BILL NUMBER: SB 1410 AMENDED
BILL TEXT
AMENDED IN SENATE MARCH 27, 2008
INTRODUCED BY Senator Corbett
FEBRUARY 21, 2008
An act to amend Sections 8265, 8265.5, and 8265.7 of the Education
Code, relating to child care.
LEGISLATIVE COUNSEL'S DIGEST
SB 1410, as amended, Corbett. Child care: reimbursement rate.
The Child Care and Development Services Act establishes a system
of child care and development services for children up to 13 years of
age , and requires the Superintendent of Public
Instruction to assign reimbursement rates to be paid by the state for
the provision of those services. The act establishes a procedure for
agencies that are awarded direct services contracts with the state.
This bill would revise the reimbursement rate to include the
regional market rate for licensed exempt care of that county or the
existing reimbursement rate, whichever is higher. The bill would
require programs in counties that qualify for reimbursement based on
the regional market rate to demonstrate a statewide increase in the
aggregate number of child days of enrollment by the end of
the 6 th fiscal year of operation under the
authorized rate if that rate is based on the regional market rate and
would make related changes to that with respect to
reimbursement for licensed-exempt care, as specified.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. It is the intent of the Legislature to do all of the
following:
(a) Support child care centers that provide early care and
education to infants, toddlers, and preschool and school age
children.
(b) Recognize child care centers that have complied with state
health and safety standards.
(c) Value child care centers that have ongoing educational
training for staff.
(d) Provide a safety net child care structure for working families
within their own communities.
(e) Ensure that an increase to the reimbursement rate for child
care centers will not be to the detriment of other child development
programs, and that any increased amount of funding needed will not be
taken from the budget of other programs but will be appropriated by
the Legislature.
SEC. 2. Section 8265 of the Education Code is amended to read:
8265. (a) The Superintendent shall implement a plan that
establishes reasonable standards and assigned reimbursement rates,
which vary with the length of the program year and the hours of
service.
(1) Parent fees shall be used to pay reasonable and necessary
costs for providing additional services.
(2) When establishing standards and assigned reimbursement rates,
the Superintendent shall confer with applicant agencies.
(3) The reimbursement system, including standards and rates, shall
be submitted to the Joint Legislative Budget Committee.
(4) The Superintendent may establish any regulations he or she
deems advisable concerning conditions of service and hours of
enrollment for children in the programs.
(b) (1) The standard reimbursement rate shall be three thousand
five hundred twenty-three dollars ($3,523) per unit of average daily
enrollment for a 250-day year, increased by the cost-of-living
adjustment granted by the Legislature beginning July 1, 1980, or the
daily regional market rate for licensed-exempt care of that county,
whichever is greater.
(2) (A) Direct service contract child care
agencies shall have their contract rates changed during the
2008-09 fiscal year to reflect the standard reimbursement rate
set forth in paragraph (1), or by the provisions of Section 8447 for
the regional market rate, whichever is greater. The Superintendent
shall implement the regional market rate for direct service contract
child care agencies using the higher of the daily, weekly, or monthly
rates within the regional market rate study for licensed-exempt
care. The use of the regional market rate instead of the standard
reimbursement rate shall not increase the agency's total annual
allocation. Moneys to increase the reimbursement for state-subsidized
child care centers shall not be taken from other child development
programs.
(B) This paragraph applies to pilot projects in the County of San
Mateo and the City and County of San Francisco established pursuant
to Section 8335 or 8340, except that the contract rate change shall
reflect the standard reimbursement rate set forth in paragraph (1) or
the regional market rate established pursuant to the pilot project,
whichever is greater.
(c) The plan shall require agencies having an assigned
reimbursement rate above the current year standard reimbursement rate
to reduce costs on an incremental basis to achieve the standard
reimbursement rate.
(d) The plan shall provide for adjusting reimbursement on a
case-by-case basis, in order to maintain service levels for agencies
currently at a rate less than the standard reimbursement rate or
regional market rate for licensed-exempt care within the same county.
