Bill Text: CA AB150 | 2025-2026 | Regular Session | Chaptered

California Assembly Bill 150

Bill Title: Early care and education.

Sponsorship: Committee Bill

Status: (Passed) 2026-06-29 - Chaptered by Secretary of State - Chapter 25, Statutes of 2026. [AB150 Detail]

Download: California-2025-AB150-Chaptered.html

Assembly Bill No. 150

CHAPTER 25

An act to amend Sections 8205, 8208, 8210, 8211, 8213, 8215, 8217, 8242, 8251, 8252, and 8253 of the Education Code, to amend Sections 1596.798, 1596.7985, 1596.81, 1596.866, 1596.8662, 1596.867, 1596.95, and 1597.54 of, and to add Sections 1596.868 and 1597.63 to, the Health and Safety Code, and to amend Sections 10213.5, 10271, 10280, 10290, 10370.5, 10388, 10436, and 11323.4 of, and to add Sections 10245, 10277.6, 10309.8, and 10310.2 to, the Welfare and Institutions Code, relating to childcare, and making an appropriation therefor, to take effect immediately, bill related to the budget.

[ Approved by Governor June 29, 2026. Filed with Secretary of State June 29, 2026. ]

LEGISLATIVE COUNSEL'S DIGEST

AB 150, Committee on Budget. Early care and education.

(1) Existing law, the Early Education Act, among other things, requires the Superintendent of Public Instruction to administer all California state preschool programs. The act establishes a standard reimbursement rate for both the part-day and full-day preschool programs, as provided. The act defines the term “attendance” for purposes of this reimbursement to include excused absences by 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.

This bill would revise the definition of the term “attendance” for purposes of reimbursement to additionally include excused absences for medical and educational appointments and for days a child is not in attendance during an appeal process regarding expulsion or suspension, as specified.

(2) The Early Education Act establishes eligibility requirements, including income eligibility requirements, and a specified priority sequence for enrollment, for the part-day and full-day preschool programs. The act requires that a family be considered to meet all eligibility and need requirements for not less than 24 months and prohibits requiring a family to report changes to income or other changes for at least 24 months. The act also establishes a fee schedule for families receiving preschool services and exempts a family from family fees for up to 12 months. The act authorizes a provider operating a state preschool program within the attendance boundary of certain public schools where at least 80% of enrolled pupils are eligible for free or reduced-price meals to enroll 3-year-old and 4-year-old children in accordance with the above-described enrollment priorities and, any remaining spots, to families not meeting the enrollment priorities but who establish residency within the attendance boundary of the qualifying public school.

This bill would revise those provisions by, among other things, (A) specifying that the prohibition on requiring a family to report changes to income or other changes for at least 24 months for purposes of eligibility includes when a family member transfers to another California state preschool program or when a child is voluntarily disenrolled by their family for any period of time during eligibility, (B) requiring the State Department of Education to, on or before January 1, 2027, implement the eligibility requirements described in (A) through management bulletins or similar letters of instruction and requiring the department to, on or before December 31, 2028, initiate a rulemaking action to implement those eligibility requirements, (C) exempting a family from family fees for up to one certification period instead of up to 12 months, (D) extending eligibility for part-day and full-day preschool programs to children of a parent or guardian employed by a local educational agency, (E) extending eligibility for full-day preschool programs to children whose families need childcare services because they are participating in a CalWORKs program activity, (F) revising the priority sequence for eligibility by including within the sequence children whose parent or guardian is employed by a local education agency, as specified, and revising the sequencing provisions for children with exceptional needs, as provided, (G) specifying, for purposes of establishing ongoing income eligibility, that ongoing income eligibility means a family’s initial income eligibility for services at the time of enrollment will be in effect, regardless of an increase in income, (H) instead authorizing a provider operating a state preschool program within the attendance boundary of a school district or certain public schools where at least 80% of enrolled pupils are eligible for free or reduced-price meals, foster youth, or English learners, to enroll 3-year-old and 4-year-old children in accordance with the above-described enrollment priorities and, any remaining spots, to families not meeting the enrollment priorities but who either establish residency within, or have a parent or guardian employed within, the attendance boundary of the qualifying school district or public school in which the state preschool program is located, and (I) increasing a California state preschool program provider’s authority to schedule staff training days from 2 days per contract period to 5 days per contract period.

