BILL NUMBER: SB 192	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  AUGUST 4, 2014
	AMENDED IN ASSEMBLY  JUNE 18, 2014
	AMENDED IN ASSEMBLY  AUGUST 5, 2013
	AMENDED IN ASSEMBLY  JUNE 14, 2013
	AMENDED IN SENATE  MAY 28, 2013
	AMENDED IN SENATE  APRIL 16, 2013
	AMENDED IN SENATE  APRIL 3, 2013
	AMENDED IN SENATE  MARCH 12, 2013

INTRODUCED BY   Senator Liu

                        FEBRUARY 7, 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: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: 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 providing
 part-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   s   ervices" 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:

      Article 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:

      Article 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:

      Article 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.