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AB-163 Early learning and childcare.(2023-2024)

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Date Published: 06/22/2024 01:02 PM
AB163:v97#DOCUMENT

Amended  IN  Senate  June 22, 2024
Amended  IN  Assembly  February 01, 2023

CALIFORNIA LEGISLATURE— 2023–2024 REGULAR SESSION

Assembly Bill
No. 163

Introduced by Committee on Budget (Assembly Members Ting (Chair), Alvarez, Arambula, Bennett, Bonta, Wendy Carrillo, Cervantes, Connolly, Mike Fong, Friedman, Garcia, Hart, Jackson, Jones-Sawyer, Lee, McCarty, Muratsuchi, Ramos, Reyes, Luz Rivas, Blanca Rubio, Wicks, and Wood) Gabriel (Chair), Alvarez, Bennett, Bonta, Connolly, Mike Fong, Jackson, Lee, McCarty, Muratsuchi, Ortega, Petrie-Norris, Quirk-Silva, Ramos, Valencia, Ward, Weber, Wilson, and Zbur)

January 09, 2023

An act relating to the Budget Act of 2023. An act to amend Section 8320 of, to amend, repeal, and add Sections 8205, 8207, 8208, 8210, 8211, and 8244 of, to add Section 8334 to, and to add, repeal, and add Section 8207.1 of, the Education Code, to amend Section 7927.305 of the Government Code, to amend Section 1596.86 of the Health and Safety Code, and to amend Sections 10227.6 and 10267.5 of, and to add Sections 10212.6, 10244, and 10602.1 to, the Welfare and Institutions Code, relating to early learning and childcare, and making an appropriation therefor, to take effect immediately, bill related to the budget.