(3) Existing law, the Child Care and Developmental Services Act, administered by the State Department of Social Services, establishes a system of childcare and development services for children up to 13 years of age. Existing law requires, for California state preschool programs and childcare and development programs, the State Department of Education and the State Department of Social Services to collaborate to implement a reimbursement system plan that establishes reasonable standards and assigned reimbursement rates. Existing law requires the reimbursement rate to be increased by a specified cost-of-living adjustment, except for the 2023–24, 2024–25, and 2025–26 fiscal years, for which it was suspended. Commencing July 1, 2026, existing law requires the cost-of-living adjustment for state preschool programs to be consistent with an adjustment granted by the Legislature annually, as specified.

This bill would additionally suspend the annual cost-of-living adjustment for the 2026–27 fiscal year.

Existing law allocates certain appropriated funds to the State Department of Social Services and the State Department of Education to provide specified family childcare providers and childcare centers with a monthly cost of care plus rate, as specified.

This bill would allocate a portion of those same appropriated funds to the State Department of Education to provide, commencing July 1, 2026, a once-per-month, per-child-served cost of care plus rate, as calculated by the Department of Finance, for providers serving children enrolled in California state preschool programs.

(4) Existing law requires the State Department of Social Services, in consultation with the State Department of Education, to establish a fee schedule for families using preschool and childcare and developmental services and requires families who utilize those services to be assessed a family fee that is based on income, certified family need for full-time or part-time care services, and enrollment. Existing law requires the Superintendent to use the fee schedule developed in conjunction with the State Department of Social Services for families using full-day preschool services. Existing law prohibits those family fees from being collected for the 2022–23 fiscal year and from July 1, 2023, to September 30, 2023, inclusive, and requires contractors to reimburse providers operating within a family childcare home education network for the full amount of the certificate or voucher without deducting family fees during that time.

This bill, by no later than January 1, 2027, would require contractors to reimburse California state preschool program providers for the full amount of the certificate or voucher without deducting family fees and to collect family fees, as specified.

(5) The Child Care and Development Services Act establishes a comprehensive, coordinated, and cost-effective system of childcare and development services for children from infancy to 13 years of age and their parents. The act requires the State Department of Education, in consultation with the State Department of Social Services, county fraud investigators, and other fraud investigation experts, to perform an error rate study to estimate the percentage of errors in certain determinations, including, among others, errors in determinations of eligibility and reimbursement payments to childcare providers. The act also requires the State Department of Education to develop recommendations for the prevention and elimination of childcare fraud and programmatic errors and the identification and collection of childcare overpayments, and, in developing its recommendations, to consider existing best practices. Existing law requires all childcare contracts entered into by the State Department of Social Services for means-tested childcare programs to require implementation of those best practices.

This bill would require the best practices on fraud and overpayments to require adoption in contractor policies and implementation of best practices on prevention and intervention of fraud and program integrity violations. The bill would require childcare contractors to terminate eligibility if there is substantiated evidence of a fraud or program integrity violation that invalidates the certification. The bill would authorize the department to enter into agreements with county welfare departments to support the investigation and enforcement of fraud and program integrity in any subsidized childcare program administered by the department, as specified. The bill would authorize the department to clarify the process for recovery of funds and imposition of sanctions described in the approved state plan for the implementation of programs under the federal Child Care and Development Fund in instances where fraud or other program integrity violation is established.

Existing law requires the department, in consultation with the State Department of Education, to establish the above-described fee schedule and requires families who utilize those services to be assessed a single flat monthly fee that is based on income, certified family need for full-time or part-time care services, and enrollment. Existing law requires family fees to be assessed at initial enrollment and reassessed at update of certification or recertification.

