Amended in Assembly June 18, 2014

Amended in Assembly August 5, 2013

Amended in Assembly June 14, 2013

Amended in Senate May 28, 2013

Amended in Senate April 16, 2013

Amended in Senate April 3, 2013

Amended in Senate March 12, 2013

Senate Bill No. 192

Introduced by Senator Liu

February 7, 2013

An act to amend Sections 8200, 8201, 8202, 8203, 8203.5, 8204, 8205, 8206, 8208, 8208.1, 8208.5, 8209, 8210, 8211, 8212, 8212.3, 8213, 8214, 8215, 8216, 8220, 8220.1, 8220.5, 8222, 8223, 8225, 8226, 8227, 8230, 8232, 8233, 8235, 8236, 8236.1, 8238.4, 8239, 8244, 8250, 8250.5, 8251, 8252, 8255, 8257, 8258, 8261, 8261.5, 8262, 8263, 8263.2, 8263.3, 8263.4, 8264, 8264.5, 8264.6, 8264.7, 8265, 8266, 8266.1, 8272, 8275, 8276.7, 8277, 8277.8, 8278.3, 8279.1, 8279.3, 8279.4, 8279.5, 8279.7, 8282, 8320, 8321, 8324, 8327, 8328, 8329, 8335.1, 8335.5, begin delete 8341, 8341.5, 8342, 8343, 8344, end delete begin insert 8347, 8347.2, 8347.3, 8347.4, end insert 8350, 8352, 8353, 8354, 8355, 8356, 8357, 8358, 8358.5, 8359.1, 8360, 8360.2, 8400, 8401, 8402, 8406.7, 8447, 8448, 8450, 8493, 8494, 8495, 8495.1, 8498, 8499, 8499.3, and 8499.5 of, to amend the heading of Chapter 2 (commencing with Section 8200) of Part 6 of Division 1 of Title 1 of, to amend the headings of Article 6 (commencing with Section 8230), Article 7 (commencing with Section 8235), Article 8 (commencing with Section 8240), Article 9 (commencing with Section 8250), Article 15.2 (commencing with Section 8335), Article begin delete 15.3 end delete begin insert 15.4 end insert (commencing with Section begin delete 8340), end delete begin insert 8347), end insert Article 15.5 (commencing with Section 8350), and Article 16 (commencing with Section 8360), of Chapter 2 of Part 6 of Division 1 of Title 1 of, to amend the heading of Article 2 (commencing with Section 8499.3) of Chapter 2.3 of Part 6 of Division 1 of Title 1 of, to amend, repeal, and add Sections 8231 and 8240 of, to add Sections 8220.3 and 8220.6 to, to add Article 5 (commencing with Section 8228) to Chapter 2 of Part 6 of Division 1 of Title 1 of, and to repeal and add Sections 8264.8 and 8360.1 of, the Education Code, relating to early learning and educational support services.

LEGISLATIVE COUNSEL’S DIGEST

SB 192, as amended, Liu. Early learning and educational support services.

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.

This bill would reorganize and recast those provisions as the Early Learning and Educational Support Act, and would require the Superintendent to develop standards for the implementation of high-quality early learning and educational support programs based on certain indicia of quality, including, but not limited to, program activities and services that meet the needs of children with exceptional needs and diverse abilities. The bill would require certain information to be given to parents who receive services from resource and referral programs and alternative payment programs. The bill would delete obsolete provisions, make other related and conforming changes, and make nonsubstantive changes.

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.  

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

 

Chapter  2. Early Learning and Educational Support
Act

 

SEC. 2.  

Section 8200 of the Education Code is amended to
read:

8200.  

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

SEC. 3.  

Section 8201 of the Education Code is amended to
read:

8201.  

The purpose of this chapter is as follows:

(a) To provide a comprehensive, coordinated, and cost-effective
system of early learning and educational support services for
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.

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

(c) To provide an environment that is healthy and nurturing for
all children in early learning and educational support programs.

(d) To provide the opportunity for positive parenting to take
place through understanding of human growth and development.

(e) To reduce strain between parent and child in order to prevent
abuse, neglect, or exploitation.

(f) To enhance the cognitive development of children, with
particular emphasis upon those children who require special
assistance, including bilingual capabilities to attain their full
potential.

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

(h) To empower and encourage parents and families of children
who require early learning and educational support services to take
responsibility to review the safety of the program or facility and
to evaluate the ability of the program or facility to meet the needs
of the child.

SEC. 4.  

Section 8202 of the Education Code is amended to
read:

8202.  

It is the intent of the Legislature that:

(a) All families have access to early learning and educational
support services, through resource and referral services, where
appropriate, regardless of ethnic status, cultural background, or
special needs. It is further the intent that subsidized early learning
and educational support 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.

(b) The healthy physical, cognitive, social, and emotional growth
and development of children be supported.

(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 early learning and educational
support programs.

(d) Community-level coordination in support of early learning
and educational support services be encouraged.

(e) Families have a choice of programs that allow for maximum
involvement in planning, implementation, operation, and evaluation
of early learning and educational support programs.

(f) Parents and families be fully informed of their rights and
responsibilities to evaluate the quality and safety of begin insert care end insert programs,
including, but not limited to, their right to inspect begin delete child end delete care
licensing files.

(g) Planning for expansion of early learning and educational
support programs be based on ongoing local needs assessments.

(h) The Superintendent, in providing funding to early learning
and educational support 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 begin delete day end delete 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) Services provided for infants and toddlers, and 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. 5.  

Section 8203 of the Education Code is amended to
read:

8203.  

The Superintendent shall develop standards 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.

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

(d) Family and community begin insert involvement and end insert engagement.

(e) Parent education.

(f) Efficient and effective local program administration.

(g) Staff that possesses the appropriate and required
qualifications or experience, or both. The appropriate staff
qualifications shall reflect the diverse linguistic and cultural
makeup of the children and families in the early learning and
educational support program. The use of intergenerational staff
shall be encouraged.

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

(i) Support services for children, families, and providers of care.

(j) Resource and referral services.

(k) Alternative payment services.

(l) Provision for nutritional needs of children.

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

(n) Developmental and health services, as defined in subdivision
begin delete (m) end delete begin insert (n) end insert of Section 8208, that include referral of children to
appropriate agencies for services.

SEC. 6.  

Section 8203.5 of the Education Code is amended to
read:

8203.5.  

(a) The Superintendent shall ensure that each contract
entered into under this chapter to provide early learning and
educational support services, or 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 ensure that all contracts for early
learning services include a requirement that each 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 a developmental profile to
all public and private providers using existing profile instruments
that are most cost efficient. The provider of any program operated
pursuant to a contract under Section 8262 shall be responsible for
maintaining developmental profiles upon entry through exit from
a program providing early learning services.

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

SEC. 7.  

Section 8204 of the Education Code is amended to
read:

8204.  

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 a begin delete child care and development end delete facility as
defined in subdivision begin delete (h) end delete begin insert (i) end insert of Section 8208 and that these
facilities have an obligation to provide for the nutritional needs of
children in attendance.

SEC. 8.  

Section 8205 of the Education Code is amended to
read:

8205.  

It is the intent of the Legislature that, in providing early
learning and educational support programs, the Superintendent
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.

SEC. 9.  

Section 8206 of the Education Code is amended to
read:

8206.  

(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 section, “Child Care and Development
Fund” has the same meaning as in Section 98.2 of Title 45 of the
Code of Federal Regulations.

(c) The department may create a list of high-quality early
learning and educational support resources to demonstrate
high-quality options available to parents. If the department creates
a list of resources, the list shall be posted on the department’s
Internet Web site and made available to both resource and referral
programs and alternative payment programs.

SEC. 10.  

Section 8208 of the Education Code is amended to
read:

8208.  

As used in this chapter:

(a) “Alternative payments” includes payments that are made by
begin delete one child care agency to another agency or child end delete begin insert an alternative
payment program to a licensed or license-exempt end insert care provider
for the provision of early learning and educational support services,
and payments that are made by an begin delete agency end delete begin insert alternative payment
program end insert to a parent for the parent’s purchase of early learning and
educational support services.

(b) “Alternative payment program” means a local government
agency or nonprofit organization that has contracted with the
department pursuant to Section 8220.1 to provide alternative
payments and to provide support services to parents and providers.

(c) “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.

(d) “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.

(e) (1) “Attendance” means the number of children present at
a begin delete child care and development end delete facility where begin insert early learning and
educational support end insert services are provided.

(2) For purposes of reimbursement begin delete to end delete begin insert for end insert early learning services,
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.

(3) For purposes of reimbursement to providers through an
alternative payment program, attendance includes any of the
following:

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

(B) For families with variable schedules, the actual days and
hours of attendance up to the maximum certified hours.

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

(4) For purposes of reimbursement to providers through an
alternative payment program, contractors shall not be required to
track absences.

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

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

begin insert

(h) “Child care” or “care” means services provided by all
licensed or license-exempt providers, including, but not limited
to, private for-profit, nonprofit, and publicly funded programs, for
all children from birth to 13 years of age, including children with
exceptional needs and children from all linguistic and cultural
backgrounds.

end insert begin delete

(h)

end delete

begin insert (i) end insert  “Child care and development facility” begin insert or “facility end insert begin insert ” end insert means
a residence or building or part of a residence or building in which
early learning and educational support services are provided.

begin delete

(i)

end delete

begin insert (j) end insert  “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.

begin delete

(j)

end delete

begin insert (k) end insert  “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 begin delete child end delete 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 begin delete child end delete 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.

begin delete

(k)

end delete

begin insert (l) end insert  “Closedown costs” means reimbursements for all approved
activities associated with the closing of operations at the end of
each growing season for early learning programs serving migrant
populations pursuant to Article 6 (commencing with Section 8230).

begin delete

(l)

end delete

begin insert (m) end insert  “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.

begin delete

(m)

end delete

begin insert (n) end insert  “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.

begin delete

(n)

end delete

begin insert (o) end insert  “Early learning programs” means early learning and
educational support programs that serve children from birth to 13
years of age, including, but not limited to, services for begin delete infants and
toddlers, preschool age children, schoolage children, and children
of migrant agricultural worker families. end delete begin insert the following: end insert

begin insert

(1) Infants and toddlers pursuant to Article 8 (commencing with
Section 8240).

end insert begin insert

(2) Preschool age children pursuant to Article 7 (commencing
with Section 8235).

end insert begin insert

(3) Schoolage children pursuant to Article 8 (commencing with
Section 8240).

end insert begin insert

(4) Children of migrant agricultural worker families pursuant
to Article 6 (commencing with Section 8230).

end insert begin delete

(o)

end delete

begin insert (p) end insert  “Early learning services” means begin delete early learning programs,
family child care home education networks, and programs that
serve severely disabled children, that are administered by the
Superintendent pursuant to Article 5 (commencing with Section
8228). end delete begin insert all of the following: end insert

begin insert

(1) Early learning programs pursuant to Article 8 (commencing
with Section 8240).

end insert begin insert

(2) Family child care home education networks pursuant to
Article 8.5 (commencing with Section 8245).

end insert begin insert

(3) Programs that serve severely disabled children pursuant to
subdivision (d) of Section 8250.

end insert begin insert

(4) Services administered by the Superintendent pursuant to
Article 5 (commencing with Section 8228).

end insert begin delete

(p)

end delete

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

begin insert

(1) Early learning services pursuant to Article 5 (commencing
with Section 8228).

end insert begin insert

(2) Alternative payment programs pursuant to subdivision (b).

end insert begin delete

(q)

end delete

begin insert (r) end insert  “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.

begin delete

(r)

end delete

begin insert (s) end insert  “Family child care home education network” means an entity
organized under law that contracts with the department pursuant
to Section 8245 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.

begin delete

(s)

end delete

begin insert (t) end insert  “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.

begin delete

(t)

end delete

begin insert (u) end insert  “Intergenerational staff” means persons of various
generations.

begin delete

(u)

end delete

begin insert (v) end insert  “Limited-English-speaking-proficient and
non-English-speaking-proficient children” means children who
are 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 they first
began to speak.

