Amended in Senate March 12, 2013

Senate Bill No. 192

Introduced by Senator Liu

February 7, 2013

An act to amend begin delete Sections 8202, 8214, 8220.5, and 8352 of the Education Code, relating to child care. end delete begin insert Section 8385 of, to amend the heading of Chapter 2 (commencing with Section 8200) of Part 6 of Division 1 of Title 1 of, to amend and renumber Sections 8210, 8212, 8212.3, 8213, 8214, 8215, 8216, 8238, 8238.4, 8264.5, 8265, 8265.1, 8265.5, 8265.7, 8266, 8266.1, 8266.5, 8268, 8271, 8275, 8276.5, 8277, 8277.1, 8277.2, 8277.3, 8277.4, 8277.5, 8277.6, 8277.65, 8277.66, 8277.7, 8277.8, 8278.3, 8279.1, 8279.4, 8279.5, 8279.6, 8279.7, 8320, 8321, 8322, 8324, 8326, 8327, 8329, 8330, 8331, 8335, 8335.1, 8335.2, 8335.3, 8335.4, 8335.5, 8335.6, 8335.7, 8340, 8341, 8341.5, 8342, 8343, 8344, 8345, 8346, 8351, 8352, 8353, 8354, 8355, 8356, 8356.1, 8358.5, 8359, 8359.1, 8362, 8363, 8363.5, 8368, 8369, 8402, 8403, 8404, 8405, 8406, 8406.6, 8406.7, 8406.9, 8407, 8408, 8409, 8441, 8442, 8444, 8445, 8447, 8447.5, 8450, 8493, 8494, 8495, 8495.1, 8496, 8498, 8499.3, 8499.5, and 8499.7 of, to amend and renumber the heading of Article 16.5 (commencing with Section 8385) of Chapter 2 of Part 6 of Division 1 of Title 1 of, to amend, renumber, and repeal Section 8350.5 of, to add Sections 8292 and 8293 to, to add the heading of Article 8 (commencing with Section 8296) to, to add the heading of Article 9 (commencing with Section 8300) to, to add the heading of Article 10 (commencing with Section 8305) to, to add the heading of Article 14 (commencing with Section 8365) to, to add the heading of Article 18 (commencing with Section 8407) to, to add the heading of Article 25 (commencing with Section 8490) to, and to add the heading of Article 26 (commencing with Section 8492) to, Chapter 2 of Part 6 of Division 1 of Title 1 of, to add Article 2 (commencing with Section 8210) to, to add Article 4 (commencing with Section 8240) to, to add Article 4.5 (commencing with Section 8252) to, to add Article 5 (commencing with Section 8260) to, to add Article 6 (commencing with Section 8270) to, to add Article 11 (commencing with Section 8310) to, to add Article 12 (commencing with Section 8325) to, to add Article 13 (commencing with Section 8350) to, to add Article 14.5 (commencing with Section 8370) to, to add Article 14.7 (commencing with Section 8377) to, and to add Article 15 (commencing with Section 8380) to, Chapter 2 of Part 6 of Division 1 of Title 1 of, to repeal Sections 8350 and 8499 of, to repeal the heading of Article 2 (commencing with Section 8210) of, to repeal the heading of Article 6 (commencing with Section 8230) of, to repeal the heading of Article 7 (commencing with Section 8235) of, to repeal the heading of Article 12 (commencing with Section 8275) of, to repeal the heading of Article 15 (commencing with Section 8320) of, to repeal the heading of Article 15.2 (commencing with Section 8335) of, to repeal the heading of Article 15.3 (commencing with Section 8340) of, to repeal the heading of Article 15.5 (commencing with Section 8350) of, to repeal the heading of Article 18 (commencing 8400) of, to repeal the heading of Article 20 (commencing with Section 8440) of, to repeal the heading of Article 21 (commencing with Section 8448) of, to repeal the heading of Article 23 (commencing with Section 8485) of, and to repeal the heading of Article 24 (commencing with Section 8493) of, Chapter 2 of Part 6 of Division 1 of Title 1 of, to repeal the heading of Article 1 (commencing with Section 8499) of, and to repeal the heading of Article 2 (commencing with Section 8499.3) of, Chapter 2.3 of, and to repeal the heading of Chapter 2.3 (commencing with Section 8499) of, Part 6 of Division 1 of Title 1 of, to repeal Article 8 (commencing with Section 8240) of, to repeal Article 8.5 (commencing with Section 8245) of, to repeal Article 9 (commencing with Section 8250) of, to repeal Article 10 (commencing with Section 8255) of, and to repeal Article 14 (commencing with Section 8286) of, Chapter 2 of Part 6 of Division 1 of Title 1 of, to repeal and add Article 1 (commencing with Section 8200) of, and to repeal and add Article 3 (commencing with Section 8220) to, Chapter 2 of Part 6 of Division 1 of Title 1 of, the Education Code, relating to early learning and educational support services. end insert

LEGISLATIVE COUNSEL’S DIGEST

SB 192, as amended, Liu. begin delete Child care: early end delete begin insert Early end insert learning and begin delete school end delete begin insert educational end insert support begin delete resources. end delete begin insert services. end insert

begin insert

The Child Care and Development Services Act, administered by the Superintendent of Public Instruction, requires the Superintendent to administer child care and development programs that offer a full range of services for eligible 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.

end insert begin insert

This bill would reorganize and recast those provisions as the Early Learning and Educational Support Act, and would establish as its purpose providing a comprehensive early learning and educational support system that promotes access to safe, high-quality early learning and educational support programs, as specified. The bill would require the Superintendent to administer the early learning and educational support program through direct classroom or alternative payment services, and would require the Superintendent to develop requirements for the implementation of high-quality early learning and educational support programs based on certain indicia of quality, including, but not limited to, effective educators that foster school readiness and possess the appropriate and required educational qualifications and experience, including any required credentials or permits, as required by the Commission on Teacher Credentialing, and who meet applicable licensing standards. The bill, when expansion funding is made available for direct classroom service programs, would require priority for funding to be given to certain elementary schools ranked in deciles 1 to 3, inclusive, on the Academic Performance Index. The bill would delete obsolete provisions, make conforming changes, and make nonsubstantive changes.

end insert begin delete

The Child Care and Development Services Act (act), administered by the State Department of Education, provides that children from infancy to 13 years of age and their parents are eligible, with certain requirements, for child care and development services. The act declares the intent of the Legislature that all families have accesses to child care and development services through resource and referral programs, as specified.

end delete begin delete

This bill would additionally declare the intent of the Legislature that all children in California have access to high-quality early learning and education support programs so that they thrive in their early learning settings and succeed throughout kindergarten and grades 1 to 12, inclusive, as specified.

end delete begin delete

The act provides that child care resource and referral services shall be provided to all persons requesting services and to all types of child care providers, regardless of income level or other eligibility criteria. The act provides for child care alternative payment programs, the purpose of which is to provide for parental choice in child care, and requires those programs to provide support services to families, including information to parents to assist them in making informed choices. Existing law also requires that child care be provided in 3 stages to recipients of benefits under the California Work Opportunity and Responsibility to Kids (CalWORKs) program. The first stage of child care begins upon the entry of a person into the CalWORKs program. The 2nd stage of child care begins when a county determines that the work or approved work activity of the recipient is stable or when a recipient is making the transition off of aid and child care. The 3rd stage of child care, which is administered by programs contracting with the department, begins when a funded child care space becomes available for the child or children of the eligible CalWORKs recipient.

end delete begin delete

This bill would require child care resource and referral programs to provide information about certain child care services available when a family is determined eligible for child care and development services or recertified as eligible for those services under the alternative payment program or stages 2 or 3 of the CalWORKs program. The bill would require child care resource and referral agencies to give priority to providing information about safe, caring, and age-appropriate early learning and school support environments for children as well as environments that support the parents’ work activity. The bill would require the department to develop and certify a list of high-quality early learning and school support resources and to post the list on its Internet Web site. The bill would provide that in providing information about child care, child care resource and referral agencies may use resources from the department’s certified list or local resources, as specified.

end delete

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.

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

begin insert

begin insert SECTION 1. end insert   

end insert

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

 

Chapter  2. begin delete Child Care and Development Services end delete begin insert Early
Learning and Educational Support end insert Act

 

begin insert

begin insert SEC. 2. end insert   

end insert

begin insert Article 1 (commencing with Section 8200) of Chapter
2 of Part 6 of Division 1 of Title 1 of the end insert begin insert Education Code end insert begin insert is
repealed. end insert

begin insert

begin insert SEC. 3. end insert   

end insert

begin insert Article 1 (commencing with Section 8200) is added to
Chapter 2 of Part 6 of Division 1 of Title 1 of the end insert begin insert Education Code end insert begin insert ,
to read: end insert

begin insert

 

Article begin insert 1. end insert   General Provisions

 

begin insert 8200. end insert   

This chapter shall be known and may be cited as the
Early Learning and Educational Support Act.

begin insert 8201. end insert   

The purpose of this chapter is as follows:

(a) To provide a comprehensive early learning and educational
support system that promotes access to safe, high-quality early
learning and educational support programs that will promote
comprehensive support for the development of the whole child that
includes all of the following:

(1) Developmentally appropriate curriculum with differentiated
instruction.

(2) Knowledgeable, caring, well-trained, and effective educators,
program staff, and providers.

(3) Promotion of healthy practices and activities.

(4) An educationally enriched environment that respects and
supports cultural, linguistic, and ability diversity.

(b) To encourage community-level coordination in support of
early learning and educational support services.

(c) Positive parenting through the understanding of healthy
development and the importance of high-quality early learning
opportunities for school readiness.

(d) The development of the ability to measure outcomes
assessing early learning and educational support programs.

(e) To establish a framework for the expansion of early learning
and educational support services.

begin insert 8202. end insert   

(a) To ensure that all children in California have access
to high-quality early learning and educational support programs
so that they thrive in their early learning settings and succeed
entering kindergarten through their school education and adult
life, it is the intent of the Legislature that:

(1) All families have access to safe, high-quality early learning
and educational support services that support the development of
the whole child, including healthy physical, cognitive, and social
and emotional growth and development of children, regardless of
ethnic status, cultural background, or special needs.

(2) Subsidized early learning and educational support services
are provided to persons meeting the eligibility criteria established
under this chapter to the extent funding is made available by the
Legislature and Congress.

(3) Community-level coordination between early learning and
educational support programs and other human services
organizations is encouraged.

(4) Parents and families are fully informed of their rights and
responsibilities to select safe and high-quality early learning and
educational support programs.

(5) Planning for expansion of early learning and educational
support programs be based on ongoing local needs assessments
and targeted to the catchment areas of the lowest performing
schools based on the most recent Academic Performance Index.

(6) Families achieve and maintain their personal, social,
economic, and emotional stability through an opportunity to attain
financial stability through employment and work support activities,
while maximizing the growth and development of their children,
and supporting parental participation in the educational
development and success of their children.

(7) Early learning and educational support staff be culturally
and linguistically diverse, and effectively foster and support school
readiness, healthy development, and improved child outcomes.

(b) Sustained support of professional development and
preparation shall focus on educator effectiveness with children
and families in their programs that include, but are not be limited
to, the following:

(1) Academic support.

(2) Higher education articulation.

(3) Career advancement.

(4) Evidence-based coaching and mentoring.

(5) Effective child-teacher interactions.

(6) Training on research-based tools and resources aligned to
the California foundations, frameworks, guidelines, and early
childhood educator competencies.

(7) Retention of high-quality educators.

(8) Adequate compensation and incentives for professional
growth.

(9) Strong leadership and management practices.

(c) The Superintendent shall coordinate with the First 5
California and the First 5 county commissions and other federal,
state, and local agencies to support improved alignment and
access, including, but not limited to, support services, quality
enhancements, and additional training and resources in early
learning and educational support programs and staff.

(d) The department shall create, administer, and support a
comprehensive early learning and educational support
infrastructure that promotes and fosters school readiness, healthy
development, and improved child outcomes.

(e) The Superintendent, in providing funding to early learning
and educational support agencies, shall promote a range of
services that allow parents the opportunity to choose the type of
care most suited to their needs. The program scope may include
the following:

(1) Programs located in centers, family day care homes, or in
the child’s own home.

(2) Services provided part-day, full-day, and during nonstandard
hours, including weekend care, night and shift care, before and
after school care, and care during holidays and vacation.

(3) Early learning and educational support services provided
for infants and toddlers, preschool, and schoolage children.

(f) The Superintendent shall be responsible for the establishment
of a public hearing process or other public input process that
ensures the participation of those agencies directly affected by a
particular section or sections of this chapter.

(g) The department shall consolidate contracts for agencies
providing direct classroom services into a single contract in order
to ease administration, reduce reporting and auditing
requirements, and ensure that special populations continue to
receive services and supports.

(h) The department shall administer the alternative payment
and CalWORKs Stage 2 and Stage 3 voucher programs in order
to maximize and support parental choice in caregiver selection.

(i) The department shall review existing resources and
opportunities for consumer education in order to expose parents
to a variety of strategies and learning opportunities to support
caregiver choices. These resources shall include all of the
following:

(1) The options that parents may select.

(2) The benefits of each option.

(3) The educational and socioemotional development of
expectations of children at various ages.

(j) The department shall annually review a variety of existing
requirements in order to consider alternatives that reduce
administrative burden and cost and streamline program
administration.

(k) As additional funding becomes available, the department
shall review options to implement a statewide quality rating and
improvement system to obtain data on the effectiveness and success
of California’s early learning and educational support programs,
including program quality improvements and early educator and
child outcomes.

begin insert 8203. end insert   

(a) The Superintendent shall ensure that each contract
under this chapter provides early learning and educational support
services and, to facilitate the provision of those services, promotes
children’s school readiness and subsequent school success through
the delivery of appropriate high-quality educational services to
the children served pursuant to the contract.

(b) The Superintendent shall adopt rules and regulations on
eligibility, enrollment, and priority of services needed to implement
this chapter.

begin insert 8205. end insert   

It is the intent of the Legislature that, in providing early
learning and educational support programs, the Superintendent
shall do the following:

(a) Develop an early learning and educational support system
that allows maximum parental choice by providing both direct
classroom and alternative payment services.

(b) Give priority to children of families that qualify under
applicable federal statutes or regulations as recipients of public
assistance and other low-income and disadvantaged families.
Federal reimbursement shall be claimed for any child receiving
services under this chapter for whom federal funds are available.

begin insert 8206. end insert   

The Superintendent, with funds appropriated for this
purpose, shall administer early learning and educational support
programs through direct classroom or alternative payment
services. These programs shall include, but are not limited to, the
following:

(a) Age and developmentally appropriate activities for children.

(b) Supervision.

(c) Parenting education and parent engagement.

(d) Developmental and health services.

(e) Nutrition.

(f) Family support services that include, but are not limited to,
assessment of child and family needs and referral to appropriate
human services organizations.

(g) Training, professional development, and career advancement
opportunities, documentation of which shall be provided to the
department.

begin insert 8207. end insert   

Programs operated pursuant to this chapter may be
designed to meet child-related needs identified by parents or
guardians that may include, but are not limited to, the following:

(a) Care for schoolage children during nonschool hours.

(b) Weekend care.

(c) Nightshift care.

(d) Worksite care.

(e) Temporary emergency child care.

(f) Child care for ill children.

begin insert 8208. end insert   

As used in this chapter:

(a) “Administrative responsibility” means awareness of the
financial and business circumstances of the program, and, in
appropriate cases, supervision of administrative and support
personnel, and knowledge and authority to direct or modify
administrative practices and procedures to ensure compliance
with administrative and financial standards imposed by law.
Additionally, “administrative responsibility” includes acting as
the representative for the early learning and educational support
program to the department. For programs operated through family
child care homes, “administrative responsibility” includes ensuring
that quality services are provided in the family child care homes.

(b) “Alternative payments” includes payments that are made
by one agency to another agency or provider for the provision of
early learning and educational support services, and payments
that are made by an agency to a parent for the parent’s purchase
of early learning and educational support services.

(c) “Alternative payment program” means an agency that has
contracted with the department pursuant to Section 8362 to provide
alternative payments and to provide support services to parents
and providers.

(d) “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.

(e) “Assigned reimbursement rate” is that rate established by
the contract with the agency and is derived by dividing the total
dollar amount of the contract by the minimum child day of average
daily enrollment level of service required.

(f) “Attendance” means the number of children present at a
child care and development facility where services are being
provided.

(1) For purposes of reimbursement to direct classroom
programs, attendance includes excused absences of 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.

(2) For purposes of reimbursement to providers through an
alternative payment services program, “attendance” includes
either of the following:

(A) The hours of service provided that are consistent with
certified hours of need.

(B) In the case of license-exempt providers that provide
part-time services, the actual days and hours of attendance.

(g) “Block grant” means the block grant contained in the federal
Title VI of the Child Care and Development Fund, as established
by the federal Personal Responsibility and Work Opportunity
Reconciliation Act of 1996 (Public Law 104-193).

(h) “California state preschool services” means part-day and
full-day educational services designed to facilitate the transition
to kindergarten for low-income or otherwise disadvantaged three-
and four-year-old children.

(i) “Capital outlay” means the amount paid for the renovation
and repair of child care and development facilities to comply with
state and local health and safety standards, and the amount paid
for the state purchase of relocatable child care and development
facilities for lease to qualifying contracting agencies.

(j) “Caregiver” means a person who provides direct care,
supervision, and guidance to children in a child care and
development facility.

(k) “Child care” means all licensed early learning and
educational support services and all license-exempt care, including
but not limited to, private for-profit programs, nonprofit programs,
and publicly funded programs, for all children from infancy to 13
years of age, including children with exceptional needs and
children from all linguistic and cultural backgrounds.

(l) “Child care and development facility” means a residence
or building or part thereof in which early learning and educational
support services are provided.

(m) “Child care provider” means a person who provides child
care services or who represents persons who provide child care
services.

(n) “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.

(o) “Children with exceptional needs” means either of the
following:

(1) Infants and toddlers under three years of age who have been
determined to be eligible for early intervention services pursuant
to the California Early Intervention Services Act (Title 14
(commencing with Section 95000) of the Government Code) and
its implementing regulations. These children include an infant or
toddler with a developmental delay or established risk condition,
or who is at high risk of having a substantial developmental
disability, as defined in subdivision (a) of Section 95014 of the
Government Code. These children shall have active individualized
family service plans, shall be receiving early intervention services,
and shall be children who require the special attention of adults
in a child care setting.

(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, shall be receiving early
intervention services or appropriate special education and related
services, and shall be children who require the special attention
of adults in a child care setting. These children include children
with intellectual disabilities, hearing impairments (including
deafness), speech or language impairments, visual impairments
(including blindness), serious emotional disturbance (also referred
to as emotional disturbance), orthopedic impairments, autism,
traumatic brain injury, other health impairments, or specific
learning disabilities, who need special education and related
services consistent with Section 1401(3)(A) of Title 20 of the United
States Code.

(p) “Closedown costs” means reimbursements for all approved
activities associated with the closing of operations at the end of
each growing season for migrant services only.

(q) “Community representative” means a person who represents
an agency or business that provides private funding for child care
services, or who advocates for child care services through
participation in civic or community-based organizations but is not
a child care provider and does not represent an agency that
contracts with the department to provide early learning and
educational support services.

(r) “Consumer” means a parent or person who receives, or
who has received within the past 36 months, child care services.

(s) “Cost” includes, but is not limited to, expenditures that are
related to the operation of early learning and educational support
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.

(t) “Department” means the State Department of Education.

(u) “Developmental and 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) Developmental and 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.

(v) “Early learning and educational support programs” means
those programs that offer a full range of services designed to meet
a wide variety of needs of children, from infancy to 13 years of
age, and their families. Services provided by an applicant or
contracting agency can be for any part of the day that a parent is
working, in training or seeking employment, incapacitated, or in
need of respite. These services may include, but are not limited to,
direct classroom and alternative payment services.

(w) “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 early learning and
educational support programs, for the purpose of the cancellation
provisions of loans to students in institutions of higher learning.

(x) “Family child care home education network” means an
entity organized under law that contracts with the department
pursuant to Section 8229 to make payments to licensed family child
care home providers and to provide educational and support
services to those providers and to children and families eligible
for state-subsidized early learning and educational support
services. A family child care home education network may also be
referred to as a family child care home system.

(y) “Four-year-old children” means children who will have
their fourth birthday on or before the date specified in the fiscal
year in which they are enrolled in a California state preschool
program, as follows:

(1) November 1 of the 2012-13 fiscal year.

(2) October 1 of the 2013-14 fiscal year.

(3) September 1 of the 2014-15 fiscal year and each fiscal year
thereafter.

(z) “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.

(aa) “Intergenerational staff” means persons of various
generations.

(ab) A “limited-English-speaking-proficient child” or
“non-English-speaking-proficient child” means a child who is
unable to benefit fully from an English-only early learning and
educational support program as a result of either of the following:

(1) Having used a language other than English when the child
first began to speak.

(2) Having a language other than English predominantly or
exclusively spoken at home.

(ac) “Local educational agency” means a school district, a
county office of education, a community college district, or a school
district on behalf of one or more schools within the school district.

(ad) “Local planning council” means a local child care and
development planning council as described in Section 8300.

(ae) “Migrant agricultural worker family” means a family, with
at least one parent that has earned at least 50 percent of his or
her income from employment in fishing, agriculture, or
agriculturally related work during the 12-month period
immediately preceding the date of application for early learning
and educational support services.

(af) “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.

(ag) “Program director” means a person who, pursuant to
Sections 8274 and 8275, is qualified to serve as a program
director.

(ah) “Programmatic responsibility” means overall supervision
of curriculum and instructional staff, including instructional aides,
and the knowledge and authority to direct or modify program
practices and procedures to ensure compliance to applicable
quality and health and safety standards imposed by law.
Additionally, “programmatic responsibility” includes acting as
the representative for the early learning and educational support
program to the department. For programs operated through family
child care homes, “programmatic responsibility” includes ensuring
quality services are provided in the family child care homes.

(ai) “Proprietary agency” means an organization or facility
providing early learning and educational support services, which
is operated for profit.

(aj) “Public agency representative” means a person who
represents a city, county, city and county, or local government
agency.

(ak) “Resource and referral programs” means an agency that
has contracted with the department, pursuant to 8288, to provide
information to parents, including referrals and coordination of
community resources for parents and public or private providers
of care. Services frequently include, but are not limited to, technical
assistance for providers, toy lending libraries, equipment lending
libraries, toy and equipment lending libraries, staff development
programs, health and nutrition education, and referrals to social
services.

(al) “Severely disabled children” 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. “Severely disabled children” 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.

(am) “Short-term respite child care” means child care service
to assist families whose children have been identified through
written referral from a legal, medical, or social service agency,
or emergency shelter as being neglected, abused, exploited, or
homeless, or at risk of being neglected, abused, exploited, or
homeless. Child care is provided for less than 24 hours per day
in child care centers, treatment centers for abusive parents, family
child care homes, or in the child’s own home.

(an) “Site supervisor” means a person who, regardless of his
or her title, has operational program responsibility for an early
learning and educational support program at a single site. A site
supervisor shall hold a permit or credential issued by the
Commission on Teacher Credentialing that authorizes supervision
of a child care and development program operating in a single
site. The Superintendent may waive the requirements of this
subdivision if the Superintendent determines that the existence of
compelling need is appropriately documented.

(ao) “Standard reimbursement rate” means that rate established
by the Superintendent pursuant to Section 8371.

(ap) “Startup costs” means those expenses an agency incurs in
the process of opening a new or additional facility before the full
enrollment of children.

(aq) “Support services” means those services that, when
combined with early learning and educational support services,
help promote the healthy physical, mental, social, and emotional
growth of children. Support services 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.

(ar) “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.

(as) “Three-year-old child” means a child who will have his
or her third birthday on or before the date specified in the fiscal
year in which the child is enrolled in a California state preschool
program, as follows:

(1) November 1 of the 2012-13 fiscal year.

(2) October 1 of the 2013-14 fiscal year.

(3) September 1 of the 2014-15 fiscal year and each fiscal year
thereafter.

(at) “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 early learning
and educational support program services to the need for these
services is low, as determined by the Superintendent.

(au) “Workday” means the time that the parent requires
temporary care for a child for any of the following reasons:

(1) To undertake training in preparation for a job.

(2) To undertake or retain a job.

(3) To undertake other activities that are essential to
maintaining or improving the social and economic function of the
family, are beneficial to the community, or are required because
of health problems in the family.

end insert

begin insert

begin insert SEC. 4. end insert   

end insert

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

begin delete

 

Article 2.  Resource and Referral Programs

 

end delete

begin insert

begin insert SEC. 5. end insert   

end insert

begin insert Section 8210 of the end insert begin insert Education Code end insert begin insert is amended and
renumbered to read: end insert

begin delete 8210. end delete
begin insert 8285. end insert   

Funds appropriated for the purpose of this chapter may
be used for child care resource and referral programs begin delete which end delete begin insert that end insert
may be operated by public or private nonprofit entities.

begin insert

begin insert SEC. 6. end insert   

Article 2 (commencing with Section 8210) is added to
Chapter 2 of Part 6 of Division 1 of Title 1 of the Education Code,
to read:

 

Article begin insert 2. end insert   Eligibility and Enrollment

 

begin insert 8210. end insert   

In order to be eligible for federal and state subsidized
early learning and educational support services, families shall
meet at least one requirement in each of the following areas:

(a) A family is (1) a current aid recipient, (2) income eligible,
(3) homeless, or (4) one whose children are recipients of protective
services, or whose children have been identified as being abused,
neglected, or exploited, or at risk of being abused, neglected, or
exploited.

(b) A family needs the child care services (1) because the child
is identified by a legal, medical, or social services agency, or
emergency shelter as (A) a recipient of protective services or (B)
being neglected, abused, or exploited, or at risk of neglect, abuse,
or exploitation, or (2) because the parents are (A) engaged in
vocational training leading directly to a recognized trade,
paraprofession, or profession, (B) employed or seeking
employment, (C) seeking permanent housing for family stability,
or (D) incapacitated.

begin insert 8211. end insert   

(a) For purposes of this chapter, “income eligible”
means that a family’s adjusted monthly income is at or below 70
percent of the state median income, adjusted for family size, and
adjusted annually.

(b) Notwithstanding any other law, for the 2012-13 fiscal year,
the income eligibility limits shall be 70 percent of the state median
income that was in use for the 2007-08 fiscal year, adjusted for
family size.

(c) The income of a recipient of federal supplemental security
income benefits pursuant to Title XVI of the federal Social Security
Act (42 U.S.C. Sec. 1381 et seq.) and state supplemental program
benefits pursuant to Title XVI of the federal Social Security Act
and Chapter 3 (commencing with Section 12000) of Part 3 of
Division 9 of the Welfare and Institutions Code shall not be
included as income for purposes of determining eligibility for child
care under this chapter.

begin insert 8212. end insert   

Except as provided in Article 4.5 (commencing with
Section 8252), priority for federal and state subsidized early
learning and educational support services is as follows:

(a) (1) First priority shall be given to neglected or abused
children who are recipients of child protective services, or children
who are at risk of being neglected or abused, upon written referral
from a legal, medical, or social services agency. If an agency is
unable to enroll a child in the first priority category, the agency
shall refer the family to local resource and referral services to
locate services for the child.

(2) A family who is receiving early learning and educational
support services on the basis of being a child at risk of abuse,
neglect, or exploitation, as defined in subdivision (n) of Section
8208, is eligible to receive services pursuant to paragraph (1) for
up to three months, unless the family becomes eligible pursuant
to paragraph (3).

(3) A family may receive child care services for up to 12 months
on the basis of a certification by the county child welfare agency
that child care services continue to be necessary or, if the child is
receiving child protective services during that period of time, and
the family requires child care and remains otherwise eligible. This
time limit does not apply if the family’s child care referral is
recertified by the county child welfare agency.

(b) Second priority shall be given equally to eligible families,
regardless of the number of parents in the home, who are income
eligible. Within this priority, families with the lowest gross monthly
income in relation to family size, as determined by a schedule
adopted by the Superintendent, shall be admitted first. If two or
more families are in the same priority in relation to income, the
family that has a child with exceptional needs shall be admitted
first. If there is no family of the same priority with a child with
exceptional needs, the same priority family that has been on the
waiting list for the longest time shall be admitted first. For
purposes of determining order of admission, the grants of public
assistance recipients shall be counted as income.

(c) The Superintendent shall set criteria for and may grant
specific waivers of the priorities established in this subdivision
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.

begin insert 8213. end insert   

(a) Notwithstanding any other law, in order to promote
continuity of services, a family enrolled in a state or federally
funded child care and development program whose services would
otherwise be terminated because the family no longer meets the
program income, eligibility, or need criteria may continue to
receive early learning and educational support services in another
state or federally funded child care and development program if
the contractor is able to transfer the family’s enrollment to another
program for which the family is eligible before the date of
termination of services or to exchange the family’s existing
enrollment with the enrollment of a family in another program,
provided that both families satisfy the eligibility requirements for
the program in which they are being enrolled. The transfer of
enrollment may be to another program within the same
administrative agency or to another agency that administers state
or federally funded child care and development programs.

(b) In order to promote continuity of services, the Superintendent
may extend the 60-working-day period specified in subdivision (a)
of Section 18086.5 of Title 5 of the California Code of Regulations
for an additional 60 working days if he or she determines that
opportunities for employment have diminished to the degree that
one or both parents cannot reasonably be expected to find
employment within 60 working days and granting the extension is
in the public interest. The scope of extensions granted pursuant
to this subdivision shall be limited to the necessary geographic
areas and affected persons, which shall be described in the
Superintendent’s order granting the extension. It is the intent of
the Legislature that extensions granted pursuant to this subdivision
improve services in areas with high unemployment rates and areas
with disproportionately high numbers of seasonal agricultural
jobs.

begin insert 8214. end insert   

(a) A physical examination and evaluation, including
age-appropriate immunizations, shall be required before, or within
six weeks of, enrollment. A standard, rule, or regulation shall not
require medical examination or immunization for admission to an
early learning and educational support program of a child whose
parent or guardian files a letter with the governing board of the
program stating that the medical examination or immunization is
contrary to his or her religious beliefs, or provide for the exclusion
of a child from the program because of a parent or guardian having
filed the letter. However, if there is good cause to believe that a
child is suffering from a recognized contagious or infectious
disease, the child shall be temporarily excluded from the program
until the governing board of the program is satisfied that the child
is not suffering from that contagious or infectious disease.

(b) Regulations formulated and promulgated pursuant to this
section shall 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 children with exceptional needs.

(c) The Superintendent shall establish guidelines for the
collection of employer-sponsored child care benefit payments from
a parent whose child receives subsidized services. These guidelines
shall provide for the collection of the full amount of the benefit
payment, but not to exceed the actual cost of services provided,
notwithstanding the applicable fee based on the fee schedule.

(d) The Superintendent shall establish guidelines according to
which the director or a duly authorized representative of the
program will certify children as eligible for state reimbursement
pursuant to this section.

(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.

begin insert 8215. end insert   

(a) The preferred placement for children who are 11 or
12 years of age and who are otherwise eligible for subsidized early
learning and education support services shall be in a before or
after school program.

(b) Children who are 11 or 12 years of age shall be eligible for
subsidized services only for the portion of care needed that is not
available in a before or after school program provided pursuant
to Article 22.5 (commencing with Section 8482) or Article 22.6
(commencing with Section 8484.7). Contractors shall provide each
family of an eligible child who is 11 or 12 years of age with the
option of combining care provided in a before or after school
program with subsidized care in another setting, for those hours
within a day when the before or after school program does not
operate, in order to meet the needs of the family.

(c) Children who are 11 or 12 years of age, who are eligible
for and who are receiving subsidized services, and for whom a
before or after school program is not available, shall continue to
receive subsidized services.

(d) A before or after school program shall be considered not
available when a parent certifies in writing, on a form provided
by the department that is translated into the parent’s primary
language pursuant to Sections 7295.4 and 7296.2 of the
Government Code, the reason or reasons why the program would
not meet the needs of the family. The reasons why a before or after
school program shall be considered not available shall include,
but not be limited to, any of the following:

(1) The program does not provide services when needed during
the year, such as during the summer, school breaks, or intersession.

(2) The program does not provide services when needed during
the day, such as in the early morning, evening, or weekend hours.

(3) The program is too geographically distant from the child’s
school of attendance.

(4) The program is too geographically distant from the parents’
residence.

(5) Use of the program would create substantial transportation
obstacles for the family.

(6) Any other reason that makes the use of before or after school
care inappropriate for the child or burdensome on the family.

