Senate BillPassed first houseEducation
SB 190: Early care and education.
What SB 190 does, verified September 30, 2026
This bill expresses the intent of the legislature to enact statutory changes relating to the budget act. The changes will aim to improve the state's financial management and budgeting processes. The bill does not provide specific details on the proposed changes, but rather sets the stage for further legislation to address these issues. The intent of the bill is to ensure the state's financial stability and make informed decisions about budget allocation.
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Last action: (Ayes 56. Noes 19. Page 6855.) (2026-08-30)Alert me
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| Aug. 30, 2026 | (Ayes 56. Noes 19. Page 6855.) |
| Aug. 30, 2026 | Ordered to third reading. |
| Aug. 30, 2026 | Withdrawn from committee pursuant to Asssembly Rule 96. |
| Aug. 28, 2026 | From committee with author's amendments. Read second time and amended. Re-referred to Com. on BUDGET. |
| Mar. 24, 2025 | Referred to Com. on BUDGET. |
Latest bill textAmended version, August 28, 2026 · 22,661 words
| Amended IN Assembly August 28, 2026 |
CALIFORNIA LEGISLATURE— 2025–2026 REGULAR SESSION
Senate Bill
No. 190
| Introduced by Committee on Budget and Fiscal Review |
January 23, 2025 |
LEGISLATIVE COUNSEL'S DIGEST
SB 190, as amended, Committee on Budget and Fiscal Review. Budget Act of 2025. Early care and education.
(1) Existing law, the Early Education Act, among other things, requires the Superintendent of Public Instruction to administer all California state preschool programs. The act establishes a standard reimbursement rate for both the part-day and full-day preschool programs, as provided. The act defines the term “attendance” for purposes of this reimbursement to include excused absences for days a child is not in attendance during an appeal process regarding expulsion or suspension.
This bill would revise the definition of the term “attendance” for purposes of reimbursement to additionally include excused absences for expulsion or suspension, as provided.
(2) The Early Education Act establishes eligibility requirements, including income eligibility requirements, and a specified priority sequence for enrollment, for the part-day and full-day preschool programs. The act requires the State Department of Education to, on or before January 1, 2027, implement these eligibility requirements through management bulletins or similar letters of instruction. The act specifies, for purposes of establishing ongoing income eligibility, that ongoing income eligibility means that a family’s initial income eligibility for services at the time of enrollment will be in effect, regardless of income. The act authorizes a provider operating a California state preschool program within the attendance boundary of a school district or certain public schools where at least 80% of the enrolled pupils are eligible for free or reduced-price meals, foster youth, or English learners, to enroll 3-year-old and 4-year-old children in accordance with the above-described enrollment priorities, and any remaining spots to families not meeting the enrollment priorities, as specified.
This bill would require the department, notwithstanding the rulemaking provisions of the Administrative Procedure Act, to implement, interpret, or make specific these above-described eligibility requirements, ongoing income eligibility establishment, and enrollment authorization prior to regulatory action and would require these management bulletins or similar letters of instruction to have the same force and effect as regulations until the adoption of regulations, as provided. The bill would revise the priority sequence for eligibility by including, as the final priority, enrolling any eligible child in income ranking order, as specified.
(3) Existing law authorizes a California state preschool program to schedule up to 5 days of staff training, per contract period, using state reimbursement funding on specified topics.
This bill would authorize those training days to be used to cover additional topics, including, among others, meeting certain staff professional development requirements, and to be used as full days or partial days, as specified. The bill would require a training day scheduled during a contractor’s regular hours of operation without children in attendance to be considered a day of operation for purposes of meeting the minimum days of operation for part-day and full-day California state preschool programs, as provided. The bill would also require family childcare home providers, as specified, who use the staff training days to be paid based on the maximum certified hours of care for that training time, as provided. The bill would authorize these family childcare home providers to use the training days or partial training days to access training offered by the family childcare home education network or training offered by the Joint Child Care Providers United - State of California Training Partnership Fund.
(4) Existing law requires the State Department of Social Services, in consultation with the State Department of Education, to establish a fee schedule for families using preschool and childcare and developmental services and requires families who utilize those services to be assessed a family fee that is based on income, certified family need for full-time or part-time care services, and enrollment. Existing law requires the Superintendent to use the fee schedule developed in conjunction with the State Department of Social Services for families using full-day preschool services. Existing law requires, by no later than January 1, 2027, contractors to reimburse California state preschool program providers for the full amount of the certificate or voucher without deducting family fees and to collect family fees, as specified.
This bill would instead require, by no later than January 1, 2027, contractors to pay family childcare providers for California state preschool program services without deducting family fees while still requiring contractors to collect those family fees, as specified.
(5) Existing law, the California Child Day Care Facilities Act, provides for the licensure and regulation of child daycare facilities by the State Department of Social Services. A person who willfully or repeatedly violates any provision of the California Child Day Care Facilities Act, or any rule or regulation promulgated under the act, is guilty of a crime. Existing law requires all staff who provide childcare at those facilities, each family daycare home licensee, and each substitute adult in a family daycare home to complete at least 15 hours of specified health and safety training that includes pediatric first aid, pediatric cardiopulmonary resuscitation, and preventive health practices.
This bill would instead just require at least one director or teacher at each daycare center and each family daycare home licensee who provides care to complete that safety training, and would, commencing October 1, 2027, revert back to the above-described existing law.
Existing law requires a family daycare home licensee to be present in the home and ensure that children in care are provided care and supervision during all hours of operation. Existing law requires the licensee to arrange for a substitute adult to provide care and supervision of the children in care when circumstances require a licensee to occasionally be temporarily absent from a family daycare home during its hours of operation, and requires a family daycare home to report and submit a written report on a temporary absence of the licensee to the department, as specified.
This bill would instead require at least one family daycare home licensee to be present in the home, would instead require the arrangement of a substitute adult when a licensee is temporarily absent from a family daycare home during the time period when children in care are present, and would remove the requirement for temporary absence reporting to the department.
(6) Existing law requires the State Department of Social Services, in collaboration with the State Department of Education, to implement a reimbursement system plan that establishes reasonable standards and assigned reimbursement rates for subsidized childcare and development services, and to develop and conduct an alternative methodology for ratesetting, as specified. Existing law requires the department, from October 1, 2024, to July 1, 2027, inclusive, to submit quarterly updates on the implementation of the new reimbursement rates set under the alternative methodology to specified committees of the Legislature and to the Legislative Analyst’s Office.
This bill would instead require those quarterly reports to continue being submitted until July 1, 2028, and would require the quarterly report that is required to be issued in July 2027, to consist of the considerations required to add monthly cost of care plus rates to existing reimbursement rates that are funded within existing childcare and development contracts for alternative payment programs.
Existing law states the intent of the Legislature that the rate structure established under the alternative methodology include certain components, including, among other things, that rates vary based on specified factors, including child age.
This bill would further specify the age groupings the Legislature intends the rate structure to include. The bill would state the intent of the Legislature for the rate structure to include enhanced inclusion rates, to be administered as a per-child amount, as specified. The bill would also state the intent of the Legislature that the alternative methodology be based on a cost study and cost estimation model that considers certain costs.
(7) The Budget Act of 2025 made appropriations related to social services.
This bill would reappropriate $1,000,000 of those funds for activities related to safety and regulation of children’s camps and extend the period in which the reappropriated funds may be encumbered until June 30, 2027.
(8) This bill would declare that it is to take effect immediately as a bill providing for appropriations related to the Budget Bill.
This bill would express the intent of the Legislature to enact statutory changes relating to the Budget Act of 2025.
The people of the State of California do enact as follows:
SECTION 1.
Section 8205 of the Education Code, as amended by Section 1 of Chapter 25 of the Statutes of 2026, is amended to read:8205.
As used in this chapter:(a) “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.
(b) “Assigned reimbursement rate” is that rate established by the contract with the agency in accordance with Section 8242.
(c) “Attendance” means the number of children present at a preschool facility. “Attendance,” for purposes of reimbursement, includes excused absences by children because of illness, quarantine, illness or quarantine of their parent, family emergency, medical and educational appointments, 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. For purposes of reimbursement, a California state preschool program contractor may claim attendance for days that the child is not in attendance during an appeal process and not in attendance pursuant to Section 8489.1.
(d) “Capital outlay” means the amount paid for the renovation and repair of childcare and development and preschool facilities to comply with state and local health and safety standards, and the amount paid for the state purchase of relocatable childcare and development and preschool facilities for lease to qualifying contracting agencies.
(e) “Preschool facility” means a residence or building or part thereof in which preschool services are provided.
(f) “Early childhood programs” means those programs that offer a full range of services for children from infancy to 13 years of age, for any part of a day, by a public, private, or proprietary agency, in centers and family childcare homes.
(g) “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.
(h) “Children with exceptional needs” means either of the following:
(1) Children 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 and shall be receiving early intervention services.
(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 and shall be receiving early intervention services or appropriate special education.
(i) “Cost” includes, but is not limited to, expenditures that are related to the operation of preschool 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.
(j) “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 child development programs, for the purpose of the cancellation provisions of loans to students in institutions of higher learning.
(k) “Family childcare home education network” means an entity organized under law that contracts with the department to make payments to licensed family childcare home providers and to provide educational and support services to those providers and to children and families eligible for California state preschool program services.
(l) “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) 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.
(m) “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.
(n) “Intergenerational staff” means persons of various generations.
(o) “Dual language learner children” means children whose first language is a language other than English or children who are developing two or more languages, one of which may be English.
(p) “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.
(q) “Program director” means a person who, pursuant to Section 8298, is qualified to serve as a program director.
(r) “Proprietary agency” means an organization or facility providing preschool, which is operated for profit.
(s) “Children with severe disabilities” 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. “Children with severe disabilities” 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.
(t) (1) “Site supervisor” means a person who, regardless of their title, has operational program responsibility for an early childhood program at a single site.
(2) A site supervisor shall satisfy one of the following:
(A) Hold a permit issued by the Commission on Teacher Credentialing that authorizes supervision of a childcare and development program operating in a single site.
(B) Hold an administrative credential or an administrative services credential issued by the Commission on Teacher Credentialing.
(C) Meet the qualifications of a program director under Section 8298.
(3) The Superintendent may waive the requirements of this subdivision if the Superintendent determines that the existence of compelling need is appropriately documented.
(u) “Standard reimbursement rate” means the reimbursement rate applicable to California state preschool programs pursuant to Section 8242.
(v) “Startup costs” means those expenses an agency incurs in the process of opening a new or additional facility before the full enrollment of children.
(w) “California state preschool program” means those programs that offer part-day or full-day, or both, educational programs for eligible two-, three-, and four-year-old children. These programs may be offered by a public, private, or proprietary agency, and operated in childcare centers or family childcare homes operating through a family childcare home education network.
(x) “Support services” means those services that, when combined with preschool services, help promote the healthy physical, mental, social, and emotional growth of children. Support services may include, but are not limited to: protective services, parent training, provider and staff training, transportation, parent and child counseling, child development resource and referral services, and child placement counseling.
(y) “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.
(z) “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 preschool program services to the need for these services is low, as determined by the Superintendent.
(aa) “Three-year-old children” means children who will have their third birthday on or before December 1 of the fiscal year in which they are enrolled in a California state preschool program. Children who have their third birthday on or after December 2 of the fiscal year, may be enrolled in a California state preschool program on or after their third birthday. Any child under four years of age shall be served in a California state preschool program facility, licensed in accordance with Title 22 of the California Code of Regulations.
(ab) “Two-year-old children” means children who have had their second birthday and do not otherwise meet the definition of “three-year-old children.”
(ac) “Four-year-old children” means children who will have their fourth birthday on or before December 1 of the fiscal year in which they are enrolled in a California state preschool program, or a child whose fifth birthday occurs after September 1 of the fiscal year in which they are enrolled in a California state preschool and whose parent or guardian has opted to retain or enroll them in a California state preschool program.
(ad) “Homeless children and youth” has the same meaning as defined in Section 11434a(2) of the federal McKinney-Vento Homeless Assistance Act (42 U.S.C. Sec. 11301 et seq.).
(ae) “Local educational agency” means a school district, a county office of education, a community college district, or a school district acting on behalf of one or more schools within the school district.
(af) “Funded enrollment” means the number of subsidized children funded to be enrolled, based on the maximum reimbursable amount, contract rate, inclusive of any adjustment factors, and approved program calendar, by a California state preschool program contractor.