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

begin delete

(v)

end delete

begin insert (w) end insert  “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.

begin delete

(w)

end delete

begin insert (x) end insert  “Program director” means a person who, pursuant to Sections
8244 and 8360.1, is qualified to serve as a program director.

begin delete

(x)

end delete

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

begin delete

(y)

end delete

begin insert (z) end insert  “Resource and referral programs” means programs that
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.

begin delete

(z)

end delete

begin insert (aa) end insert  “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.

begin delete

(aa)

end delete

begin insert (ab) end insert  “Short-term respite child care” means begin delete child end delete care begin delete service end delete
begin insert services end insert 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. begin delete Child care end delete begin insert Care end insert is provided for less than 24 hours per
day in begin delete child care end delete centers, treatment centers for abusive parents,
family child care homes, or in the child’s own home.

begin delete

(ab)

end delete

begin insert (ac) end insert   begin insert (1) end insert begin insert   end insert “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 an early learning and educational support 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.

begin insert

(2) For California state preschool programs, a site supervisor
may qualify under any of the provisions of this subdivision, or may
qualify by holding an administrative credential or an administrative
services credential. A person who meets the qualifications of a
program director under Sections 8244 and 8360.1 is also qualified
under this subdivision.

end insert begin delete

(ac)

end delete

begin insert (ad) end insert  “Standard reimbursement rate” means that rate established
by the Superintendent pursuant to Section 8265.

begin delete

(ad)

end delete

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

begin delete

(ae)

end delete

begin insert (af) end insert  “California state preschool program services” means
part-day and full-day begin delete educational end delete programs begin insert that provide
developmentally appropriate educational activities end insert and services
designed to facilitate the transition to kindergarten for low-income
or otherwise disadvantaged three- and four-year-old children.

begin delete

(af)

end delete

begin insert (ag) end insert  “Support services” means those services that, when
combined with early learning and educational support begin delete services, end delete
begin insert programs end insert 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, resource
and referral services, and child placement counseling.

begin delete

(ag)

end delete

begin insert (ah) end insert  “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.

begin delete

(ah)

end delete

begin insert (ai) end insert  “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 begin delete program end delete services to the need for these
services is low, as determined by the Superintendent.

begin delete

(ai)

end delete

begin insert (aj) end insert  “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.

begin delete

(aj)

end delete

begin insert (ak) end insert  “Three-year-old children” means children who will have
their third birthday on or before the date specified of 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.

begin delete

(ak)

end delete

begin insert (al) end insert  “Four-year-old children” means children who will have
their fourth birthday on or before the date specified of 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.

begin delete

(al)

end delete

begin insert (am) end insert  “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.

SEC. 11.  

Section 8208.1 of the Education Code is amended to
read:

8208.1.  

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

SEC. 12.  

Section 8208.5 of the Education Code is amended to
read:

8208.5.  

Notwithstanding any other law, early learning and
educational support programs, as defined in Section 8208, shall
include, but not be limited to, respite begin delete child end delete care.

SEC. 13.  

Section 8209 of the Education Code is amended to
read:

8209.  

(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 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) 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 child nutrition
programs in early learning and educational support 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.

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

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

(e) If a request for a waiver pursuant to subdivision (a) or (b)
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.

SEC. 14.  

Section 8210 of the Education Code is amended to
read:

8210.  

Funds appropriated for the purpose of this chapter may
be used for resource and referral programs that may be operated
by public or private nonprofit entities.

SEC. 15.  

Section 8211 of the Education Code is amended to
read:

8211.  

It is the intent of the Legislature that one hundred eighty
thousand dollars ($180,000) be appropriated each fiscal year for
allocation to resource and referral agencies operated by local
educational agencies for the purpose of the resources and referral
program set forth in this article.

SEC. 16.  

Section 8212 of the Education Code is amended to
read:

8212.  

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

(a) Identification of the full range of existing 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 that shall be maintained and updated at least
quarterly. These services shall include, but not be limited to, early
learning and educational support programs, family begin delete day end delete care homes,
public and private begin delete day end delete care programs, full-time and part-time
programs, and infant, toddler, 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 that responds to
parental need for information and that 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 which are spoken in the community.

Each 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
referral of his or her right to view the licensing information of a
licensed child begin delete day end delete 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 begin delete day end delete 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 resource and referral programs:

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

(2) Ages of children served.

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

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

(5) Reason that the 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 care services. This assistance shall include,
but not be limited to:

(1) Information on all aspects of initiating new 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 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 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 care to facilitate the
maintenance and development of care services and resources.

(e) (1) A program operating pursuant to this article shall, within
two business days of receiving notice, remove a licensed begin delete child day
care end delete 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 3 (commencing with Section 8220) and
Article 15.5 (commencing with Section 8350) in the program’s
jurisdiction, of a licensed begin delete child day care end delete facility with a revocation
or a temporary suspension order, or that is on probation.

SEC. 17.  

Section 8212.3 of the Education Code is amended to
read:

8212.3.  

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

SEC. 18.  

Section 8213 of the Education Code is amended to
read:

8213.  

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

SEC. 19.  

Section 8214 of the Education Code is amended to
read:

8214.  

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

(b) Information shall be provided to parents in the county of
service at the time the family is determined eligible for services,
and at recertification, by one of the following:

(1) An alternative payment program.

(2) A resource and referral program.

(3) A partnership between the alternative payment program and
the resource and referral program.

(c) The information provided by the program or partnership
shall be to assist parents 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 options and resources specified
in this subdivision. The program or partnership may utilize
resources from a list posted on the department’s Internet Web site
pursuant to subdivision (c) of Section 8206 if this list is available.
If the department does not create a list of resources pursuant to
subdivision (c) of Section 8206, the program or partnership may
develop local resources. These resources shall include, but are not
limited to, the following:

(1) Information regarding how to select services that meet the
needs of the parent and child.

(2) Information on licensing requirements and procedures for
begin delete child care end delete centers and family begin delete child end delete care homes.

(3) Trustline requirements for homes and providers exempt from
licensure.

(4) A range of possible early learning and educational support
options from which a parent may choose.

(5) Information on available care subsidies and eligibility
requirements.

(6) Quality indicators, including provider or educator training,
accreditation, staff stability, group size, ratio of children to staff,
environments that support the healthy development of children,
parent involvement, and communication between the parent and
provider.

(7) Information on quality rating and improvement systems,
where available.

(d) The program or partnership shall also provide parenting
information to parents.

SEC. 20.  

Section 8215 of the Education Code is amended to
read:

8215.  

(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 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 spaces
available and the quality of services offered.

(c) The Superintendent shall allocate all state funds appropriated
for the California Child Care Initiative Project for the purpose of
making grants to those 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 shall develop a database for the project.

SEC. 21.  

Section 8216 of the Education Code is amended to
read:

8216.  

When making referrals, every agency operating a
program providing early learning services or an alternative payment
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.

SEC. 22.  

Section 8220 of the Education Code is amended to
read:

8220.  

Upon the approval of the department, funds appropriated
for the 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 utilized. All
payment arrangements shall conform to the eligibility criteria and
the parent fee schedule established pursuant to Sections 8263 and
8265.

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

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

(b) Choices, whenever possible, among hours of service
including before and after school, evenings, weekends, and split
shifts.

(c)  begin delete (1) end delete begin delete   end delete Early learning and educational support services
according to parental choice, including use of family begin delete day end delete care
homes, 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 California
state preschool program services.

begin delete

(2) This subdivision shall be operative only to the extent that
an appropriation for its purposes is included in the annual Budget
Act and is consolidated into a single budget schedule or
subschedule.

end delete

SEC. 23.  

Section 8220.1 of the Education Code is amended to
read:

8220.1.  

(a) The department shall contract with local contracting
agencies for alternative payment programs 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 which 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
license-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.

(c) (1) On and after July 1, begin delete 2014, end delete begin insert 2015, end insert the Superintendent shall
streamline the delivery of alternative payment programs through
the consolidation of contracts that serve special populations,
including, but not limited to, migrant populations. Contractors
shall continue to serve the same populations specified in their
begin delete 2013-14 end delete begin insert 2014-15 end insert contracts, unless they receive prior approval
from the department.

(2) This subdivision shall be operative only to the extent that
an appropriation for its purposes is included in the annual Budget
Act and is consolidated into a single budget schedule or
subschedule.

SEC. 24.  

Section 8220.3 is added to the Education Code, to
read:

8220.3.  

Commencing with the begin delete 2014-15 end delete begin insert 2015-16 end insert fiscal year
and each fiscal year thereafter, alternative payment programs
serving only migrant populations pursuant to a begin delete 2013-14 end delete begin insert 2014-15 end insert
contract shall enroll only children of migrant agricultural worker
families, as defined in subdivision (a) of Section 8231, that move
from place to place for the purpose of agricultural work.

SEC. 25.  

Section 8220.5 of the Education Code is amended to
read:

8220.5.  

(a) 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 same rate that a private client is charged for
the same service as well as to provide locally designed support
services for parents and providers.

(b) Alternative payment programs shall provide professional
and technical assistance and information to providers.

SEC. 26.  

Section 8220.6 is added to the Education Code, to
read:

8220.6.  

(a) Information shall be provided to parents in the
county of service at the time the family is determined eligible for
services, and at recertification, by one of the following:

(1) An alternative payment program.

(2) A resource and referral program.

(3) A partnership between the alternative payment program and
the resource and referral program.

(b) The information provided by the program or partnership
shall be to assist parents 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 options and resources specified
in this subdivision. The program or partnership may utilize
resources from a list posted on the department’s Internet Web site
pursuant to subdivision (c) of Section 8206 if this list is available.
If the department does not create a list of resources pursuant to
subdivision (c) of Section 8206, the program or partnership may
develop local resources. These resources shall include, but are not
limited to, the following:

(1) Information regarding how to select services that meet the
needs of the parent and child.

(2) Information on licensing requirements and procedures for
begin delete child care end delete centers and family begin delete child end delete care homes.

(3) Trustline requirements for homes and providers exempt from
licensure.

(4) A range of possible early learning and educational support
options from which a parent may choose.

(5) Information on available care subsidies and eligibility
requirements.

(6) Quality indicators, including provider or educator training,
accreditation, staff stability, group size, ratio of children to staff,
environments that support the healthy development of children,
parent involvement, and communication between the parent and
provider.

(7) Information on quality rating and improvement systems,
where available.

