Bill Text: CA AB555 | 2023-2024 | Regular Session | Amended

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Bill Title: California state preschool programs: reimbursement amounts: adjustment factors.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Engrossed) 2023-09-01 - In committee: Held under submission. [AB555 Detail]

Download: California-2023-AB555-Amended.html

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Amended  IN  Senate  July 12, 2023

Amended  IN  Assembly  May 01, 2023

Amended  IN  Assembly  March 30, 2023

CALIFORNIA LEGISLATURE— 2023–2024 REGULAR SESSION

Assembly Bill

No. 555

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Introduced by Assembly Member Juan Carrillo

February 08, 2023

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An act to amend Sections 8210, 8211, and 8242 of, and to amend, repeal, and add Section 8244 of, the Education Code, relating to preschool.

LEGISLATIVE COUNSEL'S DIGEST

AB 555, as amended, Juan Carrillo. California state preschool programs: reimbursement amounts: adjustment factors.

Existing law, the Early Education Act, among other things, requires the Superintendent of Public Instruction to administer all California state preschool programs, including, but not limited to, part-day and full-day age and developmentally appropriate programs for 3- and 4-year-old children. Existing law requires each state preschool program applicant or contracting agency to give priority for part-day and full-day programs according to a specified priority ranking. Existing law requires the 3rd priority for services to be given to eligible 4-year-old children who are not enrolled in a state-funded transitional kindergarten program and requires the 4th priority to be given to eligible 3-year-old children.

This bill would instead require the 3rd priority for services to be given to eligible 3- and 4-year old children who are not enrolled in a state-funded transitional kindergarten program, and would revise the remaining priorities accordingly.

Existing law requires the State Department of Education, in collaboration with the State Department of Social Services, to implement a reimbursement system plan that establishes reasonable standards and assigned reimbursement rates, which vary with the length of the program year and the hours of service, for purposes of the act. Existing law requires those contractors who, as of December 31, 2021, received the established standard reimbursement rate to be reimbursed at the greater of the 75th percentile of the 2018 regional market rate survey or the contract per-child reimbursement amount as of December 31, 2021, as increased by a specified cost-of-living adjustment.

This bill would instead require, for a contract whose period of performance begins on and after July 1, 2023, the contract reimbursement to be based on the lesser of the maximum reimbursable amount stated in the contract, the net reimbursable program costs, or the product of the adjusted child days of enrollment for certified children times the contract rate set forth in the above-described provisions.

Existing law establishes adjustment factors to reflect the additional expense of serving full-day and part-day preschool children who have exceptional needs, are being provided with early childhood mental health consultation services, or are 47 months or younger, as provided. Existing law additionally establishes adjustment factors to reflect the additional expense of serving full-day preschool children who are at risk of neglect, abuse, or exploitation or who are dual language learners. Existing law prohibits days of enrollment for children who meet more than one of the criteria eligible for adjustment from being reported under more than one of those categories.

This bill would, on and after July 1, 2024, additionally apply those adjustment factors for children who are at risk of neglect, abuse, or exploitation or who are dual language learners to part-day preschool children. The bill would also eliminate the prohibition on reporting children under more than one of the above-specified categories eligible for adjustment. adjustment and make conforming changes.

Digest Key

Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

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Bill Text

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

SECTION 1.

 Section 8210 of the Education Code is amended to read:

8210.

 (a) Each applicant or contracting agency shall give priority for part-day programs according to the following:

(1) The first priority for services shall be given to three-year-old or four-year-old children who are recipients of child protective services or who are at risk of being neglected, abused, or exploited and for whom there is a 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 resources and referral services so that services for the child can be located.

(2) (A) To the extent that there are additional three- and four-year-old children with exceptional needs interested in enrolling beyond those already enrolled in the percent of funded enrollment set aside pursuant to Section 8208, the second priority for services shall be given to all three- and four-year-old children with exceptional needs from families with incomes below the income eligibility threshold, as described in Section 8213.

(B) Within this priority category, children with exceptional needs from families with the lowest income according to the income ranking on the most recent schedule of income ceiling eligibility table, as published by the Superintendent at the time of enrollment, shall be enrolled first.

(3) (A) The third priority for services shall be given to eligible three- and four-year-old children who are not enrolled in a state-funded transitional kindergarten program. This priority shall not include children eligible pursuant to subparagraph (E) of paragraph (1) of subdivision (a) of Section 8208 if they are from families with incomes above the income eligibility threshold, as described in Section 8213.

(B) (i) Within this priority category, eligible children with the lowest income according to the income ranking on the most recent schedule of income ceiling eligibility table, as published by the Superintendent at the time of enrollment, shall be enrolled first.

