school.
(b) When a child in a state-funded preschool program will be transferring to a local public school, the preschool program shall provide the parent or guardian with information from the previous year deemed beneficial to the pupil and the public school teacher, including, but not limited to, development issues, social interaction abilities, health background, and diagnostic assessments, if any. The preschool program may, with the permission of the parent or guardian, transfer this information to the pupil’s elementary school.
(c) Any child who has participated in a state subsidized preschool that maintains results-based standards, including the desired results accountability system, may have the performance information transferred to any subsequent or concurrent public school setting. Any transferred information shall be in summary form and only accomplished with the permission of the parent or guardian.

SEC. 77.

 The heading of Article 7 (commencing with Section 8264) is added to Chapter 2 of Part 6 of Division 1 of Title 1 of the Education Code, to read:

Article  7. Transfer of Information

SEC. 78.

 Section 8264.5 of the Education Code is amended and renumbered to read:

8238.
 The Superintendent may waive or modify California state preschool requirements in order to enable preschool programs to serve combinations of eligible children in areas of low population.

SEC. 79.

 Section 8264.6 of the Education Code is amended and renumbered to read:

8239.
 The Superintendent of Public Instruction may provide outreach services and technical assistance to new contracting agencies and to those providing preschool services during nontraditional times, in underserved geographic areas, and for children with special childcare needs.

SEC. 80.

 Section 8264.7 of the Education Code is amended and renumbered to read:

8240.
 (a) The Superintendent of Public Instruction shall establish rules and regulations for the staffing of all preschool programs under contract with the department.
(b) Priority shall be given by the department to the employment of persons in preschool programs with ethnic backgrounds which are similar to those of the child for whom child development services are provided.
(c) For purposes of staffing preschool programs, the role of a teacher in child supervision means direct supervision of the children as well as supervision of aides and groups of children.
(d) Family childcare homes shall operate pursuant to adult/child ratios prescribed in Chapter 7 (commencing with Section 86001) of Division 6 of Title 22 of the California Code of Regulations.
(e) Approval by the Superintendent of Public Instruction of any ongoing or new programs seeking to operate under the ratios and standards established by the Superintendent of Public Instruction under this chapter shall be based upon the following considerations:
(1) The type of facility in which care is being or is to be provided.
(2) The ability of the Superintendent of Public Instruction to implement a funding source change.
(3) The proportion of nonsubsidized children enrolled or to be enrolled by the agency.
(4) The most cost-effective ratios possible for the type of services provided or to be provided by the agency.

SEC. 81.

 Section 8264.8 of the Education Code is amended and renumbered to read:

8241.
 Until the Superintendent of Public Instruction promulgates regulations for center-based programs establishing staffing ratios, the following staffing ratios shall apply:
(a) Infants, 0 to 2 years old—1:3 adult-child ratio, 1:18 teacher-child ratio.
(b) Infants and toddlers, 0 to 2 years old—1:4 adult-child ratio, 1:16 teacher-child ratio.
(c) Children 3 to 6 years old—1:8 adult-child ratio, 1:24 teacher-child ratio.
(d) Children 6 to 10 years old—1:14 adult-child ratio, 1:28 teacher-child ratio.
(e) Children 10 to 13 years old—1:18 adult-child ratio, 1:36 teacher-child ratio.
(f) If groups of children of varying ages are commingled, the teacher and adult ratios shall be proportionate and appropriate to the ages and groups of children.

SEC. 82.

 The heading of Article 11 (commencing with Section 8265) of Chapter 2 of Part 6 of Division 1 of Title 1 of the Education Code is repealed.

SEC. 83.

 The heading of Article 8 (commencing with Section 8265) is added to Chapter 2 of Part 6 of Division 1 of Title 1 of the Education Code, to read:

Article  8. Local Programs

SEC. 84.

 Section 8265 of the Education Code is repealed.

8265.
 The governing board of any school district or a county superintendent of schools with the approval of the county board of education is authorized to establish and maintain preschool programs upon the approval of, and subject to the regulations of the Superintendent of Public Instruction.

SEC. 85.

 Section 8265.1 of the Education Code is repealed.

SEC. 86.

 Section 8265.2 of the Education Code is amended and renumbered to read:

8243.
 (a) (1) For purposes of this section, “early childhood mental health consultation service” means a service benefiting a child who is served in a California state preschool program.
(2) For purposes of this section, “early childhood mental health consultation service” includes, but is not limited to, all of the following:
(A) Support to respond effectively to all children, with a focus on young children with disabilities, challenging behaviors, and other special needs.
(B) Assistance through individual site consultations, provision of resources, formulation of training plans, referrals, and other methods that address the unique needs of programs and providers.
(C) Aid to providers in developing the skills and tools needed to be successful as they support the development and early learning of all children, including observing environments, facilitating the development of action plans, and supporting site implementation of those plans.
(D) The development of strategies for addressing prevalent child mental health concerns, including internalizing problems, such as appearing withdrawn, and externalizing problems, such as exhibiting challenging behaviors.
(E) If a child exhibits persistent and serious challenging behaviors, support with the pursuit and documentation of reasonable steps to maintain the child’s safe participation in the program, as described in Section 8222.
(b) The cost to an agency of providing an early childhood mental health consultation service shall be reimbursable pursuant to Section 8244 if all of the following apply:
(1) The early childhood mental health consultation service is provided on a schedule of sufficient and consistent frequency to ensure that a mental health consultant is available to partner with staff and families in a timely and effective manner, as determined by the department.
(2) The early childhood mental health consultation service is supervised and provided by a licensed marriage and family therapist, a licensed clinical social worker, a licensed professional clinical counselor, a licensed psychologist, a licensed child and adolescent psychiatrist, or others as determined by the department. The supervisor shall have at least three years of experience working with children 0 to 5 years of age, shall be adequately insured, shall have held their respective license for a minimum of two years, and shall be in full compliance with all continuing education requirements applicable to their profession.
(3) The early childhood mental health consultation service uses a relationship-based model emphasizing strengthening relationships among early childhood education providers, parents, children, and representatives of community systems and resources, and integrates reflective practice into the onsite consultation model.

SEC. 87.

 Section 8265.5 of the Education Code is amended and renumbered to read:

8244.
 (a) In order to reflect the additional expense of serving full-day preschool children who meet any of the criteria outlined in subdivision (b), the contractor’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, the adjustment factor shall be 1.54.
(2) For children with severe disabilities, the adjustment factor shall be 1.93.
(3) Prior to January 1, 2022, for children at risk of neglect, abuse, or exploitation, the adjustment factor shall be 1.1.
(4) Prior to January 1, 2022, for dual language learner children, the adjustment factor shall be 1.1.
(5) When early childhood mental health consultation services are provided, pursuant to Section 8243, the adjustment factor shall be 1.05.
(c) In order to reflect the additional expense of serving part-day preschool children, the contractor’s reported child days of enrollment for children meeting the criteria in paragraph (1), (2), or (5) of subdivision (b) shall be multiplied by the adjustment factors in those subdivisions.
(d) Use of the adjustment factors shall not increase the contractor’s total annual allocation.
(e) (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.
(f) 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.

SEC. 88.

 Section 8265.7 of the Education Code is repealed.

SEC. 89.

 Section 8266 of the Education Code is repealed.

8266.
 (a) The county superintendent of schools in each county, with the approval of the county board of education and the Superintendent of Public Instruction, shall have the authority to establish and maintain preschool programs and centers in the same manner and to the same extent as governing boards of school or community college districts, except that nothing in this section shall be construed as vesting in the county superintendents of schools any authority to alone effect the levy and collection of any county, school, or other local taxes for the support of any preschool programs.
(b) The establishment and maintenance of any preschool program by the county superintendent of schools shall be undertaken, subject to the prior approval of both the county board of education and the Superintendent of Public Instruction, upon the application of one or more school districts under the county superintendent’s jurisdiction.

SEC. 90.

 Section 8266.1 of the Education Code is amended and renumbered to read:

8245.
 (a) For each fiscal year, for the purposes of this chapter, reimbursement rates for full-day California state preschool shall be adjusted by the following reimbursement factors:
(1) Prior to January 1, 2022, California state preschool 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.
(2) Prior to January 1, 2022, California state preschool program providers serving children for not less than six 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.
(3) For California state preschool 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.
(b) It is the intent of the Legislature, notwithstanding the difference between the standard reimbursement rate and the regional market rate, to support serving children for the length of day that is appropriate under a provider’s contract.

SEC. 91.

 Section 8266.2 of the Education Code is repealed.

SEC. 92.

 Section 8266.5 of the Education Code is repealed.

SEC. 93.

 Section 8267 of the Education Code is repealed.

8267.
 The governing board of any school district or the county superintendent of schools may do the following:
(a) Accommodate in a preschool facility maintained by it children residing in another district, upon terms and under conditions agreed upon by the governing boards of both districts.
(b) Permit the use of, and furnish maintenance for, buildings, grounds, and equipment, and the use of existing administrative personnel for the purposes of this chapter.
(c) Adopt reasonable rules and regulations governing the preschool services or facilities maintained by it that are not in conflict with law or the standards and regulations established for child development services by the Superintendent of Public Instruction.

SEC. 94.

 Section 8268 of the Education Code is amended and renumbered to read:

8268. 8246. 
 The employees of school districts or community college districts, or county superintendents of schools in preschool services under this division shall have the same rights and privileges as are granted to employees of the same agencies in children’s centers. Superintendent of Public Instruction and the State Controller shall establish the necessary plans to advance preschool funds to contracting agencies. 

SEC. 95.

 Section 8269 of the Education Code is amended and renumbered to read:

8269. 8247. 
 (a) The Superintendent of Public Instruction shall adopt rules, regulations, and guidelines to facilitate the funding and reimbursement procedures required by this chapter.
Notwithstanding (b)   any other provisions of this chapter, a public or private agency, a school district, a community college district or a county superintendent of schools operating preschool facilities may enter into an agreement with the Employment Development Department that will provide an opportunity to participants in work incentive programs under Division 2 (commencing with Section 5000) of the Unemployment Insurance Code for training in child development facilities. Training pursuant to that agreement shall have the objective of preparation for a career in the field of child development. The Superintendent may establish any regulations the Superintendent deems advisable concerning conditions of service and hours of enrollment for children in the programs. 

SEC. 96.

 Section 8270 of the Education Code is amended and renumbered to read:

8270. 8248. 
 Notwithstanding any other provision of this chapter, the governing board of a school district or community college district, county superintendent of schools, or other unit of local general purpose government may enter into agreements with any city, city and county, or other public agency, or with a private foundation, nonprofit corporation, or proprietary agency for the furnishing to, or use by, the governing board, county superintendent of schools, or other unit of local general purpose government in carrying out the provisions of this chapter, of property, facilities, personnel, supplies, equipment and other necessary items and such city, county, city and county, other public agency, or private foundation or nonprofit corporation, is authorized to enter into such agreements. The Superintendent of Public Instruction shall support the coordination of resources available to state and local agencies serving preschool through grade 12 children and their families. During times of disaster this shall include coordinating resources to support the specific needs of children and families. 

SEC. 97.

 Section 8271 of the Education Code is amended and renumbered to read:

8271. 8249. 
 (a) The governing board of any school district or the county superintendent of schools shall establish in the county treasury a fund to be known as the “child development fund” into which shall be paid all funds received by the district or the county for, or from the operation of, preschool services under this chapter. The costs incurred in the maintenance and operation of preschool services shall be paid from the fund, with accounting to reflect specific funding sources.
(b) In  Funds of a district derived from the receipt of district taxes or derived from moneys apportioned to the district for the support of schools thereof, in addition to state moneys appropriated for the support of preschool services, fees, and federal funds, may be expended for, or in connection with, preschool services.  the event that operating agencies are unable to operate due to incomplete repairs and renovations authorized by administrating state agencies, or due to circumstances beyond the control of the operating agency, including earthquakes, floods, or fire, such programs shall not be penalized for incurred program expenses nor in subsequent annual budget allocations. 

SEC. 98.

 Section 8272 of the Education Code is amended and renumbered to read:

8272. 8250. 
 (a) The rules, regulations, and guidelines adopted by the Superintendent of Public Instruction pursuant to Sections 8231 and 8247 shall permit reimbursement for interest paid by contractors on private sector debt financing for the purchase, lease-purchase, repair, or renovation of preschool facilities owned or leased by contractors providing center-based preschool.
(b) The Superintendent of Public Instruction shall adopt regulations requiring contractors to demonstrate that the amount of interest paid in a year on private sector debt financing for the purposes identified in subdivision (a) does not exceed the value obtained by the state in the use of the facilities during the year for the preschool services program. The regulations shall include, but not be limited to, the following methods of making this demonstration:
(1) Amortization of a loan or lease-purchase contract on a straight-line basis for the purchase price of a portable building, including any transportation charges, installation charges, loan fees, taxes, points or other fees associated with the purchase, over a period of 15 years or more.
(2) Amortization of a loan or lease-purchase contract on a straight-line basis for the purchase price of a permanent building and real estate, including any loan fees, taxes, points or other fees associated with the purchase, over a period of 15 years or more.
(3) Evidence acceptable to the Superintendent of Public Instruction that loan payments for the purchase of a portable building or permanent building and real estate, including principal and interest, do not exceed the fair market rental cost that the contractor would have paid if the property was not purchased.
The (c)   governing board of any school district maintaining a preschool program may include in its budget the amount necessary to initiate, operate, and maintain a preschool program pursuant to this chapter and the board of supervisors shall levy a school district tax necessary to raise that amount. The tax shall be in addition to any other school district tax authorized by law to be levied. Loans or lease-purchase agreements amortized over the number of years designated in subdivision (b), but due in a fewer number of years, shall not be disallowed because of the shorter due date. 

SEC. 99.

 Section 8272.1 of the Education Code is amended and renumbered to read:

8251.
 An agency contracting with the department to provide California state preschool program services may schedule up to two days of staff training, per contract period, using state reimbursement funding on the topics including procedures for emergencies in preschool programs, licensing regulations relating to preschool programs, recognition and reporting of suspected abuse of children in preschool programs, managing challenging behaviors and preventing expulsion of children, and addressing items on the program’s Quality Rating and Improvement System (QRIS) Quality plan.

SEC. 100.

 The heading of Article 11.5 (commencing with Section 8273) of Chapter 2 of Part 6 of Division 1 of Title 1 of the Education Code is repealed.

SEC. 101.

 The heading of Article 9 (commencing with Section 8273) is added to Chapter 2 of Part 6 of Division 1 of Title 1 of the Education Code, to read:

Article  9. Individualized Counties of Alameda, Contra Costa, Fresno, Marin, Monterey, San Benito, San Diego, Santa Clara, Santa Cruz, Solano, and Sonoma Childcare Subsidy Plans

SEC. 102.

 Section 8273 of the Education Code is amended and renumbered to read:

8273. 8252. 
 (a) The Superintendent shall use the fee schedule developed in conjunction with the State Department of Social Services for families using full-day preschool services pursuant to this chapter, including families receiving services pursuant to subdivision (a) of Section 8211.
The (b)   Counties of Alameda, Contra Costa, Fresno, Marin, Monterey, San Benito, San Diego, Santa Clara, Santa Cruz, Solano, and Sonoma may, individually as a pilot project, develop and implement individualized county childcare subsidy plans. The plans shall ensure that childcare subsidies received by the above-named counties are used to address local needs, conditions, and priorities of working families in their respective communities. Families shall be assessed a single flat monthly fee for all state subsidized early childhood services received, including California state preschool program services and services received through childcare and development programs administered by the State Department of Social Services, pursuant to Section 10290 of the Welfare and Institutions Code. 
(c) 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.
(d) Family fees shall be assessed at initial enrollment and reassessed at recertification.
(e) Family fees shall be used by contractors to pay reasonable and necessary costs for providing additional services.
(f) 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.
(g) Notwithstanding any other provision of this article, family fees shall not be collected for the 2021–22 fiscal year pursuant to Section 263 of the act that added this subdivision.

SEC. 103.

 Section 8273.1 of the Education Code is amended and renumbered to read:

8253.
 (a) A family that receives services pursuant to paragraph (1) of subdivision (a) of Section 8211 may be exempt from family fees for up to 12 months.
(b) Notwithstanding any other law, a family receiving CalWORKs cash aid shall not be charged a family fee.
(c) Notwithstanding any other law, commencing with the 2014–15 fiscal year, family fees shall not be assessed for the part-day California preschool program to eligible families whose children are enrolled in that program pursuant to Article 2 (commencing with Section 8207).

SEC. 104.

 Section 8273.3 of the Education Code is amended and renumbered to read:

8254.
 (a) The family fee schedule shall provide, among other things, that a contractor or provider may require parents to provide diapers. A contractor or provider offering field trips either may include the cost of the field trips within the service rate charged to the parent or may charge parents an additional fee. Federal or state money shall not be used to reimburse parents for the costs of field trips if those costs are charged as an additional fee. A contractor or family childcare home provider that charges parents an additional fee for field trips shall inform parents, before enrolling the child, that a fee may be charged and that no reimbursement will be available.
(b) A contractor or family childcare home provider may require parents to provide diapers or charge parents for field trips, subject to all of the following conditions:
(1) The contractor or family childcare home provider has a written policy adopted by the agency’s governing board that includes parents in the decisionmaking process regarding both of the following:
(A) Whether or not, and how much, to charge for field trip expenses.
(B) Whether or not to require parents to provide diapers.
(2) The contractor or family childcare home provider does not charge fees in excess of twenty-five dollars ($25) per child in a contract year.
(3) The contractor or family childcare home provider does not deny participation in a field trip due to a parent’s inability or refusal to pay the fee.
(4) The contractor or family childcare home provider does not take adverse action against a parent for the parent’s inability or refusal to pay the fee.
(c) A contractor or family childcare home provider shall establish a system that prevents the identification of children based on whether or not a child’s family has paid field trip fees.
(d) The contractor or provider shall report expenses incurred and income received for field trips to the department. Income received shall be reported as restricted income.

SEC. 105.

 The heading of Article 12 (commencing with Section 8275) of Chapter 2 of Part 6 of Division 1 of Title 1 of the Education Code is repealed.

SEC. 106.

 Section 8275 of the Education Code is amended and renumbered to read:

8275. 8255. 
 (a) For purposes of this article, “plan” means an individualized county childcare subsidy plan developed and approved under the pilot project described in Section 8273.
(b) (a)  A plan shall include  The Superintendent may approve and reimburse startup costs for contracts under this chapter or facilities in an amount not to exceed 15 percent of the expansion or increase of each agency’s total contract amount. Under no circumstances shall reimbursement for startup costs result in an increase in the agency’s total award amount. These funds shall be available for  all of the following:
(1) An assessment to identify the county’s goals for its subsidized childcare system. The assessment shall examine whether the current structure of subsidized childcare funding adequately supports working families in the county and whether the county’s childcare goals coincide with the state’s requirements for funding, eligibility, priority, and reimbursement. The assessment shall also identify barriers in the state’s childcare subsidy system that inhibit the county from meeting its childcare goals. In conducting the assessment, the county shall consider all of the following: The employment and orientation of necessary staff. 
(A)  Needs assessment data collected pursuant to Section 10486 of the Welfare and Institutions Code.
(B)  Data collected by resource and referral agencies pursuant to subparagraph (B) of paragraph (3) of subdivision (a) of Section 10219 of the Welfare and Institutions Code.
(C) The county’s self-sufficiency income level.
(D) The cost of providing childcare.
(2) (A) Development of a local policy to eliminate state-imposed regulatory barriers to the county’s achievement of its desired outcomes for subsidized childcare.
(B) (2)  The local policy shall do all of the following: setting up of the program and facility. 
(i) Prioritize lowest income families first.
(ii) Follow the family fee schedule established pursuant to Section 8252 of this code or Section 10290 of the Welfare and Institutions Code, as applicable for those families who are income eligible, as defined by Section 8213 of this code or Section 10271.5 of the Welfare and Institutions Code, as applicable, and provide the exemptions for family fees specified in Section 8253 of this code or Section 10291 of the Welfare and Institutions Code, as applicable.
(iii) Meet local goals that are consistent with the state’s childcare goals.
(iv) Identify existing policies that would be affected by the county’s plan.
(v) (I) Authorize an agency that provides childcare and development services in the county through a contract with the department to apply to the department to amend existing contracts in order to benefit from the local policy.
(II) The department shall approve an application to amend an existing contract if the plan or modification of the plan is approved pursuant to Section 8277.
(III) The contract of a department contractor who does not elect to request an amendment to its contract remains operative and enforceable.
(vi) Provide a family that qualifies for the second or third stage of childcare services pursuant to Chapter 21 (commencing with Section 10370) of Part 1.8 of Division 9 of the Welfare and Institutions Code, for purposes of eligibility, fees, and reimbursements, the same or higher level of benefit as a family that qualifies for subsidized childcare on another basis pursuant to the local policy, except as otherwise provided in Chapter 21 (commencing with Section 10370) of Part 1.8 of Division 9 of the Welfare and Institutions Code. Nothing in this section shall be interpreted to impact or reduce any element in the second or third stage of childcare services pursuant to Chapter 21 (commencing with Section 10370) of Part 1.8 of Division 9 of the Welfare and Institutions Code that provides a greater benefit to participating families than is provided for in the local policy.
(C) The local policy may supersede state law concerning childcare subsidy programs with regard only to the following factors:
(i) Eligibility criteria, including, but not limited to, age, family size, time limits, income level, and special needs considerations.
(ii) Fees, including, but not limited to, family fees, sliding scale fees, and copayments for those families who are not income eligible, as defined by Section 8213 of this code or Section 10271.5 of the Welfare and Institutions Code, as applicable.
(iii) Reimbursement rates, including adjustment factors identified in Section 8244 of this code or Section 10281.5 of the Welfare and Institutions Code, as applicable.
(iv) Methods of maximizing the efficient use of subsidy funds, including, but not limited to, multiyear contracting with the department for center-based childcare, and interagency agreements that allow for flexible and temporary transfer of funds among agencies.
(v) Families with children enrolled in part-day California state preschool program services, pursuant to Article 2 (commencing with Section 8207), may be eligible for up to two 180-day periods within a 24-month period without the family being certified as a new enrollment each year.
(vi) The ratio of four-year-old children in state preschool programs pursuant to subdivision (b) of Section 8263.
(3) Recognition that all funding sources utilized by contractors that provide childcare and development services in the county are eligible to be included in the county’s plan.
(4) (3)  Establishment of measurable outcomes to evaluate the success of the plan to achieve the county’s childcare goals, and to overcome any barriers identified in the state’s childcare subsidy system. The finalization of rental agreements and the making of necessary deposits. 
(c) (4)  Nothing in this section shall be construed to permit the county to change the regional market rate survey results for the county. The purchase of a reasonable inventory of materials and supplies. 
(d) (5)  Nothing in this section shall allow a county to adopt as part of its pilot project an increase to the regional market reimbursement rate beyond the level provided in the annual Budget Act. The purchase of an initial premium for insurance. 
(b) Agencies shall submit claims for startup costs with their first quarterly reports.
(e) (c)  A plan may include stage one childcare services in addition to alternative payment and direct service childcare programs. If the plan includes CalWORKs childcare, pilot administrators shall consult with their county welfare department to identify opportunities for alignment, ensuring families experience no break in their childcare services due to a transition between the three stages of childcare services and policies implemented in the pilot project. The Legislature recognizes that allowances for startup costs are necessary for the establishment and stability of new preschool programs. 

SEC. 107.

 Section 8275.5 of the Education Code is amended and renumbered to read:

8256.
 (a) The department shall promote full utilization of California state preschool program funds and match available unused funds with identified service needs. Notwithstanding the requirements of Part 2 (commencing with Section 10100) of Division 2 of the Public Contract Code, the department shall arrange interagency adjustments between different contractors with the same type of contract when both agencies mutually agree to a temporary transfer of funds for the balance of the fiscal year. The department shall establish timelines for interagency contract fund transfers.
(b) Notwithstanding the rulemaking provisions of the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code), the department may implement and administer this section through the issuance of guidance or other written directives, which may include, but is not limited to, establishing timelines for submittal of requests to transfer funds.
(c) This section shall become operative on July 1, 2019.

SEC. 108.

 Section 8276 of the Education Code is amended and renumbered to read:

8276. 8257. 
 (a)  The department shall establish instructions and timelines for submittal or modifications of the plans, including, but not limited to, plan templates and timelines for plan submittal and requests for addition of participating contractors. Superintendent of Public Instruction shall develop a plan and procedures for the allocation of expansion funding balances resulting from the prorata allocation of expansion for the partial year operations of new agencies. 
(b) The plan shall provide for the distribution of such funds among contracting agencies whose enrollments include children with special needs and shall limit the agencies’ use of these funds to the purchase of approved equipment or materials or one-time-only services, or any of them, that will directly benefit the children with special needs.

SEC. 109.

 Section 8276.5 of the Education Code is repealed.

SEC. 110.

 Section 8276.7 of the Education Code is amended and renumbered to read:

8258.
 Unless specifically exempted by the Legislature, the administrative cost for all state-funded preschool programs and all federal programs administered by the state shall not exceed 15 percent of the funds provided for those programs. Eighty-five percent of these funds shall be used to provide services in accordance with rules and regulations, or contractual funding terms and conditions prescribed by the Superintendent of Public Instruction.

SEC. 111.

 Section 8277 of the Education Code is repealed.

8277.
 (a) (1) The plan shall be submitted to the local planning council, as defined in Section 10480 of the Welfare and Institutions Code, for approval. Upon approval of the plan by the local planning council, the board of supervisors of the county shall hold at least one public hearing on the plan. Following the hearing, if the board votes in favor of the plan, the plan shall be submitted to the department for review.
(2) Initial proposed rate changes not included in the plan shall be approved by the board of supervisors of the county prior to final approval of the plan by the department.
(b) Within 30 days of receiving the plan, the department shall review and either approve or disapprove the plan.
(c) Plan modifications, including subsequent rate changes, shall be submitted to the local planning council, as defined in subdivision (g) of Section 10480 of the Welfare and Institutions Code, for approval prior to final approval of the plan by the department.
(d) Within 30 days of receiving a modification of the plan, the department shall review and either approve or disapprove that modification of the plan.
(e) The department may disapprove only those portions of a plan, or any modification of the plan, that are not in conformance with this article or that are in conflict with federal law.

SEC. 112.

 Section 8277.1 of the Education Code is repealed.

SEC. 113.

 Section 8277.2 of the Education Code is repealed.

SEC. 114.

 Section 8277.3 of the Education Code is repealed.

SEC. 115.

 Section 8277.4 of the Education Code is repealed.

SEC. 116.

 Section 8277.5 of the Education Code is repealed.

SEC. 117.

 Section 8277.6 of the Education Code is repealed.

SEC. 118.

 Section 8277.65 of the Education Code is repealed.

SEC. 119.

 Section 8277.66 of the Education Code is repealed.

SEC. 120.

 Section 8277.7 of the Education Code is repealed.

SEC. 121.

 Section 8277.8 of the Education Code is repealed.

SEC. 122.

 Section 8278.3 of the Education Code is repealed.

SEC. 123.

 Section 8279 of the Education Code is amended and renumbered to read:

8279. 8260. 
 (a)  Using a template developed by the department, the county shall prepare and submit to the Legislature, the State Department of Social Services, and the department a report that summarizes the success of the county’s plan, and the county’s ability to maximize the use of funds and to improve and stabilize childcare in the county. The report shall be submitted as follows:
(1) At the end of year one of the plan, a report that describes the first year of implementation.
(2) At the end of year three of the plan, a report that describes years two and three of implementation.
(3) At the end of year five of the plan, a report that describes years four and five of implementation.
(b) The department shall review the reports submitted pursuant to subdivision (a), along with any applicable programmatic and fiscal compliance records submitted by the contracting agencies participating in the plan, and determine whether to allow the county to continue with the plan without change, or whether to require modifications to be made to the plan.
(c) The county shall, by the end of the first fiscal year of operation under the approved plan, demonstrate, in the report required pursuant to this section, that there was no reduction in the number of children served as compared to the number of children served before the implementation of the plan.
(d) Each  A report to be submitted pursuant to subdivision (a) shall be submitted in compliance with Section 9795 of the Government Code.  county shall, as a minimum, maintain the level of expenditure for child development services provided by the county during the 1970–71 fiscal year. These funds shall be used exclusively for child development programs and shall be considered unrestricted funds unless restricted by the county granting the funds. 

SEC. 124.