This bill would require, no later than January 1, 2027, contractors to reimburse subsidized childcare providers without deducting family fees and to collect family fees. The bill would require the department to work with contractors in need of technical assistance to comply with these provisions.

This bill would require funding appropriated to the department in the Budget Act of 2026, as specified, to be allocated to provide a once-per-month, per-child-served cost of care plus rate for providers serving children enrolled in specified subsidized childcare programs. The bill would require the Department of Finance to make specified calculations for reimbursement based on data provided by the department.

Existing law requires the department, in collaboration with the State Department of Education, to implement a reimbursement system plan that establishes reasonable standards, specifies the standard reimbursement rates, and requires a cost-of-living adjustment. Existing law suspends the cost-of-living adjustment for the 2023–24, 2024–25, and 2025–26 fiscal years.

This bill would also suspend the childcare and development program cost-of-living adjustment for the 2026–27 fiscal year except for resource and referral programs and local childcare and development planning councils, which the bill would require to receive a 2.009% cost-of-living adjustment.

Existing law requires, if the market rate survey is used to set reimbursement rates for those childcare programs, the department to contract to conduct a regional market rate survey no more frequently than once every 2 years.

This bill would instead require, if the market rate survey is used to set reimbursement rates, the department to contract to conduct a regional market survey every 3 years. The bill would also authorize, if an alternative methodology is used to inform the setting of reimbursement rates for subsidized childcare, the department to contract to develop and conduct an alternative methodology to set reimbursement rates for subsidized childcare no less than every 3 years and no sooner than 2 years prior to the submission of the Child Care and Development Fund Plan.

Existing law provides for the California Work Opportunity and Responsibility to Kids (CalWORKs) program, under which each county provides cash assistance and other benefits to qualified low-income families and individuals. Existing law provides childcare to CalWORKs recipients in 3 stages. Existing law requires, on the date automated changes occur in the Statewide Automated Welfare System (SAWS), a county welfare department to provide limited, read-only, online access through county-level SAWS databases to local contractors providing CalWORKs childcare services, including a summary page with current individual family data needed to enroll a family in CalWORKs childcare services or to transfer a family between stages.

This bill would expand the eligibility criteria for subsidized childcare services under the act to include participation in a CalWORKs program activity. The bill would prohibit a CalWORKs childcare recipient from participating in more than one stage of childcare at any given time. The bill would require, beginning January 1, 2028, or on the date automated changes occur in SAWS, whichever is later, the data available to local contractors on county-level SAWS databases to also include the relationship between the current or former CalWORKs recipient or recipients and the child, the childcare license number, if licensed, and whether the current or former CalWORKs recipient is receiving Medi-Cal or CalFresh benefits. By increasing duties on county welfare departments, this bill would impose a state-mandated local program.

Beginning on or before July 1, 2027, this bill would authorize the department to set aside up to 15% of funding associated with slot expansion awards for general childcare and development programs to fund minor repairs, infrastructure upgrades, and other readiness activities for childcare and development programs. The bill would require the department to establish the process, including eligibility criteria, by which the funds shall be awarded to contractors. The bill would require awarded funds to be utilized within a timeframe established by the department. The bill would authorize the department to rescind awarded funds for reasons that include, among others, that the awarded funds have been, or are expected to be, utilized for projects or activities that have not been approved by the department. The bill would authorize the department to administer and implement these provisions, in whole or in part, by means of childcare bulletins or similar instructions from the department until regulations are adopted. The bill would specify that these provisions shall only be implemented to the extent not prohibited by federal law, regulation, and directives.