(ag) (1) Effective no later than March 1, 2024, “part-time” means preschool services certified for a child for fewer than 25 hours per week.
(2) Effective no later than March 1, 2024, “full-time” means preschool services certified for a child for 25 or more hours per week.
(3) Notwithstanding the rulemaking provisions of the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code) and Section 33308.5, until regulations are filed with the Secretary of State to implement this subdivision, the department may implement this subdivision through management bulletins or similar letters of instruction on or before December 31, 2023.
(4) The department shall initiate a rulemaking action to adopt regulations to implement this subdivision no later than July 1, 2026.
(5) If the provisions of this subdivision are in conflict with the provisions of a memorandum of understanding reached pursuant to Section 10426 of the Welfare and Institutions Code, the memorandum of understanding shall be controlling without further legislative action, except that if such provisions of a memorandum of understanding require the expenditure of funds, the provisions shall not become effective unless approved by the Legislature in the annual Budget Act.
(ah) This section shall become inoperative on July 1, 2027, and, as of January 1, 2028, is repealed.
SEC. 2.
Section 8205 of the Education Code, as amended by Section 2 of Chapter 25 of the Statutes of 2026, is amended to read:8205.
As used in this chapter:(a) “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.
(b) “Assigned reimbursement rate” is that rate established by the contract with the agency in accordance with Section 8242.
(c) “Attendance” means the number of children present at a preschool facility. “Attendance,” for purposes of reimbursement, includes excused absences by children because of illness, quarantine, illness or quarantine of their parent, family emergency, medical and educational appointments, 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. For purposes of reimbursement, a California state preschool program contractor may claim attendance for days that the child is not in attendance during an appeal process and not in attendance pursuant to Section 8489.1.
(d) “Capital outlay” means the amount paid for the renovation and repair of childcare and development and preschool facilities to comply with state and local health and safety standards, and the amount paid for the state purchase of relocatable childcare and development and preschool facilities for lease to qualifying contracting agencies.
(e) “Preschool facility” means a residence or building or part thereof in which preschool services are provided.
(f) “Early childhood programs” means those programs that offer a full range of services for children from infancy to 13 years of age, for any part of a day, by a public, private, or proprietary agency, in centers and family childcare homes.
(g) “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.
(h) “Children with exceptional needs” means either of the following:
(1) Children 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 and shall be receiving early intervention services.
(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 and shall be receiving early intervention services or appropriate special education.
(i) “Cost” includes, but is not limited to, expenditures that are related to the operation of preschool 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.
(j) “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 child development programs, for the purpose of the cancellation provisions of loans to students in institutions of higher learning.
(k) “Family childcare home education network” means an entity organized under law that contracts with the department to make payments to licensed family childcare home providers and to provide educational and support services to those providers and to children and families eligible for California state preschool program services.
(l) “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) 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.
(m) “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.
(n) “Intergenerational staff” means persons of various generations.
(o) “Dual language learner children” means children whose first language is a language other than English or children who are developing two or more languages, one of which may be English.
(p) “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.
(q) “Program director” means a person who, pursuant to Section 8298, is qualified to serve as a program director.
(r) “Proprietary agency” means an organization or facility providing preschool, which is operated for profit.
(s) “Children with severe disabilities” 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. “Children with severe disabilities” 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.
(t) (1) “Site supervisor” means a person who, regardless of their title, has operational program responsibility for an early childhood program at a single site.
(2) A site supervisor shall satisfy one of the following:
(A) Hold a permit issued by the Commission on Teacher Credentialing that authorizes supervision of a childcare and development program operating in a single site.
(B) Hold an administrative credential or an administrative services credential issued by the Commission on Teacher Credentialing.
(C) Meet the qualifications of a program director under Section 8298.
(3) The Superintendent may waive the requirements of this subdivision if the Superintendent determines that the existence of compelling need is appropriately documented.
(u) “Standard reimbursement rate” means the reimbursement rate applicable to California state preschool programs pursuant to Section 8242.
(v) “Startup costs” means those expenses an agency incurs in the process of opening a new or additional facility before the full enrollment of children.
(w) “California state preschool program” means those programs that offer part-day or full-day, or both, educational programs for eligible three- and four-year-old children. These programs may be offered by a public, private, or proprietary agency, and operated in childcare centers or family childcare homes operating through a family childcare home education network.
(x) “Support services” means those services that, when combined with preschool services, help promote the healthy physical, mental, social, and emotional growth of children. Support services may include, but are not limited to: protective services, parent training, provider and staff training, transportation, parent and child counseling, child development resource and referral services, and child placement counseling.
(y) “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.
(z) “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 preschool program services to the need for these services is low, as determined by the Superintendent.
(aa) “Three-year-old children” means children who will have their third birthday on or before December 1 of the fiscal year in which they are enrolled in a California state preschool program. Children who have their third birthday on or after December 2 of the fiscal year, may be enrolled in a California state preschool program on or after their third birthday. Any child under four years of age shall be served in a California state preschool program facility, licensed in accordance with Title 22 of the California Code of Regulations.
(ab) “Four-year-old children” means children who will have their fourth birthday on or before December 1 of the fiscal year in which they are enrolled in a California state preschool program, or a child whose fifth birthday occurs after September 1 of the fiscal year in which they are enrolled in a California state preschool and whose parent or guardian has opted to retain or enroll them in a California state preschool program.
(ac) “Homeless children and youth” has the same meaning as defined in Section 11434a(2) of the federal McKinney-Vento Homeless Assistance Act (42 U.S.C. Sec. 11301 et seq.).
(ad) “Local educational agency” means a school district, a county office of education, a community college district, or a school district acting on behalf of one or more schools within the school district.
(ae) “Funded enrollment” means the number of subsidized children funded to be enrolled, based on the maximum reimbursable amount, contract rate, inclusive of any adjustment factors, and approved program calendar, by a California state preschool program contractor.
(af) (1) Effective no later than March 1, 2024, “part-time” means preschool services certified for a child for fewer than 25 hours per week.
(2) Effective no later than March 1, 2024, “full-time” means preschool services certified for a child for 25 or more hours per week.
(3) Notwithstanding the rulemaking provisions of the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code) and Section 33308.5, until regulations are filed with the Secretary of State to implement this subdivision, the department may implement this subdivision through management bulletins or similar letters of instruction on or before December 31, 2023.
(4) The department shall initiate a rulemaking action to adopt regulations to implement this subdivision no later than July 1, 2026.
(5) If the provisions of this subdivision are in conflict with the provisions of a memorandum of understanding reached pursuant to Section 10426 of the Welfare and Institutions Code, the memorandum of understanding shall be controlling without further legislative action, except that if such provisions of a memorandum of understanding require the expenditure of funds, the provisions shall not become effective unless approved by the Legislature in the annual Budget Act.
(ag) This section shall become operative on July 1, 2027.
SEC. 3.
Section 8208 of the Education Code, as amended by Section 3 of Chapter 25 of the Statutes of 2026, is amended to read:8208.
(a) (1) A child is eligible for the part-day California state preschool program if both of the following requirements are met:(A) The child is one of the following:
(i) A two-year-old child and the California state preschool program has chosen to enroll the two-year-old child in accordance with the guidance developed pursuant to Section 8207.1.
(ii) A three-year-old child.
(iii) A four-year-old child.
(iv) Enrolled in kindergarten pursuant to Section 48000.
(B) The child’s family is one of the following:
(i) A current aid recipient.
(ii) Income eligible.
(iii) Homeless.
(iv) One whose children are recipients of child protective services, or whose children have been identified as being abused, neglected, or exploited, or at risk of being abused, neglected, or exploited.
(v) (I) One that has children with exceptional needs, as defined in Section 8205.
(II) Only the children in the family who are children with exceptional needs may be enrolled under the eligibility criteria of this clause. Any other child in the family without exceptional needs may be enrolled pursuant to any of the criteria established in clauses (i) to (iv), inclusive.
(vi) One who has a member of its household who is certified to receive benefits from Medi-Cal, CalFresh, the California Food Assistance Program, the California Special Supplemental Nutrition Program for Women, Infants, and Children, the federal Food Distribution Program on Indian Reservations, Head Start, Early Head Start, or any other designated means-tested government program, as determined by the department. Children eligible for services pursuant to this subparagraph shall be prioritized by the income declared on the application for the means-tested government program.
(vii) One whose parent or guardian is employed by a local educational agency.
(2) Notwithstanding any other law, a part-day California state preschool program may provide services to children in families whose income is no more than 15 percent above the income eligibility threshold, as described in Section 8213, after all eligible two-, 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.
(3) Notwithstanding Section 8213, after all otherwise eligible children have been enrolled as provided in paragraphs (1) and (2), a part-day California state preschool program may provide services to two-, three-, and four-year-old children in families whose income is above the income eligibility threshold if those children are children with exceptional needs. Children receiving services pursuant to this paragraph shall not count towards the 10-percent limit in paragraph (2).
(4) Notwithstanding any other law, after all otherwise eligible children have been enrolled as provided in paragraphs (1) to (3), inclusive, a provider operating a part-day state preschool program within the attendance boundary of a public school or school district, as set forth in Section 8217, may enroll two-, three-, and four-year-old children.
(b) A part-day California state preschool program contracting agency shall certify eligibility and enroll families into their program within 120 calendar days prior to the first day of the beginning of the new preschool year. Subsequent to enrollment, a child shall be deemed eligible for a part-day California state preschool program for the remainder of the program year and for the following program year, as long as applicable age-eligibility requirements are met, as specified in Sections 8205 and 48000.
(c) (1) Commencing July 1, 2022, at least 5 percent of a part-day California state preschool program contracting agency’s funded enrollment shall be reserved for children with exceptional needs, as defined in Section 8205.
(2) (A) The department shall review data on compliance and provide technical assistance to California state preschool program contracting agencies to assist them in meeting the requirement described in paragraph (1).
(B) (i) Agencies shall be fully funded for the percentage of enrollment specified in paragraph (1), inclusive of the exceptional needs adjustment factor for that enrollment pursuant to Section 8244, to ensure funding is available to enroll children with exceptional needs within the set aside specified in paragraph (1) at any point during the fiscal year. An agency not meeting the requirement to fill the percent of funded enrollment specified in paragraph (1) with children with exceptional needs shall conduct community outreach to special education partners to recruit additional children with exceptional needs into their programs.
(ii) Commencing with the 2027–28 fiscal year, any portion of funding provided under this paragraph that is not earned during the fiscal year shall not be retained by the agency and shall be subject to recovery by the department.
(C) (i) Any agency not meeting the applicable requirement described in clause (ii) may be put on a conditional contract as described in Section 8314 unless they have applied and been approved for a waiver pursuant to clause (iii).
(ii) On and after July 1, 2026, any agency not meeting the 5-percent requirement pursuant to paragraph (1).
(iii) The Superintendent shall create an ongoing waiver process for an agency not able to meet the requirement described in paragraph (1).
(3) Children with exceptional needs attending California state preschool programs shall be educated in the least restrictive environment in accordance with Section 1412(a)(5)(A) of Title 20 of the United States Code.
(4) (A) Notwithstanding the rulemaking provisions of the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code) and Section 33308.5, until regulations are filed with the Secretary of State to implement this subdivision, the department shall implement this subdivision through management bulletins or similar letters of instruction on or before December 31, 2022.
(B) The department shall initiate a rulemaking action to implement this subdivision on or before December 31, 2023.
(d) (1) A child is eligible for a full-day California state preschool program if all of the following requirements are met:
(A) The child is one of the following:
(i) A two-year-old child and the California state preschool program has chosen to enroll the two-year-old child in accordance with the guidance developed pursuant to Section 8207.1.
(ii) A three-year-old child.
(iii) A four-year-old child.
(B) The child’s family is one of the following:
(i) A current aid recipient.
(ii) Income eligible.
(iii) Homeless.
(iv) One whose children are recipients of child protective services, or whose children have been identified as being abused, neglected, or exploited, or at risk of being abused, neglected, or exploited.
(v) (I) One that has children with exceptional needs, as defined in Section 8205.
(II) Only the children in the family who are children with exceptional needs may be enrolled under the eligibility criteria of this clause. Any other child in the family without exceptional needs may be enrolled pursuant to any of the criteria established in clauses (i) to (iv), inclusive.
(vi) One who has a member of its household who is certified to receive benefits from Medi-Cal, CalFresh, the California Food Assistance Program, the California Special Supplemental Nutrition Program for Women, Infants, and Children, the federal Food Distribution Program on Indian Reservations, Head Start, Early Head Start, or any other designated means-tested government program, as determined by the department. Children eligible for services pursuant to this subparagraph shall be prioritized by the income declared on the application for the means-tested government program.
