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AB-540 Child care: alternative payment programs: reimbursement rates.(2017-2018)

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Date Published: 03/23/2017 09:00 PM
AB540:v98#DOCUMENT

Amended  IN  Assembly  March 23, 2017

CALIFORNIA LEGISLATURE— 2017–2018 REGULAR SESSION

Assembly Bill No. 540


Introduced by Assembly Member Mullin

February 13, 2017


An act to amend Section 8213 8223 of the Education Code, relating to child care.


LEGISLATIVE COUNSEL'S DIGEST


AB 540, as amended, Mullin. Child care and developmental services. Child care: alternative payment programs: reimbursement rates.
The Child Care and Development Services Act has a purpose of providing a comprehensive, coordinated, and cost-effective system of child care and development services for children from infancy to 13 years of age and their parents, including a full range of supervision, health, and support services through full- and part-time programs. Existing law requires the Superintendent of Public Instruction to develop standards for the implementation of quality child care programs. Existing law authorizes various counties, as a pilot project, to develop an individualized county child care subsidy plan, as provided. Existing law provides for child care alternative payment programs, the purpose of which is to provide for maximum parental choice in child care. Existing law requires reimbursement for alternative payment programs to include the cost of child care paid to child care providers, plus administrative and support services costs. Under existing law, the total cost for administrative and support services is not permitted to exceed 17.5% of the total contract amount.

This bill would provide that it is the intent of the Legislature to create legislation that would establish an optional statewide child care and education subsidy policy program to increase and encourage county and regional collaboration among subsidized early care and education programs and providers in order to increase access to subsidized services for children and families, promote local flexibility to meet the unique needs of children and families in each county or region, and maximize the utilization of the allocated funding within the county or region.

Existing law provides that it is the intent of the Legislature to appropriate money each fiscal year for allocation to child care and development resources and referral programs. Existing law requires child care resource and referral programs to provide specified services and requires the services to be provided in a manner that is responsive to the diverse cultural, linguistic, and economic needs of a defined geographic area of service.

This bill would require child care resource and referral services to also be provided in a manner that is responsive to the social needs of a defined geographic area of service.

This bill would provide that the administrative and support services are not permitted to exceed 17.6% of the total contract amount.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: NOYES   Local Program: NO  

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


SECTION 1.

 Section 8223 of the Education Code is amended to read:

8223.
 The reimbursement for alternative payment programs shall include the cost of child care paid to child care providers plus the administrative and support services costs of the alternative payment program. The total cost for administration and support services shall not exceed an amount equal to 17.5 17.6 percent of the total contract amount. The administrative costs shall not exceed the costs allowable for administration under federal requirements.

SECTION 1.

It is the intent of the Legislature to create legislation that would establish an optional statewide child care and education subsidy policy program to increase and encourage county and regional collaboration among subsidized early care and education programs and providers in order to increase access to subsidized services for children and families, promote local flexibility to meet the unique needs of children and families in each county or region, and maximize the utilization of the allocated funding within the county or region.

SEC. 2.Section 8213 of the Education Code is amended to read:
8213.

All child care resource and referral services shall be provided in a manner that is responsive to the diverse cultural, linguistic, social, and economic needs of a defined geographic area of service.