BILL NUMBER: AB 765 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY MARCH 26, 2015
INTRODUCED BY Assembly Member Ridley-Thomas
FEBRUARY 25, 2015
An act to amend Section 8265 of the Education Code, relating to
child care and development.
LEGISLATIVE COUNSEL'S DIGEST
AB 765, as amended, Ridley-Thomas. Child care and development:
reimbursement rates.
Existing law requires the Superintendent of Public Instruction to
implement a plan that establishes reasonable child care standards and
assigned reimbursement rates, as provided. Existing law requires the
standard reimbursement rate to be increased annually by a
cost-of-living adjustment, as provided.
This bill would make nonsubstantive changes to these provisions.
This bill would provide that the standard reimbursement rate is
not intended to fund mandated costs imposed upon child development
programs due to actions of law relating to minimum wage requirements,
health insurance requirements, new or increased fees, new or
expanded program requirements, or other cost increases due to
legislative action. The bill would also require the standard
reimbursement rate to be raised as needed to provide a living wage,
reasonable health insurance, and retirement benefits for employees,
to support the recruitment and retention of skilled and trained
teachers, to support the financial stability of programs and
educational quality, and to achieve gender pay equity. The bill would
define cost-of-living adjustment to be, among other things, at least
equal to the amount of the inflation adjustments given to K-12
education programs, as provided.
Vote: majority. Appropriation: no. Fiscal committee: no
yes . State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. (a) The Legislature finds and declares
all of the following:
(1) Teachers in state-funded educational child development
programs are denied living wages.
(2) Low wages for the predominantly female staff of these programs
contributes significantly to the gender pay gap in California.
(3) Many nonprofit, community-based child development agencies are
unable to provide employer-paid health insurance to their employees
and their families.
(4) There is a steady stream of both school district and nonprofit
agencies closing their child development programs.
(5) The cause of these problems is an inadequate standard
reimbursement rate for state-funded child development centers, due to
a 34-year history of either no annual cost-of-living adjustment
(COLA) or substandard raises. The lack of adequate COLAs has cut the
buying power, wages, and benefits in these agencies by 22 percent
since 1980, and has bankrupted programs.
(b) (1) It is the intent of the Legislature to both consistently
provide these state-funded child development programs with annual
cost-of-living adjustments equal to the inflation adjustments given
to K-12 education programs, and to take additional steps to rebuild
wages, benefits, and financial stability in these programs.
(2) It is the intent of the Legislature to eliminate gender pay
inequity in wages for the predominantly female and college educated
staff of these programs.
(3) It is the intent of the Legislature to ensure and enhance the
ability of these programs for young children to meet the high
educational standards required by state and federal law and
regulations, and to retain skilled and trained teachers by increasing
the standard reimbursement rate.
SECTION 1. SEC. 2. Section 8265 of
the Education Code is amended to read:
8265. (a) The Superintendent shall implement a plan that
establishes reasonable standards and assigned reimbursement rates,
which vary with the length of the program year and the hours of
service.
(1) Parent fees shall be used to pay reasonable and necessary
costs for providing additional services.
(2) When establishing standards and assigned reimbursement rates,
the Superintendent shall confer with applicant agencies.
(3) The reimbursement system, including standards and rates, shall
be submitted to the Joint Legislative Budget Committee.
(4) The Superintendent may establish any regulations he or she
deems advisable concerning conditions of service and hours of
enrollment for children in the programs.
(b) (1) The standard reimbursement rate
shall be nine thousand twenty-four dollars and seventy-five cents
($9,024.75) per unit of average daily enrollment for a 250-day year,
and commencing with the 2015-16 fiscal year, shall be increased by
the cost-of-living adjustment granted by the Legislature annually
pursuant to Section 42238.15. The standard
reimbursement rate is not intended to fund mandated costs imposed
upon child development programs due to actions of law relating to
minimum wage requirements, health insurance requirements, new or
increased fees, new or expanded program requirements, or other cost
increases due to legislative action.
(2) In addition to the increase in paragraph (1), the standard
reimbursement rate shall be raised as needed to provide a living
wage, reasonable health insurance, and retirement benefits for
employees, to support the recruitment and retention of skilled and
trained teachers, to support the financial stability of programs and
educational quality, and to achieve gender pay equity.
(3) For purposes of this subdivision, "cost-of-living adjustment"
means an annual increase in funding and the standard reimbursement
rate to maintain buying power as the result of inflation.
Notwithstanding any other law, for each fiscal year, the amount of
cost-of-living adjustment provided by Section 42238.15 shall at least
be equal to the amount of the inflation adjustment provided by
Section 42238.1.
(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 child care rates as those
prevailing in the local community.
(3) Increased costs directly attributable to new or different
regulations.
(4) (A) Documented increased costs necessary to maintain the prior
year's level of service and ensure the continuation of threatened
programs.
(B) Child care agencies funded at the lowest rates shall be given
first priority for increases.
(e) The plan shall provide for expansion of child development
programs at no more than the standard reimbursement rate 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.