(vii) One whose parent or guardian is employed by a local educational agency.
(C) The child’s family needs the childcare services because of either of the following:
(i) The child has been identified by a legal, medical, or social services agency, a local educational agency liaison for homeless children and youths designated pursuant to Section 11432(g)(1)(J)(ii) of Title 42 of the United States Code, a Head Start program, or an emergency or transitional shelter as one of the following:
(I) A recipient of protective services.
(II) Being neglected, abused, or exploited, or at risk of neglect, abuse, or exploitation.
(III) Being homeless.
(ii) The child’s parents are one of the following:
(I) Engaged in vocational training leading directly to a recognized trade, paraprofession, or profession.
(II) Engaged in an educational program for English language learners or to attain a high school diploma or general educational development certificate.
(III) Employed or seeking employment.
(IV) Seeking permanent housing for family stability.
(V) Incapacitated.
(VI) Participating in a CalWORKs program activity.
(2) (A) Commencing July 1, 2022, at least 5 percent of a full-day California state preschool program contracting agency’s funded enrollment shall be reserved for children with exceptional needs, as defined in Section 8205.
(B) (i) The department shall review data on compliance and provide technical assistance to California state preschool program contracting agencies to assist them in meeting the requirement described in subparagraph (A).
(ii) Agencies shall be fully funded for the percentage of enrollment specified in subparagraph (A), inclusive of the exceptional needs adjustment factor for that enrollment pursuant to Section 8244, to ensure funding is available to enroll children with exceptional needs within the set aside specified in subparagraph (A) at any point during the fiscal year. An agency not meeting the requirement to fill the percent of funded enrollment specified in subparagraph (A) with children with exceptional needs shall conduct community outreach to special education partners to recruit additional children with exceptional needs into their programs.
(iii) (I) Any agency not meeting the applicable requirement described in subclause (II) may be put on a conditional contract as described in Section 8314 unless they have applied and been approved for a waiver pursuant to subclause (III).
(II) On and after July 1, 2026, any agency not meeting the 5-percent requirement pursuant to subparagraph (A).
(III) The Superintendent shall create an ongoing waiver process for agencies not able to meet the requirement described in subparagraph (A).
(C) Children with exceptional needs attending California state preschool programs shall be educated in the least restrictive environment in accordance with Section 1412(a)(5)(A) of Title 20 of the United States Code.
(D) (i) Notwithstanding the rulemaking provisions of the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code) and Section 33308.5, until regulations are filed with the Secretary of State to implement this paragraph, the department shall implement this paragraph through management bulletins or similar letters of instruction on or before December 31, 2022.
(ii) The department shall initiate a rulemaking action to implement this paragraph on or before December 31, 2023.
(3) Notwithstanding any other law, a full-day California state preschool program may provide services to children in families whose income is no more than 15 percent above the income eligibility threshold, as described in Section 8213, after all eligible two-, three-, and four-year-old children have been enrolled pursuant to paragraph (1). No more than 10 percent of children enrolled, as calculated throughout the participating program’s entire contract, may be filled by children in families above the income eligibility threshold.
(4) Notwithstanding paragraph (1), after all families meeting the criteria specified in paragraphs (1) and (3) have been enrolled, a full-day California state preschool program may provide services to two-, three-, and four-year-old children in families who do not meet at least one of the criteria specified in subparagraph (C) of paragraph (1).
(5) After all otherwise eligible children have been enrolled as provided in paragraphs (1), (3), and (4), a provider operating a full-day California state preschool program within the attendance boundary of a public school or school district, as set forth in Section 8217, may enroll any two-, three-, or four-year-old child.
(e) (1) With the exception of the age requirements and paragraphs (3) and (4), upon establishing initial eligibility for full-day California state preschool program services under this chapter, a family shall be considered to meet all eligibility and need requirements for those services for not less than 24 months, shall receive those services for not less than 24 months before having their eligibility or need recertified, and shall not be required to report changes to income or other changes for at least 24 months, including when a family member transfers to another California state preschool program or when a child is voluntarily disenrolled by their family for any period of time during eligibility.
(2) In the event that the eligibility period as described in paragraph (1) ends before the end of a program year, eligibility shall be extended until the end of the program year, as long as applicable age-eligibility requirements are met, as specified in Section 8205.
(3) A family may, at any time, voluntarily report income or other changes. This information shall be used, as applicable, to reduce the family’s fees, increase the family’s services, or extend the period of the family’s eligibility before recertification.
(f) (1) Because a family that meets eligibility requirements at its most recent eligibility certification or recertification is considered eligible until the next recertification, as provided in subdivision (d), a payment made by a preschool program for a child during this period shall not be considered an error or an improper payment due to a change in the family’s circumstances during that same period.
(2) Notwithstanding paragraph (1), the Superintendent or the Superintendent’s designated agent may seek to recover payments that are the result of fraud.
(g) (1) Notwithstanding the rulemaking provisions of the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code) and Section 33308.5, until regulations are filed with the Secretary of State to implement subdivision (e), the department shall implement implement, interpret, or make specific this section prior to regulatory action on subdivision (e) through management bulletins or similar letters of instruction on or before January 1, 2027. These management bulletins or similar letters of instruction shall have the same force and effect as regulations until the adoption of regulations.
(2) The department shall initiate a rulemaking action to implement subdivision (e) on or before December 31, 2028. 2027.
(h) The Superintendent shall establish guidelines according to which the director or a duly authorized representative of the California state preschool program will certify children as eligible for state reimbursement purposes.
(i) This section shall become inoperative on July 1, 2027, and, as of January 1, 2028, is repealed.
SEC. 4.
Section 8208 of the Education Code, as amended by Section 4 of Chapter 25 of the Statutes of 2026, is amended to read:8208.
(a) (1) A child is eligible for the part-day California state preschool program if both of the following requirements are met:(A) The child is one of the following:
(i) A three-year-old child.
(ii) A four-year-old child.
(iii) Enrolled in kindergarten pursuant to Section 48000.
(B) The child’s family is one of the following:
(i) A current aid recipient.
(ii) Income eligible.
(iii) Homeless.
(iv) One whose children are recipients of child protective services, or whose children have been identified as being abused, neglected, or exploited, or at risk of being abused, neglected, or exploited.
(v) (I) One that has children with exceptional needs, as defined in Section 8205.
(II) Only the children in the family who are children with exceptional needs may be enrolled under the eligibility criteria of this clause. Any other child in the family without exceptional needs may be enrolled pursuant to any of the criteria established in clauses (i) to (iv), inclusive.
(vi) One who has a member of its household who is certified to receive benefits from Medi-Cal, CalFresh, the California Food Assistance Program, the California Special Supplemental Nutrition Program for Women, Infants, and Children, the federal Food Distribution Program on Indian Reservations, Head Start, Early Head Start, or any other designated means-tested government program, as determined by the department. Children eligible for services pursuant to this subparagraph shall be prioritized by the income declared on the application for the means-tested government program.
(vii) One whose parent or guardian is employed by a local educational agency.
(2) Notwithstanding any other law, a part-day California state preschool program may provide services to children in families whose income is no more than 15 percent above the income eligibility threshold, as described in Section 8213, 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.
(3) Notwithstanding Section 8213, after all otherwise eligible children have been enrolled as provided in paragraphs (1) and (2), a part-day California state preschool program may provide services to three- and four-year-old children in families whose income is above the income eligibility threshold if those children are children with exceptional needs. Children receiving services pursuant to this paragraph shall not count towards the 10-percent limit in paragraph (2).
(4) Notwithstanding any other law, after all otherwise eligible children have been enrolled as provided in paragraphs (1) to (3), inclusive, a provider operating a part-day state preschool program within the attendance boundary of a public school or school district, as set forth in Section 8217, may enroll three- and four-year-old children.
(b) A part-day California state preschool program contracting agency shall certify eligibility and enroll families into their program within 120 calendar days prior to the first day of the beginning of the new preschool year. Subsequent to enrollment, a child shall be deemed eligible for a part-day California state preschool program for the remainder of the program year and for the following program year, as long as applicable age-eligibility requirements are met, as specified in Sections 8205 and 48000.
(c) (1) Commencing July 1, 2022, at least 5 percent of a part-day California state preschool program contracting agency’s funded enrollment shall be reserved for children with exceptional needs, as defined in Section 8205.
(2) (A) The department shall review data on compliance and provide technical assistance to California state preschool program contracting agencies to assist them in meeting the requirement described in paragraph (1).
(B) Agencies shall be fully funded for the percentage of enrollment specified in paragraph (1), inclusive of the exceptional needs adjustment factor for that enrollment pursuant to Section 8244, to ensure funding is available to enroll children with exceptional needs within the set aside specified in paragraph (1) at any point during the fiscal year. An agency not meeting the requirement to fill the percent of funded enrollment specified in paragraph (1) with children with exceptional needs shall conduct community outreach to special education partners to recruit additional children with exceptional needs into their programs.
(C) (i) Any agency not meeting the applicable requirement described in clause (ii) may be put on a conditional contract as described in Section 8314 unless they have applied and been approved for a waiver pursuant to clause (iii).
(ii) On and after July 1, 2026, any agency not meeting the 5-percent requirement pursuant to paragraph (1).
(iii) The Superintendent shall create an ongoing waiver process for an agency not able to meet the requirement described in paragraph (1).
(3) Children with exceptional needs attending California state preschool programs shall be educated in the least restrictive environment in accordance with Section 1412(a)(5)(A) of Title 20 of the United States Code.
(4) (A) Notwithstanding the rulemaking provisions of the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code) and Section 33308.5, until regulations are filed with the Secretary of State to implement this subdivision, the department shall implement this subdivision through management bulletins or similar letters of instruction on or before December 31, 2022.
(B) The department shall initiate a rulemaking action to implement this subdivision on or before December 31, 2023.
(d) (1) A child is eligible for a full-day California state preschool program if all of the following requirements are met:
(A) The child is one of the following:
(i) A three-year-old child.
(ii) A four-year-old child.
(B) The child’s family is one of the following:
(i) A current aid recipient.
(ii) Income eligible.
(iii) Homeless.
(iv) One whose children are recipients of child protective services, or whose children have been identified as being abused, neglected, or exploited, or at risk of being abused, neglected, or exploited.
(v) (I) One that has children with exceptional needs, as defined in Section 8205.
(II) Only the children in the family who are children with exceptional needs may be enrolled under the eligibility criteria of this clause. Any other child in the family without exceptional needs may be enrolled pursuant to any of the criteria established in clauses (i) to (iv), inclusive.
(vi) One who has a member of its household who is certified to receive benefits from Medi-Cal, CalFresh, the California Food Assistance Program, the California Special Supplemental Nutrition Program for Women, Infants, and Children, the federal Food Distribution Program on Indian Reservations, Head Start, Early Head Start, or any other designated means-tested government program, as determined by the department. Children eligible for services pursuant to this subparagraph shall be prioritized by the income declared on the application for the means-tested government program.
(vii) One whose parent or guardian is employed by a local educational agency.
(C) The child’s family needs the childcare services because of either of the following:
(i) The child has been identified by a legal, medical, or social services agency, a local educational agency liaison for homeless children and youths designated pursuant to Section 11432(g)(1)(J)(ii) of Title 42 of the United States Code, a Head Start program, or an emergency or transitional shelter as one of the following:
(I) A recipient of protective services.
(II) Being neglected, abused, or exploited, or at risk of neglect, abuse, or exploitation.
(III) Being homeless.
(ii) The child’s parents are one of the following:
(I) Engaged in vocational training leading directly to a recognized trade, paraprofession, or profession.
(II) Engaged in an educational program for English language learners or to attain a high school diploma or general educational development certificate.
(III) Employed or seeking employment.
(IV) Seeking permanent housing for family stability.
(V) Incapacitated.
(VI) Participating in a CalWORKs program activity.
(2) (A) Commencing July 1, 2022, at least 5 percent of a full-day California state preschool program contracting agency’s funded enrollment shall be reserved for children with exceptional needs, as defined in Section 8205.
(B) (i) The department shall review data on compliance and provide technical assistance to California state preschool program contracting agencies to assist them in meeting the requirement described in subparagraph (A).
