Assembly Bill No. 140 Early Childcare and Education (Amended in Senate on August 28, 2023)
This assembly bill was introduced by Assembly Members Ting, Alvarez, Bennett, Bonta, Wendy Carrillo, Cervantes, Connolly, Mike Fong, Friedman, Garcia, Hart, Jackson, Jones-Sawyer, Lee, McCarty, Muratsuchi, Ramos, Reyes, Luz Rivas, Blanca Rubio, Weber, Wicks, and Wood on January 9, 2023. The current Child Care and Development Services Act, overseen by the State Department of Social Services, establishes a framework for childcare and development services for children up to 13 years old. Simultaneously, the Early Education Act mandates that the Superintendent of Public Instruction administer various state preschool programs in California for 3- and 4-year-old children. To further the federal Child Care and Development Fund's objectives, the State Department of Social Services collaborates with the State Department of Education and others to develop a state plan. It also enforces a reimbursement system plan in conjunction with the State Department of Education, focusing on setting fair standards and reimbursement rates. This proposed bill introduces several key provisions. It compels the State Department of Social Services to provide a progress report on the draft CCDF state plan by May 15, 2024, including details on the proposed single rate structure. Additionally, by July 1, 2024, the department must submit information supporting the use of a single rate structure, utilizing an alternative methodology, to the United States Department of Health and Human Services. Once federal approval is obtained for the single rate structure, the department must outline the implementation components within 60 days. This single rate structure will apply to specified subsidized childcare and development programs under the department and state preschool programs under the State Department of Education. Moreover, this bill mandates that, by March 1, 2024, contractor-operated California state preschool programs and childcare providers reimbursed for state-funded subsidized services develop, implement, and disclose a plan for prompt provider payments. The legislation allocates previously designated funds in the Budget Act of 2023 to the State Department of Social Services and State Department of Education, providing family childcare providers and childcare centers with monthly cost of care rate adjustments starting on January 1, 2024, and running through June 30, 2025. It also includes a one-time flat-rate payment. Additionally, the bill allocates additional funds for the Joint Child Care Providers United - State of California Training Partnership Fund and a health care benefits trust. It further designates $100,000 from the General Fund to the State Department of Social Services for a one-time contribution to the Child Care Providers United - California Retirement Trust and $80,000,000 from the General Fund for retirement benefits to family childcare providers through the trust. The agreement reached between the Governor and Child Care Providers United - California is also approved in this legislation. Finally, the bill clarifies that in case of a conflict between specific provisions in the bill and a memorandum of understanding between the Governor and a certified provider organization, the memorandum of understanding prevails, subject to certain conditions. The bill takes immediate effect as an appropriations-related measure linked to the Budget Bill and expresses the Legislature's intent to make statutory changes concerning the Budget Act of 2023.