 Section 8279.1 of the Education Code is amended and renumbered to read:

8261.
 (a) The Legislature recognizes that preschool programs have made valuable contributions towards ensuring that public assistance recipients will be able to accept and maintain employment or employment-related training. Therefore, it is the intent of the Legislature that the Superintendent ensure that counties comply with the requirements of Section 8260.
(b) The Superintendent shall ensure each county’s compliance with Section 8260 by not issuing funds to a local preschool contractor within a county until the Superintendent has received written certification from that county that the level of expenditure for childcare services provided by the county has been maintained at the 1970–71 fiscal year level pursuant to Section 8260. Funding provided by a county to a local preschool contractor shall not adversely affect the reimbursement received by the agency from the Superintendent pursuant to Section 8242 or 8244.

SEC. 125.

 Section 8279.2 of the Education Code is amended and renumbered to read:

8262.
 The Superintendent of Public Instruction shall publish the methodology and data used, including county-specific data if such data is used, for the allocation of preschool funds. The superintendent shall make this information available to the public, within 90 days of an allocation. It is the intent of the Legislature to expedite the allocation of funds to the field as quickly as possible. Nothing in this section shall create a requirement for a public hearing on the allocation methodology prior to the issuance of a request for application.

SEC. 126.

 Section 8279.3 of the Education Code is amended and renumbered to read:

8263.
 (a) The department shall disburse augmentations to the base allocation for the expansion of preschool programs to promote equal access to preschool services across the state.
(b) (1) In order to provide progress towards achieving access to full-day, full-year preschool services for all income eligible four-year-old children and to promote access for all income-eligible four-year-old children to attend at least a part-day California state preschool program, the Superintendent of Public Instruction shall, in awarding new funding appropriated by the Legislature, in any fiscal year, for the expansion of California state preschool programs, use the formula developed pursuant to subdivision (c) and may use the priorities identified by local childcare and development planning councils, as provided for in Section 10486 of the Welfare and Institutions Code, and other high-quality data resources available to the department.
(2) Expansion funding awarded pursuant to paragraph (1) shall be apportioned at the rate described in Section 8242 and as determined in the annual Budget Act.
(3) A family childcare home education network shall be eligible to apply for expansion funding awarded pursuant to paragraph (1).
(c) The Superintendent of Public Instruction shall develop a formula for prioritizing the disbursement of augmentations pursuant to this section. The formula shall give priority to allocating funds to underserved areas. The Superintendent of Public Instruction shall develop the formula by using the definition of “underserved area” in Section 8205 and direct impact indicators of need for preschool services in the county or subcounty areas. For purposes of this section, “subcounty areas” include, but are not limited to, school districts, census tracts, or ZIP Code areas that are deemed by the Superintendent of Public Instruction to be most appropriate to the type of program receiving an augmentation. Direct impact indicators of need may include, but are not limited to, the teenage pregnancy rate, the unemployment rate, area household income, or the number or percentage of families receiving public assistance, eligible for Medi-Cal, or eligible for free or reduced-price school meals, and any unique characteristics of the population served by the type of program receiving an augmentation.
(d) To promote equal access to services and allocate resources equitably, the Superintendent of Public Instruction shall develop a process for identifying underserved areas and populations within counties. This guidance shall include reference to the direct impact indicators of need described in subdivision (c).
(e) This section does not preclude a local educational agency from subcontracting with an appropriate public or private agency to operate a California state preschool program and to apply for funds made available pursuant to this section. If a school district chooses not to operate or subcontract for a California state preschool program, the Superintendent shall work with the county office of education and other eligible agencies to explore possible opportunities in contracting or alternative subcontracting to provide a California state preschool program.
(f) This section does not prevent eligible children who are receiving services from continuing to receive those services pursuant to this chapter in future years.

SEC. 127.

 Section 8279.4 of the Education Code is repealed.

SEC. 128.

 Section 8279.5 of the Education Code is repealed.

SEC. 129.

 Section 8279.6 of the Education Code is repealed.

SEC. 130.

 Section 8279.7 of the Education Code is repealed.

SEC. 131.

 The heading of Article 13 (commencing with former Section 8280) of Chapter 2 of Part 6 of Division 1 of Title 1 of the Education Code is repealed.

SEC. 132.

 Article 13.1 (commencing with Section 8280) of Chapter 2 of Part 6 of Division 1 of Title 1 of the Education Code is repealed.

SEC. 133.

 The heading of Article 13.5 (commencing with Section 8282) of Chapter 2 of Part 6 of Division 1 of Title 1 of the Education Code is repealed.

SEC. 134.

 Section 8282 of the Education Code is amended and renumbered to read:

8282. 8264. 
 (a) The Legislature finds and declares that the state makes a substantial, annual investment in preschool programs for eligible families. It is in the best interests of children and their families, and the taxpayers of California, to have information about the development and learning abilities of children developed in these settings, health and other information transferred to, or otherwise available to, the pupil’s elementary school.
Notwithstanding (b)   the rulemaking provisions of the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code), the department and the State Department of Social Services may implement and administer this article through the issuance of guidance or other written directives, which may include, but is  When a child in a state-funded preschool program will be transferring to a local public school, the preschool program shall provide the parent or guardian with information from the previous year deemed beneficial to the pupil and the public school teacher, including, but  not limited to, establishing timelines for submittal of plans and any modifications, plan templates, and processes for requesting additional participating contractors. development issues, social interaction abilities, health background, and diagnostic assessments, if any. The preschool program may, with the permission of the parent or guardian, transfer this information to the pupil’s elementary school. 
(c) Any child who has participated in a state subsidized preschool that maintains results-based standards, including the desired results accountability system, may have the performance information transferred to any subsequent or concurrent public school setting. Any transferred information shall be in summary form and only accomplished with the permission of the parent or guardian.

SEC. 135.

 Section 8282.5 is added to the Education Code, to read:

8282.5.
 Commencing on the effective date of the act that added this section, the components of the plan relating to preschool shall be overseen by the department and the components of the plan addressing all other childcare programs shall be overseen by the State Department of Social Services.

SEC. 136.

 The heading of Article 10 (commencing with Section 8283) is added to Chapter 2 of Part 6 of Division 1 of Title 1 of the Education Code, to read:

Article  10. Childcare Subsidy Plan for the City and County of San Francisco

SEC. 137.

 Article 14 (commencing with Section 8286) of Chapter 2 of Part 6 of Division 1 of Title 1 of the Education Code is repealed.

SEC. 138.

 Section 8288.5 is added to the Education Code, to read:

8288.5.
 Commencing on the effective date of the act that added this section, the components of the plan relating to preschool shall be overseen by the department and the components of the plan addressing all other childcare programs shall be overseen by the State Department of Social Services.

SEC. 139.

 The heading of Article 11 (commencing with Section 8289) is added to Chapter 2 of Part 6 of Division 1 of Title 1 of the Education Code, to read:

Article  11. Individualized County of San Mateo Childcare Subsidy Plan

SEC. 140.

 Section 8294.5 is added to the Education Code, to read:

8294.5.
 Commencing on the effective date of the act that added this section, the components of the plan relating to preschool shall be overseen by the department and the components of the plan addressing all other childcare programs shall be overseen by the State Department of Social Services.

SEC. 141.

 The heading of Article 12 (commencing with Section 8295) is added to Chapter 2 of Part 6 of Division 1 of Title 1 of the Education Code, to read:

Article  12. Child Development Program Personnel Qualifications

SEC. 142.

 Section 8298 is added to the Education Code, to read:

8298.
 (a) An entity operating preschool programs providing services to children at two or more sites, including through more than one contract or subcontract funded pursuant to this chapter, shall employ a program director who possesses one of the following:
(1) A permit issued by the Commission on Teacher Credentialing authorizing supervision of a childcare and development program operating in multiple sites.
(2) Any person who meets the following criteria is eligible to supervise a preschool program operating in multiple sites and serve in an instructional capacity in a preschool program:
(A) Possesses a current credential issued by the Commission on Teacher Credentialing authorizing teaching service in elementary school or a single subject credential in home economics.
(B) Six units in administration and supervision of early childhood education or child development, or both. The requirement set forth in this paragraph does not apply to any person who was employed as a program director prior to January 1, 1993, in a preschool program receiving funding under this chapter.
(C) Twelve units in early childhood education or child development, or both, or at least two years’ experience in early childhood education or a preschool program.
(3) A waiver issued by the Superintendent of Public Instruction pursuant to this section.
(b) (1) For purposes of this section, the following definitions apply:
(A) “Administrative responsibility” means awareness of the financial and business circumstances of the program, and, in appropriate cases, supervision of administrative and support personnel and the knowledge and authority to direct or modify administrative practices and procedures to ensure compliance to administrative and financial standards imposed by law.
(B) “Program director” means a person who, regardless of their title, has programmatic and administrative responsibility for an early childhood program that provides services to children at two or more sites.
(C) “Programmatic responsibility” means overall supervision of curriculum and instructional staff, including instructional aides, and the knowledge and authority to direct or modify program practices and procedures to ensure compliance to applicable quality and health and safety standards imposed by law.
(2) “Administrative responsibility” and “programmatic responsibility” also include the responsibility to act as the representative for the preschool program to the department. With respect to preschool programs operated through family childcare homes, “administrative responsibility” and “programmatic responsibility” include ensuring that quality services are provided in the family childcare homes.
(c) The program director may also serve as the site supervisor at one of the sites, provided that the program director fulfills both the duties of a “childcare center director,” as set forth in Section 101215.1 of Title 22 of the California Code of Regulations, and meets the qualifications for a site supervisor, as set forth in Section 8205.
(d) The Superintendent of Public Instruction may waive the qualifications for a program director upon a finding of either of the following circumstances:
(1) The applicant is making satisfactory progress toward securing a permit issued by the Commission on Teacher Credentialing authorizing supervision of a childcare and development program operating in two or more sites or fulfilling the qualifications for program directors of childcare and development programs that provide service to severely disabled children, as specified in Section 10381.5 of the Welfare and Institutions Code.
(2) The place of employment is so remote from institutions offering the necessary coursework as to make continuing education impracticable and the contractor has made a diligent search but has been unable to hire a more qualified applicant.
(e) The Superintendent of Public Instruction, upon good cause, may, by rule, identify and apply grounds, in addition to those specified in subdivision (d), for granting a waiver of the qualifications for program director.

SEC. 143.

 The heading of Article 13 (commencing with Section 8306) is added to Chapter 2 of Part 6 of Division 1 of Title 1 of the Education Code, to read:

Article  13. Administrative Review

SEC. 144.

 The heading of Article 15 (commencing with Section 8320) of Chapter 2 of Part 6 of Division 1 of Title 1 of the Education Code is repealed.

SEC. 145.

 Section 8320 of the Education Code is amended and renumbered to read:

8320. 8265. 
 (a) The California Universal Preschool Planning Grant Program is hereby established with the goal of expanding access universally to preschool programs for three- and four-year-old children across the state through a mixed-delivery system.
(b) As used in this section, the following definitions shall apply:
(1) “Children with exceptional needs” has the same meaning as defined in Section 8205.
(2) “Mixed-delivery system” means a system of early childhood education services that is delivered through a variety of providers, programs, and settings, including Head Start agencies or delegate agencies funded under the Head Start Act (42 U.S.C. Sec. 9831, et seq.), public, private, or proprietary agencies, including community-based organizations, public schools, and local educational agencies that offer center-based childcare and preschool programs, tribal childcare and preschool, and family childcare through a family childcare home education network.
(3) “Three- and four-year-old children” has the same meaning as “three-year-old children” and “four-year-old children,” as those terms are defined in Section 8205.
(4) “Universal preschool” means those programs that offer part-day or full-day, or both, educational programs for three- and four-year-old children, and may be offered through a mixed-delivery system.
(c) (1) (A) Pursuant to an appropriation in the annual Budget Act, for each of the 2022–23, 2023–24, and 2024–25 fiscal years, the Superintendent shall consult with the Director of Social Services and shall create an application to award grant funds to one designated lead agency within each county, as set forth in this section. Each county shall submit a single planning grant application.
(B) The county grant submission shall contain a signed agreement from the resource and referral agencies in the county and the local planning council.
(2) (A) (i) A local planning council established pursuant to Article 2 (commencing with Section 10485) of Chapter 31 of Part 1.8 of Division 9 of the Welfare and Institutions Code shall have first priority for grant awards from their county’s allocation of funds calculated for each county, as described paragraph (1) of subdivision (d).
(ii) A local planning council shall express interest by submitting a letter of intent to the department on a template developed by the Superintendent in consultation with the State Department of Social Services.
(iii) If a local planning council wishes to partner with other counties in their region pursuant to subdivision (j), the local planning council shall indicate this intent in their letter of intent.
(B) (i) In counties where the local planning council does not submit a letter of intent to receive an award, a resource and referral agency established pursuant to Chapter 2 (commencing with Section 10217) of Part 1.8 of Division 9 of the Welfare and Institutions Code that operates in the county may submit a joint letter of intent with the local planning council to the Superintendent, on a template developed by the Superintendent in consultation with the State Department of Social Services, indicating interest in conducting the activities of this grant in their county.
(ii) The joint letter submitted pursuant to clause (i) shall designate a lead fiscal agency and describe the partnership the resource and referral agencies will use to meet the requirements of the grant.
(iii) If a resource and referral agency wishes to partner with other counties in their region pursuant to subdivision (j), the resource and referral agency shall indicate this intent in their letter of intent.
(C) Once letters of intent have been submitted, the Superintendent shall require the designated lead agency from each county to submit an application that includes, but is not limited to, all of the following information:
(i) A description of how it will allocate funds and achieve tasks described in subdivision (f).
(ii) A description of how the applicant will partner with the county office of education and other local educational agencies in the county on the work required pursuant to Section 8281.5, to ensure activities conducted under this grant meet community needs for universal preschool in a mixed-delivery system not already addressed.
(D) All grantees shall be required to coordinate with the county office of education on the work required pursuant to Section 8281.5. In counties where the county office of education operates the resource and referral agency or the local planning council, the staff responsible for those activities at the county office of education shall be included and financially supported to participate in the activities of this grant.
(E) The grantee shall form a single working group that shall include, but not be limited to, representatives from the county offices of education, school districts, charter schools offering transitional kindergarten, resource and referral programs, alternative payment programs operating preschool programs, First 5 county commissions, contracted state preschool programs, including both local educational agency and community-based organization programs, general childcare programs serving preschool-age children, tribal preschool programs, private center-based childcare preschool providers, licensed family childcare providers, educators, exclusive bargaining representatives, Head Start, faculty at local institutions of higher education focusing on child development or early childhood education, and early childhood education teacher preparation programs, including institutions of higher education.
(d)  The Superintendent shall develop and administer a grant process and award grant funds to each county that applies for funding for the 2022–23 fiscal year if the application conforms with the requirements of this section. Funds shall be allocated using a methodology for determining the amount of funds in each county that accounts for all of the following: governing board of any school district or a county superintendent of schools with the approval of the county board of education is authorized to establish and maintain preschool programs upon the approval of, and subject to the regulations of the Superintendent of Public Instruction. 
(1) (A) Base grant funding that reflects the number of three- and four-year-old children in the county or region.
(B) Add-on funding that reflects both of the following:
(i) The number of three- and four-year-old children in the county or region who are currently eligible for, but not enrolled in, subsidized preschool programs as part of the mixed-delivery system for universal preschool, as determined by the Superintendent.
(ii) The number of three- and four-year-old children with exceptional needs in the county or region.
(2) To the extent funds are available in the Budget Act of 2023, existing grantees shall be eligible to apply for a renewal grant subject to terms and conditions developed by the Superintendent.
(3) (A) To the extent funds are available in the Budget Act of 2024, the following entities shall be eligible to apply for a grant subject to terms and conditions developed by the Superintendent:
(i) Existing grantees.
(ii) Newly formed consortia.
(iii) Individual counties that participated in a former consortium for this grant, with the first priority for the funds going to the local planning council, pursuant to the process described in subdivision (c), as appropriate.
(B) Notwithstanding subparagraph (A), in a county that previously received funds from this grant, where the previous grantee or consortia of grantees does not intend to reapply for funding pursuant to subparagraph (A), the following entities shall be eligible to apply as part of an existing or newly formed consortia, with the following priority order:
(i) The local planning council.
(ii) Resource and referral agencies.
(iii) First 5 county commissions.
(C) If an entity applies for the grant pursuant to subparagraph (B), the grant submission shall include a signed statement, from all entities within the county with a higher priority and within the same priority, that acknowledges their intent not to apply for the funds.
(D) An entity receiving funds pursuant to this paragraph shall complete all activities of the grant pursuant to subparagraph (D) of paragraph (2) of subdivision (c), subparagraph (E) of paragraph (2) of subdivision (c), and subdivision (f).
(E) The entity applying for funds in each county pursuant to this paragraph shall express interest by submitting a letter of intent to the department on a template developed by the Superintendent, before submitting the request for data.
(F) Each county shall submit a single planning grant application for the relevant fiscal year.
(G) If funds are awarded pursuant to this paragraph to a First 5 county commission, the First 5 county commission shall collaborate with, and subgrant funds, where appropriate, to local planning councils and resource and referral agencies to implement the activities of this section.
(e) Grant funds may be used for costs associated with any of the following:
(1) Assessing the parental preferences and the need for access to available high-quality universal preschool through a mixed-delivery system for three- and four-year-old children in the county or region by program type.
(2) Establishing or strengthening partnerships with other providers of early childhood education services and family childcare home education networks within the county or region’s mixed-delivery system and with tribal partners, to ensure that high-quality options for universal preschool, including inclusive preschool programs and multilingual programs, are available for three- and four-year-old children.
(3) Engaging in community-level coordination and planning with agencies participating in the county or region’s mixed-delivery system to implement high-quality universal preschool options.
(4) Coordinating with special education local and regional partners, including regional centers and local educational agencies, to ensure three- and four-year-old children with exceptional needs in the county or region have access to universal preschool through the mixed-delivery system in the least restrictive environment in accordance with Section 1412(a)(5)(A) of Title 20 of the United States Code.
(5) Partnering with the regional agency responsible for the system described in Section 8203.1 to fund and support workforce development, coaching, and other quality improvement activities to support the universal preschool mixed-delivery system.
(6) Other costs, as specified by the Superintendent.
(f) Entities receiving grants pursuant to this subdivision shall do all of the following:
(1) Plan for the provision of high-quality universal preschool options for three- and four-year-old children, through a mixed-delivery system that ensures access to high-quality full- and part-day learning experiences, coordinated services, and referrals for families to access health and social-emotional support services. Indicators of quality shall be determined by the Superintendent pursuant to Section 8203.
(2) Plan for increasing inclusion of children with exceptional needs in universal preschool.
(3) Assist existing and aspiring universal preschool site supervisors, teachers, and other support staff in identifying and accessing local workforce pathway programs, including financial support programs, to increase the number of site supervisors, teachers, and other support staff who have required credentials and degrees.
(4) Provide outreach services and enrollment support for families of three- or four-year-old children, to meet family needs and provide those children with high-quality full- and part-day learning experiences.
(5) Partner to plan for, align and coordinate the plans, and conduct the activities described in paragraphs (1) to (4), inclusive, with all local educational agencies in the county or region that received funding pursuant to the California Prekindergarten Planning and Implementation Grant Program (Article 13.2 (commencing with Section 8281.5)).
(6) Partner with tribes to reflect family and tribal community needs, as sovereign nations, in the planning and implementation of the universal preschool mixed-delivery system.
(7) Commit to providing program data to the department, as specified by the Superintendent, including, but not limited to, plan development steps and participants engaged in the grant activities and planning, core needs of critical communities, including tribal communities, and recipient information and participation in overall program evaluation.
(8) Develop a plan for consideration by the county board of education at a public meeting on or before June 30, 2023, for how all four-year-old children and an increased number of at-promise three-year-old children in the county may access full-day learning programs before kindergarten that meet the needs of parents, including through partnerships with the universal preschool programs in the mixed-delivery system and expanded learning offerings.
(g) If the entity receiving the grant in a county is a local planning council, the local planning council shall collaborate with, and subgrant funds where appropriate to, local resource and referral agencies to implement the activities of this section.
(h) If the entity receiving the grant in a county is a resource and referral agency, the resource and referral agency shall collaborate with, and subgrant funds where appropriate to, the local planning council to implement the activities of this section.
(i) (1) Funds that are allocated or awarded pursuant to this section shall be expended on or before June 30, 2026. The department shall then initiate collection proceedings for unexpended funds.
(2) The department shall initiate collection proceedings for grant funds used by grantees in a manner inconsistent with the requirements of this section, including, but not limited to, failing to submit all required data pursuant to subdivision (f).
(j) This section does not prohibit counties from joining together to address regional needs with their funding and developing regional plans.
(k) The Superintendent shall provide a report to the Department of Finance and the appropriate policy and fiscal committees of the Legislature on or before October 1, 2026, on the expenditure of funds and relevant outcome data in order to evaluate the impact of the grants awarded under this section.
(l) For purposes of this section, the State Department of Education may enter into exclusive or nonexclusive contracts with nongovernmental entities on a bid or negotiated basis. A contract entered into or amended pursuant to this section shall be exempt from Chapter 6 (commencing with Section 14825) of Part 5.5 of Division 3 of Title 2 of the Government Code, Section 19130 of the Government Code, and Part 2 (commencing with Section 10100) of Division 2 of the Public Contract Code, and shall be exempt from the review or approval of any division of the Department of General Services.
(m) Notwithstanding any other law, a contracted nongovernmental entity described in subdivision (l) may subcontract as necessary in the performance of its duties, subject to approval of the Superintendent.

SEC. 146.

 Section 8321 of the Education Code is amended and renumbered to read:

8266.
 (a) The county superintendent of schools in each county, with the approval of the county board of education and the Superintendent of Public Instruction, shall have the authority to establish and maintain preschool programs and centers in the same manner and to the same extent as governing boards of school or community college districts, except that nothing in this section shall be construed as vesting in the county superintendents of schools any authority to alone effect the levy and collection of any county, school, or other local taxes for the support of any preschool programs.
(b) The establishment and maintenance of any preschool program by the county superintendent of schools shall be undertaken, subject to the prior approval of both the county board of education and the Superintendent of Public Instruction, upon the application of one or more school districts under the county superintendent’s jurisdiction.

SEC. 147.

 Section 8322 of the Education Code is amended and renumbered to read:

8267.
 The governing board of any school district or the county superintendent of schools may do the following:
(a) Accommodate in a preschool facility maintained by it children residing in another district, upon terms and under conditions agreed upon by the governing boards of both districts.
(b) Permit the use of, and furnish maintenance for, buildings, grounds, and equipment, and the use of existing administrative personnel for the purposes of this chapter.
(c) Adopt reasonable rules and regulations governing the preschool services or facilities maintained by it that are not in conflict with law or the standards and regulations established for child development services by the Superintendent of Public Instruction.

SEC. 148.

 Section 8324 of the Education Code is amended and renumbered to read:

8268.
 The employees of school districts or community college districts, or county superintendents of schools in preschool services under this division shall have the same rights and privileges as are granted to employees of the same agencies in children’s centers.

SEC. 149.

 The heading of Article 14 (commencing with Section 8325) is added to Chapter 2 of Part 6 of Division 1 of Title 1 of the Education Code, to read:

Article  14. Contract Procedures

SEC. 150.

 Section 8326 of the Education Code is amended and renumbered to read:

8326. 8269. 
 The department shall develop and maintain a central distribution list for application announcements. Notwithstanding any other provisions of this chapter, a public or private agency, a school district, a community college district or a county superintendent of schools operating preschool facilities may enter into an agreement with the Employment Development Department that will provide an opportunity to participants in work incentive programs under Division 2 (commencing with Section 5000) of the Unemployment Insurance Code for training in child development facilities. Training pursuant to that agreement shall have the objective of preparation for a career in the field of child development. 

SEC. 151.

 Section 8327 of the Education Code is amended and renumbered to read:

8327. 8270. 
 Application announcements shall contain, but not be limited to, the following information: the goals and objectives of the program, identification of the specific minimum range of services to be purchased related to those goals, quantitative as well as qualitative measures that will be used by the department to evaluate service outcomes, specific criteria and a description of the methodology and timetable that will be followed to review and approve applications, and all minimum performance standards any agency is required to meet prior to contract approval. Notwithstanding any other provision of this chapter, the governing board of a school district or community college district, county superintendent of schools, or other unit of local general purpose government may enter into agreements with any city, city and county, or other public agency, or with a private foundation, nonprofit corporation, or proprietary agency for the furnishing to, or use by, the governing board, county superintendent of schools, or other unit of local general purpose government in carrying out the provisions of this chapter, of property, facilities, personnel, supplies, equipment and other necessary items and such city, county, city and county, other public agency, or private foundation or nonprofit corporation, is authorized to enter into such agreements. 

SEC. 152.

 Section 8328 of the Education Code is amended and renumbered to read:

8271.
 (a) The governing board of any school district or the county superintendent of schools shall establish in the county treasury a fund to be known as the “child development fund” into which shall be paid all funds received by the district or the county for, or from the operation of, preschool services under this chapter. The costs incurred in the maintenance and operation of preschool services shall be paid from the fund, with accounting to reflect specific funding sources.
(b) Funds of a district derived from the receipt of district taxes or derived from moneys apportioned to the district for the support of schools thereof, in addition to state moneys appropriated for the support of preschool services, fees, and federal funds, may be expended for, or in connection with, preschool services.

SEC. 153.

 Section 8329 of the Education Code is amended and renumbered to read:

8329. 8272. 
 (a)  The department shall include all of the following in the application announcement: governing board of any school district maintaining a preschool program may include in its budget the amount necessary to initiate, operate, and maintain a preschool program pursuant to this chapter and the board of supervisors shall levy a school district tax necessary to raise that amount. The tax shall be in addition to any other school district tax authorized by law to be levied. 
(1) The time estimated for each step.
(2) The specific staff names, office addresses, and telephone numbers for those responsible for each step.
(3) The legal requirements and signatory approvals required prior to final approval of any contract.
(4) Any conditions for advance payments shall also be identified.
(b) This information shall be provided in any application announcement.

SEC. 154.

 Section 8330 of the Education Code is amended and renumbered to read:

8330. 8272.5 
 The department shall identify and transmit to all agencies awarded contracts forms required for contract payments, management information or reports required pursuant to contract objectives, and conditions and methods for contract evaluations. Methods and conditions for payment recoveries, withholding of payments, and contract terminations relating to nonperformance shall also be identified. This information shall be provided in all cases prior to final approval of any contract, unless the information is provided in the contract document. Community college districts that levied child development permissive override taxes pursuant to Section 8272 and former Section 8330 in the 1977–78 fiscal year and received fiscal relief pursuant to Chapter 282 of the Statutes of 1979 to compensate for the loss of permissive override taxes shall not receive reimbursement for childcare services from the Superintendent of Public Instruction in excess of 75 percent of the standard reimbursement rate for campus childcare programs. Campus childcare programs operated by the University of California, the California State University, and community colleges that did not levy a permissive override tax in the 1977–78 fiscal year shall receive reimbursement from the Superintendent of Public Instruction that equals 100 percent of the standard reimbursement rate for campus childcare and development programs. 

SEC. 155.

 Section 8331 of the Education Code is repealed.

8331.
 The department shall develop a grievance procedure for resolving disputes arising from the awarding or administering of contracts, in addition to the remedies provided under the Administrative Procedure Act (Chapter 5 (commencing with Section 11500) of Part 1 of Division 3 of Title 2 of the Government Code).

SEC. 156.

 The heading of Article 15.1 (commencing with Section 8332) of Chapter 2 of Part 6 of Division 1 of Title 1 of the Education Code is repealed.

SEC. 157.

 Section 8332 of the Education Code is amended and renumbered to read:

8332. 8273. 
 (a)  The Legislature hereby finds and declares that greater efficiencies may be achieved in the execution of state subsidized preschool program contracts with public and private agencies by the timely approval of contract provisions by the Department of Finance, the Department of General Services, and the department and by authorizing the department to establish a multiyear application, contract expenditure, and service review as may be necessary to provide timely service while preserving audit and oversight functions to protect the public welfare. Counties of Alameda, Contra Costa, Fresno, Marin, Monterey, San Benito, San Diego, Santa Clara, Santa Cruz, Solano, and Sonoma may, individually as a pilot project, develop and implement individualized county childcare subsidy plans. The plans shall ensure that childcare subsidies received by the above-named counties are used to address local needs, conditions, and priorities of working families in their respective communities. 
(b) The Department of Finance and the Department of General Services shall approve or disapprove annual contract funding terms and conditions, including the family fee schedules, and contract face sheets submitted by the department not more than 30 working days from the date of submission, unless unresolved conflicts remain between the Department of Finance, the department, and the Department of General Services. The department shall resolve conflicts within an additional 30 working day time period. Contracts and funding terms and conditions shall be issued to contractors no later than June 1. Applications for new preschool funding shall be issued not more than 45 working days after the effective date of authorized new allocations of preschool moneys.
(c) With respect to subdivision (b), it is the intent of the Legislature that the Department of Finance annually review contract funding terms and conditions for the primary purpose of ensuring consistency between contracts and the budget. This review shall include evaluating any proposed changes to contract language or other fiscal documents to which the contractor is required to adhere, including those changes to terms or conditions that authorize higher reimbursement rates, modify related adjustment factors, modify administrative or other service allowances, or diminish fee revenues otherwise available for services, to determine if the change is necessary or has the potential effect of reducing the number of full-time equivalent children that may be served.
(d) Notwithstanding the June 1 date specified in subdivision (b), changes to the fee schedule may be made at any other time to reflect the availability of accurate data necessary for its completion, provided it receives the approval of the Department of Finance. The Department of Finance shall review the changes within 30 working days of submission and the department shall resolve conflicts within an additional 30 working day period. Contractors shall be given adequate notice before the effective date of the approved schedules. It is the intent of the Legislature that contracts for services not be delayed by the timing of the availability of accurate data needed to update these schedules.