(ii) (I) Agencies shall be fully funded for the percentage of enrollment specified in subparagraph (A), inclusive of the exceptional needs adjustment factor for that enrollment pursuant to Section 8244, to ensure funding is available to enroll children with exceptional needs within the set aside specified in subparagraph (A) at any point during the fiscal year. An agency not meeting the requirement to fill the percent of funded enrollment specified in subparagraph (A) with children with exceptional needs shall conduct community outreach to special education partners to recruit additional children with exceptional needs into their programs.
(II) Commencing with the 2027–28 fiscal year, any portion of funding provided under this paragraph that is not earned during the fiscal year shall not be retained by the agency and shall be subject to recovery by the department.
(iii) (I) Any agency not meeting the applicable requirement described in subclause (II) may be put on a conditional contract as described in Section 8314 unless they have applied and been approved for a waiver pursuant to subclause (III).
(II) On and after July 1, 2026, any agency not meeting the 5-percent requirement pursuant to subparagraph (A).
(III) The Superintendent shall create an ongoing waiver process for agencies not able to meet the requirement described in subparagraph (A).
(C) Children with exceptional needs attending California state preschool programs shall be educated in the least restrictive environment in accordance with Section 1412(a)(5)(A) of Title 20 of the United States Code.
(D) (i)Notwithstanding the rulemaking provisions of the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code) and Section 33308.5, until regulations are filed with the Secretary of State to implement this paragraph, the department shall implement this paragraph through management bulletins or similar letters of instruction on or before December 31, 2022.
(ii) The department shall initiate a rulemaking action to implement this paragraph on or before December 31, 2023.
(3) Notwithstanding any other law, a full-day California state preschool program may provide services to children in families whose income is no more than 15 percent above the income eligibility threshold, as described in Section 8213, after all eligible three- and four-year-old children have been enrolled pursuant to paragraph (1). No more than 10 percent of children enrolled, as calculated throughout the participating program’s entire contract, may be filled by children in families above the income eligibility threshold.
(4) Notwithstanding paragraph (1), after all families meeting the criteria specified in paragraphs (1) and (3) have been enrolled, a full-day California state preschool program may provide services to three- and four-year-old children in families who do not meet at least one of the criteria specified in subparagraph (C) of paragraph (1).
(5) After all otherwise eligible children have been enrolled as provided in paragraphs (1), (3), and (4), a provider operating a full-day California state preschool program within the attendance boundary of a public school or school district, as set forth in Section 8217, may enroll any three- or four-year-old child.
(e) (1) With the exception of the age requirements and paragraphs (3) and (4), upon establishing initial eligibility for full-day California state preschool program services under this chapter, a family shall be considered to meet all eligibility and need requirements for those services for not less than 24 months, shall receive those services for not less than 24 months before having their eligibility or need recertified, and shall not be required to report changes to income or other changes for at least 24 months, including when a family member transfers to another California state preschool program or when a child is voluntarily disenrolled by their family for any period of time during eligibility.
(2) In the event that the eligibility period as described in paragraph (1) ends before the end of a program year, eligibility shall be extended until the end of the program year, as long as applicable age-eligibility requirements are met, as specified in Section 8205.
(3) A family may, at any time, voluntarily report income or other changes. This information shall be used, as applicable, to reduce the family’s fees, increase the family’s services, or extend the period of the family’s eligibility before recertification.
(f) (1) Because a family that meets eligibility requirements at its most recent eligibility certification or recertification is considered eligible until the next recertification, as provided in subdivision (d), a payment made by a preschool program for a child during this period shall not be considered an error or an improper payment due to a change in the family’s circumstances during that same period.
(2) Notwithstanding paragraph (1), the Superintendent or the Superintendent’s designated agent may seek to recover payments that are the result of fraud.
(g) (1) Notwithstanding the rulemaking provisions of the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code) and Section 33308.5, until regulations are filed with the Secretary of State to implement subdivision (e), the department shall implement implement, interpret, or make specific this section prior to regulatory action on subdivision (e) through management bulletins or similar letters of instruction on or before January 1, 2027. These management bulletins or similar letters of instruction shall have the same force and effect as regulations until the adoption of regulations.
(2) The department shall initiate a rulemaking action to implement subdivision (e) on or before December 31, 2028. 2027.
(h) The Superintendent shall establish guidelines according to which the director or a duly authorized representative of the California state preschool program will certify children as eligible for state reimbursement purposes.
(i) This section shall become operative on July 1, 2027.
SEC. 5.
Section 8210 of the Education Code, as amended by Section 5 of Chapter 25 of the Statutes of 2026, is amended to read:8210.
(a) Each applicant or contracting agency shall give priority for part-day programs according to the following:(1) The first priority for services shall be given to three-year-old or four-year-old children who are recipients of child protective services or who are at risk of being neglected, abused, or exploited and for whom there is a 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 resources and referral services so that services for the child can be located. To the extent the contractor has elected to offer services pursuant to Section 8207.1, then priority for services shall be given to two-year-old children who are recipients of child protective services or who are at risk of being neglected, abused, or exploited and for whom there is a written referral from a legal, medical, or social service agency.
(2) (A) The second priority for services shall be given to all three- and four-year-old children with exceptional needs from families with incomes below the income eligibility threshold, as described in Section 8213.
(B) Within this priority category, children with exceptional needs from families with the lowest income according to the income ranking on the most recent schedule of income ceiling eligibility table, as published by the Superintendent at the time of enrollment, shall be enrolled first.
(C) If enrollment of children with exceptional needs does not exceed the set aside pursuant to Section 8208, this priority category shall also include three- and four-year-old children with exceptional needs from families with incomes above the income eligibility threshold, as described in Section 8213. Families served under this subparagraph with the lowest income, consistent with subparagraph (B), shall be enrolled first.
(3) (A) The third priority for services shall be given to eligible three-year-old or four-year-old children who are not enrolled in a state-funded transitional kindergarten program. This priority shall not include children eligible pursuant to clause (v) or (vii) of subparagraph (B) of paragraph (1) of subdivision (a) of Section 8208 if they are from families with incomes above the income eligibility threshold, as described in Section 8213.
(B) (i) Within this priority category, eligible children with the lowest income according to the income ranking on the most recent schedule of income ceiling eligibility table, as published by the Superintendent at the time of enrollment, shall be enrolled first.
(ii) If two or more families have the same income ranking according to the most recent schedule of income ceiling eligibility table, a child who is identified as a dual language learner shall be enrolled first.
(iii) If there are no children who are identified as dual language learners, the child that has been on the waiting list for the longest time shall be admitted first.
(4) (A) The fourth priority for services shall be given to three-year-old and four-year-old children of employees of a local educational agency. agency not enrolled pursuant to paragraph (3).
(B) Within this priority category, eligible children from families with the lowest income according to the income ranking on the most recent schedule of income ceiling eligibility table, as published by the Superintendent at the time of enrollment, shall be enrolled first.
(5) (A) The fifth priority for services shall be given to eligible two-year-old children, to the extent the contractor has elected to offer services pursuant to Section 8207.1. This priority shall not include children eligible pursuant to clause (v) of subparagraph (B) of paragraph (1) of subdivision (a) of Section 8208 if they are from families with incomes above the income eligibility threshold, as described in Section 8213.
(B) (i) Within this priority category, eligible children with the lowest income according to the income ranking on the most recent schedule of income ceiling eligibility table, as published by the Superintendent at the time of enrollment, shall be enrolled first.
(ii) If two or more families have the same income ranking according to the most recent schedule of income ceiling eligibility table, a child who is identified as a dual language learner shall be enrolled first.
(iii) If there are no children who are identified as dual language learners, the child that has been on the waiting list for the longest time shall be admitted first.
(6) (A) The sixth priority, after all otherwise eligible children have been enrolled, shall be children from families whose income is no more than 15 percent above the eligibility income threshold, as described in Section 8213.
(B) Within this priority category, priority shall be given to three- and four-year-old children with exceptional needs interested in enrolling beyond those already enrolled in the set aside pursuant to Section 8208.
(7) (A) After all otherwise eligible children have been enrolled in the first through sixth priority categories, as described in paragraphs (1) to (6), inclusive, a provider contractor may enroll any eligible child pursuant to Section 8208.
(B) (i) Within this priority category, eligible children with the lowest income according to the income ranking on the most recent schedule of income ceiling eligibility table, as published by the Superintendent at the time of enrollment, shall be enrolled first.
(ii) If two or more families have the same income ranking according to the most recent schedule of income ceiling eligibility table, the child that has been on the waiting list for the longest time shall be admitted first.
(b) The Superintendent shall set criteria for, and may grant specific waivers of, the priorities established in this section 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) This section shall become inoperative on July 1, 2027, and, as of January 1, 2028, is repealed.
SEC. 6.
Section 8210 of the Education Code, as amended by Section 6 of Chapter 25 of the Statutes of 2026, is amended to read:8210.
(a) Each applicant or contracting agency shall give priority for part-day programs according to the following:(1) The first priority for services shall be given to three-year-old or four-year-old children who are recipients of child protective services or who are at risk of being neglected, abused, or exploited and for whom there is a 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 resources and referral services so that services for the child can be located.
(2) (A) The second priority for services shall be given to all three- and four-year-old children with exceptional needs from families with incomes below the income eligibility threshold, as described in Section 8213.
(B) Within this priority category, children with exceptional needs from families with the lowest income according to the income ranking on the most recent schedule of income ceiling eligibility table, as published by the Superintendent at the time of enrollment, shall be enrolled first.
(C) If enrollment of children with exceptional needs does not exceed the set aside pursuant to Section 8208, this priority category shall also include three- and four-year-old children with exceptional needs from families with incomes above the income eligibility threshold, as described in Section 8213. Families served under this subparagraph with the lowest income, consistent with subparagraph (B), shall be enrolled first.
(3) (A) The third priority for services shall be given to eligible three-year-old or four-year-old children who are not enrolled in a state-funded transitional kindergarten program. This priority shall not include children eligible pursuant to clause (v) or (vii) of subparagraph (B) of paragraph (1) of subdivision (a) of Section 8208 if they are from families with incomes above the income eligibility threshold, as described in Section 8213.
(B) (i) Within this priority category, eligible children with the lowest income according to the income ranking on the most recent schedule of income ceiling eligibility table, as published by the Superintendent at the time of enrollment, shall be enrolled first.
(ii) If two or more families have the same income ranking according to the most recent schedule of income ceiling eligibility table, a child who is identified as a dual language learner shall be enrolled first.
(iii) If there are no children who are identified as dual language learners, the child that has been on the waiting list for the longest time shall be admitted first.
(4) (A) The fourth priority for services shall be given to three-year-old and four-year-old children of employees of a local educational agency. agency not enrolled pursuant to paragraph (3).
(B) Within this priority category, eligible children with the lowest income according to the income ranking on the most recent schedule of income ceiling eligibility table, as published by the Superintendent at the time of enrollment, shall be enrolled first.
(5) (A) The fifth priority, after all otherwise eligible children have been enrolled, shall be children from families whose income is no more than 15 percent above the eligibility income threshold, as described in Section 8213.
(B) Within this priority category, priority shall be given to three- and four-year-old children with exceptional needs interested in enrolling beyond those already enrolled in the set aside pursuant to Section 8208.
(6) (A) After all otherwise eligible children have been enrolled in the first through fifth priority categories, as described in paragraphs (1) to (5), inclusive, a provider contractor may enroll any eligible child pursuant to Section 8208.
(B) (i) Within this priority category, eligible children with the lowest income according to the income ranking on the most recent schedule of income ceiling eligibility table, as published by the Superintendent at the time of enrollment, shall be enrolled first.
(ii) If two or more families have the same income ranking according to the most recent schedule of income ceiling eligibility table, the child that has been on the waiting list for the longest time shall be admitted first.
(b) The Superintendent shall set criteria for, and may grant specific waivers of, the priorities established in this section 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) This section shall become operative on July 1, 2027.
SEC. 7.
Section 8211 of the Education Code, as amended by Section 7 of Chapter 25 of the Statutes of 2026, is amended to read:8211.
(a) Each applicant or contracting agency shall give priority for full-day programs according to the following:(1) (A) The first priority for services shall be given to three-year-old or four-year-old 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. To the extent the contractor has elected to offer services pursuant to Section 8207.1, then priority for services shall be given to two-year-old children who are recipients of child protective services or who are at risk of being neglected, abused, or exploited and for whom there is a written referral from a legal, medical, or social service agency.
(B) 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 resources and referral services so that services for the child can be located.
