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

NOTE: There are more recent revisions of this legislation. Read Latest Draft
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-Introduced.html


CALIFORNIA LEGISLATURE— 2023–2024 REGULAR SESSION

Assembly Bill
No. 555


Introduced by Assembly Member Juan Carrillo

February 08, 2023


An act to amend Sections 8205, 8210, 8211, 8242, and 8244 of the Education Code, and to amend Section 1596.7925 of the Health and Safety Code, relating to preschool.


LEGISLATIVE COUNSEL'S DIGEST


AB 555, as introduced, Juan Carrillo. California state preschool programs.
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 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 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, and would remove that prohibition for children who meet more than one of the criteria eligible for adjustment from being reported.
Existing law, the California Child Day Care Facilities Act, provides for the licensure and regulation of child day care facilities, day care centers, and family day care homes by the State Department of Social Services. The act exempts from its provisions certain types of these facilities and certain programs, including, among others, a California state preschool program operated by a local educational agency under contract with the State Department of Education and that meets specified conditions and operates in a school building. Existing law requires the State Department of Education to adopt new specified health and safety regulations, on or before July 1, 2019, to apply to California state preschool programs meeting the conditions for an exemption from the act. Existing law requires any child under 4 years of age in a California state preschool program to be served in a licensed facility.
This bill would remove that requirement for a child under 4 years of age in a California state preschool program to be served in a licensed facility, and would authorize the State Department of Education to, commencing July 1, 2023, exempt a California state preschool program described above from licensing under the act if the children served are 3 or 4 years of age or transitional kindergarten or kindergarten pupils. The bill would require the department to implement this provision through management bulletins or similar letters or instruction before August 1, 2023, and to initiative a rulemaking action on or before December 31, 2024.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

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


SECTION 1.

 Section 8205 of the Education Code 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, 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.
(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.
(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 and shall be receiving early intervention services or appropriate special education.
(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) 124024) 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.
(C) Meet the qualifications of a program director under Section 8298.
(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 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) “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.
(ac) “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.).
(ad) “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.
(ae) “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.

SEC. 2.

 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 shall be given to eligible three-year-old children. 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. Enrollment determinations within this priority category shall be made pursuant to subparagraph (B) of paragraph (3).

(5)

(4) The fifth 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.

(6)

(5) After all otherwise eligible children have been enrolled in the first through fifth fourth priority categories, as described in paragraphs (1) to (5), (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. 3.

 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 shall be given to eligible three-year-old children. 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. Enrollment determinations within this priority category shall be made pursuant to subparagraph (B) of paragraph (3).

(5)

(4) The fifth 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.

(6)

(5) After all otherwise eligible children have been enrolled in the first through fifth fourth priority categories, as described in paragraphs (1) to (5), (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. 4.

 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) Notwithstanding any other law, the reimbursement rate shall be based on the lesser of the following:
(1) The maximum reimbursable rate 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. 5.

 Section 8244 of the Education Code is amended 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 2.40.
(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)

(c) 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

(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 applicable adjustment factor under paragraphs (1) to (3), inclusive, and (5) of subdivision (b) and 0.1.

(f)

(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.

SEC. 6.

 Section 1596.7925 of the Health and Safety Code is amended to read:

1596.7925.
 (a) On or before July 1, 2019, the State Department of Education shall adopt new health and safety regulations under Title 5 of the California Code of Regulations that apply to California state preschool programs that meet the conditions specified in subdivision (o) of Section 1596.792. The regulations shall require those programs to have all of the following:
(1) Outdoor shade that is safe and in good repair.
(2) Drinking water that is accessible and readily available throughout the day.
(3) Safe and sanitary restroom facilities with one toilet and handwashing fixture for every 15 children.
(4) Restroom facilities that are only available for preschoolers and kindergartners.
(5) Visual supervision of children at all times.
(6) Indoor and outdoor space that is properly contained or fenced and provides sufficient space for the number of children using the space at any given time. Playground equipment must be safe, in good repair, and age appropriate.
(b) The State Department of Education may adopt emergency regulations pursuant to Section 11346.1 of the Government Code to satisfy the requirements of this section. The adoption of emergency regulations shall be deemed an emergency and necessary for the immediate preservation of the public peace, health, safety, or general welfare.
(c) A violation of regulations adopted pursuant to subdivision (a) or (b) shall not be subject to Section 1596.890.
(d) (1) Commencing July 1, 2023, the State Department of Education shall allow California state preschool programs that meet the conditions specified in subdivision (o) of Section 1596.792 to operate as license exempt if the children served in the classroom meet the age eligibility requirements specified in subdivisions (aa) and (ab) of Section 8205 of, and subdivision (l) of Section 48000 of, the Education Code.
(2) 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 of the Education Code, until regulations are filed with the Secretary of State to implement this subdivision, the State Department of Education shall implement this subdivision through management bulletins or similar letters of instruction on or before August 1, 2023.
(3) The State Department of Education shall initiate a rulemaking action to implement this subdivision on or before December 31, 2024.

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