LEGISLATIVE COUNSEL'S DIGEST


AB 163, as amended, Committee on Budget. Budget Act of 2023. Early learning and childcare.
(1) The Early Education Act, among other things, requires the Superintendent to administer all California state preschool programs, including, but not limited to, part-day and full-day age and developmentally appropriate programs for 3- and 4-year-old children. The act establishes eligibility criteria for those children.
This bill would require the State Department of Education to develop and implement a streamlined request for application process for existing California state preschool program contractors to be awarded new California state preschool program slots and would require the State Department of Education to collaborate with the State Department of Social Services to ensure the request for application process is, where applicable, similar to the streamlined request for application process in the general childcare and development program. The bill would make certain contractors ineligible for the streamlined request for application process if any of specified conditions are met.
(2) Existing law requires the State Department of Education, in collaboration with the State Department of Social Services, to 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, for California state preschool program contractors, as provided. Existing law requires each applicant or contracting agency to give priority for part-day and full-day California state preschool programs according to a specified priority order. Existing law establishes adjustment factors applicable to the reimbursement a contractor receives in order to reflect the additional expense of serving full-day and part-day preschool children who meet certain criteria and requires the adjustment factor for children who are 47 months or younger to be 1.8, as provided.
This bill, until July 1, 2027, would authorize, but not require, a California state preschool contractor operating a part-day, full-day, or both part- and full-day California state preschool program to enroll interested eligible 2-year-old children, as defined, and would make conforming changes. The bill, on or after July 1, 2027, would prohibit a contractor from serving any 2-year-old children, unless the contractor was serving those 2-year-old children before July 1, 2027, as provided. The bill, until July 1, 2027, would instead require the adjustment factor for 2-year-old and 3-year-old children to be 1.8, as provided. The bill would provide that children enrolled in kindergarten who meet other specified criteria are eligible for a part-day California state preschool program.
(2) The act, until June 30, 2025, requires at least 5% of part-day and full-day California state preschool program contracting agency’s funded enrollment to be reserved for children with exceptional needs. The act requires, commencing July 1, 2025, at least 7.5% and, commencing July 1, 2026, at least 10% of a part-day and full-day preschool program contracting agency’s funded enrollment to be reserved for children with exceptional needs, as provided.
This bill would delete the above provisions relating to the 7.5% and 10% reservations for children with exceptional needs in part-day and full-day California state preschool programs and would instead indefinitely extend the provision relating to the 5% reservation for children with exceptional needs in part-day and full-day California state preschool programs. The bill would also make conforming changes.
(3) The act requires each applicant or contracting agency to give priority for part-day and full-day California state preschool programs according to a specified priority order, including, as the 4th priority category, children from low-income families, as provided.
This bill would revise and recast the above provisions relating to the 4th priority category for part-day and full-day California state preschool programs to, among other things, provide that within the 4th priority category for children from low-income families, after children with exceptional needs are enrolled, 3- and 4-year-old children without exceptional needs shall be enrolled in income ranking order, as provided. The bill would, until July 1, 2027, establish a new 4th priority category for certain 2-year-old children, as provided.
(4) The act establishes the California Universal Preschool Planning Grant Program with the goal of expanding access universally to preschool programs for 3- and 4-year-old children, as provided. The act requires the Superintendent to develop and administer a grant process and award grant funds to each county that applies, as provided. The act provides, to the extent funds are available in the annual Budget Act for the 2023–24 and 2024–25 fiscal years, that existing grantees shall be eligible to apply for a renewal grant, as provided.
This bill would also provide that newly formed consortia of current grantees or individual counties who participated as a grantee in a former consortium for the grant are eligible to apply for a renewal grant, as provided.
(5) The California Public Records Act requires state and local agencies to make their records available for public inspection, unless an exemption from disclosure applies. Existing law exempts information regarding childcare providers from the disclosure exemptions of the act, except as specified.
This bill would make technical and conforming changes to these provisions as they pertain to family childcare providers.
(6) Existing law generally requires the State Department of Social Services to license and regulate various types of child daycare facilities, including, among others, child daycare facilities. Under existing law, a willful or repeated violation of those provisions is a crime.
Existing law requires the director of the State Department of Social Services to annually publish and make available to interested persons a list or lists covering all child daycare facilities, other than small family childcare homes, and the services for which each facility has been licensed or issued a special permit. To encourage the recruitment of small family childcare homes and protect their personal privacy, existing law requires the department to prevent the use of lists containing names, addresses, and other identifying information of facilities identified as small family childcare homes, except as necessary for administering the licensing program, facilitating the placement of children in these facilities, and providing the names and addresses to specified programs. Existing law also authorizes parents seeking local daycare services to receive the names and telephone numbers of local small family childcare providers.
This bill would make a technical conforming change to replace the term “small family childcare homes” with “small family daycare homes.” The bill would revise the provisions described above by instead authorizing the department to disclose specified information relating to small family daycare homes to individuals and entities, including, but not limited to, consumer education internet websites available to the public and parents, legal guardians, and caregivers seeking daycare services for purposes of facilitating the placement of children in small family daycare homes. The bill would authorize the department to require an individual or entity to maintain the confidentiality of any information provided pursuant to these provisions and would also authorize the department to deny any individual or entity that violates those regulations access to information on small family daycare homes. The bill would require the department to report any violating individuals or entities to the appropriate funding or licensing agency. By expanding the definition of an existing crime, this bill would impose a state-mandated local program.
(7) Existing law, the Child Care and Development Services Act, requires the State Department of Social Services to administer childcare and development programs that offer a full range of services to eligible children from infancy to 13 years of age, inclusive. Existing law appropriates $739,025,000 in federal funds to the State Department of Education to, upon order of the Department of Finance, 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 and the general childcare and development program in the 2021–22 and 2022–23 fiscal years.
This bill would state the intent of the Legislature to add approximately 206,800 new childcare slots above the slot levels funded during the 2020–21 fiscal year, in accordance with a specified distribution. The bill would state that funding to programs has been added by the state as of May 15, 2024, resulting in an award of an estimated 118,800 new slots, as specified. The bill would state the intent of the Legislature that the remaining slots that have not been added and awarded as of January 1, 2024, may follow a specified distribution in certain fiscal years. The bill would require, subject to appropriation, that any unawarded slots be distributed in each subsequent fiscal year.
The bill would require the department to release at least one request for applications, and to announce awards, as specified. The bill would require the department to annually revise the number of added and awarded slots based on final awardee data. To the extent that updated slot estimates fall below the listed total slot levels, and subject to appropriation, the bill would require the department to add, award, and put into contract additional slots to maintain total slot levels, to the extent requested.
(8) Existing law authorizes, for purposes of implementation of state or federal legislation to expand childcare services, the department to waive regulations regarding the point qualifications for, and the process and scoring of, interviews of contract applicants, or the time limitations for scheduling and notification of appeal hearings and their results.
This bill would additionally authorize the department to utilize an alternative application process to evaluate the ability and standing of existing contractors in determining allocation methodology and eligibility for funding.
The bill would require the department to develop and implement a streamlined request for application process for current childcare and development program contractors to award new childcare and development program contracts. The bill would specify that certain current contractors are ineligible to participate in that streamlined process, including contractors who are on conditional status because of fiscal or programmatic noncompliance. The bill would also authorize the department to consider scoring criteria as necessary to award contracts.
(9) Existing federal law establishes the Child Care and Development Fund authorized under the Child Care and Development Block Grant Act of 2014 and administered by states to provide assistance to low-income families who need childcare due to specified reasons. Existing federal regulations require a portion of those funds to be used on specified activities to improve the quality of childcare.
This bill would require the department to provide, no later than May 14, 2025, and no later than May 14 every year thereafter, specified committees with a proposed list of the quality improvement activities, including funding totals by activity, that will be funded in the next fiscal year with the funds from the federal Child Care and Development Fund.
(10) Existing law requires the State Department of Social Services, in collaboration with the State Department of Education, to implement a reimbursement system plan that establishes reasonable standards and assigned reimbursement rates. Existing law requires the state and Child Care Providers United - California to establish a Joint Labor Management Committee to develop recommendations for a single reimbursement rate structure that addresses quality standards for equity and accessibility while supporting positive learning and developmental outcomes for children, as specified. Existing law also requires the department, in collaboration with the State Department of Education, to develop and conduct an alternative methodology, as specified, in order to set reimbursement rates for state-subsidized childcare and development services.
Existing law requires the department to, by no later than July 1, 2024, submit necessary information to support use of a single rate structure utilizing the alternative methodology to the United States Department of Health and Human Services, Administration for Children and Families in the Child Care and Development Fund state plan or an amendment to the state plan. Within 60 days of federal approval of the single rate structure utilizing the alternative methodology, existing law requires the department to provide specified committees of the Legislature and the Legislative Analyst’s Office with an outline of the implementation components for the approved single rate structure.
This bill would instead require the department to provide the Assembly and Senate Budget Committees and Legislative Analyst’s Office with a report that outlines the implementation components for the approved single rate structure. The bill would require the report to include the department’s plan to set new reimbursement rates under the alternative methodology by no later than July 1, 2025, and the estimated costs and estimated timelines associated with the implementation components, as specified. The bill would also require the department to, beginning October 1, 2024, until January 1, 2026, provide the Assembly and Senate Budget Committees and the Legislative Analyst’s Office with quarterly updates on the implementation of the new reimbursement rates, as specified. The bill would require the Governor and the Legislature to, by no later than July 1, 2025, establish reimbursement rates based on the alternative methodology. If the new reimbursement rates established by the Governor and the Legislature do not take effect on July 1, 2025, the bill would require the department to provide the Legislature with a timeline for transitioning from the rates that are in effect on July 1, 2025, to the new reimbursement rates, as specified. The bill would also prohibit the new reimbursement rates established by the Governor and the Legislature, or any temporary reimbursement established by the department as part of a transition timeline, from being reduced from reimbursement rates that were in effect on June 30, 2024, as specified.
(11) The bill would appropriate $328,000 in specified funds from the Federal Trust Fund to allow the State Department of Social Services to assist the California Health and Human Services Agency with the administration of the Preschool Development Grant.
(12) The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.
(13) This bill would declare that it is to take effect immediately as a bill providing for appropriations related to the Budget Bill.

This bill would express the intent of the Legislature to enact statutory changes, relating to the Budget Act of 2023.