(2) (A) The second priority for services shall be given to all three- and four-year-old children with exceptional needs from families with incomes below the income eligibility threshold, described in Section 8213.
(B) Within this priority category, children with exceptional needs from families with the lowest income according to the income ranking on the most recent schedule of income ceiling eligibility table, as published by the Superintendent at the time of enrollment, shall be enrolled first.
(C) If enrollment of children with exceptional needs does not exceed the set aside pursuant to Section 8208, this priority category shall also include three- and four-year-old children with exceptional needs from families with incomes above the income eligibility threshold, as described in Section 8213. Families served under this subparagraph with the lowest income, consistent with subparagraph (B), shall be enrolled first.
(3) (A) The third priority for services shall be given to eligible three-year-old or four-year-old children who are not enrolled in a state-funded transitional kindergarten program. This priority shall not include children eligible pursuant to clause (v) of subparagraph (B) of paragraph (1) of subdivision (a) of Section 8208 if they are from families with incomes above the income eligibility threshold, as described in Section 8213.
(B) (i) Within this priority category, eligible children with the lowest income according to the income ranking on the most recent schedule of income ceiling eligibility table, as published by the Superintendent at the time of enrollment, shall be enrolled first.
(ii) If two or more families have the same income ranking according to the most recent schedule of income ceiling eligibility table, a child who is identified as a dual language learner shall be enrolled first.
(iii) If there are no children who are identified as dual language learners, the child that has been on the waiting list for the longest time shall be admitted first.
(4) (A) The fourth priority for services shall be given to children of employees of a local educational agency.
(B) Within this priority category, eligible children with the lowest income according to the income ranking on the most recent schedule of income ceiling eligibility table, as published by the Superintendent at the time of enrollment, shall be enrolled first.
(5) (A) The fifth priority for services shall be given to eligible two-year-old children, to the extent the contractor has elected to offer services pursuant to Section 8207.1. This priority shall not include children eligible pursuant to clause (v) of subparagraph (B) of paragraph (1) of subdivision (a) of Section 8208 if they are from families with incomes above the income eligibility threshold, as described in Section 8213.
(B) (i) Within this priority category, eligible children with the lowest income according to the income ranking on the most recent schedule of income ceiling eligibility table, as published by the Superintendent at the time of enrollment, shall be enrolled first.
(ii) If two or more families have the same income ranking according to the most recent schedule of income ceiling eligibility table, a child who is identified as a dual language learner shall be enrolled first.
(iii) If there are no children who are identified as dual language learners, the child that has been on the waiting list for the longest time shall be admitted first.
(6) (A) The sixth priority, after all otherwise eligible children have been enrolled, shall be children from families whose income is no more than 15 percent above the income eligibility threshold, as described in Section 8213.
(B) Within this priority category, priority shall be given to three- and four-year-old children with exceptional needs interested in enrolling beyond those already enrolled in the set aside pursuant to Section 8208.
(C)(i)After the children enrolling pursuant to subparagraph (B) are enrolled, three- and four-year-old children without exceptional needs shall be enrolled in income ranking order, with the lowest income according to the income ranking on the most recent schedule of income ceiling eligibility table, as published by the Superintendent at the time of enrollment, being enrolled first.
(ii)For purposes of clause (i), if two or more families have the same income ranking according to the most recent schedule of income ceiling eligibility table, the child that has been on the waiting list for the longest time shall be admitted first.
(7) (A) After all otherwise eligible children have been enrolled in the first through sixth priority categories, as described in paragraphs (1) to (6), inclusive, a provider contractor may enroll any eligible child pursuant to Section 8208.
(B) (i) Within this priority category, contractors shall enroll families in income ranking order, with the lowest income according to the most recent schedule of income ceiling eligibility table, as published by the Superintendent at the time of enrollment, being enrolled first.
(ii) If two or more families have the same income ranking according to the most recent schedule of income ceiling eligibility table, the child that has been on the waiting list for the longest time shall be admitted first.
(b) The Superintendent shall set criteria for, and may grant specific waivers of, the priorities established in this section 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) This section shall become inoperative on July 1, 2027, and, as of January 1, 2028, is repealed.
SEC. 8.
Section 8211 of the Education Code, as amended by Section 8 of Chapter 25 of the Statutes of 2026, is amended to read:8211.
(a) Each applicant or contracting agency shall give priority for full-day programs according to the following:(1) The first priority for services shall be given to three-year-old or four-year-old 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 resources and referral services so that services for the child can be located.
(2) (A) The second priority for services shall be given to all three- and four-year-old children with exceptional needs from families with incomes below the income eligibility threshold, described in Section 8213.
(B) Within this priority category, children with exceptional needs from families with the lowest income according to the income ranking on the most recent schedule of income ceiling eligibility table, as published by the Superintendent at the time of enrollment, shall be enrolled first.
(C) If enrollment of children with exceptional needs does not exceed the set aside pursuant to Section 8208, this priority category shall also include three- and four-year-old children with exceptional needs from families with incomes above the income eligibility threshold, as described in Section 8213. Families served under this subparagraph with the lowest income, consistent with subparagraph (B), shall be enrolled first.
(3) (A) The third priority for services shall be given to eligible three-year-old or four-year-old children who are not enrolled in a state-funded transitional kindergarten program. This priority shall not include children eligible pursuant to clause (v) of subparagraph (B) of paragraph (1) of subdivision (a) of Section 8208 if they are from families with incomes above the income eligibility threshold, as described in Section 8213.
(B) (i) Within this priority category, eligible children with the lowest income according to the income ranking on the most recent schedule of income ceiling eligibility table, as published by the Superintendent at the time of enrollment, shall be enrolled first.
(ii) If two or more families have the same income ranking according to the most recent schedule of income ceiling eligibility table, a child who is identified as a dual language learner shall be enrolled first.
(iii) If there are no children who are identified as dual language learners, the child that has been on the waiting list for the longest time shall be admitted first.
(4) (A) The fourth priority for services shall be given to children of employees of a local educational agency.
(B) Within this priority category, eligible children with the lowest income according to the income ranking on the most recent schedule of income ceiling eligibility table, as published by the Superintendent at the time of enrollment, shall be enrolled first.
(5) (A) The fifth priority, after all otherwise eligible children have been enrolled, shall be children from families whose income is no more than 15 percent above the income eligibility threshold, as described in Section 8213.
(B) Within this priority category, priority shall be given to three- and four-year-old children with exceptional needs interested in enrolling beyond those already enrolled in the set aside pursuant to Section 8208.
(C)(i)After the children enrolling pursuant to subparagraph (B) are enrolled, three- and four-year-old children without exceptional needs shall be enrolled in income ranking order, with the lowest income according to the income ranking on the most recent schedule of income ceiling eligibility table, as published by the Superintendent at the time of enrollment, being enrolled first.
(ii)For purposes of clause (i), if two or more families have the same income ranking according to the most recent schedule of income ceiling eligibility table, the child that has been on the waiting list for the longest time shall be admitted first.
(6) (A) After all otherwise eligible children have been enrolled in the first through fifth priority categories, as described in paragraphs (1) to (5), inclusive, a provider contractor may enroll any eligible child pursuant to Section 8208.
(B) (i) Within this priority category, contractors shall enroll families in income ranking order, with the lowest income according to the most recent schedule of income ceiling eligibility table, as published by the Superintendent at the time of enrollment, being enrolled first.
(ii) If two or more families have the same income ranking according to the most recent schedule of income ceiling eligibility table, the child that has been on the waiting list for the longest time shall be admitted first.
(b) The Superintendent shall set criteria for, and may grant specific waivers of, the priorities established in this section 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) This section shall become operative on July 1, 2027.
SEC. 9.
Section 8213 of the Education Code is amended to read:8213.
(a) For purposes of establishing initial income eligibility for services under this chapter, “income eligible” means that a family’s adjusted monthly income is at or below 100 percent of the state median income, adjusted for family size, as specified in subdivision (c).(b) For purposes of establishing ongoing income eligibility under this chapter, “ongoing income eligible” means that a family’s initial income eligibility for services at the time of enrollment will be in effect, regardless of an increase in income.
(c) The Department of Finance shall calculate the state median income for family sizes of one to four, inclusive, by using the most recent census data available on state median family income in the past 12 months by family size. The Department of Finance shall calculate the state median income for family sizes of five and above by using the most recent census data for a family of four and multiplying this number by the ratios for the appropriate family size used in the federal Low-Income Home Energy Assistance Program (42 U.S.C. Sec. 8621 et seq.) and specified in federal regulations at paragraphs (5), (6), and (7) of subdivision (b) of Section 96.85 of Title 45 of the Code of Federal Regulations. The Department of Finance shall update its calculations of the state median income for families according to the methodology provided in this subdivision and provide the updated data to the department no later than March 1 of each fiscal year.
(d) The income of a recipient of federal supplemental security income benefits pursuant to Title XVI of the federal Social Security Act (42 U.S.C. Sec. 1381 et seq.) and state supplemental program benefits pursuant to Title XVI of the federal Social Security Act and Chapter 3 (commencing with Section 12000) of Part 3 of Division 9 of the Welfare and Institutions Code shall not be included as income for purposes of determining eligibility for childcare under this chapter.
(e) Payments made on behalf of a child pursuant to Section 11460, 11461.3, 11461.36, or 11461.4 of the Welfare and Institutions Code shall not be included as income for purposes of determining eligibility for preschool pursuant to Section 8208.
(f) Notwithstanding any other law, guaranteed income payments received by an individual shall not be included as income for purposes of determining eligibility for preschool pursuant to Section 8208. For purposes of this subdivision, “guaranteed income payments” mean unconditional, recurring, regular cash payments, whether publicly or privately funded, that are intended to support the basic needs of eligible recipients, including, but not limited to, payments provided through pilot programs and projects receiving funding from the California Guaranteed Income Pilot Program (Chapter 16 (commencing with Section 18997) of Part 6 of Division 9 of the Welfare and Institutions Code).
(g) Notwithstanding the rulemaking provisions of the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code) and Section 33308.5, until regulations are filed with the Secretary of State to implement subdivision (b), the department shall implement, interpret, or make specific this section prior to regulatory action on subdivision (b) through management bulletins or similar letters of instruction on or before December 31, 2027. These management bulletins or similar letters of instruction shall have the same force and effect as regulations until the adoption of regulations.
SEC. 10.
Section 8217 of the Education Code, as amended by Section 11 of Chapter 25 of the Statutes of 2026, is amended to read:8217.
(a) Notwithstanding any other law, a provider operating a state preschool program within the attendance boundary of a school district or public school, except a charter or magnet school, where at least 80 percent of enrolled pupils are unduplicated pupils, as defined in subdivision (b) of Section 42238.02, may enroll two-, three-, and four-year-old children, as defined in Section 8205, in accordance with the enrollment priorities set forth in Sections 8210 and 8211. Any remaining slots may be open to enrollment of any families not otherwise eligible pursuant to Section 8208, subject to both of the following:(1) Enrollment of eligible two-, three-, and four-year-old children pursuant to this paragraph shall be limited to families that establish residency within, or have a parent or guardian who is employed within, the attendance boundary of the qualifying school district or public school in which the state preschool program is located. Providers shall require proof of residency or employment location as a condition of enrollment.
(2) To the best of their ability, providers shall give first enrollment priority for slots available pursuant to this paragraph to families with the lowest income, and last enrollment priority to families with the highest income.
(b) (1) Notwithstanding the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code) and Section 33308.5, until regulations are filed with the Secretary of State to implement subdivision (a), the department shall implement implement, interpret, or make specific this section prior to regulatory action on subdivision (a) through management bulletins or similar letters of instruction issued on or before December 1, 2023. 2026. These management bulletins or similar letters of instruction shall have the same force and effect as regulations until the adoption of regulations.
(2) The department shall initiate a rulemaking action to implement subdivision (a) on or before December 31, 2024. 2027.
(c) For purposes of this section, “magnet school” means an entire school with a focus on a special area of study, such as science, the performing arts, or career education, designed to attract pupils from across the school district who may choose to attend the magnet school instead of their local public school.
(d) This section shall become inoperative on July 1, 2027, and, as of January 1, 2028, is repealed.
SEC. 11.
Section 8217 of the Education Code, as amended by Section 12 of Chapter 25 of the Statutes of 2026, is amended to read:8217.
