8265.
(a) The Superintendent shall implement a reimbursement system plan that establishes reasonable standards and assigned reimbursement rates, which vary with the regional reimbursement ceiling adopted pursuant to Section 8357, a quality adjustment factor to address the cost of staffing ratios pursuant to Section 8264.8, the length of the program year, the hours of service, and any additional adjustment factors pursuant to paragraphs (1) to (5), inclusive, of subdivision (b) of Section 8265.5.(1) Parent fees shall be used to pay reasonable and necessary costs for providing additional services.
(2) When establishing standards
and assigned reimbursement rates, the Superintendent shall confer with applicant agencies.
(3) The reimbursement system plan, including methodology, standards, county rate targets as established by the Superintendent pursuant to subdivision (g), and the total statewide funding amount necessary to reach annual rate targets for all agencies shall be annually submitted to the Joint Legislative Budget Committee, on or before November 10.
(4) The Superintendent may establish any regulations the Superintendent deems advisable concerning conditions of service and hours of enrollment for children in the programs.
(b) Commencing July 1, 2018, the standard reimbursement rate shall be eleven thousand nine hundred ninety-five dollars ($11,995)
and, commencing with the 2019–20 fiscal year, shall be increased by the cost-of-living adjustment granted by the Legislature annually pursuant to Section 42238.15. Commencing July 1, 2018, the full-day state preschool reimbursement rate shall be twelve thousand seventy dollars ($12,070) and, commencing with the 2019–20 fiscal year, shall be increased by the cost-of-living adjustment granted by the Legislature annually pursuant to Section 42238.15.
(c) The reimbursement system plan shall require agencies having an assigned reimbursement rate above the current year standard reimbursement rate to reduce costs on an incremental basis to achieve the standard reimbursement rate.
(d) (1) The reimbursement system plan shall provide for adjusting reimbursement on a case-by-case basis, in order to maintain service levels for
agencies. Assigned reimbursement rates shall be increased only on the basis of one or more of the following:
(A) Loss of program resources from other sources.
(B) Need of an agency to pay the same childcare rates as those prevailing in the local community.
(C) Increased costs directly attributable to new or different regulations.
(D) Documented increased costs necessary to maintain the prior year’s level of service and ensure the continuation of threatened programs.
(2) Childcare agencies funded at the lowest rates shall be given first priority
for increases.
(e) The reimbursement system plan shall provide for expansion of child development programs at no more than the standard reimbursement rate for that fiscal year.
(f) The Superintendent may reduce the percentage of reduction for a public agency that satisfies any of the following:
(1) Serves more than 400 children.
(2) Has in effect a collective bargaining agreement.
(3) Has other extenuating circumstances that apply, as determined by the Superintendent.
(g) (1) Notwithstanding subdivision (b) of Section 8265.5, on or before July 1, 2020, and annually thereafter, the department shall establish a reimbursement rate target for each contracting agency that meets quality standards pursuant to Sections 8203, 8208, 8244, 8261, 8264.7, 8360, and 8360.1, and any regulations adopted thereunder, based on all of the following elements:
(A) The regional market rate ceilings for the contracting agency’s county, as applicable, pursuant to paragraphs (1) and (2) of subdivision (b) of Section 8357.
(B) The quality adjustment factor for the age range of children proposed to be served by the contracting agency, as a multiplier, specified in paragraph (3).
(C) The program year and
hours of service reimbursement factor pursuant to Section 8266.1, if applicable.
(D) Additional adjustment factors for special circumstances or services, pursuant to paragraphs (1) to (5), inclusive, of subdivision (b) of Section 8265.5, if applicable.
(2) A contracting agency’s rate target shall not be less than that agency’s 2018 rate, by age range, pursuant to 8265.5.
(3) The department, in order to meet the costs of providing quality standards pursuant to Sections 8203, 8208, 8244, 8261, 8264.7, 8360, and 8360.1, and any regulations adopted thereunder beyond those calculated in the regional market rate survey, shall establish quality adjustment factors for all of the following age ranges:
(A) For infants who are zero to 18 months of age, the adjustment factor shall be 1.23.
(B) For toddlers who are 18 to 36 months of age, the adjustment factor shall be 1.23.
(C) For preschoolers who are 36 months to six years of age, the adjustment factor shall be 1.23.
(D) For schoolage children who are six years of age and older, the adjustment factor shall be 1.03.
(4) The reimbursement system plan shall include a formula for annually adjusting reimbursement rates for each agency, based on all of the following:
(A) The annual Budget Act funding allocated for standard reimbursement rate increases pursuant to this section.
(B) An equitable distribution of standard reimbursement rate increases to agencies, by county, as an equal percentage of the county outstanding rate target, for purposes of meeting the targets identified pursuant to this subdivision.
(C) Funding allocated for cost-of-living adjustments, if applicable.
(h) (1) Except as provided in paragraph (2), this section shall become operative on July 1, 2020.
(2) Notwithstanding any other law, this section shall not be operative unless
an appropriation is made for those purposes in the annual Budget Act or any other statute. If no appropriation is made, this section as it existed on December 31, 2019, shall be operative.