Vote: MAJORITY   Appropriation: NOYES   Fiscal Committee: NOYES   Local Program: NOYES  

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


SECTION 1.

 Section 8205 of the Education Code is amended to read:

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- two-, 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) “Two-year-old children” means children who have had their second birthday and do not otherwise meet the definition of “three-year-old children.”

(ab)

(ac) “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)

(ad) “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)

(ae) “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)

(af) “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)

(ag) (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.
(ah) This section shall become inoperative on July 1, 2027, and, as of January 1, 2028, is repealed.

SEC. 2.

 Section 8205 is added to the Education Code, to read:

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. 3.

 Section 8207 of the Education Code is amended to read:

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- 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, including, but not limited to, Section 1596.955 of the Health and Safety Code. 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. 4.

 Section 8207 is added to the Education Code, to read:

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 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 operative on July 1, 2027.

SEC. 5.

 Section 8207.1 is added to the Education Code, to read:

8207.1.
 (a) A California state preschool contractor operating a part-day, full-day, or both part- and full-day California state preschool program may, but is not required to, enroll interested eligible two-year-old children.
(b) The Superintendent shall develop guidance for contractors to follow when enrolling two-year-old children.
(c) 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, the department may, on or before April 1, 2025, implement this section and associated guidance on serving two-year-old children through management bulletins or similar letters of instruction.
(d) This section shall become inoperative on July 1, 2027, and, as of January 1, 2028, is repealed.

SEC. 6.

 Section 8207.1 is added to the Education Code, to read:

8207.1.
 (a) A contractor shall not serve any two-year-old children, as defined in Section 8205 as that section read on June 30, 2027, on or after July 1, 2027, unless the contractor was serving those two-year-old children before July 1, 2027. The adjustment factors and rates described in Section 8244 as that section read on June 30, 2027, shall still apply to those two-year-old children until they meet the definition of three-year-old children.
(b) This section shall become operative on July 1, 2027.

SEC. 7.

 Section 8208 of the Education Code is amended 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: both 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.
(iv) Enrolled in kindergarten pursuant to Section 48000.
(B) The child’s family is one of the following:

(A)

(i) A current aid recipient.

(B)

(ii) Income eligible.

(C)

(iii) Homeless.

(D)

(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.

(E)(i)One that

(v) (I) One that has children with exceptional needs, as defined in Section 8205.

(ii)

(II) Only the children in the family who are children with exceptional needs may be enrolled under the eligibility criteria of this subparagraph. clause. Any other child in the family without exceptional needs may be enrolled pursuant to any of the criteria established in subparagraphs (A) to (D), clauses (i) to (iv), inclusive.

(F)

(vi) 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.
(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- 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 three- 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 three- 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) (A)Commencing July 1, 2022, until June 30, 2025, inclusive, 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.

(B)Commencing July 1, 2025, to June 30, 2026, inclusive, at least 7.5 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.

(C)Commencing July 1, 2026, at least 10 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, and serve those children.

(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 subclauses (I) to (III), inclusive, of 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) (I)On and after July 1, 2026, any agency not meeting the 5-percent requirement pursuant to subparagraph (A) of paragraph (1).

(II)On and after July 1, 2027, any agency not meeting the 7.5-percent requirement pursuant to subparagraph (B) of paragraph (1).

(III)On and after July 1, 2028, any agency not meeting the 10-percent requirement pursuant to subparagraph (C) of 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) 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) 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 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: 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.

(A)

(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) 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.

(B)

(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) (i)Commencing July 1, 2022, until June 30, 2025, inclusive, 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.

(ii)Commencing July 1, 2025, to June 30, 2026, inclusive, at least 7.5 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.

(iii)Commencing July 1, 2026, at least 10 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, and serve those children.

(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 sub-subclauses (ia) to (ic), inclusive, of 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) (ia)On and after July 1, 2026, any agency not meeting the 5-percent requirement pursuant to clause (i) of subparagraph (A).

(ib)On and after July 1, 2027, any agency not meeting the 7.5-percent requirement pursuant to clause (ii) of subparagraph (A).

(ic)On and after July 1, 2028, any agency not meeting the 10-percent requirement pursuant to clause (iii) of subparagraph (A).

(III) The Superintendent shall create an ongoing waiver process for agencies not able to meet the requirement described in subparagraph (A).
(C) 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) of Title 20 of the United States Code.
(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) The department shall initiate a rulemaking action to implement this paragraph on or before December 31, 2023.
(3) 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 three- 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.
(4) Notwithstanding paragraph (1), after all families meeting the criteria specified in paragraphs (1) and (3) have been enrolled, a full-day California state preschool program may provide services to three- 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).
(5) After all otherwise eligible children have been enrolled as provided in paragraphs (1), (3), and (4), 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 three- two-, three-, or four-year-old child.
(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) 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.
(i) This section shall become inoperative on July 1, 2027, and, as of January 1, 2028, is repealed.

SEC. 8.

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

8208.
 (a) (1) A child is eligible for the part-day California state preschool program if both of the following requirements are met:
(A) The child is one of the following:
(i) A three-year-old child.
(ii) A four-year-old child.
(iii) Enrolled in kindergarten pursuant to Section 48000.
(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) 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.
(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 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 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 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) 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) 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 three-year-old child.
(ii) 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) 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.
(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) 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) of Title 20 of the United States Code.
(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) The department shall initiate a rulemaking action to implement this paragraph on or before December 31, 2023.
(3) 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 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.
(4) Notwithstanding paragraph (1), after all families meeting the criteria specified in paragraphs (1) and (3) 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).
(5) After all otherwise eligible children have been enrolled as provided in paragraphs (1), (3), and (4), 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 three- or four-year-old child.
(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) 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.
(i) This section shall become operative on July 1, 2027.

SEC. 9.