(a) Notwithstanding any other law, a provider operating a state preschool program within the attendance boundary of a school district or public school, except a charter or magnet school, where at least 80 percent of enrolled pupils are unduplicated pupils, as defined in subdivision (b) of Section 42238.02, may enroll three- and four-year-old children, as defined in Section 8205, in accordance with the enrollment priorities set forth in Sections 8210 and 8211. Any remaining slots may be open to enrollment of any families not otherwise eligible pursuant to Section 8208, subject to both of the following:(1) Enrollment of eligible three- and four-year-old children pursuant to this paragraph shall be limited to families that establish residency within, or have a parent or guardian who is employed within, the attendance boundary of the qualifying school district or public school in which the state preschool program is located. Providers shall require proof of residency or employment location as a condition of enrollment.
(2) To the best of their ability, providers shall give first enrollment priority for slots available pursuant to this paragraph to families with the lowest income, and last enrollment priority to families with the highest income.
(b) (1) Notwithstanding the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code) and Section 33308.5, until regulations are filed with the Secretary of State to implement subdivision (a), the department shall implement implement, interpret, or make specific this section prior to regulatory action on subdivision (a) through management bulletins or similar letters of instruction issued on or before December 1, 2023. 2026. These management bulletins or similar letters of instruction shall have the same force and effect as regulations until the adoption of regulations.
(2) The department shall initiate a rulemaking action to implement subdivision (a) on or before December 31, 2024. 2027.
(c) For purposes of this section, “magnet school” means an entire school with a focus on a special area of study, such as science, the performing arts, or career education, designed to attract pupils from across the school district who may choose to attend the magnet school instead of their local public school.
(d) This section shall become operative on July 1, 2027.
SEC. 12.
Section 8242 of the Education Code is amended to read:8242.
(a) The department, in collaboration with the State Department of Social Services, shall implement a reimbursement system 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) The department may establish any regulations deemed advisable concerning conditions of service and hours of enrollment for children in the programs.
(b) (1) (A) Commencing July 1, 2021, the standard reimbursement rate shall be twelve thousand nine hundred sixty-eight dollars ($12,968).
(B) Commencing July 1, 2021, the standard reimbursement rate for part-day California state preschool programs shall be five thousand six hundred twenty-one dollars ($5,621).
(2) Commencing in the 2022–23 fiscal year, the standard reimbursement rates described in paragraph (1) shall be increased by the cost-of-living adjustment granted by the Legislature annually pursuant to Section 42238.15.
(c) (1) Commencing January 1, 2022, contractors who, as of December 31, 2021, received the standard reimbursement rate established in this section shall be reimbursed at the greater of the following:
(A) The 75th percentile of the 2018 regional market rate survey.
(B) The contract per-child reimbursement amount as of December 31, 2021, as increased by the cost-of-living adjustment pursuant to paragraph (2) of subdivision (b).
(2) Commencing July 1, 2022, subject to available funding, the department may issue temporary rate increases to contractors that exceed the rates specified in paragraph (1) and the reimbursement rate supplements described in Section 51 of Chapter 571 of the Statutes of 2022.
(3) In accordance with federal requirements for Child Care Stabilization Grants appropriated pursuant to the federal American Rescue Plan Act of 2021 (Public Law 117-2), contractors shall provide information via a one-time application or survey in advance of receiving American Rescue Plan Act funds. The department shall specify the timeline and format in which this information shall be submitted, and the information shall include, but not be limited to, all of the following:
(A) Address, including ZIP Code.
(B) Race and ethnicity.
(C) Gender.
(D) Whether the provider is open and available to provide childcare services or closed due to the COVID-19 public health emergency.
(E) What types of federal relief funds have been received from the state.
(F) Use of federal relief funds received.
(G) Documentation that the provider met certifications as required by federal law.
(4) Rate increases shall be subject to federal usage limitations and federal and state program eligibility requirements.
(d) (1) Funding shall be allocated to the State Department of Education, pursuant to paragraph (2), from a portion of funds in Schedule (1) of Item 6100-194-0001 of, and Schedule (1) of Item 6100-196-0001 of, the Budget Act of 2025, and a portion of funds in Schedule (1) of Item 6100-196-0001 of the Budget Act of 2026 to provide a once-per-month, per-child-served cost of care plus rate for providers serving children enrolled in California state preschool programs.
(2) (A) Of the funding described in paragraph (1), funding is hereby allocated to the State Department of Education to provide preschool providers with a monthly cost of care plus rate increase commencing July 1, 2026. The increase per child shall be equal to the amount calculated in clause (iii) of subparagraph (B).
(B) The Department of Finance shall make the following calculations based on data provided by the State Department of Education:
(i) The total cost of providing the statutory cost of living adjustment for preschool programs in the 2026–27 fiscal year pursuant to Section 42238.15 for the preschool programs described in paragraph (1).
(ii) The estimated cost of providing the monthly cost of care plus rates described in subparagraph (E) of paragraph (2) of subdivision (c) of Section 10277.1 of, and paragraph (3) of subdivision (c) of Section 10277.2 of, the Welfare and Institutions Code in the 2026–27 fiscal year based on the estimates of child enrollment for the 2026–27 fiscal year provided by the State Department of Education.
(iii) Divide the amount calculated in clause (i) by the amount calculated in clause (ii).
(C) Notwithstanding any other law, for the 2026–27 fiscal year, the cost-of-living adjustment shall be 2.009 percent for the purpose of the calculation in subparagraph (B).
(e) (1) (A) Notwithstanding subdivisions (b) and (c), for the 2023–24 fiscal year and the 2024–25 fiscal year, the cost-of-living adjustment required pursuant to subdivisions (b) and (c) shall instead be zero.
(B) It is the intent of the Legislature that any adjustments in the 2023–24, 2024–25, and 2025–26 fiscal years related to reimbursement for programs funded pursuant to this section will be subject to a ratified agreement, and subject to future legislation providing for appropriations related to the budget bill.
(2) Notwithstanding subdivisions (b) and (c), for the 2025–26 fiscal year, the cost-of-living adjustment required pursuant to subdivisions (b) and (c) shall instead be zero.
(3) Notwithstanding subdivisions (b) and (c), for the 2026–27 fiscal year, the cost-of-living adjustment required pursuant to subdivisions (b) and (c) shall instead be zero.
(f) Commencing July 1, 2026, the cost-of-living adjustment shall be applied consistently with subdivision (m) of Section 10227.6 of the Welfare and Institutions Code.
SEC. 13.
Section 8251 of the Education Code is amended to read:8251.
(a) (1) An agency contracting with the department to provide California state preschool program services may schedule up to five days of staff training, per contract period, using state reimbursement funding on the topics including procedures for emergencies in preschool programs, licensing regulations relating to preschool programs, recognition and reporting of suspected abuse of children in preschool programs, managing challenging behaviors and preventing expulsion of children, meeting the staff professional development requirements under Section 17704 of Title 5 of the California Code of Regulations, improving program quality in alignment with state standards and regulations, including, but not limited to, the California Preschool/Transitional Kindergarten Learning Foundations (PTKLF) and the Classroom Assessment Scoring System (CLASS), supporting early literacy and math development, and addressing items on the program’s Quality Rating and Improvement System (QRIS) Quality plan.(2) Training days may be used as full days or as partial days. Partial days may add up to a maximum of 40 hours of professional development claimed on different days throughout the year.
(b) (1) A day of staff training as described in this section that is scheduled during a contractor’s regular hours of operation without children in attendance shall be considered a day of operation for purposes of meeting the minimum days of operation for part-day and full-day California state preschool programs required pursuant to subdivisions (b) and (c) of Section 8207.
(2) For purposes of reimbursement, contractors may report the child days of enrollment and attendance on days in which the contractor was closed for staff training and children were not in attendance.
(c) (1) Family childcare home providers participating in the California state preschool program family childcare home education network pursuant to subdivision (k) of Section 8205 who use the staff training days pursuant to subdivision (a) shall be paid based on the maximum certified hours of care pursuant to subdivision (d) of Section 8245.5 during the time in training.
(2) Family childcare home providers participating in the California state preschool program family childcare home education network pursuant to subdivision (k) of Section 8205 may use the training days or partial training days to access training offered by the family childcare home education network or training offered by the Joint Child Care Providers United - State of California Training Partnership Fund established pursuant to Section 10277.3 of the Welfare and Institutions Code.
SEC. 14.
Section 8252 of the Education Code is amended to read:8252.
(a) The Superintendent shall use the fee schedule developed in conjunction with the State Department of Social Services for families using full-day preschool services pursuant to this chapter, including families receiving services pursuant to subdivision (a) of Section 8211.(b) Families shall be assessed a single flat monthly fee for all state subsidized early childhood services received, including California state preschool program services and services received through childcare and development programs administered by the State Department of Social Services, pursuant to Section 10290 of the Welfare and Institutions Code.
(c) The income of a recipient of federal supplemental security income benefits pursuant to Title XVI of the federal Social Security Act (42 U.S.C. Sec. 1381 et seq.) and state supplemental program benefits pursuant to Title XVI of the federal Social Security Act (42 U.S.C. Sec. 1381 et seq.) and Chapter 3 (commencing with Section 12000) of Part 3 of Division 9 of the Welfare and Institutions Code shall not be included in total countable income for purposes of determining the amount of the family fee.
(d) Family fees shall be assessed at initial enrollment and reassessed at recertification.
(e) Family fees shall be used by contractors to pay reasonable and necessary costs for providing additional services.
(f) Family fees shall not be based on the cost of care or amount of subsidy payment.
(g) Notwithstanding any other provision of this article, family fees shall not be collected for the 2021–22 fiscal year pursuant to Section 263 of Chapter 116 of the Statutes of 2021.
(h) (1) Notwithstanding any other law, family fees shall not be collected for the 2022–23 fiscal year.
(2) Contractors shall reimburse providers operating within a family childcare home education network for the full amount of the certificate or voucher without deducting family fees.
(i) (1) Notwithstanding any other law, family fees shall not be collected between July 1, 2023, and September 30, 2023, inclusive.
(2) Contractors shall reimburse providers operating within a family childcare home education network for the full amount of the certificate or voucher without deducting family fees.
(j) By no later than January 1, 2027, contractors shall reimburse pay family childcare providers for California state preschool program providers for the full amount of the certificate or voucher services without deducting family fees and shall collect family fees pursuant to this section.
(k) Family fees accrued but uncollected prior to October 1, 2023, may be forgiven and not collected.
(l) (1) A California state preschool program or childcare provider paid with childcare subsidies, including, but not limited to, a family childcare home provider participating in a family childcare home education network, shall not absorb a reduction in pay for the California state preschool program space or voucher on account of a waiver of or reduction in family fees.
(2) The number of California state preschool program contracted spaces and childcare contracted spaces shall not be reduced on account of a reduction in the collection of family fees.
SEC. 15.
Section 1596.866 of the Health and Safety Code is amended to read:1596.866.
(a) (1) In addition to other required training,(2) The health and safety training shall include the following components:
(A) Pediatric first aid.
(B) Pediatric cardiopulmonary resuscitation (CPR).
(C) (i) A preventive health practices course or courses that include instruction in the recognition, management, and prevention of infectious diseases, including immunizations, prevention of childhood injuries, and, for licenses issued on and after July 1, 2020, instruction in the prevention of lead exposure that is consistent with the most recent State Department of Public Health’s training curriculum on childcare lead poisoning prevention.
(ii) For licenses issued on or after January 1, 2016, individuals persons described in paragraph (1) shall have at least one hour of childhood nutrition training as part of the preventive health practices course or courses.
(3) The training may include instruction in sanitary food handling, emergency preparedness and evacuation, and caring for children with special needs.
(4) (A) (i) On and after January 1, 2026, persons described in paragraph (1) shall obtain training in a pediatric first aid or pediatric CPR course that includes instruction in the prevention and treatment of anaphylaxis, including the emergency use of epinephrine auto-injectors, subject to the requirements of Section 1797.197a.
(ii) Persons who, on or before December 31, 2025, have completed a course or courses in pediatric first aid and pediatric CPR that did not include instruction in the prevention and treatment of anaphylaxis, including the emergency use of epinephrine auto-injectors, shall comply with clause (i) for the next renewal period.
(iii) (I) It is the intent of the Legislature that the training required by this section subparagraph will be adopted into the existing training requirements for a child daycare facility and will not require additional hours.
(II) Notwithstanding the provisions in subclause (I) of this clause and clauses (i) and (ii) of this subparagraph, in the event any additional training hours are required by these provisions, reimbursement of a family childcare provider, as defined in Section 10421 of the Welfare and Institutions Code, for any additional training hours shall be determined pursuant to the procedures set forth in Chapter 25 (commencing with Section 10420) of Part 1.8 of Division 9 of the Welfare and Institutions Code.