(ii) If two or more families have the same income ranking according to the most recent schedule of income ceiling eligibility table, a child from a family in which the primary home language is a language other than English shall be enrolled first.

(iii) If there are no children from a family in which the primary home language is a language other than English, the child that has been on the waiting list for the longest time shall be admitted first.

(4) The fourth priority, after all otherwise eligible children have been enrolled, shall be children from families whose income is no more than 15 percent above the eligibility income threshold, as described in Section 8213. Within this priority category, priority shall be given to three- and four-year-old children with exceptional needs interested in enrolling beyond those already enrolled in the 10 percent of funded enrollment set aside pursuant to Section 8208, then to four-year-old children before three-year-old children without exceptional needs.

(5) After all otherwise eligible children have been enrolled in the first through fourth priority categories, as described in paragraphs (1) to (4), inclusive, the contractor may enroll the children in the following order:

(A) A California preschool program site operating within the attendance boundaries of a qualified free and reduced priced meals school, in accordance with Section 8217, may enroll any three- or four-year-old children whose families reside within the attendance boundary of the qualified elementary school. These children shall, to the extent possible, be enrolled by lowest to highest income according to the most recent schedule of income ceiling eligibility table.

(B) Children enrolling in the California state preschool program to provide expanded learning and care to transitional kindergarten or kindergarten pupils, pursuant to subdivision (l) of Section 48000.

(b) The Superintendent shall set criteria for, and may grant specific waivers of, the priorities established in this section 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) (1) Children with exceptional needs enrolled in the percent of funded enrollment set aside pursuant to paragraph (1) of subdivision (c) of Section 8208 shall be enrolled without regard to the priorities listed in subdivision (a).

(2) Within this category, eligible children with the lowest income according to the income ranking on the most recent schedule of income ceiling eligibility table, as published by the Superintendent at the time of enrollment, shall be enrolled first.

(3) If two or more families have the same income ranking according to the most recent schedule of income ceiling eligibility table, the child that has been on the waiting list for the longest time shall be admitted first.

SEC. 2.

 Section 8211 of the Education Code is amended to read:

8211.

 (a) Each applicant or contracting agency shall give priority for full-day programs according to the following:

(1) The first priority for services shall be given to three-year-old or four-year-old 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 resources and referral services so that services for the child can be located.

(2) (A) To the extent that there are additional three- and four-year-old children with exceptional needs interested in enrolling beyond those already enrolled in the percent of funded enrollment set aside pursuant to paragraph (1) of subdivision (c) of Section 8208, the second priority for services shall be given to all three- and four-year-old children with exceptional needs from families with incomes below the income eligibility threshold, described in Section 8213.

(B) Within this priority category, children with exceptional needs from families with the lowest income according to the income ranking on the most recent schedule of income ceiling eligibility table, as published by the Superintendent at the time of enrollment, shall be enrolled first.

(3) (A) The third priority for services shall be given to eligible three- and four-year-old children who are not enrolled in a state-funded transitional kindergarten program. This priority shall not include children eligible pursuant to subparagraph (E) of paragraph (1) of subdivision (a) of Section 8208 if they are from families with incomes above the income eligibility threshold, as described in Section 8213.

(B) (i) Within this priority category, eligible children with the lowest income according to the income ranking on the most recent schedule of income ceiling eligibility table, as published by the Superintendent at the time of enrollment, shall be enrolled first.

(ii) If two or more families have the same income ranking according to the most recent schedule of income ceiling eligibility table, a child from a family in which the primary home language is a language other than English shall be enrolled first.

(iii) If there are no children from a family in which the primary home language is a language other than English, the child that has been on the waiting list for the longest time shall be admitted first.

(4) The fourth priority, after all otherwise eligible children have been enrolled, shall be children from families whose income is no more than 15 percent above the income eligibility threshold, as described in Section 8213. Within this priority category, priority shall be given to three- and four-year-old children with an individualized family service plan or individualized education program, then four-year-old children before three-year-old children without an individualized family service plan or individualized education program.

(5) After all otherwise eligible children have been enrolled in the first through fourth priority categories, as described in paragraphs (1) to (4), inclusive, the contractor may enroll the children in the following order:

(A) The contractor may enroll three- and four-year-old children from families that meet eligibility criteria pursuant to paragraph (4) of subdivision (d) of Section 8208. Within this priority, contractors shall enroll families in income ranking order, lowest to highest, and within income ranking order, enroll four-year-old children before three-year-old children.

(B) For California state preschool program sites operating within the attendance boundaries of a qualified free and reduced priced meals school, in accordance with Section 8217, the contractor may enroll any three- and four-year-old children whose families reside within the attendance boundary of the qualified school without establishing eligibility or a need for services pursuant to paragraph (1) or (3) of subdivision (d) of Section 8208. These families shall, to the extent possible, be enrolled in income ranking order, lowest to highest.

