SB 1110: Early learning and care: rates. - California

04/13/26 - Amended Senate → SB1110 · 3 edits

MINOR

The diff primarily reflects a change in document format from a traditional legislative bill layout (with line numbers, page headers, and formal structure) to a web page presentation of the same bill text. The substantive policy content described in the legislative counsel's digest appears unchanged. However, the 'An act to amend' line suggests a possible narrowing of scope by removing Section 8245.5 from the Education Code amendments and Section 10280 from the Welfare and Institutions Code amendments, though the truncated diff makes it difficult to confirm whether those sections were fully dropped or merely renumbered.

Scope change

If confirmed by the full (untruncated) text, the bill's scope would narrow by dropping amendments to Section 8245.5 of the Education Code (which contained the core reimbursement rate changes including the 85 percent enrollment threshold and three-year conditional contract trigger) and Section 10280 of the Welfare and Institutions Code.

TECHNICAL

The bill text was reformatted from a traditional legislative document with line numbers and page headers into a web page layout with navigation elements (skip to content, home, accessibility, FAQ, etc.).

SCOPE

The 'An act to amend' description appears to remove Section 8245.5 of the Education Code from the list of amended sections, which would eliminate the reimbursement rate provisions including the 85 percent enrollment threshold and conditional contract status mechanism. This is indicated by the merged old/new text showing 'Sections 8205 and 8245.5' becoming 'Section 8205.'

The 'An act to amend' description appears to remove Section 10280 from the Welfare and Institutions Code amendments, narrowing the bill's reach into that code. The merged text shows 'Sections 10213.5, 10229, and 10280' becoming '10213.5 and 10229.'

03/25/26 - Amended Senate → 04/13/26 - Amended Senate · 4 edits · Apr 13, 2026

MODERATE

The April 13 amendment narrows the bill's scope by removing amendments to Education Code Section 8245.5 and Welfare and Institutions Code Section 10280. It also relaxes reimbursement cost caps by eliminating the individual 15% limit on direct program and support costs (keeping only the 15% cap on indirect administrative costs and the 25% combined cap), and lowers the enrollment threshold for conditional contract status from 100% to 85% of certified daily enrollment.

SCOPE

The bill no longer amends Section 8245.5 of the Education Code or Section 10280 of the Welfare and Institutions Code, narrowing its reach to only Section 8205 (Education Code) and Sections 10213.5 and 10229 (Welfare and Institutions Code).

FISCAL

The individual 15% cap on direct program and support costs is removed. Only indirect administrative costs are now individually capped at 15% of the maximum reimbursable contract amount. The combined cap of 25% for both cost categories remains unchanged.

REQUIREMENT

The enrollment threshold triggering conditional contract status is lowered from below 100% to below 85% of certified daily enrollment. Contractors will now only face conditional status if they maintain less than 85% enrollment for 3 consecutive years, rather than any shortfall below full enrollment.

DEFINITION

The definition of 'direct program and support costs' is changed from covering 'the alternative payment center-based program' to simply 'the center-based program,' removing the 'alternative payment' qualifier and broadening the scope of covered costs.

02/17/26 - Introduced → 03/25/26 - Amended Senate · 3 edits · Mar 25, 2026

MINOR

The Senate amendment makes three substantive policy changes to SB 1110's early learning reimbursement provisions: it renames 'administrative and support services costs' to 'indirect administrative costs,' narrows the scope of direct program and support costs to specifically center-based programs, and lowers the enrollment threshold that triggers conditional contract status from below 100% to below 85% of certified daily enrollment. The remaining changes are formatting, line renumbering, and digest reorganization.

DEFINITION

The defined term 'administrative and support services costs' is replaced with 'indirect administrative costs' throughout the bill. The underlying definition content (payroll, audits, facilities management, communications, accounts payable, research) remains the same.

SCOPE

The definition of 'direct program and support costs' is narrowed from covering 'the alternative payment program' generally to specifically 'the alternative payment center-based program,' limiting which programs qualify for these cost reimbursements.

ENFORCEMENT

The threshold for placing a California state preschool contractor on conditional contract status is lowered. Previously, if a contractor had not maintained 85% of certified daily enrollment for 3 consecutive years AND continued to have less than 100% of certified daily enrollment, it would be placed on conditional status. Now the second condition is changed to 'less than 85%' instead of 'less than 100%.' This makes it harder to trigger conditional contract status, as a contractor at 90% enrollment for three years would no longer face that consequence.

Early learning and care: rates.

What changed between versions

How they voted

Actions timeline

Sponsors