SEC. 158.

 Section 8332.1 of the Education Code is amended and renumbered to read:

8274.
 For purposes of this article, “county” means the Counties of Alameda, Contra Costa, Fresno, Marin, Monterey, San Benito, San Diego, Santa Clara, Santa Cruz, Solano, and Sonoma.

SEC. 159.

 Section 8332.2 of the Education Code is amended and renumbered to read:

8275.
 (a) For purposes of this article, “plan” means an individualized county childcare subsidy plan developed and approved under the pilot project described in Section 8273.
(b) A plan shall include all of the following:
(1) An assessment to identify the county’s goals for its subsidized childcare system. The assessment shall examine whether the current structure of subsidized childcare funding adequately supports working families in the county and whether the county’s childcare goals coincide with the state’s requirements for funding, eligibility, priority, and reimbursement. The assessment shall also identify barriers in the state’s childcare subsidy system that inhibit the county from meeting its childcare goals. In conducting the assessment, the county shall consider all of the following:
(A)  Needs assessment data collected pursuant to Section 10486 of the Welfare and Institutions Code.
(B)  Data collected by resource and referral agencies pursuant to subparagraph (B) of paragraph (3) of subdivision (a) of Section 10219 of the Welfare and Institutions Code.
(C) The county’s self-sufficiency income level.
(D) The cost of providing childcare.
(2) (A) Development of a local policy to eliminate state-imposed regulatory barriers to the county’s achievement of its desired outcomes for subsidized childcare.
(B) The local policy shall do all of the following:
(i) Prioritize lowest income families first.
(ii) Follow the family fee schedule established pursuant to Section 8252 of this code or Section 10290 of the Welfare and Institutions Code, as applicable for those families who are income eligible, as defined by Section 8213 of this code or Section 10271.5 of the Welfare and Institutions Code, as applicable, and provide the exemptions for family fees specified in Section 8253 of this code or Section 10291 of the Welfare and Institutions Code, as applicable.
(iii) Meet local goals that are consistent with the state’s childcare goals.
(iv) Identify existing policies that would be affected by the county’s plan.
(v) (I) Authorize an agency that provides childcare and development services in the county through a contract with the department to apply to the department to amend existing contracts in order to benefit from the local policy.
(II) The department shall approve an application to amend an existing contract if the plan or modification of the plan is approved pursuant to Section 8277.
(III) The contract of a department contractor who does not elect to request an amendment to its contract remains operative and enforceable.
(vi) Provide a family that qualifies for the second or third stage of childcare services pursuant to Chapter 21 (commencing with Section 10370) of Part 1.8 of Division 9 of the Welfare and Institutions Code, for purposes of eligibility, fees, and reimbursements, the same or higher level of benefit as a family that qualifies for subsidized childcare on another basis pursuant to the local policy, except as otherwise provided in Chapter 21 (commencing with Section 10370) of Part 1.8 of Division 9 of the Welfare and Institutions Code. Nothing in this section shall be interpreted to impact or reduce any element in the second or third stage of childcare services pursuant to Chapter 21 (commencing with Section 10370) of Part 1.8 of Division 9 of the Welfare and Institutions Code that provides a greater benefit to participating families than is provided for in the local policy.
(C) The local policy may supersede state law concerning childcare subsidy programs with regard only to the following factors:
(i) Eligibility criteria, including, but not limited to, age, family size, time limits, income level, and special needs considerations.
(ii) Fees, including, but not limited to, family fees, sliding scale fees, and copayments for those families who are not income eligible, as defined by Section 8213 of this code or Section 10271.5 of the Welfare and Institutions Code, as applicable.
(iii) Reimbursement rates, including adjustment factors identified in Section 8244 of this code or Section 10281.5 of the Welfare and Institutions Code, as applicable.
(iv) Methods of maximizing the efficient use of subsidy funds, including, but not limited to, multiyear contracting with the department for center-based childcare, and interagency agreements that allow for flexible and temporary transfer of funds among agencies.
(v) Families with children enrolled in part-day California state preschool program services, pursuant to Article 2 (commencing with Section 8207), may be eligible for up to two 180-day periods within a 24-month period without the family being certified as a new enrollment each year.
(vi) The ratio of four-year-old children in state preschool programs pursuant to subdivision (b) of Section 8263.
(3) Recognition that all funding sources utilized by contractors that provide childcare and development services in the county are eligible to be included in the county’s plan.
(4) Establishment of measurable outcomes to evaluate the success of the plan to achieve the county’s childcare goals, and to overcome any barriers identified in the state’s childcare subsidy system.
(c) Nothing in this section shall be construed to permit the county to change the regional market rate survey results for the county.
(d) Nothing in this section shall allow a county to adopt as part of its pilot project an increase to the regional market reimbursement rate beyond the level provided in the annual Budget Act.
(e) A plan may include stage one childcare services in addition to alternative payment and direct service childcare programs. If the plan includes CalWORKs childcare, pilot administrators shall consult with their county welfare department to identify opportunities for alignment, ensuring families experience no break in their childcare services due to a transition between the three stages of childcare services and policies implemented in the pilot project.

SEC. 160.

 Section 8332.25 of the Education Code is amended and renumbered to read:

8276.
 The department shall establish instructions and timelines for submittal or modifications of the plans, including, but not limited to, plan templates and timelines for plan submittal and requests for addition of participating contractors.

SEC. 161.

 Section 8332.3 of the Education Code is amended and renumbered to read:

8277.
 (a) (1) The plan shall be submitted to the local planning council, as defined in Section 10480 of the Welfare and Institutions Code, for approval. Upon approval of the plan by the local planning council, the board of supervisors of the county shall hold at least one public hearing on the plan. Following the hearing, if the board votes in favor of the plan, the plan shall be submitted to the department for review.
(2) Initial proposed rate changes not included in the plan shall be approved by the board of supervisors of the county prior to final approval of the plan by the department.
(b) Within 30 days of receiving the plan, the department shall review and either approve or disapprove the plan.
(c) Plan modifications, including subsequent rate changes, shall be submitted to the local planning council, as defined in subdivision (g) of Section 10480 of the Welfare and Institutions Code, for approval prior to final approval of the plan by the department.
(d) Within 30 days of receiving a modification of the plan, the department shall review and either approve or disapprove that modification of the plan.
(e) The department may disapprove only those portions of a plan, or any modification of the plan, that are not in conformance with this article or that are in conflict with federal law.

SEC. 162.

 Section 8332.4 of the Education Code is amended and renumbered to read:

8278.
 (a)  The County of Santa Clara shall, by the end of the first fiscal year of operation under the approved childcare subsidy plan, demonstrate, in the report required pursuant to Section 8279, an increase in the total aggregate child days of enrollment in childcare in the county as compared to the enrollment in the final quarter of the 2015–16 fiscal year.
(b) The County of Alameda shall, by the end of the first fiscal year of operation under the approved childcare subsidy plan, demonstrate, in the report required pursuant to Section 8279, an increase in the total aggregate child days of enrollment in childcare in the county as compared to the enrollment in the final quarter of the 2014–15 fiscal year.
(c) The Counties of Contra Costa, Fresno, Marin, Monterey, San Benito, San Diego, Santa Cruz, Solano, and Sonoma shall, by the end of the first fiscal year of operation under the approved childcare subsidy plan, demonstrate, in the report required pursuant to Section 8279, an increase in the total aggregate child days of enrollment in childcare in the county as compared to the enrollment in the final quarter of the 2016–17 fiscal year.

SEC. 163.

 Section 8332.5 of the Education Code is amended and renumbered to read:

8279.
 (a)  Using a template developed by the department, the county shall prepare and submit to the Legislature, the State Department of Social Services, and the department a report that summarizes the success of the county’s plan, and the county’s ability to maximize the use of funds and to improve and stabilize childcare in the county. The report shall be submitted as follows:
(1) At the end of year one of the plan, a report that describes the first year of implementation.
(2) At the end of year three of the plan, a report that describes years two and three of implementation.
(3) At the end of year five of the plan, a report that describes years four and five of implementation.
(b) The department shall review the reports submitted pursuant to subdivision (a), along with any applicable programmatic and fiscal compliance records submitted by the contracting agencies participating in the plan, and determine whether to allow the county to continue with the plan without change, or whether to require modifications to be made to the plan.
(c) The county shall, by the end of the first fiscal year of operation under the approved plan, demonstrate, in the report required pursuant to this section, that there was no reduction in the number of children served as compared to the number of children served before the implementation of the plan.
(d) A report to be submitted pursuant to subdivision (a) shall be submitted in compliance with Section 9795 of the Government Code.

SEC. 164.

 Section 8332.6 of the Education Code is amended and renumbered to read:

8280.
 A participating contractor shall receive an increase or decrease in funding that the contractor would have received if the contractor had not participated in the plan.

SEC. 165.

 Section 8332.7 of the Education Code is amended and renumbered to read:

8281.
 (a)  For the County of Santa Clara, this article shall remain in effect only until July 1, 2022, and as of that date is inoperative only as to the County of Santa Clara, unless a later enacted statute, that is enacted before July 1, 2022, deletes or extends that date.
(b) For the Counties of Alameda, Contra Costa, Fresno, Marin, Monterey, San Benito, San Diego, Santa Cruz, Solano, and Sonoma, this article shall remain in effect only until July 1, 2023, and as of that date is inoperative, unless a later enacted statute that is enacted before July 1, 2023, deletes or extends that date.

SEC. 166.

 Section 8332.8 of the Education Code is amended and renumbered to read:

8282.
 Notwithstanding the rulemaking provisions of the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code), the department and the State Department of Social Services may implement and administer this article through the issuance of guidance or other written directives, which may include, but is not limited to, establishing timelines for submittal of plans and any modifications, plan templates, and processes for requesting additional participating contractors.

SEC. 167.

 The heading of Article 15.2 (commencing with Section 8335) of Chapter 2 of Part 6 of Division 1 of Title 1 of the Education Code is repealed.

SEC. 168.

 The heading of Article 15 (commencing with Section 8335) is added to Chapter 2 of Part 6 of Division 1 of Title 1 of the Education Code, to read:

Article  15. Contract Audit Requirements

SEC. 169.

 Section 8335 of the Education Code is amended and renumbered to read:

8335. 8283. 
 As used in this article:
(a) “Financial and compliance audit” means a systematic review or appraisal to determine each of the following:
(1) Whether the financial statements of an audited organization fairly present the financial position and the results of financial operations in accordance with generally accepted accounting principles.
(2) Whether the organization has complied with laws and regulations that may have a material effect upon the financial statements.
(b) “Public accountants” means certified public accountants, or state licensed public accountants.
(c) “Independent auditors” means public accountants who have no direct or indirect relationship with the functions or activities being audited or with the business conducted by any of the officials or contractors being audited.
(d) “Generally accepted auditing standards” means the auditing standards set forth in the financial and compliance element of the “Government Auditing Standards” issued by the Comptroller General of the United States and incorporating the audit standards of the American Institute of Certified Public Accountants.
(e) “Nonprofit organization” means an organization described in Section 501(c)(3) of the Internal Revenue Code of 1954 which is exempt from taxation under Section 501(a) of that code, or any nonprofit, scientific, or educational organization qualified under Section 23701d of the Revenue and Taxation Code.
(f) The  (1)  Annually, there shall be a single independent financial and compliance audit of organizations that contract with the department to provide preschool services or other support services under the jurisdiction of the department pursuant to this chapter. Any such audit shall include an evaluation of the accounting and control systems of the contractor and of the activities by the contractor to comply with the financial and compliance requirements of contracts   City and County of San Francisco may develop and implement an individualized county childcare subsidy plan. The plan shall ensure that childcare subsidies  received by the contractor from the state agency. The financial and compliance requirements to be reviewed during the audit shall be those developed and published by the department. Audits carried out pursuant to this section shall be audits of the contractor rather than audits of individual contracts or programs. In the case of any contractor that receives less than one hundred thousand dollars ($100,000) per year from any state agency, the audit required by this section shall be conducted biennially, unless there is evidence of fraud or other violation of state law in connection with the contract. The cost of the audit may be included in contracts. city and county are used to address local needs, conditions, and priorities of working families in the community. 
(2) The organization receiving funds from the state shall be responsible for obtaining the required financial and compliance audits of the organization and any subcontractors, except for subcontracts exempt from the department’s review, as agreed to by the Departments of Finance and General Services. The audits shall be made by independent auditors in accordance with generally accepted auditing standards. The audit shall be completed by the 15th day of the fifth month following the end of the contractor’s fiscal year. A copy of the required audit shall be filed with the department upon its completion. In the event an audit is not filed, the department shall notify the organization of the contract violation. The audit report filed shall be an integral part of the contract file.
(g) (1) Nothing in this article limits the authority of the department to make audits of contracts. However, if independent audits arranged for by contractors meet generally accepted auditing standards, the department shall rely on those audits and any additional audit work shall build upon the work already done.
(2) Nothing in this article precludes the state from conducting, or contracting for the conduct of, contract performance audits which are not financial and compliance audits.
(3) Nothing in this article limits the state’s responsibility or authority to enforce state law or regulations, procedures, or reporting requirements arising pursuant thereto.
(4) Nothing in this article limits the responsibility of the department to provide an independent appeal procedure according to the provisions of the Administrative Procedure Act in Chapter 5 (commencing with Section 11500) of Part 1 of Division 3 of Title 2 of the Government Code.

SEC. 170.

 Section 8335.1 of the Education Code is amended and renumbered to read:

8284.
 Before implementing the local subsidy plan, the City and County of San Francisco, in consultation with the department, shall develop an individualized county childcare subsidy plan for the city and county that includes the following four elements:
(a) An assessment to identify the city and county’s goal for its subsidized childcare system. The assessment shall examine whether the current structure of subsidized childcare funding adequately supports working families in the city and county and whether the city and county’s childcare goals coincide with the state’s requirements for funding, eligibility, priority, and reimbursement. The assessment shall also identify barriers in the state’s childcare subsidy system that inhibit the city and county from meeting its childcare goals. In conducting the assessment, the city and county shall consider all of the following:
(1) The general demographics of families who are in need of childcare, including employment, income, language, ethnic, and family composition.
(2) The current supply of available subsidized childcare.
(3) The level of need for various types of subsidized childcare services including, but not limited to, infant care, after-hours care, and care for children with exceptional needs.
(4) The city and county’s self-sufficiency income level.
(5) Income eligibility levels for subsidized childcare.
(6) Family fees.
(7) The cost of providing childcare.
(8) The regional market rates, as established by the department, for different types of childcare.
(9) The standard reimbursement rate or state per diem for centers operating under contracts with the department.
(10) Trends in the county’s unemployment rate and housing affordability index.
(b) Development of a local policy to eliminate state-imposed regulatory barriers to the city and county’s achievement of its desired outcomes for subsidized preschool.
(1) The local policy shall do all of the following:
(A) Prioritize lowest income families first.
(B) Follow the family fee schedule established pursuant to Section 8252 of this code or Section 10290 of the Welfare and Institutions Code, as applicable, for those families that are income eligible, as defined by Section 8213 of this code or Section 10271.5 of the Welfare and Institutions Code, as applicable.
(C) Meet local goals that are consistent with the state’s childcare goals.
(D) Identify existing policies that would be affected by the city and county’s childcare subsidy plan.
(E) (i) Authorize any agency that provides childcare and development services in the city and county through a contract with the department to apply to the department to amend existing contracts in order to benefit from the local policy once it is adopted.
(ii) The department shall approve an application to amend an existing contract if the childcare subsidy plan is approved pursuant to subdivision (b) of Section 8285, or modified pursuant to subdivision (c) of Section 8285.
(iii) The contract of a department contractor who does not elect to request an amendment to its contract remains operative and enforceable.
(2) (A) The city and county shall, by the end of the first fiscal year of operation under the approved childcare subsidy plan, demonstrate an increase in the aggregate child days of enrollment in the county as compared to the enrollment in the final quarter of the 2004–05 fiscal year.
(B) The amount of the increase shall be at least equal to the aggregate child days of enrollment in the final quarter of the 2004–05 fiscal year for all contracts amended as provided in subparagraph (E) of paragraph (1), under which the contractor receives an increase in its reimbursement rate, times 2 percent.
(C) The amount of the increase shall also be proportional to the total contract maximum reimbursable amount to reflect the changes in the budget allocation for each fiscal year of the plan.
(3) The local policy may supersede state law concerning preschool subsidy programs with regard only to the following factors:
(A)  Provide a family that qualifies for the second or third stage of childcare services pursuant to Chapter 21 (commencing with Section 10370) of Part 1.8 of Division 9 of the Welfare and Institutions Code, for purposes of eligibility, fees, and reimbursements, the same or higher level of benefit as a family that qualifies for subsidized childcare on another basis pursuant to the local policy, except as otherwise provided in Chapter 21 (commencing with Section 10370) of Part 1.8 of Division 9 of the Welfare and Institutions Code. Nothing in this section shall be interpreted to impact or reduce any element in the second or third stage of childcare services pursuant to Chapter 21 (commencing with Section 10370) of Part 1.8 of Division 9 of the Welfare and Institutions Code that provides a greater benefit to participating families than is provided for in the local policy.
(B) Fees including, but not limited to, family fees, sliding scale fees, and copayments for those families that are not income eligible, as defined by Section 8213 of this code or Section 10271.5 of the Welfare and Institutions Code, as applicable.
(C) Reimbursement rates, including adjustment factors identified in Section 8244 of this code or Section 10281.5 of the Welfare and Institutions Code, as applicable.
(D) The ratio of four-year-old children in state preschool programs pursuant to subdivision (b) of Section 8263.
(E) Methods of maximizing the efficient use of subsidy funds, including, but not limited to, multiyear contracting with the department for center-based childcare and interagency agreements that allow for flexible and temporary transfer of funds among agencies.
(F) Families with children enrolled in part-day California state preschool program services, pursuant to Article 2 (commencing with Section 8207), may be eligible for up to two 180-day periods within a 24-month period without the family being certified as a new enrollment each year.
(c) Recognition that all funding sources utilized by contractors that provide childcare and development services in the city and county are eligible to be included in the preschool subsidy plan of the city and county.
(d) Establishment of measurable outcomes to evaluate the success of the plan to achieve the city and county’s childcare goals and to overcome any barriers identified in the state’s childcare subsidy system.
(e) Nothing in this section shall be construed to permit the city and county to change the regional market rate survey results for the city and county.
(f) Nothing in this section shall allow the city and county to adopt as part of its plan an increase to the regional market reimbursement rate beyond the level provided in the Budget Act.
(g) The plan may include stage one childcare services in addition to alternative payment and direct service childcare programs. If the plan includes CalWORKs childcare, the plan administrator shall consult with their county welfare department to identify opportunities for alignment, ensuring families experience no break in their childcare services due to a transition between the three stages of childcare services and policies implemented in the plan.

SEC. 171.

 Section 8335.3 of the Education Code is amended and renumbered to read:

8285.
 (a) The plan shall be submitted to the local planning council, as defined in subdivision (g) of Section 10480 of the Welfare and Institutions Code, for approval. Upon approval of the plan by the local planning council, the Board of Supervisors of the City and County of San Francisco shall hold at least one public hearing on the plan. Following the hearing, if the board of supervisors votes in favor of the plan, the plan shall be submitted to the department for review.
(b) Within 30 days of receiving the plan, the department shall review and either approve or disapprove the plan.
(c) Within 30 days of receiving any modification to the plan, the department shall review and either approve or disapprove that modification to the plan.
(d) The department may disapprove only those portions of the plan or modifications to the plan that are not in conformance with either this article or Article 9 (commencing with Section 8273) or that are in conflict with federal law.

SEC. 172.

 Section 8335.4 of the Education Code is amended and renumbered to read:

8286.
 (a)  The City and County of San Francisco shall, at least once every three years, using the template developed by the department, prepare and submit to the Legislature, the State Department of Social Services, and the department a report that summarizes the success of the city and county’s plan, and the city and county’s ability to maximize the use of funds and to improve and stabilize childcare in the city and county.
(b) A report to be submitted pursuant to subdivision (a) shall be submitted in compliance with Section 9795 of the Government Code.

SEC. 173.

 Section 8335.5 of the Education Code is amended and renumbered to read:

8287.
 Any modifications to the plan shall be submitted in conformance with the procedures established in Article 9 (commencing with Section 8273).

SEC. 174.

 Section 8335.6 of the Education Code is amended and renumbered to read:

8288.
 A participating contractor shall receive any increase or decrease in funding that the contractor would have received if the contractor had not participated in the local subsidy plan established by this article.

SEC. 175.

 The heading of Article 16 (commencing with Section 8337) is added to Chapter 2 of Part 6 of Division 1 of Title 1 of the Education Code, to read:

Article  16. Inclusive Early Education Expansion

SEC. 176.

 The heading of Article 17 (commencing with Section 8340) is added to Chapter 2 of Part 6 of Division 1 of Title 1 of the Education Code, to read:

Article  17. Head Start

SEC. 177.

 The heading of Article 15.4 (commencing with Section 8347) of Chapter 2 of Part 6 of Division 1 of Title 1 of the Education Code is repealed.

SEC. 178.

 Section 8347 of the Education Code is amended and renumbered to read:

8289.
 On and after July 1, 2014, the individualized county childcare subsidy plan for the County of San Mateo that was developed as a pilot project pursuant to Article 15.3 (commencing with Section 8340), as that article read on January 1, 2013, may continue in existence and may be implemented in accordance with the provisions of this article. The plan shall ensure that childcare subsidies received by the County of San Mateo are used to address local needs, conditions, and priorities of working families in those communities.

SEC. 179.

 Section 8347.1 of the Education Code is amended and renumbered to read:

8290.
 For purposes of this article, “county” means the County of San Mateo.

SEC. 180.

 Section 8347.2 of the Education Code is amended and renumbered to read:

8291.
 For purposes of this article, “plan” means an individualized county childcare subsidy plan developed and approved as described in Section 8289, which includes all of the following:
(a) An assessment to identify the county’s goal for its subsidized childcare system. The assessment shall examine whether the current structure of subsidized childcare funding adequately supports working families in the county and whether the county’s childcare goals coincide with the state’s requirements for funding, eligibility, priority, and reimbursement. The assessment shall also identify barriers in the state’s childcare subsidy system that inhibit the county from meeting its childcare goals. In conducting the assessment, the county shall consider all of the following:
(1) The general demographics of families who are in need of childcare, including employment, income, language, ethnic, and family composition.
(2) The current supply of available subsidized childcare.
(3) The level of need for various types of subsidized childcare services, including, but not limited to, infant care, after-hours care, and care for children with exceptional needs.
(4) The county’s self-sufficiency income level.
(5) Income eligibility levels for subsidized childcare.
(6) Family fees.
(7) The cost of providing childcare.
(8) The regional market rates, as established by the department, for different types of childcare.
(9) The standard reimbursement rate or state per diem for centers operating under contracts with the department.
(10) Trends in the county’s unemployment rate and housing affordability index.
(b) (1) Development of a local policy to eliminate state-imposed regulatory barriers to the county’s achievement of its desired outcomes for subsidized childcare.
(2) The local policy shall do all of the following:
(A) Prioritize lowest income families first.
(B) Follow the family fee schedule established pursuant to Section 8252 of this code or Section 10290 of the Welfare and Institutions Code, as applicable, for those families that are income eligible, as defined by Section 8213 of this code or Section 10271.5 of the Welfare and Institutions Code, as applicable.
(C) Meet local goals that are consistent with the state’s childcare goals.
(D) Identify existing policies that would be affected by the county’s plan.
(E) (i) Authorize any agency that provides childcare and development services in the county through a contract with the department to apply to the department to amend existing contracts in order to benefit from the local policy.
(ii) The department shall approve an application to amend an existing contract if the plan is modified pursuant to Section 8292.
(iii) The contract of a department contractor who does not elect to request an amendment to its contract remains operative and enforceable.
(3) The local policy may supersede state law concerning childcare subsidy programs with regard only to the following factors:
(A)  Provide a family that qualifies for the second or third stage of childcare services pursuant to Chapter 21 (commencing with Section 10370) of Part 1.8 of Division 9 of the Welfare and Institutions Code, for purposes of eligibility, fees, and reimbursements, the same or higher level of benefit as a family that qualifies for subsidized childcare on another basis pursuant to the local policy, except as otherwise provided in Chapter 21 (commencing with Section 10370) of Part 1.8 of Division 9 of the Welfare and Institutions Code. Nothing in this section shall be interpreted to impact or reduce any element in the second or third stage of childcare services pursuant to Chapter 21 (commencing with Section 10370) of Part 1.8 of Division 9 of the Welfare and Institutions Code that provides a greater benefit to participating families than is provided for in the local policy.
(B) Fees, including, but not limited to, family fees, sliding scale fees, and copayments for those families that are not income eligible, as defined by Section 8213 of this code or Section 10271.5 of the Welfare and Institutions Code, as applicable.
(C) Reimbursement rates, including adjustment factors identified in Section 8244 of this code or Section 10281.5 of the Welfare and Institutions Code, as applicable.
(D) The ratio of four-year-old children in state preschool programs pursuant to subdivision (b) of Section 8263.
(E) Methods of maximizing the efficient use of subsidy funds, including, but not limited to, multiyear contracting with the department for preschool, and interagency agreements that allow for flexible and temporary transfer of funds among agencies.
(F) Families with children enrolled in part-day California state preschool program services, pursuant to Article 2 (commencing with Section 8207), may be eligible for up to two 180-day periods within a 24-month period without the family being certified as a new enrollment each year.
(c) Recognition that all funding sources utilized by contractors that provide childcare and development services in the county are eligible to be included in the county’s plan.
(d) Establishment of measurable outcomes to evaluate the success of the plan to achieve the county’s childcare goals, and to overcome any barriers identified in the state’s childcare subsidy system.
(e) Nothing in this section shall be construed to permit the county to change the regional market rate survey results for the county.
(f) Nothing in this section shall allow the county to adopt as part of its plan an increase to the regional market reimbursement rate beyond the level provided in the Budget Act.
(g) The plan may include stage one childcare services in addition to alternative payment and direct service childcare programs. If the plan includes CalWORKs childcare, the plan administrator shall consult with their county welfare department to identify opportunities for alignment, ensuring families experience no break in their childcare services due to a transition between the three stages of childcare services and policies implemented in the plan.

SEC. 181.

 Section 8347.3 of the Education Code is amended and renumbered to read:

8292.
 (a) Except as provided in this section, any modifications to the plan shall be submitted in accordance with the modification procedures described in Article 9 (commencing with Section 8273).
(b) Within 30 days of receiving any modification to the plan, the department shall review and either approve or disapprove that modification to the plan.
(c) The department may disapprove only those portions of modifications to the plan that are not in conformance with either this article or Article 9 (commencing with Section 8273) or that are in conflict with federal law.

SEC. 182.

 Section 8347.4 of the Education Code is amended and renumbered to read:

8293.
 (a) The county shall at least once every three years, using the template developed by the department, prepare and submit to the Legislature, the State Department of Social Services, and the department a report that summarizes the success of the county’s plan, and the county’s ability to maximize the use of funds and to improve and stabilize childcare in the county.
(b) A report to be submitted pursuant to subdivision (a) shall be submitted in compliance with Section 9795 of the Government Code.

SEC. 183.

 Section 8347.5 of the Education Code is amended and renumbered to read:

8294.
 A participating contractor shall receive any increase or decrease in funding that the contractor would have received if the contractor had not participated in the plan.

SEC. 184.

 Article 15.5 (commencing with Section 8350) of Chapter 2 of Part 6 of Division 1 of Title 1 of the Education Code is repealed.

SEC. 185.

 The heading of Article 16 (commencing with Section 8360) of Chapter 2 of Part 6 of Division 1 of Title 1 of the Education Code is repealed.

SEC. 186.