(e) If a child who is 11 or 12 years of age and who is enrolled
in a subsidized early learning and educational support program
becomes ineligible for subsidized care under subdivision (b) and
is disenrolled from the before or after school program, or if the
before or after school program no longer meets the needs of the
family, the child shall be given priority to return to the subsidized
early learning and educational support services upon the parent’s
notification of the contractor of the need for care.

(f) This section does not apply to a child who is 11 or 12 years
of age with a disability, including a child with exceptional needs
who has an individualized education program as required by the
federal Individuals with Disabilities Education Act (20 U.S.C. Sec.
1400 et seq.), Section 504 of the federal Rehabilitation Act of 1973
(29 U.S.C. Sec. 794), or Part 30 (commencing with Section 56000)
of Division 4 of Title 2.

(g) The savings generated each contract year by the
implementation of the changes made to former Section 8263.4 by
the act amending former Section 8263.4 during the 2005-06
Regular Session shall remain with each alternative payment
program, early learning and educational support center, or other
contractor for the provision of services, except for care provided
by programs pursuant to Article 4.5 (commencing with Section
8252). Each contractor shall report annually to the department
the amount of savings resulting from this implementation, and the
department shall report annually to the Legislature the amount of
savings statewide resulting from that implementation.

begin insert 8216. end insert   

(a) The Superintendent shall establish a fee schedule
for families utilizing early learning and educational support
services pursuant to this chapter, including families receiving
services under subdivision (a) of Section 8212.

(1) Families receiving services under paragraph (2) of
subdivision (a) of Section 8212 may be exempt from these fees for
up to three months when the referral includes a fee waiver.

(2) Families receiving services under paragraph (3) of
subdivision (a) of Section 8212 may be exempt from these fees for
up to 12 months when the referral includes a fee waiver.

(3) The cumulative period of time of exemption from these fees
for families receiving services under subdivision (a) of Section
8212 shall not exceed 12 months.

(b) The income of a recipient of federal supplemental security
income benefits pursuant to Title XVI of the federal Social Security
Act (42 U.S.C. Sec. 1381 et seq.) and state supplemental program
benefits pursuant to Title XVI of the federal Social Security Act
(42 U.S.C. Sec. 1381 et seq.) and Chapter 3 (commencing with
Section 12000) of Part 3 of Division 9 of the Welfare and
Institutions Code shall not be included as income for purposes of
determining the amount of the family fee.

(c) Using the most recently approved family fee schedule
pursuant to Section 8332, families shall be assessed a flat fee based
on income and need for care.

(d) A family fee shall be assessed at initial enrollment and
reassessed at update of certification and recertification.

begin insert 8217. end insert   

(a) Agencies may require parents to provide diapers
and may charge a fee for field trips or diapers.

(b) Agencies charging a fee pursuant to subdivision (a) shall
do all of the following:

(1) Have a written policy adopted by the agency’s governing
board that includes parents in the decionmaking process.

(2) Not charge additional fees in excess of twenty-five dollars
($25) for the contract year.

(3) Not deny field trip participation to a child due to the parents’
inability or refusal to pay.

(4) Not take adverse action against a parent for that inability
or refusal to pay.

(5) Inform parents, before enrolling the child, that a fee may
be charged and that no reimbursement will be available.

(c) Each contractor or provider shall establish a payment system
that prevents the identification of children based on whether or
not their parents have paid a field trip charge.

(d) The income received for field trips shall be reported to the
department specifically as restricted income.

end insert

begin insert

begin insert SEC. 7. end insert   

end insert

begin insert Section 8212 of the end insert begin insert Education Code end insert begin insert is amended and
renumbered to read: end insert

begin delete 8212. end delete
begin insert 8286. end insert   

For purposes of this article, child care resource and
referral programs, established to serve a defined geographic area,
shall provide the following services:

(a) Identification of the full range of existing child care services
through information provided by all relevant public and private
agencies in the areas of service, and the development of a resource
file of those services which shall be maintained and updated at
least quarterly. These services shall include, but not be limited to,
family day care homes, public and private day care programs,
full-time and part-time programs, and infant, preschool, and
extended care programs.

The resource file shall include, but not be limited to, the
following information:

(1) Type of program.

(2) Hours of service.

(3) Ages of children served.

(4) Fees and eligibility for services.

(5) Significant program information.

(b) (1) Establishment of a referral process begin delete which end delete begin insert that end insert responds
to parental need for information and begin delete which end delete begin insert that end insert is provided with
full recognition of the confidentiality rights of parents. Resource
and referral programs shall make referrals to licensed child day
care facilities. Referrals shall be made to unlicensed care facilities
only if there is no requirement that the facility be licensed. The
referral process shall afford parents maximum access to all referral
information. This access shall include, but is not limited to,
telephone referrals to be made available for at least 30 hours per
week as part of a full week of operation. Every effort shall be made
to reach all parents within the defined geographic area, including,
but not limited to, any of the following:

(A) Toll-free telephone lines.

(B) Office space convenient to parents and providers.

(C) Referrals in languages begin delete which end delete begin insert that end insert are spoken in the
community.

Each child care resource and referral program shall publicize its
services through all available media sources, agencies, and other
appropriate methods.

(2) (A) Provision of information to any person who requests a
child care referral of his or her right to view the licensing
information of a licensed child day care facility required to be
maintained at the facility pursuant to Section 1596.859 of the
Health and Safety Code and to access any public files pertaining
to the facility that are maintained by the State Department of Social
Services Community Care Licensing Division.

(B) A written or oral advisement in substantially the following
form will comply with the requirements of subparagraph (A):

“State law requires licensed child day care facilities to make
accessible to the public a copy of any licensing report pertaining
to the facility that documents a facility visit or a substantiated
complaint investigation. In addition, a more complete file regarding
a child care licensee may be available at an office of the State
Department of Social Services Community Care Licensing
Division. You have the right to access any public information in
these files.”

(c) Maintenance of ongoing documentation of requests for
service tabulated through the internal referral process. The
following documentation of requests for service shall be maintained
by all child care resource and referral programs:

(1) Number of calls and contacts to the child care information
and referral program or component.

(2) Ages of children served.

(3) Time category of child care request for each child.

(4) Special time category, such as nights, weekends, and swing
shift.

(5) Reason that the child care is needed.

This information shall be maintained in a manner that is easily
accessible for dissemination purposes.

(d) Provision of technical assistance to existing and potential
providers of all types of child care services. This assistance shall
include, but not be limited to:

(1) Information on all aspects of initiating new child care
services including, but not limited to, licensing, zoning, program
and budget development, and assistance in finding this information
from other sources.

(2) Information and resources that help existing child care
services providers to maximize their ability to serve the children
and parents of their community.

(3) Dissemination of information on current public issues
affecting the local and state delivery of child care services.

(4) Facilitation of communication between existing child care
and child-related services providers in the community served.

Services prescribed by this section shall be provided in order to
maximize parental choice in the selection of child care to facilitate
the maintenance and development of child care services and
resources.

(e) (1) A program operating pursuant to this article shall, within
two business days of receiving notice, remove a licensed child day
care facility with a revocation or a temporary suspension order, or
that is on probation from the program’s referral list.

(2) A program operating pursuant to this article shall, within
two business days of receiving notice, notify all entities, operating
a program under Article begin delete 3 end delete begin insert 4 end insert (commencing with Section begin delete 8220) end delete
begin insert 8240) end insert and Article begin delete 15.5 end delete begin insert 4.5 end insert (commencing with Section begin delete 8350) end delete begin insert 8252) end insert
in the program’s jurisdiction, of a licensed child day care facility
with a revocation or a temporary suspension order, or that is on
probation.

begin insert

begin insert SEC. 8. end insert   

end insert

begin insert Section 8212.3 of the end insert begin insert Education Code end insert begin insert is amended and
renumbered to read: end insert

begin delete 8212.3. end delete
begin insert 8287. end insert   

(a) In addition to the services described in Section begin delete 8212 end delete
begin insert 8286 end insert , a child care resource and referral program, established to
serve a defined geographic area, may provide short-term respite
child care. “Short-term respite care,” for purposes of this article,
means temporary child care services to do any of the following:

(1) Provide services to families identified and referred by child
protective agencies.

(2) Relieve the stress caused by child abuse, neglect, or
exploitation, or the risk of abuse, neglect, or exploitation.

(3) Assist parents who, because of serious illness or injury,
homelessness, or family crisis, including temporary absence from
the home because of illness or injury, would be unable without
assistance to provide the normal care and nurture expected of
parents.

(4) Provide temporary relief to parents from the care of children
with exceptional needs.

(b) Pursuant to the delivery of short-term respite child care
services, priority shall be given for the provision of services to
families identified and referred by child protective agencies, to
relieve the stress caused by child abuse, neglect, or exploitation,
or the risks thereof, as described in paragraphs (1) and (2) of
subdivision (a). Priority shall be given to assist parents and to
provide temporary relief to parents, as described in paragraphs (3)
and (4) of subdivision (a) to the extent that resources are available.

begin insert

begin insert SEC. 9. end insert   

end insert

begin insert Section 8213 of the end insert begin insert Education Code end insert begin insert is amended and
renumbered to read: end insert

begin delete 8213. end delete
begin insert 8289. end insert   

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

begin insert

begin insert SEC. 10. end insert   

end insert

begin insert Section 8214 of the end insert begin insert Education Code end insert begin insert is amended and
renumbered to read: end insert

begin delete 8214. end delete
begin insert 8290. end insert   

Child care resources and referral shall be provided to all
persons requesting services and to all types of child care providers,
regardless of income level or other eligibility criteria. In addition
to the services prescribed by this section, child care resource and
referral may provide a wide variety of parent and provider support
and educational services.

begin insert

begin insert SEC. 11. end insert   

end insert

begin insert Section 8215 of the end insert begin insert Education Code end insert begin insert is amended and
renumbered to read: end insert

begin delete 8215. end delete
begin insert 8295. end insert   

(a) There is hereby established a project known as the
California Child Care Initiative Project. It is the intent of the
Legislature to promote and foster the project in cooperation with
private corporations and local governments. The objective of the
project is to increase the availability of quality child care programs
in the state.

(b) For purposes of this section, the California Child Care
Initiative Project means a project to expand the role and functions
of selected resource and referral agencies in activities including
needs assessment, recruitment and screening of providers, technical
assistance, and staff development and training, in order to aid
communities in increasing their capability in the number of child
care spaces available and the quality of child care services offered.

(c) The Superintendent begin delete of Public Instruction end delete shall allocate all
state funds appropriated for the California Child Care Initiative
Project for the purpose of making grants to those child care
resource and referral agencies that have been selected as pilot sites
for the project.

(d) The project shall ensure that each dollar of state funds
allocated pursuant to subdivision (c) is matched by two dollars
($2) from other sources, including private corporations, the federal
government, or local governments.

(e) The grants to the sites made available by the project shall
be comprised of a combination of state funds and other funds
pursuant to subdivision (d).

(f) The Superintendent begin delete of Public Instruction end delete shall develop a begin delete data
base end delete begin insert database end insert for the project.

begin insert

begin insert SEC. 12. end insert   

end insert

begin insert Section 8216 of the end insert begin insert Education Code end insert begin insert is amended and
renumbered to read: end insert

begin delete 8216. end delete
begin insert 8291. end insert   

When making referrals, every agency operating both a
direct service program and a resource and referral program shall
provide at least four referrals, at least one of which shall be a
provider over which the agency has no fiscal or operational control,
as well as information to a family on the family’s ability to choose
a license exempt provider.

begin insert

begin insert SEC. 13. end insert   

end insert

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

begin insert

begin insert SEC. 14. end insert   

Article 3 (commencing with Section 8220) is added
to Chapter 2 of Part 6 of Division 1 of Title 1 of the Education
Code, to read:

 

Article begin insert 3. end insert   Direct Classroom Services

 

begin insert 8220. end insert   

The Superintendent shall administer early learning and
educational support programs through direct classroom services.

(a) The Superintendent shall streamline the delivery of early
learning and educational support direct classroom services through
the simplification of contracts that serve children from infancy to
13 years of age, including, but not limited to, services for:

(1) Infants and toddlers.

(2) Preschool age children.

(3) Schoolage children.

(4) Migrant children.

(b) Contractors providing direct classroom services pursuant
to this article shall:

(1) Provide high-quality educational services pursuant to Article
1 (commencing with Section 8200).

(2) Adhere to the administrative requirements of this article.

(c) Contractors shall continue to serve the same populations
specified in their 2013-14 contracts, unless they receive prior
approval from the department.

(1) Contractors that provide services to migrant populations
shall adhere to Sections 8225, 8226, 8227, and 8228.

(2) Contractors that provide services to California state
preschool populations shall adhere to Sections 8221, 8222, 8223,
and 8224.

(d) All programs operating direct classroom services pursuant
to this article shall include plans or programs, or both, for the
care of children when they are sick. These plans shall be age
appropriate and parents shall be included in the planning and
evaluation. The Superintendent shall disseminate information
regarding the effective sick child care models to all early learning
and educational support programs.

(e) Nothing in this section shall be construed to allow the
practice of medicine without a license.

begin insert 8221. end insert   

Contractors serving migrant populations shall adhere
to the requirements set forth in Sections 8225, 8226, 8227, and
8228. In addition, the Superintendent shall support and encourage
the state-level coordination of all agencies that offer services to
migrant populations and state-level coordination of existing health
funds for migrants.

begin insert 8222. end insert   

(a) For the purpose of Sections 8225, 8226, 8227, and
8228, priority for enrollment shall be given to children of migrant
agricultural worker families, as defined in subdivision (ae) of
Section 8208, in the following priority order:

(1) The family moves from place to place.

(2) The family has qualified under paragraph (1) within the
past five years and is currently dependent for its income on
agricultural employment, but is currently settled near agricultural
areas.

(3) The family resides in a rural agricultural area and is
dependent upon seasonal agricultural work.

(b) Funding remaining after migrant families have been
prioritized for enrollment as specified in subdivision (a) may be
used to enroll children from otherwise eligible families pursuant
to the priorities set forth in Section 8212.

begin insert 8223. end insert   

In addition to the quality indicators developed pursuant
to Section 8260, the Superintendent shall develop quality indicators
for contractors that serve migrant populations, including the
following:

(a) Social services.

(1) Bilingual liaison between migrant parents and the center
or family child care home, or both.

(2) Liaison between the agency and the relevant community
agencies and organizations, including health and social services.

(3) Identification and documentation of family needs and
followup referrals as appropriate.

(b) Staffing.

(1) Bilingual health personnel shall be available to each
program site of an agency that serves a migrant population.

(2) Professional and nonprofessional staff shall reflect the
linguistic and cultural background of the children being served.

(3) Whenever possible, migrants shall be recruited, trained,
and hired in these programs. Documentation of training and career
ladder opportunities and of recruitment and hiring efforts shall
be provided to the department. Staff training shall include
principles and practices of early learning and educational support
programs for the age groups of children being served.

(c) Developmental and health services in agencies that serve
migrant populations shall include health and dental screening and
followup treatment. Health records for all migrant children shall
follow the child.

begin insert 8224. end insert   

(a) Cost for migrant population services may exceed
the standard reimbursement rate established by the Superintendent.
In no case shall the reimbursement exceed the cost of the services.
State-funded programs may be eligible for Title I federal funds
(20 U.S.C. Sec. 6301 et seq.) to supplement state funding. These
funds shall not be contingent upon the provision of additional child
days or enrollment.

(b) The Superintendent shall annually reimburse agencies that
provide services for seasonal migrant populations pursuant to
Sections 8221, 8222, 8223, and this section for approvable startup
and closedown costs. Reimbursement for both startup and
closedown costs shall not exceed 15 percent of each agency’s total
contract amount.

(c) Agencies that provide services for seasonal migrant
populations shall submit reimbursement claims for startup costs
with their first monthly reports, and reimbursement claims for
closedown costs with their final reports.

begin insert 8225. end insert   

(a) Contractors providing California state preschool
services for three-year-old children, as defined pursuant to
subdivision (as) of Section 8208, and four-year-old children, as
defined pursuant to subdivision (y) of Section 8208, shall adhere
to the requirements set forth in Sections 8221, 8222, 8223, and
8224.

(b) Preschool services for which federal reimbursement is not
available shall be funded as prescribed by the Legislature in the
Budget Act, and unless otherwise specified by the Legislature,
shall not use federal funds made available through Title XX of the
federal Social Security Act (42 U.S.C. Sec. 1397 et. seq.).

(c) Three- and four-year-old children are eligible for part-day
California state preschool services if the family meets at least one
of the criteria specified in subdivision (a) of Section 8210.

(d) Notwithstanding any other law, a contractor providing
part-day California state preschool services may enroll children
in families whose income is no more than 15 percent above the
income eligibility threshold, as described in Sections 8210 and
8211, after all eligible three- and four-year-old children have been
enrolled. No more than 10 percent of the enrolled three- or
four-year old children, may be from families above the income
eligibility threshold.

(e) Contractors providing part-day California state preschool
services 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.

begin insert 8226. end insert   

(a) (1) Notwithstanding Section 8212, each contracting
agency providing services pursuant to Section 8225 shall give first
priority to three- or four-year-old neglected or abused 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 resource and referral
services so that services for the child can be located.

(2) Notwithstanding Section 8212, after children in the first
priority category set forth in paragraph (1) are enrolled, priority
shall be given to eligible four-year-old children before enrolling
eligible three-year-old children. Each agency shall certify to the
Superintendent that enrollment priority is being given to eligible
four-year-old children.

(b) For contractors that provide part-day California state
preschool services, at least one-half of the children enrolled at a
preschool site shall be four-year-old children. Any exception to
this requirement shall be approved by the Superintendent. The
Superintendent shall inform the Department of Finance of any
exceptions that have been granted and the reasons for granting
the exceptions.

begin insert 8227. end insert   

A contractor that provides part-day California state
preschool services has 120 calendar days before the first day of
the beginning of the new preschool year to certify eligibility and
enroll families into their program. Subsequent to enrollment, a
child shall be deemed eligible for a part-day California state
preschool services for the remainder of the program year.

begin insert 8228. end insert   

The Superintendent shall encourage applicants or
contracting agencies to offer full-day California state preschool
services through a combination of part-day preschool slots and
wraparound services. In order to facilitate a full-day of services,
all of the following shall apply:

(a) Part-day preschool services provided pursuant to this section
shall operate between 175 and 180 days.

(b) Wraparound services provided pursuant to this section shall
operate a minimum of 246 days per year unless the contract
specifies a lower minimum days of operation. Wraparound services
may operate full day for the remainder of the year after the
completion of the part-day preschool program services.

(c) Part-day preschool services combined with wraparound
services shall be reimbursed at no more than the full-day standard
reimbursement rate with adjustment factors, pursuant to Section
8371 and as determined in the annual Budget Act.

(d) Three- and four-year-old children are eligible for
wraparound services to supplement the part-day California state
preschool services if the family meets eligibility criteria specified
in Section 8210.

(e) Fees shall be assessed and collected for families with
children in part-day preschool programs, or families receiving
wraparound child care services, or both, pursuant to Section 8216.

(f) For purposes of this section, “wraparound services” means
services provided for the remaining portion of the day or remainder
of the year following the completion of part-day preschool services
that are necessary to meet the needs of parents eligible pursuant
to Section 8210. These services shall be provided consistent with
the early learning and educational support programs provided
pursuant to this article.

begin insert 8229. end insert   

(a) The Superintendent, with funds appropriated for this
purpose, shall contract with entities organized under law to operate
family child care home education networks that support
educational objectives for children in licensed family child care
homes that serve families eligible for subsidized child care.

(b) Contractors funded to operate family child care home
education networks shall reimburse network providers in
accordance with requirements set forth in Section 8244.

(c) Family child care home education network programs shall
include, but are not limited to, all of the following:

(1) Age and developmentally appropriate activities for children.

(2) Care and supervision of children.

(3) Parenting education.

(4) Identification of child and family social or health needs and
referral of the child or the family to the appropriate social or
health services.

(5) Nutrition.

(6) Training and support for the family child care home
education network’s family home providers and staff.

(7) Assessment of each family child care home provider to
ensure that services are of high-quality and are educationally and
developmentally appropriate.

(8) Developmental profiles for children enrolled in the program.

(9) Parent involvement.

begin insert 8230. end insert   

Each family child care home education network
contractor, in addition to the requirements set forth in subdivision
(c) of Section 8229, shall do all of the following:

(a) Recruit, enroll, and certify eligible families.

(b) Recruit, train, support, and reimburse licensed family home
providers.

(c) Collect family fees in accordance with contract requirements.

(d) Assess, according to standards set by the department, the
educational quality of the program offered in each family child
care home in the network.

(e) Ensure that a developmental profile is completed for each
child based upon observations of network staff, in consultation
with the provider.

(f) Monitor requirements, including quality standards, and
conduct periodic assessments of program quality in each family
child care home affiliated with the network.

(g) Ensure that basic health and nutrition requirements are met.

(h) Provide data and reporting in accordance with contract
requirements.

begin insert 8231. end insert   

(a) The Superintendent shall ensure that eligible children
with exceptional needs are given equal access to all early learning
and educational support programs. Available federal and state
funds for children with exceptional needs above the standard
reimbursement amount shall be used to assist agencies in
developing and supporting appropriate programs for these
children.

(b) To provide children with exceptional needs with additional
access to early learning and educational support programs, the
Superintendent shall establish alternate appropriate placements,
such as self-contained programs and innovative programs using
the least restrictive environment. These programs shall be started
as expansion funds become available and shall be expanded
throughout the implementation of the plan. The Superintendent
shall use existing program models and input from program
specialists to develop new program criteria and guidelines for
programs serving children with exceptional needs. These programs
may serve children with exceptional needs up to 21 years of age.

(c) Any child with exceptional needs served in early learning
and educational support programs shall be afforded all rights and
protections guaranteed in state and federal laws and regulations
for individuals with exceptional needs.

(d) Notwithstanding any other provision of this chapter, the
Superintendent may develop unique reimbursement rates for, and
make reimbursements to, early learning and educational support
programs that received state funding for the 1980-81 fiscal year
and serve severely disabled children, as defined in subdivision (al)
of Section 8208, when all of the following conditions exist:

(1) Eligibility for enrollment of a severely disabled child in the
program is the sole basis of the child’s need for service.

(2) Services are provided to severely disabled children from
birth to 21 years of age.

(3) No fees are charged to the parents of the severely disabled
children receiving the services.

(e) The Superintendent shall include providers in all personnel
development for persons providing services for children with
exceptional needs.

begin insert 8232. end insert   

The Superintendent may, with funds appropriated for
that purpose, enter into agreements with school districts or
community college districts or county superintendents of schools
for the establishment and maintenance of early learning and
educational support programs for infants, and the training of
students in their roles as parents, as part of the high school
program.

begin insert 8233. end insert   

The state board shall adopt rules and regulations for
the administration of the programs described in Section 8232.

begin insert 8234. end insert   

Infant early learning and educational support services
include, but are not limited to, the following:

(a) Supervision and group care, providing for the physical and
emotional needs of the infant in a manner that conveys concern
and engenders trust.

(b) Educational stimulation from the earliest development stages
onward.

(c) Developmental and health screening and treatment.

begin insert 8235. end insert   

Services available to parents, in which other students
may participate on an elective basis, shall include, but are not
limited to, the following:

(a) Providing supervised infant care, designed to facilitate
completion of the parents’ high school program.

(b) The teaching of parenthood education by staff and trained
volunteers.

(c) The teaching of family planning.

(d) The development in student parents, and in other
participating students, of reasonable expectations regarding infant
behavior in order to minimize parental frustration and consequent
child abuse.

begin insert 8236. end insert   

In school districts maintaining more than one high
school, the governing board, after soliciting the opinions of student
parents and other interested persons, shall determine the location
of the infant center. Infant centers shall be located within high
school buildings or within that proximity to high school buildings
as would ensure convenient access by student parents and other
students.

begin insert 8237. end insert   

To the extent funds are available, federal reimbursement
shall be claimed for any child receiving services in the infant early
learning and educational support program.

begin insert 8238. end insert   

The department may accept funds from school districts
or county superintendents of schools as matching funds to maximize
the funds available for the program.

begin insert 8239. end insert   

(a) Infants whose parent or parents are high school
students may attend infant centers while their parents attend high
school.

(b) The Superintendent may enter into an agreement pursuant
to Section 8232 permitting infants whose parent or parents are
students in grades 7 and 8 to attend infant centers while their
parents attend school.

end insert

begin insert

begin insert SEC. 15. end insert   

end insert

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

begin delete

 

Article 6.  Migrant Child Care and Development Programs

 

end delete

begin insert

begin insert SEC. 16. end insert   

end insert

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

begin delete

 

Article 7.  California State Preschool Programs

 

end delete

begin insert

begin insert SEC. 17. end insert   

end insert

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

begin delete 8238. end delete
begin insert 8296. end insert   

As a condition of receipt of funds pursuant to Section
begin delete 8238.4 end delete begin insert 8297 end insert , a participating part-day preschool program shall
coordinate the provision of all of the following:

(a) Opportunities for parents and legal guardians to work with
their children on interactive literacy activities. For purposes of this
subdivision, “interactive literacy activities” means activities in
which parents or legal guardians actively participate in facilitating
the acquisition by their children of prereading skills through guided
activities such as shared reading, learning the alphabet, and basic
vocabulary development.

(b) Parenting education for parents and legal guardians of
children in participating classrooms to support the development
by their children of literacy skills. Parenting education shall
include, but not be limited to, instruction in all of the following:

(1) Providing support for the educational growth and success
of their children.

(2) Improving parent-school communications and parental
understanding of school structures and expectations.

(3) Becoming active partners with teachers in the education of
their children.

(c) Referrals, as necessary, to providers of instruction in adult
education and English as a second language in order to improve
the academic skills of parents and legal guardians of children in
participating classrooms.

(d) Staff development for teachers in participating classrooms
that includes, but is not limited to, all of the following:

(1) Development of a pedagogical knowledge, including, but
not limited to, improved instructional strategies.

(2) Knowledge and application of developmentally appropriate
assessments of the prereading skills of children in participating
classrooms.

(3) Information on working with families, including the use of
onsite coaching, for guided practice in interactive literacy activities.

begin insert

begin insert SEC. 18. end insert   

end insert

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

begin delete 8238.4. end delete
begin insert 8297. end insert   

(a) A family literacy supplemental grant shall be made
available and distributed to qualifying California state preschool
classrooms, as determined by the Superintendent, at a rate of two
thousand five hundred dollars ($2,500) per class. The
Superintendent shall distribute the family literacy supplemental
grant funds according to the following priorities:

(1) First priority shall be assigned to California state preschool
programs that contract to receive this funding before July 1, 2012.
These programs shall receive this funding until their contract is
terminated or the California state preschool program no longer
provides family literacy services.

(2) Second priority shall be assigned to California state
preschool programs operating classrooms located in the attendance
area of elementary schools in deciles 1 to 3, inclusive, based on
the most recently published Academic Performance Index pursuant
to Section 52056. The Superintendent shall use a lottery process
in implementing this paragraph.

(b) A family literacy supplemental grant distributed pursuant
to this section shall be used for purposes specified in Section 8238.

(c) Implementation of this section is contingent upon funding
being provided for family literacy supplemental grants for
California state preschool programs in the annual Budget Act or
other statute.

begin insert

begin insert SEC. 19. end insert   

end insert

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

begin insert

begin insert SEC. 20. end insert   

end insert

begin insert Article 4 (commencing with Section 8240) is added
to Chapter 2 of Part 6 of Division 1 of Title 1 of the end insert begin insert Education
Code end insert begin insert , to read: end insert

begin insert

 

Article begin insert 4. end insert   Alternative Payment Services

 

begin insert 8240. end insert   

The Superintendent shall contract with public or private
agencies to provide alternative payment services pursuant to this
article.

begin insert 8241. end insert   

Alternative payment programs shall serve an identifiable
geographic area approved by the department. The service area
may be delineated by jurisdictional city or county boundaries, by
natural geographic barriers, streets, roads, or Zip Codes.

begin insert 8242. end insert   

(a) Alternative payments may be made for services
provided in licensed centers and family care homes, for care
provided in the child’s home, and for other types of care that
conform to applicable law.

(b) Care exempt from licensure is a valid parental choice of
care for all programs provided under this chapter, and no
provision of this chapter shall be construed to exclude or
discourage the exercise of that choice.

begin insert 8243. end insert   

(a) Payments made by programs contracted to operate
pursuant to this article shall be the lesser of the applicable regional
market rate ceiling, established pursuant to Section 8244, or the
provider’s published rate.

(b) A program contracted to operate pursuant to this article
shall reimburse a licensed provider for care of a subsidized child
based on the rate charged by the provider to nonsubsidized
families, if any, for the same services, or the rates established by
the provider for prospective nonsubsidized families. A licensed
provider shall submit to the alternative payment program a copy
of the provider’s rate sheet listing the rates charged, and the
provider’s discount or scholarship policies, if any, along with a
statement signed by the provider confirming that the rates charged
for a subsidized child are equal to or less than the rates charged
for a nonsubsidized child.

(c) Contractors shall maintain a copy of the rate sheet and the
confirmation statement.

(d) Each licensed child care provider may update its published
rate once per year and shall provide the contractor and resource
and referral agency with the updated information pursuant to
subdivisions (c) and Section 8292, to reflect any changes.

(e) A licensed provider shall post in a prominent location
adjacent to the provider’s license at the child care facility the
provider’s rates and discounts or scholarship policies, if any.

(f) An alternative payment program shall verify provider rates
no less frequently than once a year by randomly selecting 10
percent of licensed providers serving subsidized families. The
purpose of this verification process is to confirm that rates reported
to the alternative payment programs reasonably correspond to
those reported to the resource and referral agency and the rates
actually charged to nonsubsidized families for equivalent levels
of services. It is the intent of the Legislature that the privacy of
nonsubsidized families shall be protected in implementing this
subdivision.

(g) The department shall develop regulations for addressing
discrepancies in the provider rate levels identified through the
rate verification process in subdivision (f).

begin insert 8244. end insert   

(a) The cost of services provided under this article shall
be governed by regional market rates. Recipients of services
provided pursuant to this article shall be allowed to choose the
services of licensed providers or providers who are, by law, not
required to be licensed, and the cost of that care shall be
reimbursed by counties or agencies that contract with the
department if the cost is within the regional market rate. For
purposes of this section, “regional market rate” means care costing
no more than 1.5 market standard deviations above the mean cost
of care for that region. The regional market rate ceilings shall be
established at the 85th percentile of the 2005 regional market rate
survey for that region.

(b) Reimbursement to license-exempt providers shall not exceed
60 percent of the family child care home rate established pursuant
to subdivision (a), effective July 1, 2011.

(c) Reimbursement to providers shall not exceed the fee charged
to private clients for the same service.

(d) Reimbursement shall not be made for services when care is
provided by parents, legal guardians, or members of the assistance
unit.

(e) A provider located on an Indian reservation or rancheria
and exempted from state licensing requirements shall meet
applicable tribal standards.

(f) For purposes of this section, “reimbursement” means a
direct payment to the provider of services, including license-exempt
providers. If care is provided in the home of the recipient, payment
may be made to the parent as the employer, and the parent shall
be informed of his or her concomitant legal and financial reporting
requirements. To allow time for the development of the
administrative systems necessary to issue direct payments to
providers, for a period not to exceed six months from the effective
date of this article, a county or an alternative payment agency
contracting with the department may reimburse the cost of services
through a direct payment to a recipient of aid rather than to the
provider.

(g) Counties and alternative payment programs shall not be
bound by the rate limits described in subdivision (a) when there
are, in the region, no more than two providers of the type needed
by the recipient of services provided under this article.

(h) Notwithstanding any other law, reimbursements to providers
based upon a daily rate may only be authorized under either of
the following circumstances:

(1) A family has an unscheduled but documented need of six
hours or more per occurrence, such as the parent’s need to work
on a regularly scheduled day off, that exceeds the certified need
for care.

(2) A family has a documented need of six hours or more per
day that exceeds no more than 14 days per month. In no event
shall reimbursements to a provider based on the daily rate over
one month’s time exceed the provider’s equivalent full-time monthly
rate or applicable monthly ceiling.

(3) This subdivision shall not limit providers from being
reimbursed for services using a weekly or monthly rate, pursuant
to subdivision (b) of Section 8243.

begin insert 8245. end insert   

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

begin insert 8246. end insert   

(a) Contractors providing alternative payment services
pursuant to this article shall provide information to parents
regarding their right to view the licensing information of a licensed
child day care facility required to be maintained at the facility
pursuant to Section 1596.859 of the Health and Safety Code and
to access any public files pertaining to the facility that are
maintained by the Community Care Licensing Division of the State
Department of Social Services.

