Bill Text: CA AB603 | 2017-2018 | Regular Session | Chaptered

California Assembly Bill 603 (Prior Session Legislation)

Bill Title: Child care: alternative payment programs: child care providers: electronic payments: notice of service changes.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Passed) 2017-10-12 - Chaptered by Secretary of State - Chapter 706, Statutes of 2017. [AB603 Detail]

Download: California-2017-AB603-Chaptered.html

Assembly Bill No. 603

CHAPTER 706

An act to add Sections 8227.2 and 8227.7 to the Education Code, relating to child care services.

[ Approved by Governor October 12, 2017. Filed with Secretary of State October 12, 2017. ]

LEGISLATIVE COUNSEL'S DIGEST

AB 603, Quirk-Silva. Child care: alternative payment programs: child care providers: electronic payments: notice of service changes.

The Child Care and Development Services Act, administered by the State Department of Education, requires the Superintendent of Public Instruction to administer child care and development programs that offer a full range of services to eligible children from infancy to 13 years of age, inclusive. The act requires the department to contract with local contracting agencies to provide for alternative payment programs, and authorizes alternative payments to be made for child care services, as provided. The act requires child care providers authorized to provide services to submit to the alternative payment program a monthly attendance record or invoice for each child who received services, as provided. Existing law requires alternative payment programs to reimburse licensed child care providers in accordance with a biennial market rate survey, as provided.

This bill would require, on or before July 1, 2019, an alternative payment program to establish a program of electronic banking for payments made to licensed or license-exempt child care providers that have a contract with that alternative payment program, as provided. The bill would require, commencing July 1, 2019, alternative payment programs to provide notice to a child care provider of any changes to service, as provided.

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

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

SECTION 1.

The Legislature finds and declares all of the following:

(a) The state has a responsibility to ensure accountability, transparency, and efficiency regarding funds allocated for the provision of subsidized child care for working families.

(b) Programs operated by the state should be cost-effective, streamlined, and simple to administer in order to ensure adequate care for children placed with child care providers, while not placing undue burdens on the child care providers.

(c) The state has a compelling interest to retain quality family day care providers, promote best practices, fiscal accountability, and reduce fraud and waste in California’s system of subsidized child care.

SEC. 2.

Section 8227.2 is added to the Education Code, to read:

8227.2.

(a) (1) On or before July 1, 2019, an alternative payment program shall establish a program of electronic banking for payments made to licensed or license-exempt child care providers that have a contract with that alternative payment program, including, but not limited to, direct deposit. A child care provider may choose to receive payments via electronic banking at the child care provider’s option. The child care provider may, but is not required to, authorize payment to be directly deposited by an electronic fund transfer into the child care provider’s account at the financial institution of his or her choice.

(2) Nothing in this subdivision shall preclude an alternative payment program that has an electronic banking program in place before the effective date of this subdivision from continuing to require a child care provider, including child care centers and family day care homes, to accept direct deposit or another form of electronic payment after the effective date of this subdivision.

(b) An alternative payment program shall include a description of the payment to the child care provider, by child served and month of service covered by the payment.

SEC. 3.

Section 8227.7 is added to the Education Code, to read:

8227.7.

(a) Commencing July 1, 2019, alternative payment programs shall provide notice to a child care provider of a change in reimbursement amounts for child care services, a change in the hours of care, rates, or schedules, an increase or decrease in parent fees, or a termination of services. For purposes of this section, the notice shall occur either electronically, if requested by the child care provider, or via the United States Postal Service. The alternative payment program shall provide the notice at least 14 calendar days before the effective date of the intended action.

(b) The notification shall not be deemed a violation of the parent’s confidentiality but as a method to ensure the proper administration of subsidy funds.