 Section 8210 of the Education Code is amended 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 two-year-old, 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) To the extent that there are additional three- two-, three-, and four-year-old children with exceptional needs interested in enrolling beyond those already enrolled in the percent of funded enrollment set aside pursuant to Section 8208, the second priority for services shall be given to all three- and four-year-old children with exceptional needs from families with incomes below the income eligibility threshold, as described in Section 8213.
(B) Within this priority category, children with exceptional needs from families 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.
(3) (A) The third priority for services shall be given to eligible three-year-old two-year-old, three-year-old, or four-year-old children who are not enrolled in a state-funded transitional kindergarten program. This priority shall not include children eligible pursuant to clause (v) of subparagraph (E) (B) of paragraph (1) of subdivision (a) of Section 8208 if they are from families with incomes above the income eligibility threshold, as described in Section 8213.
(B) (i) 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.
(ii) If two or more families have the same income ranking according to the most recent schedule of income ceiling eligibility table, a child who is identified as a dual language learner shall be enrolled first.
(iii) If there are no children who are identified as dual language learners, the child that has been on the waiting list for the longest time shall be admitted first.
(4) (A) The fourth priority for services shall be given to eligible two-year-old children, to the extent the contractor has elected to offer services pursuant to Section 8207.1. This priority shall not include children eligible pursuant to clause (v) of subparagraph (B) of paragraph (1) of subdivision (a) of Section 8208 if they are from families with incomes above the income eligibility threshold, as described in Section 8213.
(B) (i) 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.
(ii) If two or more families have the same income ranking according to the most recent schedule of income ceiling eligibility table, a child who is identified as a dual language learner shall be enrolled first.
(iii) If there are no children who are identified as dual language learners, the child that has been on the waiting list for the longest time shall be admitted first.

(4)

(5) (A) The fourth fifth 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
(B) Within this priority category, priority shall be given to three- two-, three-, and four-year-old children with exceptional needs interested in enrolling beyond those already enrolled in the 10 percent of funded enrollment set aside pursuant to Section 8208, then to four-year-old children before three-year-old children without exceptional needs. 8208.
(C) (i) After the children enrolling pursuant to subparagraph (B) are enrolled, three- and four-year-old children without exceptional needs shall be enrolled in income ranking order, 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, being enrolled first.
(ii) For purposes of clause (i), if two or more families have the same income ranking according to the most recent schedule of income ceiling eligibility table, the child that has been on the waiting list for the longest time shall be admitted first.

(5)

(6) After all otherwise eligible children have been enrolled in the first through fourth fifth priority categories, as described in paragraphs (1) to (4), (5), inclusive, the contractor may enroll the children in the following order:
(A) 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 three- two-, three-, or 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) Children enrolling in the California state preschool program to provide expanded learning and care to transitional kindergarten or kindergarten pupils, pursuant to subdivision (l) of Section 48000.
(b) 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.
(c) (1) Children with exceptional needs enrolled in the percent of funded enrollment set aside pursuant to paragraph (1) of subdivision (c) of Section 8208 shall be enrolled without regard to the priorities listed in subdivision (a).
(2) Within this 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.
(3) If two or more families have the same income ranking according to the most recent schedule of income ceiling eligibility table, the child that has been on the waiting list for the longest time shall be admitted first.
(d) This section shall become inoperative on July 1, 2027, and, as of January 1, 2028, is repealed.

SEC. 10.

 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) To the extent that there are additional three- and four-year-old children with exceptional needs interested in enrolling beyond those already enrolled in the percent of funded enrollment set aside pursuant to Section 8208, the second priority for services shall be given to all three- and four-year-old children with exceptional needs from families with incomes below the income eligibility threshold, as described in Section 8213.
(B) Within this priority category, children with exceptional needs from families 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.
(3) (A) The third priority for services shall be given to eligible three-year-old or four-year-old children who are not enrolled in a state-funded transitional kindergarten program. This priority shall not include children eligible pursuant to clause (v) of subparagraph (B) of paragraph (1) of subdivision (a) of Section 8208 if they are from families with incomes above the income eligibility threshold, as described in Section 8213.
(B) (i) 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.
(ii) If two or more families have the same income ranking according to the most recent schedule of income ceiling eligibility table, a child who is identified as a dual language learner shall be enrolled first.
(iii) If there are no children who are identified as dual language learners, the child that has been on the waiting list for the longest time shall be admitted first.
(4) (A) 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.
(B) Within this priority category, priority shall be given to three- and four-year-old children with exceptional needs interested in enrolling beyond those already enrolled in the set aside pursuant to Section 8208.
(C) (i) After the children enrolling pursuant to subparagraph (B) are enrolled, three- and four-year-old children without exceptional needs shall be enrolled in income ranking order, 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, being enrolled first.
(ii) For purposes of clause (i), if two or more families have the same income ranking according to the most recent schedule of income ceiling eligibility table, the child that has been on the waiting list for the longest time shall be admitted first.
(5) 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) 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 three- or 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) Children enrolling in the California state preschool program to provide expanded learning and care to transitional kindergarten or kindergarten pupils, pursuant to subdivision (l) of Section 48000.
(b) 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.
(c) (1) Children with exceptional needs enrolled in the percent of funded enrollment set aside pursuant to paragraph (1) of subdivision (c) of Section 8208 shall be enrolled without regard to the priorities listed in subdivision (a).
(2) Within this 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.
(3) If two or more families have the same income ranking according to the most recent schedule of income ceiling eligibility table, the child that has been on the waiting list for the longest time shall be admitted first.
(d) This section shall become operative on July 1, 2027.

SEC. 11.