(b) A written or oral advisement in substantially the following
form will comply with the requirements of subdivision (a):

 

“State law requires licensed child day care facilities to make
accessible to the public a copy of any licensing report pertaining
to the facility that documents a facility visit or a substantiated
complaint investigation. In addition, a more complete file regarding
a child care licensee may be available at an office of the
Community Care Licensing Division of the State Department of
Social Services. You have the right to access any public information
in these files.”

 

(c) Every program operating pursuant to this article shall, within
two days of receiving notice, remove from the program’s referral
list the name of any licensed child day care facility with a
revocation or a temporary suspension order or that is on probation.

(d) A program operating pursuant to this article shall, within
two business days of being notified of a revocation or a temporary
suspension order for a licensed child day care facility, do both of
the following:

(1) Terminate payment to the facility.

(2) Notify each parent and the facility in writing that payment
has been terminated and the reason for the termination.

(e) Programs providing alternative payment services pursuant
to this article shall, upon being notified that a licensed child day
care facility has been placed on probation, provide written notice
to each parent utilizing the facility that the facility has been placed
on probation and that the parent has the option of selecting a
different provider or remaining with the facility without risk of
subsidy payments to the provider being terminated. The Legislature
urges each agency operating pursuant to this section to provide
the written notice required by this subdivision in the primary
language of the parent, to the extent feasible.

begin insert 8247. end insert   

(a) The department and the State Department of Social
Services shall do both of the following:

(1) Design a standard process for complaints by parents about
the provision of care that is exempt from licensure.

(2) Design, in consultation with local planning councils, a single
application for all early learning and educational support
programs and all families.

(b) (1) County welfare departments and alternative payment
programs shall encourage all providers who are licensed or who
are exempt from licensure and who are providing care under
Section 8253.5, 8254.5, or 8255, to secure training and education
in basic child development.

(2) Provider job training provided to CalWORKs recipients
that is funded by either the department or the State Department
of Social Services shall include information on becoming a licensed
provider.

(c) The department shall increase consumer education and
consumer awareness activities so that parents will have the
information needed to seek high-quality services. High-quality
services shall include both licensed and license-exempt care.

begin insert 8248. end insert   

(a) Upon the approval of the department, funds
appropriated for purposes of this chapter may be used for
alternative payment programs to allow for maximum parental
choice. Various methods of reimbursement for parental costs for
care may be used. All payment arrangements shall conform to the
eligibility criteria and the parent fee schedule established pursuant
to Sections 8216 and 8371.

(b) To provide for maximum parental choice, alternative
payment programs may include the following:

(1) A subsidy that follows the family from one provider to
another within a given alternative payment program.

(2) Early learning and educational support services according
to parental choice, including use of family care homes, general
center based programs, and other state-funded programs to the
extent that those programs exist in the general service area and
are in conformity with the purposes and applicable laws for which
those programs were established, but excluding state preschool
programs.

begin insert 8249. end insert   

To offer maximum support for parents and providers,
alternative payment programs shall have access to resource and
referral services. Funding shall be adequate to purchase care at
the fee charged to the private client for the same service as well
as to provide locally designed support services for parents and
providers. Alternative payment programs shall, in collaboration
with the resource and referral agency in the county, provide the
following support services:

(a) (1) At the time the family is determined eligible for services
and at recertification, provide information for parents to assist
them in making informed choices about available types of care
that would both offer a safe, caring, and age-appropriate early
learning and educational support environment for children as well
as support the parents’ work activities, including, but not limited
to, information about high-quality early learning and educational
support resources pursuant to subdivision (b) of Section 8290.

(2) Where available, provide information on quality rating and
improvement systems.

(3) The department shall make informational resources available
to both resource and referral and alternative payment programs
pursuant to subdivision (c) of Section 8290.

(b) Professional and technical assistance and information for
providers.

(c) Parenting information.

begin insert 8250. end insert   

Out of funds appropriated for alternative payment
programs, the department shall reallocate funds as necessary to
reimburse alternative payment programs, excluding programs
operating pursuant to Section 8252, 8253, or 8253.5, 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.

end insert

begin insert

begin insert SEC. 21. end insert   

end insert

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

begin insert

begin insert SEC. 22. end insert   

end insert

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

begin insert

begin insert SEC. 23. end insert   

end insert

begin insert Article 4.5 (commencing with Section 8252) is added
to Chapter 2 of Part 6 of Division 1 of Title 1 of the end insert begin insert Education
Code end insert begin insert , to read: end insert

begin insert

 

Article begin insert 4.5. end insert   Alternative Payment Services: CalWORKs

 

begin insert 8252. end insert   

(a) It is the intent of the Legislature in enacting this
article to ensure that recipients of aid under Chapter 2
(commencing with Section 11200) of Part 3 of Division 9 of the
Welfare and Institutions Code, or any successor program, and
former recipients who have left aid for employment, are connected
as soon as possible to local child care resources, make stable child
care arrangements, and continue to receive subsidized child care
services after they no longer receive aid as long as they require
those services and meet the eligibility requirements set forth in
Sections 8210 and 8211.

(b) This article establishes three stages of child care services
through which a recipient of aid under Chapter 2 (commencing
with Section 11200) of Part 3 of Division 9 of the Welfare and
Institutions Code, or any successor program, will pass. Further,
as families’ child care needs are met by county welfare departments
and later by other local child care and development contractors,
it is the intent of the Legislature that families experience no break
in their child care services due to a transition between the three
stages of child care services.

begin insert 8252.5. end insert   

It is the intent of the Legislature to fully fund the third
stage of child care for former CalWORKS recipients.

end insert

begin insert

begin insert SEC. 24. end insert   

end insert

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

begin insert

begin insert SEC. 25. end insert   

end insert

begin insert Article 5 (commencing with Section 8260) is added
to Chapter 2 of Part 6 of Division 1 of Title 1 of the end insert begin insert Education
Code end insert begin insert , to read: end insert

begin insert

 

Article begin insert 5. end insert   Infrastructure to Support the System

 

begin insert 8260. end insert   

The Superintendent shall develop requirements for the
implementation of high-quality early learning and educational
support programs. Indicators of quality shall include, but not be
limited to:

(a) A physical environment that is safe and appropriate to the
ages and developmental needs of the children, and that meets
applicable licensing standards.

(b) Program activities and services that are age appropriate
and meet the developmental needs of each child, and utilize the
California foundations, frameworks, guidelines, and early
childhood educator competencies.

(c) Program activities and services that meet the cultural and
linguistic needs of children and families.

(d) Family and community engagement.

(e) Parent education.

(f) Efficient and effective local program administration.

(g) Effective educators that:

(1) Foster school readiness, healthy development, and improved
child outcomes.

(2) Are culturally and linguistically diverse and reflect the
makeup of children and families in the program.

(3) Possess the appropriate and required educational
qualifications and experience, including any required credentials
or permits, as required by the Commission on Teacher
Credentialing and who meet applicable licensing standards .

(4) Meet children’s instructional and developmental needs.

(5) Provide positive teacher-child interactions.

(h) Program activities and services meet the needs of children
with exceptional needs, diverse abilities, and their families.

(i) Support services for children, families, and early learning
educators.

(j) Provision for nutritional needs and physical activity of
children.

(k) Social services that include, but are not limited to, child
abuse prevention, identification of child and family needs, and
referral to appropriate agencies.

(l) Developmental and health services, as defined in Section
8208, that include referral of children to appropriate agencies for
services.

begin insert 8261. end insert   

The departmental shall maintain the California
foundations, frameworks, guidelines, and early childhood educator
competencies that identify developmental milestones, basic skills,
and methods for teaching these skills to support early learning
and subsequent school success. In future expenditure plans for
quality improvement activities, the department shall include
funding for periodically updating these resources consistent with
academic and performance standards and relevant research,
broadly distributing the guidelines, and providing education,
outreach, and training services to implement the foundations,
frameworks, and guidelines.

begin insert 8262. end insert   

(a) The Superintendent shall ensure that all contracts
for early learning and educational support programs operating
pursuant to ____ include a requirement that each public or private
provider maintain a developmental profile to appropriately identify
the emotional, social, physical, and cognitive growth of each child
served in order to promote the child’s success in the public schools.
To the extent possible, the department shall provide, promote, and
support a developmental profile to all contracted providers. The
provider of any program operated pursuant to a contract under
Section 8326 shall be responsible for maintaining developmental
profiles upon entry through exit from an early learning and
educational support program.

(b) This section is not subject to Part 34 (commencing with
Section 62000) of Division 4 of Title 2.

begin insert 8263. end insert   

(a) The Legislature finds and declares that the state
makes a substantial, annual investment in preschool, infant and
toddler, and schoolage early learning and educational support
programs for eligible families. It is in the best interests of children
and their families, and the taxpayers of California, to have
information about the development and learning abilities of
children developed in these settings, and health and other
information transferred to, or otherwise available to, the pupil’s
elementary school.

(b) When a child in a state-funded preschool or infant and
toddler program will be transferring to a local public school, the
preschool or infant and toddler program shall provide the parent
or guardian with information from the previous year deemed
beneficial to the pupil and the public school teacher, including,
but not limited to, development issues, social interaction abilities,
health background, and diagnostic assessments, if any. The
preschool or infant and toddler program may, with the permission
of the parent or guardian, transfer this information to the pupil’s
elementary school.

(c) Any child who has participated in a state subsidized
preschool that maintains results-based standards, including the
desired results accountability system, may have the performance
information transferred to any subsequent or concurrent public
school setting. Any transferred information shall be in summary
form and only accomplished with the permission of the parent or
guardian.

begin insert 8264. end insert   

In recognition of the demonstrated relationship between
food and good nutrition and the capacity of children to develop
and learn, it is the policy of this state that no child shall be hungry
while in attendance in early learning and educational support
facilities as defined in Section 8208 and that child development
facilities have an obligation to provide for the nutritional needs
of children in attendance.

begin insert 8265. end insert   

The State Department of Health Care Services shall
annually provide a mechanism for the delivery of health screening
and followup services for children enrolled in early learning and
educational support programs for whom there are no appropriate
health services accessible by referral.

end insert

begin insert

begin insert SEC. 26. end insert   

end insert

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

begin delete 8264.5. end delete
begin insert 8298. end insert   

The Superintendent may waive or modify begin delete child
development end delete requirements in order to enable begin delete child development end delete
begin insert early learning and educational support end insert programs to serve
combinations of eligible children in areas of low population. The
begin delete child development end delete begin insert early learning and educational support end insert
programs for which the Superintendent may grant waivers shall
include, but need not be limited to, California state preschool
full-day begin delete programs end delete begin insert services end insert , begin delete child care end delete begin insert services end insert provided by the
California School Age Families Education Program (Article 7.1
(commencing with Section 54740) of Chapter 9 of Part 29 of
Division 4 of Title 2), infant begin delete care and development end delete begin insert and toddler end insert
services, migrant begin delete child care and development programs end delete begin insert services end insert ,
and begin delete general child care and development end delete begin insert early learning and
developmental support end insert programs.

begin insert

begin insert SEC. 27. end insert   

end insert

begin insert Section 8265 of the end insert begin insert Education Code end insert begin insert is amended and
renumbered to read: end insert

begin delete 8265. end delete
begin insert 8371. end insert   

(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) 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.

(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.
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 begin delete child care end delete begin insert reimbursement end insert
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 begin delete child development end delete
begin insert early learning and educational support end insert programs at no more than
the standard reimbursement rate for that fiscal year.

(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.

begin insert

begin insert SEC. 28. end insert   

end insert

begin insert Section 8265.1 of the end insert begin insert Education Code end insert begin insert is amended
and renumbered to read: end insert

begin delete 8265.1. end delete
begin insert 8372. end insert   

Rate increases authorized by paragraph (2) of subdivision
(d) of Section begin delete 8265 end delete begin insert 8371 end insert shall be in effect from July 1 of the
contract year for which the rate increase is requested. The begin delete State
Department of Education end delete begin insert department end insert shall develop a rate increase
process, for alternative payment and other similar program types,
between October 1 and March 30. Decisions regarding rate
increases shall be made within 60 days by the begin delete State Department
of Education end delete begin insert department end insert .

begin insert

begin insert SEC. 29. end insert   

end insert

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

begin delete 8265.5. end delete
begin insert 8373. end insert   

(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.

(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.

(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.

begin insert

begin insert SEC. 30. end insert   

end insert

begin insert Section 8265.7 of the end insert begin insert Education Code end insert begin insert is amended
and renumbered to read: end insert

begin delete 8265.7. end delete
begin insert 8374. end insert   

Notwithstanding Section begin delete 8265 end delete begin insert 8371 end insert , programs above
the standard reimbursement rate may be considered on a
case-by-case basis for rate adjustments due to documented
increases in insurance costs.

begin insert

begin insert SEC. 31. end insert   

end insert

begin insert Section 8266 of the end insert begin insert Education Code end insert begin insert is amended and
renumbered to read: end insert

begin delete 8266. end delete
begin insert 8375. end insert   

begin insert (a) end insert begin insert   end insert Notwithstanding the provisions of Section begin delete 8265 end delete
begin insert 8371 end insert , the assigned reimbursement rate of a begin delete center-based child care
agency (a) contracting with the Department of Education, (b)
operating under licensing standards for child care and development
facilities specified by Section 1500 et seq. of the Health and Safety
Code and by Title 22 of the California Administrative Code, and
(c) end delete begin insert direct classroom services program operating pursuant to Article
3 (commencing with Section 8220) end insert with less than a majority of
subsidized children enrolled in the facility, shall be equivalent to
the fee paid for the same service by families of nonsubsidized
children.

begin delete

It

end delete

begin insert (b) end insert begin insert   end insert begin insert It end insert is not the intent of the Legislature to preclude an agency
with a contract with the department from adjusting the fees charged
to nonsubsidized children during the contract year. In no event
shall the assigned reimbursement rate exceed the standard
reimbursement rate established pursuant to Section begin delete 8265 end delete begin insert 8371 end insert .

begin delete

These

end delete

begin insert (c) end insert begin insert   end insert begin insert These end insert agencies shall provide documentation to the
department that subsidized children, as necessary and appropriate,
shall receive supportive services through county welfare
departments, resource and referral programs, or other existing
community resources, or all of them.

begin insert

begin insert SEC. 32. end insert   

end insert

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

begin delete 8266.1. end delete
begin insert 8376. end insert   

begin delete Commencing with the 1995-96 fiscal year and each
fiscal year thereafter, for the end delete begin insert For end insert purposes of this chapter,
reimbursement rates shall be adjusted by the following
reimbursement factors for begin delete child care and development end delete begin insert early
learning and educational support end insert programs with a standard
reimbursement rate, but shall not apply to the Resource and
Referral Programs set forth in Article begin delete 2 end delete begin insert 7 end insert (commencing with
Section begin delete 8210) end delete begin insert 8285) end insert , the Alternative Payment begin delete Programs end delete begin insert Services end insert
set forth in Article begin delete 3 end delete begin insert 4 end insert (commencing with Section begin delete 8220) end delete begin insert 8240) end insert ,
the part-day California state preschool programs set forth in Article
begin delete 7 end delete begin insert 3 end insert (commencing with Section begin delete 8235) end delete begin insert 8240) end insert , the schoolage
community child care services programs set forth in Article 22
(commencing with Section 8460), or to the schoolage parent and
infant development programs:

(a) For begin delete child care and development end delete begin insert early learning and
educational support end insert providers serving children for less than four
hours per day, the reimbursement factor is 55 percent of the
standard reimbursement rate.

(b) For begin delete child care and development end delete begin insert early learning and
educational support end insert program providers serving children for not
less than four hours per day, and less than six and one-half hours
per day, the reimbursement factor is 75 percent of the standard
reimbursement rate. For providers operating under the At Risk
Child Care Program set forth in Article begin delete 15.5 end delete begin insert 4.5 end insert (commencing
with Section begin delete 8350) end delete begin insert 8252) end insert and serving children for not less than
four hours per day, and less than seven hours per day, the
reimbursement factor is 75 percent of the standard reimbursement
rate.

(c) For begin delete child care and development end delete begin insert early learning and
educational support end insert program providers serving children for not
less than six and one-half hours per day, and less than 10 and
one-half hours per day, the reimbursement factor is 100 percent
of the standard reimbursement rate. For providers operating under
the At Risk Child Care Program set forth in Article begin delete 15.5 end delete begin insert 4.5 end insert
(commencing with Section begin delete 8350) end delete begin insert 8252) end insert and serving children for
not less than seven hours per day, and less than 10 hours per day,
the reimbursement factor is 100 percent of the standard
reimbursement rate.

(d) For begin delete child care and development end delete begin insert early learning and
educational support end insert program providers serving children for 101⁄2
hours or more per day, the reimbursement factor is 118 percent of
the standard reimbursement rate.

begin insert

(e) Part-day California state preschool services shall be
reimbursed on a per capita basis, as determined by the
Superintendent, and contingent on funding being provided for the
part-day preschool services in the annual Budget Act.

end insert

begin insert

begin insert SEC. 33. end insert   

end insert

begin insert Section 8266.5 of the end insert begin insert Education Code end insert begin insert is amended
and renumbered to read: end insert

begin delete 8266.5. end delete
begin insert 8379. end insert   

begin insert (a) end insert begin insert   end insert Notwithstanding the provisions of Section begin delete 8265 end delete
begin insert 8371 end insert , the payment made to a child care facility begin delete (a) end delete begin insert (1) end insert with
authorization for payments from an alternative payment begin insert services end insert
program begin delete or a county welfare department end delete begin insert operating pursuant to
Article 4 (commencing with Section 8240) end insert , begin delete (b) end delete begin insert (2) end insert operating under
licensing standards for child day care facilities specified by
Sections 1500 et seq. of the Health and Safety Code and by Title
22 of the California Administrative Code, and begin delete (c) end delete begin insert (3) end insert with less
than a majority of subsidized children enrolled in the facility, shall
be the same as the fee paid for the same service by families of
nonsubsidized children.

begin delete

Each

end delete

begin insert (b) end insert begin insert   end insert begin insert Each end insert alternative payment begin delete system or county welfare
department end delete begin insert services program end insert shall provide documentation that
subsidized children, as necessary and appropriate, shall receive
supportive services through county welfare departments, resource
and referral programs, other existing community resources, or all
of them.

begin insert

begin insert SEC. 34. end insert   

end insert

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

begin delete 8268. end delete
begin insert 8365. end insert   

The Superintendent begin delete of Public Instruction end delete and the begin delete State end delete
Controller shall establish the necessary plans to advance begin delete child care end delete
funds to contracting agencies.

begin insert

begin insert SEC. 35. end insert   

end insert

begin insert Article 6 (commencing with Section 8270) is added
to Chapter 2 of Part 6 of Division 1 of Title 1 of the end insert begin insert Education
Code end insert begin insert , to read: end insert

begin insert

 

Article begin insert 6. end insert   Early Educators and Administrative Support of
Healthy Development

 

begin insert 8270. end insert   

The Legislature recognizes the importance of a culturally
and linguistically diverse and effective early educator workforce
in our early learning and educational support programs that
support school readiness and improved child outcomes. Sustained
support of the field’s professional development and preparation
shall focus on educator effectiveness with children and families
in their programs and include, but not be limited to:

(a) Academic support.

(b) Higher education articulation.

(c) A career ladder with periodic updates.

(d) Evidence-based coaching and mentoring.

(e) Effective child-teacher interaction.

(f) Training on research-based tools and resources aligned to
California foundations, frameworks, guidelines, and early
childhood educator competencies.

(g) Retention of high-quality educators.

(h) Adequate compensation and incentives for professional
growth.

(i) Efficient program administration.

begin insert 8271. end insert   

(a) The Superintendent shall establish rules and
regulations for the staffing of all direct classroom early learning
and educational support programs operated pursuant to Article
3 (commencing with Section 8220).

(b) Priority shall be given by the department to the employment
of persons in early learning and educational support programs
with ethnic backgrounds that are similar to those of the child for
whom child development services are provided.

(c) For purposes of staffing early learning and educational
support programs, the role of a teacher in child supervision means
direct supervision of the children as well as supervision of aides
and groups of children.

(d) Family child care homes shall operate pursuant to adult to
child ratios prescribed in Chapter 7 (commencing with Section
86001) of Division 6 of Title 22 of the California Code of
Regulations.

(e) Approval by the Superintendent of any ongoing or new
programs seeking to operate under the ratios and standards
established by the Superintendent under this chapter shall be based
upon the following considerations:

(1) The type of facility in which care is being or is to be
provided.

(2) The ability of the Superintendent to implement a funding
source change.

(3) The proportion of nonsubsidized children enrolled or to be
enrolled by the agency.

(4) The most cost-effective ratios possible for the type of services
provided or to be provided by the agency.

(f) The Superintendent shall apply for waivers of federal
requirements as are necessary to carry out this section.

begin insert 8272. end insert   

All direct classroom early learning and educational
support programs shall maintain at least the following minimum
ratios:

(a) Infants, birth to 18 months old--1:3 adult-child ratio, 1:18
teacher-child ratio.

(b) Toddlers, 18 months up to their third birthday--1:4
adult-child ratio, 1:16 teacher-child ratio.

(c) Preschool, at least 30 months to kindergarten eligibility--1:8
adult-child ratio, 1:24 teacher-child ratio.

(d) Schoolage, enrolled in kindergarten to their 13th
birthday--1:14 adult-child ratio, 1:28 teacher-child ratio.

(e) Compliance with these ratios shall be determined based on
actual attendance.

begin insert 8273. end insert   

(a) Early learning and educational support programs
shall include a career ladder for instructional staff. The governing
board of each contracting agency shall be encouraged to provide
instructional staff and aides with salary increases for the successful
completion of early childhood education or child development
unit-based coursework and degrees.

(b) Any person who meets the following criteria is eligible to
serve in an instructional capacity in an early learning and
educational support program:

(1) Possesses a current credential issued by the Commission
on Teacher Credentialing authorizing teaching service in
elementary school or a single subject credential in home
economics, or possesses a permit issued by the Commission on
Teacher Credentialing authorizing service in the care,
development, and instruction of children in early learning and
educational support programs.

(2) Twelve units in early childhood education or child
development, or both, or two years’ experience in early childhood
education or an early learning and educational support program.

(3) Persons who are 18 years of age and older may be employed
as aides and may be eligible for salary increases upon the
completion of additional semester units in early childhood
education or child development.

begin insert 8274. end insert   

(a) Any entity operating programs pursuant to ____
providing direct classroom services to children at two or more
sites, including through more than one contract or subcontract
funded pursuant to this chapter, shall employ a program director,
as defined in subdivision (ag) of Section 8208.

(b) The program director also may serve as the site supervisor
at one of the sites, provided that he or she both fulfills the duties
of a “day care center director,” as set forth in Section 101215.1
of Title 22 of the California Code of Regulations, and meets the
qualifications for a site supervisor as set forth in subdivision (an)
of Section 8208.

(c) The Superintendent may waive the qualifications for program
director described in Sections 8275 and 8276 upon a finding of
one of the following circumstances:

(1) The applicant is making satisfactory progress toward
securing a permit issued by the Commission on Teacher
Credentialing authorizing supervision of a child care and
development program operating in two or more sites or fulfilling
the qualifications for program directors in severely handicapped
programs, as specified in Section 8276.

(2) The place of employment is so remote from institutions
offering the necessary coursework as to make continuing education
impracticable and the contractor has made a diligent search but
has been unable to hire a more qualified applicant.

(d) The Superintendent, upon good cause, may by rule identify
and apply grounds in addition to those specified in subdivision (c)
for granting a waiver of the qualifications for program director.

begin insert 8275. end insert   

Any entity operating early learning and educational
support programs providing direct classroom services to children,
pursuant to ____, at two or more sites, shall employ a program
director who possesses a permit or credential issued by the
Commission on Teacher Credentialing authorizing supervision of
a child care and development program, including, but not limited
to:

(a) An administrative credential with a preschool endorsement.

(b) A children’s center supervision permit.

(c) A program director permit.

(d) A waiver issued by the Superintendent pursuant to Section
8274.

begin insert 8276. end insert   

Notwithstanding Sections 8273 and 8275, any person
serving as a teacher or program director in a child care and
development program that provides service to severely disabled
children, as defined in subdivision (al) of Section 8208, pursuant
to subdivision (d) of Section 8231, shall hold an appropriate child
care and development permit, be deemed to hold that permit
pursuant to subdivision (b) of Section 8273 or Section 8275, or
meet one or more of the following options:

(a) Is a teacher meeting one of the following criteria:

(1) Has completed all the following:

(A) Twenty-four semester units of coursework, with a “C” or
better average, from an accredited institution in any one or a
combination of the following areas: psychology, sociology, special
education, physical education, recreation therapy, vocational
education, early childhood education, and child development.

(B) Sixteen semester units of coursework in general education,
including one course in each of the following areas: humanities,
social sciences, math or science, or both, and English.

(C) Completed one of the following:

(i) Two experience periods as a paid aide or assistant in a
program serving children with exceptional needs or severely
disabled children.

(ii) Three experience periods as a volunteer in an instructional
capacity in a program serving children with exceptional needs or
severely disabled children.

(iii) Two or more semester units of supervised field coursework
in a child care and development program at an accredited
institution, plus one experience period in a program serving
children with exceptional needs or severely disabled children.

For purposes of this subparagraph, “experience period” means
paid or volunteer services in a program serving children with
exceptional needs or severely disabled children for not less than
200 hours. Those services shall have been provided for a minimum
of two hours per day during not more than 36 consecutive months.

(2) Holds a California special education credential.

(b) Is a program director meeting one of the following criteria:

(1) Holds a California special education credential.

(2) Holds a professional credential, license, or master’s degree
in psychology, social work, special education, physical education,
recreation therapy, vocational education, counseling, early
childhood education, or child development, and has completed six
semester units of administration and supervision of early childhood
education or child development programs, or both.

(c) Was employed before January 1, 1993, as a teacher or
program director in a child care and development program that
provides services to severely disabled children.

begin insert 8277. end insert   

Not later than 95 days after the governing board of a
public agency sets the date a person employed by that board shall
begin service in a position requiring a permit or credential, that
person shall file, on or before that date, with the county
superintendent of schools a valid permit issued on or before that
date, authorizing him or her to serve in a position for which he or
she was employed. Upon renewal of that permit, that person shall
file that renewal with the county superintendent of schools no later
than 95 days after the renewal.

begin insert 8278. end insert   

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

begin insert 8279. end insert   

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

begin insert 8280. end insert   

(a) A person employed by a public or private agency in
a position requiring a child development permit for the supervision
and instruction of children, or for service as a physician, dentist,
or nurse, or in the supervision of the early learning and educational
support program, shall be deemed to be employed in a position
requiring certification qualifications. All other persons employed
by an agency in a child development program under the provisions
of this chapter shall be deemed for all purposes, including
retirement, to be a person employed by the agency in a position
not requiring certification qualifications.

(b) A school district may lay off an employee required to have
a permit at any time during the school year for lack of work or
lack of funds or may provide for his or her employment for not to
exceed 90 days in any one school year on an intermittent basis
which shall not be deemed probationary service. The order of
layoff shall be determined by length of service. The employee who
has served the shortest time shall be laid off first, except that no
permanent employee shall be laid off ahead of a probationary
employee. A permanent employee who has been laid off shall hold
reinstatement rights for a period of 39 months from the date of
layoff.

(c) Service performed before September 18, 1959, shall not be
included in computing the service required as a prerequisite for
attainment of, or eligibility to, classification as a permanent child
development employee.

(d) A person who is employed by an agency as a probationary
employee in a position requiring a child development permit for
the supervision and instruction of children, or for service as a
physician, dentist, or nurse, or in the supervision of the children’s
program and who has served in such a position for three complete
consecutive school years as defined in Section 44908 or 87468
and Section 44975 or 87776 immediately before September 18,
1959, may be dismissed only in accordance with the provisions of
Section 44949 or 87740. All other persons who are employed as
probationary employees in positions requiring those permits on
or after September 18, 1959, may be dismissed in accordance with
the provisions of Section 44949 or 87740.

begin insert 8281. end insert   

(a) Any city, county, or city and county charter provision
to the contrary notwithstanding, each person employed by an
agency on July 1, 1955, and each person employed by an agency
on September 11, 1957, who was excluded, solely by reason of the
provisions of the predecessor of Section 8366 in effect before July
1, 1955, or who was excluded solely by reason of the provisions
of the predecessor of this section before September 11, 1957, from
membership in any retirement system in which the agency
participates or to which it contributes for the purpose of providing
retirement rights and benefits for employees of the agency not
employed in a status requisite for membership in the State
Teachers’ Retirement System, shall become a member of the
retirement system from which he or she was excluded, on July 1,
1955, or on September 11, 1957, if excluded solely by reason of
the provisions of the predecessor of this section in effect before
that date. Every member shall be entitled to credit for service in
child development programs rendered before July 1, 1955, or
before September 11, 1957, if excluded, and before he or she
became a member of the system, in the same manner as if he or
she had not been excluded from membership in the retirement
system, except that he or she shall not be required to make any
contributions to the retirement system in respect to service
rendered before his or her membership, and all contributions
necessary to provide benefits on account of that service shall be
paid to the retirement system by the agency by which the member
is employed. For the purpose of computing benefits for services
rendered before July 1, 1955, as provided in this section, the
average monthly salary earned by the employee in the 1954-55
fiscal year shall be used, and for the purpose of computing benefits
for service rendered between July 1, 1955, and September 11,
1957, for members receiving credit for service between those dates
under the provisions of the predecessor of this section as amended
by Chapter 1238 of the Statutes of 1957, the average monthly
salary earned by those employees in the 1956-57 fiscal year shall
be used.

(b) Notwithstanding any other provisions of this section, for the
purpose of computing benefits for any person retired on and after
January 1, 1958, for services rendered before July 1, 1955, as
provided in this section, and for the purpose of computing benefits
for services rendered between July 1, 1955, and September 11,
1957, for members receiving credit for service between those dates
under the provisions of this section, the “final compensation” of
the person shall be computed in the same manner as for other
employees who are included in the same retirement system and in
the same class of retirement system members and who are not
affected by this section. The amendment to this section enacted at
the 1963 session shall be applied to increase the allowances,
payable subsequent to October 1, 1963, in respect to those
members who retired on or after July 1, 1955.

(c) Notwithstanding any other provisions of this section no
increased allowance shall be paid, as authorized by this section,
to any person who has retired between July 1, 1955, and October
1, 1963, unless the person to whom the increase would otherwise
be payable mails written application for the increase to the
appropriate retirement system before April 1, 1964.

end insert

begin insert

begin insert SEC. 36. end insert   

end insert

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

begin delete 8271. end delete
begin insert 8366. end insert   

In the event that operating agencies are unable to operate
due to incomplete renovations authorized by administrating state
agencies, or due to circumstances beyond the control of the
operating agency, including begin insert , but not limited to, end insert earthquakes, floods,
or fire, such programs shall not be penalized for incurred program
expenses nor in subsequent annual budget allocations.

begin insert

begin insert SEC. 37. end insert   

end insert

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

begin delete

 

Article 12.  Allocations and Expenditures

 

end delete

begin insert

begin insert SEC. 38. end insert   

end insert

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

begin delete 8275. end delete
begin insert 8367. end insert   

(a) The Superintendent may reimburse approvable
startup costs of child development agencies or facilities in an
amount not to exceed 15 percent of the expansion or increase of
each agency’s total contract amount. Under no circumstances shall
reimbursement for startup costs result in an increase in the agency’s
total contract amount. These funds shall be available for all of the
following:

(1) The employment and orientation of necessary staff.

(2) The setting up of the program and facility.

(3) The finalization of rental agreements and the making of
necessary deposits.

(4) The purchase of a reasonable inventory of materials and
supplies.

(5) The purchase of an initial premium for insurance.

(b) Agencies shall submit claims for startup costs with their first
quarterly reports.

