Assembly Bill No. 116 Childcare and Education (Approved on July 10, 2023)

This assembly bill was introduced by Assembly Member Ting on January 9, 2023. The current Child Care and Development Services Act, managed by the State Department of Social Services, establishes a framework for childcare and development services for children up to the age of 13. The existing law necessitates the department to contract with local agencies for alternative payment programs, which are designed to provide childcare services statewide. These alternative payment programs are required to reimburse licensed childcare providers for the care of subsidized children based on specified rates. Licensed providers must submit rate sheets to these programs, outlining their rates and policies. The proposed bill introduces several changes. It specifies that license-exempt childcare providers are not required to submit rate sheets. Additionally, when determining reimbursement rates for providers that could fit into either a full-time weekly or full-time monthly category, the alternative payment program or contractor must choose the applicable rate category that aligns most closely with the provider's rate sheet or, in the absence of a rate sheet or clear determination, opt for the higher reimbursement rate. Furthermore, the bill temporarily suspends the annual cost-of-living adjustment for reimbursement rates in the 2023–24 and 2024–25 fiscal years, subject to ratified agreements and future legislation. It also introduces changes related to income eligibility calculations, allowing families to provide income information from the preceding 12 months for purposes of determining eligibility or calculating family fees. The bill mandates the development of an alternative methodology for setting reimbursement rates for state-subsidized childcare and development services and requires the survey of market rates for childcare services if the alternative methodology is not approved by the federal Department of Health and Human Services. It includes provisions to ensure family fees do not exceed a certain percentage of the family's monthly income and appropriates funds for fee waivers and reductions. Additionally, the bill delays the implementation of requirements for reserving enrollment slots for children with exceptional needs in state preschool programs. It also adjusts the priority for enrollment in part-day and full-day programs for 3- and 4-year-old children. The legislation extends deadlines for certain provisions and suspends cost-of-living adjustments for childcare and development programs in specified fiscal years. Lastly, it addresses various administrative and record-keeping matters and includes appropriations related to the Budget Bill.