 Section 8360 of the Education Code is amended and renumbered to read:

8295.
 (a) (1) Preschool programs shall include a career ladder program for classroom staff. Persons who are 18 years of age and older may be employed as aides and may be eligible for salary increases upon the completion of additional semester units in early childhood education or child development. The governing board of each contracting agency shall be encouraged to provide teachers and aides with salary increases for the successful completion of early childhood education or child development courses in six semester unit increments.
(2) Persons employed as teachers in a preschool program shall possess a permit issued by the Commission on Teacher Credentialing authorizing service in the care, development, and instruction of children in a childcare and development program.
(b) Any person who meets the following criteria is eligible to serve in an instructional capacity in a preschool program:
(1) Possesses a current credential issued by the Commission on Teacher Credentialing authorizing teaching service in elementary school or a single subject credential in home economics.
(2) Twelve units in early childhood education or child development, or both, or two years’ experience in early childhood education or a childcare and development program.

SEC. 187.

 Section 8360.1 of the Education Code is repealed.

SEC. 188.

 Section 8360.2 of the Education Code is amended and renumbered to read:

8297.
 Not later than 95 days after the governing board of a public agency sets the date a person employed by that board shall begin service in a position requiring a children’s center instructional permit or a children’s center supervision permit, that person shall file, on or before that date, with the county superintendent of schools a valid permit issued on or before that date, authorizing the person to serve in a position for which the person was employed. Upon renewal of that permit, that person shall file that renewal with the county superintendent of schools no later than 95 days after the renewal.

SEC. 189.

 Section 8360.3 of the Education Code is repealed.

SEC. 190.

 Section 8361 of the Education Code is amended and renumbered to read:

8299.
 Notwithstanding any other law, a high school student or any other adult shall be selected by the governing board of a public or private agency to serve as nonteaching personnel to perform noninstructional work. A career ladder shall be utilized in the employment and promotion of such noninstructional personnel. Each such person shall have had a health examination made within the 12-month period preceding the date of employment. Each person shall also submit duplicate personal identification cards upon which shall appear legible fingerprints and a personal description of the applicant.

SEC. 191.

 Section 8362 of the Education Code is amended and renumbered to read:

8300.
 The same fee as that prescribed for a credential provided in Section 44235 shall be charged for either the issuance or renewal of each child development permit authorizing service in the supervision and instruction of children in child development programs or authorizing service as a supervisor in a program.

SEC. 192.

 Section 8363 of the Education Code is amended and renumbered to read:

8301.
 The Commission on Teacher Credentialing shall by rule or regulation establish the requirements for the following:
(a) The issuance and the renewal of permits authorizing service in the care, development, and instruction of children in childcare and development programs, as well as the issuance of emergency permits for this purpose.
(b) The issuance and renewal of permits authorizing supervision of a childcare and development program, as well as the issuance of emergency permits for this purpose.
(c) The periods of duration of the permits set forth in this section.

SEC. 193.

 Section 8363.5 of the Education Code is repealed.

SEC. 194.

 Section 8364 of the Education Code is repealed.

SEC. 195.

 Section 8365 of the Education Code is amended and renumbered to read:

8302.
 Each county or city and county board of education or community colleges board may issue temporary certificates for the purpose of authorizing salary payments to preschool employees whose child development permit applications are being processed. The applicant for such a temporary certificate shall make a statement under oath that the applicant has duly filed their application for a permit together with the required fee and that to the best of their knowledge no reason exists why they should not be issued a permit. Such certificate shall be valid for not more than 90 schooldays and only until the permit originally requested is either issued or denied by the Commission for Teacher Preparation and Licensing.

SEC. 196.

 Section 8365.5 of the Education Code is repealed.

SEC. 197.

 Section 8366 of the Education Code is amended and renumbered to read:

8303.
 (a) Each person employed by a public or private agency in a position requiring a child development permit for the supervision and instruction of children, or for service as a physician, dentist, or nurse, or in the supervision of the preschool program, shall be deemed to be employed in a position requiring certification qualifications.
(b) Each other person employed by an agency in a preschool program under the provisions of this chapter shall be deemed for all purposes, including retirement, to be a person employed by the agency in a position not requiring certification qualifications.
(c) A district may lay off an employee required to have such a permit at any time during the school year for lack of work or lack of funds or may provide for the employee’s employment for not to exceed 90 days in any one school year on an intermittent basis which shall not be deemed probationary service. The order of layoff shall be determined by length of service. The employee who has served the shortest time shall be laid off first, except that no permanent employee shall be laid off ahead of a probationary employee. A permanent employee who has been laid off shall hold reinstatement rights for a period of 39 months from the date of layoff.
(d) Other persons who are employed as probationary employees in positions requiring such permits on or after September 18, 1959, may be dismissed in accordance with the provisions of Section 44949 or 87740.

SEC. 198.

 Section 8367 of the Education Code is repealed.

SEC. 199.

 Section 8368 of the Education Code is repealed.

SEC. 200.

 Section 8369 of the Education Code is amended and renumbered to read:

8304.
 Every employee of a child development program who before their employment in such program was employed by the agency maintaining such program in a position entitling the employee to membership in, and who was a member of, the retirement system maintained by such district, and if such employee’s contributions to such retirement system were returned to the employee when the employee was employed in the program, the employee shall have the right to elect, by written document filed with the Board of Administration, Public Employees’ Retirement System, at any time within 90 days after the date upon which the notice of the right to make that election is mailed by such system, either to the member’s latest address on file in the office of such system, or to the office of the governing board of such agency or agencies, and prior to the date of retirement, to contribute to such system, subject to minimum payments fixed by the Board of Administration, and in one or more sums, or in not to exceed 60 monthly payments, an amount which, when added to the employee’s accumulated contributions, including interest, transferred as required in paragraph (1) of subdivision (b) of Section 24810, will make a total amount equal to the accumulated contributions, including interest, which would have been credited to the employee in such plan, if the employee had never had their contributions returned. Such employee shall pay to the Public Employees’ Retirement System interest on the unpaid balance of the amount payable to such system, beginning with the date of transfer, at the rate of interest currently used from time to time under the system. If such employee elects to make, and makes, such contributions and pays such interest, but not otherwise, the employee shall receive credit under such employees’ system, as state service, for all prior service rendered while the employee was not a member of such plan.

SEC. 201.

 Section 8370 of the Education Code is amended and renumbered to read:

8305.
 The Commission on Teacher Credentialing shall establish standards for the issuance of the permits herein provided for. The standards may be changed from time to time, but changes therein shall not affect then valid permits issued to persons.

SEC. 202.

 Article 16.5 (commencing with Section 8385) of Chapter 2 of Part 6 of Division 1 of Title 1 of the Education Code is repealed.

SEC. 203.

 The heading of Article 18 (commencing with Section 8400) of Chapter 2 of Part 6 of Division 1 of Title 1 of the Education Code is repealed.

SEC. 204.

 Section 8400 of the Education Code is repealed.

SEC. 205.

 Section 8401 of the Education Code is amended and renumbered to read:

8306.
 It is the intent of the Legislature to authorize an appeal process for the resolution of disputes between the department and local agencies which contract with the department pursuant to Section 8233 to provide preschool services or to furnish property, facilities, personnel, supplies, equipment and administrative services.

SEC. 206.

 Section 8401.5 of the Education Code is amended and renumbered to read:

8307.
 (a) The department shall provide an internal appeal procedure to resolve a dispute between the department and a contracting agency providing preschool services pursuant to Section 8233 regarding the interpretation or application of a term or condition of a contract, or to dispute a finding made by the department resulting from a fiscal or programmatic review, including, but not limited to, an error rate notification.
(b)  A contracting agency shall have the right to appeal the findings of a fiscal or programmatic review, including, but not limited to, an error rate finding, by submitting a request for appeal in accordance with the internal appeal procedure developed by the department pursuant to subdivision (a).

SEC. 207.

 Section 8402 of the Education Code is amended and renumbered to read:

8309.
 (a) The department shall provide an independent appeal procedure to each contracting agency providing preschool services pursuant to Section 8233 that shall be conducted by the Office of Administrative Hearings and shall be provided upon an appeal petition of the contracting agency in any of the following circumstances:
(1) Termination of a contracting agency’s contract.
(2) Denial of more than 4 percent or twenty-five thousand dollars ($25,000), whichever is less, of a local contracting agency’s contracted payment for services schedule.
(3) Demand for remittance of an overpayment of more than 4 percent or twenty-five thousand dollars ($25,000), whichever is less, of a local contracting agency’s annual contract.
(b) Before filing an appeal petition for an action taken pursuant to paragraph (2) or (3) of subdivision (a), the contracting agency shall have submitted all previously required standard monthly or quarterly reporting forms to the department.

SEC. 208.

 Section 8403 of the Education Code is amended and renumbered to read:

8310.
 All hearings required by Section 8309 shall be conducted according to the provisions of the Administrative Procedure Act (Chapter 5 (commencing with Section 11500) of Part 1 of Division 3 of Title 2 of the Government Code), except as otherwise directed in this article.

SEC. 209.

 Section 8404 of the Education Code is amended and renumbered to read:

8311.
 The Office of Administrative Hearings shall, by June 30, 1982, adopt regulations governing the hearings, which shall include all of the following:
(a) Deadlines for filing petitions, commencing hearings and rendering decisions.
(b) Notice to affected parties.
(c) The manner for maintaining appropriate provision for electronic recording and transcription, if necessary.
(d) Hearings shall be conducted at the offices of the Office of Administrative Hearings in Sacramento or Los Angeles. However, hearings in Los Angeles shall be available only to local contracting agencies with the department whose annual contracts total less than two hundred thousand dollars ($200,000).
(e) Any other issues deemed appropriate by the Office of Administrative Hearings.

SEC. 210.

 Section 8405 of the Education Code is amended and renumbered to read:

8312.
 The determination of the hearing examiner shall be the final administrative determination to be afforded the local contracting agency.

SEC. 211.

 Section 8406 of the Education Code is amended and renumbered to read:

8313.
 All actions by the department, as defined in subdivisions (a) to (c), inclusive, of Section 8309 shall be preceded by a written notice of action to the local contracting agency which shall include the following:
(a) A statement of the specific reasons for the action in the Statement of Issues.
(b) A description of the local contracting agency’s rights and responsibilities concerning the appeal procedure described herein.

SEC. 212.

 Section 8406.6 of the Education Code is amended and renumbered to read:

8314.
 (a) The Superintendent shall establish a contract classification system for purposes of identifying, monitoring, and providing technical assistance to contractors as follows:
(1) Clear contract.This designation shall be given to a contract that is neither a provisional contract, as described in paragraph (2), nor a conditional contract, as described in paragraph (3).
(2) Provisional contract.This designation applies to an agency’s first contract for any particular service or to the contract of an existing contracting agency for a new, modified, or different type of service. The timeframe of a provisional contract is at the discretion of the department and is given to ensure that the contracting agency can demonstrate fiscal and programmatic compliance before the contract is designated as a clear contract. The contract status shall be reviewed annually.
(3) Conditional contract.This designation applies to a high-risk contract awarded to a contracting agency that evidences fiscal or programmatic noncompliance, or both fiscal and programmatic noncompliance. A contracting agency with one or more contracts designated as conditional is deemed to be on conditional status with the department for all preschool program purposes and is subject to any restrictions deemed reasonable to secure compliance. The conditional contract shall include a bill of particulars detailing the items of noncompliance, the standards that must be met to avoid termination of contract and to qualify the agency for clear contract status, and technical assistance plan. Failure to demonstrate substantive progress toward fiscal or program compliance within six months of that designation shall constitute a breach of contract and may subject the contract to termination for any applicable cause specified in Section 8315 or 8317, in accordance with Section 8309.
(b) Agencies with conditional contracts shall receive technical assistance from the department.
(c) Notwithstanding subdivision (b), technical assistance shall be provided to any contracting agency making a written request to its assigned consultant or administrator within 60 days of receipt of the request.

SEC. 213.

 Section 8406.7 of the Education Code is amended and renumbered to read:

8315.
 (a) A contracting agency that evidences any of the following acts or omissions may have its contract or contracts immediately terminated if there is documented evidence of the acts or omissions, and upon review and recommendation of the general counsel of the department:
(1) Fraud, or conspiracy to defraud.
(2) Misuse or misappropriation of state or federal funds, including a violation of Section 8316.
(3) Embezzlement.
(4) Threats of bodily or other harm to a state official.
(5) Bribery or attempted bribery of a state official.
(6) Unsafe or unhealthy physical environment or facility.
(7) Substantiated abuse or molestation of children.
(8) Failure to report suspected child abuse or molestation.
(9) Theft of supplies, equipment, or food.
(10) Cessation of operations without the permission of the department, or acts or omissions evidencing abandonment of the contract or contracts.
(11) Failure of a program operating pursuant to this chapter to pay salaries owed to employees, pay federal payroll tax, or fully reimburse a significant number of childcare providers, as determined by the department, for more than 15 days after the employee salaries, federal payroll taxes, or reimbursement payments were due, unless the failure is attributable to a delay in receiving apportionments from the state.
(b) An agency whose contract is immediately terminated pursuant to this section retains appeal rights in accordance with Section 8309.
(c) Notwithstanding any service provision in the Administrative Procedure Act (Chapter 5 (commencing with Section 11500) of Part 1 of Division 3 of Title 2 of the Government Code), a notice of immediate termination shall be served on the contracting agency by personal service or at the last address on file with the department, by overnight mail or certified mail. Service may be proved in the manner authorized in a civil action. Service by mail is complete at the time of deposit.
(d) The department shall advise childcare and development contractors of the provisions of this section within 30 working days of the effective date of the act amending this section during the 2013–14 Regular Session of the Legislature.

SEC. 214.

 Section 8406.9 of the Education Code is amended and renumbered to read:

8316.
 (a) An agency that has in place or places a person in a position of fiscal responsibility or control who has been convicted of a crime involving misuse or misappropriation of state or federal funds, or a state or federal crime involving moral turpitude, may have its contract immediately terminated pursuant to Section 8315 if there is documented evidence of the conviction, and upon review and recommendation of the general counsel of the department.
(b) For purposes of this section, “position of fiscal responsibility or control” includes any authority to direct or control expenditure of, or any access to, state or federal preschool funds received pursuant to this chapter whether that authority or access is conferred based on the person’s status as an employee, director, manager, board member, or volunteer, or based on any other status.
(c) If the agency provides evidence to the department, before the effective date given in the notice of immediate termination, that the convicted person has been removed from the position of fiscal responsibility or control and provides assurance that the person will not be returned to a position of fiscal responsibility or control, the department shall withdraw the termination action.

SEC. 215.

 Section 8407 of the Education Code is amended and renumbered to read:

8317.
 Except for causes listed in Sections 8315 and 8316, termination of a California state preschool program contract shall not occur without good cause and without notice as described in Section 8313 at least 90 days before the effective date given in the notice of termination.

SEC. 216.

 Section 8408 of the Education Code is amended and renumbered to read:

8318.
 Actions as defined in subdivision (a) of Section 8309 shall remain in effect during the appeal process. However, local contracting agencies may continue to operate under the contract during an appeal of termination, unless the action is an immediate termination action taken pursuant to Section 8315 or 8316, in which case a contracting agency shall not continue to operate under the contract after the effective date given in the notice of immediate termination.

SEC. 217.

 Section 8409 of the Education Code is amended and renumbered to read:

8319.
 All contracts entered into by the department pursuant to Section 8233 shall contain a complete description of the appeal procedures provided in this article.

SEC. 218.

 Article 19.5 (commencing with Section 8430) of Chapter 2 of Part 6 of Division 1 of Title 1 of the Education Code is repealed.

SEC. 219.

 The heading of Article 20 (commencing with Section 8440) of Chapter 2 of Part 6 of Division 1 of Title 1 of the Education Code is repealed.

SEC. 220.

 Section 8440 of the Education Code is amended and renumbered to read:

8325.
 The department shall develop an annual calendar identifying target dates for contract application deadlines, contract award announcements, contract approvals, and contract evaluations. Each calendar shall be available to the public and shall be updated at least annually.

SEC. 221.

 Section 8441 of the Education Code is amended and renumbered to read:

8326.
 The department shall develop and maintain a central distribution list for application announcements.

SEC. 222.

 Section 8442 of the Education Code is amended and renumbered to read:

8327.
 Application announcements shall contain, but not be limited to, the following information: the goals and objectives of the program, identification of the specific minimum range of services to be purchased related to those goals, quantitative as well as qualitative measures that will be used by the department to evaluate service outcomes, specific criteria and a description of the methodology and timetable that will be followed to review and approve applications, and all minimum performance standards any agency is required to meet prior to contract approval.

SEC. 223.

 Section 8443 of the Education Code is amended and renumbered to read:

8329.
 (a) The department shall include all of the following in the application announcement:
(1) The time estimated for each step.
(2) The specific staff names, office addresses, and telephone numbers for those responsible for each step.
(3) The legal requirements and signatory approvals required prior to final approval of any contract.
(4) Any conditions for advance payments shall also be identified.
(b) This information shall be provided in any application announcement.

SEC. 224.

 Section 8444 of the Education Code is amended and renumbered to read:

8330.
 The department shall identify and transmit to all agencies awarded contracts forms required for contract payments, management information or reports required pursuant to contract objectives, and conditions and methods for contract evaluations. Methods and conditions for payment recoveries, withholding of payments, and contract terminations relating to nonperformance shall also be identified. This information shall be provided in all cases prior to final approval of any contract, unless the information is provided in the contract document.

SEC. 225.

 Section 8445 of the Education Code is amended and renumbered to read:

8331.
 The department shall develop a grievance procedure for resolving disputes arising from the awarding or administering of contracts, in addition to the remedies provided under the Administrative Procedure Act (Chapter 5 (commencing with Section 11500) of Part 1 of Division 3 of Title 2 of the Government Code).

SEC. 226.

 Section 8447 of the Education Code is amended and renumbered to read:

8332.
 (a) The Legislature hereby finds and declares that greater efficiencies may be achieved in the execution of state subsidized preschool program contracts with public and private agencies by the timely approval of contract provisions by the Department of Finance, the Department of General Services, and the department and by authorizing the department to establish a multiyear application, contract expenditure, and service review as may be necessary to provide timely service while preserving audit and oversight functions to protect the public welfare.
(b) The Department of Finance and the Department of General Services shall approve or disapprove annual contract funding terms and conditions, including the family fee schedules, and contract face sheets submitted by the department not more than 30 working days from the date of submission, unless unresolved conflicts remain between the Department of Finance, the department, and the Department of General Services. The department shall resolve conflicts within an additional 30 working day time period. Contracts and funding terms and conditions shall be issued to contractors no later than June 1. Applications for new preschool funding shall be issued not more than 45 working days after the effective date of authorized new allocations of preschool moneys.
(c) With respect to subdivision (b), it is the intent of the Legislature that the Department of Finance annually review contract funding terms and conditions for the primary purpose of ensuring consistency between contracts and the budget. This review shall include evaluating any proposed changes to contract language or other fiscal documents to which the contractor is required to adhere, including those changes to terms or conditions that authorize higher reimbursement rates, modify related adjustment factors, modify administrative or other service allowances, or diminish fee revenues otherwise available for services, to determine if the change is necessary or has the potential effect of reducing the number of full-time equivalent children that may be served.
(d) Notwithstanding the June 1 date specified in subdivision (b), changes to the fee schedule may be made at any other time to reflect the availability of accurate data necessary for its completion, provided it receives the approval of the Department of Finance. The Department of Finance shall review the changes within 30 working days of submission and the department shall resolve conflicts within an additional 30 working day period. Contractors shall be given adequate notice before the effective date of the approved schedules. It is the intent of the Legislature that contracts for services not be delayed by the timing of the availability of accurate data needed to update these schedules.

SEC. 227.

 Section 8447.5 of the Education Code is amended and renumbered to read:

8333.
 The department may execute a multiyear application process. Multiyear applications may only be submitted by public and private agencies that have been fully compliant in executing prior contracts for at least the preceding three fiscal years as evidenced by all of the following:
(a) No fiscal audit disclaimer.
(b) No program quality deficiencies.
(c) No contract compliance deficiencies.
(d) No incidents of child abuse or molestation.
(e) No program management, administrative, or staffing deficiencies.
(f) Any other criteria as may be deemed necessary to safeguard the public trust.

SEC. 228.

 The heading of Article 21 (commencing with Section 8448) of Chapter 2 of Part 6 of Division 1 of Title 1 of the Education Code is repealed.

SEC. 229.

 Section 8448 of the Education Code is amended and renumbered to read:

8335.
 As used in this article:
(a) “Financial and compliance audit” means a systematic review or appraisal to determine each of the following:
(1) Whether the financial statements of an audited organization fairly present the financial position and the results of financial operations in accordance with generally accepted accounting principles.
(2) Whether the organization has complied with laws and regulations that may have a material effect upon the financial statements.
(b) “Public accountants” means certified public accountants, or state licensed public accountants.
(c) “Independent auditors” means public accountants who have no direct or indirect relationship with the functions or activities being audited or with the business conducted by any of the officials or contractors being audited.
(d) “Generally accepted auditing standards” means the auditing standards set forth in the financial and compliance element of the “Government Auditing Standards” issued by the Comptroller General of the United States and incorporating the audit standards of the American Institute of Certified Public Accountants.
(e) “Nonprofit organization” means an organization described in Section 501(c)(3) of the Internal Revenue Code of 1954 which is exempt from taxation under Section 501(a) of that code, or any nonprofit, scientific, or educational organization qualified under Section 23701d of the Revenue and Taxation Code.
(f) (1) Annually, there shall be a single independent financial and compliance audit of organizations that contract with the department to provide preschool services or other support services under the jurisdiction of the department pursuant to this chapter. Any such audit shall include an evaluation of the accounting and control systems of the contractor and of the activities by the contractor to comply with the financial and compliance requirements of contracts received by the contractor from the state agency. The financial and compliance requirements to be reviewed during the audit shall be those developed and published by the department. Audits carried out pursuant to this section shall be audits of the contractor rather than audits of individual contracts or programs. In the case of any contractor that receives less than twenty-five thousand dollars ($25,000) per year from any state agency, the audit required by this section shall be conducted biennially, unless there is evidence of fraud or other violation of state law in connection with the contract. The cost of the audit may be included in contracts.
(2) The organization receiving funds from the state shall be responsible for obtaining the required financial and compliance audits of the organization and any subcontractors, except for subcontracts exempt from the department’s review, as agreed to by the Departments of Finance and General Services. The audits shall be made by independent auditors in accordance with generally accepted auditing standards. The audit shall be completed by the 15th day of the fifth month following the end of the contractor’s fiscal year. A copy of the required audit shall be filed with the department upon its completion. In the event an audit is not filed, the department shall notify the organization of the contract violation. The audit report filed shall be an integral part of the contract file.
(g) (1) Nothing in this article limits the authority of the department to make audits of contracts. However, if independent audits arranged for by contractors meet generally accepted auditing standards, the department shall rely on those audits and any additional audit work shall build upon the work already done.
(2) Nothing in this article precludes the state from conducting, or contracting for the conduct of, contract performance audits which are not financial and compliance audits.
(3) Nothing in this article limits the state’s responsibility or authority to enforce state law or regulations, procedures, or reporting requirements arising pursuant thereto.
(4) Nothing in this article limits the responsibility of the department to provide an independent appeal procedure according to the provisions of the Administrative Procedure Act (Chapter 5 (commencing with Section 11500) of Part 1 of Division 3 of Title 2) of the Government Code.

SEC. 230.

 Section 8450 of the Education Code is amended and renumbered to read:

8336.
 (a) All contractors are encouraged to develop and maintain a reserve within the child development fund, derived from earned but unexpended funds. Contractors may retain all earned funds, up to the reserve account maximum. For purposes of this section, “earned funds” are those for which the required number of eligible service units have been provided.
(b) (1) Earned funds shall not be expended for activities proscribed by Section 8315. Earned but unexpended funds shall remain in the contractor’s reserve account within the child development fund and shall be expended only by programs that are funded under contract with the department.
(2) A California state preschool program contracting agency may retain a reserve fund balance equal to 15 percent of the sum of the maximum reimbursable amounts of all California state preschool program contracts, or two thousand dollars ($2,000), whichever is greater.
(c) Each contractor’s audit shall identify any funds earned by the contractor for each contract through the provision of contracted services in excess of funds expended.
(d) Any interest earned on reserve funds shall be included in the fund balance of the reserve. This reserve fund shall be maintained in an interest-bearing account.
(e) Moneys in a contractor’s reserve fund may be used only for expenses that are reasonable and necessary costs as defined in Section 8205.
(f) Any reserve fund balance in excess of the amount authorized pursuant to subdivision (b) shall be returned to the department pursuant to procedures established by the department.
(g) Upon termination of all child development contracts between a contractor and the department, all moneys in a contractor’s reserve fund shall be returned to the department pursuant to procedures established by the department.
(h) Expenditures from, additions to, and balances in, the reserve fund shall be included in the contracting agency’s annual financial statements and audit.

SEC. 231.

 The heading of Article 23.5 (commencing with Section 8492) of Chapter 2 of Part 6 of Division 1 of Title 1 of the Education Code is repealed.

SEC. 232.

 Section 8492 of the Education Code is amended and renumbered to read:

8337.
 (a) The Legislature finds and declares all of the following:
(1) Early childhood inclusion embodies the values, policies, and practices that support the right of every infant and young child and their family, regardless of ability, to participate in a broad range of activities and contexts as full members of families, communities, and society. The desired results of inclusive experiences for children with and without disabilities and their families include a sense of belonging and membership, positive social relationships and friendships, and development and learning to reach their full potential. The defining features of inclusion that can be used to identify high-quality early childhood programs and services are access, participation, and supports.
(2) In accordance with the Individuals with Disabilities Education Act (20 U.S.C. Sec. 1400 et seq.), all young children with exceptional needs should have access to inclusive high-quality early care and education programs where they are able to learn alongside children who do not have exceptional needs and are provided with individualized and appropriate supports to enable them to meet high expectations.
(3) Inclusive early care and education programs can improve a child’s developmental progress and educational outcomes, especially for children with exceptional needs.
(4) Interventions provided to children with exceptional needs, including children who are at risk of requiring services for pupils with exceptional needs, can be more effective when a child is younger.
(5) Access to inclusive early care and education programs benefits communities and families, especially when programs are coordinated with public elementary and secondary education systems to create a developmental and educational continuum of support.
(b) The Inclusive Early Education Expansion Program is hereby established for the purpose of increasing access to inclusive early care and education programs.
(c) The sum of one hundred sixty-seven million two hundred forty-two thousand dollars ($167,242,000) is hereby appropriated from the General Fund to the Superintendent for allocation to local educational agencies for the Inclusive Early Education Expansion Program pursuant to this section. These funds shall be available for encumbrance until June 30, 2023.
(d) The department’s divisions for special education and early childhood programs shall work collaboratively to administer the program, including developing criteria for the selection of grantees.
(e) At a minimum, an applicant shall be a local educational agency and shall include all of the following information in its grant application:
(1) A proposal to increase access to subsidized inclusive early care and education programs for children up to five years of age, including those defined as “children with exceptional needs” pursuant to Section 8205, in low-income and high-need communities. “High-need” shall be defined pursuant to the county childcare needs assessment specified in Section 10486 of the Welfare and Institutions Code. The proposal shall quantify the number of additional subsidized children proposed to be served, including children with exceptional needs.
(2) A plan to fiscally sustain subsidized spaces or programs created by grant funds beyond the grant period. Subsidies may be funded with private, local, state, or federal funds, but shall be able to demonstrate a reasonable expectation of sustainability.
(3) The identification of local resources to contribute 33 percent of the total award amount. The total award amount shall include state and local resources. Local resources may include in-kind contributions.
(4) The identification of resources necessary to support lead agency professional development to allow staff to develop the knowledge and skills required to implement effective inclusive practices and fiscal sustainability.
(5) A description of the special education expertise that will be used to ensure the funds are used in a high-quality, inclusive manner.
(f) This section does not prohibit a local educational agency from applying on behalf of a consortium of providers within the local educational agency’s program area, including public and private agencies that will provide inclusive early care and education programs on behalf of the applicant.
(g) Grants shall be awarded on a competitive basis. Priority shall be given to all of the following:
(1) Applicants with a demonstrated need for expanded access to inclusive early care and education.
(2) Applicants in low-income communities and applicants that represent a consortium of local partners, including local special education partners and those with expertise in inclusive early learning and care environments.
(3) Applicants who demonstrate the ability to serve a broad range of disabilities.
(4) Applicants who do or plan to serve children with disabilities in proportion to their rate of identification similar to local educational agencies in their region.
(h) Grants may be used for one-time infrastructure costs only, including, but not limited to, adaptive and universal design facility renovations, adaptive equipment, and professional development. Funds shall not be used for ongoing expenditures.
(i) A grant recipient shall commit to provide program data and participate in overall program evaluation to ensure expanded access to inclusive environments, as specified by the department, as a condition of the receipt of grant funding.
(j) The department may reserve up to 1 percent of the program funds to support an evaluation to address improved access, participation, and supports to inclusive early learning and care programs and program and child outcomes.
(k) Commencing in the 2018–19 fiscal year, the department shall convene a stakeholder workgroup that includes, but is not limited to, representatives from the relevant divisions in the department, the State Department of Developmental Services, the State Interagency Coordinating Council on Early Intervention, local educational agencies, appropriate county agencies, regional centers, and resource and referral agencies. The workgroup shall be maintained through June 30, 2023, with the goal of providing continuous improvement in the inclusion of children with exceptional needs in early care and education settings. The department shall include representatives of local educational agencies participating in the Inclusive Early Education Expansion Program established in this section and county offices of education participating in the Inclusive Early Care Pilot Program, established pursuant to Section 136 of the act adding this section, in this workgroup, when appropriate, to share challenges, barriers, and best practices.
(l) For purposes of making the computations required by Section 8 of Article XVI of the California Constitution, the amount appropriated in subdivision (c) shall be deemed to be “General Fund revenues appropriated for school districts,” as defined in subdivision (c) of Section 41202, for the 2017–18 fiscal year, and included within the “total allocations to school districts and community college districts from General Fund proceeds of taxes appropriated pursuant to Article XIII B,” as defined in subdivision (e) of Section 41202, for the 2017–18 fiscal year.

