Amended in Assembly April 12, 2016

Amended in Assembly April 5, 2016

Amended in Assembly March 18, 2016

California Legislature—2015–16 Regular Session

Assembly Bill No. 2133

Introduced by Assembly Member Chu

February 17, 2016

An act to add Sections 8221.6 and 8221.7 to the Education Code, relating to child care and development.

LEGISLATIVE COUNSEL’S DIGEST

AB 2133, as amended, Chu. Child care: alternative payment programs: appeals process.

Existing law, the Child Care and Development Services Act, requires the State Department of Education to contract with local contracting agencies for alternative payment programs that are intended to allow for maximum parental choice in child care.

This bill would require the department to establish a 2-step appeals process for parents who receive child care subsidies, as specified, and a 2-step appeals process for family child care providers who receive child care subsidy payments, as specified.

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

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

SECTION 1.  

It is the intent of the Legislature to do all of the
following:

(a) To ensure that parents eligible for child care subsidies
through the alternative payment program, also known as the
contractor, receive accurate and reliable information as to their
eligibility for services and their right to choose the appropriate
early education program for their child, and that eligible providers
are able to care for subsidized children in accordance with state
statute.

(b) To ensure that the providers of care receive appropriate
referrals and accurate and timely payment for their services.

(c) To establish appeals processes to ensure that parents and
providers have administrative remedies when they have reason to
believe that a decision by an alternative payment program is
incorrect.

SEC. 2.  

Section 8221.6 is added to the Education Code, to
read:

8221.6.  

(a) The department shall establish a two-step appeals
process for parents who receive subsidies that includes a first step
within the alternative payment program agency with the hearing
officer being an administrative employee other than the employee
who made the decision that is being appealed, and a second step
within the Early Education and Support Division. The department’s
decision shall be final.

(b) (1) (A) The begin delete contractor through the notice of action end delete
begin insert contractor, through the notice of action, end insert shall notify the parent of
his or her appeal rights as established under this section any time
a notice of action is sent to the parent. As used in this section,
“contractor” means the local contracting agency that has entered
into an agreement with the department for an alternative payment
program.

(B) The contractor shall complete a notice of action if the
application for services is approved, or when changes are made to
the service agreement. These changes may include, but are not
necessarily limited to, an increase or decrease in parent fees, an
increase or decrease in the amount of services or termination of
services, or a violation of parental choice.

(C) The contractor shall mail or deliver the notice of action to
the parent at least 14 calendar days before the effective date of the
intended action.

(D) If the parent disagrees with an action, the parent may file a
request for a hearing with the contractor within 30 calendar days
of the date the notice of action was received.

(E) Upon the filing of a request for hearing, the intended action
shall be suspended until the review process has been completed.
The review process is complete when the appeal process has been
exhausted, including the second step at the department, or when
the parent abandons the appeal process.

(F) Within 10 calendar days following the receipt of the request
for a hearing, the contractor shall notify the parent of the time and
place of the hearing. The time and place of the hearing shall, to
the extent possible, be convenient for the begin insert parent and shall be held
no later than 14 calendar days after the date when the notice of
hearing was sent to the end insert parent.

(G) The hearing shall be conducted by an administrative staff
person who shall be referred to as “the hearing officer.” The
hearing officer shall be at a staff level higher in authority than the
staff person who made the contested decision.

(H) The parent, or the parent’s representative of his or her
choosing, shall be required to attend the hearing. If the parent or
the parent’s representative fails to appear at the hearing, the parent
shall be deemed to have abandoned the appeal.

(I) The contractor shall arrange for the presence of an interpreter
at the hearing if one is requested by the parent.

(J) The hearing officer shall explain to the parent the legal,
regulatory, or policy basis for the intended action.

(K) During the hearing, the parent shall have an opportunity to
explain the reason or reasons he or she believes that the contractor’s
decision was incorrect. The contractor’s staff shall present any
material facts they believe were omitted by the parent.

(L) The hearing officer shall mail or deliver to the parent a
written decision within 10 calendar days after the hearing.

(2) If the parent is receiving Stage 1 CalWORKs child care
funding, the appeals process applicable to the CalWORKs program
pursuant to Chapter 2 (commencing with Section 11200) of Part
3 of Division 9 of the Welfare and Institutions Code shall apply.

(c) (1) If the parent disagrees with the written decision from
the contractor, the parent has 30 calendar days in which to appeal
to the Early Education and Support Division.

(2) If the parent does not submit an appeal request to the Early
Education and Support Division within 30 calendar days, the
parent’s appeal process shall be deemed abandoned and the
contractor may implement the intended action.

(3) The parent shall specify in the appeal request the reason or
reasons why he or she believes the contractor’s decision is
incorrect.

(4) Upon receipt of an appeal request, the Early Education and
Support Division shall request copies of the basic data file
including the intended notice of action and the contractor’s written
decision and other relevant materials from the contractor. The
Early Education and Support Division may also conduct any
investigations, interviews, or mediation necessary to resolve the
appeal.