(c) The program or partnership shall also provide parenting
information to parents.

SEC. 27.  

Section 8222 of the Education Code is amended to
read:

8222.  

(a) Payments made by alternative payment programs
shall not exceed the applicable market rate ceiling. Alternative
payment programs may expend more than the standard
reimbursement rate for a particular child. However, the aggregate
payments for services purchased by the agency during the contract
year shall not exceed the assigned reimbursable amount as
established by the contract for the year. An agency shall not make
payments in excess of the rate charged to full-cost families. This
section does not preclude alternative payment programs from using
the average daily enrollment adjustment factor for children with
exceptional needs as provided in Section 8265.5.

(b) Alternative payment programs shall reimburse licensed
providers in accordance with a biennial market rate survey pursuant
to Section 8447, at a rate not to exceed the ceilings established
pursuant to Section 8357.

(c) An alternative payment program 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.

(d) An alternative payment program shall maintain a copy of
the rate sheet and the confirmation statement.

(e) 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.

(f) Each licensed provider may alter rate levels for subsidized
children once per year and shall provide the alternative payment
program and resource and referral agency with the updated
information pursuant to subdivisions (c) and (e), to reflect any
changes.

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

(h) 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.

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

SEC. 28.  

Section 8223 of the Education Code is amended to
read:

8223.  

The reimbursement for alternative payment programs
shall include the cost of care paid to providers plus the
administrative and support services costs of the alternative payment
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.

SEC. 29.  

Section 8225 of the Education Code is amended to
read:

8225.  

When making referrals, every agency operating a
program providing early learning services or a resource and referral
program and an alternative payment 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.

SEC. 30.  

Section 8226 of the Education Code is amended to
read:

8226.  

(a) When making referrals, every program operating
pursuant to this article shall provide information to any person
who requests a referral of his or her right to view the licensing
information of a licensed begin delete child day care end delete 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 subdivision (a):

“State law requires licensed begin delete child day care end delete 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) 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 begin delete child day care end delete 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 begin delete child day care end delete 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) A program operating pursuant to this article shall, upon being
notified that a licensed begin delete child day care end delete 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 begin insert care end insert 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.

SEC. 31.  

Section 8227 of the Education Code is amended to
read:

8227.  

(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 begin delete child end delete 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 the 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 care, a contractor shall participate
in and use the centralized eligibility list.

(2) A contractor with a campus early learning and educational
support program operating pursuant to Section 66060, a program
operating on a seasonal basis providing services to a migrant
population pursuant to Section 8230, or a program serving severely
disabled children pursuant to subdivision (d) of Section 8250 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 early learning and educational support services.
A contractor or program described in this paragraph may utilize
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 8263.

SEC. 32.  

Article 5 (commencing with Section 8228) is added
to Chapter 2 of Part 6 of Division 1 of Title 1 of the Education
Code, to read:

 

Article 5.  Early Learning Services

 

8228.  

(a) The Superintendent shall administer early learning
and educational support programs through early learning services,
including, but not limited to, early learning programs pursuant to
Article begin delete 6 end delete begin insert 8 end insert (commencing with Section begin delete 8230) and Article 7
(commencing with Section 8235), end delete begin insert 8240), end insert family child care home
education networks pursuant to Article 8.5 (commencing with
Section 8245), and services for children pursuant to subdivision
(d) of Section 8250.

(b) Contractors providing early learning services pursuant to
this article shall comply with the administrative requirements set
forth in Article 10 (commencing with Section 8255).

8228.1.  

The Superintendent, with funds appropriated for this
purpose, shall administer programs through early learning services.
These programs shall include, but not be limited to, all of the
following:

(a) Age and developmentally appropriate activities for children.

(b) Supervision.

(c) Parenting education and parent begin delete engagement. end delete begin insert engagement
and involvement. end insert

(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.

SEC. 33.  

The heading of Article 6 (commencing with Section
8230) of Chapter 2 of Part 6 of Division 1 of Title 1 of the Education Code is amended to read:

 

Article 6.  Services for Migrant Populations

 

SEC. 34.  

Section 8230 of the Education Code is amended to
read:

8230.  

Contractors serving migrant populations shall comply
with the requirements set forth in this article. 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.

SEC. 35.  

Section 8231 of the Education Code is amended to
read:

8231.  

(a) For the purpose of this article, a “migrant agricultural
worker family” means a family that has earned at least 50 percent
of its total gross income from employment in fishing, agriculture,
or agriculturally related work during the 12-month period
immediately preceding the date of application for begin delete child care and
development end delete begin insert early learning and educational support end insert services.

(b) Children of migrant agricultural worker families shall be
enrolled in begin delete child development end delete begin insert early learning and educational
support end insert programs on the basis of the following priorities:

(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.

(4) Eligibility and priority for services for the federally funded
migrant child care and development program shall be in accordance
with the applicable federal regulations.

(c) This section shall remain in effect only until July 1, begin delete 2014, end delete
begin insert 2015, end insert and as of that date is repealed, unless a later enacted statute,
that is enacted before July 1, begin delete 2014, end delete begin insert 2015, end insert deletes or extends that
date.

SEC. 36.  

Section 8231 is added to the Education Code, to read:

8231.  

(a) For the purpose of this chapter, a “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.

(b) For purposes of this article, priority for enrollment shall be
given to children of migrant agricultural worker families 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.

(4) Eligibility and priority for services for the federally funded
migrant child care and development program shall be in accordance
with the applicable federal regulations.

(c) (1) If a contractor serving migrant populations, upon
prioritizing migrant families for enrollment and complying with
this section, is unable to reach the anticipated level of enrollment
as provided in the contract for services, the contractor may use
any funds remaining to enroll children from otherwise eligible
families pursuant to the priorities set forth in Section 8263.

(2) This subdivision shall be operative only to the extent that
an appropriation for its purposes is included in the annual Budget
Act and is consolidated into a single budget schedule or
subschedule.

(d) This section is operative on July 1, begin delete 2014. end delete begin insert 2015. end insert

SEC. 37.  

Section 8232 of the Education Code is amended to
read:

8232.  

The Superintendent shall develop appropriate quality
indicators for contractors that serve migrant populations, including
those prescribed in Section 8203, and 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 migrant populations.

(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 early learning 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
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.

SEC. 38.  

Section 8233 of the Education Code is amended to
read:

8233.  

(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 Chapter I federal funds
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 this
article for approvable startup and closedown costs. Reimbursement
for both startup and closedown costs shall not exceed 15 percent
of the 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.

SEC. 39.  

The heading of Article 7 (commencing with Section
8235) of Chapter 2 of Part 6 of Division 1 of Title 1 of the Education Code is amended to read:

 

Article 7.  California State Preschool Program Services

 

SEC. 40.  

Section 8235 of the Education Code is amended to
read:

8235.  

(a) Contractors providing California state preschool
program services for three-year-old children described in
subdivision begin delete (aj) end delete begin insert (ak) end insert of Section 8208, and four-year-old children,
as described in subdivision begin delete (ak) end delete begin insert (al) end insert of Section 8208, shall adhere
to the requirements set forth in Article 5 (commencing with Section
8228) in educational development, health services, social services,
nutritional services, parent education and parent participation,
evaluation, and staff development. These programs shall include,
but are not limited to, part-day age and developmentally appropriate
programs designed to facilitate the transition to kindergarten for
three- and four-year-old children.

(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).

(c) Three- and four-year-old children are eligible for part-day
California state preschool program services if the family meets at
least one of the criteria specified in paragraph (1) of subdivision
(a) of Section 8263.

(d) Notwithstanding any other law, a contractor providing
part-day California state preschool program services may provide
services to children in families whose income is no more than 15
percent above the income eligibility threshold, as described in
Sections 8263 and 8263.1, after all eligible three- and four-year-old
children have been enrolled. No more than 10 percent of children
enrolled, calculated throughout the participating program’s entire
contract, may be filled by children in families above the income
eligibility threshold.

(e) A part-day California state preschool program 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.

(f) Any agency described in subdivision (c) of Section 8208 as
an “applicant or contracting agency” is eligible to contract to
operate a California state preschool program.

(g) Part-day 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.

(h) Federal Head Start funds used to provide services to families
receiving California state preschool services shall be deemed
nonrestricted funds.

SEC. 41.  

Section 8236 of the Education Code is amended to
read:

8236.  

(a) (1) Contractors providing California state preschool
program services pursuant to this article 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 8263, after children in the first
priority category set forth in paragraph (1) are enrolled, each
agency funded pursuant to Section 8235 shall give priority 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 preschool services that
are operating with funding that was initially allocated in a prior
fiscal year, 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.

(c) The following provisions apply to the award of new funding
for the expansion of the California state preschool program services
that is appropriated by the Legislature for that purpose in any fiscal
year:

(1) In an application for those expansion funds, an agency shall
furnish the Superintendent with an estimate of the number of
four-year-old and three-year-old 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.

(2) In awarding contracts for expansion pursuant to this
subdivision, the Superintendent, after taking into account the
geographic criteria established pursuant to Section 8279.3, and the
headquarters preferences and eligibility criteria relating to fiscal
or programmatic noncompliance established pursuant to Section
8261, shall give priority to applicant agencies that, in expending
the expansion funds, will be serving the highest percentage of
four-year-old children.

(d) 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.

(e) 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.

SEC. 42.  

Section 8236.1 of the Education Code is amended to
read:

8236.1.  

The department shall annually monitor funding used
in early learning programs for infants and toddlers, and hours of
service provided in California state preschool program 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 8239. The annual report
shall include a comparison to the prior year on a county-by-county
basis.

SEC. 43.  

Section 8238.4 of the Education Code is amended to
read:

8238.4.  

(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 contractors providing
California state preschool program services 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 contractors providing
California state preschool program services 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 program services in the annual Budget
Act or other statute.

SEC. 44.  

Section 8239 of the Education Code is amended to
read:

8239.  

The Superintendent shall encourage state preschool
program applicants or contracting agencies to offer full-day
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
specified a lower minimum days of operation. Wraparound services
may operate a full day for the remainder of the year after the
completion of the part-day preschool program services. Services
shall be provided in accordance with Article 1 (commencing with
Section 8200) and Article 5 (commencing with Section 8228).

(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
8265 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 preschool services if the family
meets the eligibility criteria specified in paragraph (1) of
subdivision (a) of Section 8263, and the parents meet at least one
of the criteria specified in paragraph (2) of subdivision (a) of
Section 8263.

(e) Fees shall be assessed and collected for families with children
in part-day preschool programs, or families receiving wraparound
services, or both, pursuant to Article 11.5 (commencing with
Section 8273).

(f) The Superintendent shall annually report to the Department
of Finance, on or before October 1 of each year, the fees collected
from families who have children enrolled in the California state
preschool program. The report shall distinguish between family
fees collected for part-day preschool programs and fees collected
for wraparound begin delete child care end delete services.

(g) For purposes of this section, “wraparound services” means
early learning services provided with additional funding that would
extend the part-day California state preschool program services
provided pursuant to subdivision (a) to meet families’ needs for
begin delete services end delete begin insert care end insert while parents participate in an approved work or
work-related activity. These services shall be provided consistent
with the early learning and educational support programs provided
pursuant to Article 1 (commencing with Section 8200) and Article
5 (commencing with Section 8228).