SEC. 233.

 Article 24 (commencing with Section 8493) of Chapter 2 of Part 6 of Division 1 of Title 1 of the Education Code is repealed.

SEC. 234.

 Chapter 2.3 (commencing with Section 8499) of Part 6 of Division 1 of Title 1 of the Education Code is repealed.

SEC. 235.

 The heading of Chapter 2.5 (commencing with Section 8499.10) of Part 6 of Division 1 of Title 1 of the Education Code is repealed.

SEC. 236.

 Section 8499.10 of the Education Code is amended and renumbered to read:

8340.
 The Legislature finds and declares all of the following:
(a) The Congress has recognized the importance of the transfer from preschool to primary school. Section 642A of Title VI of Subtitle A of Chapter 8 of Subchapter B of the federal Omnibus Budget Reconciliation Act of 1981 (P.L. 97-35) was enacted to require grantees of federal Head Start funds to take steps to coordinate with and involve the local educational agency serving the community, including, but not limited to, all of the following:
(1) Developing and implementing a systematic procedure for transferring, with parental consent, Head Start program records for each participating child to the school in which the child will enroll.
(2) Establishing channels of communication between Head Start staff and their counterparts in the schools, including, but not limited to, teachers, social workers, and health staff, to facilitate the coordination of programs.
(3) Conducting meetings involving parents, kindergarten or elementary school teachers, and Head Start program teachers to discuss the educational, developmental, and other needs of individual children.
(4) Organizing and participating in joint transition-related training of school staff and Head Start staff.
(5) Developing and implementing a family outreach and support program in cooperation with entities carrying out parental involvement efforts under Title I of the Elementary and Secondary Education Act of 1965 (20 U.S.C. Sec. 6301 et seq.).
(6) Assisting families, administrators, and teachers in enhancing educational and developmental continuity between Head Start services and elementary school classes.
(7) Linking the services provided in the Head Start program with the education services provided by the local educational agency.
(b) The superintendent shall advise local education agencies of these federal requirements.

SEC. 237.

 Section 6253.21 of the Government Code is amended to read:

6253.21.
 (a) Notwithstanding any other provision of this chapter to the contrary, information regarding family childcare providers, as defined in subdivision (b) of Section 10421 of the Welfare and Institutions Code, shall not be subject to public disclosure pursuant to this chapter, except as provided in subdivisions (b) and (c).
(b) Consistent with Section 10422 of the Welfare and Institutions Code, copies of names, home and mailing addresses, county, home, if known, work, and cellular telephone numbers, and email addresses of persons described in subdivision (a) shall be made available, upon request, to provider organizations that have been determined to be a provider organization pursuant to subdivision (a) of Section 10422 of the Welfare and Institutions Code. Information shall be made available consistent with the deadlines set in Section 10422 of the Welfare and Institutions Code. This information shall not be used by the receiving entity for any purpose other than for purposes of organizing, representing, and assisting family childcare providers.
(c) Consistent with Section 10422 of the Welfare and Institutions Code, copies of names, home and mailing addresses, county, home, if known, work, and cellular telephone numbers, and email addresses of persons described in subdivision (a) shall be made available to a certified provider organization, as defined in subdivision (a) of Section 10421 of the Welfare and Institutions Code. Information shall be made available consistent with the deadlines set in Section 10422 of the Welfare and Institutions Code. This information shall not be used by the receiving entity for any purpose other than for purposes of organizing, representing, and assisting family childcare providers.
(d) This section does not prohibit or limit the disclosure of information otherwise required to be disclosed by the California Child Day Care Facilities Act (Chapter 3.4 (commencing with Section 1596.70) of, Chapter 3.5 (commencing with Section 1596.90) of, and Chapter 3.6 (commencing with Section 1597.30) of, Division 2 of the Health and Safety Code), or to an officer or employee of another state public agency for performance of their official duties under state law.
(e) All confidentiality requirements applicable to recipients of information pursuant to Section 1596.86 of the Health and Safety Code shall apply to protect the personal information of providers of small family childcare homes, as defined in Section 1596.78 of the Health and Safety Code, that is disclosed pursuant to subdivisions (b) and (c).
(f) A family childcare provider, as defined by subdivision (b) of Section 10421 of the Welfare and Institutions Code. may opt out of disclosure of their home and mailing address, home, work, and cellular telephone numbers, and email address from the lists described in subdivisions (c) and (d) of Section 10422 of the Welfare and Institutions Code by complying with the procedure set forth in subdivision (k) of Section 10422 of the Welfare and Institutions Code.

SEC. 238.

 Section 6254 of the Government Code is amended to read:

6254.
 Except as provided in Sections 6254.7 and 6254.13, this chapter does not require the disclosure of any of the following records:
(a) Preliminary drafts, notes, or interagency or intra-agency memoranda that are not retained by the public agency in the ordinary course of business, if the public interest in withholding those records clearly outweighs the public interest in disclosure.
(b) Records pertaining to pending litigation to which the public agency is a party, or to claims made pursuant to Division 3.6 (commencing with Section 810), until the pending litigation or claim has been finally adjudicated or otherwise settled.
(c) Personnel, medical, or similar files, the disclosure of which would constitute an unwarranted invasion of personal privacy.
(d) Records contained in or related to any of the following:
(1) Applications filed with any state agency responsible for the regulation or supervision of the issuance of securities or of financial institutions, including, but not limited to, banks, savings and loan associations, industrial loan companies, credit unions, and insurance companies.
(2) Examination, operating, or condition reports prepared by, on behalf of, or for the use of, any state agency referred to in paragraph (1).
(3) Preliminary drafts, notes, or interagency or intra-agency communications prepared by, on behalf of, or for the use of, any state agency referred to in paragraph (1).
(4) Information received in confidence by any state agency referred to in paragraph (1).
(e) Geological and geophysical data, plant production data, and similar information relating to utility systems development, or market or crop reports, that are obtained in confidence from any person.
(f) Records of complaints to, or investigations conducted by, or records of intelligence information or security procedures of, the office of the Attorney General and the Department of Justice, the Office of Emergency Services and any state or local police agency, or any investigatory or security files compiled by any other state or local police agency, or any investigatory or security files compiled by any other state or local agency for correctional, law enforcement, or licensing purposes. However, state and local law enforcement agencies shall disclose the names and addresses of persons involved in, or witnesses other than confidential informants to, the incident, the description of any property involved, the date, time, and location of the incident, all diagrams, statements of the parties involved in the incident, the statements of all witnesses, other than confidential informants, to the victims of an incident, or an authorized representative thereof, an insurance carrier against which a claim has been or might be made, and any person suffering bodily injury or property damage or loss, as the result of the incident caused by arson, burglary, fire, explosion, larceny, robbery, carjacking, vandalism, vehicle theft, or a crime as defined by subdivision (b) of Section 13951, unless the disclosure would endanger the safety of a witness or other person involved in the investigation, or unless disclosure would endanger the successful completion of the investigation or a related investigation. However, this subdivision does not require the disclosure of that portion of those investigative files that reflects the analysis or conclusions of the investigating officer.
Customer lists provided to a state or local police agency by an alarm or security company at the request of the agency shall be construed to be records subject to this subdivision.
Notwithstanding any other provision of this subdivision, state and local law enforcement agencies shall make public the following information, except to the extent that disclosure of a particular item of information would endanger the safety of a person involved in an investigation or would endanger the successful completion of the investigation or a related investigation:
(1) The full name and occupation of every individual arrested by the agency, the individual’s physical description including date of birth, color of eyes and hair, sex, height and weight, the time and date of arrest, the time and date of booking, the location of the arrest, the factual circumstances surrounding the arrest, the amount of bail set, the time and manner of release or the location where the individual is currently being held, and all charges the individual is being held upon, including any outstanding warrants from other jurisdictions and parole or probation holds.
(2) (A) Subject to the restrictions imposed by Section 841.5 of the Penal Code, the time, substance, and location of all complaints or requests for assistance received by the agency and the time and nature of the response thereto, including, to the extent the information regarding crimes alleged or committed or any other incident investigated is recorded, the time, date, and location of occurrence, the time and date of the report, the name and age of the victim, the factual circumstances surrounding the crime or incident, and a general description of any injuries, property, or weapons involved. The name of a victim of any crime defined by Section 220, 261, 261.5, 262, 264, 264.1, 265, 266, 266a, 266b, 266c, 266e, 266f, 266j, 267, 269, 273a, 273d, 273.5, 285, 286, 288, 288a, 288.2, 288.3, 288.4, 288.5, 288.7, 289, 422.6, 422.7, 422.75, 646.9, or 647.6 of the Penal Code may be withheld at the victim’s request, or at the request of the victim’s parent or guardian if the victim is a minor. When a person is the victim of more than one crime, information disclosing that the person is a victim of a crime defined in any of the sections of the Penal Code set forth in this subdivision may be deleted at the request of the victim, or the victim’s parent or guardian if the victim is a minor, in making the report of the crime, or of any crime or incident accompanying the crime, available to the public in compliance with the requirements of this paragraph.
(B) Subject to the restrictions imposed by Section 841.5 of the Penal Code, the names and images of a victim of human trafficking, as defined in Section 236.1 of the Penal Code, and of that victim’s immediate family, other than a family member who is charged with a criminal offense arising from the same incident, may be withheld at the victim’s request until the investigation or any subsequent prosecution is complete. For purposes of this subdivision, “immediate family” shall have the same meaning as that provided in paragraph (3) of subdivision (b) of Section 422.4 of the Penal Code.
(3) Subject to the restrictions of Section 841.5 of the Penal Code and this subdivision, the current address of every individual arrested by the agency and the current address of the victim of a crime, if the requester declares under penalty of perjury that the request is made for a scholarly, journalistic, political, or governmental purpose, or that the request is made for investigation purposes by a licensed private investigator as described in Chapter 11.3 (commencing with Section 7512) of Division 3 of the Business and Professions Code. However, the address of the victim of any crime defined by Section 220, 236.1, 261, 261.5, 262, 264, 264.1, 265, 266, 266a, 266b, 266c, 266e, 266f, 266j, 267, 269, 273a, 273d, 273.5, 285, 286, 288, 288a, 288.2, 288.3, 288.4, 288.5, 288.7, 289, 422.6, 422.7, 422.75, 646.9, or 647.6 of the Penal Code shall remain confidential. Address information obtained pursuant to this paragraph shall not be used directly or indirectly, or furnished to another, to sell a product or service to any individual or group of individuals, and the requester shall execute a declaration to that effect under penalty of perjury. This paragraph shall not be construed to prohibit or limit a scholarly, journalistic, political, or government use of address information obtained pursuant to this paragraph.
(4) Notwithstanding any other provision of this subdivision, commencing July 1, 2019, a video or audio recording that relates to a critical incident, as defined in subparagraph (C), may be withheld only as follows:
(A) (i) During an active criminal or administrative investigation, disclosure of a recording related to a critical incident may be delayed for no longer than 45 calendar days after the date the agency knew or reasonably should have known about the incident, if, based on the facts and circumstances depicted in the recording, disclosure would substantially interfere with the investigation, such as by endangering the safety of a witness or a confidential source. If an agency delays disclosure pursuant to this paragraph, the agency shall provide in writing to the requester the specific basis for the agency’s determination that disclosure would substantially interfere with the investigation and the estimated date for disclosure.
(ii) After 45 days from the date the agency knew or reasonably should have known about the incident, and up to one year from that date, the agency may continue to delay disclosure of a recording if the agency demonstrates that disclosure would substantially interfere with the investigation. After one year from the date the agency knew or reasonably should have known about the incident, the agency may continue to delay disclosure of a recording only if the agency demonstrates by clear and convincing evidence that disclosure would substantially interfere with the investigation. If an agency delays disclosure pursuant to this clause, the agency shall promptly provide in writing to the requester the specific basis for the agency’s determination that the interest in preventing interference with an active investigation outweighs the public interest in disclosure and provide the estimated date for the disclosure. The agency shall reassess withholding and notify the requester every 30 days. A recording withheld by the agency shall be disclosed promptly when the specific basis for withholding is resolved.
(B) (i) If the agency demonstrates, on the facts of the particular case, that the public interest in withholding a video or audio recording clearly outweighs the public interest in disclosure because the release of the recording would, based on the facts and circumstances depicted in the recording, violate the reasonable expectation of privacy of a subject depicted in the recording, the agency shall provide in writing to the requester the specific basis for the expectation of privacy and the public interest served by withholding the recording and may use redaction technology, including blurring or distorting images or audio, to obscure those specific portions of the recording that protect that interest. However, the redaction shall not interfere with the viewer’s ability to fully, completely, and accurately comprehend the events captured in the recording and the recording shall not otherwise be edited or altered.
(ii) Except as provided in clause (iii), if the agency demonstrates that the reasonable expectation of privacy of a subject depicted in the recording cannot adequately be protected through redaction as described in clause (i) and that interest outweighs the public interest in disclosure, the agency may withhold the recording from the public, except that the recording, either redacted as provided in clause (i) or unredacted, shall be disclosed promptly, upon request, to any of the following:
(I) The subject of the recording whose privacy is to be protected, or their authorized representative.
(II) If the subject is a minor, the parent or legal guardian of the subject whose privacy is to be protected.
(III) If the subject whose privacy is to be protected is deceased, an heir, beneficiary, designated immediate family member, or authorized legal representative of the deceased subject whose privacy is to be protected.
(iii) If disclosure pursuant to clause (ii) would substantially interfere with an active criminal or administrative investigation, the agency shall provide in writing to the requester the specific basis for the agency’s determination that disclosure would substantially interfere with the investigation, and provide the estimated date for the disclosure of the video or audio recording. Thereafter, the recording may be withheld by the agency for 45 calendar days, subject to extensions as set forth in clause (ii) of subparagraph (A).
(C) For purposes of this paragraph, a video or audio recording relates to a critical incident if it depicts any of the following incidents:
(i) An incident involving the discharge of a firearm at a person by a peace officer or custodial officer.
(ii) An incident in which the use of force by a peace officer or custodial officer against a person resulted in death or in great bodily injury.
(D) An agency may provide greater public access to video or audio recordings than the minimum standards set forth in this paragraph.
(E) This paragraph does not alter, limit, or negate any other rights, remedies, or obligations with respect to public records regarding an incident other than a critical incident as described in subparagraph (C).
(F) For purposes of this paragraph, a peace officer does not include any peace officer employed by the Department of Corrections and Rehabilitation.
(g) Test questions, scoring keys, and other examination data used to administer a licensing examination, examination for employment, or academic examination, except as provided for in Chapter 3 (commencing with Section 99150) of Part 65 of Division 14 of Title 3 of the Education Code.
(h) The contents of real estate appraisals or engineering or feasibility estimates and evaluations made for or by the state or local agency relative to the acquisition of property, or to prospective public supply and construction contracts, until all of the property has been acquired or all of the contract agreement obtained. However, the law of eminent domain shall not be affected by this provision.
(i) Information required from any taxpayer in connection with the collection of local taxes that is received in confidence and the disclosure of the information to other persons would result in unfair competitive disadvantage to the person supplying the information.
(j) Library circulation records kept for the purpose of identifying the borrower of items available in libraries, and library and museum materials made or acquired and presented solely for reference or exhibition purposes. The exemption in this subdivision shall not apply to records of fines imposed on the borrowers.
(k) Records, the disclosure of which is exempted or prohibited pursuant to federal or state law, including, but not limited to, provisions of the Evidence Code relating to privilege.
(l) Correspondence of and to the Governor or employees of the Governor’s office or in the custody of or maintained by the Governor’s Legal Affairs Secretary. However, public records shall not be transferred to the custody of the Governor’s Legal Affairs Secretary to evade the disclosure provisions of this chapter.
(m) In the custody of or maintained by the Legislative Counsel, except those records in the public database maintained by the Legislative Counsel that are described in Section 10248.
(n) Statements of personal worth or personal financial data required by a licensing agency and filed by an applicant with the licensing agency to establish their personal qualification for the license, certificate, or permit applied for.
(o) Financial data contained in applications for financing under Division 27 (commencing with Section 44500) of the Health and Safety Code, if an authorized officer of the California Pollution Control Financing Authority determines that disclosure of the financial data would be competitively injurious to the applicant and the data is required in order to obtain guarantees from the United States Small Business Administration. The California Pollution Control Financing Authority shall adopt rules for review of individual requests for confidentiality under this section and for making available to the public those portions of an application that are subject to disclosure under this chapter.
(p) (1)  Records of state agencies related to activities governed by Chapter 10.3 (commencing with Section 3512), Chapter 10.5 (commencing with Section 3525), and Chapter 12 (commencing with Section 3560) of Division 4, and Chapter 25 (commencing with Section 10420) of Part 1.8 of Division 9 of the Welfare and Institutions Code, that reveal a state agency’s deliberative processes, impressions, evaluations, opinions, recommendations, meeting minutes, research, work products, theories, or strategy, or that provide instruction, advice, or training to employees who do not have full collective bargaining and representation rights under these chapters. This paragraph shall not be construed to limit the disclosure duties of a state agency with respect to any other records relating to the activities governed by the employee relations acts referred to in this paragraph.
(2) Records of local agencies related to activities governed by Chapter 10 (commencing with Section 3500) of Division 4, that reveal a local agency’s deliberative processes, impressions, evaluations, opinions, recommendations, meeting minutes, research, work products, theories, or strategy, or that provide instruction, advice, or training to employees who do not have full collective bargaining and representation rights under that chapter. This paragraph shall not be construed to limit the disclosure duties of a local agency with respect to any other records relating to the activities governed by the employee relations act referred to in this paragraph.
(q) (1) Records of state agencies related to activities governed by Article 2.6 (commencing with Section 14081), Article 2.8 (commencing with Section 14087.5), and Article 2.91 (commencing with Section 14089) of Chapter 7 of Part 3 of Division 9 of the Welfare and Institutions Code, that reveal the special negotiator’s deliberative processes, discussions, communications, or any other portion of the negotiations with providers of health care services, impressions, opinions, recommendations, meeting minutes, research, work product, theories, or strategy, or that provide instruction, advice, or training to employees.
(2) Except for the portion of a contract containing the rates of payment, contracts for inpatient services entered into pursuant to these articles, on or after April 1, 1984, shall be open to inspection one year after they are fully executed. If a contract for inpatient services that is entered into prior to April 1, 1984, is amended on or after April 1, 1984, the amendment, except for any portion containing the rates of payment, shall be open to inspection one year after it is fully executed. If the California Medical Assistance Commission enters into contracts with health care providers for other than inpatient hospital services, those contracts shall be open to inspection one year after they are fully executed.
(3) Three years after a contract or amendment is open to inspection under this subdivision, the portion of the contract or amendment containing the rates of payment shall be open to inspection.
(4) Notwithstanding any other law, the entire contract or amendment shall be open to inspection by the Joint Legislative Audit Committee and the Legislative Analyst’s Office. The committee and that office shall maintain the confidentiality of the contracts and amendments until the time a contract or amendment is fully open to inspection by the public.
(r) Records of Native American graves, cemeteries, and sacred places and records of Native American places, features, and objects described in Sections 5097.9 and 5097.993 of the Public Resources Code maintained by, or in the possession of, the Native American Heritage Commission, another state agency, or a local agency.
(s) A final accreditation report of the Joint Commission on Accreditation of Hospitals that has been transmitted to the State Department of Health Care Services pursuant to subdivision (b) of Section 1282 of the Health and Safety Code.
(t) Records of a local hospital district, formed pursuant to Division 23 (commencing with Section 32000) of the Health and Safety Code, or the records of a municipal hospital, formed pursuant to Article 7 (commencing with Section 37600) or Article 8 (commencing with Section 37650) of Chapter 5 of Part 2 of Division 3 of Title 4 of this code, that relate to any contract with an insurer or nonprofit hospital service plan for inpatient or outpatient services for alternative rates pursuant to Section 10133 of the Insurance Code. However, the record shall be open to inspection within one year after the contract is fully executed.
(u) (1) Information contained in applications for licenses to carry firearms issued pursuant to Section 26150, 26155, 26170, or 26215 of the Penal Code by the sheriff of a county or the chief or other head of a municipal police department that indicates when or where the applicant is vulnerable to attack or that concerns the applicant’s medical or psychological history or that of members of their family.
(2) The home address and telephone number of prosecutors, public defenders, peace officers, judges, court commissioners, and magistrates that are set forth in applications for licenses to carry firearms issued pursuant to Section 26150, 26155, 26170, or 26215 of the Penal Code by the sheriff of a county or the chief or other head of a municipal police department.
(3) The home address and telephone number of prosecutors, public defenders, peace officers, judges, court commissioners, and magistrates that are set forth in licenses to carry firearms issued pursuant to Section 26150, 26155, 26170, or 26215 of the Penal Code by the sheriff of a county or the chief or other head of a municipal police department.
(v) (1) Records of the Managed Risk Medical Insurance Board and the State Department of Health Care Services related to activities governed by former Part 6.3 (commencing with Section 12695), former Part 6.5 (commencing with Section 12700), Part 6.6 (commencing with Section 12739.5), or Part 6.7 (commencing with Section 12739.70) of Division 2 of the Insurance Code, or Chapter 2 (commencing with Section 15810) or Chapter 4 (commencing with Section 15870) of Part 3.3 of Division 9 of the Welfare and Institutions Code, and that reveal any of the following:
(A) The deliberative processes, discussions, communications, or any other portion of the negotiations with entities contracting or seeking to contract with the board or the department, entities with which the board or the department is considering a contract, or entities with which the board or department is considering or enters into any other arrangement under which the board or the department provides, receives, or arranges services or reimbursement.
(B) The impressions, opinions, recommendations, meeting minutes, research, work product, theories, or strategy of the board or its staff or the department or its staff, or records that provide instructions, advice, or training to their employees.
(2) (A) Except for the portion of a contract that contains the rates of payment, contracts entered into pursuant to former Part 6.3 (commencing with Section 12695), former Part 6.5 (commencing with Section 12700), Part 6.6 (commencing with Section 12739.5), or Part 6.7 (commencing with Section 12739.70) of Division 2 of the Insurance Code, or Chapter 2 (commencing with Section 15810) or Chapter 4 (commencing with Section 15870) of Part 3.3 of Division 9 of the Welfare and Institutions Code, on or after July 1, 1991, shall be open to inspection one year after their effective dates.
(B) If a contract that is entered into prior to July 1, 1991, is amended on or after July 1, 1991, the amendment, except for any portion containing the rates of payment, shall be open to inspection one year after the effective date of the amendment.
(3) Three years after a contract or amendment is open to inspection pursuant to this subdivision, the portion of the contract or amendment containing the rates of payment shall be open to inspection.
(4) Notwithstanding any other law, the entire contract or amendments to a contract shall be open to inspection by the Joint Legislative Audit Committee. The committee shall maintain the confidentiality of the contracts and amendments thereto, until the contracts or amendments to the contracts are open to inspection pursuant to paragraph (3).
(w) (1) Records of the Managed Risk Medical Insurance Board related to activities governed by Chapter 8 (commencing with Section 10700) of Part 2 of Division 2 of the Insurance Code, and that reveal the deliberative processes, discussions, communications, or any other portion of the negotiations with health plans, or the impressions, opinions, recommendations, meeting minutes, research, work product, theories, or strategy of the board or its staff, or records that provide instructions, advice, or training to employees.
(2) Except for the portion of a contract that contains the rates of payment, contracts for health coverage entered into pursuant to Chapter 8 (commencing with Section 10700) of Part 2 of Division 2 of the Insurance Code, on or after January 1, 1993, shall be open to inspection one year after they have been fully executed.
(3) Notwithstanding any other law, the entire contract or amendments to a contract shall be open to inspection by the Joint Legislative Audit Committee. The committee shall maintain the confidentiality of the contracts and amendments thereto, until the contracts or amendments to the contracts are open to inspection pursuant to paragraph (2).
(x) Financial data contained in applications for registration, or registration renewal, as a service contractor filed with the Director of Consumer Affairs pursuant to Chapter 20 (commencing with Section 9800) of Division 3 of the Business and Professions Code, for the purpose of establishing the service contractor’s net worth, or financial data regarding the funded accounts held in escrow for service contracts held in force in this state by a service contractor.
(y) (1) Records of the Managed Risk Medical Insurance Board and the State Department of Health Care Services related to activities governed by Part 6.2 (commencing with Section 12693) or former Part 6.4 (commencing with Section 12699.50) of Division 2 of the Insurance Code or Sections 14005.26 and 14005.27 of, or Chapter 3 (commencing with Section 15850) of Part 3.3 of Division 9 of, the Welfare and Institutions Code, if the records reveal any of the following:
(A) The deliberative processes, discussions, communications, or any other portion of the negotiations with entities contracting or seeking to contract with the board or the department, entities with which the board or department is considering a contract, or entities with which the board or department is considering or enters into any other arrangement under which the board or department provides, receives, or arranges services or reimbursement.
(B) The impressions, opinions, recommendations, meeting minutes, research, work product, theories, or strategy of the board or its staff, or the department or its staff, or records that provide instructions, advice, or training to employees.
(2) (A) Except for the portion of a contract that contains the rates of payment, contracts entered into pursuant to Part 6.2 (commencing with Section 12693) or former Part 6.4 (commencing with Section 12699.50) of Division 2 of the Insurance Code, on or after January 1, 1998, or Sections 14005.26 and 14005.27 of, or Chapter 3 (commencing with Section 15850) of Part 3.3 of Division 9 of, the Welfare and Institutions Code shall be open to inspection one year after their effective dates.
(B) If a contract entered into pursuant to Part 6.2 (commencing with Section 12693) or former Part 6.4 (commencing with Section 12699.50) of Division 2 of the Insurance Code or Sections 14005.26 and 14005.27 of, or Chapter 3 (commencing with Section 15850) of Part 3.3 of Division 9 of, the Welfare and Institutions Code, is amended, the amendment shall be open to inspection one year after the effective date of the amendment.
(3) Three years after a contract or amendment is open to inspection pursuant to this subdivision, the portion of the contract or amendment containing the rates of payment shall be open to inspection.
(4) Notwithstanding any other law, the entire contract or amendments to a contract shall be open to inspection by the Joint Legislative Audit Committee. The committee shall maintain the confidentiality of the contracts and amendments thereto until the contract or amendments to a contract are open to inspection pursuant to paragraph (2) or (3).
(5) The exemption from disclosure provided pursuant to this subdivision for the contracts, deliberative processes, discussions, communications, negotiations, impressions, opinions, recommendations, meeting minutes, research, work product, theories, or strategy of the board or its staff, or the department or its staff, shall also apply to the contracts, deliberative processes, discussions, communications, negotiations, impressions, opinions, recommendations, meeting minutes, research, work product, theories, or strategy of applicants pursuant to former Part 6.4 (commencing with Section 12699.50) of Division 2 of the Insurance Code or Chapter 3 (commencing with Section 15850) of Part 3.3 of Division 9 of the Welfare and Institutions Code.
(z) Records obtained pursuant to paragraph (2) of subdivision (f) of Section 2891.1 of the Public Utilities Code.
(aa) A document prepared by or for a state or local agency that assesses its vulnerability to terrorist attack or other criminal acts intended to disrupt the public agency’s operations and that is for distribution or consideration in a closed session.
(ab) Critical infrastructure information, as defined in Section 131(3) of Title 6 of the United States Code, that is voluntarily submitted to the Office of Emergency Services for use by that office, including the identity of the person who or entity that voluntarily submitted the information. As used in this subdivision, “voluntarily submitted” means submitted in the absence of the office exercising any legal authority to compel access to or submission of critical infrastructure information. This subdivision shall not affect the status of information in the possession of any other state or local governmental agency.
(ac) All information provided to the Secretary of State by a person for the purpose of registration in the Advance Health Care Directive Registry, except that those records shall be released at the request of a health care provider, a public guardian, or the registrant’s legal representative.
(ad) The following records of the State Compensation Insurance Fund:
(1) Records related to claims pursuant to Chapter 1 (commencing with Section 3200) of Division 4 of the Labor Code, to the extent that confidential medical information or other individually identifiable information would be disclosed.
(2) Records related to the discussions, communications, or any other portion of the negotiations with entities contracting or seeking to contract with the fund, and any related deliberations.
(3) Records related to the impressions, opinions, recommendations, meeting minutes of meetings or sessions that are lawfully closed to the public, research, work product, theories, or strategy of the fund or its staff, on the development of rates, contracting strategy, underwriting, or competitive strategy pursuant to the powers granted to the fund in Chapter 4 (commencing with Section 11770) of Part 3 of Division 2 of the Insurance Code.
(4) Records obtained to provide workers’ compensation insurance under Chapter 4 (commencing with Section 11770) of Part 3 of Division 2 of the Insurance Code, including, but not limited to, any medical claims information, policyholder information provided that nothing in this paragraph shall be interpreted to prevent an insurance agent or broker from obtaining proprietary information or other information authorized by law to be obtained by the agent or broker, and information on rates, pricing, and claims handling received from brokers.
(5) (A) Records that are trade secrets pursuant to Section 6276.44, or Article 11 (commencing with Section 1060) of Chapter 4 of Division 8 of the Evidence Code, including, without limitation, instructions, advice, or training provided by the State Compensation Insurance Fund to its board members, officers, and employees regarding the fund’s special investigation unit, internal audit unit, and informational security, marketing, rating, pricing, underwriting, claims handling, audits, and collections.
(B) Notwithstanding subparagraph (A), the portions of records containing trade secrets shall be available for review by the Joint Legislative Audit Committee, California State Auditor’s Office, Division of Workers’ Compensation, and the Department of Insurance to ensure compliance with applicable law.
(6) (A) Internal audits containing proprietary information and the following records that are related to an internal audit:
(i) Personal papers and correspondence of any person providing assistance to the fund when that person has requested in writing that their papers and correspondence be kept private and confidential. Those papers and correspondence shall become public records if the written request is withdrawn, or upon order of the fund.
(ii) Papers, correspondence, memoranda, or any substantive information pertaining to any audit not completed or an internal audit that contains proprietary information.
(B) Notwithstanding subparagraph (A), the portions of records containing proprietary information, or any information specified in subparagraph (A) shall be available for review by the Joint Legislative Audit Committee, California State Auditor’s Office, Division of Workers’ Compensation, and the Department of Insurance to ensure compliance with applicable law.
(7) (A) Except as provided in subparagraph (C), contracts entered into pursuant to Chapter 4 (commencing with Section 11770) of Part 3 of Division 2 of the Insurance Code shall be open to inspection one year after the contract has been fully executed.
(B) If a contract entered into pursuant to Chapter 4 (commencing with Section 11770) of Part 3 of Division 2 of the Insurance Code is amended, the amendment shall be open to inspection one year after the amendment has been fully executed.
(C) Three years after a contract or amendment is open to inspection pursuant to this subdivision, the portion of the contract or amendment containing the rates of payment shall be open to inspection.
(D) Notwithstanding any other law, the entire contract or amendments to a contract shall be open to inspection by the Joint Legislative Audit Committee. The committee shall maintain the confidentiality of the contracts and amendments thereto until the contract or amendments to a contract are open to inspection pursuant to this paragraph.
(E) This paragraph is not intended to apply to documents related to contracts with public entities that are not otherwise expressly confidential as to that public entity.
(F) For purposes of this paragraph, “fully executed” means the point in time when all of the necessary parties to the contract have signed the contract.
This section does not prevent any agency from opening its records concerning the administration of the agency to public inspection, unless disclosure is otherwise prohibited by law.
This section does not prevent any health facility from disclosing to a certified bargaining agent relevant financing information pursuant to Section 8 of the National Labor Relations Act (29 U.S.C. Sec. 158).