(b) The Superintendent shall set criteria for, and may grant specific waivers of, the priorities established in this section 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) (1) Children with exceptional needs enrolled in the percent of funded enrollment set aside pursuant to paragraph (1) of subdivision (c) of Section 8208 shall be enrolled without regard to the priorities listed in subdivision (a).

(2) Within this category, eligible children with the lowest income according to the income ranking on the most recent schedule of income ceiling eligibility table, as published by the Superintendent at the time of enrollment, shall be enrolled first.

(3) If two or more families have the same income ranking according to the most recent schedule of income ceiling eligibility table, the child that has been on the waiting list for the longest time shall be admitted first.

SEC. 3.Section 8242 of the Education Code is amended to read:

8242.

(a)The department, in collaboration with the State Department of Social Services, shall implement a reimbursement system 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)The department may establish any regulations deemed advisable concerning conditions of service and hours of enrollment for children in the programs.

(b)(1)(A)Commencing July 1, 2021, the standard reimbursement rate shall be twelve thousand nine hundred sixty-eight dollars ($12,968).

(B)Commencing July 1, 2021, the standard reimbursement rate for part-day California state preschool programs shall be five thousand six hundred twenty-one dollars ($5,621).

(2)Commencing in the 2022–23 fiscal year, the standard reimbursement rates described in paragraph (1) shall be increased by the cost-of-living adjustment granted by the Legislature annually pursuant to Section 42238.15.

(c)(1)Commencing January 1, 2022, contractors who, as of December 31, 2021, received the standard reimbursement rate established in this section shall be reimbursed at the greater of the following:

(A)The 75th percentile of the 2018 regional market rate survey.

(B)The contract per-child reimbursement amount as of December 31, 2021, as increased by the cost-of-living adjustment pursuant to paragraph (2) of subdivision (b).

(2)In accordance with federal requirements for Child Care Stabilization Grants appropriated pursuant to the federal American Rescue Plan Act of 2021 (Public Law 117-2), contractors shall provide information via a one-time application or survey in advance of receiving American Rescue Plan Act funds. The department shall specify the timeline and format in which this information shall be submitted, and the information shall include, but not be limited to, all of the following:

(A)Address, including ZIP Code.

(B)Race and ethnicity.

(C)Gender.

(D)Whether the provider is open and available to provide childcare services or closed due to the COVID-19 public health emergency.

(E)What types of federal relief funds have been received from the state.

(F)Use of federal relief funds received.

(G)Documentation that the provider met certifications as required by federal law.

(3)Rate increases shall be subject to federal usage limitations and federal and state program eligibility requirements.

(d)For a contract whose period of performance begins on and after July 1, 2023, the contract reimbursement shall be based on the lesser of the following:

(1)The maximum reimbursable amount stated in the contract.

(2)Net reimbursable program costs.

(3)The product of the adjusted child days of enrollment for certified children times the contract rate set forth in this section.

SEC. 3.

 Section 8242 of the Education Code is amended to read:

8242.

 (a) The department, in collaboration with the State Department of Social Services, shall implement a reimbursement system 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) The department may establish any regulations deemed advisable concerning conditions of service and hours of enrollment for children in the programs.

(b) (1) (A) Commencing July 1, 2021, the standard reimbursement rate shall be twelve thousand nine hundred sixty-eight dollars ($12,968).

(B) Commencing July 1, 2021, the standard reimbursement rate for part-day California state preschool programs shall be five thousand six hundred twenty-one dollars ($5,621).

(2) Commencing in the 2022–23 fiscal year, the standard reimbursement rates described in paragraph (1) shall be increased by the cost-of-living adjustment granted by the Legislature annually pursuant to Section 42238.15.

(c) (1) Commencing January 1, 2022, contractors who, as of December 31, 2021, received the standard reimbursement rate established in this section shall be reimbursed at the greater of the following:

(A) The 75th percentile of the 2018 regional market rate survey.

(B) The contract per-child reimbursement amount as of December 31, 2021, as increased by the cost-of-living adjustment pursuant to paragraph (2) of subdivision (b).

(2) Commencing July 1, 2022, subject to available funding, the department may issue temporary rate increases to contractors that exceed the rates specified in paragraph (1) and the reimbursement rate supplements described in Section 51 of Chapter 571 of the Statutes of 2022.