SEC. 45.  

The heading of Article 8 (commencing with Section
8240) of Chapter 2 of Part 6 of Division 1 of Title 1 of the Education Code is amended to read:

 

Article 8.  Early Learning Programs

 

SEC. 46.  

Section 8240 of the Education Code is amended to
read:

8240.  

(a) The Superintendent, with funds appropriated for this
purpose, shall administer general early learning and educational
support programs.

General early learning and educational support programs shall
include:

(1) Age and developmentally appropriate activities for children.

(2) Supervision.

(3) Parenting education and parent begin delete involvement. end delete begin insert involvement
and engagement. end insert

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

(5) Health services.

(6) Nutrition.

(7) Training and career ladder opportunities, documentation of
which shall be provided to the department.

(b) This section shall become inoperative on July 1, begin delete 2014, end delete begin insert 2015, end insert
and, as of January 1, begin delete 2015, end delete begin insert 2016, end insert is repealed, unless a later enacted
statute that is enacted before January 1, begin delete 2015, end delete begin insert 2016, end insert deletes or
extends the dates on which it becomes inoperative and is repealed.

SEC. 47.  

Section 8240 is added to the Education Code, to read:

8240.  

(a) Early learning programs shall serve children from
birth to 13 years of age, including, but not limited to, services
begin insert pursuant to Article 5 (commencing with Section 8228) end insert for all of
the following:

(1) Infants and toddlers.

(2) Preschool age children.

(3) Schoolage children.

(4) Migrant children.

(b) The Superintendent shall streamline the delivery of early
learning programs through the consolidation of contracts that serve
children described in subdivision (a). This shall include, but is not
limited to, services for both of the following special populations:

(1) Preschool age children.

(2) Migrant children.

(c) Contractors shall continue to serve the same populations
specified in their begin delete 2013-14 end delete begin insert 2014-15 end insert contracts, unless they receive
prior approval from the department.

(d) Contractors that provide services to migrant populations
shall comply with Article 6 (commencing with Section 8230).

(e) Contractors that provide services to California state preschool
program populations shall comply with Article 7 (commencing
with Section 8235).

(f) Subdivisions (b) and (c) shall be operative only to the extent
that an appropriation for its purposes is included in the annual
Budget Act and is consolidated into a single budget schedule or
subschedule.

(g) This section shall become operative on July 1, begin delete 2014. end delete begin insert 2015. end insert

SEC. 48.  

Section 8244 of the Education Code is amended to
read:

8244.  

(a) (1) Any entity operating programs funded pursuant
to this chapter that provide early learning 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.

(2) Programs providing direct services to children, for the
purposes of this section, are early learning services pursuant to
Article 5 (commencing with Section 8228), migrant services
pursuant to Article 6 (commencing with Section 8230), California
state preschool programs pursuant to Article 7 (commencing with
Section 8235), early learning services for children pursuant to
subdivision (d) of Section 8250, infant care and development
services programs pursuant to Article 17 (commencing with Section
8390), and any of these programs operated through family child
care homes.

(b) (1) For purposes of this section, the following definitions
shall apply:

(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 the knowledge and authority to direct or modify
administrative practices and procedures to ensure compliance to
administrative and financial standards imposed by law.

(B) “Program director” means a person who, regardless of his
or her title, has programmatic and administrative responsibility
for an early learning and educational support program that provides
direct services to children at two or more sites.

(C) “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.

(2) Administrative and programmatic responsibility also includes
the responsibility to act as the representative for the early learning
and educational support program to the department. With respect
to programs operated through family begin delete child end delete care homes,
administrative and programmatic responsibility includes ensuring
that quality services are provided in the family begin delete child end delete care homes.

(c) 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 begin delete day end delete begin insert child end insert 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 begin delete (ab) end delete
begin insert (ac) end insert of Section 8208.

(d) The Superintendent may waive the qualifications for program
director described in Sections 8360.1 and 8360.3 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 an early learning and
educational support program operating in two or more sites or
fulfilling the qualifications for program directors in programs
serving severely disabled children, as specified in Section 8360.3.

(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.

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

SEC. 49.  

The heading of Article 9 (commencing with Section
8250) of Chapter 2 of Part 6 of Division 1 of Title 1 of the Education Code is amended to read:

 

Article 9.  Services for Children with Special Needs

 

SEC. 50.  

Section 8250 of the Education Code is amended to
read:

8250.  

(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 utilize 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 begin delete (z) end delete
begin insert (aa) end insert 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.

SEC. 51.  

Section 8250.5 of the Education Code is amended to
read:

8250.5.  

A contractor providing services pursuant to an early
learning services contract or an alternative payment contract is
subject to the requirements of the federal Americans with
Disabilities Act (42 U.S.C. Sec. 12101 et seq.).

SEC. 52.  

Section 8251 of the Education Code is amended to
read:

8251.  

(a) All contractors administering early learning services
shall include plans or programs, or both, for the care of the 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 effective
sick child care models to all early learning and educational support
programs.

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

SEC. 53.  

Section 8252 of the Education Code is amended to
read:

8252.  

(a) The department and the local county welfare
department shall enter into contracts that establish the procedures
for serving and referring a child in need of care as part of the
provision of protective services pursuant to Chapter 5 (commencing
with Section 16500) of Part 4 of Division 9 of the Welfare and
Institutions Code. The department, in consultation with the State
Department of Social Services, may contract with another
appropriate community agency that provides services or referrals,
or both, for the prevention or intervention of child abuse or neglect
if no such contract for begin delete child end delete care services exists between the
department and the county welfare department.

(b) The contracts shall specify the resource and referral program
or operating agency or agencies providing early learning and
educational support pursuant to this chapter in the county that the
local contracting agency shall contact to secure care for a child
needing protective services. If an operating agency is unable to
enroll the child, the local contracting agency described in
subdivision (a) with the assistance of the providers of local
resources and referral services shall locate services for the family.
Payments for these located services in the absence of other funds
shall be made by the local contracting agency.

(c) The need for services funded pursuant to this section shall
be reviewed by the local contracting agency no less than every
three months.

SEC. 54.  

Section 8255 of the Education Code is amended to
read:

8255.  

(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 develop clear, consistent, and
appropriate regulations for early learning and educational support
programs to replace policy guidelines that are not subject to the
public hearing process, often inconsistent, and without the force
of law.

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

(3) That better 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 delete

SEC. 55.  

Section 8257 of the Education Code is amended to
read:

8257.  

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

(a) Apply sanctions against contracting agencies that have
serious licensing violations, as defined and reported by the State
Department of Social Services pursuant to Section 1544 of the
Health and Safety Code.

(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 Article 18
(commencing with Section 8400), 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.

end delete

begin insert

begin insert SEC. 55. end insert   

end insert

begin insert Section 8257 of the end insert begin insert Education Code end insert begin insert is amended to
read: end insert

8257.  

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 pursuant to Section 1597.11 of the
Health and Safety Code.

(b) Except in the case of immediate terminations taken pursuant
to Sections 8406.7 or 8406.9, provide 90 days’ written notification
to any contractor whose agreement is being terminated.
Notwithstanding Article 18 (commencing with Section 8400), 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 begin delete child care and development end delete
begin insert early learning and educational support end insert programs to ensure
compliance with the terms of the receivership.

SEC. 56.  

Section 8258 of the Education Code is amended to
read:

8258.  

(a) A person employed by the department in a
policymaking position in the area of early learning and educational
support programs shall not serve as a member of the board of
directors, advisory council, or advisory committee for any agency
receiving funds pursuant to this chapter.

(b) A retired, dismissed, separated, or formerly employed person
of the department employed under the State Civil Service Act or
otherwise appointed to serve in the department shall not enter into
a contract pursuant to Section 8262 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, a person
employed under state civil service or otherwise appointed to serve
in the department shall not enter into a contract pursuant to Section
8262 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, begin delete no end delete begin insert a end insert person
employed under state civil service or otherwise appointed to serve
in the department begin delete may end delete begin insert shall not end insert be employed by a contractor
pursuant to Section 8262 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.

SEC. 57.  

Section 8261 of the Education Code is amended to
read:

8261.  

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

(1) Provide clear guidelines for the selection of agencies when
early learning and educational support contracts are let.

(2) Provide for a contract monitoring system to ensure that
agencies expend funds received pursuant to this chapter in
accordance with the provisions 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
and Human Services, Assembly Education, and Assembly Human
Services Committees on the number of visits conducted during
the previous fiscal year pursuant to this paragraph.

(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 early learning and educational support
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) (1) 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.

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

SEC. 58.  

Section 8261.5 of the Education Code is amended to
read:

8261.5.  

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.

SEC. 59.  

Section 8262 of the Education Code is amended to
read:

8262.  

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. Before entering
into or executing a local agreement, the department shall obtain
annual approval from the Department of General Services and the
Department of Finance as to the form and general content thereof.
The agreements may only be made for the delivery of early learning
and educational support services, or the furnishing of property,
facilities, personnel, supplies, equipment, or administrative services
related thereto, which conform with the provisions of this chapter.

SEC. 60.  

Section 8263 of the Education Code is amended to
read:

8263.  

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

(1) A family is (A) a current aid recipient, (B) income eligible,
(C) homeless, or (D) 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.

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

(b) Except as provided in Article 15.5 (commencing with Section
8350), priority for federal and state subsidized early learning and
educational support services is as follows:

(1) (A) 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.

(B) A family who is receiving begin delete child end delete care on the basis of being
a child at risk of abuse, neglect, or exploitation, as defined in
subdivision begin delete (i) end delete begin insert (j) end insert of Section 8208, is eligible to receive services
pursuant to subparagraph (A) for up to three months, unless the
family becomes eligible pursuant to subparagraph (C).

(C) A family may receive begin delete child end delete 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 begin delete child end delete care and remains otherwise eligible. This
time limit does not apply if the family’s begin delete child end delete care referral is
recertified by the county child welfare agency.

(2) 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.

(3) 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.

(c) Notwithstanding any other law, in order to promote
continuity of services, a family enrolled in a state or federally
funded early learning and educational support program whose
services would otherwise be terminated because the family no
longer meets the program income, eligibility, or need criteria may
continue to receive services in another state or federally funded
early learning and educational support 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 early
learning and educational support programs.

(d) 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.

(e) A physical examination and evaluation, including
age-appropriate immunization, 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.

(f) 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.

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

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

(i) 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.

SEC. 61.  

Section 8263.2 of the Education Code is amended to
read:

8263.2.  

(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 an
underserved area, as defined in subdivision begin delete (ah) end delete begin insert (ai) end insert 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 services, consistent
with the priorities for services specified in subdivision (b) of
Section 8263. 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 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.

SEC. 62.  

Section 8263.3 of the Education Code is amended to
read:

8263.3.  

(a) Notwithstanding any other law, and in addition to
any reductions applied pursuant to Section 8263.2, 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 an
underserved area, as defined in subdivision begin delete (ah) end delete begin insert (ai) end insert 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 services, consistent
with the priorities for services specified in subdivision (b) of
Section 8263. 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 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.

SEC. 63.  

Section 8263.4 of the Education Code is amended to
read:

8263.4.  