(c) The Legislature recognizes that allowances for startup costs
are necessary for the establishment and stability of new begin delete child
development end delete begin insert early learning and educational support end insert programs.
begin delete Programs initially funded in the 1978-79 fiscal year and 1979-80
fiscal year are included in this section. end delete

begin insert

begin insert SEC. 39. end insert   

end insert

begin insert Section 8276.5 of the end insert begin insert Education Code end insert begin insert is amended
and renumbered to read: end insert

begin delete 8276.5. end delete
begin insert 8496. end insert   

begin insert (a) end insert begin insert   end insert The Legislature recognizes the shortage of child
care and development facilities begin delete which end delete begin insert that end insert meet state and local
health and safety standards, and the lack of other sources of funding
for renovations and repairs necessary to upgrade facilities for
licensing in order to accommodate major child care expansion. It
is, therefore, the intent of the Legislature that funds be appropriated
for the purpose of providing small grants, as provided in Section
begin delete 8277.1 end delete begin insert 8 end insert begin insert 389 end insert , to family begin delete day end delete care homes, and revolving loans with
no interest, as provided in Section begin delete 8277.2 end delete begin insert 8390 end insert , to all other types
of child care and development facilities, in order to provide
sufficient child care and development facilities meeting licensing
standards to accommodate the level of child care expansion
provided in this chapter.

begin delete

It

end delete

begin insert (b) end insert begin insert   end insert begin insert It end insert is further the intent of the Legislature that funds be
appropriated for the state purchase of relocatable child care and
development facilities as provided in Section begin delete 8277.7 end delete begin insert 8396 end insert , for
lease to qualifying contracting agencies in geographic areas with
no available child care and development facilities.

begin insert

begin insert SEC. 40. end insert   

end insert

begin insert Section 8277 of the end insert begin insert Education Code end insert begin insert is amended and
renumbered to read: end insert

begin delete 8277. end delete
begin insert 8399. end insert   

begin insert (a) end insert begin insert   end insert The Superintendent begin delete of Public Instruction end delete shall
establish regulations for the allocation of capital outlay funds
provided pursuant to Section begin delete 8277.1 end delete begin insert 8389 end insert to Section begin delete 8277.4 end delete begin insert 8392 end insert ,
inclusive, to benefit children most needing child care and
development programs. The first priority for all capital outlay shall
be given to facilities located in geographic areas with no other
available enrollment slots in existing subsidized and nonsubsidized
child care and development facilities. All such capital outlay
funding shall be used solely for purposes of renovation and repair
of existing buildings.

begin delete

The

end delete

begin insert (b) end insert begin insert   end insert begin insert The end insert Superintendent of begin delete Public Instruction end delete shall establish
qualifications for determining the eligibility of contracting agencies
and begin delete day end delete care homes to apply for capital outlay funds.

begin insert

begin insert SEC. 41. end insert   

end insert

begin insert Section 8277.1 of the end insert begin insert Education Code end insert begin insert is amended
and renumbered to read: end insert

begin delete 8277.1. end delete
begin insert 8389. end insert   

begin insert (a) end insert begin insert   end insert The Superintendent begin delete of Public Instruction end delete may
allocate to family day care homes based on need, an amount from
the appropriation in Section 23 of the chapter of the Statutes of
1980 by which this section was enacted, not to exceed one thousand
dollars ($1,000) per home, for minor capital outlay purchases for
the repair and renovation of homes for the purpose of insuring
compliance with state and local health and safety standards.

begin delete

It

end delete

begin insert (b) end insert begin insert   end insert begin insert It end insert is the intent of the Legislature that capital outlay moneys
be accessible to family day care homes through the auspices of
the contract agency or a family day care association, which may
include resource and referral agencies.

begin insert

begin insert SEC. 42. end insert   

end insert

begin insert Section 8277.2 of the end insert begin insert Education Code end insert begin insert is amended
and renumbered to read: end insert

begin delete 8277.2. end delete
begin insert 8390. end insert   

The Superintendent begin delete of Public Instruction end delete shall establish
a revolving loan fund to provide loans to child care and
development contracting agencies for capital outlay not to exceed
2 percent or two thousand dollars ($2,000), whichever is greater,
of the agency’s contract amount. These loans shall be available
with no interest and shall be used to renovate and repair child care
facilities to meet state and local health and safety standards.

begin insert

begin insert SEC. 43. end insert   

end insert

begin insert Section 8277.3 of the end insert begin insert Education Code end insert begin insert is amended
and renumbered to read: end insert

begin delete 8277.3. end delete
begin insert 8391. end insert   

begin insert (a) end insert begin insert   end insert Repayments on loans made pursuant to Section
begin delete 8277.2 end delete begin insert 8390 end insert shall commence within one year after allocation of
the loan to the contracting agency. In lieu of payments by the
contracting agency, the Superintendent begin delete of Public Instruction end delete shall
annually reduce the agency’s contract amount for child care
services by at least the level of normal depreciation allowance on
the renovation or repair, calculated by the straight line method of
depreciation.

begin delete

The

end delete

begin insert (b) end insert begin insert   end insert begin insert The end insert entire balance of a loan made pursuant to this section
shall be payable to the Superintendent begin delete of Public Instruction end delete
immediately if the contracting agency ceases operation of services
to children subsidized pursuant to this chapter, or if the
Superintendent begin delete of Public Instruction end delete fails to renew the agency’s
contract, or if 10 years have elapsed from the date of the allocation.

begin delete

The

end delete

begin insert (c) end insert begin insert   end insert begin insert The end insert Superintendent begin delete of Public Instruction end delete shall deposit all
revenue derived from loan payments made by contracting agencies,
or reductions made by the Superintendent begin delete of Public Instruction end delete in
agencies’ contracts in lieu of payments, into the revolving loan
fund for allocation to other contracting agencies for capital outlay
projects pursuant to this section.

begin insert

begin insert SEC. 44. end insert   

end insert

begin insert Section 8277.4 of the end insert begin insert Education Code end insert begin insert is amended
and renumbered to read: end insert

begin delete 8277.4. end delete
begin insert 8392. end insert   

The state shall hold a security interest in all renovations
and repairs funded pursuant to Section begin delete 8277.2 end delete begin insert 8390 end insert .

begin insert

begin insert SEC. 45. end insert   

end insert

begin insert Section 8277.5 of the end insert begin insert Education Code end insert begin insert is amended
and renumbered to read: end insert

begin delete 8277.5. end delete
begin insert 8398. end insert   

(a) For purposes of this section “department” means the
Department of Housing and Community Development.

(b) Subject to appropriation in the annual Budget Act, the Child
Care and Development Facilities Loan Guaranty Fund and the
Child Care and Development Facilities Direct Loan Fund are
hereby established in the State Treasury. The Superintendent begin delete of
Public Instruction end delete may transfer state funds appropriated for child
care facilities enhancement and the proceeds derived from any
future sales of tax-exempt child care and development facilities
bonds into these funds.

(c) Notwithstanding Section 13340 of the Government Code,
all moneys in the Child Care and Development Facilities Loan
Guaranty Fund and the Child Care and Development Facilities
Direct Loan Fund, including any interest on loans made from the
fund, or loan repayments to the fund, are hereby continuously
appropriated to the department for carrying out the purposes of
this section and Section begin delete 8277.6 end delete begin insert 8399 end insert , respectively. Any loan
repayment or interest resulting from investment or deposit of
moneys in these funds shall be deposited in the applicable fund,
notwithstanding Section 16305.7 of the Government Code. Moneys
in the funds shall not be subject to transfer to any other fund
pursuant to Part 2 (commencing with Section 16300) of Division
4 of Title 2 of the Government Code, except the Surplus Money
Investment Fund.

(d) (1) Moneys deposited in the Child Care and Development
Facilities Loan Guaranty Fund shall be used for the purpose of
guaranteeing private sector loans to sole proprietorships,
partnerships, proprietary and nonprofit corporations, and local
public agencies for the purchase, development, construction,
expansion, or improvement of licensed child care and development
facilities, and for the purpose of administering the guarantees of
these loans. The loan guarantees shall be made by the department
or by a public or private entity approved by the department, in
accordance with the priorities established by the department, as
described in Section begin delete 8277.6 end delete begin insert 8399 end insert . The full faith and credit of the
State of California is not pledged to the Child Care and
Development Facilities Loan Guaranty Fund and the state is not
liable for loan defaults that exceed the amount of funds deposited
with the Child Care and Development Facilities Loan Guaranty
Fund.

(2) A loan guarantee made pursuant to this section may not
exceed 80 percent of the principal and interest amount of a private
sector loan guaranteed by the fund and shall be used only to
guarantee a private sector loan for the purchase, development,
construction, expansion, or improvement of facilities described in
Section begin delete 8277.6 end delete begin insert 8399 end insert and for related equipment and fixtures, but
shall not be used primarily to refinance an existing loan or for
working capital, supplies, or inventory. A loan guarantee for
improvements shall be limited to those improvements necessary,
as determined by the department, for any of the following purposes:

(A) To obtain, maintain, renew, expand, or revise a child care
license.

(B) To make necessary health and safety improvements.

(C) To make seismic improvements.

(D) To provide access for disabled children.

(E) To expand upon or preserve existing child care operations.

(3) The aggregate amount of outstanding loan guarantees shall
not exceed four times the amount in the Child Care and
Development Facilities Loan Guaranty Fund.

(4) A loan guarantee made pursuant to this section shall be for
the term of the loan or 20 years, whichever is less. Security for the
guaranteed loan may include a deed of trust, personal guarantees
of shareholders and partners in the case of proprietary borrowers,
or other reasonably available collateral. These liens may be
subordinated to other liens. Default provisions and other terms
shall be reasonable and designed to obtain prompt and full
repayment of the guaranteed loan by the borrower. Reasonable
loan guarantee fees and points may be charged to applicants and
borrowers by any public or private entity approved by the
department, as described in regulations adopted by the department.

(5) A loan guarantee made pursuant to this section shall only
be granted if the applicant agrees to provide child care in a facility
for a period of 20 years or the term of the guaranteed loan,
whichever is less.

(6) A loan guarantee made pursuant to this section terminates
120 days after the lender’s receipt of notice that the recipient has
either ceased making payments or providing child care in the
facility for which the loan was made, or both, unless the lender
takes action to accelerate the loan. If a family day care provider
ceases to operate, but retains its three-year license, the provider
shall give notice to the department and the lending institution of
its intention to resume offering child care services for the term of
its license, or shall provide notice of its intention to cease providing
child care services. The Child Care and Development Facilities
Loan Guaranty Fund is not liable for a default occurring after the
loan guarantee has ended.

(e) (1) Moneys deposited in the Child Care and Development
Facilities Direct Loan Fund shall be used for the purpose of making
subordinated loans directly or through a public or private entity
approved by the department to sole proprietorships, partnerships,
proprietary and nonprofit corporations, and local public agencies
for the purchase, development, construction, expansion, or
improvement of licensed child care and development facilities,
and for the purpose of administering these loans. Loans shall be
made in accordance with the priorities established by the
department as set forth in Section begin delete 8277.6 end delete begin insert 8399 end insert . The full faith and
credit of the State of California is not pledged to the Child Care
and Development Facilities Direct Loan Fund and the state is not
liable for loan defaults that exceed the amount of funds deposited
in the Child Care and Development Facilities Direct Loan Fund.

(2) A loan made pursuant to this section may not exceed 75
percent of the total amount of investment for the purchase,
development, expansion, or improvement of eligible child care
and development facilities as described in Section begin delete 8277.6 end delete begin insert 8399 end insert
and for related equipment and fixtures, but may not be used
primarily to refinance an existing loan, for working capital, for
supplies, or for inventory. A loan made pursuant to this section
may not exceed 20 percent of the total amount of investment if the
same facility is also utilizing a loan guarantee pursuant to
subdivision (c). Investment for purposes of this paragraph means
the total cost paid or incurred by the applicant in constructing,
renovating, or acquiring a facility. A loan for improvements shall
be limited to those improvements necessary, as determined by the
department, for any of the following purposes:

(A) To obtain, maintain, renew, expand, or revise a child care
license.

(B) To make necessary health and safety improvements.

(C) To make seismic improvements.

(D) To provide access for disabled children.

(E) To expand upon or preserve existing child care operations.

(3) The term of a loan made pursuant to this section may not
exceed 30 years. Security for the loan may include a deed of trust,
personal guarantees of shareholders and partners in the case of
proprietary borrowers, or other reasonably available collateral.
These liens may be subordinated to other liens. The payment
provisions, late charges, and other terms may vary based on the
ability of the borrower to repay the loan, but shall be reasonable
and designed to obtain prompt and full repayment of the loan by
the borrower. A direct loan shall bear simple interest at the rate of
3 percent per annum on the unpaid principal balance. Reasonable
loan fees and points may be charged to applicants and borrowers,
as described in regulations adopted by the department. The
department may permit a loan to be assumed by an otherwise
qualified borrower who agrees to continue to provide child care
for the balance of the original term of the loan.

(f) Funds appropriated for begin delete the end delete purposes of this section and
Section begin delete 8277.6 end delete begin insert 8399 end insert shall be made from funds that are not
designated as meeting the state’s minimum funding obligation
under Section 8 of Article XVI of the California Constitution.

begin insert

begin insert SEC. 46. end insert   

end insert

begin insert Section 8277.6 of the end insert begin insert Education Code end insert begin insert is amended
and renumbered to read: end insert

begin delete 8277.6. end delete
begin insert 8399. end insert   

(a) For purposes of this section “department” means the
Department of Housing and Community Development.

(b) The department shall administer the Child Care and
Development Facilities Loan Guaranty Fund and the Child Care
and Development Facilities Direct Loan Fund. The department
may administer the funds directly, through interagency agreements
with other state agencies, through contracts with public or private
entities, or through any combination thereof. If the department
determines that a public or private entity is capable of making
child care and development facilities loans or loan guarantees, the
department may delegate the authority to review and approve those
loans or guarantees to the public or private entity. The department
is authorized to enter into interagency agreements to carry out the
purposes of this section and Section begin delete 8277.5 end delete begin insert 8398 end insert by utilizing the
services of small business financial development corporations
established pursuant to Chapter 1 (commencing with Section
14000) of Part 5 of Division 3 of the Corporations Code. Toward
this end, the department is authorized to transfer funds from the
Child Care and Development Facilities Direct Loan Fund to the
California Economic Development Grant and Loan Fund
established by Section 15327 of the Government Code and to
transfer funds from the Child Care and Development Facilities
Loan Guaranty Fund to the Small Business Expansion Fund
established by Section 14030 of the Corporations Code. Those
funds shall be deposited into a Child Care Direct Loan Fund
Account and a Child Care Loan Guaranty Fund Account hereby
established in the respective funds. Notwithstanding anything to
the contrary in Chapter 1 (commencing with Section 15310) of
Part 6.7 of Division 3 of Title 2 of the Government Code and
Chapter 1 (commencing with Section 14000) of Part 5 of Division
3 of the Corporations Code, the funds in these accounts shall be
administered in compliance with the requirements of this section
and Section begin delete 8277.5 end delete begin insert 8398 end insert .

(c) Eligible applicants for the loan guaranty program and the
direct loan program shall include, but not be limited to, sole
proprietorships, partnerships, proprietary and nonprofit
corporations, and local public agencies that are responsible for
contracting with or providing licensed child care and development
services. Eligible facilities shall include licensed full-day and
part-day child care and development facilities and licensed large
family day care homes as described in Section 1597.465 of the
Health and Safety Code, and licensed small family day care homes
as described in Section 1597.44 of the Health and Safety Code.

(d) Loan guarantees and direct loans for family child care homes
shall not be made for the purpose of purchasing a home or any real
property.

(e) The State Department of Education shall provide input
regarding program priorities that shall be considered in the funding
of applications by the department. These priorities shall include,
but are not limited to, the following:

(1) Geographic priorities based on the extent of need for child
care and development supply-building efforts in different parts of
the state.

(A) Not less than 30 percent of the loan guarantee and direct
loan obligations shall benefit providers located in rural areas, as
defined in subparagraph (B). If the amount of qualified applications
from rural providers is insufficient to satisfy this requirement, the
excess capacity reserved for rural providers may be made available
to other qualified applications according to the policies and
procedures of the department. The remaining 70 percent of funds
shall be available to rural or urban areas and other priorities in
accordance with this subdivision.

(B) For purposes of subdivision (a), rural communities are
defined by any county with fewer than 400 residents per square
mile.

(2) Age priorities based on the extent of need for child care and
development supply-building efforts for children of different age
groups.

(3) Income priorities shall include families transitioning to work
or other lower income families. For purposes of this section, “lower
income” shall have the same meaning as “income eligible” as set
forth in Section begin delete 8263.1 end delete begin insert 8211 end insert .

(4) Program priorities based on the extent of facilities needs
among specific kinds of providers, including those that contract
to administer state and federally funded child care and development
programs administered by the State Department of Education,
providers who have lost classrooms due to class size reduction or
other state or local initiatives, or providers that need to expand to
meet the needs of a child care initiative for recipients of aid under
Chapter 3 (commencing with Section 11200) of Part 3 of Division
9 of the Welfare and Institutions Code, or any successor program.

(f) The program priorities shall reflect input from representatives
of diverse sectors of the child care and development field, financial
institutions, local planning councils, the Child Development
Programs Advisory Committee, and the State Department of Social
Services for purposes of identifying communities with high
percentages of recipients of aid under Chapter 3 (commencing
with Section 11200) of Part 3 of Division 9 of the Welfare and
Institutions Code, or any successor program, who need child care
to meet work requirements. As part of its annual report to the
Legislature, required pursuant to Section 50408 of the Health and
Safety Code, the department shall assess and report, after
consultation with the State Department of Education, on the
performance, effectiveness, and fiscal standing of the Child Care
and Development Facilities Loan Guaranty Fund and the Child
Care and Development Facilities Direct Loan Fund. The report
shall include information on the number of defaults, the types of
facilities in default, and a review of the adequacy of the set-aside
for rural areas specified in paragraph (1) of subdivision (e).

(g) The department shall adopt regulations and establish
priorities, forms, policies and procedures for implementing and
managing the Child Care and Development Facilities Loan
Guaranty Fund and the Child Care and Development Facilities
Direct Loan Fund and making the loan guarantees and direct loans
authorized hereunder consistent with priorities provided by the
State Department of Education. To the extent feasible, the
department shall use applicant fees and points to cover its
administrative costs. The department may utilize an amount of
money from the Child Care and Development Facilities Loan
Guaranty Fund and the Child Care and Development Facilities
Direct Loan Fund, as appropriate, for reasonable administrative
costs in any given fiscal year. Unless an appropriation for
administrative costs is made in the annual Budget Act that exceeds
the following limits, administrative expenditures shall not exceed
3 percent of the amount appropriated to each fund in the Budget
Act of 1997.

(h) (1) The department shall adopt regulations to efficiently
and effectively implement the microenterprise loan program
described in this subdivision, including, but not limited to, the
following:

(A) Making loans available from the Child Care and
Development Facilities Direct Loan Fund to local microenterprise
loan funds and other lenders who may relend the funds in
appropriate amounts to eligible small family day care home
providers described in Section 1597.44 of the Health and Safety
Code, large family day care home providers described in Section
1597.465 of the Health and Safety Code, and licensed child care
and development facilities that serve up to 35 children.

(B) Authorizing a specified amount of guarantees of small loans
by local microenterprise loan funds and other lenders serving
eligible small family day care home providers described in Section
1597.44 of the Health and Safety Code, large family day care home
providers described in Section 1597.465 of the Health and Safety
Code, and licensed child care and development facilities that serve
up to 35 children.

(2) Notwithstanding anything to the contrary in this section or
Section begin delete 8277.5 end delete begin insert 8398 end insert , a loan made pursuant to this subdivision
shall not be made for less than five thousand dollars ($5,000) or
for more than fifty thousand dollars ($50,000) and shall not be
subject to the 75-percent investment restriction contained in
paragraph (2) of subdivision (e) of Section begin delete 8277.5 end delete begin insert 8398 end insert .

(i) The department may adopt regulations for the purposes of
this section as emergency regulations in accordance with Chapter
3.5 (commencing with Section 11340) of Part 1 of Division 3 of
Title 2 of the Government Code. For the purposes of the
Administrative Procedure Act, including Section 11349.6 of the
Government Code, the adoption of the regulations shall be deemed
to be an emergency and necessary for the immediate preservation
of the public peace, health and safety, or general welfare,
notwithstanding subdivision (e) of Section 11346.1 of the
Government Code. Notwithstanding subdivision (e) of Section
11346.1, any regulation adopted pursuant to this section shall not
remain in effect more than 180 days unless the department complies
with all provisions of Chapter 3.5 (commencing with Section
11340) of Part 1 of Division 3 of Title 2 of the Government Code,
as required by subdivision (e) of Section 11346.1 of the
Government Code.

begin insert

begin insert SEC. 47. end insert   

end insert

begin insert Section 8277.65 of the end insert begin insert Education Code end insert begin insert is amended
and renumbered to read: end insert

begin delete 8277.65. end delete
begin insert 8400. end insert   

The Child Care and Development Facilities Loan
Guaranty Fund, the Child Care and Development Facilities Direct
Loan Fund, and the Child Care Loan Guaranty Fund Account in
the Small Business Expansion Fund are abolished. All moneys
remaining in the Child Care and Development Facilities Loan
Guaranty Fund, the Child Care and Development Facilities Direct
Loan Fund, and the Child Care Loan Guaranty Fund Account in
the Small Business Expansion Fund shall revert to the General
Fund. The Department of Housing and Community Development
shall deposit all subsequent loan repayments to the Treasurer to
the credit of the General Fund. The abolishment of the Child Care
and Development Facilities Loan Guaranty Fund, the Child Care
and Development Facilities Direct Loan Fund, and the Child Care
Loan Guaranty Fund Account in the Small Business Expansion
Fund does not terminate any of the following rights, obligations,
or authorities, or any provision necessary to carry out those rights,
obligations, or authorities:

(a) The repayment of loans due and payable to the department
or the relevant financial company.

(b) The obligation of the state to pay claims arising from the
default of outstanding loans that have been guaranteed.

(c) Payment to lenders for default of any outstanding guaranteed
loans secured by those moneys.

(d) The resolution of any cost recovery action.

begin insert

begin insert SEC. 48. end insert   

end insert

begin insert Section 8277.66 of the end insert begin insert Education Code end insert begin insert is amended
and renumbered to read: end insert

begin delete 8277.66. end delete
begin insert 8401. end insert   

Notwithstanding any other begin delete provision of end delete law, up to one
hundred thirty-nine thousand dollars ($139,000) may be transferred
from the General Fund to the Small Business Expansion Fund
upon the order of the Director of Finance if funds are needed to
pay a loan guarantee made from the Small Business Expansion
Fund pursuant to Sections begin delete 8277.5 end delete begin insert 8398 end insert and begin delete 8277.6 end delete begin insert 8399 end insert . This
authority shall expire on the date upon which all loan guarantees
outstanding as of July 1, 2008, are retired, or January 1, 2020,
whichever occurs first.

begin insert

begin insert SEC. 49. end insert   

end insert

begin insert Section 8277.7 of the end insert begin insert Education Code end insert begin insert is amended
and renumbered to read: end insert

begin delete 8277.7. end delete
begin insert 8396. end insert   

(a) As used in this section:

(1) “Board” means the State Allocation Board.

(2) “Lessee” means a child care and development contracting
agency to whom the board has leased a relocatable facility pursuant
to this section.

(b) The board, with the advice of the Superintendent begin delete of Public
Instruction end delete , may do all of the following:

(1) Establish any qualifications that it deems will best serve the
purposes of this section for determining the eligibility of child care
and development contracting agencies to lease relocatable facilities
under this section.

(2) Establish any procedures and policies in connection with
the administration of this section that it deems necessary.

(3) Adopt any rules and regulations for the administration of
this section requiring such procedure, forms, and information that
it may deem necessary.

(4) Have constructed, furnished, equipped, or otherwise require
whatever work is necessary to place relocatable child care and
development facilities where needed.

(5) Own, have maintained, and lease relocatable classrooms to
qualifying child care and development contracting agencies.

(c) The board shall lease relocatable facilities to qualifying child
care and development contracting agencies and shall charge rent
of one dollar ($1) per year. The board shall require lessees to
undertake all necessary maintenance, repairs, renewal, and
replacement to ensure that a project is at all times kept in good
repair, working order, and condition. All costs incurred for this
purpose shall be borne by the lessee.

(d) The board shall require lessees to insure at their own expense
for the benefit of the state, any leased relocatable facility which is
the property of the state, against any risks, including liability from
the use thereof, in the amounts the board may deem necessary to
protect the interest of the state.

(e) The board shall have authority to adopt rules establishing
priorities for the acquisition and leasing of facilities to contracting
agencies begin delete which end delete begin insert that end insert will most benefit children needing child care
and development programs. The board shall require each lessee
to demonstrate that relocatable facilities are utilized solely for
operation of child care and development programs.

(f) No relocatable facilities shall be made available to a
contracting agency unless the agency furnishes evidence,
satisfactory to the board, that the contracting agency has no other
facility available for rental, lease, or purchase in the geographic
service area that is economically or otherwise feasible.

(g) The board shall have prepared for its use, performance
specifications for relocatable facilities and bids for their
construction that can be solicited from more than one responsible
bidder. The board shall from time to time solicit bids from, and
award to, the lowest responsible competitive bidder, contracts for
the construction or purchase of relocatable facilities that have been
approved for lease to eligible child care and development
contracting agencies.

(h) If at any time the board determines that a lessee’s need for
particular relocatable facilities begin delete which end delete begin insert that end insert were made available to
the lessee pursuant to this chapter has ceased, the board may take
possession of the relocatable facilities and may lease them to other
eligible contracting agencies or, if there is no longer a need for the
relocatable facilities, the board may dispose of them to public or
private parties in the manner it deems to be in the best interests of
the state.

begin delete

Any

end delete

begin insert (i) end insert begin insert   end insert begin insert Any end insert revenue begin delete which end delete begin insert that end insert is derived from a lease or other
disposition of the relocatable facilities pursuant to this section is
continuously appropriated to the board for the purposes of this
section to fund the purchase of other relocatable facilities for child
care and development programs.

begin insert

begin insert SEC. 50. end insert   

end insert

begin insert Section 8277.8 of the end insert begin insert Education Code end insert begin insert is amended
and renumbered to read: end insert

begin delete 8277.8. end delete
begin insert 8407. end insert   

In the event that a school district elects to discontinue
its contract for child development services, the facilities owned
by the school district and constructed through the provisions of
the local tax override for child development purposes shall be
made available to the local contractor whose bid is accepted for
continuation of the services.

The rent for such facilities shall not exceed the prevailing rental
rate for such facilities.

begin insert

begin insert SEC. 51. end insert   

end insert

begin insert Section 8278.3 of the end insert begin insert Education Code end insert begin insert is amended
and renumbered to read: end insert

begin delete 8278.3. end delete
begin insert 8394. end insert   

(a) (1) The Child Care Facilities Revolving Fund is
hereby established in the State Treasury to provide funding for the
renovation, repair, or improvement of an existing building to make
the building suitable for licensure for begin delete child care and development end delete
begin insert early learning and educational support end insert services and for the
purchase of new relocatable child care facilities for lease to school
districts and contracting agencies that provide begin delete child care and
development end delete begin insert early learning and educational support end insert services,
pursuant to this chapter. The Superintendent may transfer state
funds appropriated for child care facilities into this fund for
allocation to school districts and contracting agencies, as specified,
for the purchase, transportation, and installation of facilities for
replacement and expansion of capacity. School districts and
contracting agencies using facilities made available by the use of
these funds shall be charged a leasing fee, either at a fair market
value for those facilities or at an amount sufficient to amortize the
cost of purchase and relocation, whichever amount is lower, over
a 10-year period. Upon full repayment of the purchase and
relocation costs, title shall transfer from the State of California to
the school district or contracting agency. The Superintendent shall
deposit all revenue derived from the lease payments into the Child
Care Facilities Revolving Fund.

(2) Notwithstanding Section 13340 of the Government Code,
all moneys in the fund, including moneys deposited from lease
payments, are continuously appropriated, without regard to fiscal
years, to the Superintendent for expenditure pursuant to this article.

(b) On or before August 1 of each fiscal year, the Superintendent
shall submit to the Department of Finance and the Legislative
Analyst’s Office a report detailing the number of funding requests
received and their purpose, the types of agencies that received
funding from the Child Care Facilities Revolving Fund, the
increased capacity that these facilities generated, a description of
the manner in which the facilities are being used, and a projection
of the lease payments collected and the funds available for future
use.

(c) A school district or county office of education that provides
child care pursuant to the California School Age Families
Education Program (Article 7.1 (commencing with Section 54740)
of Chapter 9 of Part 29 of Division 4 of Title 2) is eligible to apply
for and receive funding pursuant to this section.

begin insert

begin insert SEC. 52. end insert   

end insert

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

begin delete 8279.1. end delete
begin insert 8368. end insert   

begin delete (a) end delete begin delete   end delete The Legislature recognizes that child care programs
have made valuable contributions towards ensuring that public
assistance recipients will be able to accept and maintain
employment or employment-related training. begin delete Therefore, it is the
intent of the Legislature that the Superintendent ensure that
counties comply with the requirements of Section 8279. end delete

begin delete

(b) The Superintendent shall ensure each county’s compliance
with Section 8279 by not issuing funds to a local child care
contractor within a county until the Superintendent has received
written certification from that county that the level of expenditure
for child care services provided by the county has been maintained
at the 1970-71 fiscal year level pursuant to Section 8279. Funding
provided by a county to a local child care contractor shall not
adversely affect the reimbursement received by the agency from
the Superintendent pursuant to Section 8265, 8265.5, or 8266.

end delete

begin insert

begin insert SEC. 53. end insert   

end insert

begin insert Section 8279.4 of the end insert begin insert Education Code end insert begin insert is amended
and renumbered to read: end insert

begin delete 8279.4. end delete
begin insert 8388. end insert   

The Legislature finds and declares the following:

(a) There is a serious shortage of quality child day care facilities
throughout the state.

(b) It is in the interest of the state’s children and families, and
the state’s economic growth, to encourage the expansion of existing
child day care facilities by assisting communities and interested
government and private entities to finance child day care facilities.

(c) In addition to regional resource centers described in
Provision 7(d) of Item 6110-196-0001 of the Budget Act of 1999,
which focus on developing child care capacity in underserved areas
of the state, there is a need to access capital for facilities on a
systematic basis, especially to use limited public sector funds to
leverage a greater private sector role in financing child day care
facilities. The Legislature finds and declares that a financial
intermediary could fill this role and support the regional resource
centers and other local entities that work with potential providers
by functioning as a centralized repository of training, best practices,
and expertise on facilities financing.

begin insert

begin insert SEC. 54. end insert   

end insert

begin insert Section 8279.5 of the end insert begin insert Education Code end insert begin insert is amended
and renumbered to read: end insert

begin delete 8279.5. end delete
begin insert 8393. end insert   

(a) The Superintendent begin delete of Public Instruction end delete shall
contract with a nonprofit organization to serve as a financial
intermediary. The nonprofit organization shall have staff who have
expertise in financing and capital expansion, are knowledgeable
about the child care field, and have the ability to develop and
implement a plan to increase the availability of financing to
renovate, expand, and construct child day care facilities, both in
day care centers and family day care homes.

(b) The financial intermediary selected by the Superintendent
begin delete of Public Instruction end delete shall undertake activities designed to increase
funds available from the private and public sectors for the financing
of child day care facilities. These activities shall include, but are
not limited to, all of the following:

(1) Soliciting capital grants and program-related investments
from foundations and corporations.

(2) Building partnerships with foundations and corporations.

(3) Developing lending commitments, linked deposits, and other
financing programs with conventional financial institutions.

(4) Coordinating private sources of capital with existing public
sector sources of financing for child day care facilities, including,
but not limited to, the Department of Housing and Community
Development and the California Infrastructure and Economic
Development Bank.

(5) Coordinating financing efforts with the technical assistance
provided by the regional resource centers described in Provision
7(d) of Item 6110-196-0001 of the Budget Act of 1999, and other
local entities that work with potential providers.

(c) This section shall only be implemented to the extent that
funds are appropriated for this purpose in the annual Budget Act.

begin insert

begin insert SEC. 55. end insert   

end insert

begin insert Section 8279.6 of the end insert begin insert Education Code end insert begin insert is amended
and renumbered to read: end insert

begin delete 8279.6. end delete
begin insert 8395. end insert   

(a) Pursuant to funding made available in subdivision
(d) of Provision 7 of Item 6110-196-001 of the Budget Act of
2000, the Superintendent begin delete of Public Instruction end delete shall contract for a
financial intermediary, pursuant to Section 8290.1, by January 1,
2001.

(b) The financial intermediary, during its first six months of
operation, shall do all of the following:

(1) Create and publicize an 800 technical assistance telephone
service number.

(2) Provide financial development training for agencies at the
local level including, but not limited to, Regional Resource Centers,
Resource and Referral Agencies, and local child care planning
councils that are assisting existing and potential providers renovate,
expand, build begin insert , end insert or purchase facilities.