The bill would authorize the department to transfer funding across and within specified childcare and development programs, including funds that are not allocated to contracts or otherwise fully expended. The bill would require the department to establish criteria for these transfers of funds that prioritize, among other things, maintaining funding within the same program type for which the funds were initially issued. The bill would also require the department to review subsidized childcare awards and contracts on an individual basis to determine a contractor’s readiness to serve children pursuant to the initial award. If the department determines that the contractor has not made sufficient progress toward serving children with awarded or allocated funds, the bill would authorize the department to partially or fully redirect those funds across and within the specified childcare and development programs. The bill would authorize the department to administer and implement these provisions, in whole or in part, by means of childcare bulletins or similar instructions from the department until regulations are adopted. The bill would require the department, by no later than October 1 of each year, to update the Assembly Committee on Budget, the Senate Budget and Fiscal Review Committee, and the Legislative Analyst’s Office on transfers made pursuant to these provisions that include, among other things, the amount of funds transferred to another childcare and development program and the amount of funds that remained within the same program. The bill would require that these provisions be implemented only to the extent not prohibited by federal law, regulation, and directives and require those provisions to be implemented only if, and to the extent which, the department makes a specified determination.

(6) Existing law, the California Child Day Care Facilities Act, provides for the licensure and regulation of child daycare facilities by the State Department of Social Services. A person who willfully or repeatedly violates any provision of the California Child Day Care Facilities Act, or any rule or regulation promulgated under the act, is guilty of a crime.

Under the act, licensees and staff of a child daycare facility are authorized to administer inhaled medication to a child if certain requirements are satisfied, including, among others, that the licensee or staff complies with specific written instructions from the child’s physician.

This bill would make those provisions applicable to the administration of all medications. The bill would also specifically require the written instructions to contain the name of the medication. The bill would authorize the department to implement, interpret, or make specific these provisions by means of written directives, interim licensing standards, or similar instructions until regulations are adopted. By expanding the scope of a crime, this bill would impose a state-mandated local program.

The act requires the State Department of Social Services, in consultation with the Emergency Medical Services Authority (EMSA) and the State Department of Education, on or before July 1, 2027, to establish an anaphylactic policy that sets forth guidelines and procedures recommended for child daycare personnel to prevent a child from suffering from anaphylaxis and to be used during a medical emergency resulting from anaphylaxis. Existing law authorizes a child daycare facility to implement that anaphylactic policy.

This bill would instead require a child daycare facility to comply with that anaphylactic policy. By expanding the scope of a crime, this bill would impose a state-mandated local program.

Existing regulations generally require a family daycare home licensee to be present in the home and prohibits a required temporary absence of the licensee from exceeding 20% of the hours that the facility is providing care per day. Existing regulations require, if the licensee is required to be temporarily absent from the home, the licensee to arrange for a substitute adult to care for and supervise the children during the absence.

This bill would instead prohibit temporary absences that exceed 20% of the hours that the home is providing care per month, subject to waiver by the department. The bill would require a licensee, prior to a substitute adult’s initial presence in the home, to ensure the substitute adult has obtained a criminal record clearance or exemption, completed specified health and safety training, is immunized against certain illnesses, and meets any other requirements imposed by the department. The bill would require a licensee to provide prior written notice of a temporary absence to the parent or legal guardian of each child in care, except in emergency circumstances, in which case written notice is required to be provided by the next business day. The bill would also require the licensee to submit a written report with certain information for each temporary absence to the department by the next business day. The bill would authorize the department to implement and administer these provision by means of letters or similar written instructions until regulations are adopted. By expanding the scope of a crime, this bill would impose a state-mandated local program.

The act requires at least one director or teacher at each daycare center and each family daycare home licensee who provides care to complete at least 15 hours of specified health and safety training that includes pediatric first aid, pediatric CPR, and preventive health practices.

This bill would instead require all staff who provide childcare at those facilities, each family daycare home licensee, and each substitute adult in a family daycare home to complete that training. The bill would also require those staff to complete a minimum of 12 hours of continuing education annually and would require that training to cover specified topics, including, among others, emergency and disaster preparedness and response planning. By expanding the scope of a crime, this bill would impose a state-mandated local program.

The act also requires a child daycare license applicant and administrators and employees of a licensed child daycare facility to complete mandated reporter training and to complete renewal mandated reporter training every 2 years. Existing law exempts a person from that requirement if they have limited English proficiency and training is not made available in their primary language.

This bill would delete that exemption and authorize the department to implement, interpret, or make specific the above-described provisions by means of written directives, interim licensing standards, or similar instructions from the department until regulations are adopted. By expanding the scope of a crime, this bill would impose a state-mandated local program.