 Section 8211 of the Education Code is amended 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 two-year-old, 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) To the extent that there are additional three- two-, three-, and four-year-old children with exceptional needs interested in enrolling beyond those already enrolled in the percent of funded enrollment set aside pursuant to paragraph (1) of subdivision (c) of Section 8208, the second priority for services shall be given to all three- and four-year-old children with exceptional needs from families with incomes below the income eligibility threshold, described in Section 8213.
(B) Within this priority category, children with exceptional needs from families 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.
(3) (A) The third priority for services shall be given to eligible three-year-old two-year-old, three-year-old, or four-year-old children who are not enrolled in a state-funded transitional kindergarten program. This priority shall not include children eligible pursuant to clause (v) of subparagraph (E) (B) of paragraph (1) of subdivision (a) of Section 8208 if they are from families with incomes above the income eligibility threshold, as described in Section 8213.
(B) (i) 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.
(ii) If two or more families have the same income ranking according to the most recent schedule of income ceiling eligibility table, a child who is identified as a dual language learner shall be enrolled first.
(iii) If there are no children who are identified as dual language learners, the child that has been on the waiting list for the longest time shall be admitted first.
(4) (A) The fourth priority for services shall be given to eligible two-year-old children, to the extent the contractor has elected to offer services pursuant to Section 8207.1. This priority shall not include children eligible pursuant to clause (v) of subparagraph (B) of paragraph (1) of subdivision (a) of Section 8208 if they are from families with incomes above the income eligibility threshold, as described in Section 8213.
(B) (i) 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.
(ii) If two or more families have the same income ranking according to the most recent schedule of income ceiling eligibility table, a child who is identified as a dual language learner shall be enrolled first.
(iii) If there are no children who are identified as dual language learners, the child that has been on the waiting list for the longest time shall be admitted first.

(4)

(5) (A) The fourth fifth priority, after all otherwise eligible children have been enrolled, shall be children from families whose income is no more than 15 percent above the income eligibility threshold, as described in Section 8213. Within
(B) Within this priority category, priority shall be given to three- two-, three-, and four-year-old children with an individualized family service plan or individualized education program, then four-year-old children before three-year-old children without an individualized family service plan or individualized education program. exceptional needs interested in enrolling beyond those already enrolled in the set aside pursuant to Section 8208.
(C) (i) After the children enrolling pursuant to subparagraph (B) are enrolled, three- and four-year-old children without exceptional needs shall be enrolled in income ranking order, 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, being enrolled first.
(ii) For purposes of clause (i), if two or more families have the same income ranking according to the most recent schedule of income ceiling eligibility table, the child that has been on the waiting list for the longest time shall be admitted first.

(5)

(6) After all otherwise eligible children have been enrolled in the first through fourth fifth priority categories, as described in paragraphs (1) to (4), (5), inclusive, the contractor may enroll the children in the following order:
(A) The contractor may enroll three- two-, three-, and four-year-old children from families that meet eligibility criteria pursuant to paragraph (4) of subdivision (d) 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 three- two-, three-, and 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 (3) of subdivision (d) of Section 8208. These families shall, to the extent possible, be enrolled in income ranking order, by lowest to highest income according to the most recent schedule of income ceiling eligibility table.
(b) 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.
(c) (1) Children with exceptional needs enrolled in the percent of funded enrollment set aside pursuant to paragraph (1) of subdivision (c) of Section 8208 shall be enrolled without regard to the priorities listed in subdivision (a).
(2) Within this 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.
(3) If two or more families have the same income ranking according to the most recent schedule of income ceiling eligibility table, the child that has been on the waiting list for the longest time shall be admitted first.
(d) This section shall become inoperative on July 1, 2027, and, as of January 1, 2028, is repealed.

SEC. 12.

 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) To the extent that there are additional three- and four-year-old children with exceptional needs interested in enrolling beyond those already enrolled in the percent of funded enrollment set aside pursuant to paragraph (1) of subdivision (c) of Section 8208, the second priority for services shall be given to all three- and four-year-old children with exceptional needs from families with incomes below the income eligibility threshold, described in Section 8213.
(B) Within this priority category, children with exceptional needs from families 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.
(3) (A) The third priority for services shall be given to eligible three-year-old or four-year-old children who are not enrolled in a state-funded transitional kindergarten program. This priority shall not include children eligible pursuant to clause (v) of subparagraph (B) of paragraph (1) of subdivision (a) of Section 8208 if they are from families with incomes above the income eligibility threshold, as described in Section 8213.
(B) (i) 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.
(ii) If two or more families have the same income ranking according to the most recent schedule of income ceiling eligibility table, a child who is identified as a dual language learner shall be enrolled first.
(iii) If there are no children who are identified as dual language learners, the child that has been on the waiting list for the longest time shall be admitted first.
(4) (A) 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 income eligibility threshold, as described in Section 8213.
(B) Within this priority category, priority shall be given to three- and four-year-old children with exceptional needs interested in enrolling beyond those already enrolled in the set aside pursuant to Section 8208.
(C) (i) After the children enrolling pursuant to subparagraph (B) are enrolled, three- and four-year-old children without exceptional needs shall be enrolled in income ranking order, 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, being enrolled first.
(ii) For purposes of clause (i), if two or more families have the same income ranking according to the most recent schedule of income ceiling eligibility table, the child that has been on the waiting list for the longest time shall be admitted first.
(5) 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 (4) of subdivision (d) 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 three- and 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 (3) of subdivision (d) of Section 8208. These families shall, to the extent possible, be enrolled in income ranking order, by lowest to highest income according to the most recent schedule of income ceiling eligibility table.
(b) 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.
(c) (1) Children with exceptional needs enrolled in the percent of funded enrollment set aside pursuant to paragraph (1) of subdivision (c) of Section 8208 shall be enrolled without regard to the priorities listed in subdivision (a).
(2) Within this 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.
(3) If two or more families have the same income ranking according to the most recent schedule of income ceiling eligibility table, the child that has been on the waiting list for the longest time shall be admitted first.
(d) This section shall become operative on July 1, 2027.

SEC. 13.

 Section 8244 of the Education Code is amended 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, including children with severe disabilities, the adjustment factor shall be 2.40.
(2) For children at risk of neglect, abuse, or exploitation, the adjustment factor shall be 1.1.
(3) For dual language learner children, the adjustment factor shall be 1.2.
(4) When early childhood mental health consultation services are provided, pursuant to Section 8243, the adjustment factor shall be 1.1.
(5) For children 47 months or younger, two-year-old and three-year old children, the adjustment factor shall be 1.8.
(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), (4), 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 (3), inclusive, and (5) 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 (3), inclusive, and (5) of subdivision (b), and who are additionally eligible for the adjustment factor established in paragraph (4) of subdivision (b), reported child days of enrollment shall be multiplied by the sum of the applicable adjustment factor under paragraphs (1) to (3), inclusive, and (5) of subdivision (b) and 0.1.
(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.
(g) This section shall become inoperative on July 1, 2027, and, as of January 1, 2028, is repealed.