(3) Determine the financing barriers and impediments to the
development of child care facilities, especially in underserved
areas of the state.

(4) Identify funding sources that may be leveraged by the state,
and partnerships with the philanthropic and corporate sectors that
may be established, with the goal of increasing funding available
for child care facilities for California’s CalWORKs and low-income
families.

begin insert

begin insert SEC. 56. end insert   

end insert

begin insert Section 8279.7 of the end insert begin insert Education Code end insert begin insert is amended
and renumbered to read: end insert

begin delete 8279.7. end delete
begin insert 8303. end insert   

(a) The Legislature recognizes the importance of
providing quality begin delete child care end delete begin insert early learning and educational support end insert
services. It is, therefore, the intent of the Legislature to assist
counties in improving the retention begin insert and instructional effectiveness end insert
of qualified begin delete child care end delete begin insert instructional end insert employees who work directly
with children who receive state-subsidized begin delete child care end delete begin insert early learning
and educational support end insert services.

(b) It is further the intent of the Legislature, in amending this
section during the 2009-10 Regular Session, to address the unique
challenges of the County of Los Angeles, in which an estimated
60,000 low-income children receive subsidized child care in
nonstate-funded child care settings and an additional 50,000
eligible children are waiting for subsidized services.

(c) (1) Except as provided in paragraph (2), the funds
appropriated for the purposes of this section by paragraph (11) of
Schedule (b) of Item 6110-196-0001 of Section 2.00 of the Budget
Act of 2000 (Chapter 52 of the Statutes of 2000), and that are
described in subdivision (i) of Provision 7 of that item, and any
other funds appropriated for purposes of this section, shall be
allocated to local child care and development planning councils
based on the percentage of state-subsidized, begin delete center-based child
care end delete begin insert direct classroom early learning and educational support
program end insert funds received in that county, and shall be used to address
the retention of qualified begin delete child care end delete begin insert instructional end insert employees in
state-subsidized begin delete child care end delete begin insert early learning and educational support end insert
centers.

(2) Of the funds identified in paragraph (1), funds qualified
pursuant to subparagraphs (A) to (C), inclusive, may also be used
to address the retention begin insert and instructional effectiveness end insert of qualified
persons working in licensed begin delete child care end delete begin insert early learning and
educational support end insert programs begin insert and end insert that serve a majority of children
who receive begin insert direct classroom end insert subsidized begin delete child care end delete services
pursuant to this chapter, including, but not limited to, family begin delete day end delete
care homes as defined in Section 1596.78 of the Health and Safety
Code. To qualify for use pursuant to this paragraph, the funds shall
meet all of the following requirements:

(A) The funds are allocated for use in the County of Los
Angeles.

(B) The funds are appropriated in the annual Budget Act.

(C) The funds are unexpended after addressing the retention of
qualified begin delete child care end delete employees in state-subsidized child care centers
and family child care home education networks.

(d) The department shall develop guidelines for use by local
begin delete child care and development end delete planning councils in developing county
plans for the expenditure of funds allocated pursuant to this section.
These guidelines shall be consistent with the department’s
assessment of the current needs of the subsidized child care
workforce, and shall be subject to the approval of the Department
of Finance. Any county plan developed pursuant to these guidelines
shall be approved by the department begin delete prior to end delete begin insert before end insert the allocation
of funds to the local child care and development planning council.

(e) Funds provided to a county for begin delete the end delete purposes of this section
shall be used in accordance with the plan approved pursuant to
subdivision (d). A county with an approved plan may retain up to
1 percent of the county’s total allocation made pursuant to this
section for reimbursement of administrative expenses associated
with the planning process.

(f) The Superintendent shall provide an annual report, no later
than April 10 of each year, to the Legislature, the Department of
Finance, and the Governor that includes, but is not limited to, a
summary of the distribution of the funds by county and a
description of the use of the funds.

begin insert

begin insert SEC. 57. end insert   

end insert

begin insert The heading of Article 7 (commencing with Section
8285) is added to Chapter 2 of Part 6 of Division 1 of Title 1 of
the end insert begin insert Education Code end insert begin insert , to read: end insert

begin insert

 

Article begin insert 7. end insert   Resource and Referral Programs

 

end insert

begin insert

begin insert SEC. 58. end insert   

end insert

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

begin insert

begin insert SEC. 59. end insert   

end insert

begin insert Section 8292 is added to the end insert begin insert Education Code end insert begin insert , to read: end insert

begin insert

begin insert 8292. end insert   

A licensed provider shall submit to the local resource
and referral agency a copy of the provider’s rate sheet listing rates
charged and the provider’s discount or scholarship policies, if
any, and shall self-certify that the information is correct.

end insert

begin insert

begin insert SEC. 60. end insert   

end insert

begin insert Section 8293 is added to the end insert begin insert Education Code end insert begin insert , to read: end insert

begin insert

begin insert 8293. end insert   

(a) A program operating pursuant to this article shall,
within two business days of receiving notice, remove a licensed
child care facility with a revocation or a temporary suspension
order or that is on probation from the agency’s referral list.

(b) A program operating pursuant to this article shall, within
two business days of receiving notice, notify all entities operating
a program pursuant to Article 4 (commencing with Section 8240)
and Article 4.5 (commencing with Section 8252), in the program’s
jurisdiction, of a licensed child care facility with a revocation or
a temporary suspension order, or that is on probation.

end insert

begin insert

begin insert SEC. 61. end insert   

end insert

begin insert The heading of Article 8 (commencing with Section
8296) is added to Chapter 2 of Part 6 of Division 1 of Title 1 of
the end insert begin insert Education Code end insert begin insert , to read: end insert

begin insert

 

Article begin insert 8. end insert   Family Literacy

 

end insert

begin insert

begin insert SEC. 62. end insert   

end insert

begin insert The heading of Article 9 (commencing with Section
8300) is added to Chapter 2 of Part 6 of Division 1 of Title 1 of
the end insert begin insert Education Code end insert begin insert , to read: end insert

begin insert

 

Article begin insert 9. end insert   Local Planning Councils

 

end insert

begin insert

begin insert SEC. 63. end insert   

end insert

begin insert The heading of Article 10 (commencing with Section
8305) is added to Chapter 2 of Part 6 of Division 1 of Title 1 of
the end insert begin insert Education Code end insert begin insert , to read: end insert

begin insert

 

Article begin insert 10. end insert   Child Development Permits

 

end insert

begin insert

begin insert SEC. 64. end insert   

end insert

begin insert Article 11 (commencing with Section 8310) is added
to Chapter 2 of Part 6 of Division 1 of Title 1 of the end insert begin insert Education
Code end insert begin insert , to read: end insert

begin insert

 

Article begin insert 11. end insert   Administration

 

begin insert 8310. end insert   

(a) The Legislature finds and declares that the
effectiveness of early learning and educational support programs
can be increased through improved state administration, technical
assistance to provider agencies, and monitoring.

(b) It is the intent of the Legislature:

(1) That the department develops clear, consistent, and
appropriate regulations for early learning and educational support
programs.

(2) That the department makes better use of staff with direct
field experience in early learning and educational support
programs.

(3) That criteria be developed for the awarding, evaluating,
and renewal of early learning and educational support contracts.

(4) That improvements be made in the method of reimbursing
providers.

(5) That increased effort be made to provide program operators
with technical assistance in meeting their contractual obligations.

begin insert 8311. end insert   

(a) The department is hereby designated as the single
state agency responsible for the promotion, development, and
provision of care of children in the absence of their parents during
the workday or while engaged in other activities that require
assistance of a third party or parties. The department shall
administer the federal Child Care and Development Fund.

(b) For purposes of this article, “Child Care and Development
Fund” has the same meaning as in Section 98.2 of Title 45 of the
Code of Federal Regulations.

begin insert 8312. end insert   

(a) The Superintendent shall collaborate with the
Secretary of California Health and Human Services in the
development of the Child Care and Development Fund plan
pursuant to federal regulations, before submitting or reporting on
that plan to the United States Secretary of Health and Human
Services.

(b) As required by federal law, the department shall develop
the Child Care and Development Fund plan that sets forth the
final priorities for child care. The department shall coordinate
with applicable state agencies including, but not limited to, the
State Department of Social Services, the California Children and
Families Commission, the Department of Finance, and other
stakeholders, to develop the Child Care and Development Fund
(CCDF) Plan.

(c) On or before February 1 of the year that the CCDF Plan is
due to the federal government, the department shall release a draft
of the plan. The department shall then commence a 30-day
comment period that shall include at least one hearing and the
opportunity for written comments.

(d) Before the May Revision to the budget, the department shall
provide the revised CCDF Plan to the chairs of the committees of
each house of the Legislature that consider appropriations, and
shall provide a report on the plan to the committees in each house
of the Legislature that consider the annual Budget Act
appropriation.

begin insert 8313. end insert   

The Superintendent shall consult with the Commission
on Teacher Credentialing and the office of the Chancellor of the
California Community Colleges in development of the state plan,
where appropriate.

begin insert 8314. end insert   

For purposes of meeting state and federal reporting
requirements and for the effective administration of early learning
and educational support programs, the Superintendent is
authorized to require the collection and submission of social
security numbers of heads of households, and other information
as required, from public and private agencies contracting with the
department pursuant to this chapter, including local educational
agencies.

begin insert 8315. end insert   

(a) To the extent that funding is made available for this
purpose through the annual Budget Act, the alternative payment
agency in each county shall design, maintain, and administer a
system to consolidate local child care waiting lists so as to
establish a countywide centralized eligibility list. In those counties
with more than one alternative payment agency, the agency that
also administers the resource and referral program shall have the
responsibility of developing, maintaining, and administering the
countywide centralized eligibility list. In those counties with more
than one alternative payment agency and more than one resource
and referral program, the department shall establish a process to
select an agency to develop, maintain, and administer the
countywide centralized eligibility list.

(b) Notwithstanding subdivision (a), in those counties in which
a countywide centralized eligibility list exists, as of the date that
the act adding this section is enacted, the entity administering that
list may receive funding, instead of the entity specified under
subdivision (a).

(c) Each centralized eligibility list shall include all of the
following:

(1) Family characteristics, including ZIP Code of residence,
ZIP Code of employment, monthly income, and size.

(2) Child characteristics, including birth date and whether the
child has special needs.

(3) Service characteristics, including reason for need, whether
full-time or part-time service is requested, and whether after hours
or weekend care is requested.

(d) Information collected for the centralized eligibility list shall
be reported to the Superintendent on an annual basis on the date
and in the manner determined by the department.

(e) (1) To be eligible to enter into an agreement with the
department to provide subsidized child care, a contractor shall
participate in and use the centralized eligibility list.

(2) A contractor with a campus child care and development
program operating pursuant to Section 66060, program operating
on a seasonal basis providing services to a migrant population
pursuant to Sections 8221 to 8224, inclusive, or program serving
severely disabled children pursuant to subdivision (d) of Section
8230 and who has a local site waiting list shall submit eligibility
list information to the centralized eligibility list administrator for
any parent seeking subsidized services for whom these programs
are not able to provide services. A contractor or program described
in this paragraph may use any waiting lists developed at its local
site to fill vacancies for its specific population. Families enrolled
from a local site waiting list shall be enrolled pursuant to Section
8212.

begin insert 8316. end insert   

(a) No person employed by the department in a
policymaking position in the area of early learning and educational
support programs shall serve as a member of the board of
directors, advisory council, or advisory committee for any agency
receiving funds pursuant to this chapter.

(b) No retired, dismissed, separated, or formerly employed
person of the department employed under the State Civil Service
or otherwise appointed to serve in the department may enter into
a contract pursuant to Section 8326 in which he or she engaged
in any of the negotiations, transactions, planning, arrangements,
or any part of the decisionmaking process relevant to the contract
while employed in any capacity by the department. The prohibition
contained in this subdivision shall apply to the person only during
the two-year period beginning on the date the person left state
employment.

(c) For a period of 12 months following the date of his or her
retirement, dismissal, or separation from state service, no person
employed under State Civil Service or otherwise appointed to serve
in the department may enter into a contract pursuant to Section
8326 if he or she was employed by the department in a
policymaking position in the area of early learning and educational
support programs within the 12-month period before his or her
retirement, dismissal, or separation.

(d) For a period of 12 months following the date of his or her
retirement, dismissal, or separation from state service, no person
employed under State Civil Service or otherwise appointed to serve
in the department may be employed by a contractor pursuant to
Section 8326 if he or she engaged in any of the negotiations,
transactions, planning, arrangements, or any part of the
decisionmaking process relevant to the contract while employed
in any capacity by the department.

begin insert 8317. end insert   

The Superintendent may provide outreach services and
technical assistance to new applicants or contracting agencies
and to those providing services during nontraditional times, in
underserved geographic areas, and for children with special child
care needs, including infants and toddlers less than three years of
age.

begin insert 8318. end insert   

(a) If a state of emergency is declared by the Governor,
the Superintendent may waive any requirements of this code or
regulations adopted pursuant to this code relating to early learning
and educational support and child nutrition programs operated
pursuant to this chapter only to the extent that enforcement of the
regulations or requirements would directly impede disaster relief
and recovery efforts or would disrupt the current level of service
in early learning and educational support programs.

(b) A waiver granted pursuant to subdivision (a) shall not exceed
45 calendar days.

(c) For purposes of this section, “state of emergency” includes
fire, flood, earthquake, or a period of civil unrest.

(d) If a request for a waiver pursuant to subdivision (a) is for
an early learning and educational support program or child
nutrition program that receives federal funds and the waiver may
be inconsistent with the state plan or any federal law or regulations
governing the program, the Superintendent shall seek and obtain
approval of the waiver from the appropriate federal agency before
granting the waiver.

begin insert 8319. end insert   

(a) The Superintendent shall adopt rules and regulations
pursuant to this chapter. The rules and regulations shall include,
but not be limited to, provisions that do all of the following:

(1) Provide clear guidelines for the selection of agencies when
early learning and educational support contracts are let, including,
but not limited to, a 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 and program narratives 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 that shall be as frequently as staff
and budget resources permit. By September 1 of each year, the
department shall report to the Senate Education, Senate Health,
Senate Human Services, Assembly Education, and Assembly
Human Services Committees on the number of visits conducted
during the previous fiscal year pursuant to this paragraph.

(7) Permit reimbursement for interest paid by contractors on
private sector debt financing for purchase, lease-purchase, repair,
or renovation of facilities owned or leased by contractors operating
direct classroom service, pursuant to Section ____.

(8) Facilitate the funding and reimbursement procedures
required by Sections ____ and ____.

(b) The Superintendent shall consult with the State Department
of Social Services with respect to rules and regulations adopted
relative to the disbursal of federal funds under Title XX of the
federal Social Security Act.

(c) For purposes of expediting the implementation of state or
federal legislation to expand child care services, the Superintendent
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
Superintendent 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.

(d) Early learning and educational support programs operated
under contract from funds made available pursuant to the federal
Child Care and Development Fund, shall be administered
according to Division 19 (commencing with Section 17906) of
Chapter 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.

end insert

begin insert

begin insert SEC. 65. end insert   

end insert

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

begin delete

 

Article 15.  Local Programs

 

end delete

begin insert

begin insert SEC. 66. end insert   

end insert

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

begin delete 8320. end delete
begin insert 8408. end insert   

The governing board of any school district or a county
superintendent of schools with the approval of the county board
of education is authorized to establish and maintain begin delete child
development end delete begin insert early learning and educational support end insert programs
begin insert and centers end insert upon the approval of, and subject to the regulations
of the Superintendent begin delete of Public Instruction end delete .

begin insert

begin insert SEC. 67. end insert   

end insert

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

begin delete 8321. end delete
begin insert 8409. end insert   

begin insert (a) end insert begin insert   end insert The county superintendent of schools in each county,
with the approval of the county board of education and the
Superintendent of Public Instruction, shall have the authority to
establish and maintain begin delete child development end delete begin insert early learning and
educational support end insert programs and centers in the same manner and
to the same extent as governing boards of school or community
college districts, except that nothing in this section shall be
construed as vesting in the county superintendents of schools any
authority to alone effect the levy and collection of any county,
school, or other local taxes for the support of any begin delete child
development end delete begin insert early learning and educational support end insert programs
and centers.

begin delete

The

end delete

begin insert (b) end insert begin insert   end insert begin insert The end insert establishment and maintenance of any begin delete child development end delete
begin insert early learning and educational support end insert program and center by the
county superintendent of schools shall be undertaken, subject to
the prior approval of both the county board of education and the
Superintendent of Public Instruction, upon the application of one
or more school districts under his or her jurisdiction.

begin insert

begin insert SEC. 68. end insert   

end insert

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

begin delete 8322. end delete
begin insert 8416. end insert   

The governing board of any school district or the county
superintendent of schools may do the following:

(a) Accommodate in a child development facility maintained
by it children residing in another district, upon terms and under
conditions agreed upon by the governing boards of both districts.

(b) Permit the use of, and furnish maintenance for, buildings,
grounds, and equipment, and the use of existing administrative
personnel for the purposes of this chapter.

(c) Adopt reasonable rules and regulations governing the child
development services or facilities maintained by it that are not in
conflict with law or the standards and regulations established for
child development services by the Superintendent of Public
Instruction.

begin insert

begin insert SEC. 69. end insert   

end insert

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

begin delete 8324. end delete
begin insert 8411. end insert   

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

begin insert

begin insert SEC. 70. end insert   

end insert

begin insert Article 12 (commencing with Section 8325) is added
to Chapter 2 of Part 6 of Division 1 of Title 1 of the end insert begin insert Education
Code end insert begin insert , to read: end insert

begin insert

 

Article begin insert 12. end insert   Contract Administration

 

begin insert 8325. end insert   

The department shall do all of the following in
administering the provisions of this chapter:

(a) Apply sanctions against contracting agencies that have
serious licensing violations, as defined and reported by the State
Department of Social Services.

(b) Provide 90 days’ written notification to any contractor whose
agreement is being terminated, except if there is imminent danger
to the health and welfare of children if agency operation is not
terminated more promptly. Notwithstanding Sections 8337 to 8348,
inclusive, the department shall establish procedures for placing a
contractor whose agreement is being terminated into receivership.
Action to initiate receivership shall be at the discretion of the
department, and may be taken against a contractor whose
agreement is being terminated either immediately or within 90
days. The receiver shall not be a department employee. The
receiver shall have sufficient experience in the administration of
early learning and educational support programs to ensure
compliance with the terms of the receivership.

begin insert 8326. end insert   

Notwithstanding Sections 14616 and 14780 of the
Government Code, the Superintendent may enter into and execute
local contractual agreements with any public or private entity or
agency for the delivery of early learning and educational support
services or the furnishing of property, facilities, personnel,
supplies, equipment, and administrative services related to the
delivery of early learning and educational support services.

begin insert 8327. end insert   

A contractor providing services pursuant to this chapter
is subject to the requirements of the Americans with Disabilities
Act (42 U.S.C. Sec. 12101 et seq.).

begin insert 8328. end insert   

(a) In contract transfer situations in programs funded
pursuant to this chapter, the Superintendent may grant a certificate
of operation to child care and development facilities pursuant to
this section.

(b) For purposes of maintaining continuity of services to
children and receipt of state and federal child nutrition and child
development funding, the Superintendent may grant a certificate
of operation to any child care and development facility that meets
all of the following conditions:

(1) The Superintendent, or his or her designee, has visited the
facility and verified, in writing, to the State Department of Social
Services licensing agency that the facility has no deficiencies at
the time of granting the certificate of operation that would
endanger the physical health, mental health, safety, or welfare of
the children.

(2) Without a certificate of operation in lieu of a license from
the State Department of Social Services, the facility would be
ineligible to receive state and federal child nutrition or child
development funds.

(c) A facility issued a certificate of operation pursuant to this
section shall be deemed to be operating under licensing standards
for child care and development facilities specified by Chapters 3.4
(commencing with Section 1596.70), 3.5 (commencing with Section
1596.90), and 3.6 (commencing with Section 1597.30) of Division
2 of the Health and Safety Code and by Title 22 of the California
Code of Regulations for the term specified on the certificate.

(d) A facility granted a certificate of operation shall submit a
completed license application to the State Department of Social
Services or other designated local agency within 15 working days
of the issuance of the certificate of operation. Failure to meet this
requirement will result in the cancellation of the certificate of
operation. The certificate of operation shall expire upon the
issuance or denial of a license by the State Department of Social
Services.

begin insert 8329. end insert   

(a) Notwithstanding any other law, effective July 1,
2011, the department shall reduce the maximum reimbursable
amounts of the contracts for the Preschool Education Program,
the General Child Care Program, the Migrant Day Care Program,
the Alternative Payment Program, the CalWORKs Stage 3
Program, and the Allowance for Handicapped Program by 11
percent or by whatever proportion is necessary to ensure that
expenditures for these programs do not exceed the amounts
appropriated for them, including any reductions made subsequent
to the adoption of the annual Budget Act. The department may
consider the contractor’s performance or whether the contractor
serves children in underserved areas as defined in subdivision (at)
of Section 8208 when determining contract reductions, provided
that the aggregate reduction to each program specified in this
subdivision is 11 percent or by whatever proportion is necessary
to ensure that expenditures for these programs do not exceed the
amounts appropriated for them, including any reductions made
subsequent to the adoption of the annual Budget Act.

(b) Notwithstanding any other law, effective July 1, 2011,
families shall be disenrolled from subsidized child care services,
consistent with the priorities for services specified in Section 8212.
Families shall be disenrolled in the following order:

(1) Families whose income exceeds 70 percent of the state
median income (SMI) adjusted for family size, except for families
whose children are receiving child protective services or are at
risk of being neglected or abused.

(2) Families with the highest income below 70 percent of the
SMI, in relation to family size.

(3) Families that have the same income and have been enrolled
in child care services the longest.

(4) Families that have the same income and have a child with
exceptional needs.

(5) Families whose children are receiving child protective
services or are at risk of being neglected or abused, regardless of
family income.

begin insert 8330. end insert   

(a) Notwithstanding any other law, and in addition to
any reductions applied pursuant to Section 8329, effective July 1,
2012, the department shall reduce the maximum reimbursable
amounts of the contracts for the General Child Care Program, the
Migrant Day Care Program, the Alternative Payment Program,
the CalWORKs Stage 3 Program, and the Allowance for
Handicapped Program by 8.7 percent or by whatever proportion
is necessary to ensure that expenditures for these programs do not
exceed the amounts appropriated for them, as adjusted for any
reductions in appropriations made subsequent to the adoption of
the annual Budget Act. The department may consider the
contractor’s performance or whether the contractor serves children
in underserved areas as defined in subdivision (at) of Section 8208
when determining contract reductions, provided that the aggregate
reduction to each program specified in this subdivision is 8.7
percent or whatever proportion is necessary to ensure that
expenditures for these programs do not exceed the amounts
appropriated for them, as adjusted for any reductions in
appropriations made subsequent to the adoption of the annual
Budget Act.

(b) Notwithstanding any other law, effective July 1, 2012,
families shall be disenrolled from subsidized child care services,
consistent with the priorities for services specified in Section 8212.
Families shall be disenrolled in the following order:

(1) Families with the highest income in relation to family size.

(2) Families that have the same income and have been enrolled
in child care services the longest.

(3) Families that have the same income and have a child with
exceptional needs.

(4) Families whose children are receiving child protective
services or are at risk of being neglected or abused, regardless of
family income.

begin insert 8331. end insert   

(a) The rules, regulations, and guidelines adopted by
the Superintendent pursuant to Sections 8319 and 8352 shall permit
reimbursement for interest paid by contractors on private sector
debt financing for the purchase, lease-purchase, repair, or
renovation of child care and development facilities owned or leased
by contractors providing center-based care.

(b) The Superintendent shall adopt regulations requiring
contractors to demonstrate that the amount of interest paid in a
year on private sector debt financing for the purposes identified
in subdivision (a) does not exceed the value obtained by the state
in the use of the facilities during the year for the early learning
and educational support programs. The regulations shall include,
but not be limited to, the following methods of making this
demonstration:

(1) Amortization of a loan or lease-purchase contract on a
straight-line basis for the purchase price of a portable building,
including any transportation charges, installation charges, loan
fees, taxes, points, or other fees associated with the purchase, over
a period of 15 years or more.

(2) Amortization of a loan or lease-purchase contract on a
straight-line basis for the purchase price of a permanent building
and real estate, including any loan fees, taxes, points, or other
fees associated with the purchase, over a period of 15 years or
more.

(3) Evidence acceptable to the Superintendent that loan
payments for the purchase of a portable building or permanent
building and real estate, including principal and interest, do not
exceed the fair market rental cost that the contractor would have
paid if the property was not purchased.

(c) Loans or lease-purchase agreements amortized over the
number of years designated in subdivision (b), but due in a fewer
number of years, shall not be disallowed because of the shorter
due date.

end insert

begin insert

begin insert SEC. 71. end insert   

end insert

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

begin delete 8326. end delete
begin insert 8412. end insert   

Notwithstanding any other provisions of this chapter, a
public or private agency, a school district, a community college
district or a county superintendent of schools operating child
development facilities may enter into an agreement with the
Employment Development Department begin delete which end delete begin insert that end insert will provide
an opportunity to participants in work incentive programs under
Division 2 (commencing with Section 5000) of the Unemployment
Insurance Code for training in child development facilities.
Training pursuant to such agreement shall have the objective of
preparation for a career in the field of child development.

begin insert

begin insert SEC. 72. end insert   

end insert

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

begin delete 8413. end delete
begin insert 8410. end insert   

Notwithstanding any other provision of this chapter, the
governing board of a school district or community college district,
county superintendent of schools, or other unit of local general
purpose government may enter into agreements with any city, city
and county, or other public agency, or with a private foundation,
nonprofit corporation, or proprietary agency as defined in
subdivision begin delete (ah) end delete begin insert (ai) end insert of Section 8208 for the furnishing to, or use
by, the governing board, county superintendent of schools, or other
unit of local general purpose government in carrying out the
provisions of this chapter, of property, facilities, personnel,
supplies, equipment and other necessary items and such city,
county, city and county, other public agency, or private foundation
or nonprofit corporation, is authorized to enter into such
agreements.

begin insert

begin insert SEC. 73. end insert   

end insert

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

begin delete 8329. end delete
begin insert 8413. end insert   

The governing board of any school district maintaining
begin delete a child development end delete begin insert an early learning and educational support end insert
program may include in its budget the amount necessary to initiate,
operate, and maintain a begin delete child development end delete program pursuant to
this chapter and the board of supervisors shall levy a school district
tax necessary to raise that amount. The tax shall be in addition to
any other school district tax authorized by law to be levied.

begin insert

begin insert SEC. 74. end insert   

end insert

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

begin delete 8330. end delete
begin insert 8414. end insert   

Community college districts that levied child
development permissive override taxes pursuant to Section begin delete 8329 end delete
begin insert 8413 end insert of the Education Code and former Section 8330 of the
Education Code in the 1977-78 fiscal year and received fiscal
relief pursuant to Chapter 282 of the Statutes of 1979 to
compensate for the loss of permissive override taxes shall not
receive reimbursement for child care services from the
Superintendent begin delete of Public Instruction end delete in excess of 75 percent of the
standard reimbursement rate for campus child care programs.
Campus child care programs operated by the University of
California, the California State University, and community colleges
that did not levy a permissive override tax in the 1977-78 fiscal
year shall receive reimbursement from the Superintendent begin delete of Public
Instruction end delete that equals 100 percent of the standard reimbursement
rate for campus child care and development programs.

begin insert

begin insert SEC. 75. end insert   

end insert

begin insert Section 8331 of the end insert begin insert Education Code end insert begin insert is amended and
renumbered to read: end insert

begin delete 8331. end delete
begin insert 8415. end insert   

Sections begin delete 8329 end delete begin insert 8413 end insert and begin delete 8330 end delete begin insert 8414 end insert shall not apply to
the part-day preschool programs begin delete described in subdivision (f) of
Section 8211 end delete .

begin insert

begin insert SEC. 76. end insert   

end insert

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

begin delete

 

Article 15.2.  Child Care Subsidy Plan for the City and County
of San Francisco

 

end delete

begin insert

begin insert SEC. 77. end insert   

end insert

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

begin delete 8335. end delete
begin insert 8490. end insert   

The City and County of San Francisco may, as a pilot
project, develop and implement an individualized county child
care subsidy plan. The plan shall ensure that child care subsidies
received by the city and county are used to address local needs,
conditions, and priorities of working families in the community.

begin insert

begin insert SEC. 78. end insert   

end insert

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

begin delete 8335.1. end delete
begin insert 8490.1. end insert   

begin delete Prior to end delete begin insert Before end insert implementing the local subsidy plan,
the City and County of San Francisco, in consultation with the
department, shall develop an individualized county child care
subsidy plan for the city and county that includes the following
four elements:

(a) An assessment to identify the city and county’s goal for its
subsidized child care system. The assessment shall examine
whether the current structure of subsidized child care funding
adequately supports working families in the city and county and
whether the city and county’s child care goals coincide with the
state’s requirements for funding, eligibility, priority, and
reimbursement. The assessment shall also identify barriers in the
state’s child care subsidy system that inhibit the city and county
from meeting its child care goals. In conducting the assessment,
the city and county shall consider all of the following:

(1) The general demographics of families who are in need of
child care, including employment, income, language, ethnic, and
family composition.

(2) The current supply of available subsidized child care.

(3) The level of need for various types of subsidized child care
services including, but not limited to, infant care, after-hours care,
and care for children with exceptional needs.

(4) The city and county’s self-sufficiency income level.

(5) Income eligibility levels for subsidized child care.

(6) Family fees.

(7) The cost of providing child care.

(8) The regional market rates, as established by the department,
for different types of child care.

(9) The standard reimbursement rate or state per diem for centers
operating under contracts with the department.

(10) Trends in the county’s unemployment rate and housing
affordability index.

(b) Development of a local policy to eliminate state-imposed
regulatory barriers to the city and county’s achievement of its
desired outcomes for subsidized child care.

(1) The local policy shall do all of the following:

(A) Prioritize lowest income families first.

(B) Follow the family fee schedule established pursuant to
begin delete subdivision (f) of Section 8263 end delete begin insert Section 8216 end insert for those families
that are income eligible, as defined by Section begin delete 8263.1 end delete begin insert 8211 end insert .

(C) Meet local goals that are consistent with the state’s child
care goals.

(D) Identify existing policies that would be affected by the city
and county’s child care subsidy plan.

(E) (i) Authorize any agency that provides child care and
development services in the city and county through a contract
with the department to apply to the department to amend existing
contracts in order to benefit from the local policy once it is adopted.

(ii) The department shall approve an application to amend an
existing contract if the child care subsidy plan is approved pursuant
to subdivision (b) of Section begin delete 8335.3 end delete begin insert 8490.3 end insert , or modified pursuant
to subdivision (c) of Section begin delete 8335.3 end delete begin insert 8490.3 end insert .

(iii) The contract of a department contractor who does not elect
to request an amendment to its contract remains operative and
enforceable.

(2) (A) The city and county shall, by the end of the first fiscal
year of operation under the approved child care subsidy plan,
demonstrate an increase in the aggregate child days of enrollment
in the county as compared to the enrollment in the final quarter of
the 2004-05 fiscal year.

(B) The amount of the increase shall be at least equal to the
aggregate child days of enrollment in the final quarter of the
2004-05 fiscal year for all contracts amended as provided in
subparagraph (E) of paragraph (1), under which the contractor
receives an increase in its reimbursement rate, times 2 percent.

(3) The local policy may supersede state law concerning child
care subsidy programs with regard only to the following factors:

(A) Eligibility criteria including, but not limited to, age, family
size, time limits, income level, inclusion of former and current
CalWORKs participants, and special needs considerations, except
that the local policy may not deny or reduce eligibility of a family
that qualifies for child care pursuant to Section begin delete 8353 end delete begin insert 8254.5 end insert . Under
the local policy, a family that qualifies for child care pursuant to
Section begin delete 8354 end delete begin insert 8255 end insert shall be treated for purposes of eligibility and
fees in the same manner as a family that qualifies for subsidized
child care on another basis pursuant to the local policy.

(B) Fees including, but not limited to, family fees, sliding scale
fees, and copayments for those families that are not income eligible,
as defined by Section begin delete 8263.1 end delete begin insert 8211 end insert .

(C) Reimbursement rates.

(D) Methods of maximizing the efficient use of subsidy funds,
including, but not limited to, multiyear contracting with the
department for center-based child care, and interagency agreements
that allow for flexible and temporary transfer of funds among
agencies.

(c) Recognition that all funding sources utilized by direct service
contractors that provide child care and development services in
the city and county are eligible to be included in the child care
subsidy plan of the city and county.