(5) The decision of the Early Education and Support Division
shall be mailed or delivered to the parent and the contractor within
30 calendar days after receipt of the appeal request.

(d) (1) The contractor shall comply with the decision of the
Early Education and Support Division immediately upon receipt
of that decision.

(2) The contractor shall be reimbursed for child care and
development services that are delivered to a family during the
appeal process.

(3) If a contractor’s determination that a family is ineligible is
upheld by the Early Education and Support Division, services to
the family shall cease upon receipt of the Child Development
Division’s decision by the contractor. begin insert If such a decision is made,
the contractor shall notify the affected provider and parent of that
decision. end insert

(e) As used in this section, “Early Education and Support
Division” means the Early Education and Support Division of the
department.

SEC. 3.  

Section 8221.7 is added to the Education Code, to
read:

8221.7.  

(a) The department shall establish a two-step appeals
process for licensed and license-exempt family child care providers
who receive subsidy payments through an alternative payment
program. The first step shall be within the alternative payment
program agency with the hearing officer being an administrative
employee other than the employee who made the decision that is
being appealed, and a second step within the Early Education and
Support Division. The department’s decision shall be final.

(b) (1) The contractor, through the certificate that authorizes
the provider to care for a child in the subsidy program, shall notify
the provider of his or her appeal rights as established under this
section. Appealable issues may include, but are not necessarily
limited to, begin delete initial approval or denial of end delete begin insert lack of notification of change
in the status of parents’ eligibility for end insert care, accurate payments for
services rendered, and timeliness of payments for services begin delete rendered. end delete
begin insert rendered if submitted timesheets are complete and have met the
timeframes in the contractor’s schedule of timesheet submissions. end insert
As used in this section, “contractor” means the local contracting
agency that has entered into an agreement with the department for
an alternative payment program.

(2) The contractor, through the certificate of authorization for
care, shall initially notify the provider of the terms and conditions
of services to a parent and his or her children and any changes
thereafter. The contractor shall mail or deliver the notice of changes
to the provider at least 14 calendar days before the effective date
of the intended change. If the provider disagrees with an action,
the provider may file a request for a hearing with the contractor
within 30 calendar days of the date the notice was received by the
provider.

(3) Upon the filing of a request for hearing, the intended action
shall be suspended until the review process has been completed.
The review process is complete when the appeal process has been
exhausted, including the second step at the department or when
the provider abandons the appeal process.

(4) Within 10 calendar days following the receipt of the request
for a hearing, the contractor shall notify the provider of the time
and place of the hearing. The time and place of the hearing shall,
to the extent possible, be convenient for the begin insert provider and shall be
held no later than 14 calendar days after the date when the notice
of hearing was sent to the end insert provider.

(5) The hearing shall be conducted by an administrative staff
person who shall be referred to as “the hearing officer.” The
hearing officer shall be at a staff level higher in authority than the
staff person who made the contested decision.

(6) The provider, or the provider’s representative of his or her
choosing, is required to attend the hearing. If the provider or the
provider’s representative fails to appear at the hearing, the provider
shall be deemed to have abandoned the appeal.

(7) The contractor shall arrange for the presence of an interpreter
at the hearing if one is requested by the provider.

(8) The hearing officer shall explain to the provider the legal,
regulatory, or policy basis for the intended action.

(9) During the hearing, the provider shall have the opportunity
to explain the reason or reasons he or she believes that the
contractor’s decision is incorrect. The contractor’s staff shall
present any material facts that they believe were omitted by the
provider.

(10) The hearing officer shall mail or deliver to the provider a
written decision within 10 calendar days after the hearing.

(c) (1) If the provider disagrees with the written decision from
the contractor, the provider has 30 calendar days in which to appeal
to the Early Education and Support Division.

(2) If the provider does not submit an appeal request to the Early
Education and Support Division within 30 calendar days, the
provider’s appeal process shall be deemed abandoned and the
contractor may implement the intended action.

(3) The provider shall specify in the appeal request the reason
or reasons why he or she believes the contractor’s decision is
incorrect.

(4) Upon receipt of a request for appeal, the Early Education
and Support Division shall request copies of the basic data file,
including the intended notice of action and the contractor’s written
decision and other relevant materials from the contractor. The
Early Education and Support Division may also conduct any
investigations, interviews, or mediation necessary to resolve the
appeal.

(5) The decision of the Early Education and Support Division
shall be mailed or delivered to the provider and the contractor
within 30 calendar days after receipt of the appeal request.

(d) (1) The contractor shall comply with the decision of the
Early Education and Support Division immediately upon receipt
of that decision.

(2) The contractor shall be reimbursed for any child care and
development services that are delivered by a provider during the
appeal process.

(3) If a contractor’s determination is upheld by the Early
Education and Support Division, the intended action proposed by
the contractor shall be carried out or upheld. begin insert If the appeal is upheld,
the contractor shall notify the provider and the parent who was
initially affected by the original decision. end insert

(e) As used in this section, “Early Education and Support
Division” means the Early Education and Support Division of the
department.