SEC. 14.

 Section 8244 is added to the Education Code, 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, including children with severe disabilities, the adjustment factor shall be 2.40.
(2) For children at risk of neglect, abuse, or exploitation, the adjustment factor shall be 1.1.
(3) For dual language learner children, the adjustment factor shall be 1.2.
(4) When early childhood mental health consultation services are provided, pursuant to Section 8243, the adjustment factor shall be 1.1.
(5) For children 47 months or younger, the adjustment factor shall be 1.8.
(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), (4), 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 (3), inclusive, and (5) 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 (3), inclusive, and (5) of subdivision (b), and who are additionally eligible for the adjustment factor established in paragraph (4) of subdivision (b), reported child days of enrollment shall be multiplied by the sum of the applicable adjustment factor under paragraphs (1) to (3), inclusive, and (5) of subdivision (b) and 0.1.
(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.
(g) This section shall become operative on July 1, 2027.

SEC. 15.

 Section 8320 of the Education Code is amended to read:

8320.
 (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 education 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 funds calculated for each county, as described paragraph (1) of subdivision (d).
(ii) A local planning council shall express interest through 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 containing information, including, but not limited to, all of the following:
(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 education 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 as long as the application is in conformance 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:
(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 annual Budget Act for the 2023–24 and 2024–25 fiscal years, existing grantees grantees, newly formed consortia of current grantees, or individual counties who participated as a grantee in a former consortium for this grant, shall be eligible to apply for a renewal grant subject to the terms and conditions developed by the Superintendent.
(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 for the implementation of 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 necessarily 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 governing board or body of the county office 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) (A) Funds that are allocated or awarded pursuant to this section shall be expended by June 30, 2026. The department shall then initiate collection proceedings for unexpended funds.
(B) 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) Nothing in this section shall be construed as prohibiting 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. 16.

 Section 8334 is added to the Education Code, immediately following Section 8333, to read:

8334.
 (a) (1) The State Department of Education shall develop and implement a streamlined request for application process for existing California state preschool program contractors to be awarded new California state preschool program slots.
(2) The State Department of Education shall collaborate with the State Department of Social Services to ensure the streamlined request for application process pursuant to paragraph (1) is, where applicable, similar to the streamlined request for application process in the general childcare and development program.
(b) A contractor who meets any of the following conditions during a request for application cycle shall be ineligible for the streamlined request for application process:
(1) The contractor is on conditional status because of fiscal or programmatic noncompliance.
(2) The State Department of Education has conducted a review pursuant to Section 17794 of Title 5 of the California Code of Regulations and the contractor has failed to resolve items of fiscal and programmatic noncompliance identified in the review within 12 months of the issuance of the review report.
(3) The State Department of Education has evidence that the contractor has not been able to successfully fulfill current contract requirements by serving children in a quality program and fiscally responsible manner.
(4) As described in Section 8316, the contractor 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.
(5) The State Department of Education reduced the contractor’s current year maximum reimbursement amount due to the contractor’s inability to utilize its full contract amount because of low enrollment or low expenditures for the same contract type.
(6) The contractor was previously awarded state preschool program expansion funding and has not yet started to provide services with that funding.
(7) The contractor has an outstanding accounts receivable balance with the State Department of Education.
(8) The contractor has a delinquent audit pursuant to Section 17825 of Title 5 of the California Code of Regulations.

SEC. 17.

 Section 7927.305 of the Government Code is amended to read:

7927.305.
 (a) Notwithstanding any other provision of this division to the contrary, information regarding family childcare providers, as defined in subdivision (b) of Section 8431 10421 of the Education Welfare and Institutions Code, shall not be subject to public disclosure pursuant to this division, except as provided in subdivisions (b) and (c).
(b) Consistent with Section 8432 10422 of the Education 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 8432 10422 of the Education Welfare and Institutions Code. Information shall be made available consistent with the deadlines set in Section 8432 10422 of the Education 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 8432 10422 of the Education 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 8431 10421 of the Education Welfare and Institutions Code. Information shall be made available consistent with the deadlines set in Section 8432 10422 of the Education 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 permitted 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 daycare 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 8431 10421 of the Education 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 8432 10422 of the Education Welfare and Institutions Code by complying with the procedure set forth in subdivision (k) of Section 8432 10422 of the Education Code. Welfare and Institutions Code.

SEC. 18.

 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 childcare daycare 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 childcare daycare 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 childcare daycare homes, except as necessary for administering the licensing program, facilitating the placement of children in these facilities, program 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 childcare daycare homes. These regulations shall include procedures for updating lists or other information on small family childcare providers daycare homes to ensure referral only to licensed family childcare daycare homes in good standing with the department. Any person The department may deny any individual or entity violating that violates the regulations under adopted pursuant to this subdivision may be denied access by the department to information on small family childcare daycare homes and shall be reported by the department report these individuals or entities to the appropriate funding or licensing department. agency.

SEC. 19.

 Section 10212.6 is added to the Welfare and Institutions Code, to read:

10212.6.
 (a) It is the intent of the Legislature to add approximately 206,800 new childcare slots above the slot levels funded during the 2020–21 fiscal year, distributed as follows:
(1) Approximately 62,000 slots to general childcare and development programs (Chapter 7 (commencing with Section 10240)).
(2) Approximately 143,000 slots to alternative payment programs (Chapter 3 (commencing with Section 10225)).
(3) Approximately 1,300 slots to migrant alternative payment programs (Chapter 3 (commencing with Section 10225)).
(4) Approximately 500 slots to the Emergency Child Care Bridge Program under Section 11461.6.
(b) (1) As of May 15, 2024, the state has added funding to programs that, as of that date, resulted in an award of an estimated 118,800 new childcare slots to all of the following programs:
(A) An estimated 22,000 slots to general childcare and development programs.
(B) An estimated 95,000 slots to alternative payment programs.
(C) An estimated 1,300 slots to migrant alternative payment programs.
(D) An estimated 500 slots to the Emergency Child Care Bridge Program.
(2) It is the intent of the Legislature that the remaining new childcare slots described in subdivision (a) that have not been added and awarded as of January 1, 2024, may be distributed as follows:
(A) In the 2024–25 fiscal year, an estimated 11,000 slots to general childcare and development programs.
(B) In the 2026–27 fiscal year, 12,000 slots to general childcare and development programs and 32,000 slots to alternative payment programs, subject to an appropriation in the annual Budget Act.
(C) In the 2027–28 fiscal year, 17,000 slots to general childcare and development programs and 16,000 slots to alternative payment programs, subject to an appropriation in the annual Budget Act.
(D) In the 2028–29 fiscal year and each fiscal year thereafter, the total number of unawarded slots to general childcare and development programs from prior years and additional childcare slots needed to maintain total slot levels, as described in subdivision (a), subject to an appropriation in the annual Budget Act.
(3) Any unawarded slots described in paragraph (2) shall be distributed in each subsequent fiscal year that the slot remains unawarded to the same program specified in paragraph (2), subject to an appropriation in the annual Budget Act.
(4) (A) To distribute the General Childcare and Development slots described in paragraph (2), the State Department of Social Services shall release at least one request for applications in the fall of the applicable fiscal year. The department shall announce awards for new slots by April 1 of the applicable fiscal year, and shall execute contracts beginning on or after April 1 of the applicable fiscal year, contingent on submission of all required documentation by the applicant.
(B) Notwithstanding subparagraph (A), the department shall award contracts for services for 2024–25 awarded General Childcare and Development slots beginning on or after October 1, 2024, contingent on submission of all required documentation by the applicant.
(c) On an annual basis, the department shall revise the number of added and awarded slots described in paragraphs (1) and (2) of subdivision (b) based on final awardee data. Pursuant to subparagraph (D) of paragraph (2) of subdivision (b), to the extent that these updated slot estimates fall below total slot levels listed in subdivision (a), the department shall add, award, and put into contract additional slots to maintain total slot levels, to the extent requested, as described in subdivision (a), subject to an appropriation in the annual Budget Act.

SEC. 20.

 Section 10227.6 of the Welfare and Institutions Code is amended to read:

10227.6.
 (a) It is the intent of the Legislature to utilize an alternative methodology, as defined in subdivision (ak) of Section 10213.5, to inform the setting of reimbursement rates for subsidized childcare.
(b) Reimbursement rates are subject to agreement and codification by the Legislature.
(c) The department, in collaboration with the State Department of Education, shall develop and conduct an alternative methodology. The department shall begin the process of data collection and analysis pursuant to developing an alternative methodology by July 1, 2023, and consult with the State Department of Education on data collection, analysis, and methodology for preschool programs. The alternative methodology shall build on the recommendations of the working group established pursuant to Section 10280.2 and shall be aligned with the recommendations of the Joint Labor Management Committee established pursuant to Section 10280.2.
(d) No later than February 15, 2024, the department, in collaboration with the State Department of Education and the Joint Labor Management Committee established pursuant to subdivision (a) of Section 10280.2, using information from the cost estimation model, shall define elements of the base rate and any enhanced rates to inform the state’s proposed single rate structure and rates. These elements shall be subject to the mandated public engagement state plan process and legislative review. The department shall report to the Senate Health and Human Services budget subcommittees, Assembly and Senate Education budget subcommittees, and the Legislative Analyst’s Office on progress made to conduct an alternative methodology and cost estimate model.
(e) No later than May 15, 2024, the department shall report on the status of the draft Child Care and Development Fund state plan to the Senate Health and Human Services budget subcommittees, Assembly and Senate Education budget subcommittees, and the Legislative Analyst’s Office on the state’s proposed single rate structure to be submitted to the United States Department of Health and Human Services, Administration for Children and Families.
(f) No later than July 1, 2024, the department shall submit necessary information to support use of a single rate structure utilizing the alternative methodology to the United States Department of Health and Human Services, Administration for Children and Families in the Child Care and Development Fund state plan or an amendment to the state plan. The department shall provide a copy of the Child Care and Development Fund state plan or amendment to the state plan submitted to the United States Department of Health and Human Services, Administration for Children and Families to the Senate Health and Human Services budget subcommittees, Assembly and Senate Education budget subcommittees, and the Legislative Analyst’s Office no later than July 10, 2024.
(g) (1) Within 60 days of federal approval of the single rate structure utilizing the alternative methodology in the state plan, the department shall provide the Senate Health and Human Services budget subcommittees, Assembly and Senate Education budget subcommittees, Budget Committees and the Legislative Analyst’s Office an outline of with a report that outlines the implementation components for the approved single rate structure. For a period of 30 days, the Legislature shall have the opportunity to review and provide feedback regarding draft guidance for implementation of policies. The report shall include all of the following:
(A) The department’s plan to set new reimbursement rates under the alternative methodology by no later than July 1, 2025.
(B) The estimated costs and estimated timelines associated with the implementation components of the approved single rate structure, including, but not limited to, state operations resources, technology and infrastructure changes, and any regulatory or statutory changes necessary to implement the approved single rate structure.
(2) The department shall, beginning October 1, 2024, until January 1, 2026, provide the Assembly and Senate Budget Committees and the Legislative Analyst’s Office with quarterly updates on the implementation of the new reimbursement rates set under the alternative methodology. The quarterly updates shall include any changes to the information provided in the report described in paragraph (1).
(h) The Governor and the Legislature shall, by no later than July 1, 2025, establish reimbursement rates based on the alternative methodology. Provider reimbursement rates shall not be reduced from the reimbursement rates that were in effect on June 30, 2024, pursuant to Sections 10280 and 10374.5 of this code and Section 8242 of the Education Code, inclusive of the cost of care plus rates established pursuant to subdivision (b) of Section 10277.1 and subdivision (b) of Section 10277.2.
(i) (1) If the new reimbursement rates established pursuant to subdivision (h) do not take effect on July 1, 2025, the department shall provide the Legislature with a timeline for transitioning from the rates that are in effect on July 1, 2025, to the new rates established pursuant to subdivision (h).
(2) Any temporary reimbursement rates established as part of the transition timeline required by paragraph (1) shall be, at minimum, equivalent to the reimbursement rates established pursuant to Sections 10280 and 10374.5 of this code and Section 8242 of the Education Code, inclusive of the cost of care plus rates established pursuant to subdivision (b) of Section 10277.1 and subdivision (b) of Section 10277.2.