(B) On and after January 1, 2028, a pediatric first aid and pediatric CPR training course shall include instruction in the prevention and treatment of anaphylaxis, including the emergency use of epinephrine auto-injectors, subject to the requirements of Section 1797.197a.
(b) Beginning January October 1, 2027, persons described in paragraph (1) of subdivision (a) shall complete a minimum of 12 hours of continuing education on an annual basis. Annual training shall be provided by qualified sources to be determined by the department. The courses shall include all of the following topics:
(1) Emergency and disaster preparedness and response planning.
(2) Building and physical premises safety, including identification of and protection from hazards, bodies of water, and vehicular traffic.
(3) Safe sleep practices and prevention of sudden infant death syndrome (SIDS).
(4) Prevention of shaken baby syndrome, abusive head trauma, and child maltreatment.
(5) Transporting children safely.
(6) Infectious diseases in children.
(7) Prevention and response to emergencies due to food and allergic reactions.
(8) Handling and storage of hazardous materials and the appropriate disposal of biocontaminants.
(9) Administration of medication, consistent with parental consent.
(c) (1) The completion of the training required pursuant to this section shall be a condition of licensure.
(2) Training in pediatric first aid and pediatric CPR by persons described in paragraph (1) of subdivision (a) shall be current at all times. Each person described in paragraph (1) of subdivision (a) shall renew their pediatric first aid and pediatric CPR every two years. Training in preventive health practices, as described in subparagraph (C) of paragraph (2) of subdivision (a), is a one-time only requirement for persons described in paragraph (1) of subdivision (a).
(3) A notice of deficiency shall be issued by the department at the time of a site visit to a licensee who is not in compliance with this section. The licensee shall, at the time the notice is issued, develop a plan of correction to correct the deficiency within 90 days of receiving the notice. The facility’s license may be revoked if it fails to correct the deficiency within the 90-day period. Section 1596.890 shall not apply to this paragraph.
(d) Completion of the training required pursuant to this section shall be demonstrated, upon request of the licensing agency, by the following:
(1) Current pediatric first aid and pediatric CPR course completion cards issued by the American Red Cross, the American Heart Association, or by a training program approved by the Emergency Medical Services Authority pursuant to Section 1797.191.
(2) (A) A course completion card for a preventive health practices course or courses, as described in subparagraph (C) of paragraph (2) of subdivision (a), issued by a training program approved by the Emergency Medical Services Authority pursuant to Section 1797.191.
(B) Persons who, before September 21, 1998, have completed a course or courses in preventive health practices, as described in clause (i) of subparagraph (C) of paragraph (2) of subdivision (a), and have a certificate of completion of a course or courses in preventive health practices, or certified copies of transcripts that identify the number of hours and the specific course or courses taken for training in preventive health practices, shall be deemed to have met the training in preventive health practices.
(3) In addition to training programs specified in paragraphs (1) and (2), training programs or courses in pediatric first aid, pediatric CPR, and preventive health practices offered or approved by an accredited college or university are considered approved sources of training that may be used to satisfy the training requirements of paragraph (2) of subdivision (a). Completion of this training shall be demonstrated to the licensing agency by a certificate of course completion, course completion cards, or certified copies of transcripts that identify the number of hours and the specified course or courses taken for the training, as defined in paragraph (2) of subdivision (a).
(4) A course completion card for a continuing education course or courses, as described in subdivision (b).
(e) The training required under subdivision (a) shall not be provided by a home study course. This training may be provided through in-service training, workshops, or classes. This subdivision shall not be interpreted to prohibit approved online courses in pediatric first aid or preventive health practices.
(f) All persons described in paragraph (1) of subdivision (a) and paragraph (2) of subdivision (c) shall maintain current course completion cards for pediatric first aid and pediatric CPR issued by the American Red Cross, the American Heart Association, or by a training program approved by the Emergency Medical Services Authority pursuant to Section 1797.191, or shall have current certification in pediatric first aid and pediatric CPR from an accredited college or university in accordance with paragraph (3) of subdivision (d).
(g) The department shall have the authority to grant exceptions to the requirements imposed by this section in order to meet the requirements of the federal Americans with Disabilities Act of 1990 (42 U.S.C. Sec. 12101 et seq.).
(h) The department shall adopt regulations to implement this section. Notwithstanding the rulemaking provisions of the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code), the department may implement, interpret, or make specific this section by means of written directives, interim licensing standards, or similar instructions from the department until regulations are adopted. These written directives, interim licensing standards, or similar instructions shall have the same force and effect as regulations until regulations are adopted.
(i) This section shall become inoperative on October 1, 2027, and, as of January 1, 2028, is repealed.
SEC. 16.
Section 1596.866 is added to the Health and Safety Code, to read:1596.866.
(a) (1) In addition to other required training, all staff who provide childcare at a daycare center or a family daycare home, each family daycare home licensee, and each substitute adult who provides care in a family daycare home pursuant to Section 1597.63, shall have at least 15 hours of health and safety training, and if applicable, at least 1 additional hour of training pursuant to clause (ii) of subparagraph (C) of paragraph (2).(2) The health and safety training shall include the following components:
(A) Pediatric first aid.
(B) Pediatric cardiopulmonary resuscitation (CPR).
(C) (i) A preventive health practices course or courses that include instruction in the recognition, management, and prevention of infectious diseases, including immunizations, prevention of childhood injuries, and, for licenses issued on and after July 1, 2020, instruction in the prevention of lead exposure that is consistent with the most recent State Department of Public Health’s training curriculum on childcare lead poisoning prevention.
(ii) For licenses issued on or after January 1, 2016, persons described in paragraph (1) shall have at least one hour of childhood nutrition training as part of the preventive health practices course or courses.
(3) The training may include instruction in sanitary food handling, emergency preparedness and evacuation, and caring for children with special needs.
(4) (A) (i) On and after October 1, 2027, persons described in paragraph (1) shall obtain training in a pediatric first aid or pediatric CPR course that includes instruction in the prevention and treatment of anaphylaxis, including the emergency use of epinephrine auto-injectors, subject to the requirements of Section 1797.197a.
(ii) Persons who, on or before September 30, 2027, have completed a course or courses in pediatric first aid and pediatric CPR that did not include instruction in the prevention and treatment of anaphylaxis, including the emergency use of epinephrine auto-injectors, shall comply with clause (i) for the next renewal period.
(iii) (I) It is the intent of the Legislature that the training required by this subparagraph will be adopted into the existing training requirements for a child daycare facility and will not require additional hours.
(II) Notwithstanding the provisions in subclause (I) of this clause and clauses (i) and (ii) of this subparagraph, in the event any additional training hours are required by these provisions, reimbursement of a family childcare provider, as defined in Section 10421 of the Welfare and Institutions Code, for any additional training hours shall be determined pursuant to the procedures set forth in Chapter 25 (commencing with Section 10420) of Part 1.8 of Division 9 of the Welfare and Institutions Code.
(B) On and after January 1, 2028, a pediatric first aid and pediatric CPR training course shall include instruction in the prevention and treatment of anaphylaxis, including the emergency use of epinephrine auto-injectors, subject to the requirements of Section 1797.197a.
(b) Beginning October 1, 2027, persons described in paragraph (1) of subdivision (a) shall complete a minimum of 12 hours of continuing education on an annual basis. Annual training shall be provided by qualified sources to be determined by the department. The courses shall include all of the following topics:
(1) Emergency and disaster preparedness and response planning.
(2) Building and physical premises safety, including identification of and protection from hazards, bodies of water, and vehicular traffic.
(3) Safe sleep practices and prevention of sudden infant death syndrome (SIDS).
(4) Prevention of shaken baby syndrome, abusive head trauma, and child maltreatment.
(5) Transporting children safely.
(6) Infectious diseases in children.
(7) Prevention and response to emergencies due to food and allergic reactions.
(8) Handling and storage of hazardous materials and the appropriate disposal of biocontaminants.
(9) Administration of medication, consistent with parental consent.
(c) (1) The completion of the training required pursuant to this section shall be a condition of licensure.
(2) Training in pediatric first aid and pediatric CPR by persons described in paragraph (1) of subdivision (a) shall be current at all times. Each person described in paragraph (1) of subdivision (a) shall renew their pediatric first aid and pediatric CPR every two years. Training in preventive health practices, as described in subparagraph (C) of paragraph (2) of subdivision (a), is a one-time only requirement for persons described in paragraph (1) of subdivision (a).
(3) A notice of deficiency shall be issued by the department at the time of a site visit to a licensee who is not in compliance with this section. The licensee shall, at the time the notice is issued, develop a plan of correction to correct the deficiency within 90 days of receiving the notice. The facility’s license may be revoked if it fails to correct the deficiency within the 90-day period. Section 1596.890 shall not apply to this paragraph.
(d) Completion of the training required pursuant to this section shall be demonstrated, upon request of the licensing agency, by the following:
(1) Current pediatric first aid and pediatric CPR course completion cards issued by the American Red Cross, the American Heart Association, or by a training program approved by the Emergency Medical Services Authority pursuant to Section 1797.191.
(2) (A) A course completion card for a preventive health practices course or courses, as described in subparagraph (C) of paragraph (2) of subdivision (a), issued by a training program approved by the Emergency Medical Services Authority pursuant to Section 1797.191.
(B) Persons who, before September 21, 1998, have completed a course or courses in preventive health practices, as described in clause (i) of subparagraph (C) of paragraph (2) of subdivision (a), and have a certificate of completion of a course or courses in preventive health practices, or certified copies of transcripts that identify the number of hours and the specific course or courses taken for training in preventive health practices, shall be deemed to have met the training in preventive health practices.
(3) In addition to training programs specified in paragraphs (1) and (2), training programs or courses in pediatric first aid, pediatric CPR, and preventive health practices offered or approved by an accredited college or university are considered approved sources of training that may be used to satisfy the training requirements of paragraph (2) of subdivision (a). Completion of this training shall be demonstrated to the licensing agency by a certificate of course completion, course completion cards, or certified copies of transcripts that identify the number of hours and the specified course or courses taken for the training, as defined in paragraph (2) of subdivision (a).
(4) A course completion card for a continuing education course or courses, as described in subdivision (b).
(e) The training required under subdivision (a) shall not be provided by a home study course. This training may be provided through in-service training, workshops, or classes. This subdivision shall not be interpreted to prohibit approved online courses in pediatric first aid or preventive health practices.
(f) All persons described in paragraph (1) of subdivision (a) and paragraph (2) of subdivision (c) shall maintain current course completion cards for pediatric first aid and pediatric CPR issued by the American Red Cross, the American Heart Association, or by a training program approved by the Emergency Medical Services Authority pursuant to Section 1797.191, or shall have current certification in pediatric first aid and pediatric CPR from an accredited college or university in accordance with paragraph (3) of subdivision (d).
(g) The department shall have the authority to grant exceptions to the requirements imposed by this section in order to meet the requirements of the federal Americans with Disabilities Act of 1990 (42 U.S.C. Sec. 12101 et seq.).
(h) The department shall adopt regulations to implement this section. Notwithstanding the rulemaking provisions of the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code), the department may implement, interpret, or make specific this section by means of written directives, interim licensing standards, or similar instructions from the department until regulations are adopted. These written directives, interim licensing standards, or similar instructions shall have the same force and effect as regulations until regulations are adopted.
(i) This section shall become operative on October 1, 2027.
SEC. 17.
Section 1597.63 of the Health and Safety Code is amended to read:1597.63.
(a)(b) (1) Notwithstanding subdivision (a), when circumstances require a licensee to occasionally be temporarily absent from a family daycare home during its hours of operation, when children in care are present, the licensee shall arrange for a substitute adult to provide care and supervision of the children in care if the family daycare home operates during the temporary absence.
(2) A temporary absence of the licensee shall not exceed 20 percent of the hours that the family daycare home is providing care in any given calendar month. month unless otherwise determined by the department.
(3) The department may waive the requirements of this subdivision on an individual basis if the waiver is reasonable and necessary to carry out this act and not detrimental to the health and safety of any child in care.
(c) Prior to a substitute adult’s initial presence in a family daycare home, a licensee shall ensure the substitute adult does all of the following, and complies with any additional requirements established by the department:
(1) Obtains a criminal record clearance or exemption pursuant to Section 1596.871.