(a) The preferred placement for children who are 11
or 12 years of age and who are otherwise eligible for subsidized
early learning and educational 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 begin insert early learning and educational support end insert 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 11- or 12-year-old child 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 begin insert early learning and educational
support end insert services, and for whom a before or after school program
is not available, shall continue to receive subsidized begin insert early learning
and educational support end insert 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 an 11- or 12-year-old child who is enrolled in a subsidized
early learning and educational support program becomes ineligible
for subsidized begin delete care end delete begin insert early learning and educational support
programs end insert 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 begin delete services end delete begin insert program end insert upon the parent’s notification of the
contractor of the need for begin delete child end delete care.

(f) This section does not apply to an 11- or 12-year-old child
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 this section by Chapter 78
of the Statutes of 2005 shall remain with each early learning and
educational support begin delete services end delete begin insert program end insert contractor for the provision
of services, except for care provided by programs pursuant to
Article 15.5 (commencing with Section 8350). 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.

SEC. 64.  

Section 8264 of the Education Code is amended to
read:

8264.  

By July 1, 1981, and annually thereafter, the State
Department of Health Care Services shall 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.

SEC. 65.  

Section 8264.5 of the Education Code is amended to
read:

8264.5.  

The Superintendent may waive or modify requirements
in order to enable contractors administering early learning services
to serve combinations of eligible children in areas of low
population. The programs for which the Superintendent may grant
waivers shall include, but need not be limited to, California state
preschool full-day program services, services 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 and toddler services, migrant services,
and early learning programs operating pursuant to Article 8
(commencing with Section 8240).

SEC. 66.  

Section 8264.6 of the Education Code is amended to
read:

8264.6.  

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 specific service
needs, including infants and toddlers under three years of age.

SEC. 67.  

Section 8264.7 of the Education Code is amended to
read:

8264.7.  

(a) The Superintendent shall establish rules and
regulations for the staffing of all early learning services under
contract with the department.

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

(c) For purposes of staffing early learning services, 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.

SEC. 68.  

Section 8264.8 of the Education Code is repealed.

SEC. 69.  

Section 8264.8 is added to the Education Code, to
read:

8264.8.  

(a) Early learning and educational support programs
shall maintain at least the following minimum ratios in all early
learning services except for family child care home education
networks operating pursuant to Article 8.5 (commencing with
Section 8245):

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

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

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

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

(b) Compliance with the ratios established by subdivision (a)
shall be determined based on actual attendance.

SEC. 70.  

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) 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 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. Agencies funded at the lowest rates shall be given first
priority for increases.

(e) The plan shall provide for expansion of early learning
services 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.

SEC. 71.  

Section 8266 of the Education Code is amended to
read:

8266.  

(a) Notwithstanding Section 8265, the assigned
reimbursement rate of an early learning program (1) contracting
with the department, (2) operating under licensing standards for
begin delete child care and development end delete facilities specified begin delete by Section 1500 et
seq. end delete begin insert in Chapter 3 (commencing with Section 1500) of Division 2 end insert
of the Health and Safety Code and by Title 22 of the California
Code of Regulations, and (3) 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.

(b) It 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 8265.

(c) An agency subject to this section 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.

SEC. 72.  

Section 8266.1 of the Education Code is amended to
read:

8266.1.  

Commencing with the 1995-96 fiscal year and each
fiscal year thereafter, for the purposes of this chapter,
reimbursement rates shall be adjusted by the following
reimbursement factors for early learning services with a standard
reimbursement rate, but shall not apply to the resource and referral
programs set forth in Article 2 (commencing with Section 8210),
the alternative payment programs set forth in Article 3
(commencing with Section 8220), or the part-day California state
preschool programs set forth in Article 7 (commencing with
Section 8235).

(a) For early learning services serving children for less than
four hours per day, the reimbursement factor is 55 percent of the
standard reimbursement rate.

(b) For early learning services 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.

(c) For early learning services serving children for not less than
six and one-half hours per day, and less than 101⁄2 hours per day,
the reimbursement factor is 100 percent of the standard
reimbursement rate.

(d) For early learning services serving children for 101⁄2 hours
or more per day, the reimbursement factor is 118 percent of the
standard reimbursement rate.

SEC. 73.  

Section 8272 of the Education Code is amended to
read:

8272.  

(a) The rules, regulations, and guidelines adopted by
the Superintendent pursuant to Sections 8261 and 8269 shall permit
reimbursement for interest paid by contractors on private sector
debt financing for the purchase, lease-purchase, repair, or
renovation of early learning and educational support facilities
owned or leased by contractors providing early learning and
educational support services.

(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 services program. 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.

SEC. 74.  

Section 8275 of the Education Code is amended to
read:

8275.  

(a) The Superintendent may reimburse approvable
startup costs of 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 early
learning and educational support programs.

SEC. 75.  

Section 8276.7 of the Education Code is amended to
read:

8276.7.  

Unless specifically exempted by the Legislature, the
administrative cost for all state-funded early learning and
educational support 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.

SEC. 76.  

Section 8277 of the Education Code is amended to
read:

8277.  

(a) The Superintendent shall establish regulations for
the allocation of capital outlay funds provided pursuant to Sections
8277.1 to 8277.4, inclusive, to benefit children most needing early
learning and educational support 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 begin delete child care and development end delete facilities. This
capital outlay funding shall be used solely for purposes of
renovation and repair of existing buildings.

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

SEC. 77.  

Section 8277.8 of the Education Code is amended to
read:

8277.8.  

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

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

SEC. 78.  

Section 8278.3 of the Education Code is amended to
read:

8278.3.  

(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 early learning and educational
support services and for the purchase of new relocatable begin delete child care end delete
facilities for lease to school districts and contracting agencies that
provide early learning and educational support services pursuant
to this chapter. The Superintendent may transfer state funds
appropriated for begin delete child care end delete 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
services 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.

SEC. 79.  

Section 8279.1 of the Education Code is amended to
read:

8279.1.  

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

(b) The Superintendent shall ensure each county’s compliance
with Section 8279 by not issuing funds to a local contractor within
a county until the Superintendent has received written certification
from that county that the level of expenditure for 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
contractor shall not adversely affect the reimbursement received
by the agency from the Superintendent pursuant to Section 8265,
8265.5, or 8266.

SEC. 80.  

Section 8279.3 of the Education Code is amended to
read:

8279.3.  

(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 these
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 begin delete (ah) end delete begin insert (ai) end insert of Section
8208 and direct impact indicators of need for early learning and
educational support 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 8499.5 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).

SEC. 81.  

Section 8279.4 of the Education Code is amended to
read:

8279.4.  

The Legislature finds and declares the following:

(a) There is a serious shortage of quality begin delete child day care end delete 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
begin delete child day care end delete facilities by assisting communities and interested
government and private entities to finance begin delete child day care end delete 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 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 begin delete child day care end delete
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.

SEC. 82.  

Section 8279.5 of the Education Code is amended to
read:

8279.5.  

(a) The Superintendent 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 early learning and
educational support field, and have the ability to develop and
implement a plan to increase the availability of financing to
renovate, expand, and construct begin delete child day care end delete facilities, both in
centers and family begin delete child end delete care homes.

(b) The financial intermediary selected by the Superintendent
shall undertake activities designed to increase funds available from
the private and public sectors for the financing of begin delete child day care end delete
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 begin delete child day care end delete 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.

SEC. 83.  

Section 8279.7 of the Education Code is amended to
read:

8279.7.  

(a) The Legislature recognizes the importance of
providing high-quality early learning and educational support
services. It is, therefore, the intent of the Legislature to assist
counties in improving the retention and professional growth of
qualified instructional employees who work directly with children
who receive state-subsidized early learning 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 care in
nonstate-funded begin delete child end delete 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 planning councils based on the percentage of
state-subsidized, early learning services funds received in that
county, and shall be used to address the retention of qualified
instructional employees in state-subsidized 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 and professional growth of qualified
persons working in licensed begin insert facilities providing end insert early learning begin delete and
educational support programs end delete begin insert services end insert and that serve a majority
of children who receive subsidized early learning 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 employees in state-subsidized centers and family child
care home education networks.

(d) The department shall develop guidelines for use by local
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 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 before the
allocation of funds to the local planning council.

(e) Funds provided to a county for the 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.

SEC. 84.  

Section 8282 of the Education Code is amended to
read:

8282.  

(a) The Legislature finds and declares that the state
makes a substantial, annual investment in preschool, infant and
toddler, and schoolage early learning begin delete and educational support
programs end delete begin insert services end insert 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, 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
begin delete California state end delete preschool program 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.

SEC. 85.  

Section 8320 of the Education Code is amended to
read:

8320.  

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 early learning
and educational support programs upon the approval of, and subject
to the regulations of the Superintendent.

SEC. 86.  

Section 8321 of the Education Code is amended to
read:

8321.  

(a) The county superintendent of schools in each county,
with the approval of the county board of education and the
Superintendent, shall have the authority to establish and maintain
early learning services 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 early learning services.

(b) The establishment and maintenance of any early learning
services by the county superintendent of schools shall be
undertaken, subject to the prior approval of both the county board
of education and the Superintendent, upon the application of one
or more school districts under his or her jurisdiction.

SEC. 87.  

Section 8324 of the Education Code is amended to
read:

8324.  

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

SEC. 88.  

Section 8327 of the Education Code is amended to
read:

8327.  

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 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 the agreements.

SEC. 89.  

Section 8328 of the Education Code is amended to
read:

8328.  

(a) The governing board of any school district or the
county superintendent of schools 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, early learning and educational support
services under this chapter. The costs incurred in the maintenance
and operation of 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 of the district, in addition to state moneys appropriated
for the support of services, fees, and federal funds, may be
expended for, or in connection with these services.

SEC. 90.  

Section 8329 of the Education Code is amended to
read:

8329.  

The governing board of any school district maintaining
an early learning and educational support program may include in
its budget the amount necessary to initiate, operate, and maintain
a 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.

SEC. 91.  

The heading of Article 15.2 (commencing with
Section 8335) of Chapter 2 of Part 6 of Division 1 of Title 1 of the Education Code is amended to read:

 

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

 

begin delete

SEC. 92.  

Section 8335.1 of the Education Code is amended to
read:

8335.1.  

Before implementing the local subsidy plan, the City
and County of San Francisco, in consultation with the department,
shall develop an individualized county 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 care system. The assessment shall examine whether
the current structure of subsidized care funding adequately supports
working families in the city and county and whether the city and
county’s goals coincide with the state’s requirements for funding,
eligibility, priority, and reimbursement. The assessment shall also
identify barriers in the state’s subsidy system that inhibit the city
and county from meeting its 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
care, including employment, income, language, ethnic, and family
composition.

(2) The current supply of available subsidized care.

(3) The level of need for various types of subsidized 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 care.

(6) Family fees.

(7) The cost of providing care.

(8) The regional market rates, as established by the department,
for different types of 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 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
subdivision (f) of Section 8263 for those families that are income
eligible, as defined by Section 8263.1.

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

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

(E) (i) Authorize any agency that provides early learning and
educational support 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 subsidy plan is approved pursuant to
subdivision (b) of Section 8335.3, or modified pursuant to
subdivision (c) of Section 8335.3.