(h)

(j) The single rate structure shall apply to all programs funded by the State Department of Social Services under Chapter 3 (commencing with Section 10225), Chapter 6 (commencing with Section 10235), Chapter 7 (commencing with Section 10240), Chapter 8 (commencing with Section 10250), Chapter 9 (commencing with Section 10260), Chapter 21 (commencing with Section 10370), and Chapter 2 (commencing with Section 11461.6) of Part 2, and the State Department of Education under Chapter 2 (commencing with Section 8200) of Part 6 of Division 1 of Title 1 of the Education Code.

(i)

(k) If the United States Department of Health and Human Services, Administration for Children and Families does not approve the alternative methodology developed pursuant to this section, the department shall develop and conduct a survey of the market rates for childcare services.

(j)

(l) If the provisions of this section are in conflict with the provisions of a memorandum of understanding reached pursuant to Section 10426, 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.

SEC. 21.

 Section 10244 is added to the Welfare and Institutions Code, to read:

10244.
 (a) The department shall develop and implement a streamlined request for application process for current childcare and development program contractors to award new childcare and development program contracts.
(b) A current childcare and development contractor is ineligible for the streamlined request for application process when one or more of the following conditions apply during a request for application cycle:
(1) The contractor is on conditional status because of fiscal or programmatic noncompliance, as described in Section 18303 or 18304 of Title 5 of the California Code of Regulations.
(2) The contractor is on provisional status and is applying for additional funding. For purposes of this paragraph, a contractor is considered to be on provisional status if they were awarded a childcare and development contract in the prior year’s childcare and development expansion application cycle, regardless of whether a contract has been executed. A contractor remains on provisional status until they receive a clear contract from the department.
(3) The department has conducted a compliance review pursuant to Section 18023 of Title 5 of the California Code of Regulations, and the contractor has failed to clear items of fiscal and programmatic noncompliance identified in the review within 12 months of the issuance of the compliance review report, as described in Section 18001 of Title 5 of the California Code of Regulations.
(4) The contractor 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, as described in Section 10399.
(5) The contractor was previously awarded expansion funding and has not yet begun to provide services with that funding.
(6) The department has evidence that the contractor has not been able to successfully fulfill current contract requirements by serving children in a quality program and in a fiscally responsible manner
(7) The contractor has a delinquent audit with the department, as described in Section 18073 of Title 5 of the California Code of Regulations.
(c) The department shall collaborate with the State Department of Education to ensure, when applicable, and not in conflict with statutory or regulatory provisions, that the streamlined request for application process for childcare and development programs is similar to the streamlined request for application process in the California state preschool programs.
(d) The department has authority to consider scoring criteria as necessary to award contracts.

SEC. 22.

 Section 10267.5 of the Welfare and Institutions Code is amended to read:

10267.5.
 (a) The department 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:
(1) 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 on January 1, 1985, 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.
(2) 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.
(3) Specify adequate standards of agency performance.
(4) 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.
(5) Specify standards for withholding payments to agencies that fail to submit required fiscal reports.
(6) 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.
(7) Authorize the department to develop a process that requires may require every contracting agency to recompete for continued funding no less frequently than every five years.
(b) For purposes of expediting the implementation of state or federal legislation to expand childcare services, the department may do any of the following:
(1) Utilize an alternative application process in which the department will evaluate the ability and standing of existing contractors in determining allocation methodology and eligibility for funding.
(2) Waive the regulations regarding the point qualifications for, and the process and scoring of, applications of contract applicants pursuant to Section 18002 of Title 5 of the California Code of Regulations.

(b)

(3)  For purposes of expediting Waive the implementation of state or federal legislation to expand child care services, the department may waive (1) the regulations regarding the point qualifications for, and the process and scoring of, interviews of contract applicants pursuant to Section 18002 of Title 5 of the California Code of Regulations, or (2) the time limitations for scheduling and notification of appeal hearings and their results pursuant to Section 18003 of Title 5 of the California Code of Regulations. The department shall ensure that the appeal hearings provided for in Section 18003 of Title 5 of the California Code of Regulations are conducted in a timely manner.
(c) (1)  Child care Childcare and development programs operated under contract from funds made available pursuant to the federal Child Care and Development Fund shall be administered according to Chapter 19 (commencing with Section 17906) of Division 1 of Title 5 of the California Code of Regulations, unless provisions of these regulations conflict with federal regulations. If state and federal regulations conflict, the federal regulations shall apply unless a waiver of federal regulations is authorized.
(2) For purposes of this section, “Child Care and Development Fund” has the same meaning as in Section 98.2 of Title 45 of the Code of Federal Regulations.

SEC. 23.

 Section 10602.1 is added to the Welfare and Institutions Code, to read:

10602.1.
 No later than May 14, 2025, and no later than May 14 every year thereafter, the State Department of Social Services shall provide the Joint Legislative Budget Committee and the Senate and Assembly Budget committees with a proposed list of quality improvement activities, including funding totals by activity, that will be funded in the next fiscal year with federal Child Care and Development Funds pursuant to Section 98.53 of Title 45 of the Code of Federal Regulations.

SEC. 24.

 For the 2024–25 fiscal year, the sum of three hundred twenty-eight thousand dollars ($328,000) in federal funds is hereby appropriated from the Federal Trust Fund to allow the State Department of Social Services to assist the California Health and Human Services Agency with the administration of the Preschool Development Grant.

SEC. 25.

  No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIII B of the California Constitution.

SEC. 26.

  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.
SECTION 1.

It is the intent of the Legislature to enact statutory changes, relating to the Budget Act of 2023.