SEC. 239.

 Section 19815.4 of the Government Code is amended to read:

19815.4.
 The director shall do all of the following:
(a) Be responsible for the management of the department.
(b) Administer and enforce the laws pertaining to personnel.
(c) Observe and report to the Governor on the conditions of the nonmerit aspects of personnel.
(d) Formulate, adopt, amend, or repeal rules, regulations, and general policies affecting the purposes, responsibilities, and jurisdiction of the department and that are consistent with the law and necessary for personnel administration.
All regulations relating to personnel administration heretofore adopted pursuant to this part by the State Personnel Board, California Victim Compensation Board, the Department of General Services, and the Department of Finance, and in effect on the operative date of this part, shall remain in effect and shall be fully enforceable unless and until readopted, amended, or repealed by the director.
(e) Hold hearings, subpoena witnesses, administer oaths, and conduct investigations concerning all matters relating to the department’s jurisdiction.
(f) Act on behalf of the department and delegate powers to any authorized representative.
(g) Serve as the Governor’s designated representative pursuant to Section 3517.
(h) Perform any other duties that may be prescribed by law, and any other administrative and executive duties that have by other provisions of law been previously imposed.
(i) Serve as the Governor’s designated representative pursuant to Section 10424.5 of the Welfare and Institutions Code.

SEC. 240.

 Section 1596.64 of the Health and Safety Code is amended to read:

1596.64.
 (a)  The department shall enter into a contract with the California Child Care Resource and Referral Network to administer the trustline duties as described in this chapter.
(b)  The California Child Care Resources and Referral Network may subcontract with local resource and referral programs for the implementation of the trustline program at the local level.
(c) Notwithstanding any other law:
(1) Contracts or grants awarded pursuant to this chapter shall be exempt from the personal services contracting requirements of Article 4 (commencing with Section 19130) of Chapter 5 of Part 2 of Division 5 of Title 2 of the Government Code.
(2) Contracts or grants awarded pursuant to this chapter shall be exempt from the Public Contract Code and the State Contracting Manual, and shall not be subject to the approval of the Department of General Services.

SEC. 241.

 Section 1596.645 of the Health and Safety Code is amended to read:

1596.645.
 The California Child Care Resource and Referral Network, in consultation with representatives of private industry, parents, childcare resource and referral agencies, the department, trustline providers, employment agencies, and the pediatric health sector, shall review and make recommendations concerning the operation of the trustline. This review shall include a consideration of strategies for reducing the processing time for trustline application denials, and to the extent possible, an evaluation of, or proposed methodology for measuring, whether those childcare providers for whom trustline applications are denied are still providing care when denial letters are sent to them.

SEC. 242.

 Section 1596.655 of the Health and Safety Code is amended to read:

1596.655.
 A childcare resource and referral agency established pursuant to Chapter 2 (commencing with Section 10217) of Part 1.8 of Division 9 of the Welfare and Institutions Code shall have the following responsibilities in the administration of the trustline within its local geographic area of service:
(a)  Implement the local elements of the promotion plan designed by the California Child Care Resource and Referral Network pursuant to Section 1596.643 and publicize the availability, purpose, and benefits of the trustline to parents, childcare providers, prospective childcare providers, and institutions and agencies that have frequent contact with parents and providers.
(b)  Cooperate with the California Child Care Resource and Referral Network in promotional and data collection efforts.
(c)  Report annually to the California Child Care Resource and Referral Network on local promotional efforts, problems encountered, and recommendations for program improvement.
(d)  Ensure that the trustline is accessible to all persons in the state, regardless of their ability to speak English.
(e)  Provide information and technical assistance on the trustline process to parents, childcare providers, and other interested parties.

SEC. 243.

 Section 1596.66 of the Health and Safety Code is amended to read:

1596.66.
 (a) Each license-exempt childcare provider, as defined pursuant to Section 1596.60, who is compensated, in whole or in part, with funds provided pursuant to the Alternative Payment Program, Chapter 3 (commencing with Section 10225) of Part 1.8 of Division 9 of the Welfare and Institutions Code or pursuant to the federal Child Care and Development Block Grant Program, except a provider who is, by marriage, blood, or court decree, the grandparent, aunt, or uncle of the child in care, shall be registered pursuant to Sections 1596.603 and 1596.605 in order to be eligible to receive this compensation. Registration under this chapter shall be required for providers who receive funds under Section 9858 and following of Title 42 of the United States Code only to the extent permitted by that law and the regulations adopted pursuant thereto. Registration under this chapter shall be required for providers who receive funds under the federal Child Care and Development Block Grant Program only to the extent permitted by that program and the regulations adopted pursuant thereto.
(b) For the purposes of registration of the providers identified in subdivision (a), the following procedures shall apply:
(1) Notwithstanding subdivision (a) of Section 1596.603, the provider shall submit the fingerprints and Trustline application to the local childcare resource and referral agency established pursuant to Chapter 2 (commencing with Section 10217) of Part 1.8 of Division 9 of the Welfare and Institutions Code. The local childcare resource and referral agency shall transmit the fingerprints and completed Trustline applications to the department and address any local problems that occur in the registration system. If a fee is charged by the local childcare resource and referral agency that takes a provider’s fingerprints, the provider shall be reimbursed for this charge by the department, through the local childcare resource and referral agency, from federal Child Care and Development Block Grant funds to the extent that those funds are available.
(2) The department shall adhere to the requirements of Sections 1596.603, 1596.605, 1596.606, and 1596.607 and shall notify the California Child Care Resource and Referral Network of any action it takes pursuant to Sections 1596.605, 1596.606, and 1596.607.
(3) The California Child Care Resource and Referral Network shall notify the applicable local childcare resource and referral agencies, alternative payment programs, and county welfare departments of the status of the Trustline applicants and registered Trustline childcare providers. The network shall maintain a toll-free telephone line to provide information to the local resource and referral agencies, the alternative payment programs, and the childcare recipients of the status of providers.
(c) This section shall become operative only if funds appropriated for the purposes of this article from Item 6110-196-890 of Section 2 of the Budget Act of 1991 are incorporated into and approved as part of the state plan that is required pursuant to Section 658(E)(a) of the federal Child Care Block Grant Act of 1990 (Sec. 5082, P.L. 101-508).

SEC. 244.

 Section 1596.67 of the Health and Safety Code is amended to read:

1596.67.
 (a) To the extent permitted by federal law, each childcare provider, as defined by Section 1596.60, who receives compensation, in whole or in part, under Stage 1 of the CalWORKs Child Care Program pursuant to Chapter 21 (commencing with Section 10370) of Part 1.8 of Division 9 of the Welfare and Institutions Code, for providing childcare for a recipient or former recipient, except a provider who is, by marriage, blood, or court decree, the grandparent, aunt, or uncle of the child in care, shall be registered pursuant to Sections 1596.603 and 1596.605 in order to be eligible to receive this compensation. Active Trustline registration is required for providers who receive compensation under Stage 1 of the CalWORKs Child Care Program pursuant to Chapter 21 (commencing with Section 10370) of Part 1.8 of Division 9 of the Welfare and Institutions Code, for providing childcare for a recipient or former recipient only to the extent permitted by that law and the regulations adopted pursuant thereto. This section applies only to a license-exempt childcare provider, as defined by Section 1596.60, who registers for payment under Stage 1 of the CalWORKs Child Care Program pursuant to Chapter 21 (commencing with Section 10370) of Part 1.8 of Division 9 of the Welfare and Institutions Code, for providing childcare for a recipient or former recipient after the implementation of the Trustline registration system in those programs. A provider, as defined by Section 1596.60, who was exempted from Trustline registration because the provider was not compensated, in whole or in part, with funds provided under Stage 1 of the CalWORKs Child Care Program pursuant to Chapter 21 (commencing with Section 10370) of Part 1.8 of Division 9 of the Welfare and Institutions Code, for providing childcare for a recipient or former recipient shall be registered, at no cost to the provider, pursuant to Sections 1596.603 and 1596.605 when either of the following occur:
(1) The provider begins to provide childcare to an eligible family for which the provider has not provided care.
(2) The provider begins to provide childcare to an eligible family subsequent to a lapse in providing care that is compensated under Stage 1 of the CalWORKs Child Care Program pursuant to Chapter 21 (commencing with Section 10370) of Part 1.8 of Division 9 of the Welfare and Institutions Code, for providing childcare for a recipient or former recipient.
(b) Payment provided pursuant to subdivision (a) shall cease if the provider has a criminal conviction for which the department has not granted a criminal record exemption pursuant to subdivision (f) of Section 1596.871.
(c) Subdivision (a) shall not be implemented unless funding for Trustline registration is appropriated to the department for this purpose in the annual Budget Act or in other legislation. The department shall enter into a contract with the California Child Care Resource and Referral Network to administer the Trustline as it relates to providers who are compensated under Stage 1 of the CalWORKs Child Care Program pursuant to Chapter 21 (commencing with Section 10370) of Part 1.8 of Division 9 of the Welfare and Institutions Code, for providing childcare for a recipient or former recipient.

SEC. 245.

 Section 1596.792 of the Health and Safety Code is amended to read:

1596.792.
 This chapter, Chapter 3.5 (commencing with Section 1596.90), and Chapter 3.6 (commencing with Section 1597.30) do not apply to any of the following:
(a) Any health facility, as defined by Section 1250.
(b) Any clinic, as defined by Section 1202.
(c) Any community care facility, as defined by Section 1502.
(d) Any family childcare home providing care for the children of only one family in addition to the operator’s own children.
(e) Any cooperative arrangement between parents for the care of their children when no payment is involved and the arrangement meets all of the following conditions:
(1) In a cooperative arrangement, parents shall combine their efforts so that each parent, or set of parents, rotates as the responsible caregiver with respect to all the children in the cooperative.
(2) Any person caring for children shall be a parent, legal guardian, stepparent, grandparent, aunt, uncle, or adult sibling of at least one of the children in the cooperative.
(3) There can be no payment of money or receipt of in-kind income in exchange for the provision of care. This does not prohibit in-kind contributions of snacks, games, toys, blankets for napping, pillows, and other materials parents deem appropriate for their children. It is not the intent of this paragraph to prohibit payment for outside activities, the amount of which may not exceed the actual cost of the activity.
(4) No more than 12 children are receiving care in the same place at the same time.
(f) Any arrangement for the receiving and care of children by a relative.
(g) Any public recreation program. “Public recreation program” means a program operated by the state, city, county, special district, school district, community college district, chartered city, or chartered city and county that meets either of the following criteria:
(1) The program is operated only during hours other than normal school hours for kindergarten and grades 1 to 12, inclusive, in the public school district where the program is located, or operated only during periods when students in kindergarten and grades 1 to 12, inclusive, are normally not in session in the public school district where the program is located, for either of the following periods:
(A) For under 20 hours per week.
(B) For a total of 14 weeks or less during a 12-month period. This total applies to any 14 weeks within any 12-month period, without regard to whether the weeks are consecutive.
In determining “normal school hours” or periods when students are “normally not in session,” the State Department of Social Services shall, when appropriate, consider the normal school hours or periods when students are normally not in session for students attending a year-round school.
(2) The program is provided to children who are over the age of four years and nine months and not yet enrolled in school and the program is operated during either of the following periods:
(A) For under 16 hours per week.
(B) For a total of 12 weeks or less during a 12-month period. This total applies to any 12 weeks within any 12-month period, without regard to whether the weeks are consecutive.
(3) The program is provided to children under the age of four years and nine months with sessions that run 12 hours per week or less and are 12 weeks or less in duration. A program subject to this paragraph may permit children to be enrolled in consecutive sessions throughout the year. However, the program shall not permit children to be enrolled in a combination of sessions that total more than 12 hours per week for each child.
(h) Extended daycare programs operated by public or private schools, including, but not limited to, expanded learning opportunity programs, as specified in subparagraphs (B) and (C) of paragraph (9) of subdivision (b) of Section 46120 of the Education Code. schools. 
(i) Any school parenting program or adult education childcare program that satisfies both of the following:
(1) Is operated by a public school district or operated by an individual or organization pursuant to a contract with a public school district.
(2) Is not operated by an organization specified in Section 1596.793.
(j) Any child daycare program that operates only one day per week for no more than four hours on that one day.
(k) Any child daycare program that offers temporary childcare services to parents and that satisfies both of the following:
(1) The services are only provided to parents and guardians who are on the same premises as the site of the child daycare program.
(2) The child daycare program is not operated on the site of a ski facility, shopping mall, department store, or any other similar site identified by the department by regulation.
(l) Any program that provides activities for children of an instructional nature in a classroom-like setting and satisfies both of the following:
(1) Is operated only during periods of the year when students in kindergarten and grades 1 to 12, inclusive, are normally not in session in the public school district where the program is located due to regularly scheduled vacations.
(2) Offers any number of sessions during the period specified in paragraph (1) that when added together do not exceed a total of 30 days when only schoolage children are enrolled in the program or 15 days when children younger than schoolage are enrolled in the program.
(m) A program facility administered by the Department of Corrections and Rehabilitation that (1) houses both women and their children, and (2) is specifically designated for the purpose of providing substance abuse treatment and maintaining and strengthening the family unit pursuant to Chapter 4 (commencing with Section 3410) of Title 2 of Part 3 of the Penal Code, or Chapter 4.8 (commencing with Section 1174) of Title 7 of Part 2 of that code.
(n) Any crisis nursery, as defined in paragraph (17) of subdivision (a) of Section 1502.
(o) (1) Commencing with the adoption of emergency regulations pursuant to paragraph (3), or no later than July 1, 2019, whichever comes first, a California state preschool program operated by a local educational agency under contract with the State Department of Education and that operates in a school building, as defined by Section 17283 of the Education Code, that meets all of the following conditions:
(A) The program is operated in a local educational agency facility that meets the requirements of the Field Act, as specified in Article 3 (commencing with Section 17280) and Article 6 (commencing with Section 17365) of Chapter 3 of Part 10.5 of Division 1 of Title 1 of, and Article 7 (commencing with Section 81130) of Chapter 1 of Part 49 of Division 7 of Title 3 of, the Education Code.
(B) The local educational agency facility is constructed consistent with California Building Standards Code pursuant to Title 24 of the California Code of Regulations.
(C) The local educational agency facility meets the requirements for kindergarten classrooms in accordance with Chapter 13 (commencing with Section 14000) of Division 1 of Title 5 of the California Code of Regulations.
(D) The program meets all other requirements of California state preschool programs pursuant to Chapter 19 (commencing with Section 17906) of Division 1 of Title 5 of the California Code of Regulations.
(2) A California state preschool program exempt under this subdivision shall be considered licensed under Division 12 (commencing with Section 101151) of Title 22 of the California Code of Regulations for purposes of establishing a rating on an early learning quality rating and improvement system matrix pursuant to Section 8203.1 of the Education Code.
(3) (A) No later than October 1, 2017, the Legislative Analyst shall convene a stakeholder process for the purpose of ensuring state preschools operated by local educational agencies are maintaining all existing necessary health and safety requirements.
(B) The stakeholder process shall identify and make recommendations on any health and safety requirements currently required under Title 22 of the California Code of Regulations, but not included in Title 5 of the California Code of Regulations, the Field Act, Title 24 of the California Code of Regulations, the California Plumbing Code, the Education Code, or this code, including, but not limited to, all of the following:
(i) Adequate outdoor shade structures.
(ii) Access to age and developmentally appropriate bathroom and drinking water facilities.
(iii) Appropriate processes for parent notification and resolution of code and regulation violations.
(C) The stakeholder process participants shall include experts on early childhood education health and safety issues from local educational agency and nonlocal educational agency state preschool program providers, and representatives from the State Department of Education, State Department of Social Services, Department of Finance, and legislative staff.
(D) No later than March 15, 2018, the Legislative Analyst shall report to the appropriate fiscal and policy committees of the Legislature, the Department of Finance, and the State Department of Education on recommendations or observations as a result of the stakeholder process. These recommendations or observations shall consider the fiscal impact on the state. No sooner than 30 days after the report is provided, the State Department of Education shall commence a process to adopt emergency regulations pursuant to Section 11346.1 of the Government Code to satisfy the requirements of this paragraph. The adoption of emergency regulations shall be deemed an emergency and necessary for the immediate preservation of the public peace, health, safety, or general welfare.
(4) For purposes of this subdivision, the following terms have the following meanings:
(A) “California state preschool program” means any classroom that is funded, in whole or in part, by funds received pursuant to Section 8207 of the Education Code.
(B) “Local educational agency” means a school district, county office of education, or charter school.

SEC. 246.

 Section 1596.853 of the Health and Safety Code is amended to read:

1596.853.
 (a) Any person may request an inspection of any child daycare facility in accordance with the California Child Day Care Facilities Act by transmitting to the department notice of an alleged violation of applicable requirements prescribed by the statutes or regulations of this state. A complaint may be made either orally or in writing.
(b) The substance of the complaint shall be provided to the licensee no earlier than at the time of the inspection. Unless the complainant specifically requests otherwise, neither the substance of the complaint provided the licensee nor any copy of the complaint or any record published, released, or otherwise made available to the licensee shall disclose the name of any person mentioned in the complaint, except the name of any duly authorized officer, employee, or agent of the department conducting the investigation or inspection pursuant to this chapter.
(c) Upon receipt of a complaint, the department shall make a preliminary review and, unless the department determines that the complaint is willfully intended to harass a licensee or is without any reasonable basis, the department shall make an onsite inspection within 10 days after receiving the complaint, except where the visit would adversely affect the licensing investigation or the investigation of other agencies, including, but not limited to, law enforcement agencies. In either event, the complainant shall be promptly informed of the department’s proposed course of action.
If the department determines that the complaint is without a reasonable basis, then the complaint shall be marked confidential and shall not be disclosed to the public. The childcare provider shall be notified in writing within 30 days of the dismissal that the complaint has been dismissed.
(d) (1) The department shall notify a resource and referral program funded under Section 10217 of the Welfare and Institutions Code, as follows:
(A) Upon the issuance or denial of a license for a child daycare facility within the resource and referral program’s jurisdiction.
(B) Within one business day of a finding that physical or sexual abuse has occurred at a child daycare facility within the resource and referral program’s jurisdiction.
(C) Within two business days of the issuance of a temporary suspension order, or the revocation or placement on probation of a license for a child daycare facility within the resource and referral program’s jurisdiction.
(D) The department shall also notify the resource and referral program of the final resolution of any action specified in this paragraph.
(2) With the exception of parents seeking local daycare service, any other entity specified in subdivision (b) of Section 1596.86 may request that the department provide the notification described in paragraph (1).
(e) When the department substantiates an allegation that it deems to be serious in a facility funded pursuant to Chapter 1 (commencing with Section 10200) of Part 1.8 of Division 9 of the Welfare and Institutions Code or Chapter 2 (commencing with Section 8200) of Part 6 of Division 1 of Title 1 of the Education Code it shall notify the State Department of Education.

SEC. 247.

 Section 1596.855 of the Health and Safety Code is amended to read:

1596.855.
 (a)  Upon attendance at an orientation meeting, as described in Section 1596.845, an applicant shall be provided, without charge, a printed copy of all applicable regulations by the department, a copy of Section 1596.842, and a copy of the appeals procedure specified in subdivision (b) of Section 1596.842. The department shall inform applicants of the availability of a Spanish language version of these materials and shall provide it to the applicant upon request by the applicant.
(b)  The department shall mail, without charge, printed copies of all revisions of regulations to all resource and referral programs funded under Section 10217 of the Welfare and Institutions Code and to any association of childcare agencies which requests to receive revisions of regulations. Upon request, the department shall mail, without charge, a version of these regulations in Spanish, and may mail, without charge, a version of these regulations in other languages, as available.
(c)  The versions in Spanish and in other languages shall be provided as a convenience to the reader. In the event of a discrepancy between these versions and the English version, the English version shall prevail.

SEC. 248.

 Section 1596.859 of the Health and Safety Code is amended to read:

1596.859.
 (a)  (1) Each licensed child daycare facility shall make accessible to the public a copy of any licensing report or other public licensing document pertaining to the facility that documents a facility inspection, a substantiated complaint investigation, a conference with a local licensing agency management representative and the licensee in which issues of noncompliance are discussed, or a copy of an accusation indicating the department’s intent to revoke the facility’s license. An individual licensing report and other licensing documents shall not be required to be maintained beyond three years from the date of issuance, and shall not include any information that would not have been accessible to the public through the State Department of Social Services Community Care Licensing Division.
(2) (A)  Every childcare resource and referral program established pursuant to Chapter 2 (commencing with Section 10217) of Part 1.8 of Division 9 of the Welfare and Institutions Code and every alternative payment program established pursuant to Chapter 3 (commencing with Section 10225) of Part 1.8 of Division 9 of the Welfare and Institutions Code shall advise every person who requests a childcare referral of their right to the licensing information of a licensed child daycare facility required to be maintained at the facility pursuant to this section and to access any public files pertaining to the facility that are maintained by the State Department of Social Services Community Care Licensing Division.
(B) A written or oral advisement in substantially the following form, with the telephone number of the local licensing office included, will comply with the requirements of subparagraph (A):
“As a parent, you have the right to get information about any substantiated or unsubstantiated complaints about a childcare provider that you select for your child. That information is public and you can get it by calling the local licensing office. This telephone number is ____.”
(b) Within 30 days after the date specified by the department for a licensee to correct a deficiency, the department shall provide the licensee with a licensing report or other appropriate document verifying compliance or noncompliance. Notwithstanding any other provision of law, and with good cause, the department may provide the licensee with an alternate timeframe for providing the licensing report or other appropriate document verifying compliance or noncompliance. If the department provides the licensee with an alternate timeframe, it shall also provide the reasons for the alternate timeframe, in writing. The licensee shall make this documentation available to the public.

SEC. 249.

 Section 1596.86 of the Health and Safety Code is amended to read:

1596.86.
 (a)  The director shall annually publish and make available to interested persons a list or lists covering all licensed child daycare facilities, other than small family daycare childcare  homes, and the services for which each facility has been licensed or issued a special permit. The lists shall also specify the licensed capacity of the facility and whether it is licensed by the department or by another public agency.
(b)  (1)  To encourage the recruitment of small family daycare childcare  homes and protect their personal privacy, the department shall prevent the use of lists containing names, addresses, and other identifying information of facilities identified as small family daycare childcare  homes, except as necessary for administering the licensing program  program, facilitating the placement of children in these facilities,  and providing the names and addresses to resource and referral agencies funded by the department, food and nutrition programs funded by the department, alternative payment programs funded by the department, county welfare-to-work programs under Article 3.2 (commencing with Section 11320) of Chapter 2 of Part 3 of Division 9 of the Welfare and Institutions Code, family childcare organizations, provider organizations that have been determined to be provider organizations pursuant to subdivision (a) of Section 10422 of the Welfare and Institutions Code, the Department of Human Resources and the Public Employment Relations Board for the administration of Chapter 25 (commencing with Section 10420) of Part 1.8 of Division 9 of the Welfare and Institutions Code, or specialized health care service plans licensed under the Knox-Keene Health Care Service Plan Act of 1975, as contained in Chapter 2.2 (commencing with Section 1340), which provide employee assistance program services that include childcare referral services. Upon request, parents seeking local daycare services may receive the names and telephone numbers of local small family childcare providers. 
(2) Notwithstanding any other law, the department may disclose the license numbers, names, Zip Codes, and telephone numbers of small family daycare homes for purposes of facilitating the placement of children in small family daycare homes. The information specified in this paragraph may be provided to individuals and entities, including, but not limited to, parents, legal guardians, and caregivers seeking daycare services and consumer education internet websites available to the public.
(3) The department may require an individual or entity to maintain the confidentiality of any information provided pursuant to paragraph (1) or (2).
(c)  The department shall adopt regulations relating to the confidentiality of identifying  information provided pursuant to subdivision (b) on small family daycare childcare  homes. These regulations shall include procedures for updating lists or other information on small family daycare homes childcare providers  to ensure referral only to licensed family daycare childcare  homes in good standing with the department. The department may deny any individual or entity that violates the regulations adopted pursuant to this subdivision access  Any person or entity violating the regulations under this subdivision may be denied access by the department  to information on small family daycare childcare  homes and shall report these individuals or entities be reported by the department  to the appropriate funding or licensing agency. department. 

SEC. 250.