Existing law requires an applicant for a license to operate a daycare center or a family daycare home to provide with their application evidence satisfactory to the department that there is a disaster plan for the facility.

This bill would instead refer to that plan as an emergency and disaster plan and specify the components that the plan is required to include, including, among other things, evacuation procedures, a contact information list, and procedures for reunification of children in care with a parent or legal guardian after an emergency or disaster. The bill would require a facility to provide training on the plan to each staff member and volunteer, as specified, and review the plan annually. The bill would also require a facility to have specified information readily available during an emergency or disaster, including a roster of children in care for that day, and to have a set of keys available for use during an evacuation. The bill would require a child daycare facility to be in compliance with these provisions on and after January 1, 2027. By expanding the scope of a crime, this bill would impose a state-mandated local program.

Existing law requires the department to adopt, amend, or repeal any rules or regulations that are necessary to carry out the act.

This bill would authorize the department to waive any of those rules or regulations if the waiver is reasonable and necessary to carry out the act and is not detrimental to the health and safety of any child in care. The bill would authorize the department to implement and administer this provision by means of letters or similar written instructions until regulations are adopted.

(7) Existing law requires the State Department of Social Services to administer the Child Care and Development Infrastructure Grant Program to expand access to childcare and development and preschool opportunities for children up to 5 years of age by providing resources to build new facilities or retrofit, renovate, repair, or expand existing facilities, as specified.

This bill would require the department, subject to an appropriation, to administer and implement a program for disaster-related infrastructure grants to support certain categories of childcare facilities that are impacted by a state-or federally declared disaster, as specified. The bill would impose various requirements on the department relating to the development of criteria, determination of grant amounts, and offering of technical assistance.

The bill would require a grant recipient to provide program data to the department and to participate in overall program evaluation. The bill would require a recipient to use the funds to supplement, and not supplant, other public funds expended for these purposes.

(8) The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that with regard to certain mandates no reimbursement is required by this act for a specified reason.

With regard to any other mandates, this bill would provide that, if the Commission on State Mandates determines that the bill contains costs so mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.

(9) This bill would appropriate $25,674,000 from the Federal Trust Fund to the State Department of Social Services for disaster relief efforts related to disasters occurring in 2023 and 2024 and would make these funds available for encumbrance until September 30, 2029.

(10) This bill would declare that it is to take effect immediately as a bill providing for appropriations related to the Budget Bill.

Vote: MAJORITY Appropriation: YES Fiscal Committee: YES Local Program: YES

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

SECTION 1.

Section 8205 of the Education Code, as amended by Section 1 of Chapter 73 of the Statutes of 2024, is amended to read:

8205.

As used in this chapter:

(a) “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.

(b) “Assigned reimbursement rate” is that rate established by the contract with the agency in accordance with Section 8242.

(c) “Attendance” means the number of children present at a preschool facility. “Attendance,” for purposes of reimbursement, includes excused absences by children because of illness, quarantine, illness or quarantine of their parent, family emergency, medical and educational appointments, 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. For purposes of reimbursement, a California state preschool program contractor may claim attendance for days that the child is not in attendance during an appeal process pursuant to Section 8489.1.

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

(e) “Preschool facility” means a residence or building or part thereof in which preschool services are provided.

(f) “Early childhood programs” means those programs that offer a full range of services for children from infancy to 13 years of age, for any part of a day, by a public, private, or proprietary agency, in centers and family childcare homes.

(g) “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.

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

(1) Children 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 and shall be receiving early intervention services.

(i) “Cost” includes, but is not limited to, expenditures that are related to the operation of preschool 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.

(j) “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 child development programs, for the purpose of the cancellation provisions of loans to students in institutions of higher learning.

(k) “Family childcare home education network” means an entity organized under law that contracts with the department to make payments to licensed family childcare home providers and to provide educational and support services to those providers and to children and families eligible for California state preschool program services.

(l) “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) 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.

(m) “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.