(d) Establishment of measurable outcomes to evaluate the
success of the plan to achieve the city and county’s child care goals
and to overcome any barriers identified in the state’s child care
subsidy system. The State Department of Social Services shall
have an opportunity to review and comment on the proposed
measurable outcomes before they are submitted to the local child
care planning council for approval pursuant to Section begin delete 8335.3 end delete
begin insert 8490.3 end insert .

begin insert

begin insert SEC. 79. end insert   

end insert

begin insert Section 8335.2 of the end insert begin insert Education Code end insert begin insert is amended
and renumbered to read: end insert

begin delete 8335.2. end delete
begin insert 8490.2. end insert   

To ensure that the annual and final reports required
pursuant to Section begin delete 8335.4 end delete begin insert 8490.4 end insert provide useful comparative
information, the Legislative Analyst and the Senate Office of
Research shall review the evaluation design, the baseline data, and
the data collection proposed in the child care subsidy plan of the
City and County of San Francisco before the plan is submitted to
the local planning council as defined in subdivision (g) of Section
8499, for approval pursuant to Section begin delete 8335.3 end delete begin insert 8490.3 end insert .

begin insert

begin insert SEC. 80. end insert   

end insert

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

begin delete 8335.3. end delete
begin insert 8490.3. end insert   

(a) The plan shall be submitted to the local planning
council as defined in subdivision (g) of Section 8499, for approval.
Upon approval of the plan by the local planning council, the Board
of Supervisors of the City and County of San Francisco shall hold
at least one public hearing on the plan. Following the hearing, if
the board of supervisors votes in favor of the plan, the plan shall
be submitted to the Child Development Division of the department
for review.

(b) Within 30 days of receiving the plan, the Child Development
Division shall review and either approve or disapprove the plan.

(c) Within 30 days of receiving any modification to the plan,
the Child Development Division shall review and either approve
or disapprove that modification to the plan.

(d) The Child Development Division may disapprove only those
portions of the plan or modifications to the plan that are not in
conformance with this article or that are in conflict with federal
law.

begin insert

begin insert SEC. 81. end insert   

end insert

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

begin delete 8335.4. end delete
begin insert 8490.4. end insert   

(a) Upon approval of the plan by the Child
Development Division of the department, the City and County of
San Francisco shall annually prepare and submit to the Legislature,
the State Department of Social Services, and the department a
report that summarizes the success of the pilot project and the city
and county’s ability to maximize the use of funds and to improve
and stabilize child care in the city and county.

(b) The City and County of San Francisco shall submit an
interim report to the Legislature, the State Department of Social
Services, and the department on or before December 31, 2010,
and shall submit a final report to those entities on or before June
30, 2014, summarizing the impact of the plan on the child care
needs of working families in the city and county.

begin insert

begin insert SEC. 82. end insert   

end insert

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

begin delete 8335.5. end delete
begin insert 8490.5. end insert   

The City and County of San Francisco may implement
an individualized child care subsidy plan until July 1, 2014, at
which date the city and county shall terminate the plan. Between
July 1, 2014, and July 1, 2016, the city and county shall phase out
the individualized county child care subsidy plan and, as of July
1, 2016, shall implement the state’s requirements for child care
subsidies. A child enrolling for the first time for subsidized child
care in the city and county after July 1, 2014, shall not be enrolled
in the pilot program established pursuant to this article and is
subject to existing state laws and regulations regarding child care
eligibility and priority.

begin insert

begin insert SEC. 83. end insert   

end insert

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

begin delete 8335.6. end delete
begin insert 8490.6. end insert   

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

begin insert

begin insert SEC. 84. end insert   

end insert

begin insert Section 8335.7 of the end insert begin insert Education Code end insert begin insert is amended
and renumbered to read: end insert

begin delete 8335.7. end delete
begin insert 8490.7. end insert   

This article shall become inoperative on July 1, 2016,
and as of January 1, 2017, is repealed, unless a later enacted statute,
that is enacted before January 1, 2017, deletes or extends the dates
on which it becomes inoperative and is repealed.

begin insert

begin insert SEC. 85. end insert   

end insert

begin insert The heading of Article 15.3 (commencing with Section
8340) of Chapter 2 of Part 6 of Division 1 of Title 1 of the end insert begin insert Education Code end insert begin insert is repealed. end insert

begin delete

 

Article 15.3.  Individualized County Child Care Subsidy Plan

 

end delete

begin insert

begin insert SEC. 86. end insert   

end insert

begin insert Section 8340 of the end insert begin insert Education Code end insert begin insert is amended and
renumbered to read: end insert

begin delete 8340. end delete
begin insert 8492. end insert   

The County of San Mateo may, as a pilot project, develop
and implement an individualized county child care subsidy plan.
The plan shall ensure that child care subsidies received by the
county are used to address local needs, conditions, and priorities
of working families in the community.

begin insert

begin insert SEC. 87. end insert   

end insert

begin insert Section 8341 of the end insert begin insert Education Code end insert begin insert is amended and
renumbered to read: end insert

begin delete 8341. end delete
begin insert 8492.1. end insert   

begin delete Prior to end delete begin insert Before end insert implementing the local subsidy plan,
the County of San Mateo, in consultation with the department,
shall develop an individualized county child care subsidy plan that
includes the following four elements:

(a) An assessment to identify the county’s goal for its subsidized
child care system. The assessment shall examine whether the
current structure of subsidized child care funding adequately
supports working families in the county and whether the county’s
child care goals coincide with the state’s requirements for funding,
eligibility, priority, and reimbursement. The assessment shall also
identify barriers in the state’s child care subsidy system that inhibit
the county from meeting its child care goals. In conducting the
assessment, the county shall consider all of the following:

(1) The general demographics of families who are in need of
child care, including employment, income, language, ethnic, and
family composition.

(2) The current supply of available subsidized child care.

(3) The level of need for various types of subsidized child care
services including, but not limited to, infant care, after-hours care,
and care for children with exceptional needs.

(4) The county’s self-sufficiency income level.

(5) Income eligibility levels for subsidized child care.

(6) Family fees.

(7) The cost of providing child care.

(8) The regional market rates, as established by the department,
for different types of child care.

(9) The standard reimbursement rate or state per diem for centers
operating under contracts with the department.

(10) Trends in the county’s unemployment rate and housing
affordability index.

(b) Development of a local policy to eliminate state-imposed
regulatory barriers to the county’s achievement of its desired
outcomes for subsidized child care.

(1) The local policy shall do all of the following:

(A) Prioritize lowest income families first.

(B) Follow the family fee schedule established pursuant to
begin delete subdivision (f) of end delete Section begin delete 8263 end delete begin insert 8216 end insert for those families that are
income eligible, as defined by Section begin delete 8263.1 end delete begin insert 8211 end insert .

(C) Meet local goals that are consistent with the state’s child
care goals.

(D) Identify existing policies that would be affected by the
county’s child care subsidy plan.

(E) (i) Authorize any agency that provides child care and
development services in San Mateo County through a contract
with the department to apply to the department to amend existing
contracts in order to benefit from the local policy once it is adopted.

(ii) The department shall approve an application to amend an
existing contract if the child care subsidy plan is approved pursuant
to subdivision (b) of Section begin delete 8342 end delete begin insert 8492.3 end insert , or modified pursuant
to subdivision (c) of Section begin delete 8342 end delete begin insert 8492.3 end insert .

(iii) The contract of a department contractor who does not elect
to request an amendment to its contract remains operative and
enforceable.

(2) (A) The County of San Mateo shall, by the end of the first
fiscal year of operation under the approved child care subsidy plan,
demonstrate an increase in the aggregate child days of enrollment
in the county as compared to the enrollment in the final quarter of
the 2002-03 fiscal year.

(B) The amount of the increase shall be at least equal to the
aggregate child days of enrollment in the final quarter of the
2002-03 fiscal year for all contracts amended as provided in
subparagraph (E) of paragraph 1, under which the contractor
receives an increase in its reimbursement rate, times 2 percent.

(3) The local policy may supersede state law concerning child
care subsidy programs with regard only to the following factors:

(A) Eligibility criteria including, but not limited to, age, family
size, time limits, income level, inclusion of former and current
CalWORKs participants, and special needs considerations, except
that the local policy may not deny or reduce eligibility of a family
that qualifies for child care pursuant to Section begin delete 8353 end delete begin insert 8254.5 end insert . Under
the local policy, a family that qualifies for child care pursuant to
Section begin delete 8354 end delete begin insert 8255 end insert shall be treated for purposes of eligibility and
fees in the same manner as a family that qualifies for subsidized
child care on another basis pursuant to the local policy.

(B) Fees including, but not limited to, family fees, sliding scale
fees, and copayments for those families that are not income eligible,
as defined by Section begin delete 8263.1 end delete begin insert 8211 end insert .

(C) Reimbursement rates.

(D) Methods of maximizing the efficient use of subsidy funds,
including, but not limited to, multiyear contracting with the
department for center-based child care, and interagency agreements
that allow for flexible and temporary transfer of funds among
agencies.

(c) Recognition that all funding sources utilized by direct service
contractors that provide child care and development services in
San Mateo County are eligible to be included in the child care
subsidy plan of the county.

(d) Establishment of measurable outcomes to evaluate the
success of the plan to achieve the county’s child care goals and to
overcome any barriers identified in the state’s child care subsidy
system. The Department of Social Services shall have an
opportunity to review and comment on the proposed measurable
outcomes before they are submitted to the local child care planning
council for approval pursuant to Section begin delete 8342 end delete begin insert 8492.3 end insert .

begin insert

begin insert SEC. 88. end insert   

end insert

begin insert Section 8341.5 of the end insert begin insert Education Code end insert begin insert is amended
and renumbered to read: end insert

begin delete 8341.5. end delete
begin insert 8492.2. end insert   

To ensure that the annual and final reports required
pursuant to Section begin delete 8343 end delete begin insert 8392.4 end insert provide useful comparative
information, the Legislative Analyst and the Senate Office of
Research shall review the evaluation design, the baseline data, and
the data collection proposed in the child care subsidy plan of the
county before the plan is submitted to the local child care planning
council for approval.

begin insert

begin insert SEC. 89. end insert   

end insert

begin insert Section 8342 of the end insert begin insert Education Code end insert begin insert is amended and
renumbered to read: end insert

begin delete 8342. end delete
begin insert 8492.3. end insert   

(a) The plan shall be submitted to the local child care
planning council for approval. Upon approval of the plan by the
local child care planning council, the county board of supervisors
shall hold at least one public hearing on the plan. Following the
hearing, if the county board of supervisors votes in favor of the
plan, the plan shall be submitted to the Child Development Division
of the department for review.

(b) Within 30 days of receiving the plan, the Child Development
Division shall review and either approve or disapprove the plan.

(c) Within 30 days of receiving any modification to the plan,
the Child Development Division shall review and either approve
or disapprove that modification to the plan.

(d) The Child Development Division may disapprove only those
portions of the plan or modifications to the plan that are not in
conformance with this article or that are in conflict with federal
law.

begin insert

begin insert SEC. 90. end insert   

end insert

begin insert Section 8343 of the end insert begin insert Education Code end insert begin insert is amended and
renumbered to read: end insert

begin delete 8343. end delete
begin insert 8392.4. end insert   

(a) Upon approval of the plan by the Child
Development Division, the County of San Mateo shall annually
prepare and submit to the Legislature, the Department of Social
Services, and the department a report that summarizes the success
of the pilot project and the county’s ability to maximize the use
of funds and to improve and stabilize child care in the county.

(b) On or before December 31, 2008, the County of San Mateo
shall submit a final report to the Legislature, the Department of
Social Services, and the department summarizing the impact of
the plan on the child care needs of working families.

begin insert

begin insert SEC. 91. end insert   

end insert

begin insert Section 8344 of the end insert begin insert Education Code end insert begin insert is amended and
renumbered to read: end insert

begin delete 8344. end delete
begin insert 8492.5. end insert   

The County of San Mateo may implement its
individualized county child care subsidy plan until January 1, 2014,
at which date the County of San Mateo shall terminate the plan.
Between January 1, 2014, and January 1, 2016, the County of San
Mateo shall phase out the individualized county child care subsidy
plan and, as of January 1, 2016, shall implement the state’s
requirements for child care subsidies. A child enrolling for the first
time for subsidized child care in San Mateo County after January
1, 2014, shall not be enrolled in the pilot program established
pursuant to this article and is subject to existing state laws and
regulations regarding child care eligibility and priority.

begin insert

begin insert SEC. 92. end insert   

end insert

begin insert Section 8345 of the end insert begin insert Education Code end insert begin insert is amended and
renumbered to read: end insert

begin delete 8345. end delete
begin insert 8492.6. end insert   

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

begin insert

begin insert SEC. 93. end insert   

end insert

begin insert Section 8346 of the end insert begin insert Education Code end insert begin insert is amended and
renumbered to read: end insert

begin delete 8346. end delete
begin insert 8492.7. end insert   

This article shall remain in effect only until January
1, 2016, and as of that date is repealed, unless a later enacted
statute, which is enacted before January 1, 2016, deletes or extends
that date.

begin insert

begin insert SEC. 94. end insert   

end insert

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

begin delete

 

Article 15.5.  Child Care for Recipients of the CalWORKs
Program

 

end delete

begin insert

begin insert SEC. 95. end insert   

end insert

begin insert Section 8350 of the end insert begin insert Education Code end insert begin insert is repealed. end insert

begin delete

8350.  

(a) It is the intent of the Legislature in enacting this
article to ensure that recipients of aid under Chapter 2 (commencing
with Section 11200) of Part 3 of Division 9 of the Welfare and
Institutions Code, or any successor program, and former recipients
who have left aid for employment, are connected as soon as
possible to local child care resources, make stable child care
arrangements, and continue to receive subsidized child care services
after they no longer receive aid as long as they require those
services and meet the eligibility requirements set forth in Sections
8263 and 8263.1.

(b) This article establishes three stages of child care services
through which a recipient of aid under Chapter 2 (commencing
with Section 11200) of Part 3 of Division 9 of the Welfare and
Institutions Code, or any successor program, will pass. Further, as
families’ child care needs are met by county welfare departments
and later by other local child care and development contractors, it
is the intent of the Legislature that families experience no break
in their child care services due to a transition between the three
stages of child care services.

end delete

begin insert

begin insert SEC. 96. end insert   

end insert

begin insert Article 13 (commencing with Section 8350) is added
to Chapter 2 of Part 6 of Division 1 of Title 1 of the end insert begin insert Education
Code end insert begin insert , to read: end insert

begin insert

 

Article begin insert 13. end insert   Allocation and Expenditures

 

begin insert 8350. end insert   

The department shall develop and coordinate resources,
provide technical assistance, monitor program implementation,
generate maximum federal reimbursement wherever possible for
the federally eligible children, and facilitate alternative funding
for those children for whom federal funds are not available.

begin insert 8351. end insert   

It is the intent of the Legislature that federal funds
received pursuant to the federal Child Care and Development
Fund be allocated according to federal regulations pursuant to
this article.

begin insert 8352. end insert   

The department shall annually monitor funding used in
early learning and educational support programs for infants and
toddlers, and hours of service provided in California state
preschool services, and shall annually report to the Department
of Finance and to the Legislature a statewide summary identifying
the estimated funding used for infants and toddlers, and the number
of preschool age children receiving part-day preschool and
wraparound services, as defined in subdivision (f) of Section 8228.
The annual report shall include a comparison to the prior year on
a county-by-county basis.

begin insert 8353. end insert   

The Superintendent shall adopt rules, regulations, and
guidelines to facilitate the funding and reimbursement procedures
required by this chapter.

begin insert 8354. end insert   

(a) The Superintendent shall support the coordination
of resources available to state and local agencies serving children,
youth, and their families.

(b) Federal Head Start Funds used to provide services to
families receiving California state preschool services shall be
deemed nonrestricted funds.

begin insert 8355. end insert   

The department shall promote full utilization of state
and federal funds and match available unused funds with identified
service needs. Notwithstanding the requirements of Part 2
(commencing with Section 10100) of Division 2 of the Public
Contract Code, the department shall arrange interagency
adjustments between different contractors with the same type of
contract when both agencies mutually agree to a temporary
transfer of funds for the balance of the fiscal year.

begin insert 8356. end insert   

(a) The Superintendent shall develop a plan and
procedures for the allocation of expansion funding balances
resulting from the prorata allocation of expansion for the partial
year operations of new agencies.

(b) The plan shall provide for the distribution of funds among
provider agencies whose enrollments include children with special
needs, and shall limit provider agencies’ use of funds to the
purpose of department-approved equipment or materials or
one-time-only services that directly benefit children with special
needs.

begin insert 8357. end insert   

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

begin insert 8358. end insert   

The Superintendent shall publish the methodology and
data used, including county-specific data if such data is used, for
the allocation of all child care funds. The Superintendent shall
make available to the public, within 90 days of an allocation, the
accounting information for the allocation. It is the intent of the
Legislature to expedite the allocation of funds to the field as quickly
as possible. Nothing in this section shall create a requirement for
a public hearing on the allocation methodology before the issuance
of a request for proposal.

begin insert 8359. end insert   

(a) The department shall disburse augmentations to the
base allocation for the expansion of early learning and educational
support programs to promote equal access to child development
services across the state.

(b) The Superintendent shall use the formula developed pursuant
to subdivision (c) and the priorities identified by local planning
councils, unless those priorities do not meet the requirements of
state or federal law, as a guide in disbursing augmentations
pursuant to subdivision (a).

(c) The Superintendent shall develop a formula for prioritizing
the disbursement of augmentations pursuant to this section. The
formula shall give priority to allocating funds to underserved
areas. The Superintendent shall develop the formula by using the
definition of “underserved area” in subdivision (at) of Section
8208 and direct impact indicators of need for services in the county
or subcounty areas. For purposes of this section, “subcounty
areas” include, but are not limited to, school districts, census
tracts, or ZIP Code areas that are deemed by the Superintendent
to be most appropriate to the type of program receiving an
augmentation. Direct impact indicators of need may include, but
are not limited to, the teenage pregnancy rate, the unemployment
rate, area household income, or the number or percentage of
families receiving public assistance, eligible for Medi-Cal, or
eligible for free or reduced-price school meals, and any unique
characteristics of the population served by the type of program
receiving an augmentation.

(d) To promote equal access to services, the Superintendent
shall include in guidelines developed for use by local planning
councils pursuant to subdivision (d) of Section 8301 guidance on
identifying underserved areas and populations within counties.
This guidance shall include reference to the direct impact
indicators of need described in subdivision (c).

begin insert 8360. end insert   

(a) Any entity operating an early learning and
educational support program funded pursuant to this chapter shall
establish in the county treasury a fund to be known as the “child
development fund” into which shall be paid all funds received by
the district or the county for, or from the operation of, services
under this chapter. The costs incurred in the maintenance and
operation of child development services shall be paid from the
fund, with accounting to reflect specific funding sources.

(b) Funds of a district derived from the receipt of district taxes
or derived from moneys apportioned to the district for the support
of schools thereof, in addition to state moneys appropriated for
the support of early learning and educational support services,
fees, and federal funds, may be expended for, or in connection
with, services.

begin insert 8361. end insert   

(a) The following provisions apply to the award of Direct
Classroom Services Programs that are appropriated by the
Legislature for that purpose in any fiscal year:

(1) (A) When expansion funding is made available, priority for
funding shall be given to programs operating in the catchment
area of an elementary school ranked in deciles 1 to 3, inclusive,
on the Academic Performance Index, based on the school’s most
recent Academic Performance Index score.

(B) Each applicant or contracting agency funded pursuant to
Section 8225 shall give first priority to three- or four-year-old
neglected or abused 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 services
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 resource and referral services so that services for the child
can be located.

(2) In an application for those expansion funds, an agency shall
furnish the Superintendent with an estimate of the number and
ages of children that it plans to serve in the following fiscal year
with those expansion funds. The agency also shall furnish
documentation that indicates the basis of those estimates.

(3) In awarding contracts for expansion, the Superintendent
shall take into account the geographic criteria established pursuant
to Section 8358, and the headquarters preferences and eligibility
criteria relating to fiscal or programmatic noncompliance
established pursuant to Section 8319.

(b) This section does not prevent eligible children who are
currently receiving services from continuing to receive those
services in future years pursuant to this chapter.

begin insert 8362. end insert   

(a) In awarding contracts for expansion to programs
operating pursuant to this subdivision, the Superintendent shall
give priority to applicant agencies that, in expending the expansion
funds, will be serving the highest percentage of four-year-old
children.

(b) This section does not preclude a local educational agency
from subcontracting with an appropriate public or private agency
to operate a California state preschool program and to apply for
funds made available for the purposes of this section. If a school
district chooses not to operate or subcontract for a California
state preschool program, the Superintendent shall work with the
county office of education and other eligible agencies to explore
possible opportunities in contracting or alternative subcontracting
to provide a California state preschool program.

begin insert 8363. end insert   

(a) The department shall contract with local contracting
agencies for alternative payment services, pursuant to Article 4
(commencing with Section 8240) so that services will be provided
throughout the state. The department shall expand existing
alternative payment programs and fund new alternative payment
programs to the extent that funds are provided by the Legislature.

(b) Funding for the new programs pursuant to this section shall
be allocated to programs that meet all of the following
requirements:

(1) Applicants shall conform to the requirements of this article.

(2) Applicants shall demonstrate that an alternative payment
program is an appropriate method of delivering services within
the county or service area at the level requested in the application
by doing either of the following:

(A) Demonstrating the availability of sufficient licensed or
exempt providers.

(B) Providing a plan for the development of sufficient licensed
providers working in cooperation with the local resource and
referral agency.

(3) Applicants shall demonstrate the administrative viability of
the alternative payment agency and its capacity to meet
performance requirements.

(4) Existing alternative payment programs receiving funds for
expansion into a new service area shall be funded at a documented
rate appropriate to that community and may contract separately
as appropriate.

end insert

begin insert

begin insert SEC. 97. end insert   

end insert

begin insert Section 8350.5 of the end insert begin insert Education Code end insert begin insert , as added by
Section 3 of Chapter 329 of the Statutes of 1998, is amended and
renumbered to read: end insert

begin delete 8350.5. end delete
begin insert 8253. end insert   

Current CalWORKs recipients are eligible for all child
care services under this article as long as they continue to receive
aid under Chapter 2 (commencing with Section 11200) of Part 3
of Division 9 of the Welfare and Institutions Code, or any successor
program. Family size and income, for purposes of calculating
family fees, shall be determined pursuant to Section begin delete 8263 end delete begin insert 8216 end insert .

begin insert

begin insert SEC. 98. end insert   

end insert

begin insert Section 8350.5 of the end insert begin insert Education Code end insert begin insert , as added by
Section 4 of Chapter 330 of the Statutes of 1998, is repealed. end insert

begin delete

8350.5.  

Current CalWORKs recipients are eligible for all child
care services under this article as long as they continue to receive
aid under Chapter 2 (commencing with Section 11200) of Part 3
of Division 9 of the Welfare and Institutions Code, or any successor
program. Family size and income, for purposes of calculating
family fees, shall be determined pursuant to Section 8263.

end delete

begin insert

begin insert SEC. 99. end insert   

end insert

begin insert Section 8351 of the end insert begin insert Education Code end insert begin insert is amended and
renumbered to read: end insert

begin delete 8351. end delete
begin insert 8253.5. end insert   

(a) The county welfare department shall manage the
first stage during which a family shall receive a child care subsidy
for any legal care chosen by the parent. The first stage begins upon
the entry of a person into the program prescribed by Chapter 2
(commencing with Section 11200) of Part 3 of Division 9 of the
Welfare and Institutions Code.

(b) A county shall move recipients out of this first response
stage as quickly as possible after the county determines that the
need for child care is stable. A recipient may be served in this stage
for a maximum of six months. The six-month time limit may be
extended if the county determines that the recipient’s situation is
too unstable to be shifted to the second stage or if no funds are
available to provide child care services in the second stage.

(c) Former CalWORKs recipients who cannot be transitioned
from the first stage of child care because no funded slot is available
are eligible to receive the first stage and any subsequent stage two
child care services for up to a total of 24 months after they leave
cash aid, or until they are otherwise ineligible within that 24-month
period. Family size and income for purposes of determining
eligibility and family fee shall be determined pursuant to Sections
begin delete 8263 and 8263.1 end delete begin insert 8211 and 8216 end insert .

(d) The county welfare department shall also begin the first
stage of child care when an individual who applies for aid under
the program described in Chapter 2 (commencing with Section
11200) of Part 3 of Division 9 of the Welfare and Institutions Code
is participating as a volunteer pursuant to Article 3.2 (commencing
with Section 11320) of Chapter 2 of Part 3 of Division 9 of the
Welfare and Institutions Code.

(e) A county may contract with public or private child care
providers to provide any or all of the services during the first stage.
If the county welfare department elects to contract with any child
care provider that is also under contract with the begin delete State Department
of Education end delete begin insert department end insert , these contracts shall be consistent with
state law.

begin insert

begin insert SEC. 100. end insert   

end insert

begin insert Section 8352 of the end insert begin insert Education Code end insert begin insert is amended and
renumbered to read: end insert

begin delete 8352. end delete
begin insert 8254. end insert   

(a) As soon as appropriate, a county welfare department
shall refer families needing begin delete child care end delete services to the local begin delete child
care end delete resource and referral program funded pursuant to begin delete Article 2
(commencing with Section 8210) end delete begin insert Sections 8285, 8286, 8287, 8290,
8291, and 8294 end insert . Resource and referral program staff shall colocate
with a county welfare department’s case management offices for
aid under Chapter 2 (commencing with Section 11200) of Part 3
of Division 9 of the Welfare and Institutions Code, or any successor
program, or arrange other means of swift communication with
parents and case managers of this aid. The local child care resource
and referral program shall assist families to establish stable child
care arrangements as soon as possible. These child care
arrangements may include licensed and license-exempt care.

begin insert

(b) The resource and referral agency in the county shall provide
information regarding high-quality early learning and educational
support options, pursuant to Section 8290, to alternative payment
programs in the county to offer support services pursuant to Section
8249, and, where available, provide information on quality rating
and improvement systems.

end insert begin insert

(c) The department shall make informational resources available
to both resource and referral and alternative payment programs
pursuant to Section 8290.

end insert begin delete

(b)

end delete

begin insert (d) end insert A program operating pursuant to this article shall, within two
business days of being notified of a revocation or a temporary
suspension order for a licensed child day care facility, do both of
the following:

(1) Terminate payment to the facility.

(2) Notify each parent and the facility in writing that payment
has been terminated and the reason for the termination.

begin delete

(c)

end delete

begin insert (e) end insert  A program operating pursuant to this article shall, upon being
notified that a licensed child care facility has been placed on
probation, provide written notice to each parent utilizing the facility
that the facility has been placed on probation and that the parent
has the option of selecting a different child day care provider or
remaining with the facility without risk of subsidy payments to
the provider being terminated. The Legislature urges each agency
operating pursuant to this section to provide the written notice
required by this subdivision in the primary language of the parent,
to the extent feasible.

begin insert

begin insert SEC. 101. end insert   

end insert

begin insert Section 8353 of the end insert begin insert Education Code end insert begin insert is amended and
renumbered to read: end insert

begin delete 8353. end delete
begin insert 8254.5. end insert   

(a) The second stage of child care begins when the
county determines that the recipient’s work or approved work
activity is stable or when a recipient is transitioning off of aid and
child care is available through a local stage two program. Second
stage child care may be provided to a family who elects to receive
a lump-sum diversion payment or diversion services under Section
11266.5 of the Welfare and Institutions Code when a funded space
is not immediately available for the family in third stage. The local
stage two agency shall assist in moving families to stage three as
quickly as feasible. Former CalWORKs recipients are eligible to
receive child care services in stage one and stage two for up to a
total of no more than 24 months after they leave cash aid, or until
they are otherwise ineligible within that 24-month period. Family
size and income for purposes of determining eligibility and
calculating the family fee shall be determined pursuant to Sections
begin delete 8263 and 8263.1. end delete begin insert 8211 and 8216. end insert A family leaving cash aid under
the CalWORKS program shall receive up to two years of child
care, if otherwise eligible, as needed to continue the family’s
employment. The provision of the two-year time limit is not
intended to limit eligibility for child care under Section begin delete 8354 end delete begin insert 8255 end insert .

(b) The second stage shall be administered by agencies
contracting with the begin delete State Department of Education end delete begin insert department end insert .
These contractors may be either agencies that have an alternative
payment contract pursuant to Section begin delete 8220.1 end delete begin insert 8362 end insert or county
welfare departments that choose to administer this stage in order
to continue to provide child care services for recipients or former
recipients of aid. If the county chooses to contract with the
department to provide alternative payment services, this contract
shall not displace, or result in the reduction of an existing contract
of, a current alternative payment program.

begin insert

begin insert SEC. 102. end insert   

end insert

begin insert Section 8354 of the end insert begin insert Education Code end insert begin insert is amended and
renumbered to read: end insert

begin delete 8354. end delete
begin insert 8255. end insert   

(a) The third stage of child care begins when a funded
space is available. CalWORKs recipients are eligible for the third
stage of child care. Persons who received a lump-sum diversion
payment or diversion services and former CalWORKs participants
are eligible if they have an income that does not exceed 70 percent
of the state median income pursuant to Section begin delete 8263.1 end delete begin insert 8211 end insert . The
third stage shall be administered by programs contracting with the
begin delete State Department of Education end delete begin insert department end insert . Parents’ eligibility for
begin delete child care and development end delete services will be governed by Section
begin delete 8263 end delete begin insert 8210 end insert and regulations adopted by the begin delete State Department of
Education end delete begin insert department end insert .

(b) In order to move welfare recipients and former recipients
from their relationship with county welfare departments to
relationships with institutions providing services to working
families, it is the intent of the Legislature that families that are
former recipients of aid, or are transitioning off aid, receive their
child care assistance in the same fashion as other low-income
working families. Therefore, it is the intent of the Legislature that
families no longer rely on county welfare departments to obtain
child care subsidies beyond the time they are receiving other
services from the welfare department.

(c) A county welfare department shall not administer the third
stage of child care for CalWORKs recipients except to the extent
to which it delivered those services to families receiving, or within
one year of having received, Aid to Families with Dependent
Children begin delete prior to end delete begin insert before end insert the enactment of this section.

(d) This article does not preclude county welfare departments
from operating an alternative payment program under contract
with the begin delete State Department of Education end delete begin insert department end insert to serve
families referred by child protective services.

begin insert

begin insert SEC. 103. end insert   

end insert

begin insert Section 8355 of the end insert begin insert Education Code end insert begin insert is amended and
renumbered to read: end insert

begin delete 8255. end delete
begin insert 8255.5. end insert   

Child care during the third stage may be funded with
moneys dedicated to current and former recipients of aid under
Chapter 2 (commencing with Section 11200) of Part 3 of Division
9 of the Welfare and Institutions Code, or any successor program,
including the federal funds appropriated to alternative payment
program contractors in the 1996-97 fiscal year using the Budget
Act’s Section 28 process as described in subdivision (b). Nothing
shall prevent begin delete child care end delete services provided under stage three from
being funded with moneys from other federal or state sources.
Nothing in this article shall preclude current and former recipients
of aid under Chapter 2 (commencing with Section 11200) of Part
3 of Division 9 of the Welfare and Institutions Code, or any
successor program, from receiving child care services pursuant to
other provisions of this chapter.

begin insert

begin insert SEC. 104. end insert   

end insert

begin insert Section 8356 of the end insert begin insert Education Code end insert begin insert is amended and
renumbered to read: end insert

begin delete 8356. end delete
begin insert 8256. end insert   

It is the intent of the Legislature that the begin delete State Department
of Education end delete begin insert department end insert work with Head Start and state preschool
programs to generate extended-day and evening care for recipients
of aid under Chapter 2 (commencing with Section 11200) of Part
3 of Division 9 of the Welfare and Institutions Code, or any
successor program, through recruiting and training parents to be
licensed and license-exempt care providers and shall facilitate
connections between Head Start and state preschool contractors
and child care certificate administrators, including counties and
other alternative payment programs, so that funds available for
Sections begin delete 8351, 8353, and 8354 end delete begin insert 8253.5, 8254.5, and 8255 end insert cover
the cost of this care.

begin insert

begin insert SEC. 105. end insert   

end insert

begin insert Section 8356.1 of the end insert begin insert Education Code end insert begin insert is amended
and renumbered to read: end insert

begin delete 8356.1. end delete
begin insert 8256.5 end insert   

It is the intent of the Legislature that each county receive
funding for child care services provided in stage two that is at least
equivalent to the amount of funding received in the 1996-97 fiscal
year for income disregard pursuant to Section 11451.6 of the
Welfare and Institutions Code and supplemental child care pursuant
to Section 11451.7 of the Welfare and Institutions Code.

begin insert

begin insert SEC. 106. end insert   

end insert

begin insert Section 8358.5 of the end insert begin insert Education Code end insert begin insert is amended
and renumbered to read: end insert

begin delete 8358.5. end delete
begin insert 8257. end insert   

Notwithstanding any other confidentiality requirement,
the government or private agency administering subsidized begin delete child
care end delete services shall share information necessary for the
administration of the begin delete child care end delete programs pursuant to this article
and the CalWORKs program pursuant to Chapter 2 (commencing
with Section 11200) of Part 3 of Division 9 of the Welfare and
Institutions Code, for the time period for which the person receives
begin delete child care end delete begin insert services end insert .

begin insert

begin insert SEC. 107. end insert   

end insert

begin insert Section 8359 of the end insert begin insert Education Code end insert begin insert is amended and
renumbered to read: end insert

begin delete 8359. end delete
begin insert 8257.5. end insert   

(a) County welfare departments and alternative
payment programs shall provide to the State Department of
Education or the State Department of Social Services, whichever
is appropriate, and the local planning council, on a monthly basis,
data about child care usage and demand in each of the three stages.
The State Department of Education and the State Department of
Social Services shall forward this data quarterly to the Department
of Finance and the Joint Legislative Budget Committee for fiscal
planning.