(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 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, multiplied by 2
percent.

(3) The local policy may supersede state law concerning 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 care pursuant to Section 8353. Under the local
policy, a family that qualifies for care pursuant to Section 8354
shall be treated for purposes of eligibility and fees in the same
manner as a family that qualifies for subsidized 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 8263.1.

(C) Reimbursement rates.

(D) Methods of maximizing the efficient use of subsidy funds,
including, but not limited to, multiyear contracting with the
department for early learning services, 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 early learning and educational support
services in the city and county are eligible to be included in the
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 goals and to
overcome any barriers identified in the state’s 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 planning council for approval
pursuant to Section 8335.3.

SEC. 93.  

Section 8335.5 of the Education Code is amended to
read:

8335.5.  

The City and County of San Francisco may implement
an individualized subsidy plan until July 1, 2015, at which date
the city and county shall terminate the plan. Between July 1, 2015,
and July 1, 2017, the city and county shall phase out the
individualized county subsidy plan and, as of July 1, 2017, shall
implement the state’s requirements for subsidies. A child enrolling
for the first time for subsidized care in the city and county after
July 1, 2015, shall not be enrolled in the pilot program established
pursuant to this article and is subject to existing state laws and
regulations regarding eligibility and priority.

end delete begin delete

SEC. 94.  

The heading of Article 15.3 (commencing with
Section 8340) of Chapter 2 of Part 6 of Division 1 of Title 1 of the Education Code is amended to read:

 

Article 15.3.  Individualized County Subsidy Plan

 

SEC. 95.  

Section 8341 of the Education Code is amended to
read:

8341.  

Before implementing the local subsidy plan, the County
of San Mateo, in consultation with the department, shall develop
an individualized county subsidy plan that includes the following
four elements:

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

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

(2) The current supply of available subsidized care.

(3) The level of need for various types of subsidized 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 care.

(6) Family fees.

(7) The cost of providing care.

(8) The regional market rates, as established by the department,
for different types of 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 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
subdivision (f) of Section 8263 for those families that are income
eligible, as defined by Section 8263.1.

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

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

(E) (i) Authorize any agency that provides early learning and
educational support 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 subsidy plan is approved pursuant to
subdivision (b) of Section 8342, or modified pursuant to
subdivision (c) of Section 8342.

(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 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, multiplied by 2
percent.

(3) The local policy may supersede state law concerning 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 care pursuant to Section 8353. Under the local
policy, a family that qualifies for care pursuant to Section 8354
shall be treated for purposes of eligibility and fees in the same
manner as a family that qualifies for subsidized 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 8263.1.

(C) Reimbursement rates.

(D) Methods of maximizing the efficient use of subsidy funds,
including, but not limited to, multiyear contracting with the
department for early learning services, 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 early learning and educational support
services in San Mateo County are eligible to be included in the
subsidy plan of the county.

(d) Establishment of measurable outcomes to evaluate the
success of the plan to achieve the county’s goals and to overcome
any barriers identified in the state’s 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 planning council for approval pursuant
to Section 8342.

SEC. 96.  

Section 8341.5 of the Education Code is amended to
read:

8341.5.  

To ensure that the annual and final reports required
pursuant to Section 8343 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 subsidy plan of the county before the
plan is submitted to the local planning council for approval.

SEC. 97.  

Section 8342 of the Education Code is amended to
read:

8342.  

(a) The plan shall be submitted to the local planning
council for approval. Upon approval of the plan by the local
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.

SEC. 98.  

Section 8343 of the Education Code is amended to
read:

8343.  

(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 State 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 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 State Department
of Social Services, and the department summarizing the impact of
the plan on the care needs of working families.

SEC. 99.  

Section 8344 of the Education Code is amended to read:

8344.  

The County of San Mateo may implement its
individualized county subsidy plan until January 1, 2015, at which
date the County of San Mateo shall terminate the plan. Between
January 1, 2015, and January 1, 2017, the County of San Mateo
shall phase out the individualized county subsidy plan and, as of
January 1, 2017, shall implement the state’s requirements for
subsidies. A child enrolling for the first time for subsidized care
in San Mateo County after January 1, 2015, shall not be enrolled
in the pilot program established pursuant to this article and is
subject to existing state laws and regulations regarding care
eligibility and priority.

end delete

begin insert

begin insert SEC. 92. end insert   

end insert

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

8335.1.  

Before implementing the local subsidy plan, the City
and County of San Francisco, in consultation with the department,
shall develop an individualized county begin delete child end delete 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 begin delete child end delete care system. The assessment shall examine
whether the current structure of subsidized begin delete child end delete care funding
adequately supports working families in the city and county and
whether the city and county’s begin delete child end delete care goals coincide with the
state’s requirements for funding, eligibility, priority, and
reimbursement. The assessment shall also identify barriers in the
state’s begin delete child end delete care subsidy system that inhibit the city and county
from meeting its begin delete child end delete 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
begin delete child end delete care, including employment, income, language, ethnic, and
family composition.

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

(3) The level of need for various types of subsidized begin delete child end delete care
begin delete services end delete including, but not limited to, infant begin insert and toddler end insert 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 begin delete child end delete care.

(6) Family fees.

(7) The cost of providing begin delete child end delete care.

(8) The regional market rates, as established by the department,
for different types of begin delete child end delete 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 begin delete child end delete 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
subdivision (f) of Section 8263 for those families that are income
eligible, as defined by Section 8263.1.

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

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

(E) (i) Authorize any agency that provides begin delete child care and
development end delete begin insert early learning and educational support end insert 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 begin delete child end delete care subsidy plan is approved pursuant
to subdivision (b) of Section 8335.3, or modified pursuant to
subdivision (c) of Section 8335.3.

(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 begin delete child end delete 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, begin delete times end delete begin insert multiplied by end insert
2 percent.

(C) The amount of the increase shall also be proportional to the
total contract maximum reimbursable amount to reflect the changes
in the budget allocation for each fiscal year of the pilot project.

(3) The local policy may supersede state law concerning begin delete child end delete
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 begin delete child end delete care pursuant to Section 8353. Under the
local policy, a family that qualifies for begin delete child end delete care pursuant to
Section 8354 shall be treated for purposes of eligibility and fees
in the same manner as a family that qualifies for subsidized begin delete child end delete
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 8263.1.

(C) Reimbursement rates.

(D) Methods of maximizing the efficient use of subsidy funds,
including, but not limited to, multiyear contracting with the
department for begin delete center-based child care, end delete begin insert early learning services, end insert
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 begin delete child care and development end delete begin insert early learning
and educational support end insert services in the city and county are eligible
to be included in the begin delete child end delete 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 begin delete child end delete care goals
and to overcome any barriers identified in the state’s begin delete child end delete 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 begin delete child
care end delete planning council for approval pursuant to Section 8335.3.

begin insert

begin insert SEC. 93. end insert   

end insert

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

8335.5.  

The City and County of San Francisco may implement
an individualized county begin delete child end delete care subsidy plan as a pilot project
pursuant to this article until July 1, 2016, at which date the city
and county shall terminate the plan. From July 1, 2016, to July 1,
2018, inclusive, the city and county shall phase out the
individualized county begin delete child end delete care subsidy plan and, beginning July
1, 2018, shall implement the state’s requirements for begin delete child end delete care
subsidies. A child enrolling for the first time for subsidized begin delete child end delete
care in the city and county on and after July 1, 2016, shall not be
enrolled in the pilot project established pursuant to this article, and
is subject to existing state laws and regulations regarding begin delete child
care end delete eligibility and priority.

begin insert

begin insert SEC. 94. end insert   

end insert

begin insert The heading of Article 15.4 (commencing with Section
8347) 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 to read: end insert

 

Article 15.4.  Individualized County begin delete Child end delete Care Subsidy Plan

 

begin insert

begin insert SEC. 95. end insert   

end insert

begin insert Section 8347 of the end insert begin insert Education Code end insert begin insert is amended to
read: end insert

8347.  

On and after July 1, 2014, the individualized county
begin delete child end delete care subsidy plan for the County of San Mateo that was
developed as a pilot project pursuant to Article 15.3 (commencing
with Section 8340), as that article read on January 1, 2013, may
continue in existence and may be implemented in accordance with
the provisions of this article. The plan shall ensure that begin delete child end delete care
subsidies received by the County of San Mateo are used to address
local needs, conditions, and priorities of working families in those
communities.

begin insert

begin insert SEC. 96. end insert   

end insert

begin insert Section 8347.2 of the end insert begin insert Education Code end insert begin insert is amended to
read: end insert

8347.2.  

For purposes of this article, “plan” means an
individualized county begin delete child end delete care subsidy plan developed and
approved under the pilot project described in Section 8347, which
includes all of the following:

(a) An assessment to identify the county’s goal for its subsidized
begin delete child end delete care system. The assessment shall examine whether the
current structure of subsidized begin delete child end delete care funding adequately
supports working families in the county and whether the county’s
begin delete child end delete care goals coincide with the state’s requirements for funding,
eligibility, priority, and reimbursement. The assessment shall also
identify barriers in the state’s begin delete child end delete care subsidy system that inhibit
the county from meeting its begin delete child end delete 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
begin delete child end delete care, including employment, income, language, ethnic, and
family composition.

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

(3) The level of need for various types of subsidized begin delete child end delete 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 begin delete child end delete care.

(6) Family fees.

(7) The cost of providing begin delete child end delete care.

(8) The regional market rates, as established by the department,
for different types of begin delete child end delete 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) (1) Development of a local policy to eliminate state-imposed
regulatory barriers to the county’s achievement of its desired
outcomes for subsidized begin delete child end delete care.

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

(A) Prioritize lowest income families first.

(B) Follow the family fee schedule established pursuant to
subdivision (g) of Section 8263 for those families that are income
eligible, as defined by Section 8263.1.

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

(D) Identify existing policies that would be affected by the
county’s plan.

(E) (i) Authorize any agency that provides begin delete child care and
development end delete begin insert early learning and educational support end insert services in
the county through a contract with the department to apply to the
department to amend existing contracts in order to benefit from
the local policy.

(ii) The department shall approve an application to amend an
existing contract if the plan is modified pursuant to Section 8347.3.

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

(3) The local policy may supersede state law concerning begin delete child end delete
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 begin delete child end delete care pursuant to Section 8353. Under the
local policy, a family that qualifies for begin delete child end delete care pursuant to
Section 8354 shall be treated for purposes of eligibility and fees
in the same manner as a family that qualifies for subsidized begin delete child end delete
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 8263.1.

(C) Reimbursement rates.

(D) Methods of maximizing the efficient use of subsidy funds,
including, but not limited to, multiyear contracting with the
department for begin delete center-based child care, end delete begin insert early learning services, end insert
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 begin delete child care and development end delete begin insert early learning
and educational support end insert services in the county are eligible to be
included in the county’s plan.

(d) Establishment of measurable outcomes to evaluate the
success of the plan to achieve the county’s begin delete child end delete care goals, and
to overcome any barriers identified in the state’s begin delete child end delete care subsidy
system.

begin insert

begin insert SEC. 97. end insert   

end insert

begin insert Section 8347.3 of the end insert begin insert Education Code end insert begin insert is amended to
read: end insert

8347.3.  

