Bill Text: CA AB233 | 2015-2016 | Regular Session | Amended
Bill Title: Child care and development services: alternative payment programs: reimbursement rates.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Failed) 2016-02-01 - From committee: Filed with the Chief Clerk pursuant to Joint Rule 56. [AB233 Detail]
Download: California-2015-AB233-Amended.html
BILL NUMBER: AB 233 AMENDED BILL TEXT AMENDED IN ASSEMBLY MAY 6, 2015 AMENDED IN ASSEMBLY APRIL 9, 2015 INTRODUCED BY Assembly Member Lopez FEBRUARY 4, 2015 An act to amend Sections 8220, 8221.5, 8222, 8225, 8263, 8269, and 8273 of the Education Code, relating to child care. LEGISLATIVE COUNSEL'S DIGEST AB 233, as amended, Lopez. Child care and development services: alternative payment programs: reimbursement rates. The Child Care and Development Services Act has a purpose of providing a comprehensive, coordinated, and cost-effective system of child care and development 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. The act requires the State Department of Education to contract with local contracting agencies for alternative payment programs that are intended to allow for maximum parental choice in child care. The act, to provide maximum parental choice, authorizes alternative payment programs to include certain things, including a subsidy that follows the family from one provider to another, as provided. Existing law authorizes funds appropriated for the act to be used for alternative payment programs to allow for maximum parental choice, as provided. This bill would, to provide maximum parental choice and access, instead require alternative payment programs to include these certainthings, and to also include an eligibility determination process of every 12 months.things. The bill would authorize funds appropriated for the act to also be used to allow for maximum parental access, as provided. The act requires certain child care providers to submit to the alternative payment program a monthly attendance record or invoice, as provided, and requires the record or invoice to be maintained by the child care provider in the unaltered original form in which it was created. This bill would delete the requirement that the child care provider maintain the record or invoice in the unaltered original form in which it was created. The act requiresan alternative payment program to verify provider rates no less frequently than once a year, as provided, and requires the department to develop regulations for addressing discrepancies in provider rate levels identified through this verification process. The act requiresa child care provider to post the provider's rates and discounts or scholarship policies, if any. This bill would deletethese requirements.this requirement. The act requires, when making referrals, every agency operating both a direct service program and an alternative payment program to provide at least 4 referrals, as provided, to a family. This bill would instead require a resource and referral agency to provide at least 4 referrals to a family, as provided. The act provides that a family enrolled in a state or federally funded child care and development program whose services would otherwise be terminated, as provided, may continue to receive child development services, as provided. This bill would also require thata family enrolled in a state or federally funded child care and development program to be considered eligible for services for 12 months from time of initial, or annual, eligibility determinationsubsequent to enrollment, a child be deemed eligible for services for a period of 12 months . The act requires a physical examination and evaluation, including age-appropriate immunization, before, or within 6 weeks of, enrollment, as provided. Existing law requires a child to be temporarily excluded from the program if there is good cause to believe the child is suffering from a recognized contagious or infectious di sease, as provided. This bill woulddelete this requirement.instead specify that if the child care provider has good cause to believe that a child is suffering from a recognized contagious or infectious disease, the child would be temporarily excluded from the program, as provided. The act requires the Superintendent to adopt rules, regulations, and guidelines to facilitate the funding and reimbursement procedures. This bill would require the Superintendent to adopt these rules, regulations, and guidelines to facilitate the funding and reimbursement procedures for contractors operating centers, family child care homes, or both. The act requires the Superintendent to establish a fee schedule for families using preschool and child care and development services. This bill would authorize the contractor to require a child care provider to collect the family fee, as deducted from the child care provider reimbursement, or to collect the family fee amount directly from the parent. The bill would authorize specified contractors to develop a written policy that directs parents to pay family fees directly to the child care provider, as provided. 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. Section 8220 of the Education Code is amended to read: 8220. (a) Upon the approval of the State Department of Education, funds appropriated for the purposes of this chapter may be used for alternative payment programs to allow for maximum parental choice and access. Various methods of reimbursement for parental costs for child 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. (b) To provide for maximum parental choice and access, alternative payment programs shall include the following:(1) An eligibility determination process of every 12 months.(2)(1) A subsidy that follows the family from one provider to another within a given alternative payment program.