(2) Completes the health and safety training described in Section 1596.866, as demonstrated by a current course completion card in pediatric first aid, pediatric cardiopulmonary resuscitation (CPR), and preventive health practices.
(3) Is immunized against influenza, pertussis, and measles pursuant to Section 1597.622.
(d) A family daycare home shall provide prior written notice to the parent or legal guardian of each child in care regarding any temporary absence of the licensee. If prior notice is impractical based on emergency circumstances, then written notice shall be provided no later than the next business day following the temporary absence.
(e)A family daycare home shall report a temporary absence of the licensee to the department no later than the next business day following the temporary absence. In addition, a written report shall be submitted to the department within seven calendar days of any temporary absence of the licensee. The written report shall include, a minimum, all of the following:
(1)The name of the substitute adult.
(2)The date and time of the temporary absence.
(3)An attestation signed by the licensee indicating whether the requirements of subdivisions (c) and (d) were met.
(f)
(e) A family daycare home shall maintain documentation of compliance with this section and with Sections 1596.866, 1596.871, and 1597.622 regarding a substitute adult.
(g)
(f) Notwithstanding the rulemaking provisions of the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code), the department may implement and administer this section through letters or similar written instructions that shall have the same force and effect as regulations until regulations are adopted.
SEC. 18.
Section 10227.6 of the Welfare and Institutions Code is amended to read:10227.6.
(a) It is the intent of the Legislature to use an alternative methodology, as defined in subdivision (ak) of Section 10213.5, to inform the setting of reimbursement rates for subsidized childcare.(b) Reimbursement rates are subject to agreement and codification by the Legislature.
(c) The department, in collaboration with the State Department of Education, shall develop and conduct an alternative methodology. The department shall begin the process of data collection and analysis pursuant to developing an alternative methodology by July 1, 2023, and consult with the State Department of Education on data collection, analysis, and methodology for preschool programs. The alternative methodology shall build on the recommendations of the working group established pursuant to Section 10280.2 and shall be aligned with the recommendations of the Joint Labor Management Committee established pursuant to subdivision (a) of Section 10280.2.
(d) No later than February 15, 2024, the department, in collaboration with the State Department of Education and the Joint Labor Management Committee established pursuant to subdivision (a) of Section 10280.2, using information from the cost estimation model, shall define elements of the base rate and any enhanced rates to inform the state’s proposed single rate structure and rates. These elements shall be subject to the mandated public engagement state plan process and legislative review. The department shall report to the Senate Health and Human Services budget subcommittees, Assembly and Senate Education budget subcommittees, and the Legislative Analyst’s Office on progress made to conduct an alternative methodology and cost estimate model.
(e) No later than May 15, 2024, the department shall report on the status of the draft Child Care and Development Fund state plan to the Senate Health and Human Services budget subcommittees, Assembly and Senate Education budget subcommittees, and the Legislative Analyst’s Office on the state’s proposed single rate structure to be submitted to the United States Department of Health and Human Services, Administration for Children and Families.
(f) No later than July 1, 2024, the department shall submit necessary information to support use of a single rate structure using the alternative methodology to the United States Department of Health and Human Services, Administration for Children and Families in the Child Care and Development Fund state plan or an amendment to the state plan. The department shall provide a copy of the Child Care and Development Fund state plan or amendment to the state plan submitted to the United States Department of Health and Human Services, Administration for Children and Families to the Senate Health and Human Services budget subcommittees, Assembly and Senate Education budget subcommittees, and the Legislative Analyst’s Office no later than July 10, 2024.
(g) (1) Within 60 days of federal approval of the single rate structure utilizing the alternative methodology in the state plan, the department, in collaboration with the State Department of Education, shall provide the Assembly Committee on Budget, the Senate Committee on Budget and Fiscal Review, and the Legislative Analyst’s Office with a report that outlines the implementation components for the approved single rate structure. For a period of 30 days, the Legislature shall have the opportunity to review and provide feedback regarding draft guidance for implementation of policies. The report shall include all of the following:
(A) The department’s plan to set new reimbursement rates under the alternative methodology by no later than July 1, 2025.
(B) The estimated costs and estimated timelines associated with the implementation components of the approved single rate structure, including, but not limited to, state operations resources, technology and infrastructure changes, and any regulatory or statutory changes necessary to implement the approved single rate structure.
(2) (A) The department shall, from October 1, 2024, to July 1, 2027, 2028, inclusive, provide the Assembly Committee on Budget, the Senate Committee on Budget and Fiscal Review, and the Legislative Analyst’s Office with quarterly updates on the implementation of the new reimbursement rates set under the alternative methodology. The quarterly updates shall include any changes to the information provided in the report described in paragraph (1).
(B) (i) The quarterly report issued in July 2027, pursuant to subparagraph (A) shall consist of the considerations required to add monthly cost of care plus rates made pursuant to Sections 10277.1, 10277.2, and 10277.6 to existing reimbursement rates that are funded within existing childcare and development contracts for alternative payment programs, including, but not limited to, migrant alternative payment programs pursuant to Chapter 3 (commencing with Section 10225), migrant childcare and development programs pursuant to Chapter 6 (commencing with Section 10235), general childcare and development programs pursuant to Chapter 7 (commencing with Section 10240), family childcare home education networks pursuant to Chapter 8 (commencing with Section 10250), childcare and development services for children with special needs pursuant to Chapter 9 (commencing with Section 10260), childcare for recipients of the CalWORKs program pursuant to Chapter 21 (commencing with Section 10370), and the emergency childcare bridge program for foster children pursuant to Section 11461.6.
(ii) Considerations presented by the department pursuant to clause (i) shall include, but not be limited to, all of the following:
(I) Updates to data systems required to add monthly cost of care plus payments to existing contract rates.
(II) Necessary statutory and regulatory changes to add monthly cost of care plus payments to existing contract rates.
(III) Activities needed to be performed by the department and contractors to ensure contractors can pay childcare providers through a contract rate that includes the monthly cost of care plus payments.
(iii) The department shall present, where practicable, an estimated timeframe for each consideration described pursuant to clause (ii).
(h) Beginning October 1, 2025, and through July 1, 2027, inclusive, the department shall update the Legislature not more frequently than quarterly, to the extent information is available or reported to the department by contractors, regarding progress on implementation of prospective payment and paying based on enrollment, in keeping with the goals set for funds appropriated pursuant to Provision 19 of Item 5180-101-0001 of the Budget Act of 2025 and with subparagraph (i) of paragraph (2) of subdivision (m) of Section 98.45 of Subpart E of Part 98 of Subchapter A of Subtitle A of Title 45 of the Code of Federal Regulations. enrollment.
(i) The Governor and the Legislature shall, by no later than July 1, 2025, establish reimbursement rates based on the alternative methodology. Provider reimbursement rates shall not be reduced from the reimbursement rates that were in effect on June 30, 2024, pursuant to Sections 10280 and 10374.5 of this code and Section 8242 of the Education Code, inclusive of the cost of care plus rates established pursuant to subdivision (b) of Section 10277.1 and subdivision (b) of Section 10277.2.
(j) (1) If the new reimbursement rates established pursuant to subdivision(i) do not take effect on July 1, 2025, the department shall provide the Legislature with a timeline for transitioning from the rates that are in effect on July 1, 2025, to the new rates established pursuant to subdivision (i).
(2) Any temporary reimbursement rates established as part of the transition timeline required by paragraph (1) shall be, at minimum, equivalent to the reimbursement rates established pursuant to Sections 10280 and 10374.5 of this code and Section 8242 of the Education Code, inclusive of the cost of care plus rates established pursuant to subdivision (b) of Section 10277.1 and subdivision (b) of Section 10277.2.
(k) The single rate structure shall apply to all programs funded by the State Department of Social Services under Chapter 3 (commencing with Section 10225), Chapter 6 (commencing with Section 10235), Chapter 7 (commencing with Section 10240), Chapter 8 (commencing with Section 10250), Chapter 9 (commencing with Section 10260), Chapter 21 (commencing with Section 10370), and Chapter 2 (commencing with Section 11461.6) of Part 2, and the State Department of Education under Chapter 2 (commencing with Section 8200) of Part 6 of Division 1 of Title 1 of the Education Code.
(l) The department, after collaborating with the State Department of Education, shall identify the remaining foundational policy frameworks of the single rate structure by January 10, 2028.
(l)
(m) (1) Except as required by subdivision (n), it is the intent of the Legislature, beginning July 1, 2025, to cease using a regional market rate survey pursuant to Section 10436, and instead use an alternative methodology, as defined in subdivision (ak) of Section 10213.5, for the purpose of informing the setting of future childcare rates. rates and California state preschool program rates.
(2) It is the intent of the Legislature that:
(A) Reimbursement rates are set pursuant to statute and informed by the alternative methodology, as defined in subdivision (ak) of Section 10213.5.
(B) Under the single rate structure, all programs described in subdivision (k) shall be reimbursed under a unified structure that takes into account a common set of rate elements.
(C) Rate levels shall be informed by the costs associated with meeting health and safety requirements and program requirements.
(D) Base rates shall be administered as a per-child amount, and programs shall be able to claim reimbursement for services they deliver consistent with enhanced rates, if any.
(E) Rates shall vary based on all of the following:
(i) Geography.
(ii) Type of care setting.
(iii) Regulatory and statutory requirements applicable to each type of care setting.
(iv) Time categories.
(v) Child age. age groupings, consisting of all of the following:
(I) Children under two years of age, the care of whom will be reimbursed at the infant rate.
(II) Children who are two years of age, the care of whom will be reimbursed at the toddler rate.
(III) Children who are three years of age to six years of age, inclusive, who are not yet enrolled in first grade, the care of whom will be reimbursed at the preschool rate.
(IV) Children five years of age and older, who are enrolled in first grade or higher, the care of whom will be reimbursed at the schoolage rate.
(F) (i) Enhanced inclusion rates shall be administered as a per-child amount, and programs shall be able to claim reimbursement, consistent with the rules and regulations developed by the department and the State Department of Education, respectively. To receive an enhanced inclusion rate for a child, the family data file shall include documentation of at least one of the following:
(I) A current individualized family service plan.
(II) A current individualized education program.
(III) A current individual program plan.
(IV) An active plan pursuant to Section 504 of the federal Rehabilitation Act of 1973 (29 U.S.C. Sec. 794).
(V) An active incidental medical services plan, as described in Section 1596.802 of the Health and Safety Code.
(ii) The documentation described in clause (i) may be unsigned if the family did not consent to the services, despite the child being deemed eligible.
(3) It is further the intent of the Legislature that the alternative methodology shall be based on a cost study and cost estimation model conducted by the department for the measurement of the costs of care in California for all childcare and preschool programs described in subdivision (k), and shall include, but not be limited to, all of the following costs:
(A) Salaries and wages.
(B) Geography.
(C) Type of care setting.
(D) Regulatory and statutory requirements applicable to each type of care setting.
(E) Time categories, including, but not limited to, non-traditional hours.
(F) Child age.
(G) Cost for delivering inclusion supports.
(m)
(n) Commencing July 1, 2026, rates for all programs described in subdivision (k) shall receive the cost-of-living adjustment granted by the Legislature annually pursuant to Section 42238.15 of the Education Code as a minimum annual rate increase for all subsidized childcare providers.
(n)
(o) If the United States Department of Health and Human Services, Administration for Children and Families does not approve the alternative methodology developed pursuant to this section, the department shall develop and conduct a survey of the market rates for childcare services.
(o)
(p) If the provisions of this section are in conflict with the provisions of a memorandum of understanding reached pursuant to Section 10426, the memorandum of understanding shall be controlling without further legislative action, except that if such provisions of a memorandum of understanding require the expenditure of funds, the provisions shall not become effective unless approved by the Legislature in the annual Budget Act.
SEC. 19.
Notwithstanding any other law, the funds in the following citations are reappropriated for the purposes provided for in those appropriations and shall be available for encumbrance or expenditure until June 30, 2027:Up to $1,000,000 in Schedule (2) of Item 5180-001-0001 of the Budget Act of 2025 (Chs. 4, 5, and 104, Stats. 2025) for activities related to safety and regulation of children’s camps.
SEC. 20.
This act is a bill providing for appropriations related to the Budget Bill within the meaning of subdivision (e) of Section 12 of Article IV of the California Constitution, has been identified as related to the budget in the Budget Bill, and shall take effect immediately.It is the intent of the Legislature to enact statutory changes relating to the Budget Act of 2025.
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