(a) Within 30 days of receiving any modification to
the plan, the begin delete Child Development end delete begin insert Early Education and Support end insert
Division shall review and either approve or disapprove that
modification to the plan.

(b) The begin delete Child Development end delete begin insert Early Education and Support end insert
Division may disapprove only those portions of 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. 98. end insert   

end insert

begin insert Section 8347.4 of the end insert begin insert Education Code end insert begin insert is amended to
read: end insert

8347.4.  

(a) The county 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 county’s
plan, and the county’s ability to maximize the use of funds and to
improve and stabilize begin delete child end delete care in the county.

(b) (1) The requirement for submitting a report imposed under
subdivision (a) is inoperative on January 1, 2018, pursuant to
Section 10231.5 of the Government Code.

(2) A report to be submitted pursuant to subdivision (a) shall
be submitted in compliance with Section 9795 of the Government
Code.

begin delete SEC. 100. end delete
begin insert SEC. 99. end 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 Education Code is amended to read:

 

Article 15.5.  Recipients of the CalWORKs Program

 

begin delete SEC. 101. end delete
begin insert SEC. 100. end insert   

Section 8350 of the Education Code is amended to
read:

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 resources, make stable arrangements for services,
and continue to receive subsidized begin delete services end delete begin insert care end insert 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 begin delete child end delete 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’ needs are met by county welfare departments and later
by other local early learning and educational support contractors,
it is the intent of the Legislature that families experience no break
in their services due to a transition between the three stages of
begin delete child end delete care services.

begin delete SEC. 102. end delete
begin insert SEC. 101. end insert   

Section 8352 of the Education Code is amended to
read:

8352.  

(a) As soon as appropriate, a county welfare department
shall refer families needing services to the local 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 office 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 resource and
referral program shall assist families to establish stable
arrangements as soon as possible. These arrangements may include
licensed and license-exempt care.

(b) Information shall be provided to parents in the county of
service at the time the family is determined eligible for services,
and at recertification, by one of the following:

(1) An alternative payment program.

(2) A resource and referral program.

(3) A partnership between the alternative payment program and
the resource and referral program.

(c) The information provided by the program or partnership
shall be to assist parents 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 options and resources specified
in this subdivision. The program or partnership may utilize
resources from a list posted on the department’s Internet Web site
pursuant to subdivision (c) of Section 8206 if this list is available.
If the department does not create a list of resources pursuant to
subdivision (c) of Section 8206, the program or partnership may
develop local resources. These resources shall include, but are not
limited to, the following:

(1) Information regarding how to select services that meet the
needs of the parent and child.

(2) Information on licensing requirements and procedures for
begin delete child care end delete centers and family begin delete child end delete care homes.

(3) Trustline requirements for homes and providers exempt from
licensure.

(4) A range of possible early learning and educational support
options from which a parent may choose.

(5) Information on available care subsidies and eligibility
requirements.

(6) Quality indicators, including provider or educator training,
accreditation, staff stability, group size, ratio of children to staff,
environments that support the healthy development of children,
parent involvement, and communication between the parent and
provider.

(7) Information on quality rating and improvement systems,
where available.

(d) The program or partnership shall also provide parenting
information to parents.

(e) 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 begin delete child day care end delete 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.

(f) A program operating pursuant to this article shall, upon being
notified that a licensed begin delete child care end delete 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 delete SEC. 103. end delete
begin insert SEC. 102. end insert   

Section 8353 of the Education Code is amended to
read:

8353.  

(a) The second stage of begin delete child end delete 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
care is available through a local stage two program. Second stage
begin delete child end delete 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 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 8263 and
8263.1. A family leaving cash aid under the CalWORKs program
shall receive up to two years of 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 care under
Section 8354.

(b) The second stage shall be administered by agencies
contracting with the department. These contractors may be either
agencies that have an alternative payment contract pursuant to
Section 8220.1 or county welfare departments that choose to
administer this stage in order to continue to provide 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 delete SEC. 104. end delete
begin insert SEC. 103. end insert   

Section 8354 of the Education Code is amended to
read:

8354.  

(a) The third stage of begin delete child end delete care begins when a funded
space is available. CalWORKs recipients are eligible for the third
stage of begin delete child end delete 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 8263.1. The third
stage shall be administered by programs contracting with the
department. Parents’ eligibility for services will be governed by
Section 8263 and regulations adopted by the department.

(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
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 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 begin delete child end delete 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 before the enactment of this section.

(d) This article does not preclude county welfare departments
from operating an alternative payment program under contract
with the department to serve families referred by child protective
services.

begin delete SEC. 105. end delete
begin insert SEC. 104. end insert   

Section 8355 of the Education Code is amended to
read:

8355.  

begin delete Child care end delete begin insert Care end insert 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 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 services pursuant to other
provisions of this chapter.

begin delete SEC. 106. end delete
begin insert SEC. 105. end insert   

Section 8356 of the Education Code is amended to
read:

8356.  

It is the intent of the Legislature that the department
work with Head Start and California 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 California state preschool program
contractors and begin insert child care end insert certificate administrators, including
counties and other alternative payment programs, so that funds
available for Sections 8351, 8353, and 8354 cover the cost of this
care.

begin delete SEC. 107. end delete
begin insert SEC. 106. end insert   

Section 8357 of the Education Code is amended to
read:

8357.  

(a) The cost of begin insert care end insert services provided under this article
shall be governed by regional market rates. Recipients of begin insert care end insert
services provided pursuant to this article shall be allowed to choose
the begin insert care end insert 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 begin insert care end insert services if 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 begin insert care end insert 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) if 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 (c) of Section 8222.

begin delete SEC. 108. end delete
begin insert SEC. 107. end insert   

Section 8358 of the Education Code is amended to
read:

8358.  

(a) The department and the State Department of Social
Services shall design a form for license-exempt providers to use
for certifying health and safety requirements to the extent required
by federal law. Until the form is adopted, the information required
pursuant to Section 11324 of the Welfare and Institutions Code
shall continue to be maintained by the county welfare department
or contractor, as appropriate.

(b) 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.

(c) (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 8351, 8353, or 8354, 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.

(d) 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 delete SEC. 109. end delete
begin insert SEC. 108. end insert   

Section 8358.5 of the Education Code is amended
to read:

8358.5.  

Notwithstanding any other confidentiality requirement,
the government or private agency administering subsidized care
services shall share information necessary for the administration
of the 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 services.

begin delete SEC. 110. end delete
begin insert SEC. 109. end insert   

Section 8359.1 of the Education Code is amended
to read:

8359.1.  

(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 care
for all individuals who are anticipated to need care to participate
in the welfare-to-work programs and to transition to work.

(b) Funding for purposes of implementing this article shall be
appropriated in the annual Budget Act.

begin delete SEC. 111. end delete
begin insert SEC. 110. end insert   

The heading of Article 16 (commencing with Section
8360) of Chapter 2 of Part 6 of Division 1 of Title 1 of the Education Code is amended to read:

 

Article 16.  Early Learning and Educational Support Personnel
Qualifications

 

begin delete SEC. 112. end delete
begin insert SEC. 111. end insert   

Section 8360 of the Education Code is amended to
read:

8360.  

(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) Any person serving as a teacher in an early learning and
educational support program providing early learning services
shall possess a permit or credential issued by the Commission on
Teacher Credentialing, including, but not limited to, one of the
following:

(A) An associate teacher permit, or higher, authorizing service
in the care, development, and instruction of children in early
learning and educational support programs.

(B) A multiple subject credential with an authorization to teach
prekindergarten to grade 12, inclusive, in a self-contained
classroom.

(C) An elementary credential.

(D) A single subject credential in home economics.

(2)  Any teacher qualifying under subparagraph (B), (C), or (D)
of paragraph (1) must also have completed 12 semester units in
early childhood education or child development, or both, or have
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 delete SEC. 113. end delete
begin insert SEC. 112. end insert   

Section 8360.1 of the Education Code is repealed.

begin delete SEC. 114. end delete
begin insert SEC. 113. end insert   

Section 8360.1 is added to the Education Code, to
read:

8360.1.  

Except as waived under Section 8244, any entity
operating early learning and educational support programs
providing early learning services to children, pursuant to Article
5 (commencing with Section 8228), 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 an early learning and educational support program,
including, but not limited to:

(a) An administrative credential.

(b) A children’s center supervision permit.

(c) A program director permit.

(d) A waiver issued by the Superintendent pursuant to Section
8244.

begin delete SEC. 115. end delete
begin insert SEC. 114. end insert   

Section 8360.2 of the Education Code is amended
to read:

8360.2.  

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 delete SEC. 116. end delete
begin insert SEC. 115. end insert   

Section 8400 of the Education Code is amended to
read:

8400.  

It has come to the attention of the Legislature that:

(a) Existing law does not provide for an administrative appeal
procedure to review and resolve disputes between the department
and the over 750 local contracting agencies that contract with the
department to provide early learning and educational support
services to low-income families in California.

(b) All disputes are currently resolved in the already
overburdened California courts resulting in a time-consuming and
costly process for both the contract agency and the department.
Extensive funds have been expended by the department for those
purposes.

(c) The presence of public and private agencies, small as well
as large, in the subsidized early learning and educational support
delivery system provides client families with a range of desirable
services, and cost-effective service mechanisms.

(d) The presence of an efficient administrative appeal procedure
will ensure program stability and encourage retention in the
delivery system of a range of service-providing agencies.

begin delete SEC. 117. end delete
begin insert SEC. 116. end insert   

Section 8401 of the Education Code is amended to
read:

8401.  

It is the intent of the Legislature to authorize an appeal
process for the resolution of disputes between the department and
local agencies that contract with the department pursuant to Section
8262 to provide early learning and educational support services
or to furnish property, facilities, personnel, supplies, equipment,
and administrative services.

begin delete

SEC. 118.  

Section 8402 of the Education Code is amended to
read:

8402.  

The department shall provide an independent appeal
procedure to each contracting agency providing early learning and
educational support services pursuant to Section 8262. Before
filing an appeal petition, the contracting agency shall have
submitted all previously required standard monthly or quarterly
reporting forms to the department. 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.

SEC. 119.  

Section 8406.7 of the Education Code is amended
to read:

8406.7.  

(a) Any agency that evidences chronic fiscal or
program violations of a felony nature may have its contract
suspended or terminated immediately if there is documented
evidence of these violations, and upon review and recommendation
of the general counsel of the department. 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 8402.

(c) The department shall advise contractors of the provisions
of this section within 30 working days of its enactment.

end delete

begin insert

begin insert SEC. 117. end insert   

end insert

begin insert Section 8402 of the end insert begin insert Education Code end insert begin insert is amended to
read: end insert

8402.  

(a) The department shall provide an independent appeal
procedure to each contracting agency providing begin delete child care and
development end delete begin insert early learning and educational support end insert services
pursuant to Section 8262 that shall be conducted by the Office of
Administrative Hearings and shall be provided upon an appeal
petition of the contracting agency in any of the following
circumstances:

(1) Termination of a contracting agency’s contract.

(2) 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.

(3) 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.