(3)(2) Choices, when possible, among hours of service including before and after school, evenings, weekends, and split shifts.(4)(3) Child care and development services according to parental choice, including use of family day care homes, general center based programs, and other state-funded programs to the extent that those programs exist in the general service area and are in conformity with the purposes and applicable laws for which those programs were established, but excluding state preschool programs. SEC. 2. Section 8221.5 of the Education Code is amended to read: 8221.5. (a) Child care providers authorized to provide services pursuant to this article shall submit to the alternative payment program a monthly attendance record or invoice for each child who received services that, at a minimum, documents the dates and actual times care was provided each day, including the time the child entered and the time the child left care each day. The information shall be documented on a daily basis. (b) The monthly attendance record or invoice shall, at a minimum, be signed by the parent or guardian of the child receiving services and the child care provider once per month to attest that the child's attendance is accurately reflected. The verification of attendance shall be made by signature at the end of each month of care and under penalty of perjury by both the parent or guardian of the child receiving services and the child care provider. (c) The monthly attendance record or invoice shall be maintained by the child care provider. (d) The alternative payment program shall accept the monthly attendance record or invoice as documentation of the hours of care provided if the attendance record or invoice includes adequate information documented on a daily basis, including, at a minimum, the dates and actual times care was provided each day, including the time the child entered and the time the child left care each day. The alternative payment program shall reimburse child care providers based upon the following criteria: (1) The hours of service provided that are broadly consistent with certified hours of need. (2) For families with variable schedules, the actual days and hours of attendance, up to the maximum certified hours. (3) For license-exempt providers that provide part-time services, the actual days and hours of attendance, up to the maximum certified hours. (e) For purposes of this section, a monthly attendance record or invoice is defined as documentation that includes, at a minimum, the name of the child receiving services, the dates and actual times care was provided each day, including the time the child entered and the time the child left care each day, that is signed under penalty of perjury by both the parent or guardian and the child care provider, attesting that the information provided is accurate. SEC. 3. 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 reimbursed 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 child care 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 child 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 child care 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 child care 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) A licensed child care 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. An alternative payment program may implement an altered rate level once per year. (g) An alternative payment program shall verify provider rates no less frequently than once a year by randomly selecting 10 percent of licensed child care 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. (h) The department shall develop regulations for addressing discrepancies in the provider rate levels identified through the rate verification process in subdivision (g). SEC. 4. Section 8225 of the Education Code is amended to read: 8225. When making referrals, a resource and referral agency 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 alicense exemptlicense-exempt provider. SEC. 5. 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 child development 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 child 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) Subsequent to enrollment, a child shall be deemed eligible for services for a period of 12 months.(b)(c) Except as provided in Article 15.5 (commencing with Section 8350), priority for federal and state subsidized child development 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 child care on the basis of being a child at risk of abuse, neglect, or exploitation, as defined in subdivision (k) 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 child care services for 12 months on the basis of a certification by the county child welfare agency that child care services continue to be necessary or, if the child is receiving child protective services during that period of time, and the family requires child care and remains otherwise eligible. This time limit does not apply if the family's child care referral is recertified by the county child welfare agency. (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)(d) Notwithstanding any other law, in order to promote continuity of services, a family enrolled in a state or federally funded child care and development program whose services would otherwise be terminated because the family no longer meets the program income, eligibility, or need criteria may continue to receive child development services in another state or federally funded child care and development program if the contractor is able to transfer the family's enrollment to another program for which the family is eligible before the date of termination of services or to exchange the family's existing enrollment with the enrollment of a family in another program, provided that both families satisfy the eligibility requirements for the program in which they are being enrolled.These families shall be considered eligible for services for 12 months from time of initial, or annual, eligibility determination.The transfer of enrollment may be to another program within the same administrative agency or to another agency that administers state or federally funded child care and development programs.