Assigned reimbursement rates shall be increased only on the basis of
one or more of the following:
(1) Loss of program resources from other sources.
(2) Need of an agency to pay the same child care rates as those
prevailing in the local community.
(3) Increased costs directly attributable to new or different
regulations.
(4) Documented increased costs necessary to maintain the prior
year's level of service and ensure the continuation of threatened
programs.
Child care agencies funded at the lowest rates shall be given
first priority for increases.
(e) The plan shall provide for expansion of child development
programs at no more than the standard reimbursement rate or the
regional market rate for licensed-exempt care within the same county
for that fiscal year. Moneys to increase the reimbursement rate for
state-subsidized child care programs shall not be taken from other
child development programs.
(f) The Superintendent may reduce the percentage of reduction for
a public agency that satisfies any of the following:
(1) Serves more than 400 children.
(2) Has in effect a collective bargaining agreement.
(3) Has other extenuating circumstances that apply, as determined
by the Superintendent.
SEC. 3. Section 8265.5 of the Education Code is amended to read:
8265.5. (a) In order to reflect the additional expense of serving
children who meet any of the criteria outlined in paragraphs (1) to
(7), inclusive, of subdivision (b) the provider agency's reported
child days of enrollment for these children shall be multiplied by
the adjustment factors listed below applied to the standard
reimbursement rate or the regional market rate for licensed-exempt
care within the same county, whichever is greater.
(b) The adjustment factors shall apply to those programs for which
assigned reimbursement rates are at or below the standard
reimbursement rate. In addition, the adjustment factors shall apply
to those programs for which assigned reimbursement rates are above
the standard reimbursement rate, but the reimbursement rate, as
adjusted, shall not exceed the adjusted standard reimbursement rate.
If the assigned reimbursement rate is based on the regional
market rate, the adjustment factors shall be calculated using that
assigned reimbursement rate.
(1) For infants who are 0 to 18 months of age and are served in a
child day care center, the adjustment factor shall be 1.7.
(2) For toddlers who are 18 to 36 months of age and are served in
a child day care center, the adjustment factor shall be 1.4.
(3) For infants and toddlers who are 0 to 36 months of age and are
served in a family child care home, the adjustment factor shall be
1.4.
(4) For children with exceptional needs who are 0 to 21 years of
age, the adjustment factor shall be 1.2.
(5) For severely disabled children who are 0 to 21 years of age,
the adjustment factor shall be 1.5.
(6) For a child at risk of neglect, abuse, or exploitation who are
0 to 14 years of age, the adjustment factor shall be 1.1.
(7) For limited-English-speaking and non-English-speaking children
who are 2 years of age through kindergarten age, the adjustment
factor shall be 1.1.
(c) Use of the adjustment factors shall not increase the provider
agency's total annual allocation.
(d) Days of enrollment for children having more than one of the
criteria outlined in paragraphs (1) to (7), inclusive, of subdivision
(b) shall not be reported under more than one of the above
categories.
(e) The difference between the reimbursement resulting from the
use of the adjustment factors outlined in paragraphs (1) to (7),
inclusive, of subdivision (b) and the reimbursement that would
otherwise be received by a provider in the absence of the adjustment
factors shall be used for special and appropriate services for each
child for whom an adjustment factor is claimed.
SEC. 4. Section 8265.7 of the Education Code is amended to read:
8265.7. (a) Notwithstanding Section 8265,
programs above the standard reimbursement rate and the regional
market rate for licensed-exempt care within the same county may be
considered on a case-by-case basis for rate adjustments due to
documented increases in insurance costs.
(b) By the end of the sixth fiscal year of operation under a rate
increase authorized pursuant to subdivision (b) of Section 8265,
programs in counties that qualify for reimbursement based on the
regional market rate shall demonstrate a statewide increase in the
aggregate number of child days of enrollment.