 Section 1596.8661 of the Health and Safety Code is amended to read:

1596.8661.
 (a) For purposes of the training required pursuant to paragraph (4) of subdivision (a) of Section 1596.798, pediatric first aid training pursuant to Section 1596.866 shall include a component of training in the administration of inhaled medication described in paragraph (4) of subdivision (a) of Section 1596.798.
(b) The Emergency Medical Services Authority shall establish, consistent with Section 1797.191, minimum standards for a component of pediatric first aid training that satisfies the requirements of paragraph (4) of subdivision (a) of Section 1596.798. For purposes of this subdivision, the Emergency Medical Services Authority is encouraged to consult with organizations and providers with expertise in administering inhaled medication and nebulizer care, including, but not limited to, the American Lung Association, respiratory therapists, and others.
(c) For purposes of the training required pursuant to clause (ii) of subparagraph (C) of paragraph (2) of subdivision (a) of Section 1596.866, instruction in childhood nutrition shall be at least one hour in length and shall include content on age-appropriate meal patterns based on the most current Dietary Guidelines for Americans. In order to increase childcare providers’ capacity to serve healthy foods at a lower cost, the training shall contain information about reimbursement rates for the United States Department of Agriculture’s Child and Adult Care Food Program (CACFP) (7 C.F.R. 226.20), and shall direct childcare providers to the CACFP Unit of the Nutrition Services Division of the department for detailed information on CACFP eligibility and enrollment.
(d) Notwithstanding the rulemaking provisions of the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code), the Emergency Medical Services Authority may, through bulletin or similar instructions from the director until regulations are adopted, establish standards for the training in childhood nutrition required pursuant to clause (ii) of subparagraph (C) of paragraph (2) of subdivision (a) of Section 1596.866 and for the training in lead poisoning required pursuant to clause (i) of subparagraph (C) of paragraph (2) of subdivision (a) of Section 1596.866.

SEC. 251.

 Section 1596.87 of the Health and Safety Code is amended to read:

1596.87.
 (a) The department shall institute a staff development and training program within the organizational structure to develop among staff the knowledge, understanding of children and childcare, and regulatory administration necessary to successfully carry out this act. Specifically, the department shall do all of the following:
(1) Provide staff with 36 hours of training per year that reflect the unique needs of children. The training shall include training relating to regulation administration, including communication skills, writing skills, and human relations skills.
(2) Find ways to encourage applications from individuals with childcare provider experience or educational backgrounds applicable to the provision of childcare.
(3) Provide new staff with comprehensive training within the first six months of employment. This training shall, at a minimum, include the following core areas: administrative action process, client populations, conducting facility visits, cultural awareness, documentation skills, facility operations, human relation skills, interviewing techniques, investigation processes, and regulation administration.
(4) This program shall also provide new staff who have earned fewer than 16 semester units in child development or early childhood education from an accredited college at least 40 hours of preservice training in child development or early childhood education.
(b) Submit for approval to the advisory committee established in Section 10320 of the Welfare and Institutions Code a plan for meeting the provisions of paragraphs (1) and (3) of subdivision (a).

SEC. 252.

 Section 1596.8716 of the Health and Safety Code is amended to read:

1596.8716.
 (a)  For licensing purposes, employees of a childcare and development program operated by a school district, county office of education, or community college under contract with the department pursuant to Chapter 1 (commencing with Section 10200) of Part 1.7 of Division 9 of the Welfare and Institutions Code or with the State Department of Education pursuant to Chapter 2 (commencing with Section 8200) of Part 6 of Division 1 of Title 1 of the Education Code who have received a physical examination as a condition of employment with the district or office are not required to have a health screening as required by Section 101216 of Title 22 of the California Code of Regulations.
(b)  For licensing purposes, a school principal of a public school that operates a childcare and development program under contract with the State Department of Education pursuant to Article 2 (commencing with Section 8207) of Chapter 2 of Part 6 of Division 1 of Title 1 of the Education Code shall be deemed qualified to be a childcare center director pursuant to Section 101315 of Title 22 of the California Code of Regulations only when the program is located on the campus of an operating public school, with staff who are employees of the public school.

SEC. 253.

 Section 1596.873 of the Health and Safety Code is amended to read:

1596.873.
 The Early Childhood Policy Council established pursuant to Section 10320 of the Welfare and Institutions Code shall perform all of the following functions with regard to this act:
(a)  Assist the department in developing and reviewing guidelines for the administration of this act.
(b)  Review the implementation of this act.
(c) Advise the director regarding regulations, policy, and administrative practices pertaining to the licensing of child daycare facilities.

SEC. 254.

 Section 1596.890 of the Health and Safety Code is amended to read:

1596.890.
 (a)  Any person who willfully or repeatedly violates any provision of this chapter, or any rule or regulation promulgated under this chapter is guilty of a misdemeanor. Upon conviction thereof, such a person shall be punished by a fine not to exceed one thousand dollars ($1,000) or by imprisonment in the county jail for a period not to exceed 180 days, or by both the fine and imprisonment. The operation of a child daycare facility without a license issued pursuant to this chapter shall make the owner or operator, or both, subject to a summons to appear in court.
(b)  Notwithstanding subdivision (a) or any other provision of law, the sole sanction for failure of a resources and referral agency or an alternative payment program to comply with paragraph (2) of subdivision (a) of Section 1596.859 shall be set forth in the “Funding Terms and Conditions” agreement between the affected agency or program and the department.

SEC. 255.

 Section 1596.893c of the Health and Safety Code is amended to read:

1596.893c.
 (a) The department shall consider, in determining whether to issue a citation or impose a civil penalty under any provision of this chapter to a child daycare facility that contracts with the department or the  State Department of Education, whether the child daycare facility is in the process of complying with Section 8489.1 8222  of the Education Code or Section 10491.1 of the Welfare and Institutions  Code.
(b) A child daycare facility may appeal a citation or civil penalty issued by the department that is related to the behavior of a child, including the actions of the facility or its staff related to the behavior of a child, if the facility is in the process of complying with Section 8489.1 of the Education Code or Section 10491.1 of the Welfare and Institutions Code. The department shall withdraw all citations or civil penalties upon the presentation of evidence by the facility that it was in the process of complying with Section 8489.1  This section shall apply only to a California state preschool program described in Article 2 (commencing with Section 8207) of Chapter 2 of Part 6 of Division 1 of Title 1  of the Education Code or Section 10491.1 of the Welfare and Institutions  Code.

SEC. 256.

 Section 1596.895 of the Health and Safety Code is amended to read:

1596.895.
 (a)  The department shall notify resource and referral agencies funded pursuant to Section 10217 of the Welfare and Institutions Code of any priority one violation or any allegation of a priority one violation affecting the health and safety of children that is within the geographic area served by the agency. Resource and referral agencies shall use this information when deciding whether to make a referral to the licensee and shall maintain the confidentiality of information provided to them pursuant to this section.
(b)  The Child Care Regulation Section shall notify these resource and referral agencies of the department’s actions regarding these allegations of priority one violations within 30 days. The Child Care Regulation Section shall notify these resource and referral agencies of the department’s actions regarding these allegations of priority one violations within 10 days after the allegations have been substantiated by the department.
(c)  “Priority one violation” is defined to include sexual assault, physical abuse, ritualistic abuse, or suspicious deaths, if any of the following apply:
(1)  The victim is a child in care and the suspect is the facility operator, the licensee, an employee of the facility, or is yet to be identified as any of the individuals specified in this paragraph.
(2)  The facility is operating and the suspect has access to the victim or potential victim.
(3)  The complaint is against an unlicensed facility and either a temporary suspension order is in effect or the license has been revoked.
(d)  “Allegation of a priority one violation” is defined to include any complaints of priority one violations pursuant to subdivision (c).
(e)  The department shall implement this section only to the extent funds are available in accordance with Section 18285.5 of the Welfare and Institutions Code.

SEC. 257.

 Section 1597.36 of the Health and Safety Code is amended to read:

1597.36.
 The department shall provide written documentation to providers of the need for repairs, renovations, or additions when requested for an application for a loan guarantee pursuant to subdivision (d) of Section 10305.5 of the Welfare and Institutions Code whenever the repairs, renovations, or additions are required by the department in order for the licensee to maintain or obtain a license for more than six children.

SEC. 258.

 Section 10203 of the Welfare and Institutions Code is amended to read:

10203.
 (a) It is the intent of the Legislature to launch a phased approach to achieving the goals of the state’s Master Plan for Early Learning and Care, uniting child care programs where they can best be integrated with other child and family focused benefits, programs, and services, and support child care providers and programs while maintaining vital connections to preschool, transitional kindergarten, and K-12 education.
(b) To effectuate this transition, effective July 1, 2021, responsibility for the following programs, responsibilities, services, and systems are hereby transferred from the State Department of Education and the Superintendent of Public Instruction to the State Department of Social Services:
(1) Alternative payment programs pursuant to Chapter 3 (commencing with Section 10225) of Part 1.8.
(2)  Migrant alternative payment programs pursuant to Chapter 3 (commencing with Section 10225) of Part 1.8.
(3) CalWORKs Stage 2 child care pursuant to Chapter 21 (commencing with Section 10370) of Part 1.8.
(4) CalWORKs Stage 3 child care pursuant to Chapter 21 (commencing with Section 10370) of Part 1.8.
(5) General child care and development programs pursuant to Chapter 7 (commencing with Section 10240) of Part 1.8.
(6) Migrant child care and development programs pursuant to Chapter 6 (commencing with Section 10235) Part 1.8.
(7) Child care and development services for children with severe disabilities pursuant to Chapter 9 (commencing with Section 10260) of Part 1.8.
(8) The Child and Adult Care Food Program implemented pursuant to Section 1766 of Title 42 of the United States Code.
(9) Child care and development facilities capital outlay pursuant to Chapter 30 (commencing with Section 10470) of Part 1.8.
(10) Responsibility as the lead agency for administration of the Child Care and Development Fund, as defined in Section 98.2 of Title 45 of the Code of Federal Regulations, and as set forth in Sections 10211 to 10212.5, inclusive.
(11) Responsibility as the lead agency for the Child Care and Development Fund State Plan Early Learning and Care Infrastructure Grant Program pursuant to former Section 8280 of the Education Code.
(12) The Early Learning and Care Workforce Development Grants Program pursuant to Section 10311.
(13) The California Head Start State Collaboration Office funded by collaboration grants awarded pursuant to Section 9837b of Title 42 of the United States Code.
(14) The Early Head Start-Child Care Partnerships Grant from the United States Department of Health and Human Services.
(15) Resource and referral agencies pursuant to Chapter 2 (commencing with Section 10217) of Part 1.8.
(16) Local child care and development planning councils pursuant to Chapter 31 (commencing with Section 10480) of Part 1.8.
(17) The California Child Care Initiative Project pursuant to Section 10223.
(18) Other child care quality improvement projects.
(19) Any memoranda of understanding and partnerships related to the programs, services, and systems listed in this subdivision.
(20) The Child Development Management Information System and other related data systems as they pertain to the programs, services, and systems listed in this subdivision.

SEC. 259.

 Section 10205 of the Welfare and Institutions Code is amended to read:

10205.
 (a) Commencing July 1, 2021, the department succeeds to, and is vested with, all the powers, functions, duties, responsibilities, obligations, liabilities, and jurisdiction of the programs, responsibilities, services, and systems listed in subdivision (b) of Section 10203.
(b) The department may enter into memoranda of understanding or interagency agreements or contracts with the California Health and Human Services Agency, its other departments and offices, the State Department of Education, and any other state agency, department, or office, as necessary to implement this part.
(c) Unless the context clearly requires otherwise, any reference to the State Department of Education or the Superintendent of Public Instruction in any regulation, contract, or in any other code, with respect to any of the programs, responsibilities, services, or systems listed in subdivision (b) of Section 10203, is a reference to the State Department of Social Services.
(d) Without limiting any other powers or duties, the department shall ensure compliance with the terms of any state plans, memoranda of understanding, administrative orders, interagency agreements, contracts, assurances, single state agency obligations, federal statutes and regulations, and any other form of agreement or obligation that vital government activities rely upon or are a condition to the continued receipt by the department of state or federal funds or services.
(e) All existing regulations relating to programs, responsibilities, services, and systems listed in subdivision (b) of Section 10203 that have been adopted by the State Department of Education on or before June 30, 2021, are expressly continued in force, unless they conflict with the act that added this part. Any statute, law, rule, or regulation relating to the programs, responsibilities, services, and systems listed in subdivision (b) of Section 10203 that are in force on June 30, 2020, or that may hereafter be enacted or adopted with reference to this part, shall apply to the department.
(f) A contract, lease, license, state or federal grant, memorandum of understanding, or any other agreement relating to the programs, responsibilities, services, and systems listed in subdivision (b) of Section 10203 to which the State Department of Education is a party is not void or voidable by reason of the act that added this part, but are continued in full force and effect, with the department assuming all of the rights, obligations, and duties of the State Department of Education. The assumption by the department does not in any way affect the rights of the parties to the contract, lease, license, state or federal grant, memorandum of understanding, or agreement.
(g) Any legal action concerning the duties, responsibilities, obligations, liabilities, and functions described in this chapter shall not abate, and shall continue in the name of the department. The substitution of the department for the State Department of Education or the Superintendent of Public Instruction does not affect the rights of the parties to the action.
(h) All financial and accounting records, documents, records, and property relating to programs, responsibilities, services, and systems listed in subdivision (b) of Section 10203 shall be transferred to the department by the State Department of Education. The format and timing of this transfer shall be mutually agreed upon by the State Department of Social Services and the State Department of Education and the Superintendent of Public Instruction, and shall not require formal agreement or approval by any other entity.
(i) On or before July 1, 2021, the Governor shall establish the position of Deputy Director of Child Care and Development within the department, as an exempt position, to be appointed by the Governor, subject to confirmation by the Senate, and who holds office at the pleasure of the Governor.
(j) On or before March 31, 2021, the department shall submit to the appropriate budget and policy committees of the Legislature, the Department of Finance, and the Early Childhood Policy Council, a plan that describes how the department will achieve the intent expressed in Section 10203, including a description of activities undertaken by the department up until that date, and specifying all of the following:
(1) How the department intends to make child care programs more integrated.
(2) How the department plans to maintain existing connections or enhance connections to California state preschool programs, transitional kindergarten, and elementary and secondary education.
(3) An estimate of the ongoing cost of the State Department of Social Services for administering child care programs. A description of the number of positions that will move to the State Department of Social Services from the State Department of Education and the number of additional positions the State Department of Social Services will need.
(4) How this shift results in better services for children and families, including how this shift will ensure families have the most comprehensive information about their choices in comprehensive supports for their families, including child care.
(5) How the department plans to prevent administrative duplication and regulatory conflict for providers that have contracts for both general child care and development programs and California state preschool programs.
(6) How the department plans to maintain the existing provider flexibility to transfer funds across contracts for both general child care and development programs and California state preschool programs.
(7) How the department plans to ensure quality projects support state-supported child care in all settings, including California state preschool programs.
(8) How the California Head Start State Collaboration Office will continue to engage with California state preschool program providers and school districts.
(9) How parents will be provided enhanced information about making an informed child care choice that best meets their child’s and family’s needs, from the full spectrum of quality child care available.
(10) How a cradle-to-career, interagency data system will provide improved state-level reporting, support the goals of the Master Plan for Early Learning and Care, and support the achievement of paragraph (9).
(11) Further plans to align activities with recommendations from the Master Plan for Early Learning and Care regarding child care.
(k) From October 1, 2020, to December 31, 2024, inclusive, the department shall submit to the appropriate budget and policy committees of the Legislature, the Department of Finance, and the Early Childhood Policy Council a quarterly report that describes how the department is making progress on the transition required by this chapter, and how the department is furthering the intent of this transition.

SEC. 261.

 Section 11323.2 of the Welfare and Institutions Code is amended to read:

11323.2.
 (a) Necessary supportive services shall be offered and available to every participant to enable them to participate in a program activity or to accept or maintain employment. Necessary supportive services shall also be offered and available to every individual who is not required to participate, but chooses to participate voluntarily, to allow them to participate in a program activity or to accept or maintain employment. A participant who is required to participate and who does not receive necessary supportive services shall have good cause for not participating under subdivision (f) of Section 11320.3. Supportive services shall be listed in the welfare-to-work plan or other agreement entered into between the county and participant pursuant to this article, supportive services shall include all of the following:
(1) Child care.
(A) Paid child care shall be available to every participant with a dependent child in the household who needs paid child care if the child is 12 years of age or under, or requires child care or supervision due to a physical, mental, or developmental disability or other similar condition as verified by the county welfare department, or who is under court supervision. A county welfare department may verify the need for child care or supervision for a child over 12 years of age from an individualized education plan or a statement from a qualified professional that the child is a child with exceptional needs, as defined in Section 10213.5. A sanctioned participant shall have access to child care pursuant to this section if the participant has indicated an intent to engage in a program activity or employment, but has not yet participated.
(B) First-stage child care, as described in Chapter 21 (commencing with Section 10370) of Part 1.8, shall be full time, unless the participant determines that part-time care better meets the family’s needs. Upon establishing initial or ongoing eligibility for first-stage child care services under this chapter, a family shall be considered to meet all eligibility and need requirements and be authorized for not less than 12 months, or until the participant is transferred to the second stage of child care. This shall apply to every participant who indicates a need for child care in order to engage in a program activity or employment. A participant may, at any time, indicate a new or increased need for child care and the information shall be used, as applicable, to authorize child care in accordance with this subparagraph or increase the family’s services.
(C) Necessary child care services shall be available to every former recipient for up to two years, pursuant to Chapter 21 (commencing with Section 10370) of Part 1.8. Beginning January 1, 2021, or the date that automation changes occur, as required for implementation, in the Statewide Automated Welfare System, whichever date is later, in the 18th month following the date of last receipt of aid, the county shall send a notice, via mail to the last known address, text message, or email, to a former recipient who is not currently receiving second or third stage child care informing them that their eligibility for stage-two child care will expire by the end of the 24th month following their last receipt of aid, and how to obtain stage-two child care services. The department shall issue an all-county letter or similar directive by November 1, 2019, to implement this subparagraph, until regulations are adopted.
(D) A child in foster care receiving benefits under Title IV-E of the federal Social Security Act (42 U.S.C. Sec. 670 et seq.), or a child who would become a dependent child except for the receipt of federal Supplemental Security Income benefits pursuant to Title XVI of the federal Social Security Act (42 U.S.C. Sec. 1381 et seq.), or a child who is not a member of the assistance unit but for whom the recipient is responsible for providing support, shall be deemed to be a dependent child for the purposes of this paragraph.
(E) The provision of care and payment rates under this paragraph shall be governed by Chapter 21 (commencing with Section 10370) of Part 1.8. Parent fees shall be governed by Sections 10271 and 10291.
(F) For purposes of subparagraphs (A) and (B), a participant includes an individual who is not required to participate, and expresses an intent to participate voluntarily, or a sanctioned participant who indicates an intent to engage in any program activity, as defined in subdivision (c), or employment. After securing child care services, to document their commitment to participate, a participant shall sign a welfare-to-work plan or a curing plan, whichever is appropriate, or other agreement that may be developed and approved for use on a statewide basis by the department.
(2) Diaper costs.
(A) On and after April 1, 2018, a participant who is participating in a welfare-to-work plan shall be eligible for thirty dollars ($30) per month to assist with diaper costs for each child who is under 36 months of age.
(B) The department shall adopt regulations by January 1, 2020, to implement this paragraph. Notwithstanding the rulemaking provisions of the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code), the department shall implement this paragraph through all-county letters until regulations are adopted.
(3) Transportation costs, which shall be governed by regional market rates as determined in accordance with regulations established by the department.
(4) Ancillary expenses, which shall include the cost of books, tools, clothing specifically required for the job, fees, and other necessary costs.
(5) Personal counseling. A participant who has personal or family problems that would affect the outcome of the welfare-to-work plan entered into pursuant to this article shall, to the extent available, receive necessary counseling and related supportive services, to help the participant and the participant’s family adjust to the participant’s job or training assignment.
(b) If provided in a county plan, the county may continue to provide case management and supportive services under this section to former participants who become employed. The county may provide these services for up to the first 12 months of employment to the extent they are not available from other sources and are needed for the individual to retain the employment.
(c) For the purposes of paragraph (1) of subdivision (a), “program activity” includes, but is not limited to, any welfare-to-work activity, orientation, appraisal, assessment, job search, job club, domestic violence services, court appearances, housing searches and classes, homeless support programs, shelter participation requirements, eviction proceedings, mental health services, including therapy or personal counseling, home visiting, drug and substance abuse services, parenting classes, and medical or education-related appointments for the participant or their dependents.

SEC. 262.

 Section 3 of Chapter 6 of the Statutes of 2021 is amended to read:

SEC. Sec.  3.
 (a) The Legislature hereby finds and declares the federal Consolidated Appropriations Act, 2021 and Coronavirus Response and Relief Supplemental Appropriations (CRRSA) Act of 2021 (Public Law 116-260) awarded the state nine hundred sixty-four million three hundred twenty-four thousand four hundred eighty-three dollars ($964,324,483) in supplemental Child Care and Development Fund program funding to address the needs of childcare providers, including state preschool programs, and families resulting from the coronavirus disease 2019 (COVID-19) pandemic.
(b) In response to the COVID-19 pandemic, the Legislature hereby appropriates the sum of four three  hundred two million dollars ($402,000,000) in CRRSA funding to  sixty-five million three hundred twenty thousand dollars ($365,320,000) in federal funds, in addition to the twenty million dollars ($20,000,000) previously allocated for this purpose in the Budget Act of 2020 (Ch. 8, Stats. 2020), to  provide subsidized childcare and preschool providers with COVID-19 pandemic-related assistance.
(c) Of the four three  hundred two million dollars ($402,000,000) in CRRSA funding, sixty-five million three hundred twenty thousand dollars ($365,320,000) in federal funds,  the Legislature hereby allocates the funding as follows:
(1) Two hundred forty-four  million twenty thousand  dollars ($244,000,000) ($200,020,000)  shall be allocated to provide a flat-rate one-time stipend amount of five hundred twenty-five dollars ($525) per child enrolled in a subsidized childcare or a state preschool program pursuant to subparagraph (A). The state shall provide the flat-rate one-time stipend amount for all childcare providers and state preschool programs serving children pursuant to this paragraph based on the number of subsidized children enrolled. This flat-rate one-time stipend shall be issued based on program data for November 2020 enrollment. A stipend may be used to support subsidized childcare providers and state preschool programs with COVID-19 pandemic relief, and, in the case of decreased enrollment or closures, to ensure that childcare providers and state preschool programs are able to remain open or reopen.
(A) The flat-rate one-time stipend shall be payable to subsidized childcare providers and state preschool programs operating or serving programs pursuant to Article 3 (commencing with Section 8220) of, Article 6 (commencing with Section 8230) of, Article 7 (commencing with Section 8235), Article 8 (commencing with Section 8240) of, Article 8.5 (commencing with Section 8245) of, Article 9 (commencing with Section 8250) of, or Article 15.5 (commencing with Section 8350) of, Chapter 2 of Part 6 of Division 1 of Title 1 of the Education Code, as these provisions read on February 3, 2021.
(B) Of the two hundred forty-four  million twenty thousand  dollars ($244,000,000), ($200,020,000),  up to sixteen million dollars ($16,000,000) shall be allocated to the State Department of Social Services to provide a flat-rate one-time stipend amount of five hundred twenty-five ($525) per each child enrolled in the California Work Opportunities and Responsibility to Kids (CalWORKs) Stage 1 program pursuant to Article 15.5 (commencing with Section 8350) of Chapter 2 of Part 6 of Division 1 of Title 1 of the Education Code, as these provisions read on February 3, 2021. If additional funding is needed based on program data for November 2020 enrollment, a budget revision shall be submitted by the State Department of Education and the State Department of Social Services to the Controller to shift the appropriate funding amounts identified for CalWORKs Stage 1 providers to or from the State Department of Social Services for distribution.
(C) In addition to the flat-rate one-time stipend amount of five hundred twenty-five dollars ($525) per child enrolled, the Superintendent of Public Instruction and the State Department of Social Services shall provide alternative payment and direct contract programs with a 5 percent administrative fee for distributing stipends to these providers.
(D) The Superintendent of Public Instruction and the State Department of Social Services shall allocate stipends for distribution to childcare providers and the state preschool programs.
(E) The State Department of Education and the State Department of Social Services shall exchange any essential data necessary to issue stipend payments to childcare providers.
(F) The state may designate another agency or agencies to distribute these funds to childcare providers. Contracts or grants awarded pursuant to this section shall be exempt from the personal services contracting requirements of Article 4 (commencing with Section 19130) of Chapter 5 of Part 2 of Division 5 of Title 2 of the Government Code. Contracts or grants awarded pursuant to this section shall be exempt from the Public Contract Code and the State Contracting Manual, and shall not be subject to the approval of the Department of General Services.
(G) The funding described under this paragraph is subject to the federal usage limitations and federal and state program eligibility requirements.
(2) (A) Seventy-six million dollars ($76,000,000) in CRRSA funding Eighty-three million three hundred thousand dollars ($83,300,000) in federal funds  shall be allocated to existing state-subsidized alternative payment programs, including, but not limited to, alternative payment programs for migrant childcare and development programs pursuant to Article 6 (commencing with Section 8230) of Chapter 2 of Part 6 of Division 1 of Title 1 of the Education Code, to extend childcare services for essential workers, at-risk children, and children with disabilities or special health care needs whose individualized education programs or individualized family service plans include early learning and care services and who accessed childcare services pursuant to Senate Bill 89 (Chapter 2 of the Statutes of 2020) and were unable to get ongoing childcare services through the additional funds provided in Schedule (3), and described in Provision (7), of Item 6100-194-0890 of Section 2.00 of the Budget Act of 2020, through June 30, 2022, inclusive.
(B) If an alternative payment program projects that it may have unspent funds after childcare services are provided pursuant to paragraph (1), the alternative payment program may utilize the funds to enroll additional children in emergency childcare pursuant to paragraph (3).
(3) (A) Eighty million dollars ($80,000,000) in CRRSA funding federal funds  shall be allocated to provide additional emergency vouchers for children of essential workers, at-risk children, and children with disabilities or special health care needs whose individualized education plan or individualized family service plans include early learning and care and who are eligible for services under Chapter 2 (commencing with Section 8200) of Part 6 of Division 1 of Title 1 of the Education Code, through June 30, 2022, inclusive.
(i) Funding shall be divided between the California Alternative Payment Program pursuant to Article 3 (commencing with Section 8220) of Chapter 2 of Part 6 of Division 1 of Title 1 of the Education Code and the Migrant Alternative Payment Program, pursuant to Article 6 (commencing with Section 8230) of Chapter 2 of Part 6 of Division 1 of Title 1 of the Education Code, based on the ratio of the Migrant Alternative Payment Program contract amounts to the sum of the California Alternative Payment Program contracts and Migrant Alternative Payment Program contracts.
(ii) Funding for alternative payment programs pursuant to Article 3 (commencing with Section 8220) of Chapter 2 of Part 6 of Division 1 of Title 1 of the Education Code shall be distributed as a percent of the total based on allocated funds pursuant to Section 2 of Senate Bill 89 (Chapter 2 of the Statutes of 2020).
(B) Guidance for enrolling additional children shall be as similar as possible to the guidance issued for children receiving services pursuant to Section 2 of Senate Bill 89 (Chapter 2 of the Statutes of 2020).
(4) One million seven hundred fifty thousand dollars ($1,750,000) in CRRSA funding federal funds  shall be allocated to the State Department of Education for administrative costs.
(5) Two hundred fifty thousand dollars ($250,000) in CRRSA funding federal funds  shall be allocated to the State Department of Social Services for administrative costs.
(d) (1) A state-subsidized childcare provider operating or serving alternative payment programs pursuant to Article 3 (commencing with Section 8220) of, Article 6 (commencing with Section 8230) of, Article 8.5 (commencing with Section 8245) of, or Article 15.5 (commencing with Section 8350) of, Chapter 2 of Part 6 of Division 1 of Title 1 of the Education Code, as these provisions read on February 3, 2021, shall be eligible for an additional 16 paid nonoperational days when the provider is closed due to the COVID-19 pandemic emergency.
(2) These 16 paid nonoperational days shall be in addition to the current 14 paid nonoperational days for COVID-19 pandemic-related closures allowable pursuant to clause (i) of subparagraph (C) of paragraph (1) of subdivision (d) of Section 60 of Senate Bill 820 (Chapter 110 of the Statutes of 2020), and the current 10 paid nonoperational days allowable by paragraph (2) of subdivision (b) of Section 18076.2 of Title 5 of the California Code of Regulations, between September 1, 2020, and June 30, 2021.
(3) An alternative payment program, a migrant alternative payment program, a family childcare home education network, and a county welfare department administering a subsidized childcare program pursuant to paragraph (1) shall track the usage of paid nonoperational days and associated costs due to the COVID-19 pandemic emergency and short-term childcare to eligible children, pursuant to this subdivision, and report monthly on usage to the State Department of Education and the State Department of Social Services. The use of nonoperational days and associated costs reported to the State Department of Education shall be used to determine reimbursements, as described in this subdivision.
(4) The State Department of Education shall issue guidance to family childcare home education network programs operating pursuant to Article 8.5 (commencing with Section 8245) of Chapter 2 of Part 6 of Division 1 of Title 1 of the Education Code, as these provisions read on February 3, 2021. This guidance shall direct family childcare home education network programs to use the additional 16 nonoperational days for COVID-19 related closures not reimbursed by subdivision (f) of Section 8209 of the Education Code.
(e) The funding described in this section shall be subject to federal usage limitations and federal and state program eligibility requirements.
(f) (1) The Legislature finds and declares that the purpose of paragraph (1) of subdivision (c) and paragraph (1) of subdivision (d), with the exception of the California state preschool program, is to approve an agreement entered into by the Governor and Child Care Providers United - California pursuant to Section 8435.5 of the Education Code.
(2) The provisions of the agreement prepared pursuant to Section 8435.5 of the Education Code and entered into by the Governor and Child Care Providers United - California, dated February 5, 2021, that require the expenditure of funds or legislative action to permit their implementation, are hereby approved by the Legislature for the purposes of subdivision (b) of Section 8435.5 of the Education Code.
(3) The provisions of the agreement approved in paragraph (2) that require the expenditure of funds shall not take effect unless funds for these provisions are specifically appropriated by the Legislature. If funds for these provisions are not specifically appropriated by the Legislature, either the Governor or Child Care Providers United - California may reopen negotiations on all or part of the agreement.
(g) For purposes of this section, the following definitions apply:
(1) “At-risk children” means children identified as any of the following:
(A) Those receiving child protective services.
(B) Those at risk of abuse, neglect, or exploitation.
(C) Those who are eligible through the Emergency Child Care Bridge Program for Foster Children as established pursuant to Section 11461.6 of the Welfare and Institutions Code.
(D) Those experiencing homelessness as defined in subdivision (ak) of Section 8208 of the Education Code.
(E) Domestic violence survivors.
(2) “Essential worker” has the same meaning as “essential critical infrastructure worker” pursuant to Executive Order No. N-45-20.
(3) “State” means the State Department of Education, the State Department of Social Services, and the Department of Finance.
SEC. 263.
 (a) In response to the COVID-19 pandemic, the Legislature hereby makes available the sum of five hundred seventy-nine million dollars ($579,000,000) to provide subsidized child care, state preschool, and all licensed child daycare facilities with COVID-19 pandemic-related assistance. Of the five hundred seventy-nine million dollars ($579,000,000), five hundred nineteen million ($519,000,000) is allocated from the funds described in subdivision (d) of Provision 5 of Item 6100-149-0890 of the Budget Act of 2021 (Ch. 21, Stats. 2021), as amended by Senate Bill 129 of the 2021–22 Regular Session, and sixty million dollars ($60,000,000) in federal funds is hereby appropriated to the State Department of Education. The State Department of Education shall transfer five hundred twenty-nine million dollars ($529,000,000) of those funds to the State Department of Social Services to administer the activities described in this section.
(b) Of the five hundred seventy-nine million dollars ($579,000,000), the Legislature hereby allocates the funding as follows:
(1) Two hundred five million five hundred forty thousand dollars ($205,540,000) shall be allocated to the State Department of Social Services and the State Department of Education to provide a flat-rate one-time stipend amount of six hundred dollars ($600) per child enrolled in a subsidized child care or a state preschool program pursuant to subparagraph (A). The state shall provide the flat-rate one-time stipend amount for all child care providers and state preschool programs serving children described in this paragraph based on the number of subsidized children enrolled. Except as otherwise described in this paragraph, this flat-rate one-time stipend shall be issued based on program data for March 2021 enrollment only. For seasonal Migrant Child Care programs that operate pursuant to Article 6 (commencing with Section 8230) of Chapter 2 of Part 6 of Division 1 of Title 1 of the Education Code, and that did not operate in March 2021, stipends shall be based on the most recent prior month of operation. A stipend may be used to support subsidized child care providers and state preschool programs with COVID-19 pandemic relief, and, in the case of decreased enrollment or closures, to support child care providers and state preschool programs in remaining open or reopening.
(A) The flat-rate one-time stipend shall be payable to subsidized child care providers and state preschool programs operating or serving programs pursuant to Article 3 (commencing with Section 8220) of, Article 6 (commencing with Section 8230) of, Article 7 (commencing with Section 8235), Article 8 (commencing with Section 8240) of, Article 8.5 (commencing with Section 8245) of, Article 9 (commencing with Section 8250) of, or Article 15.5 (commencing with Section 8350) of, Chapter 2 of Part 6 of Division 1 of Title 1 of the Education Code, or Article 6 (commencing with Section 11461.6) of Chapter 2 of Part 3 of Division 9 of the Welfare and Institutions Code, as those provisions read on February 3, 2021.
(B) In addition to the flat-rate one-time stipend amount of six hundred dollars ($600) per child enrolled, the Superintendent of Public Instruction and the State Department of Social Services shall provide state preschool programs, county welfare departments, alternative payment and direct contract programs distributing stipends to these providers with a 5 percent administrative fee.
(C) The State Department of Education shall allocate stipends for distribution to the state preschool programs and the State Department of Social Services shall allocate stipends for distributions to child care providers.
(D) The State Department of Education and the State Department of Social Services shall exchange any essential data necessary to issue stipend payments to child care providers.
(E) The State Department of Education and the State Department of Social Services may designate another agency or agencies to distribute these funds to child care providers.
(F) Of the two hundred five million five hundred forty thousand dollars ($205,540,000), the following shall be allocated for administrative costs related to the implementation of this paragraph and subparagraph (A) of paragraph (2):
(i) One million seven hundred fifty thousand dollars ($1,750,000) to the State Department of Social Services.
(ii) Two hundred fifty thousand dollars ($250,000) to the State Department of Education.
(2) (A) One hundred seventy-six million eight hundred sixty thousand dollars ($176,860,000) shall be allocated to provide a flat-rate one-time stipend to all licensed child daycare facilities in the state, including the temporarily closed facilities named on the “CCP COVID19 Facility Closures” report, who have a child day care facility license on June 25, 2021, subject to review for any facilities with a pending administrative action for license revocation that subsequently results in the permanent closure of the facility. Stipend amounts shall be provided based on the facility type and licensed capacity, as follows:
(i) Three thousand five hundred dollars ($3,500) per family daycare home.
(ii) Three thousand five hundred dollars ($3,500) per daycare center with a maximum licensed capacity of 14 children or fewer.
(iii) Four thousand dollars ($4,000) per daycare center with a maximum licensed capacity of 15 to 24, inclusive, children.
(iv) Five thousand dollars ($5,000) per daycare center with a maximum licensed capacity of 25 and 60, inclusive, children.
(v) Six thousand five hundred dollars ($6,500) per day care center with a licensed capacity of more than 60 children.
(B) Stipends shall be used to support COVID-19 pandemic-related relief, including, but not limited to, support for decreased enrollment, increased costs associated with distance learning, increased costs due to cleaning and sanitization, and other activities necessary to maintain or resume the operation of programs, including for fixed costs and increased operating expenses due to the COVID-19 pandemic. The intent and expectation is that licensees share a portion of the stipends directly with their staff in the form of bonuses or incentive pay.
(C) The State Department of Social Services shall distribute stipends to licensed child day care facilities.
(D) The State Department of Social Services may designate another agency or agencies to distribute these funds to licensed child day care facilities.
(3) Sixty million dollars ($60,000,000) in one-time funding shall be allocated to reimburse child care and preschool contractors for family fees that are waived pursuant to subparagraph (A).
(A) Notwithstanding any other law, from July 1, 2021, to June 30, 2022, inclusive, family fees are waived for all families receiving subsidized child care services from child care providers and state preschool programs administered by the State Department of Social Services and the State Department Education pursuant to Article 3 (commencing with Section 8220) of, Article 6 (commencing with Section 8230) of, Article 7 (commencing with Section 8235) of, Article 8 (commencing with Section 8240) of, Article 8.5 (commencing with Section 8245) of, Article 9 (commencing with Section 8250) of, or Article 15.5 (commencing with Section 8350) of, Chapter 2 of Part 6 of Division 1 of Title 1 of the Education Code, or Article 6 (commencing with Section 11461.6) of Chapter 2 of Part 3 of Division 9 of the Welfare and Institutions Code, as those provisions read on February 3, 2021.
(B) During any period in which family fees are waived, contractors shall reimburse the subsidized child care providers for the full amount of the certificate or voucher without deducting family fees.
(C) The State Department of Social Services, in consultation with the State Department of Education, shall submit a Child Care and Development Fund (CCDF) state plan amendment to include family fee waivers and reimbursement for waived family fees, as described in subparagraphs (A) and (B) , to the federal Administration for Children and Families (ACF) for approval pursuant to the federal guidance provided in Information Memorandum CCDF-ACF-IM-2021-01 on CCDF discretionary funds appropriated in the Coronavirus Response and Relief Supplemental Appropriations (CRRSA) Act (P.L. 116-260).
(4) (A) Thirty one million dollars ($31,000,000) shall be allocated to provide a state-subsidized child care provider operating or serving programs funded by a county, alternative payment program, or a family child care home education network pursuant to Article 3 (commencing with Section 8220) of, Article 6 (commencing with Section 8230) of, Article 8.5 (commencing with Section 8245) of, or Article 15.5 (commencing with Section 8350) of, Chapter 2 of Part 6 of Division 1 of Title 1 of the Education Code, and Article 6 (commencing with Section 11461.6) of Chapter 2 of Part 3 of Division 9 of the Welfare and Institutions Code, as those provisions read on February 3, 2021, up to 16 additional paid nonoperational days between July 1, 2021, and June 30, 2022, inclusive, if the provider is closed due to COVID-19 related reasons.
(B) An alternative payment program, a migrant alternative payment program, a family child care home education network, and a county welfare department administering a subsidized child care program pursuant to subparagraph (A) shall track the usage of paid nonoperational days and associated costs due to the COVID-19 pandemic emergency and short-term child care to eligible children and report monthly on usage to the State Department of Social Services and the State Department of Education. The use of nonoperational days and associated costs reported to the State shall be used to determine reimbursements for nonoperational days as described in this subdivision.
(C) The State Department of Social Services and State Department of Education shall issue guidance to family child care home education network programs operating pursuant to Article 8.5 (commencing with Section 8245) of Chapter 2 of Part 6 of Division 1 of Title 1 of the Education Code, as those provisions read on February 3, 2021, that directs family child care home education network programs to use the additional 16 nonoperational days for COVID-19 related closures not reimbursed by subdivision (f) of Section 8209 of the Education Code, as it read on February 3, 2021.
(5) (A) Seventy million dollars ($70,000,000) shall be allocated to provide support, as described in subparagraph (B), through June 30, 2022, to alternative payment programs, including migrant alternative payment programs, and to state-subsidized child care providers, including daycare centers, family daycare homes, and license-exempt providers, that serve children through an alternative payment program pursuant to Article 3 (commencing with Section 8220), migrant child care and development programs pursuant to Article 6 (commencing with Section 8230), the California state preschool program pursuant to Article 7 (commencing with Section 8235), a general child care and development program pursuant to Article 8 (commencing with Section 8240), a family child care home education network pursuant to Article 8.5 (commencing with Section 8245), child care and development services for children with special needs pursuant to Article 9 (commencing with Section 8250), or a CalWORKs Stage 1, Stage 2, or Stage 3 program, pursuant to Article 15.5 (commencing with Section 8350) of Chapter 2 of Part 6 of Division 1 of Title 1 of the Education Code, as those provisions read on February 3, 2021.
(B) Notwithstanding subdivision (d) of Section 8221.5 of the Education Code, as it read on February 3, 2021, reimbursement for child care providers, including license-exempt providers, shall be based on families’ certified need, as follows:
(i) Providers shall be reimbursed based on the maximum authorized hours of care, regardless of attendance.
(ii) For families certified for a variable schedule, providers shall be reimbursed based on the maximum authorized hours of care.
(iii) For license-exempt providers that provide part-time services, providers shall be reimbursed based on the maximum authorized hours of care.
(6) (A) Contracting agencies operating a migrant child care and development program pursuant to Article 6 (commencing with Section 8230), a California state preschool program pursuant to Article 7 (commencing with Section 8235), a general child care and development program pursuant to Article 8 (commencing with Section 8240), a child care and development services for children with special needs program pursuant to Article 9 (commencing with Section 8250), or a family child care home education network program pursuant to Article 8.5(commencing with Section 8245) of, Chapter 2 of Part 6 of Division 1 of Title 1 of the Education Code, as those provisions read on February 3, 2021, shall be reimbursed according to subparagraph (B), if they meet either of the following requirements:
(i) The program is open and operating in accordance with their approved program calendar and remains open and offering services through the program year.
(ii) The program operated by the contracting agency is closed by local or state public health order or guidance due to the COVID-19 pandemic.
(B) Reimbursement pursuant to subparagraph (A) shall be 100 percent of the contract maximum reimbursable amount or net reimbursable program costs, whichever is less, pursuant to guidance released by the Superintendent of Public Instruction and the State Department of Social Services for their respective programs.
(C) A child care or preschool program specified in subparagraph (A) that is physically closed as described in clause (ii) of subparagraph (A) due to the COVID-19 pandemic, but funded to be operational, shall provide distance learning services, as specified by the Superintendent of Public Instruction and the State Department of Social Services for their respective programs. A contractor specified in subparagraph (A) shall submit a distance learning plan to the department overseeing their contract pursuant to guidance from the applicable department.
(7) One-time funding of twenty-five million dollars ($25,000,000) shall be allocated to the existing Child Care Initiative Project (CCIP), which may be used to address child care deserts, including, but not limited to, where infant and toddler care has the greatest unmet need, and to support providers who have closed during the pandemic in reopening. Funding allocated pursuant to this paragraph shall be liquidated by September 30, 2023.
(8) One-time funding of ten million six hundred thousand dollars ($10,600,000) shall be allocated to expand the California Inclusion and Behavior Consultation (CIBC) project to support the expertise, best practices, and well-being of child care providers in order to promote the health, safety, and well-being of the children and families they serve who are impacted by COVID-19. Funding allocated pursuant to this paragraph shall be liquidated by September 30, 2023.
(c) Notwithstanding subdivision (b) of Section 8221.5 of the Education Code, as it read on February 3, 2021, if a child care provider attempts to collect a signature on the monthly attendance record or invoice and the parent or guardian is unable to sign due to the COVID-19 pandemic, the child care provider may, for monthly attendance records or invoices from July 1, 2021, through June 30, 2022, inclusive, or from July 1, 2021, through the end of the state of emergency declared by the Governor on March 4, 2020, in response to the COVID-19 pandemic, whichever period is shorter, submit an attendance record or invoice without the parent or guardian signature, subject to guidance issued by the applicable department.
(d) The funding described in this section shall be subject to federal usage limitations and federal and state program eligibility requirements.
(e) (1) The Legislature hereby approves the agreement, dated April 20, 2021, entered into by the Governor and Child Care Providers United – California, in its sole capacity as the certified provider organization representing family child care providers, as defined in paragraph (1) of subdivision (b) of Section 8431 of the Education Code. This paragraph shall be limited to the terms specified in the agreement and shall not be interpreted to expand upon or change the agreement.
(2) The provisions of the agreement prepared pursuant to Section 8435.5 of the Education Code, as it read on February 3, 2021, and entered into by the Governor and Child Care Providers United - California, dated April 20, 2021, that require the expenditure of funds or legislative action to permit their implementation, are hereby approved by the Legislature for the purposes of subdivision (b) of Section 8435.5 of the Education Code, as it read on February 3, 2021.
(f) (1) Contracts or grants awarded pursuant to this section shall be exempt from the personal services contracting requirements of Article 4 (commencing with Section 19130) of Chapter 5 of Part 2 of Division 5 of Title 2 of the Government Code. Contracts or grants awarded pursuant to this section shall be exempt from the Public Contract Code and the State Contracting Manual, and shall not be subject to the approval of the Department of General Services.
(2) Notwithstanding the rulemaking provisions of the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code), the State Department of Social Services and the State Department of Education may implement, interpret, or make specific this section by means of all-county letters, bulletins, or similar written instructions from either department until regulations are adopted. These all-county letters or similar written instructions shall have the same force and effect as regulations.
(g) (1) Notwithstanding any other law, upon the request of the State Department of Education or the State Department of Social Services, the Department of Finance may authorize the transfer of expenditure authority between the allocations set forth in this section.
(2) The aggregate amount of allocation increases provided under this subdivision shall not exceed the aggregate amount of allocation decreases.
(h) For purposes of this section, “state” means the State Department of Education, the State Department of Social Services, and the Department of Finance, unless otherwise specified.
SEC. 264.
 (a) (1) Three million one-hundred sixty thousand dollars ($3,160,000) in one-time funding shall be allocated from the funds described in subdivision (d) of Provision 5 of Item 6100-149-0890 of the Budget Act of 2021 (Ch. 21, Stats. 2021), as amended by Senate Bill 129 of the 2021–22 Regular Session, to increase licensed family daycare home capacity, as described in this subdivision. The State Department of Social Services shall issue a one-time incentive payment in the amount of five hundred dollars ($500) to a previously unlicensed individual who obtains a family daycare home license on or after June 28, 2021, and maintains an active license for 12 consecutive months. These incentive payments shall be provided to the extent that appropriated funds are available or until June 30, 2023, whichever comes first.
(2) The State Department of Social Services may designate another agency or agencies to distribute these funds to licensed family daycare homes. Contracts or grants awarded pursuant to this subdivision shall be exempt from the personal services contracting requirements of Article 4 (commencing with Section 19130) of Chapter 5 of Part 2 of Division 5 of Title 2 of the Government Code. Contracts or grants awarded pursuant to this subdivision shall be exempt from the Public Contract Code and the State Contracting Manual, and shall not be subject to the approval of the Department of General Services.
(3) For purposes of this subdivision, a “family daycare home” has the same meaning as in subdivision (a) of Section 1596.78 of the Health and Safety Code.
(b) (1) Forty million dollars ($40,000,000) in one-time funding shall be allocated from the funds described in subdivision (d) of Provision 5 of Item 6100-149-0890 of the Budget Act of 2021 (Ch. 21, Stats. 2021), as amended by Senate Bill 129 of the 2021–22 Regular Session, to establish the Joint Child Care Providers United-State of California Training Partnership Fund, the purpose of which is to expand and strengthen training opportunities for family childcare providers and address the workforce needs of the State of California, as well as the career, knowledge, and skill aspirations of all family childcare providers.
(2) The training supported by the fund shall include, but not be limited to, training relating to the following:
(A) The cognitive, social, emotional, and physical development of children and approaches to learning.
(B) Trauma-informed practices and care.
(C) Family engagement.
(D) Dual language learners.
(E) Racial and cultural diversity.
(F) Apprenticeships, pre-apprenticeships, and on-the-job learning programs.
(G) Additional topics, including small business operations, learning approaches for special needs children, evidence-based curricula, design and layout of child care spaces, self-care, and development of family childcare providers as mentors.
(3) The fund may also be used to fund training and professional development expenses; computers, books, and other equipment to facilitate learning; coaching, mentors, and other staff; fund set-up and implementation; and monetary incentives for completing training, education, and other degree requirements.
(4) The funding described in this subdivision shall be subject to federal usage limitations and federal and state program eligibility requirements. Funds allocated for the purposes described in this subdivision are subject to appropriation in the Budget Act and shall be liquidated by September 30, 2022.
(c) (1) Commencing January 1, 2022, two hundred eighty-nine million dollars ($289,000,000) in one-time funding shall be made available to support family childcare providers, as defined in paragraph (1) of subdivision (b) of Section 10421 of the Welfare and Institutions Code, through reimbursement rate supplements to be allocated over a twenty-four month period. Of the two hundred eighty-nine million dollars ($289,000,000), eighty-nine million dollars ($89,000,000) is allocated from the funds described in subdivision (d) of Provision 5 of Item 6100-149-0890 of the Budget Act of 2021 (Ch. 21, Stats. 2021), as amended by Senate Bill 129 of the 2021–22 Regular Session, and two hundred million dollars ($200,000,000) is hereby appropriated from the General Fund to the State Department of Social Services. Reimbursement rate supplements shall be tied to the uses and methodology described in paragraphs (2) and (3).
(2) Child Care Providers United – California shall have discretion to determine how the funding described in paragraph (1) may be used to supplement reimbursement rates, which may include, but not be limited to, monthly rate supplements for family childcare providers or lump-sum bonuses, subject to review and approval by the state to ensure feasibility of implementation.
(3) Notwithstanding Sections 10228, 10280, and 10374.5 of the Welfare and Institutions Code, the reimbursement rate supplements shall be implemented using a methodology developed by Child Care Providers United – California, in its sole capacity as the certified provider organization representing family childcare providers, subject to technical assistance, review, and approval by the State Department of Social Services. The reimbursement rate supplements shall be implemented January 1, 2022, through December 31, 2023.
(4) The state and Child Care Providers United – California may establish a Joint Labor Management Committee to facilitate agreement on the uses of funding determined pursuant to paragraph (2) and the methodology developed pursuant to paragraph (3).
(d) (1) The Legislature hereby approves the agreement, dated June 25, 2021, entered into by the Governor and Child Care Providers United – California, in its sole capacity as the certified provider organization representing family childcare providers, as defined in Section 10421 of the Welfare and Institutions Code. This paragraph shall be limited to the terms specified in the agreement and shall not be interpreted to expand upon or change the agreement.
(2) The provisions of the agreement prepared pursuant to Section 10426 of the Welfare and Institutions Code and entered into by the Governor and Child Care Providers United—California, dated June 25, 2021, that require the expenditure of funds or legislative action to permit their implementation, are hereby approved by the Legislature for the purposes of subdivision (b) of Section 10426 of the Welfare and Institutions Code.
(e) Notwithstanding the rulemaking provisions of the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code), the State Department of Social Services and the State Department of Education may implement, interpret, or make specific this section by means of all-county letters, bulletins, or similar written instructions from either department. These all-county letters or similar written instructions shall have the same force and effect as regulations.
SEC. 265.
 (a) The sum of seven hundred thirty-nine million twenty-five thousand dollars ($739,025,000) in federal funds is hereby appropriated to the State Department of Education for the 2021–22 fiscal year. Upon order of the Department of Finance, these funds shall be transferred to the State Department of Social Services for the purpose of expanding childcare access by funding additional slots under the alternative payment program (Chapter 3 (commencing with Section 10225) of Part 1.8 of Division 9 of the Welfare and Institutions Code) and the general childcare and development program (Chapter 7 (commencing with Section 10240) of Part 1.8 of Division 9 of the Welfare and Institutions Code). Of the funds transferred, four hundred three million dollars ($403,000,000) shall be allocated for slots in the 2021–22 fiscal year and three hundred thirty-six million twenty-five thousand dollars ($336,025,000) shall be allocated for slots in the 2022–23 fiscal year.
(b) The sum of twenty-nine million seventy-eight thousand dollars ($29,078,000) is hereby appropriated from the General Fund to the State Department of Social Services to provide childcare provider cost of living adjustment increases pursuant to Section 42238.15 of the Education Code in the 2021–22 fiscal year.
(c) Notwithstanding any other law, commencing January 1, 2022, eight hundred forty million three hundred thirty thousand dollars ($840,330,000) shall be allocated from the funds described in subdivision (d) of Provision 5 of Item 6100-149-0890 of the Budget Act of 2021 (Ch. 21, Stats. 2021), as amended by Senate Bill 129 of the 2021–22 Regular Session, to support childcare provider rate increases, as defined in subdivision (c) of Section 10280 of the Welfare and Institutions Code and in subdivisions (b) and (c) of Section 10374.5 of the Welfare and Institutions Code. Of the eight hundred forty million three hundred thirty thousand dollars ($840,330,000), two hundred seventy-five million five hundred eighty thousand dollars ($275,580,000) shall be available in the 2021–22 fiscal year, four hundred fifty million dollars ($450,000,000) shall be available in the 2022–23 fiscal year, and one hundred fourteen million seven hundred fifty thousand dollars ($114,750,000) shall be available in the 2023–24 fiscal year.
(d) Notwithstanding any other law, commencing January 1, 2022, three hundred sixty-seven million two hundred seventy-five thousand dollars ($367,275,000) shall be allocated from the funds described in subdivision (d) of Provision 5 of Item 6100-149-0890 of the Budget Act of 2021 (Ch. 21, Stats. 2021), as amended by Senate Bill 129 of the 2021–22 Regular Session, to support preschool rate increases, as provided for in subdivision (c) of Section 8242 of the Education Code. Of the three hundred sixty-seven million two hundred seventy-five thousand dollars ($367,275,000), one hundred three million one hundred sixty thousand dollars ($103,160,000) shall be available in the 2021–22 fiscal year, two hundred ten million four hundred fifty thousand dollars ($210,450,000) shall be available in the 2022–23 fiscal year, and fifty-three million six hundred sixty-five thousand dollars ($53,665,000) shall be available in the 2023–24 fiscal year.
(e) (1) Commencing January 1, 2022, one hundred eighty-eight million seven hundred sixty thousand dollars ($188,760,000) in one-time funding shall be made available to address inequities between the standard reimbursement rate and the regional market rate ceiling for center-based childcare providers in the general childcare, migrant, and California state preschool programs, by providing reimbursement rate supplements, which shall be allocated over a twenty-four month period. Of the one hundred eighty-eight million seven hundred sixty thousand dollars ($188,760,000):
(A) Forty-five million dollars ($45,000,000) shall be allocated from the funds described in subdivision (d) of Provision 5 of Item 6100-149-0890 of the Budget Act of 2021 (Ch. 21, Stats. 2021), as amended by Senate Bill 129 of the 2021–22 Regular Session, for transfer to the State Department of Social Services, and twenty million dollars ($20,000,000) is hereby appropriated from the General Fund to the State Department of Social Services for the reimbursement rate supplements described in this paragraph and paragraph (2).
(B) Thirty one million one hundred ninety thousand dollars ($31,190,000) is allocated from the funds described in subdivision (d) of Provision 5 of Item 6100-149-0890 of the Budget Act of 2021 (Ch. 21, Stats. 2021), as amended by Senate Bill 129 of the 2021–22 Regular Session, to the State Department of Education and sixteen million eight hundred ten thousand dollars ($16,810,000) is hereby appropriated from the General Fund to the State Department of Education for the reimbursement rate supplements described in this paragraph and paragraph (2).
(C) Fifty seven million five hundred seventy-six thousand dollars ($57,566,000) is allocated from the funds described in Provision 9 of Item 6100-196-0001 of the Budget Act of 2021 (Ch. 21, Stats. 2021), as amended by Senate Bill 129 of the 2021–22 Regular Session, to the State Department of Education, and eighteen million one hundred ninety-four thousand dollars ($18,194,000) is allocated from the funds described in subdivision (d) of Provision 5 of Item 6100-149-0890 of the Budget Act of 2021 (Ch. 21, Stats. 2021), as amended by Senate Bill 129 of the 2021–22 Regular Session, to the State Department of Education for the reimbursement rate supplements described in this paragraph and paragraph (2).
(2) In order to determine the rate distribution methodology, the State Department of Social Services and State Department of Education, in consultation with the Legislature, shall determine how the funding described in paragraph (1) will be used to supplement reimbursement rates, which may include, but not be limited to, monthly rate supplements or lump-sum bonuses, subject to review and approval by the Department of Finance, to ensure feasibility of implementation. In determining how they use the funding described in this subdivision, the departments shall ensure a fair and equitable distribution based on the funding allocated to the departments for these purposes. The Department of Finance shall notify the Joint Legislative Budget Committee of the determined use of this funding.
(3) In accordance with federal requirements for Child Care Stabilization Grants appropriated pursuant to the federal American Rescue Plan Act of 2021 (Public Law 117-2), contractors shall provide information via a one-time application or survey in advance of receiving American Rescue Plan Act funds. The State Department of Social Services or the State Department of Education, as applicable, shall specify the timeline and format in which this information shall be submitted, and the information shall include, but not be limited to, all of the following:
(A) Address, including ZIP Code.
(B) Race and ethnicity.
(C) Gender.
(D) Whether the provider is open and available to provide childcare services or closed due to the COVID-19 public health emergency.
(E) What types of federal relief funds have been received from the state.
(F) Use of federal relief funds received.
(G) Documentation that the provider met certifications as required by federal law.
(4) Rate increases shall be subject to federal usage limitations and federal and state program eligibility requirements.
SEC. 266.
 This act is a bill providing for appropriations related to the Budget Bill within the meaning of subdivision (e) of Section 12 of Article IV of the California Constitution, has been identified as related to the budget in the Budget Bill, and shall take effect immediately.