(d)(e) 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 to all contractors 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 or areas with disproportionately high numbers of seasonal agricultural jobs, or both. (f) 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 a child care and development program of a child whose parent or guardian files a letter with the governing board of the child care and development 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 the child care provider has 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 child care and development program is satisfied that the child is not suffering from that contagious or infectious disease.(e)(g) 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.(f)(h) The Superintendent shall establish guidelines for the collection of employer-sponsored child care benefit payments from a parent whose child receives subsidized child care and development services. These guidelines shall provide for the collection of the full amount of the benefit payment, but not to exceed the actual cost of child care and development services provided, notwithstanding the applicable fee based on the fee schedule.(g)(i) The Superintendent shall establish guidelines according to which the director or a duly authorized representative of the child care and development program will certify children as eligible for state reimbursement pursuant to this section.(h)(j) 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. 6. Section 8269 of the Education Code is amended to read: 8269. The Superintendent shall adopt rules, regulations, and guidelines to facilitate the funding and reimbursement procedures for contractors operating centers, family child care homes, or both, required by this chapter. SEC. 7. Section 8273 of the Education Code is amended to read: 8273. (a) The Superintendent shall establish a fee schedule for families using preschool and child care and development services pursuant to this chapter, including families receiving services pursuant to paragraph (1) of subdivision (b) of Section 8263. It is the intent of the Legislature that the new fee schedule shall be simple and easy to implement. (b) The family fee schedule shall retain a flat monthly fee per family. The schedule shall differentiate between fees for part-time care and full-time care. (c) A contractor operating pursuant to Section 8220 may develop a written policy that directs parents to pay family fees directly to the child care provider. (1) The contractor shall provide written notification of the assessed fee to both the parent and the child care provider. (2) The contractor shall deduct the amount of the family fee assessed to the parent when calculating the payment due to the child care provider. (3) The contractor shall report its payment to the child care provider plus the assessed family fees as an expense on the attendance and expenditure reports as required by regulation. (4) A contractor with a written policy directing parents to pay family fees directly to the child care provider are exempt from all of the following: (A) Requiring families to pay family fees in advance of child care services. (B) Requiring any record or proof that the family paid any applicable family fees to the child care provider. (C) Notification of delinquent fees or termination for delinquent fees. (d) The contractor is authorized to require child care providers to collect the family fee, which shall be deducted from the reimbursement to the child care provider, or to collect the family fee amount directly from the parent. (e) Using the most recently approved family fee schedule pursuant to subdivision (f) of Section 8447, families shall be assessed a flat monthly fee based on income, certified family need for full-time or part-time care services, and enrollment, and shall not be based on actual attendance. A recalculation of a family fee shall not occur if attendance varies from enrollment unless a change in need for care is assessed. (f) The Superintendent shall design the new family fee schedule based on the state median income data that was in use for the 2007-08 fiscal year, adjusted for family size. The revised family fee schedule shall begin at income levels at which families currently begin paying fees. The revised fees shall not exceed 10 percent of the family's monthly income. The Superintendent shall first submit the adjusted fee schedule to the Department of Finance for approval. (g) The income of a recipient of federal supplemental security income benefits pursuant to Title XVI of the federal Social Security Act (42 U.S.C. Sec. 1381 et seq.) and state supplemental program benefits pursuant to Title XVI of the federal Social Security Act (42 U.S.C. Sec. 1381 et seq.) and Chapter 3 (commencing with Section 12000) of Part 3 of Division 9 of the Welfare and Institutions Code shall not be included in total countable income for purposes of determining the amount of the family fee. (h) Family fees shall be assessed at initial enrollment and reassessed at update of certification or recertification. (i) It is the intent of the Legislature that the new family fees shall be cost neutral to the state and generate roughly the same amount of revenue as was generated under the previous family fee schedule.