(b) By January 10 of each year, the Department of Finance shall
present to the respective legislative budget committees an estimate
of the cost of funding the expected demand for child care as
described in subdivision (a) of Section begin delete 8351 end delete begin insert 8253.5 end insert and Sections
begin delete 8353 end delete begin insert 8254.5 end insert and begin delete 8354 end delete begin insert 8255 end insert .

begin insert

begin insert SEC. 108. end insert   

end insert

begin insert Section 8359.1 of the end insert begin insert Education Code end insert begin insert is amended
and renumbered to read: end insert

begin delete 8359.1. end delete
begin insert 8258. end insert   

(a) It is the intent of the Legislature in enacting this
article to provide sufficient funding through an appropriation in
the annual Budget Act to fund the estimated cost of providing begin delete child end delete
care for all individuals who are anticipated to need child care to
participate in the welfare-to-work programs and to transition to
work.

begin delete

(b) It is the intent of the Legislature that child care and
development contracts in existence on the effective date of this
section be allowed to continue until the end of the 1997-98 fiscal
year.

end delete begin delete

(c)

end delete

begin insert (b) end insert  Funding for purposes of implementing this article shall be
appropriated in the annual Budget Act.

begin insert

begin insert SEC. 109. end insert   

end insert

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

begin delete 8362. end delete
begin insert 8305. end insert   

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

begin insert

begin insert SEC. 110. end insert   

end insert

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

begin delete 8363. end delete
begin insert 8306. end insert   

The Commission on Teacher Credentialing shall by rule
or regulation establish the requirements for the following:

(a) The issuance and the renewal of permits authorizing service
in the care, development, and instruction of children in child care
and development programs, as well as the issuance of emergency
permits for this purpose.

(b) The issuance and renewal of permits authorizing supervision
of a child care and development program, as well as the issuance
of emergency permits for this purpose.

(c) The periods of duration of the permits set forth in this
section.

begin insert

begin insert SEC. 111. end insert   

end insert

begin insert Section 8363.5 of the end insert begin insert Education Code end insert begin insert is amended
and renumbered to read: end insert

begin delete 8363.5. end delete
begin insert 8307. end insert   

(a) A special child development permit shall be issued
to any person employed as a supervisor, head teacher, or teacher
by an agency conducting a child care and development program
under contract with a county who did not meet the requirements
for an emergency instructional permit authorizing service in
children’s centers or a supervisor’s permit with postponement of
requirements authorizing service in a children’s center in effect
on October 15, 1974. A special child development permit issued
pursuant to this section shall be valid for 36 months after its date
of issuance. Within the 36-month period following the date of
issuance of the permit, the following shall apply:

(1) A person employed as a head teacher or teacher who has
completed 30 semester hours of coursework taken in an approved
institution, including 12 semester hours of coursework in subject
fields related to early childhood education, shall be issued an
emergency instructional permit authorizing service in a children’s
center and be subject to the term and renewal regulations in effect
on October 15, 1974.

(2) A person employed as a supervisor who has obtained a
bachelor’s degree from an approved institution and completed at
least 12 semester hours of coursework in subject fields related to
early childhood education shall be issued a supervision permit
with postponement of requirements authorizing service in
children’s centers and be subject to the term and renewal
regulations in effect on October 15, 1974.

(b) It is the intention of the Legislature that this section be
liberally interpreted to ensure that those experienced and qualified
persons employed in county contract day care centers prior to July
1, 1974, maintain their positions and be given ample opportunity
to upgrade their skills to meet revised educational standards.

begin insert

begin insert SEC. 112. end insert   

end insert

begin insert The heading of Article 14 (commencing with Section
8365) is added to Chapter 2 of Part 6 of Division 1 of Title 1 of
the end insert begin insert Education Code end insert begin insert , to read: end insert

begin insert

 

Article begin insert 14. end insert   Reimbursement: General

 

end insert

begin insert

begin insert SEC. 113. end insert   

end insert

begin insert Section 8368 of the end insert begin insert Education Code end insert begin insert is amended and
renumbered to read: end insert

begin delete 8368. end delete
begin insert 8417. end insert   

Any person who is employed in a begin delete child development end delete
program on October 1, 1965, and who was brought into
membership in a retirement system on October 1, 1963,
notwithstanding his begin insert or her end insert prior election pursuant to Section 8367
or the predecessor of begin delete such end delete Section 8367 as it read prior to October
1, 1963, not to be a member of such system, shall have the same
rights under such system with respect to his begin insert or her end insert service in begin delete child
development end delete programs as he begin insert or she end insert would have had under Section
8367 or the predecessor of begin delete such end delete begin insert that end insert section had he elected
thereunder to be a member of such system.

begin insert

begin insert SEC. 114. end insert   

end insert

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

begin delete 8369. end delete
begin insert 8418. end insert   

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

begin insert

begin insert SEC. 115. end insert   

end insert

begin insert Article 14.5 (commencing with Section 8370) is
added to Chapter 2 of Part 6 of Division 1 of Title 1 of the end insert begin insert Education Code end insert begin insert , to read: end insert

begin insert

 

Article begin insert 14.5. end insert   Reimbursement: Direct Classroom Services

 

begin insert 8370. end insert   

The reimbursement rate pursuant to this article shall
apply to applicants and contract agencies operating programs
pursuant to Article 3 (commencing with Section 8220).

end insert

begin insert

begin insert SEC. 116. end insert   

end insert

begin insert Article 14.7 (commencing with Section 8377) is
added to Chapter 2 of Part 6 of Division 1 of Title 1 of the end insert begin insert Education Code end insert begin insert , to read: end insert

begin insert

 

Article begin insert 14.7. end insert   Reimbursement: Alternative Payment Services

 

begin insert 8377. end insert   

The reimbursement rate established pursuant to this
article shall apply to applicants and contract agencies operating
pursuant to Article 4 (commencing with Section 8240).

begin insert 8378. end insert   

Alternative payment services operating pursuant to
Article 4 (commencing with Section 8240) shall be subject to the
rates established by the Regional Market Rate Survey of California
Child Care Providers for provider payments. The department shall
contract to conduct and complete a Regional Market Rate Survey
no more frequently than once every two years, consistent with
federal regulations, with a goal of completion by March 1.

end insert

begin insert

begin insert SEC. 117. end insert   

end insert

begin insert Article 15 (commencing with Section 8380) is added
to Chapter 2 of Part 6 of Division 1 of Title 1 of the end insert begin insert Education
Code end insert begin insert , to read: end insert

begin insert

 

Article begin insert 15. end insert   Audits

 

begin insert 8380. end insert   

As used in this article:

(a) “Financial and compliance audit” means a systematic
review or appraisal to determine each of the following:

(1) Whether the financial statements of an audited organization
fairly present the financial position and the results of financial
operations in accordance with generally accepted accounting
principles.

(2) Whether the organization has complied with laws and
regulations that may have a material effect upon the financial
statements.

(b) “Public accountant” means a certified public accountant
or a state-licensed public accountant.

(c) “Independent auditor” means a public accountant who has
no direct or indirect relationship with the functions or activities
being audited or with the business conducted by any of the officials
or contractors being audited.

(d) “Generally accepted auditing standards” means the auditing
standards set forth in the financial and compliance element of the
“Government Auditing Standards” issued by the Comptroller
General of the United States and incorporating the audit standards
of the American Institute of Certified Public Accountants.

(e) “Direct service contract” means a contract with any public
or private entity for early learning and educational support
programs, resource and referral programs, and programs
contracting to provide support services as defined in Section 8208.

(f) “Nonprofit organization” means an organization described
in Section 501(c)(3) of the Internal Revenue Code of 1954 that is
exempt from taxation under Section 501(a) of that code, or any
nonprofit, scientific, or educational organization qualified under
Section 23701d of the Revenue and Taxation Code.

begin insert 8381. end insert   

(a) Annually, there shall be a single independent
financial and compliance audit of organizations that contract with
the state under a direct service contract. The audit shall include
an evaluation of the accounting and control systems of the direct
service contractor and of the activities by the contractor to comply
with the financial requirements of direct service contracts received
by the contractor from the state agency. The financial and
compliance requirements to be reviewed during the audit shall be
those developed and published by the department in consultation
with the Department of Finance. Audits carried out pursuant to
this section shall be audits of the contractor rather than audits of
individual contracts or programs. In the case of any contractor
that receives less than twenty-five thousand dollars ($25,000) per
year from any state agency, the audit required by this section shall
be conducted biennially, unless there is evidence of fraud or other
violation of state law in connection with the direct service contract.
The cost of the audit may be included in direct service contracts.

(b) The organization receiving funds from the state shall be
responsible for obtaining the required financial and compliance
audits of the organization and any subcontractors, except for direct
service subcontracts and other subcontracts exempt from
department review, as agreed to by the Departments of Finance
and General Services. The audit shall be performed by an
independent auditor in accordance with generally accepted
auditing standards. The audit shall be completed by the 15th day
of the fifth month following the end of the contractor’s fiscal year.
A copy of the audit shall be filed with the department upon its
completion. In the event an audit is not filed, the department shall
notify the organization of the contract violation. The audit report
filed shall be an integral part of the direct service contract file.

(c) (1) Nothing in this article limits the authority of the
department to make audits of direct service contracts. However,
if independent audits arranged for by direct service contractors
meet generally accepted auditing standards, the department shall
rely on those audits, and any additional audit work shall build
upon the work already done.

(2) Nothing in this article precludes the state from conducting,
or contracting for the conduct of, contract performance audits that
are not financial and compliance audits.

(3) Nothing in this article limits the state’s responsibility or
authority to enforce state law or regulations, procedures, or
reporting requirements arising pursuant thereto.

(4) Nothing in this article limits the responsibility of the
department to provide an independent appeal procedure according
to the provisions of the Administrative Procedure Act (Chapter 5
(commencing with Section 11500) of Part 1 of Division 3 of Title
2 of the Government Code).

begin insert 8382. end insert   

An audit for an agency shall include, but not be limited
to, a sampling of the evidence of fees charged to, and paid by,
families of nonsubsidized children, the daily enrollment of
subsidized children, the number of days of service provided to
subsidized children, the assessment and collection of parent fees,
and the availability of support services to subsidized children and
their families as needed pursuant to the terms of the contract.

begin insert 8383. end insert   

An audit for an agency licensed under the provisions of
Chapter 3 (commencing with Section 1500) of Division 2 of the
Health and Safety Code shall include a sampling of the evidence
of fees paid by families of nonsubsidized children, the average
daily enrollment of subsidized and nonsubsidized children, the
average number of days of service provided to subsidized children,
and the services provided to subsidized children pursuant to the
terms of the contract.

end insert

begin insert

begin insert SEC. 118. end insert   

end insert

begin insert The heading of Article 16.5 (commencing with
Section 8385) of Chapter 2 of Part 6 of Division 1 of Title 1 of the end insert begin insert Education Code end insert begin insert is amended and renumbered to read: end insert

 

Article begin delete 16.5. end delete begin insert 16. end insert   Fraud begin delete And Overpayments end delete

 

begin insert

begin insert SEC. 119. end insert   

end insert

begin insert Section 8385 of the end insert begin insert Education Code end insert begin insert is amended to
read: end insert

8385.  

(a) (1) The department, in consultation with the State
Department of Social Services, county fraud investigators, and
other fraud investigation experts, shall perform an error rate study
to estimate the percentage of errors, including, but not limited to,
overpayments and fraud, in determinations of eligibility, the need
for child care pursuant to begin delete paragraph (2) of subdivision (a) of end delete
Section begin delete 8263 end delete begin insert 8210 end insert , family fees, and reimbursement payments to
child care providers, including, but not limited to, authorized hours
of care and the use of adjustment factors, in programs operated
pursuant to Article begin delete 3 end delete begin insert 4 end insert (commencing with Section begin delete 8220) end delete begin insert 8340) end insert
and Article begin delete 15.5 end delete begin insert 4.5 end insert (commencing with Section begin delete 8350) end delete begin insert 8252) end insert . The
study shall include, but not be limited to, an analysis of a
statistically valid, random, sample of family files and
reimbursement payments that have been processed over a specified
time. Each payment from the sample shall be audited to determine
whether it was correctly paid or paid in error. Those payments
identified as being paid in error shall be classified based on the
type of the error that occurred, including, but not limited to,
administrative errors, overpayment caused by providers,
overpayments caused by parents, provider fraud, and beneficiary
fraud.

(2) In conducting the compliance reviews required by regulations
of the Superintendent pursuant to Section begin delete 8261 end delete begin insert 8319 end insert for programs
operated pursuant to begin delete Article 8 (commencing with Section 8240) end delete
begin insert Section 8204 end insert , the department shall survey a statistically valid
sample of files for the program and identify and report the errors,
by category, resulting from that survey.

(3) The department shall report in writing to the Governor, the
Chair of the Joint Legislative Budget Committee, the chairs of the
fiscal committees for both houses of the Legislature, and the
Department of Finance, information regarding the error rate study
by April 1, 2005. The report shall include, but not be limited to,
all of the following:

(A) The results of the error rate study.

(B) Fraud and overpayment reduction targets that have been
established based on the data from the error rate study.

(C) The timeframe for achieving the targets.

(D) Recommendations developed pursuant to subdivision (b).

(b) The department shall develop recommendations for the
prevention and elimination of child care fraud and programmatic
errors and the identification and collection of child care
overpayments. The recommendations shall include, but not be
limited to:

(1) Precise definitions of what constitutes child care fraud and
overpayments.

(2) A consistent statewide system to identify fraud and
overpayments.

(3) A consistent statewide system of standards for fraud
prevention, intervention, and overpayment collection that is applied
to all child care program provider categories.

(4) Statewide fraud and overpayment measures that will be
reported annually by the department.

(5) Standards for independent financial compliance audits,
including provisions to ensure that small programs are not unduly
burdened.

(6) Consistent statewide mechanisms for due process for parents.

(7) Consistent statewide mechanisms for dispute resolution for
child care programs and providers.

(8) Assessment of the cost-effectiveness of prevention and
intervention activities.

(9) Equitable treatment of all consumers of subsidized child
care.

(10) Consideration of the need to minimize new barriers to
family access to child care.

(11) A survey of best practices from both California agencies
and providers and from other states.

(c) In developing its recommendations, the department shall
place priority on prevention of fraud and overpayments, and shall
consider existing best practices for doing so. The department shall
make any identified best practices available on its Web site by
March 1, 2005.

(d) The department shall consult with representatives of the
State Department of Social Services, the Legislative Analyst’s
Office, the Department of Finance, staff from the appropriate policy
and fiscal committees of each house of the Legislature, and other
interested parties including, but not limited to, child care consumers
and providers, representatives from county welfare departments,
district attorneys, county special investigative units, and legal
advocacy organizations representing consumers in developing
these recommendations.

(e) The department shall report its recommendations directly
to the respective policy and fiscal committees of the Legislature
by April 1, 2005.

(f) On or after July 1, 2005, all child care contracts entered into
by the begin delete State Department of Education end delete begin insert department end insert for means-tested
child care programs, including, but not limited to, the programs
described in Article begin delete 3 end delete begin insert 4 end insert (commencing with Section begin delete 8220) end delete begin insert 8240) end insert ,
begin delete Article 8 (commencing with Section 8240) end delete begin insert Section 8204 end insert , and
Article begin delete 15.5 end delete begin insert 4.5 end insert (commencing with Section begin delete 8350) end delete begin insert 8252) end insert , shall
require implementation of best practices identified pursuant to
subdivision (c).

begin insert

begin insert SEC. 120. end insert   

end insert

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

begin delete

 

Article 18.  Administrative Review

 

end delete

begin insert

begin insert SEC. 121. end insert   

end insert

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

begin delete 8402. end delete
begin insert 8338. end insert   

The begin delete State Department of Education end delete begin insert department end insert shall
provide an independent appeal procedure to each contracting
agency providing child care and development services pursuant
to Section begin delete 8262 end delete begin insert 8326 end insert . begin delete Prior to end delete begin insert Before end insert filing an appeal petition, the
contracting agency shall have submitted all previously required
standard monthly or quarterly reporting forms to the begin delete State
Department of Education end delete begin insert department end insert . The appeal procedure shall
be conducted by the Office of Administrative Hearings and shall
be provided upon petition of the contracting agency in any of the
following circumstances:

(a) Termination or suspension of a contracting agency’s contract.

(b) Denial of more than 4 percent or twenty-five thousand dollars
($25,000), whichever is less, of a local contracting agency’s
contracted payment for services schedule.

(c) Demand for remittance of an overpayment of more than 4
percent or twenty-five thousand dollars ($25,000), whichever is
less, of a local contracting agency’s annual contract.

begin insert

begin insert SEC. 122. end insert   

end insert

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

begin delete 8403. end delete
begin insert 8339. end insert   

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

begin insert

begin insert SEC. 123. end insert   

end insert

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

begin delete 8404. end delete
begin insert 8340. end insert   

The Office of Administrative Hearings shall, by June
30, 1982, adopt regulations governing the hearings, which shall
include all of the following:

(a) Deadlines for filing petitions, commencing hearings and
rendering decisions.

(b) Notice to affected parties.

(c) The manner for maintaining appropriate provision for
electronic recording and transcription, if necessary.

(d) Hearings shall be conducted at the offices of the Office of
Administrative Hearings in Sacramento or Los Angeles. However,
hearings in Los Angeles shall be available only to local contracting
agencies with the begin delete State Department of Education end delete begin insert department end insert whose
annual contracts total less than two hundred thousand dollars
($200,000).

(e) Any other issues deemed appropriate by the Office of
Administrative Hearings.

begin insert

begin insert SEC. 124. end insert   

end insert

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

begin delete 8405. end delete
begin insert 8341. end insert   

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

begin insert

begin insert SEC. 125. end insert   

end insert

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

begin delete 8406. end delete
begin insert 8342. end insert   

All actions by the begin delete State Department of Education end delete
begin insert department end insert , as defined in subdivisions (a) to (c), inclusive, of
Section begin delete 8402 end delete begin insert 8338 end insert shall be preceded by a written notice of action
to the local contracting agency begin delete which end delete begin insert that end insert shall include the
following:

(a) A statement of the specific reasons for the action in the
Statement of Issues.

(b) A description of the local contracting agency’s rights and
responsibilities concerning the appeal procedure described herein.

begin insert

begin insert SEC. 126. end insert   

end insert

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

begin delete 8406.6. end delete
begin insert 8343. end insert   

The Superintendent begin delete of Public Instruction end delete shall establish
a contract classification system for purposes of identifying,
monitoring, and providing technical assistance to contractors as
follows:

(a) Clear contract. This designation shall be given to contracted
agencies that are in full compliance with all applicable statutory
provisions, funding terms and conditions, and applicable program
quality guidelines.

(b) Provisional contract. This designation applies to existing
contracted agencies, or agencies that are awarded a new contract
for services. The time frame of a provisional contract is at the
discretion of the begin delete State Department of Education end delete begin insert department end insert and
is given to ensure demonstrated fiscal and programmatic
compliance before granting clear contract status. The contract
status shall be reviewed annually.

(c) Conditional contract. This designation applies to high-risk
contracted agencies that evidence fiscal and or programmatic
noncompliance. These agencies shall not be eligible to apply for
additional State Child Development program funds, and are subject
to any restrictions deemed reasonable to secure compliance. The
conditional contract shall include a bill of particulars detailing the
items of noncompliance, the standards that must be met to avoid
termination of contract and to qualify the agency for clear contract
status, and technical assistance plan. Failure to demonstrate
substantive progress toward fiscal or program compliance within
six months of that designation shall constitute a breach of contract
and be subject to termination for any applicable cause specified
in Section begin delete 8406.7 end delete begin insert 8344 end insert or in accordance with Section begin delete 8402 end delete begin insert 8338 end insert .

(d) Agencies with conditional contracts shall receive technical
assistance from the Child Development Division of the begin delete State
Department of Education end delete begin insert department end insert .

begin insert

begin insert SEC. 127. end insert   

end insert

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

begin delete 8406.7. end delete
begin insert 8344. end insert   

(a) Any agency that evidences chronic fiscal or program
violations of a felony nature may have its contract suspended or
terminated immediately, provided there is documented evidence
thereof, and upon review and recommendation of the general
counsel of the begin delete State Department of Education end delete begin insert department end insert . A fiscal
or programmatic violation constituting a breach of contract includes
one or more of the following:

(1) Fraud, or conspiracy to defraud.

(2) Misuse of state funds in violation of the State of California
Accounting Manual.

(3) Embezzlement.

(4) Threats of bodily or other harm to state officials.

(5) Bribery or attempted bribery of a state official.

(6) Unsafe or unhealthy physical environment or facility.

(7) Substantiated abuse or molestation of children.

(8) Failure to report suspected child abuse or molestation.

(9) Theft of supplies, equipment or food.

(b) An agency contract terminated for cause retains appeal rights
in accordance with Section begin delete 8402 end delete begin insert 8338 end insert .

(c) The begin delete State Department of Education end delete begin insert department end insert shall advise
child care and development contractors of the provision of this
section within 30 working days of its enactment.

begin insert

begin insert SEC. 128. end insert   

end insert

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

begin delete 8406.9. end delete
begin insert 8345. end insert   

(a) An agency that places a person in a position of fiscal
responsibility or control who has been convicted of any crime
specified in Chapter 2 (commencing with Section 458) of, Chapter
4 (commencing with Section 470) of, Chapter 5 (commencing with
Section 484) of, Chapter 6 (commencing with Section 503) of, or
Chapter 7 (commencing with Section 518) of, Title 13 of Part 1
of the Penal Code may have its contract suspended or terminated
immediately if there is documented evidence of the conviction,
and upon review and recommendation of the general counsel of
the begin delete State Department of Education end delete begin insert department end insert .

(b) For purposes of this section, “position of fiscal responsibility
or control” includes any authority to direct or control expenditure
of, or any access to, state or federal child care and development
funds received pursuant to this chapter whether that authority or
access is conferred based on the person’s status as an employee,
director, manager, board member, or volunteer, or based on any
other status.

(c) An agency whose contract is terminated pursuant to this
section may appeal that action in accordance with Section begin delete 8402 end delete
begin insert 8338 end insert .

(d) Termination pursuant to this section shall not occur without
notice as described in Section begin delete 8406 end delete begin insert 8342 end insert at least 90 days begin delete prior to end delete
begin insert before end insert termination.

(e) If the agency provides evidence to the begin delete State Department of
Education end delete begin insert department end insert that the convicted person has been removed
from the position of fiscal responsibility or control and provides
assurance that the person will not be returned to a position of fiscal
responsibility or control, the begin delete State Department of Education end delete
begin insert department end insert shall withdraw the termination action.

begin insert

begin insert SEC. 129. end insert   

end insert

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

begin delete 8407. end delete
begin insert 8346. end insert   

Except for causes listed in Section begin delete 8406.7 end delete begin insert 8344 end insert ,
termination of existing funding shall not occur without good cause
and without notice as described in Section begin delete 8406 end delete begin insert 8342 end insert at least 90
days begin delete prior to end delete begin insert before end insert termination.

begin insert

begin insert SEC. 130. end insert   

end insert

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

begin delete 8408. end delete
begin insert 8347. end insert   

Actions as defined in subdivisions (a) to (c), inclusive,
of Section begin delete 8402 end delete begin insert 8338 end insert shall remain in effect during the appeal
process. However, local contracting agencies may continue to
operate under the contract during an appeal of termination, unless
the action is based on imminent danger to the health or welfare of
children. If the local agency contract is being terminated for this
reason, the reason shall be specified by the department in its notice
of termination.

begin insert

begin insert SEC. 131. end insert   

end insert

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

begin delete 8409. end delete
begin insert 8348. end insert   

All contracts entered into by the begin delete State Department of
Education end delete begin insert department end insert pursuant to Section begin delete 8262 end delete begin insert 8326 end insert shall contain
a complete description of the appeal procedures provided in this
article.

begin insert

begin insert SEC. 132. end insert   

end insert

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

begin delete

 

Article 20.  Direct Service Contract Procedure

 

end delete

begin insert

begin insert SEC. 133. end insert   

end insert

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

begin delete 8441. end delete
begin insert 8333. end insert   

The begin delete State Department of Education end delete begin insert department end insert shall
develop and maintain a central distribution list for application
announcements.

begin insert

begin insert SEC. 134. end insert   

end insert

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

begin delete 8442. end delete
begin insert 8334. end insert   

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

begin insert

begin insert SEC. 135. end insert   

end insert

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

begin delete 8444. end delete
begin insert 8335. end insert   

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

begin insert

begin insert SEC. 136. end insert   

end insert

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

begin delete 8445. end delete
begin insert 8337. end insert   

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

begin insert

begin insert SEC. 137. end insert   

end insert

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

begin delete 8447. end delete
begin insert 8332. end insert   

(a) The Legislature hereby finds and declares that greater
efficiencies may be achieved in the execution of state subsidized
begin delete child care and development program end delete begin insert early learning and
educational support end insert contracts with public and private agencies by
the timely approval of contract provisions by the Department of
Finance, the Department of General Services, and the State
Department of Education and by authorizing the State Department
of Education to establish a multiyear application, contract
expenditure, and service review as may be necessary to provide
timely service while preserving audit and oversight functions to
protect the public welfare.

(b)  begin delete (1) end delete begin delete   end delete The Department of Finance and the Department of
General Services begin delete shall approve end delete begin insert shall: end insert

begin insert (1) end insert begin insert   end insert begin insert Approve end insert or disapprove annual contract funding terms and
conditions, including both family fee schedules and regional market
rate schedules that are required to be adhered to by contract, and
contract face sheets submitted by the State Department of
Education not more than 30 working days from the date of
submission, unless unresolved conflicts remain between the
Department of Finance, the State Department of Education, and
the Department of General Services. begin delete The end delete

begin insert

(2) Annually review contract funding terms and conditions for
the primary purpose of ensuring consistency between contracts
and the state budget. This review shall include evaluating any
proposed changes to contract language or other fiscal documents
to which the contractor is required to adhere, including those
changes to terms or conditions that authorize higher reimbursement
rates, that modify related adjustment factors, that modify
administrative or other service allowances, or that diminish fee
revenues otherwise available for services, to determine if the
change is necessary or has the potential effect of reducing the
number of full-time equivalent children that may be served.

end insert

begin insert (c) end insert begin insert   end insert begin insert The end insert State Department of Education shall resolve conflicts
within an additional 30 working day time period. Contracts and
funding terms and conditions shall be issued to child care
contractors no later than June 1. begin delete Applications end delete

begin insert (d) end insert begin insert   end insert begin insert Applications end insert for new child care funding shall be issued not
more than 45 working days after the effective date of authorized
new allocations of child care moneys.

begin delete

(2)

end delete

begin insert (e) end insert  Notwithstanding paragraph (1) begin insert of subdivision (b) end insert , the State
Department of Education shall implement the regional market rate
schedules based upon the county aggregates, as determined by the
Regional Market survey conducted in 2005.

begin delete

(3)

end delete

begin insert (f) end insert  Notwithstanding paragraph (1) begin insert of subdivision (b) end insert , for the
2006-07 fiscal year, the State Department of Education shall update
the family fee schedules by family size, based on the 2005 state
median income survey data for a family of four. The family fee
schedule used during the 2005-06 fiscal year shall remain in effect.
However, the department shall adjust the family fee schedule for
families that are newly eligible to receive or will continue to
receive services under the new income eligibility limits. The family
fees shall not exceed 10 percent of the family’s monthly income.

begin delete

(4)

end delete

begin insert (g) end insert  Notwithstanding any other law, the family fee schedule that
was in effect for the 2007-08, 2008-09, 2009-10, and 2010-11
fiscal years shall be adjusted to reflect the income eligibility limits
specified in subdivision (b) of Section 8263.1 for the 2011-12
fiscal year, and shall retain a flat fee per family. The revised family
fee schedule shall begin at income levels at which families
currently begin paying fees. The revised family fees shall not
exceed 10 percent of the family’s monthly income. The State
Department of Education shall first submit the adjusted fee
schedule to the Department of Finance for approval in order to be
implemented by July 1, 2011.

begin delete

(5)

end delete

begin insert (h) end insert  Notwithstanding any other law, the family fee schedule that
was in effect for the 2011-12 fiscal year pursuant to begin delete paragraph (4) end delete
begin insert subdivision (g) end insert shall remain in effect for the 2012-13 fiscal year,
and shall retain a flat fee per family.

begin delete

(6) It is the intent of the Legislature to fully fund the third stage
of child care for former CalWORKs recipients.

end delete begin delete

(c) With respect to subdivision (b), it is the intent of the
Legislature that the Department of Finance annually review
contract funding terms and conditions for the primary purpose of
ensuring consistency between child care contracts and the child
care budget. This review shall include evaluating any proposed
changes to contract language or other fiscal documents to which
the contractor is required to adhere, including those changes to
terms or conditions that authorize higher reimbursement rates, that
modify related adjustment factors, that modify administrative or
other service allowances, or that diminish fee revenues otherwise
available for services, to determine if the change is necessary or
has the potential effect of reducing the number of full-time
equivalent children that may be served.

end delete begin delete

(d) Alternative payment child care systems, as set forth in Article
3 (commencing with Section 8220), shall be subject to the rates
established in the Regional Market Rate Survey of California Child
Care Providers for provider payments. The State Department of
Education shall contract to conduct and complete a Regional
Market Rate Survey no more frequently than once every two years,
consistent with federal regulations, with a goal of completion by
March 1.

end delete begin delete

(e)

end delete

begin insert (i) end insert  By March 1 of each year, the Department of Finance shall
provide to the State Department of Education the State Median
Income amount for a four-person household in California based
on the best available data. The State Department of Education shall
adjust its fee schedule for child care providers to reflect this
updated state median income; however, no changes based on
revisions to the state median income amount shall be implemented
midyear.

begin delete

(f)

end delete

begin insert (j) end insert  Notwithstanding the June 1 date specified in subdivision (b),
changes to the regional market rate schedules and fee schedules
may be made at any other time to reflect the availability of accurate
data necessary for their completion, provided these documents
receive the approval of the Department of Finance. The Department
of Finance shall review the changes within 30 working days of
submission and the State Department of Education shall resolve
conflicts within an additional 30 working day period. Contractors
shall be given adequate notice prior to the effective date of the
approved schedules. It is the intent of the Legislature that contracts
for services not be delayed by the timing of the availability of
accurate data needed to update these schedules.

begin delete

(g)

end delete

begin insert (k) end insert  Notwithstanding any other begin delete provision of end delete law, no family
receiving CalWORKs cash aid may be charged a family fee.

begin insert

begin insert SEC. 138. end insert   

end insert

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

begin delete 8447.5. end delete
begin insert 8336. end insert   

The begin delete State Department of Education end delete begin insert department end insert may
execute a multiyear application process. Multiyear applications
may only be submitted by public and private agencies that have
been fully compliant in executing prior contracts for at least the
preceding three fiscal years as evidenced by all of the following:

(a) No fiscal audit disclaimer.

(b) No program quality deficiencies.

(c) No contract compliance deficiencies.

(d) No incidents of child abuse or molestation.

(e) No program management, administrative, or staffing
deficiencies.