(3) In accordance with federal requirements for Child Care Stabilization Grants appropriated pursuant to the federal American Rescue Plan Act of 2021 (Public Law 117-2), contractors shall provide information via a one-time application or survey in advance of receiving American Rescue Plan Act funds. The department shall specify the timeline and format in which this information shall be submitted, and the information shall include, but not be limited to, all of the following:

(A) Address, including ZIP Code.

(B) Race and ethnicity.

(C) Gender.

(D) Whether the provider is open and available to provide childcare services or closed due to the COVID-19 public health emergency.

(E) What types of federal relief funds have been received from the state.

(F) Use of federal relief funds received.

(G) Documentation that the provider met certifications as required by federal law.

(4) Rate increases shall be subject to federal usage limitations and federal and state program eligibility requirements.

(d) For a contract whose period of performance begins on and after July 1, 2023, the contract reimbursement shall be based on the lesser of the following:

(1) The maximum reimbursable amount stated in the contract.

(2) Net reimbursable program costs.

(3) The product of the adjusted child days of enrollment for certified children times the contract rate set forth in this section.

SEC. 4.

 Section 8244 of the Education Code is amended to read:

8244.

 (a) In order to reflect the additional expense of serving full-day preschool children who meet any of the criteria outlined in subdivision (b), the contractor’s reported child days of enrollment for these children shall be multiplied by the adjustment factors listed below.

(b) Notwithstanding any other law, the adjustment factors shall be as follows:

(1) For children with exceptional needs, including children with severe disabilities, the adjustment factor shall be 2.4.

(2) For children at risk of neglect, abuse, or exploitation, the adjustment factor shall be 1.1.

(3) For dual language learner children, the adjustment factor shall be 1.2.

(4) When early childhood mental health consultation services are provided, pursuant to Section 8243, the adjustment factor shall be 1.1.

(5) For children 47 months or younger, the adjustment factor shall be 1.8.

(c) In order to reflect the additional expense of serving part-day preschool children, the contractor’s reported child days of enrollment for children meeting the criteria in paragraph (1), (4), or (5) of subdivision (b) shall be multiplied by the adjustment factors in those subdivisions.

(d) Use of the adjustment factors shall not increase the contractor’s total annual allocation.

(e) (1) Days of enrollment for children who meet more than one of the criteria outlined in paragraphs (1) to (3), inclusive, and (5) of subdivision (b) shall not be reported under more than one of the categories specified in those paragraphs.

(2) Notwithstanding paragraph (1), for children for whom an adjustment factor is applied pursuant to any of paragraphs (1) to (3), inclusive, and (5) of subdivision (b), and who are additionally eligible for the adjustment factor established in paragraph (4) of subdivision (b), reported child days of enrollment shall be multiplied by the sum of the applicable adjustment factor under paragraphs (1) to (3), inclusive, and (5) of subdivision (b) and 0.1.

(f) The difference between the reimbursement resulting from the use of the adjustment factors outlined in subdivision (b) and the reimbursement that would otherwise be received by a provider in the absence of the adjustment factors shall be used for special and appropriate services for each child for whom an adjustment factor is claimed.

(g) This section shall become inoperative on July 1, 2024, and, as of January 1, 2025, is repealed.

SEC. 5.

 Section 8244 is added to the Education Code, to read:

8244.

 (a) In order to reflect the additional expense of serving part-day and full-day preschool children who meet any of the criteria outlined in subdivision (b), the contractor’s reported child days of enrollment for these children shall be multiplied by the adjustment factors listed below.

(b) Notwithstanding any other law, the adjustment factors shall be as follows:

(1) For children with exceptional needs, including children with severe disabilities, the adjustment factor shall be 2.4.

(2) For children at risk of neglect, abuse, or exploitation, the adjustment factor shall be 1.1.

(3) For dual language learner children, the adjustment factor shall be 1.2.

(4) When early childhood mental health consultation services are provided, pursuant to Section 8243, the adjustment factor shall be 1.1.

(5) For children 47 months or younger, the adjustment factor shall be 1.8.

(c) Use of the adjustment factors shall not increase the contractor’s total annual allocation.

(d) For children for whom an adjustment factor is applied pursuant to any of paragraphs (1) to (3), inclusive, and (5) of subdivision (b), and who are additionally eligible for the adjustment factor established in paragraph (4) of subdivision (b), reported child days of enrollment shall be multiplied by the sum of the product of all applicable adjustment factor factors under paragraphs (1) to (3), inclusive, and (5) of subdivision (b) and 0.1.

(e) The difference between the reimbursement resulting from the use of the adjustment factors outlined in subdivision (b) and the reimbursement that would otherwise be received by a provider in the absence of the adjustment factors shall be used for special and appropriate services for each child for whom an adjustment factor is claimed.

(f) This section shall become operative on July 1, 2024.