BILL NUMBER: AB 1571 CHAPTERED 10/10/07 CHAPTER 415 FILED WITH SECRETARY OF STATE OCTOBER 10, 2007 APPROVED BY GOVERNOR OCTOBER 10, 2007 PASSED THE SENATE SEPTEMBER 10, 2007 PASSED THE ASSEMBLY SEPTEMBER 12, 2007 AMENDED IN SENATE SEPTEMBER 5, 2007 AMENDED IN SENATE AUGUST 31, 2007 AMENDED IN SENATE AUGUST 1, 2007 AMENDED IN SENATE JULY 17, 2007 AMENDED IN ASSEMBLY APRIL 16, 2007 INTRODUCED BY Assembly Member DeSaulnier FEBRUARY 23, 2007 An act to amend Section 8222.1 of the Education Code, relating to child care. LEGISLATIVE COUNSEL'S DIGEST AB 1571, DeSaulnier. Child care: alternative payment programs: reimbursement. The Child Care and Development Services Act requires the State Department of Education to reallocate specified funds to reimburse alternative payment programs for actual and allowable costs incurred for additional services. Alternative payment programs are authorized to apply for reimbursement in an amount not to exceed $5,000 or 2% of the contract amount, whichever is greater. Alternative payment programs that receive reimbursement funds for 2 consecutive years are prohibited from applying for reimbursement funds for the following year. This bill instead would authorize alternative payment programs, excluding programs that provide child care services to CalWORKs recipients, to apply for reimbursement of up to 3% of the contract amount, or for a greater amount subject to the discretion of the department based on the availability of funds. The prohibition on applying for reimbursement funds for a 3rd consecutive year would be deleted. The department would be required to approve or deny applications submitted on or before September 30 of each calendar year. The department would be required to distribute reimbursement funds for each approved application within 90 days of receiving the application if it was filed within a specified date range. If requests for reimbursement exceed available funds, the department would be required to assign priority for reimbursement according to the order in which it receives applications. Alternative payment programs would be required to return to the department reimbursement funds that are not substantiated by the program's annual audit. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Section 8222.1 of the Education Code is amended to read: 8222.1. Out of funds appropriated in accordance with paragraph (2) of subdivision (b) of Section 8278 for alternative payment programs, the department shall reallocate funds as necessary to reimburse alternative payment programs, excluding programs operating pursuant to Article 15.5 (commencing with Section 8350), for actual and allowable costs incurred for additional services. An alternative payment program may apply for reimbursement of up to 3 percent of the contract amount, or for a greater amount subject to the discretion of the department based on the availability of funds. The department shall approve or deny applications submitted pursuant to this section, but shall not consider applications received after September 30 of the current calendar year. The department shall distribute reimbursement funds for each approved application within 90 days of receipt of the application if it was filed between May 1 and July 20, inclusive, of the current calendar year. Applications received after July 20 are not subject to the 90-day requirement for the distribution of funds. If requests for reimbursement pursuant to this section exceed available funds, the department shall assign priority for reimbursement according to the order in which it receives applications. Funds received by an alternative payment program pursuant to this section that are not substantiated by the program's annual audit shall be returned to the department.