(f) Any other criteria as may be deemed necessary to safeguard
the public trust.

begin insert

begin insert SEC. 139. end insert   

end insert

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

begin delete

 

Article 21.  Direct Service Contract Audit Requirements

 

end delete

begin insert

begin insert SEC. 140. end insert   

end insert

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

begin delete 8450. end delete
begin insert 8369. end insert   

(a) All begin delete child development end delete contractors are encouraged
to develop and maintain a reserve within the child development
fund, derived from earned but unexpended funds. begin delete Child
development contractors end delete begin insert Contractors end insert may retain all earned funds.
For the purpose of this section, “earned funds” are those for which
the required number of eligible service units have been provided.

(b) (1) Earned funds shall not be expended for any activities
proscribed by Section begin delete 8406.7 end delete begin insert 8344 end insert . Earned but unexpended funds
shall remain in the contractor’s reserve account within the child
development fund and shall be expended only by direct service
begin delete child development end delete begin insert early learning and educational support end insert
programs that are funded under contract with the department.

(2)  begin delete Commencing July 1, 2011, a end delete begin insert A end insert contractor may retain a
reserve fund balance, separate from the reserve fund retained
pursuant to subdivision (c) or (d), equal to 5 percent of the sum of
the maximum reimbursable amounts of all contracts to which the
contractor is a party, or two thousand dollars ($2,000), whichever
is greater. This paragraph applies to direct begin insert classroom end insert service begin delete child
development end delete programs that are funded under contract with the
department.

(c) Notwithstanding subdivisions (a) and (b), a contractor may
retain a reserve fund balance for a resource and referral program,
separate from the balance retained pursuant to subdivision (b) or
(d), not to exceed 3 percent of the contract amount. Funds from
this reserve account may be expended only by resource and referral
programs that are funded under contract with the department.

(d) Notwithstanding subdivisions (a) and (b), a contractor may
retain a reserve fund balance for alternative payment model and
certificate child care contracts, separate from the reserve fund
retained pursuant to subdivisions (b) and (c). Funds from this
reserve account may be expended only by alternative payment
model and certificate child care programs that are funded under
contract with the department. The reserve amount allowed by this
section may not exceed either of the following, whichever is
greater:

(1) Two percent of the sum of the parts of each contract to which
that contractor is a party that is allowed for administration pursuant
to Section begin delete 8276.7 end delete begin insert 8356 end insert and that is allowed for supportive services
pursuant to the provisions of the contract.

(2) One thousand dollars ($1,000).

(e) Each contractor’s audit shall identify any funds earned by
the contractor for each contract through the provision of contracted
services in excess of funds expended.

(f) Any interest earned on reserve funds shall be included in the
fund balance of the reserve. This reserve fund shall be maintained
in an interest-bearing account.

(g) Moneys in a contractor’s reserve fund may be used only for
expenses that are reasonable and necessary costs as defined in
subdivision begin delete (n) end delete begin insert (s) end insert of Section 8208.

(h) Any reserve fund balance in excess of the amount authorized
pursuant to subdivisions (b), (c), and (d) shall be returned to the
department pursuant to procedures established by the department.

(i) Upon termination of all child development contracts between
a contractor and the department, all moneys in a contractor’s
reserve fund shall be returned to the department pursuant to
procedures established by the department.

(j) Expenditures from, additions to, and balances in, the reserve
fund shall be included in the agency’s annual financial statements
and audit.

begin insert

begin insert SEC. 141. end insert   

end insert

begin insert The heading of Article 23 (commencing with Section
8485) of Chapter 2 of Part 6 of Division 1 of Title 1 of the end insert begin insert Education Code end insert begin insert is repealed. end insert

begin delete

 

Article 23.  Child Supervision Programs

 

end delete

begin insert

begin insert SEC. 142. end insert   

end insert

begin insert The heading of Article 25 (commencing with Section
8490) is added to Chapter 2 of Part 6 of Division 1 of Title 1 of
the end insert begin insert Education Code end insert begin insert , to read: end insert

begin insert

 

Article begin insert 25. end insert   San Francisco Pilot Project

 

end insert

begin insert

begin insert SEC. 143. end insert   

end insert

begin insert The heading of Article 26 (commencing with Section
8492) is added to Chapter 2 of Part 6 of Division 1 of Title 1 of
the end insert begin insert Education Code end insert begin insert , to read: end insert

begin insert

 

Article begin insert 26. end insert   San Mateo Pilot Project

 

end insert

begin insert

begin insert SEC. 144. end insert   

end insert

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

begin delete

 

Article 24.  Child Care and Development Facilities Capital
Outlay

 

end delete

begin insert

begin insert SEC. 145. end insert   

end insert

begin insert Section 8493 of the end insert begin insert Education Code end insert begin insert is amended and
renumbered to read: end insert

begin delete 8493. end delete
begin insert 8387. end insert   

It is the intent of the Legislature that funds be
appropriated for capital outlay for purposes of providing facilities
for begin delete child care and development end delete services provided pursuant to this
chapter, including, but not limited to, all of the following purposes:

(a) For the purchase of relocatable facilities by the state for lease
to qualifying contracting agencies in areas with no available
economically practical or feasible child care and development
facilities.

(b) For renovation and repair of child care and development
facilities in order to comply with state and local health and safety
standards and licensing requirements, without unnecessarily
increasing the value of the facility.

begin insert

begin insert SEC. 146. end insert   

end insert

begin insert Section 8494 of the end insert begin insert Education Code end insert begin insert is amended and
renumbered to read: end insert

begin delete 8494. end delete
begin insert 8402. end insert   

(a) All of the following begin delete child care and development end delete
programs, other than those providing extended day begin delete care end delete services,
shall be eligible to receive a loan for the renovation and repair of
facilities used for the program or to lease relocatable facilities to
be used for the program:

(1) Private nonprofit begin delete child care and development end delete programs
currently, or soon to be, under contract with the begin delete State Department
of Education end delete begin insert department end insert pursuant to Section begin delete 8262 end delete begin insert 8326 end insert .

begin delete

(2) Child care and development programs conducted pursuant
to Article 4 (commencing with Section 8225).

end delete begin delete

(3) Child care and development

end delete

begin insert (2) end insert begin insert   end insert begin insert Early learning and educational support end insert programs operated
by, or in a facility owned by, a public entity.

begin delete

(4) Child care and development

end delete

begin insert (3) end insert begin insert   end insert begin insert Early learning and educational support end insert programs conducted
pursuant to Article 7.1 (commencing with Section 54740) of
Chapter 9 of Part 29.

(b) A recipient of a loan pursuant to this section shall document
that the renovated facility shall comply with all laws and
regulations applicable to child care facilities provided for pursuant
to Chapter 3.4 (commencing with Section 1596.70) and Chapter
3.5 (commencing with Section 1596.90) of Division 2 of the Health
and Safety Code.

(c) A recipient of a loan pursuant to this section shall assure the
board that the renovated facility shall be used for the purposes of
the begin delete child care and development end delete begin insert early learning and educational
support end insert program for the entire loan period, which shall be
determined by the board as follows:

(1) For loans equal to or less than thirty thousand dollars
($30,000), not less than three years.

(2) For loans exceeding thirty thousand dollars ($30,000), the
loan period shall increase one year for each additional ten thousand
dollars ($10,000) or part thereof, to a maximum of fifty thousand
dollars ($50,000).

(d) Interest on the loan principal shall be charged at a rate equal
to the average of the interest rate applied to the last three bond
sales pursuant to Chapter 21.6 (commencing with Section 17695)
of Part 10.

(e) In the event that a recipient ceases to use the renovated
facility for purposes of the begin delete child care and development end delete program
begin delete prior to end delete begin insert before end insert the expiration of the loan period, the board shall
collect the entire outstanding balance of the loan, plus interest,
notwithstanding the loan period originally set pursuant to
subdivision (c), unless the board deems it appropriate to waive
repayment at that time.

(f) If the renovated facility has been continuously used for
purposes of the begin delete child care and development end delete program for the entire
loan period, the board shall waive repayment of the amount of the
loan principal, plus interest, at the end of the loan period.

begin insert

begin insert SEC. 147. end insert   

end insert

begin insert Section 8495 of the end insert begin insert Education Code end insert begin insert is amended and
renumbered to read: end insert

begin delete 8495. end delete
begin insert 8403. end insert   

(a) There is hereby created in the State Treasury the
State Child Care Capital Outlay Fund. Notwithstanding Section
13340 of the Government Code, all moneys in the State Child Care
Capital Outlay Fund, including moneys deposited in that fund from
any source whatsoever, shall be continuously appropriated without
regard to fiscal year for expenditure pursuant to the provisions of
this article. The fund shall be administered by the State Allocation
Board, which may authorize the expenditure of any moneys in the
fund for capital outlay projects pursuant to Section 8277.7 or this
article. Funds in the State Child Care Facilities Fund set aside for
the purposes of providing extended day care facilities pursuant to
Section 8477 shall be transferred to the State Child Care Capital
Outlay Fund upon the effective date of the act amending this
section in the 1997-98 Regular Session.

(b) The Superintendent begin delete of Public Instruction end delete shall establish the
qualifications to determine the eligibility of child care and
development agencies, including those that provide preschool and
extended day care services, to lease relocatable facilities under
this section.

(c) Although primary use of relocatable facilities shall be for
child care and development programs, including preschool and
extended day care programs, those facilities may be used for other
purposes if the following conditions are met:

(1) The alternative use of the facility does not infringe upon the
accessibility of child care and development programs including
preschool or extended day care programs.

(2) The Superintendent begin delete of Public Instruction end delete authorizes
alternative use as being compatible with child care and
development programs, including preschool or extended day care
programs.

(d) The State Allocation Board, with the advice of the
Superintendent begin delete of Public Instruction end delete , may do all of the following:

(1) Establish any procedures and policies in connection with
the administration of this section that it deems necessary.

(2) Adopt any rules and regulations for the administration of
this section requiring those procedures, forms, and information
that it deems necessary.

(3) Have constructed, furnished, equipped, or otherwise require
whatever work is necessary to place relocatable facilities for child
care and development services, including preschool and extended
day care services where needed.

(e) The board shall lease relocatable facilities to qualifying
agencies providing child care and development services, including
preschool or extended day care services, and shall charge rent of
one dollar ($1) per year. The board shall require lessees to
undertake all necessary maintenance, repairs, renewal, and
replacement to ensure that a project is at all times kept in good
repair, working order, and condition. All costs incurred for this
purpose shall be borne by the lessee. Neither the board nor the
state shall assume any responsibility for utility services costs other
than initial installation costs reimbursed under this article, and the
agency shall provide adequate safeguards to protect the state’s
interest in this regard.

(f) The board shall require lessees to insure at their own expense
for the benefit of the state, any leased relocatable facility that is
the property of the state, against any risks, including liability from
the use thereof, in the amounts the board deems necessary to protect
the interests of the state. Neither the board nor the state shall
assume any responsibility for utility services costs other than initial
installation costs reimbursed under this article, and the agency
shall provide adequate safeguards to protect the state’s interest in
this regard.

(g) No relocatable facilities shall be made available to an agency
unless the agency furnishes evidence, satisfactory to the board,
that the agency has no other facility available for rental, lease, or
purchase in the geographic service area that is economically or
otherwise feasible.

(h) The board shall have prepared for its use, performance
specifications for relocatable facilities and bids for their
construction that can be solicited from more than one responsible
bidder. The board shall from time to time solicit bids from, and
award to, the lowest responsible competitive bidder, contracts for
the construction or purchase of relocatable facilities that have been
approved for lease to eligible agencies that provide child care and
development services, including preschool or extended day care
services.

(i) If at any time the board determines that a lessees’ need for
particular relocatable facilities that were made available to the
lessee pursuant to this article has ceased, the board may take
possession of the relocatable facilities and may lease them to other
eligible contracting agencies, or, if there is no longer a need for
the relocatable facilities, the board may dispose of them to public
or private parties in the manner it deems to be in the best interests
of the state.

(j) If a lessee uses a particular relocatable facility for only a
portion of the year, the board may enter into a second lease with
a public or private party for the use of that facility for the portion
of the year during which the facility would otherwise be unused,
in the manner it deems to be in the best interests of the state. The
lessee shall be subject to subdivisions (d) and (f).

begin insert

begin insert SEC. 148. end insert   

end insert

begin insert Section 8495.1 of the end insert begin insert Education Code end insert begin insert is amended
and renumbered to read: end insert

begin delete 8495.1. end delete
begin insert 8404. end insert   

(a) The State Allocation Board shall establish regulations
for the allocation of funds for capital outlay and for the
reimbursement of initial utility installation costs for purposes of
this chapter. The Superintendent begin delete of Public Instruction end delete shall
establish qualifications for determining the eligibility of agencies
providing child care and development services, including preschool
and extended day care service, to apply for these funds.

(b) Notwithstanding any other begin delete provision of end delete law, except for
Section 8477, priority in funding of capital outlay grants or
relocatables from funds administered pursuant to Section begin delete 8277.7 end delete
begin insert 8396 end insert and under this article, shall be determined in the following
order:

(1) Programs experiencing emergencies as defined by the
Superintendent begin delete of Public Instruction end delete and the State Allocation
Board.

(2) Facilities lost due to the Class Size Reduction Program
(Chapter 6.10 (commencing with Section 52120) of Part 28).

(3) Expansion of child care services.

begin insert

begin insert SEC. 149. end insert   

end insert

begin insert The heading of Article 27 (commencing with Section
8496) is added to Chapter 2 of Part 6 of Division 1 of Title 1 of
the end insert begin insert Education Code end insert begin insert , to read: end insert

begin insert

 

Article begin insert 27. end insert   Early Learning and Educational Support Subsidy
Plan

 

end insert

begin insert

begin insert SEC. 150. end insert   

end insert

begin insert Section 8496 of the end insert begin insert Education Code end insert begin insert is amended and
renumbered to read: end insert

begin delete 8496. end delete
begin insert 8405. end insert   

The State Allocation Board may use an amount not to
exceed four hundred thousand dollars ($400,000), or 4 percent of
the total funds available for the purposes of this article, whichever
is less, in any given fiscal year for necessary administrative costs
incurred pursuant to this article, including, but not limited to, the
establishment of new administrative positions.

begin insert

begin insert SEC. 151. end insert   

end insert

begin insert Section 8498 of the end insert begin insert Education Code end insert begin insert is amended and
renumbered to read: end insert

begin delete 8498. end delete
begin insert 8406. end insert   

(a) The State Allocation Board may use up to 5 percent
of any appropriation for the purposes of this article to provide
loans to private nonsectarian begin delete child care and development end delete begin insert early
learning and educational support end insert programs not under contract
with the department for renovation and repair of existing program
facilities, in accordance with this section.

(b) The Superintendent shall establish qualifications to determine
the eligibility of child care agencies for loans pursuant to this
section.

(c) The board, with any necessary assistance from the
Superintendent, may do any of the following:

(1) Establish procedures and policies in connection with the
administration of this section it deems necessary.

(2) Adopt rules and regulations for the administration of this
section requiring procedure, forms, and information it deems
necessary.

(d) A recipient of a loan pursuant to this section shall do all of
the following:

(1) Document that the renovated facility shall comply with all
laws and regulations applicable to child care facilities provided
for pursuant to Chapter 3.4 (commencing with Section 1596.70)
and Chapter 3.5 (commencing with Section 1596.90) of Division
2 of the Health and Safety Code.

(2) Demonstrate to the satisfaction of the board that it will have
sufficient revenues to pay the principal and interest on the loan
and to maintain the operation of the child care facility.

(e) A recipient of a loan pursuant to this section shall assure the
board that the renovated facility shall be used for purposes of the
begin delete child care and end delete begin delete development end delete program for the following periods:

(1) For loans equal to or less than thirty thousand dollars
($30,000), not less than three years from the beginning of the loan
period.

(2) For loans exceeding thirty thousand dollars ($30,000), the
fixed period of time shall increase one year for each additional ten
thousand dollars ($10,000) or part thereof, to a maximum of fifty
thousand dollars ($50,000).

(f) The board shall set the period of the loan for each recipient,
up to a maximum of 10 years, based upon the amount of the loan,
the recipient’s ability to repay the loan, and the length of time the
recipient has committed to use the renovated facility for purposes
of the begin delete child care and development end delete program.

(g) Interest on the loan principal shall be charged at a rate equal
to the average of the interest rate applied to the last three bond
sales pursuant to Chapter 21.6 (commencing with Section 17695)
of Part 10.

(h) In the event that a recipient ceases to use the renovated
facility for purposes of the begin delete child care and development end delete program
begin delete prior to end delete begin insert before end insert the expiration of the period specified pursuant to
subdivision (e), the board shall collect the entire outstanding
balance of the loan, plus interest, notwithstanding the loan period
originally set pursuant to subdivision (f).

begin insert

begin insert SEC. 152. end insert   

end insert

begin insert The heading of Article 18 (commencing with Section
8407) is added to Chapter 2 of Part 6 of Division 1 of Title 1 of
the end insert begin insert Education Code end insert begin insert , to read: end insert

begin insert

 

Article begin insert 18. end insert   Local Educational Agencies and Community College
Provisions

 

end insert

begin insert

begin insert SEC. 153. end insert   

end insert

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

begin delete

 

Chapter  2.3. Local Planning Councils

 

end delete

begin insert

begin insert SEC. 154. end insert   

end insert

begin insert The heading of Article 1 (commencing with Section
8499) of Chapter 2.3 of Part 6 of Division 1 of Title 1 of the end insert begin insert Education Code end insert begin insert is repealed. end insert

begin delete

 

Article 1.  Definitions

 

end delete

begin insert

begin insert SEC. 155. end insert   

end insert

begin insert Section 8499 of the end insert begin insert Education Code end insert begin insert is repealed. end insert

begin delete

8499.  

For purposes of this chapter, the following definitions
shall apply:

(a) “Block grant” means the block grant contained in Title VI
of the Child Care and Development Fund, as established by the
federal Personal Responsibility and Work Opportunity
Reconciliation Act of 1996 (P.L. 104-193).

(b) “Child care” means all licensed child care and development
services and license-exempt child care, including, but not limited
to, private for-profit programs, nonprofit programs, and publicly
funded programs, for all children up to and including 12 years of
age, including children with exceptional needs and children from
all linguistic and cultural backgrounds.

(c) “Child care provider” means a person who provides child
care services or represents persons who provide child care services.

(d) “Community representative” means a person who represents
an agency or business that provides private funding for child care
services, or who advocates for child care services through
participation in civic or community-based organizations but is not
a child care provider and does not represent an agency that
contracts with the State Department of Education to provide child
care and development services.

(e) “Consumer” means a parent or person who receives, or who
has received within the past 36 months, child care services.

(f) “Department” means the State Department of Education.

(g) “Local planning council” means a local child care and
development planning council as described in Section 8499.3.

(h) “Public agency representative” means a person who
represents a city, county, city and county, or local educational
agency.

end delete

begin insert

begin insert SEC. 156. end insert   

end insert

begin insert The heading of Article 2 (commencing with Section
8499.3) of Chapter 2.3 of Part 6 of Division 1 of Title 1 of the end insert begin insert Education Code end insert begin insert is repealed. end insert

begin delete

 

Article 2.  Membership and Funding of Local Child Care and
Development Planning Councils

 

end delete

begin insert

begin insert SEC. 157. end insert   

end insert

begin insert Section 8499.3 of the end insert begin insert Education Code end insert begin insert is amended
and renumbered to read: end insert

begin delete 8499.3. end delete
begin insert 8300. end insert   

(a) It is the intent of the Legislature that local child care
and development planning councils shall provide a forum for the
identification of local priorities for begin delete child care end delete begin insert early learning and
educational support end insert and the development of policies to meet the
needs identified within those priorities.

(b) The county board of supervisors and the county
superintendent of schools shall do both of the following:

(1) Select the members of the local planning council. Before
making selections pursuant to this subdivision, the board of
supervisors and the county superintendent of schools shall publicize
their intention to select the members and shall invite local
organizations to submit nominations. In counties in which the
superintendent is appointed by the county board of education, the
county board of education may make the appointment or may
delegate that responsibility to the superintendent.

(2) Establish the term of appointment for the members of the
local planning council.

(c) (1) The local planning council shall be comprised as follows:

(A) Twenty percent of the membership shall be consumers.

(B) Twenty percent of the membership shall be child care
providers, reflective of the range of child care providers in the
county.

(C) Twenty percent of the membership shall be public agency
representatives.

(D) Twenty percent of the membership shall be community
representatives, who shall not be child care providers or agencies
that contract with the department to provide child care and
development services.

(E) The remaining 20 percent shall be appointed at the discretion
of the appointing agencies.

(2) The board of supervisors and the begin insert county end insert superintendent of
schools shall each appoint one-half of the members. In the case of
uneven membership, both appointing entities shall agree on the
odd-numbered appointee.

(d) Every effort shall be made to ensure that the ethnic, racial,
and geographic composition of the local planning council is
reflective of the ethnic, racial, and geographic distribution of the
population of the county.

(e) The board of supervisors and county superintendent of
schools may designate an existing child care planning council or
coordinated child and family services council as the local planning
council, as long as it has or can achieve the representation set forth
in this section.

(f) Upon establishment of a local planning council, the local
planning council shall elect a chair and select a staff.

(g) Each local planning council shall develop and implement a
training plan to provide increased efficiency, productivity, and
facilitation of local planning council meetings. This may include
developing a training manual, hiring facilitators, and identifying
strategies to meet the objectives of the council.

(h) No member of a local planning council shall participate in
a vote if he or she has a proprietary interest in the outcome of the
matter being voted upon.

begin insert

begin insert SEC. 158. end insert   

end insert

begin insert Section 8499.5 of the end insert begin insert Education Code end insert begin insert is amended
and renumbered to read: end insert

begin delete 8499.5. end delete
begin insert 8301. end insert   

(a) The department shall allocate child care funding
pursuant to begin delete Chapter 2 (commencing with Section 8200) end delete begin insert this chapter end insert
based on the amount of state and federal funding that is available.

(b) By May 30 of each year, upon approval by the county board
of supervisors and the county superintendent of schools, a local
planning council shall submit to the department the local priorities
it has identified that reflect all child care needs in the county. To
accomplish this, a local planning council shall do all of the
following:

(1) Conduct an assessment of child care needs in the county no
less than once every five years. The department shall define and
prescribe data elements to be included in the needs assessment and
shall specify the format for the data reporting. The needs
assessment shall also include all factors deemed appropriate by
the local planning council in order to obtain an accurate picture of
the comprehensive child care needs in the county. The factors
include, but are not limited to, all of the following:

(A) The needs of families eligible for subsidized child care.

(B) The needs of families not eligible for subsidized child care.

(C) The waiting lists for programs funded by the department
and the State Department of Social Services.

(D) The need for child care for children determined by the child
protective services agency to be neglected, abused, or exploited,
or at risk of being neglected, abused, or exploited.

(E) The number of children in families receiving public
assistance, including CalFresh benefits, housing support, and
Medi-Cal, and assistance from the Healthy Families Program and
the Temporary Assistance for Needy Families (TANF) program.

(F) Family income among families with preschool or schoolage
children.

(G) The number of children in migrant agricultural families
who move from place to place for work or who are currently
dependent for their income on agricultural employment in
accordance with begin delete subdivision (a) of, and end delete paragraphs (1) and (2) of
subdivision begin delete (b) end delete begin insert (a) end insert of begin delete , end delete Section begin delete 8231 end delete begin insert 8222 end insert .

(H) The number of children who have been determined by a
regional center to require services pursuant to an individualized
family service plan, or by a local educational agency to require
services pursuant to an individualized education program or an
individualized family service plan.

(I) The number of children in the county by primary language
spoken pursuant to the department’s language survey.

(J) Special needs based on geographic considerations, including
rural areas.

(K) The number of children needing child care services by age
cohort.

(2) Document information gathered during the needs assessment
which shall include, but need not be limited to, data on supply,
demand, cost, and market rates for each category of child care in
the county.

(3) Encourage public input in the development of the priorities.
Opportunities for public input shall include at least one public
hearing during which members of the public can comment on the
proposed priorities.

(4) Prepare a comprehensive countywide child care plan
designed to mobilize public and private resources to address
identified needs.

(5) Conduct a periodic review of child care programs funded
by the department and the State Department of Social Services to
determine if identified priorities are being met.

(6) Collaborate with subsidized and nonsubsidized child care
providers, county welfare departments, human service agencies,
regional centers, job training programs, employers, integrated child
and family service councils, local and state children and families
commissions, parent organizations, early start family resource
centers, family empowerment centers on disability, local child care
resource and referral programs, and other interested parties to
foster partnerships designed to meet local child care needs.

begin delete

(7) Design a system to consolidate local child care waiting lists,
if a centralized eligibility list is not already in existence.

end delete begin delete

(8)

end delete

begin insert (7) end insert  Coordinate part-day programs, including state preschool
and Head Start, with other child care and development services to
provide full-day child care.

begin delete

(9)

end delete

begin insert (8) end insert  Submit the results of the needs assessment and the local
priorities identified by the local planning council to the board of
supervisors and the county superintendent of schools for approval
before submitting them to the department.

begin delete

(10)

end delete

begin insert (9) end insert  Identify at least one, but not more than two, members to
serve as part of the department team that reviews and scores
proposals for the provision of services funded through contracts
with the department. Local planning council representatives may
not review and score proposals from the geographic area covered
by their own local planning council. The department shall notify
each local planning council whenever this opportunity is available.

(c) The department shall, in conjunction with the State
Department of Social Services and all appropriate statewide
agencies and associations, develop guidelines for use by local
planning councils to assist them in conducting needs assessments
that are reliable and accurate. The guidelines shall include
acceptable sources of demographic and child care data, and
methodologies for assessing child care supply and demand.

(d) The department shall allocate funding within each county
in accordance with the priorities identified by the local planning
council of that county and submitted to the department pursuant
to this section, unless the priorities do not meet the requirements
of state or federal law.

begin insert

begin insert SEC. 159. end insert   

end insert

begin insert Section 8499.7 of the end insert begin insert Education Code end insert begin insert is amended
and renumbered to read: end insert

begin delete 8499.7. end delete
begin insert 8302. end insert   

It is the intent of the Legislature that any additional
conditions imposed upon local planning councils shall be funded
from available federal funds to the greatest extent legally possible.

begin delete

SECTION 1.  

Section 8202 of the Education Code is amended
to read:

8202.  

It is the intent of the Legislature that:

(a) All children in California have access to high-quality early
learning and education support programs so that they thrive in
their early learning settings and succeed throughout kindergarten
and grades 1 to 12, inclusive. It is further the intent of the
Legislature that this be accomplished through the creation of a
comprehensive early learning and school support system for
children from birth through third grade that will promote both of
the following:

(1) Access to safe, high-quality programs.

(2) Comprehensive support for the development of the whole
child, including healthy physical, cognitive, social, and emotional
growth and development.

(b) All families have access to child care and development
services, through resource and referral services, where appropriate,
regardless of ethnic status, cultural background, or special needs.
It is further the intent that subsidized child care and development
services be provided to persons meeting the eligibility criteria
established under this chapter to the extent funding is made
available by the Legislature and Congress.

(c) Families achieve and maintain their personal, social,
economic, and emotional stability through an opportunity to attain
financial stability through employment, while maximizing growth
and development of their children, and enhancing their parenting
skills through participation in child care and development
programs.

(d) Community-level coordination in support of child care and
development services be encouraged.

(e) Families have a choice of programs that allow for maximum
involvement in planning, implementation, operation, and evaluation
of child care and development programs.

(f) Parents and families be fully informed of their rights and
responsibilities to evaluate the quality and safety of child care
programs, including, but not limited to, their right to inspect child
care licensing files.

(g) Planning for expansion of child care and development
programs be based on ongoing local needs assessments.

(h) The Superintendent, in providing funding to child care and
development agencies, promote a range of services that will allow
parents the opportunity to choose the type of care most suited to
their needs. The program scope may include the following:

(1) Programs located in centers, family day care homes, or in
the child’s own home.

(2) Services provided part-day, full-day, and during nonstandard
hours including weekend care, night and shift care, before and
after school care, and care during holidays and vacation.

(3) Child care services provided for infants, preschool, and
schoolage children.

(i) The Superintendent be responsible for the establishment of
a public hearing process or other public input process that ensures
the participation of those agencies directly affected by a particular
section or sections of this chapter.

SEC. 2.  

Section 8214 of the Education Code is amended to
read:

8214.  

(a) Child care resources and referral shall be provided
to all persons requesting services and to all types of child care
providers, regardless of income level or other eligibility criteria.
In addition to the services prescribed by this section, child care
resource and referral may provide a wide variety of parent and
provider support and educational services.

(b) The information provided to parents pursuant to subdivision
(a) of Section 8220.5 shall be provided to all families determined
eligible for and receiving services through the alternative payment
programs established pursuant to Article 3 (commencing with
Section 8220) and to all parents eligible for and receiving services
through the CalWORKs stage 2 and stage 3 programs pursuant to
Article 15.5 (commencing with Section 8350). These services shall
be provided at the time the family is determined eligible for child
care services and at recertification of eligibility so that parents
may make informed choices about child care services available.
Priority shall be given to providing information about child care
services that offer a safe, caring, and age-appropriate early learning
and school support environment for children as well as an
environment that supports the parents’ work activity. When
providing information to parents about high-quality early learning
and school support options, child care resource and referral
agencies may use resources from the certified list posted on the
department’s Internet Web site required by subdivision (c) or may
develop local resources that shall include, but are not limited to,
the following:

(1) Licensing and trustline requirements for centers, family
homes, and homes exempt from licensure.

(2) Caretaker-child interactions.

(3) Caretaker experience with young children.

(4) Environments that support the healthy development of young
children.

(5) Daily or regular schedules, routines, and policies.

(6) Information on quality rating and improvement systems,
where available.

(c) The department shall develop and certify a list of high-quality
early learning and school support resources to provide parents with
information about high-quality options for child care. The list of
certified resources shall be posted and maintained on the
department’s Internet Web site.

(d) The department shall make the resources described in
subdivision (c) available to both resource and referral programs
and alternative payment programs.

SEC. 3.  

Section 8220.5 of the Education Code is amended to
read:

8220.5.  

To offer maximum support for parents and providers,
alternative payment programs shall have access to resource and
referral services. Funding shall be adequate to purchase care at the
fee charged the private client for the same service as well as to
provide locally designed support services for parents and providers.
Alternative payment programs shall, in collaboration with the
resource and referral agencies in the county, provide the following
support services:

(a) (1) At the time the family is determined eligible for child
care services and at recertification of eligibility, provide
information for parents to assist them in making informed choices
about the available types of care that offer a safe, caring, and
age-appropriate early learning and school support environment for
children as well as an environment that supports the parents’ work
activities, including, but not limited to, information about
high-quality early learning and school support resources identified
pursuant to subdivision (b) of Section 8214.

(2) Where available, provide information on quality rating and
improvement systems.

(b) Professional and technical assistance and information for
providers.

(c) Parenting information.

SEC. 4.  

Section 8352 of the Education Code is amended to
read:

8352.  

(a) As soon as appropriate, a county welfare department
shall refer families needing child care services to the local child
care resource and referral program funded pursuant to Article 2
(commencing with Section 8210). Resource and referral program
staff shall colocate with a county welfare department’s case
management offices for aid under Chapter 2 (commencing with
Section 11200) of Part 3 of Division 9 of the Welfare and
Institutions Code, or any successor program, or arrange other
means of swift communication with parents and case managers of
this aid. The local child care resource and referral program shall
assist families to establish stable child care arrangements as soon
as possible. These child care arrangements may include licensed
and license-exempt care.

(b) In providing the support services required by Section 8220.5,
the resource and referral agencies in the county shall provide
information regarding high-quality early learning and school
support resources identified pursuant to subdivision (b) of Section
8214. Where available, that information shall include information
on quality rating and improvement systems.

(c) A program operating pursuant to this article shall, within
two business days of being notified of a revocation or a temporary
suspension order for a licensed child day care facility, do both of
the following:

(1) Terminate payment to the facility.

(2) Notify each parent and the facility in writing that payment
has been terminated and the reason for the termination.

(d) A program operating pursuant to this article shall, upon
being notified that a licensed child care facility has been placed
on probation, provide written notice to each parent utilizing the
facility that the facility has been placed on probation and that the
parent has the option of selecting a different child day care provider
or remaining with the facility without risk of subsidy payments to
the provider being terminated. The Legislature urges each agency
operating pursuant to this section to provide the written notice
required by this subdivision in the primary language of the parent,
to the extent feasible.

end delete