(b) Before filing an appeal petition for an action taken pursuant
to paragraph (2) or (3) of subdivision (a), the contracting agency
shall have submitted all previously required standard monthly or
quarterly reporting forms to the department.

begin insert

begin insert SEC. 118. end insert   

end insert

begin insert Section 8406.7 of the end insert begin insert Education Code end insert begin insert is amended
to read: end insert

8406.7.  

(a) A contracting agency that evidences any of the
following acts or omissions may have its contract or contracts
immediately terminated if there is documented evidence of the
acts or omissions, and upon review and recommendation of the
general counsel of the department:

(1) Fraud, or conspiracy to defraud.

(2) Misuse or misappropriation of state or federal funds,
including a violation of Section 8406.9.

(3) Embezzlement.

(4) Threats of bodily or other harm to a state official.

(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.

(10) Cessation of operations without the permission of the
department, or acts or omissions evidencing abandonment of the
contract or contracts.

(11) Failure of a program operating pursuant to Article 3
(commencing with Section 8220) or Article 15.5 (commencing
with Section 8350) to fully reimburse a significant number of
approved begin delete child end delete care providers, as determined by the department,
within 15 calendar days after the date set in the plan for timely
payments to begin delete child end delete care providers adopted by the contracting agency
pursuant to Section 18226 of Title 5 of the California Code of
Regulations, unless the failure is attributable to a delay in receiving
apportionments from the state.

(12) Failure of a program operating pursuant to this chapter to
pay salaries owed to employees, pay federal payroll tax, or fully
reimburse a significant number of begin delete child end delete care providers, as
determined by the department, affiliated with a contracting agency
pursuant to Article 8.5 (commencing with Section 8245) for more
than 15 days after the employee salaries, federal payroll taxes, or
reimbursement payments were due, unless the failure is attributable
to a delay in receiving apportionments from the state.

(b) An agency whose contract is immediately terminated
pursuant to this section retains appeal rights in accordance with
Section 8402.

(c) Notwithstanding any service provision in the Administrative
Procedure Act (Chapter 5 (commencing with Section 11500) of
Part 1 of Division 3 of Title 2 of the Government Code), a notice
of immediate termination shall be served on the contracting agency
by personal service or at the last address on file with the
department, by overnight mail or certified mail. Service may be
proved in the manner authorized in a civil action. Service by mail
is complete at the time of deposit.

(d) The department shall advise begin delete child care and development end delete
contractors of the provisions of this section within 30 working
days of the effective date of the act amending this section during
the 2013-14 Regular Session of the Legislature.

begin delete SEC. 120. end delete
begin insert SEC. 119. end insert   

Section 8447 of the Education Code is amended to
read:

8447.  

(a) The Legislature hereby finds and declares that greater
efficiencies may be achieved in the execution of state subsidized
early learning and educational support program 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) (1) The Department of Finance and the Department of
General Services shall approve 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. The 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 contractors no later than June 1. Applications for new
early learning and educational support funding shall be issued not
more than 45 working days after the effective date of authorized
new allocations of begin delete child care end delete begin insert these end insert moneys.

(2) Notwithstanding paragraph (1), the State Department of
Education shall implement the regional market rate schedules
based upon the county aggregates, as determined by the regional
market rate survey conducted in 2005.

(3) It is the intent of the Legislature to fully fund the third stage
of begin delete child end delete care for former CalWORKs recipients.

(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 early learning and educational
support contracts and the early learning and educational support
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.

(d) Alternative payment programs, 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.

(e) 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 begin insert care end insert providers to reflect this updated
state median income; however, no changes based on revisions to
the state median income amount shall be implemented midyear.

(f) 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 before 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 SEC. 121. end delete
begin insert SEC. 120. end insert   

Section 8448 of the Education Code is amended to
read:

8448.  

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 accountants” means certified public accountants, or
state licensed public accountants.

(c) “Independent auditors” means public accountants who have
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 any 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 which
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.

(g) (1) Annually, there shall be a single independent financial
and compliance audit of organizations that contract with the state
under a direct service contract. Any such 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.

(2) 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 audits shall be made by independent
auditors 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
required 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.

(h) (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
which 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 delete SEC. 122. end delete
begin insert SEC. 121. end insert   

Section 8450 of the Education Code is amended to
read:

8450.  

(a) All early learning and educational support contractors
are encouraged to develop and maintain a reserve within the child
development fund, derived from earned but unexpended funds.
Contractors 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 8406.7. Earned but unexpended funds shall
remain in the contractor’s reserve account within the child
development fund and shall be expended only by early learning
services contractors that are funded under contract with the
department.

(2) Commencing July 1, 2011, a 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 early learning services
contractors 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 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 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 8276.7 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 (l) end delete begin insert (m) 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 early learning and educational
support 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 delete SEC. 123. end delete
begin insert SEC. 122. end insert   

Section 8493 of the Education Code is amended to
read:

8493.  

It is the intent of the Legislature that funds be
appropriated for capital outlay for purposes of providing facilities
for 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 early learning and educational
support facilities.

(b) For renovation and repair of early learning and educational
support 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 delete SEC. 124. end delete
begin insert SEC. 123. end insert   

Section 8494 of the Education Code is amended to
read:

8494.  

(a) All of the following programs, other than those
providing extended care 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 programs currently, or soon to be, under
contract with the department pursuant to Section 8262.

(2) Early learning and educational support programs conducted
pursuant to Article 4 (commencing with Section 8225).

(3) Early learning and educational support programs operated
by, or in a facility owned by, a public entity.

(4) Early learning and educational support 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 ensure
the board that the renovated facility shall be used for purposes of
the 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 program before 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 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 delete SEC. 125. end delete
begin insert SEC. 124. end insert   

Section 8495 of the Education Code is amended to
read:

8495.  

(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 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 shall establish the qualifications to
determine the eligibility of agencies, including those that provide
preschool and extended begin delete day end delete care services, to lease relocatable
facilities under this section.

(c) Although primary use of relocatable facilities shall be for
early learning and educational support programs, including
preschool and extended begin delete day end delete 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 early learning and educational support programs
including preschool or extended begin delete day end delete care programs.

(2) The Superintendent authorizes alternative use as being
compatible with early learning and educational support programs,
including preschool or extended begin delete day end delete care programs.

(d) The State Allocation Board, with the advice of the
Superintendent, 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 early
learning and educational support services, including preschool and
extended day care services where needed.

(e) The board shall lease relocatable facilities to qualifying
agencies providing early learning and educational support 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) Relocatable facilities shall not 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 early learning
and educational support services, including preschool or extended
begin delete day end delete care services.

(i) If at any time the board determines that a lessee’s 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 delete SEC. 126. end delete
begin insert SEC. 125. end insert   

Section 8495.1 of the Education Code is amended
to read:

8495.1.  

(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 shall establish qualifications
for determining the eligibility of agencies providing early learning
and educational support services, including preschool and extended
begin delete day end delete care service, to apply for these funds.

(b) Notwithstanding any other law, except for Section 8477,
priority in funding of capital outlay grants or relocatables from
funds administered pursuant to Section 8277.7 and under this
article, shall be determined in the following order:

(1) Programs experiencing emergencies as defined by the
Superintendent 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 early learning and educational support services.

begin delete SEC. 127. end delete
begin insert SEC. 126. end insert   

Section 8498 of the Education Code is amended to
read:

8498.  

(a) The State Allocation Board may use up to 5 percent
of any appropriation for purposes of this article to provide loans
to private nonsectarian early learning and educational support
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 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 begin delete child care end delete facility.

(e) A recipient of a loan pursuant to this section shall ensure
the board that the renovated facility shall be used for purposes of
the 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 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 program before 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 delete SEC. 128. end delete
begin insert SEC. 127. end insert   

Section 8499 of the Education Code is amended to
read:

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 (Public Law 104-193).

(b) “Child care” begin insert or “care end insert begin insert ” end insert means begin insert services provided by end insert all
licensed begin delete early learning and educational support services and end delete begin insert or end insert
license-exempt begin delete child care, end delete begin insert providers, end insert including, but not limited to,
private for-profit programs, nonprofit programs, and publicly
funded programs, for all children from birth to 13 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 begin delete child end delete care
services, or who advocates for begin delete child end delete care services through
participation in civic or community-based organizations but is not
a begin delete child end delete care provider and does not represent an agency that
contracts with the State Department of Education to provide early
learning and educational support 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 early learning and
educational support 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.

begin delete SEC. 129. end delete
begin insert SEC. 128. end 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 Education Code is amended to read:

 

Article 2.  Membership and Funding of Local Planning Councils

 

begin delete SEC. 130. end delete
begin insert SEC. 129. end insert   

Section 8499.3 of the Education Code is amended
to read:

8499.3.  

(a) It is the intent of the Legislature that local planning
councils shall provide a forum for the identification of local
priorities for early learning and educational support 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 county 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 county 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 providers,
reflective of the range of 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 providers or agencies that contract
with the department to provide services.

(E) The remaining 20 percent shall be appointed at the discretion
of the appointing agencies.

(2) The county board of supervisors and the county
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 county board of supervisors and county superintendent
of schools may designate an existing 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) A member of a local planning council shall not participate
in a vote if he or she has a proprietary interest in the outcome of
the matter being voted upon.

begin delete SEC. 131. end delete
begin insert SEC. 130. end insert   

Section 8499.5 of the Education Code is amended
to read:

8499.5.  

(a) The department shall allocate funding pursuant to
Chapter 2 (commencing with Section 8200) 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 begin delete child end delete 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 begin delete child end delete 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 care.

(B) The needs of families not eligible for subsidized care.

(C) The waiting lists for programs funded by the department
and the State Department of Social Services.

(D) The need for 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 subdivision (a) of Section 8231.

(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 services by age cohort.

(2) Document information gathered during the needs assessment
that 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) Develop a draft of local priorities for early learning and
educational support program funding that includes the needs
assessment in paragraph (1) and that considers the resources
currently available in attendance areas of elementary schools
ranked in deciles 1 to 3, inclusive, of the Academic Performance
Index pursuant to Section 52056.

(4) 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.

(5) Prepare a comprehensive countywide begin delete child end delete care plan
designed to mobilize public and private resources to address
identified needs.

(6) Conduct a periodic review of early learning and educational
support programs funded by the department and the State
Department of Social Services to determine if identified priorities
are being met.

(7) Collaborate with subsidized and nonsubsidized 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 resource
and referral programs, and other interested parties to foster
partnerships designed to meet local child care needs.

(8) Design a system to consolidate local begin delete child end delete care waiting lists,
if a centralized eligibility list is not already in existence.

(9) Coordinate part-day programs, including California state
preschool and Head Start, with other early learning and educational
support services to provide full-day care.

(10) Submit the results of the needs assessment and the local
priorities identified by the local planning council to the county
board of supervisors and the county superintendent of schools for
approval before submitting them to the department.

(11) 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 begin delete child end delete care data, and
methodologies for assessing begin delete child end delete 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.

(e) When additional funds for early learning services are
appropriated by the Legislature, the department shall allocate
funding within each county in accordance with the priorities that
include the review of resources in the attendance areas of
elementary schools ranked in deciles 1 to 3, inclusive, of the
Academic Performance Index pursuant to Section 52056, as
identified by the local planning council of that county and
submitted to the department pursuant to paragraph (3) of
subdivision (b), unless the priorities do not meet the requirements
of state or federal law.