Early childhood education: reimbursement rates.

(1) The Child Care and Development Services Act establishes a system of childcare and development services for children up to 13 years of age, and requires the Superintendent of Public Instruction to implement a plan establishing assigned reimbursement rates, per unit of average daily enrollment, to be paid by the state to provider agencies for the provision of those services. Existing law requires the cost of childcare services to be governed by regional market rates, as provided. Existing law requires the regional market rate ceilings to be established at the 75th percentile of the 2016 regional market survey for that region or the regional market rate ceiling that existed in that region on December 31, 2017, whichever is greater. Existing law requires reimbursement to license-exempt childcare providers to not exceed 70% of the family childcare home rate, as provided. This bill would instead require, until January 1, 2021, the regional market rate ceilings to be established at the 75th, and thereafter, at the 85th, percentile of the 2018 regional market survey for that region or the regional market rate ceiling that existed in that region on December 31, 2017, whichever is greater. The bill would require, on and after January 1, 2021, reimbursement to license-exempt childcare providers to instead not exceed 70% of the commensurate rate for both full-time and part-time care, as provided. The bill would make these provisions subject to an appropriation, as provided. (2) The act requires the department to contract with local contracting agencies for alternative payment programs for services provided throughout the state. Existing law requires alternative payment childcare systems to be subject to the rates established in the regional market rate survey of childcare providers for provider payments. Existing law requires the department to contract to conduct and complete a regional market rate survey no more than once every 2 years, as provided. This bill would require the department to update the regional market rate survey methodology to include specified factors, including age ranges and hours of service, as provided. The bill would require the department to create the Quality Counts California Pilot Reimbursement Program upon an appropriation in the annual Budget Act, intended to allow childcare providers to receive higher reimbursement rates, as provided. The bill would require the department to select up to 5 alternative payment childcare systems to participate in the pilot program, as provided. (3) The bill would make its operation contingent on the enactment of AB 125 of the 2019–20 Regular Session on or before January 1, 2020.