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

(o) “Dual language learner children” means children whose first language is a language other than English or children who are developing two or more languages, one of which may be English.

(p) “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.

(q) “Program director” means a person who, pursuant to Section 8298, is qualified to serve as a program director.

(r) “Proprietary agency” means an organization or facility providing preschool, which is operated for profit.

(s) “Children with severe disabilities” 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. “Children with severe disabilities” 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.

(t) (1) “Site supervisor” means a person who, regardless of their title, has operational program responsibility for an early childhood program at a single site.

(2) A site supervisor shall satisfy one of the following:

(A) Hold a permit issued by the Commission on Teacher Credentialing that authorizes supervision of a childcare and development program operating in a single site.

(B) Hold an administrative credential or an administrative services credential issued by the Commission on Teacher Credentialing.

(3) The Superintendent may waive the requirements of this subdivision if the Superintendent determines that the existence of compelling need is appropriately documented.

(u) “Standard reimbursement rate” means the reimbursement rate applicable to California state preschool programs pursuant to Section 8242.

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

(w) “California state preschool program” means those programs that offer part-day or full-day, or both, educational programs for eligible two-, three-, and four-year-old children. These programs may be offered by a public, private, or proprietary agency, and operated in childcare centers or family childcare homes operating through a family childcare home education network.

(x) “Support services” means those services that, when combined with preschool services, help promote the healthy physical, mental, social, and emotional growth of children. Support services may include, but are not limited to: protective services, parent training, provider and staff training, transportation, parent and child counseling, child development resource and referral services, and child placement counseling.

(y) “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.

(z) “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 preschool program services to the need for these services is low, as determined by the Superintendent.

(aa) “Three-year-old children” means children who will have their third birthday on or before December 1 of the fiscal year in which they are enrolled in a California state preschool program. Children who have their third birthday on or after December 2 of the fiscal year, may be enrolled in a California state preschool program on or after their third birthday. Any child under four years of age shall be served in a California state preschool program facility, licensed in accordance with Title 22 of the California Code of Regulations.

(ab) “Two-year-old children” means children who have had their second birthday and do not otherwise meet the definition of “three-year-old children.”

(ac) “Four-year-old children” means children who will have their fourth birthday on or before December 1 of the fiscal year in which they are enrolled in a California state preschool program, or a child whose fifth birthday occurs after September 1 of the fiscal year in which they are enrolled in a California state preschool and whose parent or guardian has opted to retain or enroll them in a California state preschool program.

(ad) “Homeless children and youth” has the same meaning as defined in Section 11434a(2) of the federal McKinney-Vento Homeless Assistance Act (42 U.S.C. Sec. 11301 et seq.).

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

(af) “Funded enrollment” means the number of subsidized children funded to be enrolled, based on the maximum reimbursable amount, contract rate, inclusive of any adjustment factors, and approved program calendar, by a California state preschool program contractor.

(ag) (1) Effective no later than March 1, 2024, “part-time” means preschool services certified for a child for fewer than 25 hours per week.

(2) Effective no later than March 1, 2024, “full-time” means preschool services certified for a child for 25 or more hours per week.

(3) Notwithstanding the rulemaking provisions of the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code) and Section 33308.5, until regulations are filed with the Secretary of State to implement this subdivision, the department may implement this subdivision through management bulletins or similar letters of instruction on or before December 31, 2023.

(4) The department shall initiate a rulemaking action to adopt regulations to implement this subdivision no later than July 1, 2026.

(5) If the provisions of this subdivision are in conflict with the provisions of a memorandum of understanding reached pursuant to Section 10426 of the Welfare and Institutions Code, the memorandum of understanding shall be controlling without further legislative action, except that if such provisions of a memorandum of understanding require the expenditure of funds, the provisions shall not become effective unless approved by the Legislature in the annual Budget Act.

(ah) This section shall become inoperative on July 1, 2027, and, as of January 1, 2028, is repealed.

SEC. 2.

Section 8205 of the Education Code, as added by Section 2 of Chapter 73 of the Statutes of 2024, is amended to read: