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2013 CA S 192
Author: Liu
Version: Amended
Version Date: 08/04/2014

AMENDED IN SENATE March 12, 2013

AMENDED IN SENATE April 03, 2013

AMENDED IN SENATE April 16, 2013

AMENDED IN SENATE May 28, 2013

AMENDED IN ASSEMBLY June 14, 2013

AMENDED IN ASSEMBLY August 05, 2013

AMENDED IN ASSEMBLY June 18, 2014

AMENDED IN ASSEMBLY August 04, 2014

CALIFORNIA LEGISLATURE--2013-2014 REGULAR SESSION

Senate Bill

No. 192

Introduced by Senator Liu

February 07, 2013

An act to amend Sections 8200, 8201, 8202, 8203, 8203.5, 8204, 8205, 8206, 8208, 8208.1, 8208.5, 8209, 8210, 8211, 8212, 8212.3, 8213, 8214, 8215, 8216, 8220, 8220.1, 8220.5, 8222, 8223, 8225, 8226, 8227, 8230, 8232, 8233, 8235, 8236, 8236.1, 8238.4, 8239, 8244, 8250, 8250.5, 8251, 8252, 8255, 8257, 8258, 8261, 8261.5, 8262, 8263, 8263.2, 8263.3, 8263.4, 8264, 8264.5, 8264.6, 8264.7, 8265, 8266, 8266.1, 8272, 8275, 8276.7, 8277, 8277.8, 8278.3, 8279.1, 8279.3, 8279.4, 8279.5, 8279.7, 8282, 8320, 8321, 8324, 8327, 8328, 8329, 8335.1, 8335.5, 8347, 8347.2, 8347.3, 8347.4, 8350, 8352, 8353, 8354, 8355, 8356, 8357, 8358, 8358.5, 8359.1, 8360, 8360.2, 8400, 8401, 8402, 8406.7, 8447, 8448, 8450, 8493, 8494, 8495, 8495.1, 8498, 8499, 8499.3, and 8499.5 of, to amend the heading of Chapter 2 (commencing with Section 8200) of Part 6 of Division 1 of Title 1 of, to amend the headings of Article 6 (commencing with Section 8230), Article 7 (commencing with Section 8235), Article 8 (commencing with Section 8240), Article 9 (commencing with Section 8250), Article 15.2 (commencing with Section 8335), Article 15.4 (commencing with Section 8347), Article 15.5 (commencing with Section 8350), and Article 16 (commencing with Section 8360), of Chapter 2 of Part 6 of Division 1 of Title 1 of, to amend the heading of Article 2 (commencing with Section 8499.3) of Chapter 2.3 of Part 6 of Division 1 of Title 1 of, to amend, repeal, and add Sections Section 8231 and 8240 of, to add Sections 8220.3 and Section 8220.6 to, to add Article 5 (commencing with Section 8228) to Chapter 2 of Part 6 of Division 1 of Title 1 of, and to repeal and add Sections 8264.8 and 8360.1 of, the Education Code, relating to early learning and educational support services.

LEGISLATIVE COUNSEL'S DIGEST

SB 192, as amended, Liu. Early learning and educational support services.

The Child Care and Development Services Act, administered by the Superintendent of Public Instruction, requires the Superintendent to administer child care and development programs that offer a full range of services for eligible children from infancy to 13 years of age and their parents, including a full range of supervision, health, and support services through full- and part-time programs.

This bill would reorganize and recast those provisions as the Early Learning and Educational Support Act, and would require the Superintendent to develop standards for the implementation of high-quality early learning and educational support programs based on certain indicia of quality, including, but not limited to, program activities and services that meet the needs of children with exceptional needs and diverse abilities. The bill would require certain information to be given to parents who receive services from resource and referral programs and alternative payment programs. The bill would delete obsolete provisions, make other related and conforming changes, and make nonsubstantive changes.

Vote Required: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO Immediate Effect NO Urgency: NO Tax Levy: NO Election: NO Usual Current Expenses: NO Budget Bill: NO Prop 25 Trailer Bill: NO

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

SECTION 1. The heading of Chapter 2 (commencing with Section 8200) of Part 6 of Division 1 of Title 1 of the Education Code is amended to read:

CHAPTER 2. Early Learning and Educational Support Act

SEC. 2. Section 8200 of the Education Code is amended to read:

8200. This chapter shall be known and may be cited as the Early Learning and Educational Support Act.

SEC. 3. Section 8201 of the Education Code is amended to read:

8201. The purpose of this chapter is as follows:

(a) To provide a comprehensive, coordinated, and cost-effective system of early learning and educational support services for children from infancy to 13 years of age and their parents, including a full range of supervision, health, and support services through full- and part-time programs.

(b) To encourage community-level coordination in support of early learning and educational support services.

(c) To provide an environment that is healthy and nurturing for all children in early learning and educational support programs.

(d) To provide the opportunity for positive parenting to take place through understanding of human growth and development.

(e) To reduce strain between parent and child in order to prevent abuse, neglect, or exploitation.

(f) To enhance the cognitive development of children, with particular emphasis upon those children who require special assistance, including bilingual capabilities to attain their full potential.

(g) To establish a framework for the expansion of early learning and educational support services.

(h) To empower and encourage parents and families of children who require early learning and educational support services to take responsibility to review the safety of the program or facility and to evaluate the ability of the program or facility to meet the needs of the child.

SEC. 4. Section 8202 of the Education Code is amended to read:

8202. It is the intent of the Legislature that:

(a) All families have access to early learning and educational support services, through resource and referral services, where appropriate, regardless of ethnic status, cultural background, or special needs. It is further the intent that subsidized early learning and educational support services be provided to persons meeting the eligibility criteria established under this chapter to the extent funding is made available by the Legislature and Congress.

(b) The healthy physical, cognitive, social, and emotional growth and development of children be supported.

(c) Families achieve and maintain their personal, social, economic, and emotional stability through an opportunity to attain financial stability through employment, while maximizing growth and development of their children, and enhancing their parenting skills through participation in early learning and educational support programs.

(d) Community-level coordination in support of early learning and educational support services be encouraged.

(e) Families have a choice of programs that allow for maximum involvement in planning, implementation, operation, and evaluation of early learning and educational support programs.

(f) Parents and families be fully informed of their rights and responsibilities to evaluate the quality and safety of care programs, including, but not limited to, their right to inspect care licensing files.

(g) Planning for expansion of early learning and educational support programs be based on ongoing local needs assessments.

(h) The Superintendent, in providing funding to early learning and educational support agencies, promote a range of services that will allow parents the opportunity to choose the type of care most suited to their needs. The program scope may include the following:

(1) Programs located in centers, family care homes, or in the child's own home.

(2) Services provided part-day, full-day, and during nonstandard hours including weekend care, night and shift care, before and after school care, and care during holidays and vacation.

(3) Services provided for infants and toddlers, and preschool and schoolage children.

(i) The Superintendent be responsible for the establishment of a public hearing process or other public input process that ensures the participation of those agencies directly affected by a particular section or sections of this chapter.

SEC. 5. Section 8203 of the Education Code is amended to read:

8203. The Superintendent shall develop standards for the implementation of high-quality early learning and educational support programs. Indicators of quality shall include, but not be limited to:

(a) A physical environment that is safe and appropriate to the ages and developmental needs of the children and that meets applicable licensing standards.

(b) Program activities and services that are age appropriate and meet the developmental needs of each child.

(c) Program activities and services that meet the cultural and linguistic needs of children and families.

(d) Family and community involvement and engagement.

(e) Parent education.

(f) Efficient and effective local program administration.

(g) Staff that possesses the appropriate and required qualifications or experience, or both. The appropriate staff qualifications shall reflect the diverse linguistic and cultural makeup of the children and families in the early learning and educational support program. The use of intergenerational staff shall be encouraged.

(h) Program activities and services that meet the needs of children with exceptional needs and diverse abilities, and their families.

(i) Support services for children, families, and providers of care.

(j) Resource and referral services.

(k) Alternative payment services.

(l) Provision for nutritional needs of children.

(m) Social services that include, but are not limited to, identification of child and family needs and referral to appropriate agencies.

(n) Developmental and health services, as defined in subdivision (n) of Section 8208, that include referral of children to appropriate agencies for services.

SEC. 6. Section 8203.5 of the Education Code is amended to read:

8203.5. (a) The Superintendent shall ensure that each contract entered into under this chapter to provide early learning and educational support services, or to facilitate the provision of those services, promotes children's school readiness and subsequent school success through the delivery of appropriate high-quality educational services to the children served pursuant to the contract.

(b) The Superintendent shall ensure that all contracts for early learning services include a requirement that each provider maintain a developmental profile to appropriately identify the emotional, social, physical, and cognitive growth of each child served in order to promote the child's success in the public schools. To the extent possible, the department shall provide a developmental profile to all public and private providers using existing profile instruments that are most cost efficient. The provider of any program operated pursuant to a contract under Section 8262 shall be responsible for maintaining developmental profiles upon entry through exit from a program providing early learning services.

(c) This section is not subject to Part 34 (commencing with Section 62000) of Division 4 of Title 2.

SEC. 7. Section 8204 of the Education Code is amended to read:

8204. In recognition of the demonstrated relationship between food and good nutrition and the capacity of children to develop and learn, it is the policy of this state that no child shall be hungry while in attendance in a facility as defined in subdivision (i) of Section 8208 and that these facilities have an obligation to provide for the nutritional needs of children in attendance.

SEC. 8. Section 8205 of the Education Code is amended to read:

8205. It is the intent of the Legislature that, in providing early learning and educational support programs, the Superintendent give priority to children of families that qualify under applicable federal statutes or regulations as recipients of public assistance and other low-income and disadvantaged families. Federal reimbursement shall be claimed for any child receiving services under this chapter for whom federal funds are available.

SEC. 9. Section 8206 of the Education Code is amended to read:

8206. (a) The department is hereby designated as the single state agency responsible for the promotion, development, and provision of care of children in the absence of their parents during the workday or while engaged in other activities that require assistance of a third party or parties. The department shall administer the federal Child Care and Development Fund.

(b) For purposes of this section, "Child Care and Development Fund" has the same meaning as in Section 98.2 of Title 45 of the Code of Federal Regulations.

(c) The department may create a list of high-quality early learning and educational support resources to demonstrate high-quality options available to parents. If the department creates a list of resources, the list shall be posted on the department's Internet Web site and made available to both resource and referral programs and alternative payment programs.

SEC. 10. Section 8208 of the Education Code is amended to read:

8208. As used in this chapter:

(a) "Alternative payments" includes payments that are made by an alternative payment program to a licensed or license-exempt care provider for the provision of early learning and educational support services, and payments that are made by an alternative payment program to a parent for the parent's purchase of early learning and educational support services.

(b) "Alternative payment program" means a local government agency or nonprofit organization that has contracted with the department pursuant to Section 8220.1 to provide alternative payments and to provide support services to parents and providers.

(c) "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.

(d) "Assigned reimbursement rate" is that rate established by the contract with the agency and is derived by dividing the total dollar amount of the contract by the minimum child day of average daily enrollment level of service required.

(e) (1) "Attendance" means the number of children present at a facility where early learning and educational support services are provided.

(2) For purposes of reimbursement for early learning services, attendance includes excused absences of 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.

(3) For purposes of reimbursement to providers through an alternative payment program, attendance includes any of the following:

(A) The hours of service provided that are broadly consistent with certified hours of need.

(B) For families with variable schedules, the actual days and hours of attendance up to the maximum certified hours.

(C) In the case of license-exempt providers that provide part-time services, the actual days and hours of attendance.

(4) For purposes of reimbursement to providers through an alternative payment program, contractors shall not be required to track absences.

(f) "Capital outlay" means the amount paid for the renovation and repair of facilities to comply with state and local health and safety standards, and the amount paid for the state purchase of relocatable facilities for lease to qualifying contracting agencies.

(g) "Caregiver" means a person who provides direct care, supervision, and guidance to children in a child care and development facility.

(h) "Child care" or "care" means services provided by all licensed or license-exempt providers, including, but not limited to, private for-profit, nonprofit, and publicly funded programs, for all children from birth to 13 years of age, including children with exceptional needs and children from all linguistic and cultural backgrounds.

(i) "Child care and development facility" or "facility" means a residence or building or part of a residence or building in which early learning and educational support services are provided.

(j) "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.

(k) "Children with exceptional needs" means either of the following:

(1) Infants and toddlers 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, shall be receiving early intervention services, and shall be children who require the special attention of adults in a care setting.

(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, shall be receiving early intervention services or appropriate special education and related services, and shall be children who require the special attention of adults in a care setting. These children include children with intellectual disabilities, hearing impairments (including deafness), speech or language impairments, visual impairments (including blindness), serious emotional disturbance (also referred to as emotional disturbance), orthopedic impairments, autism, traumatic brain injury, other health impairments, or specific learning disabilities, who need special education and related services consistent with Section 1401(3)(A) of Title 20 of the United States Code.

(l) "Closedown costs" means reimbursements for all approved activities associated with the closing of operations of migrant child care and development programs, as described in Article 9 (commencing with Section 8230), at the end of each growing season for early learning programs serving migrant populations pursuant to Article 6 (commencing with Section 8230) season.

(m) "Cost" includes, but is not limited to, expenditures that are related to the operation of early learning and educational support 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.

(n) "Developmental and 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) Developmental and 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.

(o) "Early learning programs" means early learning and educational support programs that serve children from birth to 13 years of age, including, but not limited to, services for the following:

(1) Infants and toddlers pursuant to Article 8 (commencing with Section 8240).

(2) Preschool age children pursuant to Article 7 (commencing with Section 8235).

(3) Schoolage children pursuant to Article 8 (commencing with Section 8240).

(4) Children of migrant agricultural worker families pursuant to Article 6 (commencing with Section 8230).

(p)

(o) "Early learning services" means all of the following:

(1) Migrant child care and development programs pursuant to Article 6 (commencing with Section 8230).

(2) California State Preschool Programs pursuant to Article 7 (commencing with Section 8235).

(1) Early learning

(3) General child care and development programs pursuant to Article 8 (commencing with Section 8240).

(2)

(4) Family child care home education networks pursuant to Article 8.5 (commencing with Section 8245).

(3)

(5) Programs that serve severely disabled children pursuant to subdivision (d) of Section 8250.

(4)

(6) Services administered by the Superintendent pursuant to Article 5 (commencing with Section 8228).

(q)

(p) "Early learning and educational support programs" or "early learning and educational support services" means those programs or services that offer a full range of care and support services designed to meet a wide variety of needs of children, from birth to 13 years of age, and their families. Services provided by an applicant or contracting agency, may be for any part of the day that a parent is working, in training, seeking employment, incapacitated, or in need of respite. These services may include, but are not limited to, the following:

(1) Early learning services pursuant to Article 5 (commencing with Section 8228).

(2) Alternative payment programs pursuant to subdivision (b).

(r)

(q) "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 early learning and educational support programs, for the purpose of the cancellation provisions of loans to students in institutions of higher learning.

(s)

(r) "Family child care home education network" means an entity organized under law that contracts with the department pursuant to Section 8245 to make payments to licensed family child care home providers and to provide educational and support services to those providers and to children and families eligible for state-subsidized early learning and educational support services. A family child care home education network may also be referred to as a family child care home system.

(t)

(s) "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.

(u)

(t) "Intergenerational staff" means persons of various generations.

(v)

(u) "Limited-English-speaking-proficient and non-English-speaking-proficient children" means children who are unable to benefit fully from an English-only early learning and educational support program as a result of either of the following:

(1) Having used a language other than English when they first began to speak.

(2) Having a language other than English predominantly or exclusively spoken at home.

(w)

(v) "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.

(x)

(w) "Program director" means a person who, pursuant to Sections 8244 and 8360.1, is qualified to serve as a program director.

(y)

(x) "Proprietary agency" means an organization or facility providing early learning and educational support services, which is operated for profit.

(z)

(y) "Resource and referral programs" means programs that provide information to parents, including referrals and coordination of community resources for parents and public or private providers of care. Services frequently include, but are not limited to: technical assistance for providers, toy-lending libraries, equipment-lending libraries, toy- and equipment-lending libraries, staff development programs, health and nutrition education, and referrals to social services.

(aa)

(z) "Severely disabled children" 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. "Severely disabled children" 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.

(ab)

(aa) "Short-term respite child care" means care services to assist families whose children have been identified through written referral from a legal, medical, or social service agency, or emergency shelter as being neglected, abused, exploited, or homeless, or at risk of being neglected, abused, exploited, or homeless. Care is provided for less than 24 hours per day in centers, treatment centers for abusive parents, family child care homes, or in the child's own home.

(ac)

(ab) (1) "Site supervisor" means a person who, regardless of his or her title, has operational program responsibility for an early learning and educational support program at a single site. A site supervisor shall hold a permit or credential issued by the Commission on Teacher Credentialing that authorizes supervision of an early learning and educational support program operating in a single site. The Superintendent may waive the requirements of this subdivision if the Superintendent determines that the existence of compelling need is appropriately documented.

(2) For California state preschool programs, a site supervisor may qualify under any of the provisions of this subdivision, or may qualify by holding an administrative credential or an administrative services credential. A person who meets the qualifications of a program director under Sections 8244 and 8360.1 is also qualified under this subdivision.

(ad)

(ac) "Standard reimbursement rate" means that rate established by the Superintendent pursuant to Section 8265.

(ae)

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

(af)

(ae) "California state preschool program services" program" means part-day and full-day programs that provide developmentally appropriate educational activities and services designed to facilitate the transition to kindergarten for low-income or otherwise disadvantaged three- and four-year-old children.

(ag)

(af) "Support services" means those services that, when combined with early learning and educational support programs help promote the healthy physical, mental, social, and emotional growth of children. Support services include, but are not limited to: protective services, parent training, provider and staff training, transportation, parent and child counseling, resource and referral services, and child placement counseling.

(ah)

(ag) "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.

(ai)

(ah) "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 early learning and educational support services to the need for these services is low, as determined by the Superintendent.

(aj)

(ai) "Workday" means the time that the parent requires temporary care for a child for any of the following reasons:

(1) To undertake training in preparation for a job.

(2) To undertake or retain a job.

(3) To undertake other activities that are essential to maintaining or improving the social and economic function of the family, are beneficial to the community, or are required because of health problems in the family.

(ak)

(aj) "Three-year-old children" means children who will have their third birthday on or before the date specified of the fiscal year in which they are enrolled in a California state preschool program, as follows:

(1) November 1 of the 2012-13 fiscal year.

(2) October 1 of the 2013-14 fiscal year.

(3) September 1 of the 2014-15 fiscal year and each fiscal year thereafter.

(al)

(ak) "Four-year-old children" means children who will have their fourth birthday on or before the date specified of the fiscal year in which they are enrolled in a California state preschool program, as follows:

(1) November 1 of the 2012-13 fiscal year.

(2) October 1 of the 2013-14 fiscal year.

(3) September 1 of the 2014-15 fiscal year and each fiscal year thereafter.

(am)

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

SEC. 11. Section 8208.1 of the Education Code is amended to read:

8208.1. Care exempt from licensure is a valid parental choice of care for all programs provided for under this part, and no provision of this part shall be construed to exclude or discourage the exercise of that choice.

SEC. 12. Section 8208.5 of the Education Code is amended to read:

8208.5. Notwithstanding any other law, early learning and educational support programs, as defined in Section 8208, shall include, but not be limited to, respite care.

SEC. 13. Section 8209 of the Education Code is amended to read:

8209. (a) If a state of emergency is declared by the Governor, the Superintendent may waive any requirements of this code or regulations adopted pursuant to this code relating to early learning and educational support programs operated pursuant to this chapter only to the extent that enforcement of the regulations or requirements would directly impede disaster relief and recovery efforts or would disrupt the current level of service in early learning and educational support programs.

(b) If a state of emergency is declared by the Governor, the Superintendent may waive any requirements of this code or regulations adopted pursuant to this code relating to child nutrition programs in early learning and educational support programs operated pursuant to this chapter only to the extent that enforcement of the regulations or requirements would directly impede disaster relief and recovery efforts or would disrupt the current level of service in early learning and educational support programs.

(c) A waiver granted pursuant to subdivision (a) or (b) shall not exceed 45 calendar days.

(d) For purposes of this section, "state of emergency" includes fire, flood, earthquake, or a period of civil unrest.

(e) If a request for a waiver pursuant to subdivision (a) or (b) is for an early learning and educational support program or child nutrition program that receives federal funds and the waiver may be inconsistent with the state plan or any federal law or regulations governing the program, the Superintendent shall seek and obtain approval of the waiver from the appropriate federal agency before granting the waiver.

SEC. 14. Section 8210 of the Education Code is amended to read:

8210. Funds appropriated for the purpose of this chapter may be used for resource and referral programs that may be operated by public or private nonprofit entities.

SEC. 15. Section 8211 of the Education Code is amended to read:

8211. It is the intent of the Legislature that one hundred eighty thousand dollars ($180,000) be appropriated each fiscal year for allocation to resource and referral agencies operated by local educational agencies for the purpose of the resources and referral program set forth in this article.

SEC. 16. Section 8212 of the Education Code is amended to read:

8212. For purposes of this article, resource and referral programs, established to serve a defined geographic area, shall provide the following services:

(a) Identification of the full range of existing services through information provided by all relevant public and private agencies in the areas of service, and the development of a resource file of those services that shall be maintained and updated at least quarterly. These services shall include, but not be limited to, early learning and educational support programs, family care homes, public and private care programs, full-time and part-time programs, and infant, toddler, preschool, and extended care programs.

The resource file shall include, but not be limited to, the following information:

(1) Type of program.

(2) Hours of service.

(3) Ages of children served.

(4) Fees and eligibility for services.

(5) Significant program information.

(b) (1) Establishment of a referral process that responds to parental need for information and that is provided with full recognition of the confidentiality rights of parents. Resource and referral programs shall make referrals to licensed child day care facilities. Referrals shall be made to unlicensed care facilities only if there is no requirement that the facility be licensed. The referral process shall afford parents maximum access to all referral information. This access shall include, but is not limited to, telephone referrals to be made available for at least 30 hours per week as part of a full week of operation. Every effort shall be made to reach all parents within the defined geographic area, including, but not limited to, any of the following:

(A) Toll-free telephone lines.

(B) Office space convenient to parents and providers.

(C) Referrals in languages which are spoken in the community.

Each resource and referral program shall publicize its services through all available media sources, agencies, and other appropriate methods.

(2) (A) Provision of information to any person who requests a referral of his or her right to view the licensing information of a licensed child care facility required to be maintained at the facility pursuant to Section 1596.859 of the Health and Safety Code and to access any public files pertaining to the facility that are maintained by the State Department of Social Services Community Care Licensing Division.

(B) A written or oral advisement in substantially the following form will comply with the requirements of subparagraph (A):

"State law requires licensed child care facilities to make accessible to the public a copy of any licensing report pertaining to the facility that documents a facility visit or a substantiated complaint investigation. In addition, a more complete file regarding a child care licensee may be available at an office of the State Department of Social Services Community Care Licensing Division. You have the right to access any public information in these files."

(c) Maintenance of ongoing documentation of requests for service tabulated through the internal referral process. The following documentation of requests for service shall be maintained by all resource and referral programs:

(1) Number of calls and contacts to the care information and referral program or component.

(2) Ages of children served.

(3) Time category of care request for each child.

(4) Special time category, such as nights, weekends, and swing shift.

(5) Reason that the care is needed.

This information shall be maintained in a manner that is easily accessible for dissemination purposes.

(d) Provision of technical assistance to existing and potential providers of all types of care services. This assistance shall include, but not be limited to:

(1) Information on all aspects of initiating new care services including, but not limited to, licensing, zoning, program and budget development, and assistance in finding this information from other sources.

(2) Information and resources that help existing providers to maximize their ability to serve the children and parents of their community.

(3) Dissemination of information on current public issues affecting the local and state delivery of services.

(4) Facilitation of communication between existing child care and child-related services providers in the community served.

Services prescribed by this section shall be provided in order to maximize parental choice in the selection of care to facilitate the maintenance and development of care services and resources.

(e) (1) A program operating pursuant to this article shall, within two business days of receiving notice, remove a licensed facility with a revocation or a temporary suspension order, or that is on probation from the program's referral list.

(2) A program operating pursuant to this article shall, within two business days of receiving notice, notify all entities, operating a program under Article 3 (commencing with Section 8220) and Article 15.5 (commencing with Section 8350) in the program's jurisdiction, of a licensed facility with a revocation or a temporary suspension order, or that is on probation.

SEC. 17. Section 8212.3 of the Education Code is amended to read:

8212.3. (a) In addition to the services described in Section 8212, a resource and referral program, established to serve a defined geographic area, may provide short-term respite care. "Short-term respite care," for purposes of this article, means temporary care services to do any of the following:

(1) Provide services to families identified and referred by child protective agencies.

(2) Relieve the stress caused by child abuse, neglect, or exploitation, or the risk of abuse, neglect, or exploitation.

(3) Assist parents who, because of serious illness or injury, homelessness, or family crisis, including temporary absence from the home because of illness or injury, would be unable without assistance to provide the normal care and nurture expected of parents.

(4) Provide temporary relief to parents from the care of children with exceptional needs.

(b) Pursuant to the delivery of short-term respite care services, priority shall be given for the provision of services to families identified and referred by child protective agencies, to relieve the stress caused by child abuse, neglect, or exploitation, or the risks thereof, as described in paragraphs (1) and (2) of subdivision (a). Priority shall be given to assist parents and to provide temporary relief to parents, as described in paragraphs (3) and (4) of subdivision (a) to the extent that resources are available.

SEC. 18. Section 8213 of the Education Code is amended to read:

8213. All resource and referral services shall be provided in a manner that is responsive to the diverse cultural, linguistic, and economic needs of a defined geographic area of service.

SEC. 19. Section 8214 of the Education Code is amended to read:

8214. (a) Resource and referral services shall be provided to all persons requesting services and to all types of eligible providers, regardless of income level or other eligibility criteria. In addition to the services prescribed by this section, resource and referral may provide a wide variety of parent and provider support and educational services.

(b) Information shall be provided to parents in the county of service at the time the family is determined eligible for services, and at recertification, by one of the following:

(1) An alternative payment program.

(2) A resource and referral program.

(3) A partnership between the alternative payment program and the resource and referral program.

(c) The information provided by the program or partnership shall be to assist parents in making informed choices about available types of care that would both offer a safe, caring, and age-appropriate early learning and educational support environment for children, as well as support the parents' work activities, including, but not limited to, information about high-quality early learning and educational support options and resources specified in this subdivision. The program or partnership may utilize resources from a list posted on the department's Internet Web site pursuant to subdivision (c) of Section 8206 if this list is available. If the department does not create a list of resources pursuant to subdivision (c) of Section 8206, the program or partnership may develop local resources. These resources shall include, but are not limited to, the following:

(1) Information regarding how to select services that meet the needs of the parent and child.

(2) Information on licensing requirements and procedures for centers and family care homes.

(3) Trustline requirements for homes and providers exempt from licensure.

(4) A range of possible early learning and educational support options from which a parent may choose.

(5) Information on available care subsidies and eligibility requirements.

(6) Quality indicators, including provider or educator training, accreditation, staff stability, group size, ratio of children to staff, environments that support the healthy development of children, parent involvement, and communication between the parent and provider.

(7) Information on quality rating and improvement systems, where available.

(d) The program or partnership shall also provide parenting information to parents.

SEC. 20. Section 8215 of the Education Code is amended to read:

8215. (a) There is hereby established a project known as the California Child Care Initiative Project. It is the intent of the Legislature to promote and foster the project in cooperation with private corporations and local governments. The objective of the project is to increase the availability of quality programs in the state.

(b) For purposes of this section, the California Child Care Initiative Project means a project to expand the role and functions of selected resource and referral agencies in activities including needs assessment, recruitment and screening of providers, technical assistance, and staff development and training, in order to aid communities in increasing their capability in the number of spaces available and the quality of services offered.

(c) The Superintendent shall allocate all state funds appropriated for the California Child Care Initiative Project for the purpose of making grants to those resource and referral agencies that have been selected as pilot sites for the project.

(d) The project shall ensure that each dollar of state funds allocated pursuant to subdivision (c) is matched by two dollars ($2) from other sources, including private corporations, the federal government, or local governments.

(e) The grants to the sites made available by the project shall be comprised of a combination of state funds and other funds pursuant to subdivision (d).

(f) The Superintendent shall develop a database for the project.

SEC. 21. Section 8216 of the Education Code is amended to read:

8216. When making referrals, every agency operating a program providing early learning services or an alternative payment program and a resource and referral program shall provide at least four referrals, at least one of which shall be a provider over which the agency has no fiscal or operational control, as well as information to a family on the family's ability to choose a license exempt provider.

SEC. 22. Section 8220 of the Education Code is amended to read:

8220. Upon the approval of the department, funds appropriated for the purposes of this chapter may be used for alternative payment programs to allow for maximum parental choice. Various methods of reimbursement for parental costs for care may be utilized. All payment arrangements shall conform to the eligibility criteria and the parent fee schedule established pursuant to Sections 8263 and 8265.

To provide for maximum parental choice, alternative payment programs may include the following:

(a) A subsidy that follows the family from one provider to another within a given alternative payment program.

(b) Choices, whenever possible, among hours of service including before and after school, evenings, weekends, and split shifts.

(c) Early learning and educational support services according to parental choice, including use of family care homes, center based programs, and other state-funded programs to the extent that those programs exist in the general service area and are in conformity with the purposes and applicable laws for which those programs were established, but excluding California state preschool program services programs.

SEC. 23. Section 8220.1 of the Education Code is amended to read:

8220.1. (a) The department shall contract with local contracting agencies for alternative payment programs so that services will be provided throughout the state. The department shall expand existing alternative payment programs and fund new alternative payment programs to the extent that funds are provided by the Legislature.

(b) Funding for the new programs pursuant to this section shall be allocated to programs which meet all of the following requirements:

(1) Applicants shall conform to the requirements of this article.

(2) Applicants shall demonstrate that an alternative payment program is an appropriate method of delivering services within the county or service area at the level requested in the application by doing either of the following:

(A) Demonstrating the availability of sufficient licensed or license-exempt providers.

(B) Providing a plan for the development of sufficient licensed providers working in cooperation with the local resource and referral agency.

(3) Applicants shall demonstrate the administrative viability of the alternative payment agency and its capacity to meet performance requirements.

(4) Existing alternative payment programs receiving funds for expansion into a new service area shall be funded at a documented rate appropriate to that community and may contract separately as appropriate.

(c) (1) On and after July 1, 2015, the Superintendent shall streamline the delivery of alternative payment programs through the consolidation of contracts that serve special populations, including, but not limited to, migrant populations. Contractors shall continue to serve the same populations specified in their 2014-15 contracts, unless they receive prior approval from the department.

(2) This subdivision shall be operative only to the extent that an appropriation for its purposes is included in the annual Budget Act and is consolidated into a single budget schedule or subschedule.

SEC. 24. Section 8220.3 is added to the Education Code, to read:

8220.3. Commencing with the 2015-16 fiscal year and each fiscal year thereafter, alternative payment programs serving only migrant populations pursuant to a 2014-15 contract shall enroll only children of migrant agricultural worker families, as defined in subdivision (a) of Section 8231, that move from place to place for the purpose of agricultural work.

SEC. 25. SEC. 24. Section 8220.5 of the Education Code is amended to read:

8220.5. (a) To offer maximum support for parents and providers, alternative payment programs shall have access to resource and referral services. Funding shall be adequate to purchase care at the same rate that a private client is charged for the same service as well as to provide locally designed support services for parents and providers.

(b) Alternative payment programs shall provide professional and technical assistance and information to providers.

SEC. 26. SEC. 25. Section 8220.6 is added to the Education Code, to read:

8220.6. (a) Information shall be provided to parents in the county of service at the time the family is determined eligible for services, and at recertification, by one of the following:

(1) An alternative payment program.

(2) A resource and referral program.

(3) A partnership between the alternative payment program and the resource and referral program.

(b) The information provided by the program or partnership shall be to assist parents in making informed choices about available types of care that would both offer a safe, caring, and age-appropriate early learning and educational support environment for children, as well as support the parents' work activities, including, but not limited to, information about high-quality early learning and educational support options and resources specified in this subdivision. The program or partnership may utilize resources from a list posted on the department's Internet Web site pursuant to subdivision (c) of Section 8206 if this list is available. If the department does not create a list of resources pursuant to subdivision (c) of Section 8206, the program or partnership may develop local resources. These resources shall include, but are not limited to, the following:

(1) Information regarding how to select services that meet the needs of the parent and child.

(2) Information on licensing requirements and procedures for centers and family care homes.

(3) Trustline requirements for homes and providers exempt from licensure.

(4) A range of possible early learning and educational support options from which a parent may choose.

(5) Information on available care subsidies and eligibility requirements.

(6) Quality indicators, including provider or educator training, accreditation, staff stability, group size, ratio of children to staff, environments that support the healthy development of children, parent involvement, and communication between the parent and provider.

(7) Information on quality rating and improvement systems, where available.

(c) The program or partnership shall also provide parenting information to parents.

SEC. 27. SEC. 26. Section 8222 of the Education Code is amended to read:

8222. (a) Payments made by alternative payment programs shall not exceed the applicable market rate ceiling. Alternative payment programs may expend more than the standard reimbursement rate for a particular child. However, the aggregate payments for services purchased by the agency during the contract year shall not exceed the assigned reimbursable amount as established by the contract for the year. An agency shall not make payments in excess of the rate charged to full-cost families. This section does not preclude alternative payment programs from using the average daily enrollment adjustment factor for children with exceptional needs as provided in Section 8265.5.

(b) Alternative payment programs shall reimburse licensed providers in accordance with a biennial market rate survey pursuant to Section 8447, at a rate not to exceed the ceilings established pursuant to Section 8357.

(c) An alternative payment program shall reimburse a licensed provider for care of a subsidized child based on the rate charged by the provider to nonsubsidized families, if any, for the same services, or the rates established by the provider for prospective nonsubsidized families. A licensed provider shall submit to the alternative payment program a copy of the provider's rate sheet listing the rates charged, and the provider's discount or scholarship policies, if any, along with a statement signed by the provider confirming that the rates charged for a subsidized child are equal to or less than the rates charged for a nonsubsidized child.

(d) An alternative payment program shall maintain a copy of the rate sheet and the confirmation statement.

(e) A licensed provider shall submit to the local resource and referral agency a copy of the provider's rate sheet listing rates charged, and the provider's discount or scholarship policies, if any, and shall self-certify that the information is correct.

(f) Each licensed provider may alter rate levels for subsidized children once per year and shall provide the alternative payment program and resource and referral agency with the updated information pursuant to subdivisions (c) and (e), to reflect any changes.

(g) A licensed provider shall post in a prominent location adjacent to the provider's license at the facility the provider's rates and discounts or scholarship policies, if any.

(h) An alternative payment program shall verify provider rates no less frequently than once a year by randomly selecting 10 percent of licensed providers serving subsidized families. The purpose of this verification process is to confirm that rates reported to the alternative payment programs reasonably correspond to those reported to the resource and referral agency and the rates actually charged to nonsubsidized families for equivalent levels of services. It is the intent of the Legislature that the privacy of nonsubsidized families shall be protected in implementing this subdivision.

(i) The department shall develop regulations for addressing discrepancies in the provider rate levels identified through the rate verification process in subdivision (h).

SEC. 28. SEC. 27. Section 8223 of the Education Code is amended to read:

8223. The reimbursement for alternative payment programs shall include the cost of care paid to providers plus the administrative and support services costs of the alternative payment program. The total cost for administration and support services shall not exceed an amount equal to 17.5 percent of the total contract amount. The administrative costs shall not exceed the costs allowable for administration under federal requirements.

SEC. 29. SEC. 28. Section 8225 of the Education Code is amended to read:

8225. When making referrals, every agency operating a program providing early learning services or a resource and referral program and an alternative payment program shall provide at least four referrals, at least one of which shall be a provider over which the agency has no fiscal or operational control, as well as information to a family on the family's ability to choose a license exempt provider.

SEC. 30. SEC. 29. Section 8226 of the Education Code is amended to read:

8226. (a) When making referrals, every program operating pursuant to this article shall provide information to any person who requests a referral of his or her right to view the licensing information of a licensed facility required to be maintained at the facility pursuant to Section 1596.859 of the Health and Safety Code and to access any public files pertaining to the facility that are maintained by the State Department of Social Services Community Care Licensing Division.

(b) A written or oral advisement in substantially the following form will comply with the requirements of subdivision (a):

"State law requires licensed facilities to make accessible to the public a copy of any licensing report pertaining to the facility that documents a facility visit or a substantiated complaint investigation. In addition, a more complete file regarding a child care licensee may be available at an office of the State Department of Social Services Community Care Licensing Division. You have the right to access any public information in these files."

(c) Every program operating pursuant to this article shall, within two days of receiving notice, remove from the program's referral list the name of any licensed facility with a revocation or a temporary suspension order or that is on probation.

(d) A program operating pursuant to this article shall, within two business days of being notified of a revocation or a temporary suspension order for a licensed facility, do both of the following:

(1) Terminate payment to the facility.

(2) Notify each parent and the facility in writing that payment has been terminated and the reason for the termination.

(e) A program operating pursuant to this article shall, upon being notified that a licensed facility has been placed on probation, provide written notice to each parent utilizing the facility that the facility has been placed on probation and that the parent has the option of selecting a different care provider or remaining with the facility without risk of subsidy payments to the provider being terminated. The Legislature urges each agency operating pursuant to this section to provide the written notice required by this subdivision in the primary language of the parent, to the extent feasible.

SEC. 31. SEC. 30. Section 8227 of the Education Code is amended to read:

8227. (a) To the extent that funding is made available for this purpose through the annual Budget Act, the alternative payment agency in each county shall design, maintain, and administer a system to consolidate local care waiting lists so as to establish a countywide centralized eligibility list. In those counties with more than one alternative payment agency, the agency that also administers the resource and referral program shall have the responsibility of developing, maintaining, and administering the countywide centralized eligibility list. In those counties with more than one alternative payment agency and more than one resource and referral program, the department shall establish a process to select the agency to develop, maintain, and administer the countywide centralized eligibility list.

(b) Notwithstanding subdivision (a), in those counties in which a countywide centralized eligibility list exists, as of the date that the act adding this section is enacted, the entity administering that list may receive funding, instead of the entity specified under subdivision (a).

(c) Each centralized eligibility list shall include all of the following:

(1) Family characteristics, including ZIP Code of residence, ZIP Code of employment, monthly income, and size.

(2) Child characteristics, including birth date and whether the child has special needs.

(3) Service characteristics, including reason for need, whether full-time or part-time service is requested, and whether after hours or weekend care is requested.

(d) Information collected for the centralized eligibility list shall be reported to the Superintendent on an annual basis on the date and in the manner determined by the department.

(e) (1) To be eligible to enter into an agreement with the department to provide subsidized care, a contractor shall participate in and use the centralized eligibility list.

(2) A contractor with a campus early learning and educational support program operating pursuant to Section 66060, a program operating on a seasonal basis providing services to a migrant population pursuant to Section 8230, or a program serving severely disabled children pursuant to subdivision (d) of Section 8250 and who has a local site waiting list shall submit eligibility list information to the centralized eligibility list administrator for any parent seeking subsidized services for whom these programs are not able to provide early learning and educational support services. A contractor or program described in this paragraph may utilize any waiting lists developed at its local site to fill vacancies for its specific population. Families enrolled from a local site waiting list shall be enrolled pursuant to Section 8263.

SEC. 32. SEC. 31. Article 5 (commencing with Section 8228) is added to Chapter 2 of Part 6 of Division 1 of Title 1 of the Education Code, to read:

Article 5.

Early Learning Services

8228. (a) The Superintendent shall administer early learning and educational support programs through early learning services, including, but not limited to, early learning migrant child care and development programs pursuant to Article 6 (commencing with Section 8230), California state preschool programs pursuant to Article 7 (commencing with Section 8235), general child care and development programs pursuant to Article 8 (commencing with Section 8240), family child care home education networks pursuant to Article 8.5 (commencing with Section 8245), and services for children pursuant to subdivision (d) of Section 8250.

(b) Contractors providing early learning services pursuant to this article shall comply with the administrative requirements set forth in Article 10 (commencing with Section 8255).

8228.1. The Superintendent, with funds appropriated for this purpose, shall administer programs through early learning services. These programs shall include, but not be limited to, all of the following:

(a) Age and developmentally appropriate activities for children.

(b) Supervision.

(c) Parenting education and parent engagement and involvement.

(d) Developmental and health services.

(e) Nutrition.

(f) Family support services that include, but are not limited to, assessment of child and family needs and referral to appropriate human services organizations.

(g) Training, professional development, and career advancement opportunities, documentation of which shall be provided to the department.

SEC. 33. The heading of Article 6 (commencing with Section 8230) of Chapter 2 of Part 6 of Division 1 of Title 1 of the Education Code is amended to read:

Article 6.

Services for Migrant Populations

SEC. 34. Section 8230 of the Education Code is amended to read:

8230. Contractors serving migrant populations shall comply with the requirements set forth in this article. In addition, the Superintendent shall support and encourage the state-level coordination of all agencies that offer services to migrant populations and state-level coordination of existing health funds for migrants.

SEC. 35. SEC. 32. Section 8231 of the Education Code is amended to read:

8231. (a) For the purpose of this article, a "migrant agricultural worker family" means a family that has earned at least 50 percent of its total gross income from employment in fishing, agriculture, or agriculturally related work during the 12-month period immediately preceding the date of application for early learning and educational support services.

(b) Children of migrant agricultural worker families shall be enrolled in early learning and educational support programs on the basis of the following priorities:

(1) The family moves from place to place.

(2) The family has qualified under paragraph (1) within the past five years and is currently dependent for its income on agricultural employment, but is currently settled near agricultural areas.

(3) The family resides in a rural agricultural area and is dependent upon seasonal agricultural work.

(4) Eligibility and priority for services for the federally funded migrant child care and development program shall be in accordance with the applicable federal regulations.

(c) This section shall remain in effect only until July 1, 2015, and as of that date is repealed, unless a later enacted statute, that is enacted before July 1, 2015, deletes or extends that date.

SEC. 36. SEC. 33. Section 8231 is added to the Education Code, to read:

8231. (a) For the purpose of this chapter, a "migrant agricultural worker family" means a family with at least one parent that has earned at least 50 percent of his or her income from employment in fishing, agriculture, or agriculturally related work during the 12-month period immediately preceding the date of application for early learning and educational support services.

(b) For purposes of this article, priority for enrollment shall be given to children of migrant agricultural worker families in the following priority order:

(1) The family moves from place to place.

(2) The family has qualified under paragraph (1) within the past five years and is currently dependent for its income on agricultural employment, but is currently settled near agricultural areas.

(3) The family resides in a rural agricultural area and is dependent upon seasonal agricultural work.

(4) Eligibility and priority for services for the federally funded migrant child care and development program shall be in accordance with the applicable federal regulations.

(c) (1) If a contractor serving migrant populations, upon prioritizing migrant families for enrollment and complying with this section, is unable to reach the anticipated level of enrollment as provided in the contract for services, the contractor may use any funds remaining to enroll children from otherwise eligible families pursuant to the priorities set forth in Section 8263.

(2) This subdivision shall be operative only to the extent that an appropriation for its purposes is included in the annual Budget Act and is consolidated into a single budget schedule or subschedule.

(d)

(c) This section is operative on July 1, 2015.

SEC. 37. SEC. 34. Section 8232 of the Education Code is amended to read:

8232. The Superintendent shall develop appropriate migrant child care and development programs, quality indicators for contractors that serve migrant populations, including those prescribed in Section 8203, and the following:

(a) Social services.

(1) Bilingual liaison between migrant parents and the center or family child care home, or both.

(2) Liaison between the agency and the relevant community agencies and organizations, including health and social services.

(3) Identification and documentation of family needs and followup referrals as appropriate.

(b) Staffing.

(1) Bilingual health personnel shall be available to each program site of an agency that serves migrant populations.

(2) Professional and nonprofessional staff shall reflect the linguistic and cultural background of the children being served.

(3) Whenever possible, migrants shall be recruited, trained, and hired in early learning and educational support programs. Documentation of training and career ladder opportunities and of recruitment and hiring efforts shall be provided to the department. Staff training shall include principles and practices of early learning and educational support for the age groups of children being served.

(c) Developmental and health services in agencies that serve migrant populations migrant child care and development programs shall include health and dental screening and followup treatment. Health records for all migrant children shall follow the child.

SEC. 38. Section 8233 of the Education Code is amended to read:

8233. (a) Cost for migrant population services may exceed the standard reimbursement rate established by the Superintendent. In no case shall the reimbursement exceed the cost of the services. State-funded programs may be eligible for Chapter I federal funds to supplement state funding. These funds shall not be contingent upon the provision of additional child days or enrollment.

(b) The Superintendent shall annually reimburse agencies that provide services for seasonal migrant populations pursuant to this article for approvable startup and closedown costs. Reimbursement for both startup and closedown costs shall not exceed 15 percent of the agency's total contract amount.

(c) Agencies that provide services for seasonal migrant populations shall submit reimbursement claims for startup costs with their first monthly reports, and reimbursement claims for closedown costs with their final reports.

SEC. 39. The heading of Article 7 (commencing with Section 8235) of Chapter 2 of Part 6 of Division 1 of Title 1 of the Education Code is amended to read:

Article 7.

California State Preschool Program Services

SEC. 40. SEC. 35. Section 8235 of the Education Code is amended to read:

8235. (a) Contractors providing The Superintendent shall administer all California state preschool program services programs for three-year-old children described in subdivision (ak) (aj) of Section 8208, and four-year-old children, as described in subdivision (al) (ak) of Section 8208, shall adhere to the requirements set forth in Article 5 (commencing with Section 8228) in educational development, health services, social services, nutritional services, parent education and parent participation, evaluation, and staff development. These programs shall include, but are not limited to, part-day age and developmentally appropriate programs designed to facilitate the transition to kindergarten for three- and four-year-old children.

(b) Preschool services programs for which federal reimbursement is not available shall be funded as prescribed by the Legislature in the Budget Act, and unless otherwise specified by the Legislature, shall not use federal funds made available through Title XX of the federal Social Security Act (42 U.S.C. Sec. 1397).

(c) Three- and four-year-old children are eligible for part-day California state preschool program services programs if the family meets at least one of the criteria specified in paragraph (1) of subdivision (a) of Section 8263.

(d) Notwithstanding any other law, a contractor providingpart-day California state preschool program services may provide services to children in families whose income is no more than 15 percent above the income eligibility threshold, as described in Sections 8263 and 8263.1, after all eligible three- and four-year-old children have been enrolled. No more than 10 percent of children enrolled, calculated throughout the participating program's entire contract, may be filled by children in families above the income eligibility threshold.

(e) A part-day California state preschool program shall operate for a minimum of (1) three hours per day, excluding time for home-to-school transportation, and (2) a minimum of 175 days per year, unless the contract specifies a lower number of days of operation.

(f) Any agency described in subdivision (c) of Section 8208 as an "applicant or contracting agency" is eligible to contract to operate a California state preschool program.

(g) Part-day preschool services shall be reimbursed on a per capita basis, as determined by the Superintendent, and contingent on funding being provided for the part-day preschool services in the annual Budget Act.

(h) Federal Head Start funds used to provide services to families receiving California state preschool services shall be deemed nonrestricted funds.

SEC. 41. Section 8236 of the Education Code is amended to read:

8236. (a) (1) Contractors providing California state preschool program services pursuant to this article shall give first priority to three- or four-year-old neglected or abused 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 resource and referral services so that services for the child can be located.

(2) Notwithstanding Section 8263, after children in the first priority category set forth in paragraph (1) are enrolled, each agency funded pursuant to Section 8235 shall give priority to eligible four-year-old children before enrolling eligible three-year-old children. Each agency shall certify to the Superintendent that enrollment priority is being given to eligible four-year-old children.

(b) For contractors that provide part-day preschool services that are operating with funding that was initially allocated in a prior fiscal year, at least one-half of the children enrolled at a preschool site shall be four-year-old children. Any exception to this requirement shall be approved by the Superintendent. The Superintendent shall inform the Department of Finance of any exceptions that have been granted and the reasons for granting the exceptions.

(c) The following provisions apply to the award of new funding for the expansion of the California state preschool program services that is appropriated by the Legislature for that purpose in any fiscal year:

(1) In an application for those expansion funds, an agency shall furnish the Superintendent with an estimate of the number of four-year-old and three-year-old children that it plans to serve in the following fiscal year with those expansion funds. The agency also shall furnish documentation that indicates the basis of those estimates.

(2) In awarding contracts for expansion pursuant to this subdivision, the Superintendent, after taking into account the geographic criteria established pursuant to Section 8279.3, and the headquarters preferences and eligibility criteria relating to fiscal or programmatic noncompliance established pursuant to Section 8261, shall give priority to applicant agencies that, in expending the expansion funds, will be serving the highest percentage of four-year-old children.

(d) This section does not preclude a local educational agency from subcontracting with an appropriate public or private agency to operate a California state preschool program and to apply for funds made available for the purposes of this section. If a school district chooses not to operate or subcontract for a California state preschool program, the Superintendent shall work with the county office of education and other eligible agencies to explore possible opportunities in contracting or alternative subcontracting to provide a California state preschool program.

(e) This section does not prevent eligible children who are currently receiving services from continuing to receive those services in future years pursuant to this chapter.

SEC. 42. SEC. 36. Section 8236.1 of the Education Code is amended to read:

8236.1. The department shall annually monitor funding used in early learning general child care and development programs for infants and toddlers, and hours of service provided in the California state preschool program services, and shall annually report to the Department of Finance and to the Legislature a statewide summary identifying the estimated funding used for infants and toddlers, and the number of preschool age children receiving part-day preschool and wraparound services, as defined in subdivision (f) of Section 8239. The annual report shall include a comparison to the prior year on a county-by-county basis.

SEC. 43. Section 8238.4 of the Education Code is amended to read:

8238.4. (a) A family literacy supplemental grant shall be made available and distributed to qualifying California state preschool classrooms, as determined by the Superintendent, at a rate of two thousand five hundred dollars ($2,500) per class. The Superintendent shall distribute the family literacy supplemental grant funds according to the following priorities:

(1) First priority shall be assigned to contractors providing California state preschool program services that contract to receive this funding before July 1, 2012. These programs shall receive this funding until their contract is terminated or the California state preschool program no longer provides family literacy services.

(2) Second priority shall be assigned to contractors providing California state preschool program services operating classrooms located in the attendance area of elementary schools in deciles 1 to 3, inclusive, based on the most recently published Academic Performance Index pursuant to Section 52056. The Superintendent shall use a lottery process in implementing this paragraph.

(b) A family literacy supplemental grant distributed pursuant to this section shall be used for purposes specified in Section 8238.

(c) Implementation of this section is contingent upon funding being provided for family literacy supplemental grants for California state preschool program services in the annual Budget Act or other statute.

SEC. 44. Section 8239 of the Education Code is amended to read:

8239. The Superintendent shall encourage state preschool program applicants or contracting agencies to offer full-day services through a combination of part-day preschool slots and wraparound services. In order to facilitate a full day of services, all of the following shall apply:

(a) Part-day preschool services provided pursuant to this section shall operate between 175 and 180 days.

(b) Wraparound services provided pursuant to this section shall operate a minimum of 246 days per year unless the contract specified a lower minimum days of operation. Wraparound services may operate a full day for the remainder of the year after the completion of the part-day preschool program services. Services shall be provided in accordance with Article 1 (commencing with Section 8200) and Article 5 (commencing with Section 8228).

(c) Part-day preschool services combined with wraparound services shall be reimbursed at no more than the full-day standard reimbursement rate, with adjustment factors, pursuant to Section 8265 and as determined in the annual Budget Act.

(d) Three- and four-year-old children are eligible for wraparound services to supplement the part-day preschool services if the family meets the eligibility criteria specified in paragraph (1) of subdivision (a) of Section 8263, and the parents meet at least one of the criteria specified in paragraph (2) of subdivision (a) of Section 8263.

(e) Fees shall be assessed and collected for families with children in part-day preschool programs, or families receiving wraparound services, or both, pursuant to Article 11.5 (commencing with Section 8273).

(f) The Superintendent shall annually report to the Department of Finance, on or before October 1 of each year, the fees collected from families who have children enrolled in the California state preschool program. The report shall distinguish between family fees collected for part-day preschool programs and fees collected for wraparound services.

(g) For purposes of this section, "wraparound services" means early learning services provided with additional funding that would extend the part-day California state preschool program services provided pursuant to subdivision (a) to meet families' needs for care while parents participate in an approved work or work-related activity. These services shall be provided consistent with the early learning and educational support programs provided pursuant to Article 1 (commencing with Section 8200) and Article 5 (commencing with Section 8228).

SEC. 37. Section 8239 of the Education Code is amended to read:

8239. The Superintendent shall encourage state preschool program applicants or contracting agencies to offer full-day services through a combination of part-day preschool slots and wraparound general child care and development programs services. In order to facilitate a full-day full day of services, all of the following shall apply:

(a) Part-day preschool programs provided pursuant to this section shall operate between 175 and 180 days.

(b) Wraparound general child care and development programs services provided pursuant to this section may shall operate a minimum of 246 days per year unless the child development contract specified a lower minimum number of days of operation. Part-day general child care and development programs Wraparound services may operate a full-day full day for the remainder of the year after the completion of the preschool program part-day preschool program. Services shall be provided in accordance with Article 1 (commencing with Section 8200) and Article 5 (commencing with Section 8228).

(c) Part-day preschool services combined with wraparound child care services shall be reimbursed at no more than the full-day standard reimbursement rate for general child care programs rate, with adjustment factors, pursuant to Section 8265 and as determined in the annual Budget Act.

(d) Three- and four-year-old children are eligible for wraparound child care services to supplement the part-day California state preschool program if the family meets at least one of the eligibility criteria specified in paragraph (1) of subdivision (a) of Section 8263, and the parents meet at least one of the criteria specified in paragraph (2) of subdivision (a) of Section 8263.

(e) For purposes of this section, "wraparound child care services" and "wraparound general child care and development programs" mean services provided for the remaining portion of the day or remainder of the year following the completion of part-day preschool services that are necessary to meet the child care needs of parents eligible services" means early learning services provided with additional funding that would extend the part-day California state preschool program services provided pursuant to subdivision (a) of Section 8263 to meet families' needs for care while parents participate in an approved work or work-related activity. These services shall be provided consistent with the general child care and development early learning and educational support programs provided pursuant to Article 8 1 (commencing with Section 8240) 8200) and Article 5 (commencing with Section 8228).

SEC. 45. The heading of Article 8 (commencing with Section 8240) of Chapter 2 of Part 6 of Division 1 of Title 1 of the Education Code is amended to read:

Article 8.

Early Learning Programs

SEC. 46. SEC. 38. Section 8240 of the Education Code is amended to read:

8240. (a) The Superintendent, with funds appropriated for this purpose, shall administer general early learning and educational support child care and development programs.

General early learning and educational support child care and development programs shall include:

(1)

(a) Age and developmentally appropriate activities for children.

(2)

(b) Supervision.

(3)

(c) Parenting education and parent involvement and engagement.

(4)

(d) Social services that include, but are not limited to, identification of child and family needs and referral to appropriate agencies.

(5)

(e) Health services.

(6)

(f) Nutrition.

(7)

(g) Training and career ladder opportunities, documentation of which shall be provided to the department.

(b) This section shall become inoperative on July 1, 2015, and, as of January 1, 2016, is repealed, unless a later enacted statute that is enacted before January 1, 2016, deletes or extends the dates on which it becomes inoperative and is repealed.

SEC. 47. Section 8240 is added to the Education Code, to read:

8240. (a) Early learning programs shall serve children from birth to 13 years of age, including, but not limited to, services pursuant to Article 5 (commencing with Section 8228) for all of the following:

(1) Infants and toddlers.

(2) Preschool age children.

(3) Schoolage children.

(4) Migrant children.

(b) The Superintendent shall streamline the delivery of early learning programs through the consolidation of contracts that serve children described in subdivision (a). This shall include, but is not limited to, services for both of the following special populations:

(1) Preschool age children.

(2) Migrant children.

(c) Contractors shall continue to serve the same populations specified in their 2014-15 contracts, unless they receive prior approval from the department.

(d) Contractors that provide services to migrant populations shall comply with Article 6 (commencing with Section 8230).

(e) Contractors that provide services to California state preschool program populations shall comply with Article 7 (commencing with Section 8235).

(f) Subdivisions (b) and (c) shall be operative only to the extent that an appropriation for its purposes is included in the annual Budget Act and is consolidated into a single budget schedule or subschedule.

(g) This section shall become operative on July 1, 2015.

SEC. 48. SEC. 39. Section 8244 of the Education Code is amended to read:

8244. (a) (1) Any entity operating programs funded pursuant to this chapter that provide early learning services to children at two or more sites, including through more than one contract or subcontract funded pursuant to this chapter, shall employ a program director.

(2) Programs providing direct services to children, for the purposes of this section, are early learning services pursuant to Article 5 (commencing with Section 8228), migrant services child care and development pursuant to Article 6 (commencing with Section 8230), California state preschool programs pursuant to Article 7 (commencing with Section 8235), general child care and development programs pursuant to Article 8 (commencing with Section 8240), early learning services for children pursuant to subdivision (d) of Section 8250, infant care and development services programs pursuant to Article 17 (commencing with Section 8390), and any of these programs operated through family child care homes.

(b) (1) For purposes of this section, the following definitions shall apply:

(A) "Administrative responsibility" means awareness of the financial and business circumstances of the program, and, in appropriate cases, supervision of administrative and support personnel and the knowledge and authority to direct or modify administrative practices and procedures to ensure compliance to administrative and financial standards imposed by law.

(B) "Program director" means a person who, regardless of his or her title, has programmatic and administrative responsibility for an early learning and educational support program that provides direct services to children at two or more sites.

(C) "Programmatic responsibility" means overall supervision of curriculum and instructional staff, including instructional aides, and the knowledge and authority to direct or modify program practices and procedures to ensure compliance to applicable quality and health and safety standards imposed by law.

(2) Administrative and programmatic responsibility also includes the responsibility to act as the representative for the early learning and educational support program to the department. With respect to programs operated through family care homes, administrative and programmatic responsibility includes ensuring that quality services are provided in the family care homes.

(c) The program director also may serve as the site supervisor at one of the sites, provided that he or she both fulfills the duties of a child care center director, as set forth in Section 101215.1 of Title 22 of the California Code of Regulations, and meets the qualifications for a site supervisor as set forth in subdivision (ac) (ab) of Section 8208.

(d) The Superintendent may waive the qualifications for program director described in Sections 8360.1 and 8360.3 upon a finding of one of the following circumstances:

(1) The applicant is making satisfactory progress toward securing a permit issued by the Commission on Teacher Credentialing authorizing supervision of an early learning and educational support program operating in two or more sites or fulfilling the qualifications for program directors in programs serving severely disabled children, as specified in Section 8360.3.

(2) The place of employment is so remote from institutions offering the necessary coursework as to make continuing education impracticable and the contractor has made a diligent search but has been unable to hire a more qualified applicant.

(e) The Superintendent, upon good cause, may by rule identify and apply grounds in addition to those specified in subdivision (d) for granting a waiver of the qualifications for program director.

SEC. 49. SEC. 40. The heading of Article 9 (commencing with Section 8250) of Chapter 2 of Part 6 of Division 1 of Title 1 of the Education Code is amended to read:

Article 9.

Services for Children with Special Needs

SEC. 50. SEC. 41. Section 8250 of the Education Code is amended to read:

8250. (a) The Superintendent shall ensure that eligible children with exceptional needs are given equal access to all early learning and educational support programs. Available federal and state funds for children with exceptional needs above the standard reimbursement amount shall be used to assist agencies in developing and supporting appropriate programs for these children.

(b) To provide children with exceptional needs with additional access to early learning and educational support programs, the Superintendent shall establish alternate appropriate placements, such as self-contained programs and innovative programs using the least restrictive environment. These programs shall be started as expansion funds become available and shall be expanded throughout the implementation of the plan. The Superintendent shall utilize existing program models and input from program specialists to develop new program criteria and guidelines for programs serving children with exceptional needs. These programs may serve children with exceptional needs up to 21 years of age.

(c) Any child with exceptional needs served in early learning and educational support programs shall be afforded all rights and protections guaranteed in state and federal laws and regulations for individuals with exceptional needs.

(d) Notwithstanding any other provision of this chapter, the Superintendent may develop unique reimbursement rates for, and make reimbursements to, early learning and educational support programs that received state funding for the 1980-81 fiscal year and serve severely disabled children, as defined in subdivision (aa) (z) of Section 8208, when all of the following conditions exist:

(1) Eligibility for enrollment of a severely disabled child in the program is the sole basis of the child's need for service.

(2) Services are provided to severely disabled children from birth to 21 years of age.

(3) No fees are charged to the parents of the severely disabled children receiving the services.

(e) The Superintendent shall include providers in all personnel development for persons providing services for children with exceptional needs.

SEC. 51. SEC. 42. Section 8250.5 of the Education Code is amended to read:

8250.5. A contractor providing services pursuant to an early learning services contract or an alternative payment contract is subject to the requirements of the federal Americans with Disabilities Act (42 U.S.C. Sec. 12101 et seq.).

SEC. 52. SEC. 43. Section 8251 of the Education Code is amended to read:

8251. (a) All contractors administering early learning services shall include plans or programs, or both, for the care of the children when they are sick. These plans shall be age appropriate and parents shall be included in the planning and evaluation. The Superintendent shall disseminate information regarding effective sick child care models to all early learning and educational support programs.

(b) Nothing in this chapter shall be construed to allow the practice of medicine without a license.

SEC. 53. SEC. 44. Section 8252 of the Education Code is amended to read:

8252. (a) The department and the local county welfare department shall enter into contracts that establish the procedures for serving and referring a child in need of care as part of the provision of protective services pursuant to Chapter 5 (commencing with Section 16500) of Part 4 of Division 9 of the Welfare and Institutions Code. The department, in consultation with the State Department of Social Services, may contract with another appropriate community agency that provides services or referrals, or both, for the prevention or intervention of child abuse or neglect if no such contract for care services exists between the department and the county welfare department.

(b) The contracts shall specify the resource and referral program or operating agency or agencies providing early learning and educational support pursuant to this chapter in the county that the local contracting agency shall contact to secure care for a child needing protective services. If an operating agency is unable to enroll the child, the local contracting agency described in subdivision (a) with the assistance of the providers of local resources and referral services shall locate services for the family. Payments for these located services in the absence of other funds shall be made by the local contracting agency.

(c) The need for services funded pursuant to this section shall be reviewed by the local contracting agency no less than every three months.

SEC. 54. SEC. 45. Section 8255 of the Education Code is amended to read:

8255. (a) The Legislature finds and declares that the effectiveness of early learning and educational support programs can be increased through improved state administration, technical assistance to provider agencies, and monitoring.

(b) It is the intent of the Legislature:

(1) That the department develop clear, consistent, and appropriate regulations for early learning and educational support programs to replace policy guidelines that are not subject to the public hearing process, often inconsistent, and without the force of law.

(2) That the department make better use of staff with direct field experience in early learning and educational support programs.

(3) That better criteria be developed for the awarding, evaluating, and renewal of early learning and educational support contracts.

(4) That improvements be made in the method of reimbursing providers.

(5) That increased effort be made to provide program operators with technical assistance in meeting their contractual obligations.

SEC. 55. SEC. 46. Section 8257 of the Education Code is amended to read:

8257. The department shall do all of the following in administering the provisions of this chapter:

(a) Apply sanctions against contracting agencies that have serious licensing violations, as defined and reported by the State Department of Social Services pursuant to Section 1597.11 of the Health and Safety Code.

(b) Except in the case of immediate terminations taken pursuant to Sections Section 8406.7 or 8406.9, provide 90 days' written notification to any contractor whose agreement is being terminated. Notwithstanding Article 18 (commencing with Section 8400), the department shall establish procedures for placing a contractor whose agreement is being terminated into receivership. Action to initiate receivership shall be at the discretion of the department, and may be taken against a contractor whose agreement is being terminated either immediately or within 90 days. The receiver shall not be a department employee. The receiver shall have sufficient experience in the administration of early learning and educational support programs to ensure compliance with the terms of the receivership.

SEC. 56. SEC. 47. Section 8258 of the Education Code is amended to read:

8258. (a) A person employed by the department in a policymaking position in the area of early learning and educational support programs shall not serve as a member of the board of directors, advisory council, or advisory committee for any agency receiving funds pursuant to this chapter.

(b) A retired, dismissed, separated, or formerly employed person of the department employed under the State Civil Service Act or otherwise appointed to serve in the department shall not enter into a contract pursuant to Section 8262 in which he or she engaged in any of the negotiations, transactions, planning, arrangements, or any part of the decisionmaking process relevant to the contract while employed in any capacity by the department. The prohibition contained in this subdivision shall apply to the person only during the two-year period beginning on the date the person left state employment.

(c) For a period of 12 months following the date of his or her retirement, dismissal, or separation from state service, a person employed under state civil service or otherwise appointed to serve in the department shall not enter into a contract pursuant to Section 8262 if he or she was employed by the department in a policymaking position in the area of early learning and educational support programs within the 12-month period before his or her retirement, dismissal, or separation.

(d) For a period of 12 months following the date of his or her retirement, dismissal, or separation from state service, a person employed under state civil service or otherwise appointed to serve in the department shall not be employed by a contractor pursuant to Section 8262 if he or she engaged in any of the negotiations, transactions, planning, arrangements, or any part of the decisionmaking process relevant to the contract while employed in any capacity by the department.

SEC. 57. Section 8261 of the Education Code is amended to read:

8261. (a) The Superintendent shall adopt rules and regulations pursuant to this chapter. The rules and regulations shall include, but not be limited to, provisions which do all of the following:

(1) Provide clear guidelines for the selection of agencies when early learning and educational support contracts are let.

(2) Provide for a contract monitoring system to ensure that agencies expend funds received pursuant to this chapter in accordance with the provisions of their contracts.

(3) Specify adequate standards of agency performance.

(4) Establish reporting requirements for service reports, including provisions for varying the frequency with which these reports are to be submitted on the basis of agency performance.

(5) Specify standards for withholding payments to agencies that fail to submit required fiscal reports.

(6) Set forth standards for department site visits to contracting agencies, including, but not limited to, specification as to the purpose of the visits, the personnel that will perform these visits, and the frequency of these visits that shall be as frequently as staff and budget resources permit. By September 1 of each year, the department shall report to the Senate Education, Senate Health and Human Services, Assembly Education, and Assembly Human Services Committees on the number of visits conducted during the previous fiscal year pursuant to this paragraph.

(b) The Superintendent shall consult with the State Department of Social Services with respect to rules and regulations adopted relative to the disbursal of federal funds under Title XX of the federal Social Security Act.

(c) For purposes of expediting the implementation of state or federal legislation to expand early learning and educational support services, the Superintendent may waive (1) the regulations regarding the point qualifications for, and the process and scoring of, interviews of contract applicants pursuant to Section 18002 of Title 5 of the California Code of Regulations, or (2) the time limitations for scheduling and notification of appeal hearings and their results pursuant to Section 18003 of Title 5 of the California Code of Regulations. The Superintendent shall ensure that the appeal hearings provided for in Section 18003 of Title 5 of the California Code of Regulations are conducted in a timely manner.

(d) (1) Early learning and educational support programs operated under contract from funds made available pursuant to the federal Child Care and Development Fund, shall be administered according to Division 19 (commencing with Section 17906) of Chapter 1 of Title 5 of the California Code of Regulations, unless provisions of these regulations conflict with federal regulations. If state and federal regulations conflict, the federal regulations shall apply unless a waiver of federal regulations is authorized.

(2) For purposes of this section, "Child Care and Development Fund" has the same meaning as in Section 98.2 of Title 45 of the Code of Federal Regulations.

SEC. 48. Section 8261 of the Education Code is amended to read:

8261. (a) The Superintendent shall adopt rules and regulations pursuant to this chapter. The rules and regulations shall include, but not be limited to, provisions which do all of the following:

(1) Provide clear guidelines for the selection of agencies when child development contracts are let, including, but not limited to, specification that any agency headquartered in the proposed service area on January 1, 1985, will be given priority for a new contract in that area, unless the department makes a written determination that (A) the agency is not able to deliver the level of services specified in the request for proposal, or (B) the department has notified the agency that it is not in compliance with the terms of its contract early learning and educational support contracts are let.

(2) Provide for a contract monitoring system to ensure that agencies expend funds received pursuant to this chapter in accordance with the provisions of their contracts.

(3) Specify adequate standards of agency performance.

(4) Establish reporting requirements for service reports, including provisions for varying the frequency with which these reports are to be submitted on the basis of agency performance.

(5) Specify standards for withholding payments to agencies that fail to submit required fiscal reports.

(6) Set forth standards for department site visits to contracting agencies, including, but not limited to, specification as to the purpose of the visits, the personnel that will perform these visits, and the frequency of these visits visits, which shall be as frequently frequent as staff and budget resources permit. By September 1 of each year, the department shall report to the Senate Education, Senate Health and Human Services, Assembly Education, and Assembly Human Services Committees on the number of visits conducted during the previous fiscal year pursuant to this paragraph.

(7) Authorize the department to develop a process that requires every contracting agency to recompete for continued funding no less frequently than every five years.

(b) The Superintendent shall consult with the State Department of Social Services with respect to rules and regulations adopted relative to the disbursal of federal funds under Title XX of the federal Social Security Act.

(c) For purposes of expediting the implementation of state or federal legislation to expand child care early learning and educational support services, the Superintendent may waive (1) the regulations regarding the point qualifications for, and the process and scoring of, interviews of contract applicants pursuant to Section 18002 of Title 5 of the California Code of Regulations, or (2) the time limitations for scheduling and notification of appeal hearings and their results pursuant to Section 18003 of Title 5 of the California Code of Regulations. The Superintendent shall ensure that the appeal hearings provided for in Section 18003 of Title 5 of the California Code of Regulations are conducted in a timely manner.

(d) (1) Child care and development Early learning and educational support programs operated under contract from funds made available pursuant to the federal Child Care and Development Fund, shall be administered according to Division 19 (commencing with Section 17906) of Chapter 1 of Title 5 of the California Code of Regulations, unless provisions of these regulations conflict with federal regulations. If state and federal regulations conflict, the federal regulations shall apply unless a waiver of federal regulations is authorized.

(2) For purposes of this section, "Child Care and Development Fund" has the same meaning as in Section 98.2 of Title 45 of the Code of Federal Regulations.

SEC. 58. SEC. 49. Section 8261.5 of the Education Code is amended to read:

8261.5. For purposes of meeting state and federal reporting requirements and for the effective administration of early learning and educational support programs, the Superintendent is authorized to require the collection and submission of social security numbers of heads of households, and other information as required, from public and private agencies contracting with the department pursuant to this chapter, including local educational agencies.

SEC. 59. SEC. 50. Section 8262 of the Education Code is amended to read:

8262. Notwithstanding Sections 14616 and 14780 of the Government Code, the Superintendent may enter into and execute local contractual agreements with any public or private entity or agency for the delivery of early learning and educational support services or the furnishing of property, facilities, personnel, supplies, equipment, and administrative services related to the delivery of early learning and educational support services. Before entering into or executing a local agreement, the department shall obtain annual approval from the Department of General Services and the Department of Finance as to the form and general content thereof. The agreements may only be made for the delivery of early learning and educational support services, or the furnishing of property, facilities, personnel, supplies, equipment, or administrative services related thereto, which conform with the provisions of this chapter.

SEC. 60. SEC. 51. Section 8263 of the Education Code is amended to read:

8263. (a) The Superintendent shall adopt rules and regulations on eligibility, enrollment, and priority of services needed to implement this chapter. In order to be eligible for federal and state subsidized early learning and educational support services, families shall meet at least one requirement in each of the following areas:

(1) A family is (A) a current aid recipient, (B) income eligible, (C) homeless, or (D) one whose children are recipients of protective services, or whose children have been identified as being abused, neglected, or exploited, or at risk of being abused, neglected, or exploited.

(2) A family needs the care services (A) because the child is identified by a legal, medical, or social services agency, or emergency shelter as (i) a recipient of protective services or (ii) being neglected, abused, or exploited, or at risk of neglect, abuse, or exploitation, or (B) because the parents are (i) engaged in vocational training leading directly to a recognized trade, paraprofession, or profession, (ii) employed or seeking employment, (iii) seeking permanent housing for family stability, or (iv) incapacitated.

(b) Except as provided in Article 15.5 (commencing with Section 8350), priority for federal and state subsidized early learning and educational support services is as follows:

(1) (A) First priority shall be given to neglected or abused children who are recipients of child protective services, or children who are at risk of being neglected or abused, upon written referral from a legal, medical, or social services agency. If an agency is unable to enroll a child in the first priority category, the agency shall refer the family to local resource and referral services to locate services for the child.

(B) A family who that is receiving care on the basis of being a child at risk of abuse, neglect, or exploitation, as defined in subdivision (j) of Section 8208, is eligible to receive services pursuant to subparagraph (A) for up to three months, unless the family becomes eligible pursuant to subparagraph (C).

(C) A family may receive care services for up to 12 months on the basis of a certification by the county child welfare agency that child care services continue to be necessary or, if the child is receiving child protective services during that period of time, and the family requires care and remains otherwise eligible. This time limit does not apply if the family's care referral is recertified by the county child welfare agency.

(2) Second priority shall be given equally to eligible families, regardless of the number of parents in the home, who are income eligible. Within this priority, families with the lowest gross monthly income in relation to family size, as determined by a schedule adopted by the Superintendent, shall be admitted first. If two or more families are in the same priority in relation to income, the family that has a child with exceptional needs shall be admitted first. If there is no family of the same priority with a child with exceptional needs, the same priority family that has been on the waiting list for the longest time shall be admitted first. For purposes of determining order of admission, the grants of public assistance recipients shall be counted as income.

(3) The Superintendent shall set criteria for, and may grant specific waivers of, the priorities established in this subdivision 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) Notwithstanding any other law, in order to promote continuity of services, a family enrolled in a state or federally funded early learning and educational support program whose services would otherwise be terminated because the family no longer meets the program income, eligibility, or need criteria may continue to receive services in another state or federally funded early learning and educational support program if the contractor is able to transfer the family's enrollment to another program for which the family is eligible before the date of termination of services or to exchange the family's existing enrollment with the enrollment of a family in another program, provided that both families satisfy the eligibility requirements for the program in which they are being enrolled. The transfer of enrollment may be to another program within the same administrative agency or to another agency that administers state or federally funded early learning and educational support programs.

(d) In order to promote continuity of services, the Superintendent may extend the 60-working-day period specified in subdivision (a) of Section 18086.5 of Title 5 of the California Code of Regulations for an additional 60 working days if he or she determines that opportunities for employment have diminished to the degree that one or both parents cannot reasonably be expected to find employment within 60 working days and granting the extension is in the public interest. The scope of extensions granted pursuant to this subdivision shall be limited to the necessary geographic areas and affected persons, which shall be described in the Superintendent's order granting the extension. It is the intent of the Legislature that extensions granted pursuant to this subdivision improve services in areas with high unemployment rates and areas with disproportionately high numbers of seasonal agricultural jobs.

(e) A physical examination and evaluation, including age-appropriate immunization, shall be required before, or within six weeks of, enrollment. A standard, rule, or regulation shall not require medical examination or immunization for admission to an early learning and educational support program of a child whose parent or guardian files a letter with the governing board of the program stating that the medical examination or immunization is contrary to his or her religious beliefs, or provide for the exclusion of a child from the program because of a parent or guardian having filed the letter. However, if there is good cause to believe that a child is suffering from a recognized contagious or infectious disease, the child shall be temporarily excluded from the program until the governing board of the program is satisfied that the child is not suffering from that contagious or infectious disease.

(f) Regulations formulated and promulgated pursuant to this section shall include the recommendations of the State Department of Health Care Services relative to health care screening and the provision of health care services. The Superintendent shall seek the advice and assistance of these health authorities in situations where service under this chapter includes or requires care of children who are ill or children with exceptional needs.

(g) The Superintendent shall establish guidelines for the collection of employer-sponsored care benefit payments from a parent whose child receives subsidized early learning and educational support services. These guidelines shall provide for the collection of the full amount of the benefit payment, but not to exceed the actual cost of early learning and educational support services provided, notwithstanding the applicable fee based on the fee schedule.

(h) The Superintendent shall establish guidelines according to which the director or a duly authorized representative of the early learning and educational support program will certify children as eligible for state reimbursement pursuant to this section.

(i) Public funds shall not be paid directly or indirectly to an agency that does not pay at least the minimum wage to each of its employees.

SEC. 61. SEC. 52. Section 8263.2 of the Education Code is amended to read:

8263.2. (a) Notwithstanding any other law, effective July 1, 2011, the department shall reduce the maximum reimbursable amounts of the contracts for the Preschool Education Program, the General Child Care Program, the Migrant Day Care Program, the Alternative Payment Program, the CalWORKs Stage 3 Program, and the Allowance for Handicapped Program by 11 percent or by whatever proportion is necessary to ensure that expenditures for these programs do not exceed the amounts appropriated for them, including any reductions made subsequent to the adoption of the annual Budget Act. The department may consider the contractor's performance or whether the contractor serves children in an underserved area, as defined in subdivision (ai) (ah) of Section 8208, when determining contract reductions, provided that the aggregate reduction to each program specified in this subdivision is 11 percent or by whatever proportion is necessary to ensure that expenditures for these programs do not exceed the amounts appropriated for them, including any reductions made subsequent to the adoption of the annual Budget Act.

(b) Notwithstanding any other law, effective July 1, 2011, families shall be disenrolled from subsidized services, consistent with the priorities for services specified in subdivision (b) of Section 8263. Families shall be disenrolled in the following order:

(1) Families whose income exceeds 70 percent of the state median income (SMI) adjusted for family size, except for families whose children are receiving child protective services or are at risk of being neglected or abused.

(2) Families with the highest income below 70 percent of the SMI, in relation to family size.

(3) Families that have the same income and have been enrolled in services the longest.

(4) Families that have the same income and have a child with exceptional needs.

(5) Families whose children are receiving child protective services or are at risk of being neglected or abused, regardless of family income.

SEC. 62. SEC. 53. Section 8263.3 of the Education Code is amended to read:

8263.3. (a) Notwithstanding any other law, and in addition to any reductions applied pursuant to Section 8263.2, effective July 1, 2012, the department shall reduce the maximum reimbursable amounts of the contracts for the General Child Care Program, the Migrant Day Care Program, the Alternative Payment Program, the CalWORKs Stage 3 Program, and the Allowance for Handicapped Program by 8.7 percent or by whatever proportion is necessary to ensure that expenditures for these programs do not exceed the amounts appropriated for them, as adjusted for any reductions in appropriations made subsequent to the adoption of the annual Budget Act. The department may consider the contractor's performance or whether the contractor serves children in an underserved area, as defined in subdivision (ai) (ah) of Section 8208, when determining contract reductions, provided that the aggregate reduction to each program specified in this subdivision is 8.7 percent or whatever proportion is necessary to ensure that expenditures for these programs do not exceed the amounts appropriated for them, as adjusted for any reductions in appropriations made subsequent to the adoption of the annual Budget Act.

(b) Notwithstanding any other law, effective July 1, 2012, families shall be disenrolled from subsidized services, consistent with the priorities for services specified in subdivision (b) of Section 8263. Families shall be disenrolled in the following order:

(1) Families with the highest income in relation to family size.

(2) Families that have the same income and have been enrolled in services the longest.

(3) Families that have the same income and have a child with exceptional needs.

(4) Families whose children are receiving child protective services or are at risk of being neglected or abused, regardless of family income.

SEC. 63. SEC. 54. Section 8263.4 of the Education Code is amended to read:

8263.4. (a) The preferred placement for children who are 11 or 12 years of age and who are otherwise eligible for subsidized early learning and educational support services shall be in a before or after school program.

(b) Children who are 11 or 12 years of age shall be eligible for subsidized early learning and educational support services only for the portion of care needed that is not available in a before or after school program provided pursuant to Article 22.5 (commencing with Section 8482) or Article 22.6 (commencing with Section 8484.7). Contractors shall provide each family of an eligible 11- or 12-year-old child with the option of combining care provided in a before or after school program with subsidized care in another setting, for those hours within a day when the before or after school program does not operate, in order to meet the needs of the family.

(c) Children who are 11 or 12 years of age, who are eligible for and who are receiving subsidized early learning and educational support services, and for whom a before or after school program is not available, shall continue to receive subsidized early learning and educational support services.

(d) A before or after school program shall be considered not available when a parent certifies in writing, on a form provided by the department that is translated into the parent's primary language pursuant to Sections 7295.4 and 7296.2 of the Government Code, the reason or reasons why the program would not meet the needs of the family. The reasons why a before or after school program shall be considered not available shall include, but not be limited to, any of the following:

(1) The program does not provide services when needed during the year, such as during the summer, school breaks, or intersession.

(2) The program does not provide services when needed during the day, such as in the early morning, evening, or weekend hours.

(3) The program is too geographically distant from the child's school of attendance.

(4) The program is too geographically distant from the parents' residence.

(5) Use of the program would create substantial transportation obstacles for the family.

(6) Any other reason that makes the use of before or after school care inappropriate for the child or burdensome on the family.

(e) If an 11- or 12-year-old child who is enrolled in a subsidized early learning and educational support program becomes ineligible for subsidized early learning and educational support programs under subdivision (b) and is disenrolled from the before or after school program, or if the before or after school program no longer meets the needs of the family, the child shall be given priority to return to the subsidized early learning and educational support program upon the parent's notification of the contractor of the need for care.

(f) This section does not apply to an 11- or 12-year-old child with a disability, including a child with exceptional needs who has an individualized education program as required by the federal Individuals with Disabilities Education Act (20 U.S.C. Sec. 1400 et seq.), Section 504 of the federal Rehabilitation Act of 1973 (29 U.S.C. Sec. 794), or Part 30 (commencing with Section 56000) of Division 4 of Title 2.

(g) The savings generated each contract year by the implementation of the changes made to this section by Chapter 78 of the Statutes of 2005 shall remain with each early learning and educational support program contractor for the provision of services, except for care provided by programs pursuant to Article 15.5 (commencing with Section 8350). Each contractor shall report annually to the department the amount of savings resulting from this implementation, and the department shall report annually to the Legislature the amount of savings statewide resulting from that implementation.

SEC. 64. SEC. 55. Section 8264 of the Education Code is amended to read:

8264. By July 1, 1981, and annually thereafter, the State Department of Health Care Services shall provide a mechanism for the delivery of health screening and followup services for children enrolled in early learning and educational support programs for whom there are no appropriate health services accessible by referral.

SEC. 65. SEC. 56. Section 8264.5 of the Education Code is amended to read:

8264.5. The Superintendent may waive or modify requirements in order to enable contractors administering early learning services to serve combinations of eligible children in areas of low population. The programs for which the Superintendent may grant waivers shall include, but need not be limited to, California state preschool full-day program services programs, services provided by the California School Age Families Education Program (Article 7.1 (commencing with Section 54740) of Chapter 9 of Part 29 of Division 4 of Title 2), infant and toddler services, migrant services child care and development programs (Article 6 (commencing with Section 8230)), and early learning general child care and development programs operating pursuant to Article 8 (commencing with Section 8240).

SEC. 66. SEC. 57. Section 8264.6 of the Education Code is amended to read:

8264.6. The Superintendent may provide outreach services and technical assistance to new applicants or contracting agencies and to those providing services during nontraditional times, in underserved geographic areas, and for children with specific service needs, including infants and toddlers under three years of age.

SEC. 67. SEC. 58. Section 8264.7 of the Education Code is amended to read:

8264.7. (a) The Superintendent shall establish rules and regulations for the staffing of all early learning services under contract with the department.

(b) Priority shall be given by the department to the employment of persons in early learning services with ethnic backgrounds that are similar to those of the child for whom services are provided.

(c) For purposes of staffing early learning services, the role of a teacher in child supervision means direct supervision of the children as well as supervision of aides and groups of children.

(d) Family child care homes shall operate pursuant to adult-to-child ratios prescribed in Chapter 7 (commencing with Section 86001) of Division 6 of Title 22 of the California Code of Regulations.

(e) Approval by the Superintendent of any ongoing or new programs seeking to operate under the ratios and standards established by the Superintendent under this chapter shall be based upon the following considerations:

(1) The type of facility in which care is being or is to be provided.

(2) The ability of the Superintendent to implement a funding source change.

(3) The proportion of nonsubsidized children enrolled or to be enrolled by the agency.

(4) The most cost-effective ratios possible for the type of services provided or to be provided by the agency.

(f) The Superintendent shall apply for waivers of federal requirements as are necessary to carry out this section.

SEC. 68. SEC. 59. Section 8264.8 of the Education Code is repealed.

SEC. 69. SEC. 60. Section 8264.8 is added to the Education Code, to read:

8264.8. (a) Early learning and educational support programs shall maintain at least the following minimum ratios in all early learning services except for family child care home education networks operating pursuant to Article 8.5 (commencing with Section 8245):

(1) Infants, birth to 18 months old--1:3 adult-to-child ratio, 1:18 teacher-to-child ratio.

(2) Toddlers, 18 months up to their third birthday--1:4 adult-to-child ratio, 1:16 teacher-to-child ratio.

(3) Preschool, at least 30 months to kindergarten eligibility--1:8 adult-to-child ratio, 1:24 teacher-to-child ratio.

(4) Schoolage, enrolled in kindergarten to their 13th birthday--1:14 adult-to-child ratio, 1:28 teacher-to-child ratio.

(b) Compliance with the ratios established by subdivision (a) shall be determined based on actual attendance.

SEC. 70. Section 8265 of the Education Code is amended to read:

8265. (a) The Superintendent shall implement a 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) When establishing standards and assigned reimbursement rates, the Superintendent shall confer with applicant agencies.

(3) The reimbursement system, including standards and rates, shall be submitted to the Joint Legislative Budget Committee.

(4) The Superintendent may establish any regulations he or she deems advisable concerning conditions of service and hours of enrollment for children in the programs.

(b) The standard reimbursement rate shall be three thousand five hundred twenty-three dollars ($3,523) per unit of average daily enrollment for a 250-day year, increased by the cost-of-living adjustment granted by the Legislature beginning July 1, 1980.

(c) The 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) The plan shall provide for adjusting reimbursement on a case-by-case basis, in order to maintain service levels for agencies currently at a rate less than the standard reimbursement rate. Assigned reimbursement rates shall be increased only on the basis of one or more of the following:

(1) Loss of program resources from other sources.

(2) Need of an agency to pay the same rates as those prevailing in the local community.

(3) Increased costs directly attributable to new or different regulations.

(4) Documented increased costs necessary to maintain the prior year's level of service and ensure the continuation of threatened programs. Agencies funded at the lowest rates shall be given first priority for increases.

(e) The plan shall provide for expansion of early learning services 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.

SEC. 61. Section 8265 of the Education Code is amended to read:

8265. (a) The Superintendent shall implement a 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) When establishing standards and assigned reimbursement rates, the Superintendent shall confer with applicant agencies.

(3) The reimbursement system, including standards and rates, shall be submitted to the Joint Legislative Budget Committee.

(4) The Superintendent may establish any regulations he or she deems advisable concerning conditions of service and hours of enrollment for children in the programs.

(b) The standard reimbursement rate shall be nine thousand twenty-four dollars and seventy-five cents ($9,024.75) per unit of average daily enrollment for a 250-day year, and commencing with the 2015-16 fiscal year, shall be increased by the cost-of-living adjustment granted by the Legislature annually pursuant to Section 42238.15.

(c) The 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) The plan shall provide for adjusting reimbursement on a case-by-case basis, in order to maintain service levels for agencies currently at a rate less than the standard reimbursement rate. Assigned reimbursement rates shall be increased only on the basis of one or more of the following:

(1) Loss of program resources from other sources.

(2) Need of an agency to pay the same child care rates as those prevailing in the local community.

(3) Increased costs directly attributable to new or different regulations.

(4) Documented increased costs necessary to maintain the prior year's level of service and ensure the continuation of threatened programs. Agencies funded at the lowest rates shall be given first priority for increases.

Child care agencies funded at the lowest rates shall be given first priority for increases.

(e) The plan shall provide for expansion of child development programs early learning services 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.

SEC. 71. SEC. 62. Section 8266 of the Education Code is amended to read:

8266. (a) Notwithstanding Section 8265, the assigned reimbursement rate of an early learning program a center-based contracting agency (1) contracting with the department, (2) operating under licensing standards for facilities specified in Chapter 3 (commencing with Section 1500) of Division 2 of the Health and Safety Code and by Title 22 of the California Code of Regulations, and (3) with less than a majority of subsidized children enrolled in the facility, shall be equivalent to the fee paid for the same service by families of nonsubsidized children.

(b) It is not the intent of the Legislature to preclude an agency with a contract with the department from adjusting the fees charged to nonsubsidized children during the contract year. In no event shall the assigned reimbursement rate exceed the standard reimbursement rate established pursuant to Section 8265.

(c) An agency subject to this section shall provide documentation to the department that subsidized children, as necessary and appropriate, shall receive supportive services through county welfare departments, resource and referral programs, or other existing community resources, or all of them.

SEC. 72. SEC. 63. Section 8266.1 of the Education Code is amended to read:

8266.1. Commencing with the 1995-96 fiscal year and each fiscal year thereafter, for the purposes of this chapter, reimbursement rates shall be adjusted by the following reimbursement factors for early learning services with a standard reimbursement rate, but shall not apply to the resource and referral programs set forth in Article 2 (commencing with Section 8210), the alternative payment programs set forth in Article 3 (commencing with Section 8220), or the part-day California state preschool programs set forth in Article 7 (commencing with Section 8235).

(a) For early learning services serving children for less than four hours per day, the reimbursement factor is 55 percent of the standard reimbursement rate.

(b) For early learning services serving children for not less than four hours per day, and less than six and one-half hours per day, the reimbursement factor is 75 percent of the standard reimbursement rate.

(c) For early learning services serving children for not less than six and one-half hours per day, and less than 101/2 hours per day, the reimbursement factor is 100 percent of the standard reimbursement rate.

(d) For early learning services serving children for 101/2 hours or more per day, the reimbursement factor is 118 percent of the standard reimbursement rate.

SEC. 73. SEC. 64. Section 8272 of the Education Code is amended to read:

8272. (a) The rules, regulations, and guidelines adopted by the Superintendent pursuant to Sections 8261 and 8269 shall permit reimbursement for interest paid by contractors on private sector debt financing for the purchase, lease-purchase, repair, or renovation of early learning and educational support facilities owned or leased by contractors providing early learning and educational support services.

(b) The Superintendent shall adopt regulations requiring contractors to demonstrate that the amount of interest paid in a year on private sector debt financing for the purposes identified in subdivision (a) does not exceed the value obtained by the state in the use of the facilities during the year for the early learning and educational support services program. The regulations shall include, but not be limited to, the following methods of making this demonstration:

(1) Amortization of a loan or lease-purchase contract on a straight-line basis for the purchase price of a portable building, including any transportation charges, installation charges, loan fees, taxes, points, or other fees associated with the purchase, over a period of 15 years or more.

(2) Amortization of a loan or lease-purchase contract on a straight-line basis for the purchase price of a permanent building and real estate, including any loan fees, taxes, points, or other fees associated with the purchase, over a period of 15 years or more.

(3) Evidence acceptable to the Superintendent that loan payments for the purchase of a portable building or permanent building and real estate, including principal and interest, do not exceed the fair market rental cost that the contractor would have paid if the property was not purchased.

(c) Loans or lease-purchase agreements amortized over the number of years designated in subdivision (b), but due in a fewer number of years, shall not be disallowed because of the shorter due date.

SEC. 74. SEC. 65. Section 8275 of the Education Code is amended to read:

8275. (a) The Superintendent may reimburse approvable startup costs of agencies or facilities in an amount not to exceed 15 percent of the expansion or increase of each agency's total contract amount. Under no circumstances shall reimbursement for startup costs result in an increase in the agency's total contract amount. These funds shall be available for all of the following:

(1) The employment and orientation of necessary staff.

(2) The setting up of the program and facility.

(3) The finalization of rental agreements and the making of necessary deposits.

(4) The purchase of a reasonable inventory of materials and supplies.

(5) The purchase of an initial premium for insurance.

(b) Agencies shall submit claims for startup costs with their first quarterly reports.

(c) The Legislature recognizes that allowances for startup costs are necessary for the establishment and stability of new early learning and educational support programs.

SEC. 75. SEC. 66. Section 8276.7 of the Education Code is amended to read:

8276.7. Unless specifically exempted by the Legislature, the administrative cost for all state-funded early learning and educational support programs and all federal programs administered by the state shall not exceed 15 percent of the funds provided for those programs. Eighty-five percent of these funds shall be used to provide direct services in accordance with rules and regulations, or contractual funding terms and conditions prescribed by the Superintendent.

SEC. 76. SEC. 67. Section 8277 of the Education Code is amended to read:

8277. (a) The Superintendent shall establish regulations for the allocation of capital outlay funds provided pursuant to Sections 8277.1 to 8277.4, inclusive, to benefit children most needing early learning and educational support programs. The first priority for all capital outlay shall be given to facilities located in geographic areas with no other available enrollment slots in existing subsidized and nonsubsidized facilities. This capital outlay funding shall be used solely for purposes of renovation and repair of existing buildings.

(b) The Superintendent shall establish qualifications for determining the eligibility of contracting agencies and care homes to apply for capital outlay funds.

SEC. 77. SEC. 68. Section 8277.8 of the Education Code is amended to read:

8277.8. (a) In the event that a school district elects to discontinue its contract for early learning and educational support services, the facilities owned by the school district and constructed through the provisions of the local tax override for early learning and educational support program purposes shall be made available to the local contractor whose bid is accepted for continuation of the services.

(b) The rent for the facilities shall not exceed the prevailing rental rate for such facilities.

SEC. 78. Section 8278.3 of the Education Code is amended to read:

8278.3. (a) (1) The Child Care Facilities Revolving Fund is hereby established in the State Treasury to provide funding for the renovation, repair, or improvement of an existing building to make the building suitable for licensure for early learning and educational support services and for the purchase of new relocatable facilities for lease to school districts and contracting agencies that provide early learning and educational support services pursuant to this chapter. The Superintendent may transfer state funds appropriated for facilities into this fund for allocation to school districts and contracting agencies, as specified, for the purchase, transportation, and installation of facilities for replacement and expansion of capacity. School districts and contracting agencies using facilities made available by the use of these funds shall be charged a leasing fee, either at a fair market value for those facilities or at an amount sufficient to amortize the cost of purchase and relocation, whichever amount is lower, over a 10-year period. Upon full repayment of the purchase and relocation costs, title shall transfer from the State of California to the school district or contracting agency. The Superintendent shall deposit all revenue derived from the lease payments into the Child Care Facilities Revolving Fund.

(2) Notwithstanding Section 13340 of the Government Code, all moneys in the fund, including moneys deposited from lease payments, are continuously appropriated, without regard to fiscal years, to the Superintendent for expenditure pursuant to this article.

(b) On or before August 1 of each fiscal year, the Superintendent shall submit to the Department of Finance and the Legislative Analyst's Office a report detailing the number of funding requests received and their purpose, the types of agencies that received funding from the Child Care Facilities Revolving Fund, the increased capacity that these facilities generated, a description of the manner in which the facilities are being used, and a projection of the lease payments collected and the funds available for future use.

(c) A school district or county office of education that provides services pursuant to the California School Age Families Education Program (Article 7.1 (commencing with Section 54740) of Chapter 9 of Part 29 of Division 4 of Title 2) is eligible to apply for and receive funding pursuant to this section.

SEC. 69. Section 8278.3 of the Education Code is amended to read:

8278.3. (a) (1) The Child Care Facilities Revolving Fund is hereby established in the State Treasury to provide funding for the renovation, repair, or improvement of an existing building to make the building suitable for licensure for child care and development early learning and educational support services and for the purchase of new relocatable child care facilities for lease to local educational agencies and contracting agencies that provide child care and development early learning and educational support services, pursuant to this chapter. The Superintendent may transfer state funds appropriated for child care facilities into this fund for allocation to local educational agencies and contracting agencies, as specified, for the purchase, transportation, and installation of facilities for replacement and expansion of capacity. Local educational agencies and contracting agencies using facilities made available by the use of these funds shall be charged a leasing fee, either at a fair market value for those facilities or at an amount sufficient to amortize the cost of purchase and relocation, whichever amount is lower, over a 10-year period. Upon full repayment of the purchase and relocation costs, title shall transfer from the State of California to the local educational agency or contracting agency. The Superintendent shall deposit all revenue derived from the lease payments into the Child Care Facilities Revolving Fund.

(2) Notwithstanding Section 13340 of the Government Code, all moneys in the fund, including moneys deposited from lease payments, are continuously appropriated, without regard to fiscal years, to the Superintendent for expenditure pursuant to this article.

(3) Augmentations to the Child Care Facilities Revolving Fund made in the Budget Act of 2014 shall be used for renovation or repair of existing local educational agency facilities or new relocatable child care facilities for lease to local educational agencies that provide California state preschool program services pursuant to this chapter.

(b) On or before August 1 of each fiscal year, the Superintendent shall submit to the Department of Finance and the Legislative Analyst's Office a report detailing the number of funding requests received and their purpose, the types of agencies that received funding from the Child Care Facilities Revolving Fund, the increased capacity that these facilities generated, a description of the manner in which the facilities are being used, and a projection of the lease payments collected and the funds available for future use.

(c) A local educational agency that provides child care pursuant to the California School Age Families Education Program (Article 7.1 (commencing with Section 54740) of Chapter 9 of Part 29 of Division 4 of Title 2) is eligible to apply for and receive funding pursuant to this section.

SEC. 79. SEC. 70. Section 8279.1 of the Education Code is amended to read:

8279.1. (a) The Legislature recognizes that early learning and educational support programs have made valuable contributions towards ensuring that public assistance recipients will be able to accept and maintain employment or employment-related training. Therefore, it is the intent of the Legislature that the Superintendent ensure that counties comply with the requirements of Section 8279.

(b) The Superintendent shall ensure each county's compliance with Section 8279 by not issuing funds to a local contractor within a county until the Superintendent has received written certification from that county that the level of expenditure for services provided by the county has been maintained at the 1970-71 fiscal year level pursuant to Section 8279. Funding provided by a county to a local contractor shall not adversely affect the reimbursement received by the agency from the Superintendent pursuant to Section 8265, 8265.5, or 8266.

SEC. 80. SEC. 71. Section 8279.3 of the Education Code is amended to read:

8279.3. (a) The department shall disburse augmentations to the base allocation for the expansion of early learning and educational support programs to promote equal access to these services across the state.

(b) The Superintendent shall use the formula developed pursuant to subdivision (c) and the priorities identified by local planning councils, unless those priorities do not meet the requirements of state or federal law, as a guide in disbursing augmentations pursuant to subdivision (a).

(c) The Superintendent shall develop a formula for prioritizing the disbursement of augmentations pursuant to this section. The formula shall give priority to allocating funds to underserved areas. The Superintendent shall develop the formula by using the definition of "underserved area" in subdivision (ai) (ah) of Section 8208 and direct impact indicators of need for early learning and educational support services in the county or subcounty areas. For purposes of this section, "subcounty areas" include, but are not limited to, school districts, census tracts, or ZIP Code areas that are deemed by the Superintendent to be most appropriate to the type of program receiving an augmentation. Direct impact indicators of need may include, but are not limited to, the teenage pregnancy rate, the unemployment rate, area household income, or the number or percentage of families receiving public assistance, eligible for Medi-Cal, or eligible for free or reduced-price school meals, and any unique characteristics of the population served by the type of program receiving an augmentation.

(d) To promote equal access to services, the Superintendent shall include in guidelines developed for use by local planning councils pursuant to subdivision (d) of Section 8499.5 guidance on identifying underserved areas and populations within counties. This guidance shall include reference to the direct impact indicators of need described in subdivision (c).

SEC. 81. SEC. 72. Section 8279.4 of the Education Code is amended to read:

8279.4. The Legislature finds and declares the following:

(a) There is a serious shortage of quality facilities throughout the state.

(b) It is in the interest of the state's children and families, and the state's economic growth, to encourage the expansion of existing facilities by assisting communities and interested government and private entities to finance facilities.

(c) In addition to regional resource centers described in Provision 7(d) of Item 6110-196-0001 of the Budget Act of 1999, which focus on developing care capacity in underserved areas of the state, there is a need to access capital for facilities on a systematic basis, especially to use limited public sector funds to leverage a greater private sector role in financing facilities. The Legislature finds and declares that a financial intermediary could fill this role and support the regional resource centers and other local entities that work with potential providers by functioning as a centralized repository of training, best practices, and expertise on facilities financing.

SEC. 82. SEC. 73. Section 8279.5 of the Education Code is amended to read:

8279.5. (a) The Superintendent shall contract with a nonprofit organization to serve as a financial intermediary. The nonprofit organization shall have staff who have expertise in financing and capital expansion, are knowledgeable about the early learning and educational support field, and have the ability to develop and implement a plan to increase the availability of financing to renovate, expand, and construct facilities, both in centers and family care homes.

(b) The financial intermediary selected by the Superintendent shall undertake activities designed to increase funds available from the private and public sectors for the financing of facilities. These activities shall include, but are not limited to, all of the following:

(1) Soliciting capital grants and program-related investments from foundations and corporations.

(2) Building partnerships with foundations and corporations.

(3) Developing lending commitments, linked deposits, and other financing programs with conventional financial institutions.

(4) Coordinating private sources of capital with existing public sector sources of financing for facilities, including, but not limited to, the Department of Housing and Community Development and the California Infrastructure and Economic Development Bank.

(5) Coordinating financing efforts with the technical assistance provided by the regional resource centers described in Provision 7(d) of Item 6110-196-0001 of the Budget Act of 1999, and other local entities that work with potential providers.

(c) This section shall only be implemented to the extent that funds are appropriated for this purpose in the annual Budget Act.

SEC. 83. SEC. 74. Section 8279.7 of the Education Code is amended to read:

8279.7. (a) The Legislature recognizes the importance of providing high-quality early learning and educational support services. It is, therefore, the intent of the Legislature to assist counties in improving the retention and professional growth of qualified instructional employees who work directly with children who receive state-subsidized early learning services.

(b) It is further the intent of the Legislature, in amending this section during the 2009-10 Regular Session, to address the unique challenges of the County of Los Angeles, in which an estimated 60,000 low-income children receive subsidized care in nonstate-funded care settings and an additional 50,000 eligible children are waiting for subsidized services.

(c) (1) Except as provided in paragraph (2), the funds appropriated for the purposes of this section by paragraph (11) of Schedule (b) of Item 6110-196-0001 of Section 2.00 of the Budget Act of 2000 (Chapter 52 of the Statutes of 2000), and that are described in subdivision (i) of Provision 7 of that item, and any other funds appropriated for purposes of this section, shall be allocated to local planning councils based on the percentage of state-subsidized, early learning services funds received in that county, and shall be used to address the retention of qualified instructional employees in state-subsidized centers.

(2) Of the funds identified in paragraph (1), funds qualified pursuant to subparagraphs (A) to (C), inclusive, may also be used to address the retention and professional growth of qualified persons working in licensed facilities providing early learning services and that serve a majority of children who receive subsidized early learning services pursuant to this chapter, including, but not limited to, family care homes as defined in Section 1596.78 of the Health and Safety Code. To qualify for use pursuant to this paragraph, the funds shall meet all of the following requirements:

(A) The funds are allocated for use in the County of Los Angeles.

(B) The funds are appropriated in the annual Budget Act.

(C) The funds are unexpended after addressing the retention of qualified employees in state-subsidized centers and family child care home education networks.

(d) The department shall develop guidelines for use by local planning councils in developing county plans for the expenditure of funds allocated pursuant to this section. These guidelines shall be consistent with the department's assessment of the current needs of the subsidized workforce, and shall be subject to the approval of the Department of Finance. Any county plan developed pursuant to these guidelines shall be approved by the department before the allocation of funds to the local planning council.

(e) Funds provided to a county for the purposes of this section shall be used in accordance with the plan approved pursuant to subdivision (d). A county with an approved plan may retain up to 1 percent of the county's total allocation made pursuant to this section for reimbursement of administrative expenses associated with the planning process.

(f) The Superintendent shall provide an annual report, no later than April 10 of each year, to the Legislature, the Department of Finance, and the Governor that includes, but is not limited to, a summary of the distribution of the funds by county and a description of the use of the funds.

SEC. 84. SEC. 75. Section 8282 of the Education Code is amended to read:

8282. (a) The Legislature finds and declares that the state makes a substantial, annual investment in preschool, infant and toddler, and schoolage early learning services for eligible families. It is in the best interests of children and their families, and the taxpayers of California, to have information about the development and learning abilities of children developed in these settings, health and other information transferred to, or otherwise available to, the pupil's elementary school.

(b) When a child in a state-funded preschool or infant and toddler program will be transferring to a local public school, the preschool or infant and toddler program shall provide the parent or guardian with information from the previous year deemed beneficial to the pupil and the public school teacher, including, but not limited to, development issues, social interaction abilities, health background, and diagnostic assessments, if any. The preschool or infant and toddler program may, with the permission of the parent or guardian, transfer this information to the pupil's elementary school.

(c) Any child who has participated in a state subsidized preschool program that maintains results-based standards, including the desired results accountability system, may have the performance information transferred to any subsequent or concurrent public school setting. Any transferred information shall be in summary form and only accomplished with the permission of the parent or guardian.

SEC. 85. SEC. 76. Section 8320 of the Education Code is amended to read:

8320. The governing board of any school district or a county superintendent of schools with the approval of the county board of education is authorized to establish and maintain early learning and educational support programs upon the approval of, and subject to the regulations of the Superintendent.

SEC. 86. SEC. 77. Section 8321 of the Education Code is amended to read:

8321. (a) The county superintendent of schools in each county, with the approval of the county board of education and the Superintendent, shall have the authority to establish and maintain early learning services in the same manner and to the same extent as governing boards of school or community college districts, except that nothing in this section shall be construed as vesting in the county superintendents of schools any authority to alone effect the levy and collection of any county, school, or other local taxes for the support of any early learning services.

(b) The establishment and maintenance of any early learning services by the county superintendent of schools shall be undertaken, subject to the prior approval of both the county board of education and the Superintendent, upon the application of one or more school districts under his or her jurisdiction.

SEC. 87. SEC. 78. Section 8324 of the Education Code is amended to read:

8324. The employees of school districts or community college districts, or county superintendents of schools in early learning services under this division shall have the same rights and privileges as are granted to employees of the same agencies in children's centers.

SEC. 88. SEC. 79. Section 8327 of the Education Code is amended to read:

8327. Notwithstanding any other provision of this chapter, the governing board of a school district or community college district, county superintendent of schools, or other unit of local general purpose government may enter into agreements with any city, city and county, or other public agency, or with a private foundation, nonprofit corporation, or proprietary agency for the furnishing to, or use by, the governing board, county superintendent of schools, or other unit of local general purpose government in carrying out the provisions of this chapter, of property, facilities, personnel, supplies, equipment, and other necessary items and such city, county, city and county, other public agency, or private foundation or nonprofit corporation, is authorized to enter into the agreements.

SEC. 89. SEC. 80. Section 8328 of the Education Code is amended to read:

8328. (a) The governing board of any school district or the county superintendent of schools shall establish in the county treasury a fund to be known as the "child development fund" into which shall be paid all funds received by the district or the county for, or from the operation of, early learning and educational support services under this chapter. The costs incurred in the maintenance and operation of services shall be paid from the fund, with accounting to reflect specific funding sources.

(b) Funds of a district derived from the receipt of district taxes or derived from moneys apportioned to the district for the support of schools of the district, in addition to state moneys appropriated for the support of services, fees, and federal funds, may be expended for, or in connection with these services.

SEC. 90. SEC. 81. Section 8329 of the Education Code is amended to read:

8329. The governing board of any school district maintaining an early learning and educational support program may include in its budget the amount necessary to initiate, operate, and maintain a program pursuant to this chapter and the board of supervisors shall levy a school district tax necessary to raise that amount. The tax shall be in addition to any other school district tax authorized by law to be levied.

SEC. 91. SEC. 82. The heading of Article 15.2 (commencing with Section 8335) of Chapter 2 of Part 6 of Division 1 of Title 1 of the Education Code is amended to read:

15.2. Subsidy Plan for the City and County of San Francisco

SEC. 92. SEC. 83. Section 8335.1 of the Education Code is amended to read:

8335.1. Before implementing the local subsidy plan, the City and County of San Francisco, in consultation with the department, shall develop an individualized county care subsidy plan for the city and county that includes the following four elements:

(a) An assessment to identify the city and county's goal for its subsidized care system. The assessment shall examine whether the current structure of subsidized care funding adequately supports working families in the city and county and whether the city and county's care goals coincide with the state's requirements for funding, eligibility, priority, and reimbursement. The assessment shall also identify barriers in the state's care subsidy system that inhibit the city and county from meeting its care goals. In conducting the assessment, the city and county shall consider all of the following:

(1) The general demographics of families who are in need of care, including employment, income, language, ethnic, and family composition.

(2) The current supply of available subsidized care.

(3) The level of need for various types of subsidized care including, but not limited to, infant and toddler care, after-hours care, and care for children with exceptional needs.

(4) The city and county's self-sufficiency income level.

(5) Income eligibility levels for subsidized care.

(6) Family fees.

(7) The cost of providing care.

(8) The regional market rates, as established by the department, for different types of care.

(9) The standard reimbursement rate or state per diem for centers operating under contracts with the department.

(10) Trends in the county's unemployment rate and housing affordability index.

(b) Development of a local policy to eliminate state-imposed regulatory barriers to the city and county's achievement of its desired outcomes for subsidized care.

(1) The local policy shall do all of the following:

(A) Prioritize lowest income families first.

(B) Follow the family fee schedule established pursuant to subdivision (f) of Section 8263 for those families that are income eligible, as defined by Section 8263.1.

(C) Meet local goals that are consistent with the state's care goals.

(D) Identify existing policies that would be affected by the city and county's care subsidy plan.

(E) (i) Authorize any agency that provides early learning and educational support services in the city and county through a contract with the department to apply to the department to amend existing contracts in order to benefit from the local policy once it is adopted.

(ii) The department shall approve an application to amend an existing contract if the care subsidy plan is approved pursuant to subdivision (b) of Section 8335.3, or modified pursuant to subdivision (c) of Section 8335.3.

(iii) The contract of a department contractor who does not elect to request an amendment to its contract remains operative and enforceable.

(2) (A) The city and county shall, by the end of the first fiscal year of operation under the approved care subsidy plan, demonstrate an increase in the aggregate child days of enrollment in the county as compared to the enrollment in the final quarter of the 2004-05 fiscal year.

(B) The amount of the increase shall be at least equal to the aggregate child days of enrollment in the final quarter of the 2004-05 fiscal year for all contracts amended as provided in subparagraph (E) of paragraph (1), under which the contractor receives an increase in its reimbursement rate, multiplied by 2 percent.

(C) The amount of the increase shall also be proportional to the total contract maximum reimbursable amount to reflect the changes in the budget allocation for each fiscal year of the pilot project.

(3) The local policy may supersede state law concerning care subsidy programs with regard only to the following factors:

(A) Eligibility criteria including, but not limited to, age, family size, time limits, income level, inclusion of former and current CalWORKs participants, and special needs considerations, except that the local policy may not deny or reduce eligibility of a family that qualifies for care pursuant to Section 8353. Under the local policy, a family that qualifies for care pursuant to Section 8354 shall be treated for purposes of eligibility and fees in the same manner as a family that qualifies for subsidized care on another basis pursuant to the local policy.

(B) Fees including, but not limited to, family fees, sliding scale fees, and copayments for those families that are not income eligible, as defined by Section 8263.1.

(C) Reimbursement rates.

(D) Methods of maximizing the efficient use of subsidy funds, including, but not limited to, multiyear contracting with the department for early learning services, and interagency agreements that allow for flexible and temporary transfer of funds among agencies.

(c) Recognition that all funding sources utilized by direct service contractors that provide early learning and educational support services in the city and county are eligible to be included in the care subsidy plan of the city and county.

(d) Establishment of measurable outcomes to evaluate the success of the plan to achieve the city and county's care goals and to overcome any barriers identified in the state's care subsidy system. The State Department of Social Services shall have an opportunity to review and comment on the proposed measurable outcomes before they are submitted to the local planning council for approval pursuant to Section 8335.3.

SEC. 93. SEC. 84. Section 8335.5 of the Education Code is amended to read:

8335.5. The City and County of San Francisco may implement an individualized county care subsidy plan as a pilot project pursuant to this article until July 1, 2016, at which date the city and county shall terminate the plan. From July 1, 2016, to July 1, 2018, inclusive, the city and county shall phase out the individualized county care subsidy plan and, beginning July 1, 2018, shall implement the state's requirements for care subsidies. A child enrolling for the first time for subsidized care in the city and county on and after July 1, 2016, shall not be enrolled in the pilot project established pursuant to this article, and is subject to existing state laws and regulations regarding eligibility and priority.

SEC. 94. SEC. 85. The heading of Article 15.4 (commencing with Section 8347) of Chapter 2 of Part 6 of Division 1 of Title 1 of the Education Code is amended to read:

15.4. Individualized County Care Subsidy Plan

SEC. 95. SEC. 86. Section 8347 of the Education Code is amended to read:

8347. On and after July 1, 2014, the individualized county care subsidy plan for the County of San Mateo that was developed as a pilot project pursuant to Article 15.3 (commencing with Section 8340), as that article read on January 1, 2013, may continue in existence and may be implemented in accordance with the provisions of this article. The plan shall ensure that care subsidies received by the County of San Mateo are used to address local needs, conditions, and priorities of working families in those communities.

SEC. 96. SEC. 87. Section 8347.2 of the Education Code is amended to read:

8347.2. For purposes of this article, "plan" means an individualized county care subsidy plan developed and approved under the pilot project described in Section 8347, which includes all of the following:

(a) An assessment to identify the county's goal for its subsidized care system. The assessment shall examine whether the current structure of subsidized care funding adequately supports working families in the county and whether the county's care goals coincide with the state's requirements for funding, eligibility, priority, and reimbursement. The assessment shall also identify barriers in the state's care subsidy system that inhibit the county from meeting its care goals. In conducting the assessment, the county shall consider all of the following:

(1) The general demographics of families who are in need of care, including employment, income, language, ethnic, and family composition.

(2) The current supply of available subsidized care.

(3) The level of need for various types of subsidized care services, including, but not limited to, infant care, after-hours care, and care for children with exceptional needs.

(4) The county's self-sufficiency income level.

(5) Income eligibility levels for subsidized care.

(6) Family fees.

(7) The cost of providing care.

(8) The regional market rates, as established by the department, for different types of care.

(9) The standard reimbursement rate or state per diem for centers operating under contracts with the department.

(10) Trends in the county's unemployment rate and housing affordability index.

(b) (1) Development of a local policy to eliminate state-imposed regulatory barriers to the county's achievement of its desired outcomes for subsidized care.

(2) The local policy shall do all of the following:

(A) Prioritize lowest income families first.

(B) Follow the family fee schedule established pursuant to subdivision (g) of Section 8263 for those families that are income eligible, as defined by Section 8263.1.

(C) Meet local goals that are consistent with the state's care goals.

(D) Identify existing policies that would be affected by the county's plan.

(E) (i) Authorize any agency that provides early learning and educational support services in the county through a contract with the department to apply to the department to amend existing contracts in order to benefit from the local policy.

(ii) The department shall approve an application to amend an existing contract if the plan is modified pursuant to Section 8347.3.

(iii) The contract of a department contractor who does not elect to request an amendment to its contract remains operative and enforceable.

(3) The local policy may supersede state law concerning care subsidy programs with regard only to the following factors:

(A) Eligibility criteria, including, but not limited to, age, family size, time limits, income level, inclusion of former and current CalWORKs participants, and special needs considerations, except that the local policy may not deny or reduce eligibility of a family that qualifies for care pursuant to Section 8353. Under the local policy, a family that qualifies for care pursuant to Section 8354 shall be treated for purposes of eligibility and fees in the same manner as a family that qualifies for subsidized care on another basis pursuant to the local policy.

(B) Fees, including, but not limited to, family fees, sliding scale fees, and copayments for those families that are not income eligible, as defined by Section 8263.1.

(C) Reimbursement rates.

(D) Methods of maximizing the efficient use of subsidy funds, including, but not limited to, multiyear contracting with the department for early learning services, and interagency agreements that allow for flexible and temporary transfer of funds among agencies.

(c) Recognition that all funding sources utilized by direct service contractors that provide early learning and educational support services in the county are eligible to be included in the county's plan.

(d) Establishment of measurable outcomes to evaluate the success of the plan to achieve the county's care goals, and to overcome any barriers identified in the state's care subsidy system.

SEC. 97. SEC. 88. Section 8347.3 of the Education Code is amended to read:

8347.3. (a) Within 30 days of receiving any modification to the plan, the Early Education and Support Division shall review and either approve or disapprove that modification to the plan.

(b) The Early Education and Support Division may disapprove only those portions of modifications to the plan that are not in conformance with this article or that are in conflict with federal law.

SEC. 98. SEC. 89. Section 8347.4 of the Education Code is amended to read:

8347.4. (a) The county shall annually prepare and submit to the Legislature, the State Department of Social Services, and the department a report that summarizes the success of the county's plan, and the county's ability to maximize the use of funds and to improve and stabilize care in the county.

(b) (1) The requirement for submitting a report imposed under subdivision (a) is inoperative on January 1, 2018, pursuant to Section 10231.5 of the Government Code.

(2) A report to be submitted pursuant to subdivision (a) shall be submitted in compliance with Section 9795 of the Government Code.

SEC. 99. SEC. 90. The heading of Article 15.5 (commencing with Section 8350) of Chapter 2 of Part 6 of Division 1 of Title 1 of the Education Code is amended to read:

15.5. Recipients of the CalWORKs Program

SEC. 100. SEC. 91. Section 8350 of the Education Code is amended to read:

8350. (a) It is the intent of the Legislature in enacting this article to ensure that recipients of aid under Chapter 2 (commencing with Section 11200) of Part 3 of Division 9 of the Welfare and Institutions Code, or any successor program, and former recipients who have left aid for employment, are connected as soon as possible to local resources, make stable arrangements for services, and continue to receive subsidized care after they no longer receive aid as long as they require those services and meet the eligibility requirements set forth in Sections 8263 and 8263.1.

(b) This article establishes three stages of care services through which a recipient of aid under Chapter 2 (commencing with Section 11200) of Part 3 of Division 9 of the Welfare and Institutions Code, or any successor program, will pass. Further, as families' needs are met by county welfare departments and later by other local early learning and educational support contractors, it is the intent of the Legislature that families experience no break in their services due to a transition between the three stages of care services.

SEC. 101. SEC. 92. Section 8352 of the Education Code is amended to read:

8352. (a) As soon as appropriate, a county welfare department shall refer families needing services to the local resource and referral program funded pursuant to Article 2 (commencing with Section 8210). Resource and referral program staff shall colocate with a county welfare department's case management office for aid under Chapter 2 (commencing with Section 11200) of Part 3 of Division 9 of the Welfare and Institutions Code, or any successor program, or arrange other means of swift communication with parents and case managers of this aid. The local resource and referral program shall assist families to establish stable arrangements as soon as possible. These arrangements may include licensed and license-exempt care.

(b) Information shall be provided to parents in the county of service at the time the family is determined eligible for services, and at recertification, by one of the following:

(1) An alternative payment program.

(2) A resource and referral program.

(3) A partnership between the alternative payment program and the resource and referral program.

(c) The information provided by the program or partnership shall be to assist parents in making informed choices about available types of care that would both offer a safe, caring, and age-appropriate early learning and educational support environment for children, as well as support the parents' work activities, including, but not limited to, information about high-quality early learning and educational support options and resources specified in this subdivision. The program or partnership may utilize resources from a list posted on the department's Internet Web site pursuant to subdivision (c) of Section 8206 if this list is available. If the department does not create a list of resources pursuant to subdivision (c) of Section 8206, the program or partnership may develop local resources. These resources shall include, but are not limited to, the following:

(1) Information regarding how to select services that meet the needs of the parent and child.

(2) Information on licensing requirements and procedures for centers and family care homes.

(3) Trustline requirements for homes and providers exempt from licensure.

(4) A range of possible early learning and educational support options from which a parent may choose.

(5) Information on available care subsidies and eligibility requirements.

(6) Quality indicators, including provider or educator training, accreditation, staff stability, group size, ratio of children to staff, environments that support the healthy development of children, parent involvement, and communication between the parent and provider.

(7) Information on quality rating and improvement systems, where available.

(d) The program or partnership shall also provide parenting information to parents.

(e) A program operating pursuant to this article shall, within two business days of being notified of a revocation or a temporary suspension order for a licensed facility, do both of the following:

(1) Terminate payment to the facility.

(2) Notify each parent and the facility in writing that payment has been terminated and the reason for the termination.

(f) A program operating pursuant to this article shall, upon being notified that a licensed facility has been placed on probation, provide written notice to each parent utilizing the facility that the facility has been placed on probation and that the parent has the option of selecting a different provider or remaining with the facility without risk of subsidy payments to the provider being terminated. The Legislature urges each agency operating pursuant to this section to provide the written notice required by this subdivision in the primary language of the parent, to the extent feasible.

SEC. 102. SEC. 93. Section 8353 of the Education Code is amended to read:

8353. (a) The second stage of care begins when the county determines that the recipient's work or approved work activity is stable or when a recipient is transitioning off of aid and care is available through a local stage two program. Second stage care may be provided to a family who elects to receive a lump-sum diversion payment or diversion services under Section 11266.5 of the Welfare and Institutions Code when a funded space is not immediately available for the family in third stage. The local stage two agency shall assist in moving families to stage three as quickly as feasible. Former CalWORKs recipients are eligible to receive services in stage one and stage two for up to a total of no more than 24 months after they leave cash aid, or until they are otherwise ineligible within that 24-month period. Family size and income for purposes of determining eligibility and calculating the family fee shall be determined pursuant to Sections 8263 and 8263.1. A family leaving cash aid under the CalWORKs program shall receive up to two years of care, if otherwise eligible, as needed to continue the family's employment. The provision of the two-year time limit is not intended to limit eligibility for care under Section 8354.

(b) The second stage shall be administered by agencies contracting with the department. These contractors may be either agencies that have an alternative payment contract pursuant to Section 8220.1 or county welfare departments that choose to administer this stage in order to continue to provide services for recipients or former recipients of aid. If the county chooses to contract with the department to provide alternative payment services, this contract shall not displace, or result in the reduction of an existing contract of, a current alternative payment program.

SEC. 103. SEC. 94. Section 8354 of the Education Code is amended to read:

8354. (a) The third stage of care begins when a funded space is available. CalWORKs recipients are eligible for the third stage of care. Persons who received a lump-sum diversion payment or diversion services and former CalWORKs participants are eligible if they have an income that does not exceed 70 percent of the state median income pursuant to Section 8263.1. The third stage shall be administered by programs contracting with the department. Parents' eligibility for services will be governed by Section 8263 and regulations adopted by the department.

(b) In order to move welfare recipients and former recipients from their relationship with county welfare departments to relationships with institutions providing services to working families, it is the intent of the Legislature that families that are former recipients of aid, or are transitioning off aid, receive their assistance in the same fashion as other low-income working families. Therefore, it is the intent of the Legislature that families no longer rely on county welfare departments to obtain subsidies beyond the time they are receiving other services from the welfare department.

(c) A county welfare department shall not administer the third stage of care for CalWORKs recipients except to the extent to which it delivered those services to families receiving, or within one year of having received, Aid to Families with Dependent Children before the enactment of this section.

(d) This article does not preclude county welfare departments from operating an alternative payment program under contract with the department to serve families referred by child protective services.

SEC. 104. SEC. 95. Section 8355 of the Education Code is amended to read:

8355. Care during the third stage may be funded with moneys dedicated to current and former recipients of aid under Chapter 2 (commencing with Section 11200) of Part 3 of Division 9 of the Welfare and Institutions Code, or any successor program, including the federal funds appropriated to alternative payment program contractors in the 1996-97 fiscal year using the Budget Act's Section 28 process as described in subdivision (b). Nothing shall prevent services provided under stage three from being funded with moneys from other federal or state sources. Nothing in this article shall preclude current and former recipients of aid under Chapter 2 (commencing with Section 11200) of Part 3 of Division 9 of the Welfare and Institutions Code, or any successor program, from receiving services pursuant to other provisions of this chapter.

SEC. 105. SEC. 96. Section 8356 of the Education Code is amended to read:

8356. It is the intent of the Legislature that the department work with Head Start and California state preschool programs to generate extended-day and evening care for recipients of aid under Chapter 2 (commencing with Section 11200) of Part 3 of Division 9 of the Welfare and Institutions Code, or any successor program, through recruiting and training parents to be licensed and license-exempt care providers and shall facilitate connections between Head Start and California state preschool program contractors and child care certificate administrators, including counties and other alternative payment programs, so that funds available for Sections 8351, 8353, and 8354 cover the cost of this care.

SEC. 106. SEC. 97. Section 8357 of the Education Code is amended to read:

8357. (a) The cost of care services provided under this article shall be governed by regional market rates. Recipients of care services provided pursuant to this article shall be allowed to choose the care services of licensed providers or providers who are, by law, not required to be licensed, and the cost of that care shall be reimbursed by counties or agencies that contract with the department if the cost is within the regional market rate. For purposes of this section, "regional market rate" means care costing no more than 1.5 market standard deviations above the mean cost of care for that region. The regional market rate ceilings shall be established at the 85th percentile of the 2005 regional market rate survey for that region.

(b) Reimbursement to license-exempt providers shall not exceed 60 percent of the family child care home rate established pursuant to subdivision (a), effective July 1, 2011.

(c) Reimbursement to providers shall not exceed the fee charged to private clients for the same service.

(d) Reimbursement shall not be made for care services if care is provided by parents, legal guardians, or members of the assistance unit.

(e) A provider located on an Indian reservation or rancheria and exempted from state licensing requirements shall meet applicable tribal standards.

(f) For purposes of this section, "reimbursement" means a direct payment to the provider of care services, including license-exempt providers. If care is provided in the home of the recipient, payment may be made to the parent as the employer, and the parent shall be informed of his or her concomitant legal and financial reporting requirements. To allow time for the development of the administrative systems necessary to issue direct payments to providers, for a period not to exceed six months from the effective date of this article, a county or an alternative payment agency contracting with the department may reimburse the cost of services through a direct payment to a recipient of aid rather than to the provider.

(g) Counties and alternative payment programs shall not be bound by the rate limits described in subdivision (a) if there are, in the region, no more than two providers of the type needed by the recipient of services provided under this article.

(h) Notwithstanding any other law, reimbursements to providers based upon a daily rate may only be authorized under either of the following circumstances:

(1) A family has an unscheduled but documented need of six hours or more per occurrence, such as the parent's need to work on a regularly scheduled day off, that exceeds the certified need for care.

(2) A family has a documented need of six hours or more per day that exceeds no more than 14 days per month. In no event shall reimbursements to a provider based on the daily rate over one month's time exceed the provider's equivalent full-time monthly rate or applicable monthly ceiling.

(3) This subdivision shall not limit providers from being reimbursed for services using a weekly or monthly rate, pursuant to subdivision (c) of Section 8222.

SEC. 107. SEC. 98. Section 8358 of the Education Code is amended to read:

8358. (a) The department and the State Department of Social Services shall design a form for license-exempt providers to use for certifying health and safety requirements to the extent required by federal law. Until the form is adopted, the information required pursuant to Section 11324 of the Welfare and Institutions Code shall continue to be maintained by the county welfare department or contractor, as appropriate.

(b) The department and the State Department of Social Services shall do both of the following:

(1) Design a standard process for complaints by parents about the provision of care that is exempt from licensure.

(2) Design, in consultation with local planning councils, a single application for all early learning and educational support programs and all families.

(c) (1) County welfare departments and alternative payment programs shall encourage all providers who are licensed or who are exempt from licensure and who are providing care under Section 8351, 8353, or 8354, to secure training and education in basic child development.

(2) Provider job training provided to CalWORKs recipients that is funded by either the department or the State Department of Social Services shall include information on becoming a licensed provider.

(d) The department shall increase consumer education and consumer awareness activities so that parents will have the information needed to seek high-quality services. High-quality services shall include both licensed and license-exempt care.

SEC. 108. SEC. 99. Section 8358.5 of the Education Code is amended to read:

8358.5. Notwithstanding any other confidentiality requirement, the government or private agency administering subsidized care services shall share information necessary for the administration of the programs pursuant to this article and the CalWORKs program pursuant to Chapter 2 (commencing with Section 11200) of Part 3 of Division 9 of the Welfare and Institutions Code, for the time period for which the person receives services.

SEC. 109. SEC. 100. Section 8359.1 of the Education Code is amended to read:

8359.1. (a) It is the intent of the Legislature in enacting this article to provide sufficient funding through an appropriation in the annual Budget Act to fund the estimated cost of providing care for all individuals who are anticipated to need care to participate in the welfare-to-work programs and to transition to work.

(b) Funding for purposes of implementing this article shall be appropriated in the annual Budget Act.

SEC. 110. SEC. 101. The heading of Article 16 (commencing with Section 8360) of Chapter 2 of Part 6 of Division 1 of Title 1 of the Education Code is amended to read:

Article 16.

Early Learning and Educational Support Personnel Qualifications

SEC. 111. SEC. 102. Section 8360 of the Education Code is amended to read:

8360. (a) Early learning and educational support programs shall include a career ladder for instructional staff. The governing board of each contracting agency shall be encouraged to provide instructional staff and aides with salary increases for the successful completion of early childhood education or child development unit-based coursework and degrees.

(b) Any person who meets the following criteria is eligible to serve in an instructional capacity in an early learning and educational support program:

(1) Any person serving as a teacher in an early learning and educational support program providing early learning services shall possess a permit or credential issued by the Commission on Teacher Credentialing, including, but not limited to, one of the following:

(A) An associate teacher permit, or higher, authorizing service in the care, development, and instruction of children in early learning and educational support programs.

(B) A multiple subject credential with an authorization to teach prekindergarten to grade 12, inclusive, in a self-contained classroom.

(C) An elementary credential.

(D) A single subject credential in home economics.

(2) Any teacher qualifying under subparagraph (B), (C), or (D) of paragraph (1) must also have completed 12 semester units in early childhood education or child development, or both, or have two years' experience in early childhood education or an early learning and educational support program.

(3) Persons who are 18 years of age and older may be employed as aides and may be eligible for salary increases upon the completion of additional semester units in early childhood education or child development.

SEC. 112. SEC. 103. Section 8360.1 of the Education Code is repealed.

SEC. 113. SEC. 104. Section 8360.1 is added to the Education Code, to read:

8360.1. Except as waived under Section 8244, any entity operating early learning and educational support programs providing early learning services to children, pursuant to Article 5 (commencing with Section 8228), at two or more sites, shall employ a program director who possesses a permit or credential issued by the Commission on Teacher Credentialing authorizing supervision of an early learning and educational support program, including, but not limited to:

(a) An administrative credential.

(b) A children's center supervision permit.

(c) A program director permit.

(d) A waiver issued by the Superintendent pursuant to Section 8244.

SEC. 114. SEC. 105. Section 8360.2 of the Education Code is amended to read:

8360.2. Not later than 95 days after the governing board of a public agency sets the date a person employed by that board shall begin service in a position requiring a permit or credential, that person shall file, on or before that date, with the county superintendent of schools a valid permit issued on or before that date, authorizing him or her to serve in a position for which he or she was employed. Upon renewal of that permit, that person shall file that renewal with the county superintendent of schools no later than 95 days after the renewal.

SEC. 115. SEC. 106. Section 8400 of the Education Code is amended to read:

8400. It has come to the attention of the Legislature that:

(a) Existing law does not provide for an administrative appeal procedure to review and resolve disputes between the department and the over 750 local contracting agencies that contract with the department to provide early learning and educational support services to low-income families in California.

(b) All disputes are currently resolved in the already overburdened California courts resulting in a time-consuming and costly process for both the contract agency and the department. Extensive funds have been expended by the department for those purposes.

(c) The presence of public and private agencies, small as well as large, in the subsidized early learning and educational support delivery system provides client families with a range of desirable services, and cost-effective service mechanisms.

(d) The presence of an efficient administrative appeal procedure will ensure program stability and encourage retention in the delivery system of a range of service-providing agencies.

SEC. 116. SEC. 107. Section 8401 of the Education Code is amended to read:

8401. It is the intent of the Legislature to authorize an appeal process for the resolution of disputes between the department and local agencies that contract with the department pursuant to Section 8262 to provide early learning and educational support services or to furnish property, facilities, personnel, supplies, equipment, and administrative services.

SEC. 117. SEC. 108. Section 8402 of the Education Code is amended to read:

8402. (a) The department shall provide an independent appeal procedure to each contracting agency providing early learning and educational support services pursuant to Section 8262 that shall be conducted by the Office of Administrative Hearings and shall be provided upon an appeal petition of the contracting agency in any of the following circumstances:

(1) Termination of a contracting agency's contract.

(2) Denial of more than 4 percent or twenty-five thousand dollars ($25,000), whichever is less, of a local contracting agency's contracted payment for services schedule.

(3) Demand for remittance of an overpayment of more than 4 percent or twenty-five thousand dollars ($25,000), whichever is less, of a local contracting agency's annual contract.

(b) Before filing an appeal petition for an action taken pursuant to paragraph (2) or (3) of subdivision (a), the contracting agency shall have submitted all previously required standard monthly or quarterly reporting forms to the department.

SEC. 118. SEC. 109. Section 8406.7 of the Education Code is amended to read:

8406.7. (a) A contracting agency that evidences any of the following acts or omissions may have its contract or contracts immediately terminated if there is documented evidence of the acts or omissions, and upon review and recommendation of the general counsel of the department:

(1) Fraud, or conspiracy to defraud.

(2) Misuse or misappropriation of state or federal funds, including a violation of Section 8406.9.

(3) Embezzlement.

(4) Threats of bodily or other harm to a state official.

(5) Bribery or attempted bribery of a state official.

(6) Unsafe or unhealthy physical environment or facility.

(7) Substantiated abuse or molestation of children.

(8) Failure to report suspected child abuse or molestation.

(9) Theft of supplies, equipment, or food.

(10) Cessation of operations without the permission of the department, or acts or omissions evidencing abandonment of the contract or contracts.

(11) Failure of a program operating pursuant to Article 3 (commencing with Section 8220) or Article 15.5 (commencing with Section 8350) to fully reimburse a significant number of approved care providers, as determined by the department, within 15 calendar days after the date set in the plan for timely payments to care providers adopted by the contracting agency pursuant to Section 18226 of Title 5 of the California Code of Regulations, unless the failure is attributable to a delay in receiving apportionments from the state.

(12) Failure of a program operating pursuant to this chapter to pay salaries owed to employees, pay federal payroll tax, or fully reimburse a significant number of care providers, as determined by the department, affiliated with a contracting agency pursuant to Article 8.5 (commencing with Section 8245) for more than 15 days after the employee salaries, federal payroll taxes, or reimbursement payments were due, unless the failure is attributable to a delay in receiving apportionments from the state.

(b) An agency whose contract is immediately terminated pursuant to this section retains appeal rights in accordance with Section 8402.

(c) Notwithstanding any service provision in the Administrative Procedure Act (Chapter 5 (commencing with Section 11500) of Part 1 of Division 3 of Title 2 of the Government Code), a notice of immediate termination shall be served on the contracting agency by personal service or at the last address on file with the department, by overnight mail or certified mail. Service may be proved in the manner authorized in a civil action. Service by mail is complete at the time of deposit.

(d) The department shall advise contractors of the provisions of this section within 30 working days of the effective date of the act amending this section during the 2013-14 Regular Session of the Legislature.

SEC. 119. Section 8447 of the Education Code is amended to read:

8447. (a) The Legislature hereby finds and declares that greater efficiencies may be achieved in the execution of state subsidized early learning and educational support program contracts with public and private agencies by the timely approval of contract provisions by the Department of Finance, the Department of General Services, and the State Department of Education and by authorizing the State Department of Education to establish a multiyear application, contract expenditure, and service review as may be necessary to provide timely service while preserving audit and oversight functions to protect the public welfare.

(b) (1) The Department of Finance and the Department of General Services shall approve or disapprove annual contract funding terms and conditions, including both family fee schedules and regional market rate schedules that are required to be adhered to by contract, and contract face sheets submitted by the State Department of Education not more than 30 working days from the date of submission, unless unresolved conflicts remain between the Department of Finance, the State Department of Education, and the Department of General Services. The State Department of Education shall resolve conflicts within an additional 30 working day time period. Contracts and funding terms and conditions shall be issued to contractors no later than June 1. Applications for new early learning and educational support funding shall be issued not more than 45 working days after the effective date of authorized new allocations of these moneys.

(2) Notwithstanding paragraph (1), the State Department of Education shall implement the regional market rate schedules based upon the county aggregates, as determined by the regional market rate survey conducted in 2005.

(3) It is the intent of the Legislature to fully fund the third stage of care for former CalWORKs recipients.

(c) With respect to subdivision (b), it is the intent of the Legislature that the Department of Finance annually review contract funding terms and conditions for the primary purpose of ensuring consistency between early learning and educational support contracts and the early learning and educational support budget. This review shall include evaluating any proposed changes to contract language or other fiscal documents to which the contractor is required to adhere, including those changes to terms or conditions that authorize higher reimbursement rates, that modify related adjustment factors, that modify administrative or other service allowances, or that diminish fee revenues otherwise available for services, to determine if the change is necessary or has the potential effect of reducing the number of full-time equivalent children that may be served.

(d) Alternative payment programs, as set forth in Article 3 (commencing with Section 8220), shall be subject to the rates established in the Regional Market Rate Survey of California Child Care Providers for provider payments. The State Department of Education shall contract to conduct and complete a regional market rate survey no more frequently than once every two years, consistent with federal regulations, with a goal of completion by March 1.

(e) By March 1 of each year, the Department of Finance shall provide to the State Department of Education the state median income amount for a four-person household in California based on the best available data. The State Department of Education shall adjust its fee schedule for care providers to reflect this updated state median income; however, no changes based on revisions to the state median income amount shall be implemented midyear.

(f) Notwithstanding the June 1 date specified in subdivision (b), changes to the regional market rate schedules and fee schedules may be made at any other time to reflect the availability of accurate data necessary for their completion, provided these documents receive the approval of the Department of Finance. The Department of Finance shall review the changes within 30 working days of submission and the State Department of Education shall resolve conflicts within an additional 30 working day period. Contractors shall be given adequate notice before the effective date of the approved schedules. It is the intent of the Legislature that contracts for services not be delayed by the timing of the availability of accurate data needed to update these schedules.

SEC. 110. Section 8447 of the Education Code is amended to read:

8447. (a) The Legislature hereby finds and declares that greater efficiencies may be achieved in the execution of state subsidized child care and development early learning and educational support program contracts with public and private agencies by the timely approval of contract provisions by the Department of Finance, the Department of General Services, and the State Department of Education and by authorizing the State Department of Education to establish a multiyear application, contract expenditure, and service review as may be necessary to provide timely service while preserving audit and oversight functions to protect the public welfare.

(b) (1) The Department of Finance and the Department of General Services shall approve or disapprove annual contract funding terms and conditions, including both family fee schedules and regional market rate schedules that are required to be adhered to by contract, and contract face sheets submitted by the State Department of Education not more than 30 working days from the date of submission, unless unresolved conflicts remain between the Department of Finance, the State Department of Education, and the Department of General Services. The State Department of Education shall resolve conflicts within an additional 30 working day time period. Contracts and funding terms and conditions shall be issued to child care contractors no later than June 1. Applications for new child care early learning and educational support funding shall be issued not more than 45 working days after the effective date of authorized new allocations of child care these moneys.

(2) Notwithstanding paragraph (1), until January 1, 2015, the State Department of Education shall implement the regional market rate schedules based upon the county aggregates, as determined by the Regional Market survey conducted in 2005. Commencing January 1, 2015, the State Department of Education shall implement the regional market rate schedules based upon the 85th percentile of county aggregates, as determined by the Regional Market survey conducted in 2009. Commencing January 1, 2015, the regional market rate schedule developed pursuant to this paragraph shall be reduced by 13 percent. If a ceiling for a county is less than the ceiling provided for that county before January 1, 2015, the State Department of Education shall use the ceiling from the Regional Market survey conducted in 2005.

(3) It is the intent of the Legislature to fully fund the third stage of child care for former CalWORKs recipients.

(c) With respect to subdivision (b), it is the intent of the Legislature that the Department of Finance annually review contract funding terms and conditions for the primary purpose of ensuring consistency between child care early learning and educational support contracts and the child care early learning and educational support budget. This review shall include evaluating any proposed changes to contract language or other fiscal documents to which the contractor is required to adhere, including those changes to terms or conditions that authorize higher reimbursement rates, that modify related adjustment factors, that modify administrative or other service allowances, or that diminish fee revenues otherwise available for services, to determine if the change is necessary or has the potential effect of reducing the number of full-time equivalent children that may be served.

(d) Alternative payment child care systems programs, as set forth in Article 3 (commencing with Section 8220), shall be subject to the rates established in the Regional Market Rate Survey of California Child Care Providers for provider payments. The State Department of Education shall contract to conduct and complete a Regional Market Rate Survey regional market rate survey no more frequently than once every two years, consistent with federal regulations, with a goal of completion by March 1.

(e) By March 1 of each year, the Department of Finance shall provide to the State Department of Education the state median income amount for a four-person household in California based on the best available data. The State Department of Education shall adjust its fee schedule for child care providers to reflect this updated state median income; however, no changes based on revisions to the state median income amount shall be implemented midyear.

(f) Notwithstanding the June 1 date specified in subdivision (b), changes to the regional market rate schedules and fee schedules may be made at any other time to reflect the availability of accurate data necessary for their completion, provided these documents receive the approval of the Department of Finance. The Department of Finance shall review the changes within 30 working days of submission and the State Department of Education shall resolve conflicts within an additional 30 working day period. Contractors shall be given adequate notice before the effective date of the approved schedules. It is the intent of the Legislature that contracts for services not be delayed by the timing of the availability of accurate data needed to update these schedules.

SEC. 120. SEC. 111. Section 8448 of the Education Code is amended to read:

8448. As used in this article:

(a) "Financial and compliance audit" means a systematic review or appraisal to determine each of the following:

(1) Whether the financial statements of an audited organization fairly present the financial position and the results of financial operations in accordance with generally accepted accounting principles.

(2) Whether the organization has complied with laws and regulations that may have a material effect upon the financial statements.

(b) "Public accountants" means certified public accountants, or state licensed public accountants.

(c) "Independent auditors" means public accountants who have no direct or indirect relationship with the functions or activities being audited or with the business conducted by any of the officials or contractors being audited.

(d) "Generally accepted auditing standards" means the auditing standards set forth in the financial and compliance element of the "Government Auditing Standards" issued by the Comptroller General of the United States and incorporating the audit standards of the American Institute of Certified Public Accountants.

(e) "Direct service contract" means any contract with any public or private entity for early learning and educational support programs, resource and referral programs, and programs contracting to provide support services, as defined in Section 8208.

(f) "Nonprofit organization" means an organization described in Section 501(c)(3) of the Internal Revenue Code of 1954 which is exempt from taxation under Section 501(a) of that code, or any nonprofit, scientific, or educational organization qualified under Section 23701d of the Revenue and Taxation Code.

(g) (1) Annually, there shall be a single independent financial and compliance audit of organizations that contract with the state under a direct service contract. Any such audit shall include an evaluation of the accounting and control systems of the direct service contractor and of the activities by the contractor to comply with the financial requirements of direct service contracts received by the contractor from the state agency. The financial and compliance requirements to be reviewed during the audit shall be those developed and published by the department in consultation with the Department of Finance. Audits carried out pursuant to this section shall be audits of the contractor rather than audits of individual contracts or programs. In the case of any contractor that receives less than twenty-five thousand dollars ($25,000) per year from any state agency, the audit required by this section shall be conducted biennially, unless there is evidence of fraud or other violation of state law in connection with the direct service contract. The cost of the audit may be included in direct service contracts.

(2) The organization receiving funds from the state shall be responsible for obtaining the required financial and compliance audits of the organization and any subcontractors, except for direct service subcontracts and other subcontracts exempt from department review, as agreed to by the Departments of Finance and General Services. The audits shall be made by independent auditors in accordance with generally accepted auditing standards. The audit shall be completed by the 15th day of the fifth month following the end of the contractor's fiscal year. A copy of the required audit shall be filed with the department upon its completion. In the event an audit is not filed, the department shall notify the organization of the contract violation. The audit report filed shall be an integral part of the direct service contract file.

(h) (1) Nothing in this article limits the authority of the department to make audits of direct service contracts. However, if independent audits arranged for by direct service contractors meet generally accepted auditing standards, the department shall rely on those audits and any additional audit work shall build upon the work already done.

(2) Nothing in this article precludes the state from conducting, or contracting for the conduct of, contract performance audits which are not financial and compliance audits.

(3) Nothing in this article limits the state's responsibility or authority to enforce state law or regulations, procedures, or reporting requirements arising pursuant thereto.

(4) Nothing in this article limits the responsibility of the department to provide an independent appeal procedure according to the provisions of the Administrative Procedure Act (Chapter 5 (commencing with Section 11500) of Part 1 of Division 3 of Title 2) of the Government Code.

SEC. 121. Section 8450 of the Education Code is amended to read:

8450. (a) All early learning and educational support contractors are encouraged to develop and maintain a reserve within the child development fund, derived from earned but unexpended funds. Contractors may retain all earned funds. For the purpose of this section, "earned funds" are those for which the required number of eligible service units have been provided.

(b) (1) Earned funds shall not be expended for any activities proscribed by Section 8406.7. Earned but unexpended funds shall remain in the contractor's reserve account within the child development fund and shall be expended only by early learning services contractors that are funded under contract with the department.

(2) Commencing July 1, 2011, a contractor may retain a reserve fund balance, separate from the reserve fund retained pursuant to subdivision (c) or (d), equal to 5 percent of the sum of the maximum reimbursable amounts of all contracts to which the contractor is a party, or two thousand dollars ($2,000), whichever is greater. This paragraph applies to early learning services contractors that are funded under contract with the department.

(c) Notwithstanding subdivisions (a) and (b), a contractor may retain a reserve fund balance for a resource and referral program, separate from the balance retained pursuant to subdivision (b) or (d), not to exceed 3 percent of the contract amount. Funds from this reserve account may be expended only by resource and referral programs that are funded under contract with the department.

(d) Notwithstanding subdivisions (a) and (b), a contractor may retain a reserve fund balance for alternative payment model and certificate contracts, separate from the reserve fund retained pursuant to subdivisions (b) and (c). Funds from this reserve account may be expended only by alternative payment model and certificate programs that are funded under contract with the department. The reserve amount allowed by this section may not exceed either of the following, whichever is greater:

(1) Two percent of the sum of the parts of each contract to which that contractor is a party that is allowed for administration pursuant to Section 8276.7 and that is allowed for supportive services pursuant to the provisions of the contract.

(2) One thousand dollars ($1,000).

(e) Each contractor's audit shall identify any funds earned by the contractor for each contract through the provision of contracted services in excess of funds expended.

(f) Any interest earned on reserve funds shall be included in the fund balance of the reserve. This reserve fund shall be maintained in an interest-bearing account.

(g) Moneys in a contractor's reserve fund may be used only for expenses that are reasonable and necessary costs as defined in subdivision (m) of Section 8208.

(h) Any reserve fund balance in excess of the amount authorized pursuant to subdivisions (b), (c), and (d) shall be returned to the department pursuant to procedures established by the department.

(i) Upon termination of all early learning and educational support contracts between a contractor and the department, all moneys in a contractor's reserve fund shall be returned to the department pursuant to procedures established by the department.

(j) Expenditures from, additions to, and balances in, the reserve fund shall be included in the agency's annual financial statements and audit.

SEC. 112. Section 8450 of the Education Code is amended to read:

8450. (a) All child development early learning and educational support contractors are encouraged to develop and maintain a reserve within the child development fund, derived from earned but unexpended funds. Child development contractors Contractors may retain all earned funds. For purposes of this section, "earned funds" are those for which the required number of eligible service units have been provided.

(b) (1) Earned funds shall not be expended for any activities proscribed by Section 8406.7. Earned but unexpended funds shall remain in the contractor's reserve account within the child development fund and shall be expended only by direct service child development programs early learning services contractors that are funded under contract with the department.

(2) (A) Commencing July 1, 2011, a contractor may retain a reserve fund balance, separate from the reserve fund retained pursuant to subdivision (c) or (d), equal to 5 percent of the sum of the maximum reimbursable amounts of all contracts to which the contractor is a party, or two thousand dollars ($2,000), whichever is greater. This paragraph applies to direct service child development programs early learning services contractors that are funded under contract with the department.

(B) A California state preschool program contracting agency may retain in the reserve fund an additional 10 percent of the sum of the maximum reimbursable amounts of all preschool contracts to which the contracting agency is a party for purposes of professional development for California state preschool program instructional staff.

(c) Notwithstanding subdivisions (a) and (b), a contractor may retain a reserve fund balance for a resource and referral program, separate from the balance retained pursuant to subdivision (b) or (d), not to exceed 3 percent of the contract amount. Funds from this reserve account may be expended only by resource and referral programs that are funded under contract with the department.

(d) Notwithstanding subdivisions (a) and (b), a contractor may retain a reserve fund balance for alternative payment model and certificate child care contracts, separate from the reserve fund retained pursuant to subdivisions (b) and (c). Funds from this reserve account may be expended only by alternative payment model and certificate child care programs that are funded under contract with the department. The reserve amount allowed by this section may not exceed either of the following, whichever is greater:

(1) Two percent of the sum of the parts of each contract to which that contractor is a party that is allowed for administration pursuant to Section 8276.7 and that is allowed for supportive services pursuant to the provisions of the contract.

(2) One thousand dollars ($1,000).

(e) Each contractor's audit shall identify any funds earned by the contractor for each contract through the provision of contracted services in excess of funds expended.

(f) Any interest earned on reserve funds shall be included in the fund balance of the reserve. This reserve fund shall be maintained in an interest-bearing account.

(g) Moneys in a contractor's reserve fund may be used only for expenses that are reasonable and necessary costs as defined in subdivision (n) (m) of Section 8208.

(h) Any reserve fund balance in excess of the amount authorized pursuant to subdivisions (b), (c), and (d) shall be returned to the department pursuant to procedures established by the department.

(i) Upon termination of all child development early learning and educational support contracts between a contractor and the department, all moneys in a contractor's reserve fund shall be returned to the department pursuant to procedures established by the department.

(j) Expenditures from, additions to, and balances in, the reserve fund shall be included in the agency's annual financial statements and audit.

SEC. 122. SEC. 113. Section 8493 of the Education Code is amended to read:

8493. It is the intent of the Legislature that funds be appropriated for capital outlay for purposes of providing facilities for services provided pursuant to this chapter, including, but not limited to, all of the following purposes:

(a) For the purchase of relocatable facilities by the state for lease to qualifying contracting agencies in areas with no available economically practical or feasible early learning and educational support facilities.

(b) For renovation and repair of early learning and educational support facilities in order to comply with state and local health and safety standards and licensing requirements, without unnecessarily increasing the value of the facility.

SEC. 123. SEC. 114. Section 8494 of the Education Code is amended to read:

8494. (a) All of the following programs, other than those providing extended care services, shall be eligible to receive a loan for the renovation and repair of facilities used for the program or to lease relocatable facilities to be used for the program:

(1) Private nonprofit programs currently, or soon to be, under contract with the department pursuant to Section 8262.

(2) Early learning and educational support programs conducted pursuant to Article 4 (commencing with Section 8225).

(3) Early learning and educational support programs operated by, or in a facility owned by, a public entity.

(4) Early learning and educational support programs conducted pursuant to Article 7.1 (commencing with Section 54740) of Chapter 9 of Part 29.

(b) A recipient of a loan pursuant to this section shall document that the renovated facility shall comply with all laws and regulations applicable to child care facilities provided for pursuant to Chapter 3.4 (commencing with Section 1596.70) and Chapter 3.5 (commencing with Section 1596.90) of Division 2 of the Health and Safety Code.

(c) A recipient of a loan pursuant to this section shall ensure the board that the renovated facility shall be used for purposes of the program for the entire loan period, which shall be determined by the board as follows:

(1) For loans equal to or less than thirty thousand dollars ($30,000), not less than three years.

(2) For loans exceeding thirty thousand dollars ($30,000), the loan period shall increase one year for each additional ten thousand dollars ($10,000) or part thereof, to a maximum of fifty thousand dollars ($50,000).

(d) Interest on the loan principal shall be charged at a rate equal to the average of the interest rate applied to the last three bond sales pursuant to Chapter 21.6 (commencing with Section 17695) of Part 10.

(e) In the event that a recipient ceases to use the renovated facility for purposes of the program before the expiration of the loan period, the board shall collect the entire outstanding balance of the loan, plus interest, notwithstanding the loan period originally set pursuant to subdivision (c), unless the board deems it appropriate to waive repayment at that time.

(f) If the renovated facility has been continuously used for purposes of the program for the entire loan period, the board shall waive repayment of the amount of the loan principal, plus interest, at the end of the loan period.

SEC. 124. SEC. 115. Section 8495 of the Education Code is amended to read:

8495. (a) There is hereby created in the State Treasury the State Child Care Capital Outlay Fund. Notwithstanding Section 13340 of the Government Code, all moneys in the State Child Care Capital Outlay Fund, including moneys deposited in that fund from any source whatsoever, shall be continuously appropriated without regard to fiscal year for expenditure pursuant to this article. The fund shall be administered by the State Allocation Board, which may authorize the expenditure of any moneys in the fund for capital outlay projects pursuant to Section 8277.7 or this article. Funds in the State Child Care Facilities Fund set aside for the purposes of providing extended day care facilities pursuant to Section 8477 shall be transferred to the State Child Care Capital Outlay Fund upon the effective date of the act amending this section in the 1997-98 Regular Session.

(b) The Superintendent shall establish the qualifications to determine the eligibility of agencies, including those that provide preschool and extended care services, to lease relocatable facilities under this section.

(c) Although primary use of relocatable facilities shall be for early learning and educational support programs, including preschool and extended care programs, those facilities may be used for other purposes if the following conditions are met:

(1) The alternative use of the facility does not infringe upon the accessibility of early learning and educational support programs including preschool or extended care programs.

(2) The Superintendent authorizes alternative use as being compatible with early learning and educational support programs, including preschool or extended care programs.

(d) The State Allocation Board, with the advice of the Superintendent, may do all of the following:

(1) Establish any procedures and policies in connection with the administration of this section that it deems necessary.

(2) Adopt any rules and regulations for the administration of this section requiring those procedures, forms, and information that it deems necessary.

(3) Have constructed, furnished, equipped, or otherwise require whatever work is necessary to place relocatable facilities for early learning and educational support services, including preschool and extended day care services where needed.

(e) The board shall lease relocatable facilities to qualifying agencies providing early learning and educational support services, including preschool or extended day care services, and shall charge rent of one dollar ($1) per year. The board shall require lessees to undertake all necessary maintenance, repairs, renewal, and replacement to ensure that a project is at all times kept in good repair, working order, and condition. All costs incurred for this purpose shall be borne by the lessee. Neither the board nor the state shall assume any responsibility for utility services costs other than initial installation costs reimbursed under this article, and the agency shall provide adequate safeguards to protect the state's interest in this regard.

(f) The board shall require lessees to insure at their own expense for the benefit of the state, any leased relocatable facility that is the property of the state, against any risks, including liability from the use thereof, in the amounts the board deems necessary to protect the interests of the state. Neither the board nor the state shall assume any responsibility for utility services costs other than initial installation costs reimbursed under this article, and the agency shall provide adequate safeguards to protect the state's interest in this regard.

(g) Relocatable facilities shall not be made available to an agency unless the agency furnishes evidence, satisfactory to the board, that the agency has no other facility available for rental, lease, or purchase in the geographic service area that is economically or otherwise feasible.

(h) The board shall have prepared for its use, performance specifications for relocatable facilities and bids for their construction that can be solicited from more than one responsible bidder. The board shall from time to time solicit bids from, and award to, the lowest responsible competitive bidder, contracts for the construction or purchase of relocatable facilities that have been approved for lease to eligible agencies that provide early learning and educational support services, including preschool or extended care services.

(i) If at any time the board determines that a lessee's need for particular relocatable facilities that were made available to the lessee pursuant to this article has ceased, the board may take possession of the relocatable facilities and may lease them to other eligible contracting agencies, or, if there is no longer a need for the relocatable facilities, the board may dispose of them to public or private parties in the manner it deems to be in the best interests of the state.

(j) If a lessee uses a particular relocatable facility for only a portion of the year, the board may enter into a second lease with a public or private party for the use of that facility for the portion of the year during which the facility would otherwise be unused, in the manner it deems to be in the best interests of the state. The lessee shall be subject to subdivisions (d) and (f).

SEC. 125. SEC. 116. Section 8495.1 of the Education Code is amended to read:

8495.1. (a) The State Allocation Board shall establish regulations for the allocation of funds for capital outlay and for the reimbursement of initial utility installation costs for purposes of this chapter. The Superintendent shall establish qualifications for determining the eligibility of agencies providing early learning and educational support services, including preschool and extended care service, to apply for these funds.

(b) Notwithstanding any other law, except for Section 8477, priority in funding of capital outlay grants or relocatables from funds administered pursuant to Section 8277.7 and under this article, shall be determined in the following order:

(1) Programs experiencing emergencies as defined by the Superintendent and the State Allocation Board.

(2) Facilities lost due to the Class Size Reduction Program (Chapter 6.10 (commencing with Section 52120) of Part 28).

(3) Expansion of early learning and educational support services.

SEC. 126. SEC. 117. Section 8498 of the Education Code is amended to read:

8498. (a) The State Allocation Board may use up to 5 percent of any appropriation for purposes of this article to provide loans to private nonsectarian early learning and educational support programs not under contract with the department for renovation and repair of existing program facilities, in accordance with this section.

(b) The Superintendent shall establish qualifications to determine the eligibility of agencies for loans pursuant to this section.

(c) The board, with any necessary assistance from the Superintendent, may do any of the following:

(1) Establish procedures and policies in connection with the administration of this section it deems necessary.

(2) Adopt rules and regulations for the administration of this section requiring procedure, forms, and information it deems necessary.

(d) A recipient of a loan pursuant to this section shall do all of the following:

(1) Document that the renovated facility shall comply with all laws and regulations applicable to child care facilities provided for pursuant to Chapter 3.4 (commencing with Section 1596.70) and Chapter 3.5 (commencing with Section 1596.90) of Division 2 of the Health and Safety Code.

(2) Demonstrate to the satisfaction of the board that it will have sufficient revenues to pay the principal and interest on the loan and to maintain the operation of the facility.

(e) A recipient of a loan pursuant to this section shall ensure the board that the renovated facility shall be used for purposes of the program for the following periods:

(1) For loans equal to or less than thirty thousand dollars ($30,000), not less than three years from the beginning of the loan period.

(2) For loans exceeding thirty thousand dollars ($30,000), the fixed period of time shall increase one year for each additional ten thousand dollars ($10,000) or part thereof, to a maximum of fifty thousand dollars ($50,000).

(f) The board shall set the period of the loan for each recipient, up to a maximum of 10 years, based upon the amount of the loan, the recipient's ability to repay the loan, and the length of time the recipient has committed to use the renovated facility for purposes of the program.

(g) Interest on the loan principal shall be charged at a rate equal to the average of the interest rate applied to the last three bond sales pursuant to Chapter 21.6 (commencing with Section 17695) of Part 10.

(h) In the event that a recipient ceases to use the renovated facility for purposes of the program before the expiration of the period specified pursuant to subdivision (e), the board shall collect the entire outstanding balance of the loan, plus interest, notwithstanding the loan period originally set pursuant to subdivision (f).

SEC. 127. SEC. 118. Section 8499 of the Education Code is amended to read:

8499. For purposes of this chapter, the following definitions shall apply:

(a) "Block grant" means the block grant contained in Title VI of the Child Care and Development Fund, as established by the federal Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (Public Law 104-193).

(b) "Child care" or "care" means services provided by all licensed or license-exempt providers, including, but not limited to, private for-profit programs, nonprofit programs, and publicly funded programs, for all children from birth to 13 years of age, including children with exceptional needs and children from all linguistic and cultural backgrounds.

(c) "Child care provider" means a person who provides child care services or represents persons who provide child care services.

(d) "Community representative" means a person who represents an agency or business that provides private funding for care services, or who advocates for care services through participation in civic or community-based organizations but is not a care provider and does not represent an agency that contracts with the State Department of Education to provide early learning and educational support services.

(e) "Consumer" means a parent or person who receives, or who has received within the past 36 months, child care services.

(f) "Department" means the State Department of Education.

(g) "Local planning council" means a local early learning and educational support planning council as described in Section 8499.3.

(h) "Public agency representative" means a person who represents a city, county, city and county, or local educational agency.

SEC. 128. SEC. 119. The heading of Article 2 (commencing with Section 8499.3) of Chapter 2.3 of Part 6 of Division 1 of Title 1 of the Education Code is amended to read:

Article 2.

Membership and Funding of Local Planning Councils

SEC. 129. SEC. 120. Section 8499.3 of the Education Code is amended to read:

8499.3. (a) It is the intent of the Legislature that local planning councils shall provide a forum for the identification of local priorities for early learning and educational support and the development of policies to meet the needs identified within those priorities.

(b) The county board of supervisors and the county superintendent of schools shall do both of the following:

(1) Select the members of the local planning council. Before making selections pursuant to this subdivision, the county board of supervisors and the county superintendent of schools shall publicize their intention to select the members and shall invite local organizations to submit nominations. In counties in which the county superintendent is appointed by the county board of education, the county board of education may make the appointment or may delegate that responsibility to the superintendent.

(2) Establish the term of appointment for the members of the local planning council.

(c) (1) The local planning council shall be comprised as follows:

(A) Twenty percent of the membership shall be consumers.

(B) Twenty percent of the membership shall be providers, reflective of the range of providers in the county.

(C) Twenty percent of the membership shall be public agency representatives.

(D) Twenty percent of the membership shall be community representatives, who shall not be providers or agencies that contract with the department to provide services.

(E) The remaining 20 percent shall be appointed at the discretion of the appointing agencies.

(2) The county board of supervisors and the county superintendent of schools shall each appoint one-half of the members. In the case of uneven membership, both appointing entities shall agree on the odd-numbered appointee.

(d) Every effort shall be made to ensure that the ethnic, racial, and geographic composition of the local planning council is reflective of the ethnic, racial, and geographic distribution of the population of the county.

(e) The county board of supervisors and county superintendent of schools may designate an existing planning council or coordinated child and family services council as the local planning council, as long as it has or can achieve the representation set forth in this section.

(f) Upon establishment of a local planning council, the local planning council shall elect a chair and select a staff.

(g) Each local planning council shall develop and implement a training plan to provide increased efficiency, productivity, and facilitation of local planning council meetings. This may include developing a training manual, hiring facilitators, and identifying strategies to meet the objectives of the council.

(h) A member of a local planning council shall not participate in a vote if he or she has a proprietary interest in the outcome of the matter being voted upon.

SEC. 130. Section 8499.5 of the Education Code is amended to read:

8499.5. (a) The department shall allocate funding pursuant to Chapter 2 (commencing with Section 8200) based on the amount of state and federal funding that is available.

(b) By May 30 of each year, upon approval by the county board of supervisors and the county superintendent of schools, a local planning council shall submit to the department the local priorities it has identified that reflect all child care needs in the county. To accomplish this, a local planning council shall do all of the following:

(1) Conduct an assessment of care needs in the county no less than once every five years. The department shall define and prescribe data elements to be included in the needs assessment and shall specify the format for the data reporting. The needs assessment shall also include all factors deemed appropriate by the local planning council in order to obtain an accurate picture of the comprehensive care needs in the county. The factors include, but are not limited to, all of the following:

(A) The needs of families eligible for subsidized care.

(B) The needs of families not eligible for subsidized care.

(C) The waiting lists for programs funded by the department and the State Department of Social Services.

(D) The need for care for children determined by the child protective services agency to be neglected, abused, or exploited, or at risk of being neglected, abused, or exploited.

(E) The number of children in families receiving public assistance, including CalFresh benefits, housing support, and Medi-Cal, and assistance from the Healthy Families Program and the Temporary Assistance for Needy Families (TANF) program.

(F) Family income among families with preschool or schoolage children.

(G) The number of children in migrant agricultural families who move from place to place for work or who are currently dependent for their income on agricultural employment in accordance with subdivision (a) of Section 8231.

(H) The number of children who have been determined by a regional center to require services pursuant to an individualized family service plan, or by a local educational agency to require services pursuant to an individualized education program or an individualized family service plan.

(I) The number of children in the county by primary language spoken pursuant to the department's language survey.

(J) Special needs based on geographic considerations, including rural areas.

(K) The number of children needing services by age cohort.

(2) Document information gathered during the needs assessment that shall include, but need not be limited to, data on supply, demand, cost, and market rates for each category of child care in the county.

(3) Develop a draft of local priorities for early learning and educational support program funding that includes the needs assessment in paragraph (1) and that considers the resources currently available in attendance areas of elementary schools ranked in deciles 1 to 3, inclusive, of the Academic Performance Index pursuant to Section 52056.

(4) Encourage public input in the development of the priorities. Opportunities for public input shall include at least one public hearing during which members of the public can comment on the proposed priorities.

(5) Prepare a comprehensive countywide care plan designed to mobilize public and private resources to address identified needs.

(6) Conduct a periodic review of early learning and educational support programs funded by the department and the State Department of Social Services to determine if identified priorities are being met.

(7) Collaborate with subsidized and nonsubsidized providers, county welfare departments, human service agencies, regional centers, job training programs, employers, integrated child and family service councils, local and state children and families commissions, parent organizations, early start family resource centers, family empowerment centers on disability, local resource and referral programs, and other interested parties to foster partnerships designed to meet local child care needs.

(8) Design a system to consolidate local care waiting lists, if a centralized eligibility list is not already in existence.

(9) Coordinate part-day programs, including California state preschool and Head Start, with other early learning and educational support services to provide full-day care.

(10) Submit the results of the needs assessment and the local priorities identified by the local planning council to the county board of supervisors and the county superintendent of schools for approval before submitting them to the department.

(11) Identify at least one, but not more than two, members to serve as part of the department team that reviews and scores proposals for the provision of services funded through contracts with the department. Local planning council representatives may not review and score proposals from the geographic area covered by their own local planning council. The department shall notify each local planning council whenever this opportunity is available.

(c) The department shall, in conjunction with the State Department of Social Services and all appropriate statewide agencies and associations, develop guidelines for use by local planning councils to assist them in conducting needs assessments that are reliable and accurate. The guidelines shall include acceptable sources of demographic and care data, and methodologies for assessing care supply and demand.

(d) The department shall allocate funding within each county in accordance with the priorities identified by the local planning council of that county and submitted to the department pursuant to this section, unless the priorities do not meet the requirements of state or federal law.

(e) When additional funds for early learning services are appropriated by the Legislature, the department shall allocate funding within each county in accordance with the priorities that include the review of resources in the attendance areas of elementary schools ranked in deciles 1 to 3, inclusive, of the Academic Performance Index pursuant to Section 52056, as identified by the local planning council of that county and submitted to the department pursuant to paragraph (3) of subdivision (b), unless the priorities do not meet the requirements of state or federal law.

SEC. 121. Section 8499.5 of the Education Code is amended to read:

8499.5. (a) The department shall allocate child care funding pursuant to Chapter 2 (commencing with Section 8200) based on the amount of state and federal funding that is available.

(b) By May 30 of each year, upon approval by the county board of supervisors and the county superintendent of schools, a local planning council shall submit to the department the local priorities it has identified that reflect all child care needs in the county. To accomplish this, a local planning council shall do all of the following:

(1) Conduct an assessment of child care needs in the county no less frequently than once every five years. The department shall define and prescribe data elements to be included in the needs assessment and shall specify the format for the data reporting. The needs assessment shall also include all factors deemed appropriate by the local planning council in order to obtain an accurate picture of the comprehensive child care needs in the county. The factors include, but are not limited to, all of the following:

(A) The needs of families eligible for subsidized child care.

(B) The needs of families not eligible for subsidized child care.

(C) The waiting lists for programs funded by the department and the State Department of Social Services.

(D) The need for child care for children determined by the child protective services agency to be neglected, abused, or exploited, or at risk of being neglected, abused, or exploited.

(E) The number of children in families receiving public assistance, including CalFresh benefits, housing support, and Medi-Cal, and assistance from the Healthy Families Program and the Temporary Assistance for Needy Families (TANF) program.

(F) Family income among families with preschool or schoolage children.

(G) The number of children in migrant agricultural families who move from place to place for work or who are currently dependent for their income on agricultural employment in accordance with subdivision (a) of, and paragraphs (1) and (2) of subdivision (b) of, of Section 8231.

(H) The number of children who have been determined by a regional center to require services pursuant to an individualized family service plan, or by a local educational agency to require services pursuant to an individualized education program or an individualized family service plan.

(I) The number of children in the county by primary language spoken pursuant to the department's language survey.

(J) Special needs based on geographic considerations, including rural areas.

(K) The number of children needing child care services by age cohort.

(2) Document information gathered during the needs assessment assessment, which shall include, but need not be limited to, data on supply, demand, cost, and market rates for each category of child care in the county.

(3) Develop a draft of local priorities for early learning and educational support program funding that includes the needs assessment in paragraph (1) and that considers the resources currently available in attendance areas of elementary schools ranked in deciles 1 to 3, inclusive, of the Academic Performance Index pursuant to Chapter 6.1 (commencing with Section 52050) of Part 28 of Division 4 of Title 2.

(3)

(4) Encourage public input in the development of the priorities. Opportunities for public input shall include at least one public hearing during which members of the public can comment on the proposed priorities.

(4)

(5) Prepare a comprehensive countywide child care plan designed to mobilize public and private resources to address identified needs.

(5)

(6) Conduct a periodic review of child care early learning and educational support programs funded by the department and the State Department of Social Services to determine if identified priorities are being met.

(6)

(7) Collaborate with subsidized and nonsubsidized child care providers, county welfare departments, human service agencies, regional centers, job training programs, employers, integrated child and family service councils, local and state children and families commissions, parent organizations, early start family resource centers, family empowerment centers on disability, local child care resource and referral programs, and other interested parties to foster partnerships designed to meet local child care needs.

(7)

(8) Design a system to consolidate local child care waiting lists, if a centralized eligibility list is not already in existence.

(8)

(9) Coordinate part-day programs, including California state preschool and Head Start, with other child care and development early learning and educational support services to provide full-day child care.

(9)

(10) Submit the results of the needs assessment and the local priorities identified by the local planning council to the county board of supervisors and the county superintendent of schools for approval before submitting them to the department.

(10)

(11) Identify at least one, but not more than two, members to serve as part of the department team that reviews and scores proposals for the provision of services funded through contracts with the department. Local planning council representatives may not review and score proposals from the geographic area covered by their own local planning council. The department shall notify each local planning council whenever this opportunity is available.

(c) The department shall, in conjunction with the State Department of Social Services and all appropriate statewide agencies and associations, develop guidelines for use by local planning councils to assist them in conducting needs assessments that are reliable and accurate. The guidelines shall include acceptable sources of demographic and child care data, and methodologies for assessing child care supply and demand.

(d) The department shall allocate funding within each county in accordance with the priorities identified by the local planning council of that county and submitted to the department pursuant to this section, unless the priorities do not meet the requirements of state or federal law.

(d)

(e) Except as otherwise required by subdivision (c) of Section 8236, the department shall allocate funding within each county in accordance with the priorities identified by the local planning council of that county and submitted to the department pursuant to this section, unless the priorities do not meet the requirements of state or federal law.


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