text:
(a) The department, in collaboration with the State Department of Education, 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) When establishing standards and assigned reimbursement rates, the department and the State Department of Education shall confer with applicant agencies.

(3) The reimbursement system, including standards and rates, shall be submitted to the Joint Legislative Budget Committee.

(4) The department may establish any regulations deemed advisable concerning conditions of service and hours of enrollment for children in the programs.

(b) Commencing July 1, 2021, the standard reimbursement rate shall be twelve thousand eight hundred eighty-eight dollars ($12,888) and, commencing with the 2022–23 fiscal year, shall be increased by the cost-of-living adjustment granted by the Legislature annually pursuant to Section 42238.15 of the Education Code.

(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.

(2) (A) 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). The department shall have discretion in determining how funding may be used to increase the rates, including, but not limited to, providing one-time lump-sum payments. The department may contract with another entity to distribute this funding to contractors.

(B) Notwithstanding any other law, contracts or grants awarded pursuant to this subparagraph shall be exempt from the personal services contracting requirements of Article 4 (commencing with Section 19130) of Chapter 5 of Part 2 of Division 5 of Title 2 of the Government Code, the Public Contract Code, and the State Contracting Manual and shall not be subject to review or approval of the Department of General Services.

(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 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) Notwithstanding subdivision (b), for the 2023–24, 2024–25, and 2025–26 fiscal years, the cost-of-living adjustments required pursuant to subdivision (b) shall instead be zero. It is the intent of the Legislature that any adjustment in the 2023–24 and 2024–25 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.

(e) Notwithstanding any other law, childcare and development programs shall not receive a cost-of-living adjustment in the 2026–27 fiscal year except for childcare resource and referral programs (Chapter 2 (commencing with Section 10217)) and local childcare and development planning councils (Chapter 31 (commencing with Section 10480)), which shall receive a 2.009-percent cost-of-living adjustment.

(f) Commencing July 1, 2025, and through June 30, 2026, if a program is open and operating in accordance with its approved program calendar and remains open and providing services to certified children throughout the program year, the contract reimbursement shall be based on the lesser of the following:

(1) The maximum reimbursable amount stated in the contract.

(2) Net reimbursable program costs.

(g) Commencing July 1, 2026, contract reimbursement shall be based on the lesser of the following:

(1) The maximum reimbursable amount stated in the contract.

(2) Net reimbursable program costs.

(3) The product of the adjusted child days of enrollment for certified children times the contract rate set forth in this section.

(h) Commencing July 1, 2025, and through June 30, 2026, reimbursement for family childcare home education network providers funded through 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), or childcare and development services for children with special needs pursuant to Chapter 9 (commencing with Section 10260) shall receive 100 percent of reimbursement based on the family’s certified need for services at the maximum authorized hours of care less any allowable administrative expenses withheld by the contractor.

(i) If subdivision(h) is in conflict with a memorandum of understanding reached pursuant to Section 10426, the memorandum of understanding shall be controlling without further legislative action, except that if the 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.

history: (History: Amended by Stats. 2026, Ch. 25, Sec. 31. (AB 150) Effective June 29, 2026.)

chapter: 11. Reimbursement Rates

path: 9. PUBLIC SOCIAL SERVICES > 11. Reimbursement Rates


kind: section

code: WIC

text:
(a) (1) Consistent with the agreement, dated June 25, 2021, entered into by the Governor and Child Care Providers United - California, the state and Child Care Providers United - California shall establish a Joint Labor Management Committee to develop recommendations for a single reimbursement rate structure that addresses quality standards for equity and accessibility while supporting positive learning and developmental outcomes for children. The State Department of Social Services shall secure a contractor, in consultation with the Joint Labor Management Committee, to assist with the work to be completed pursuant to this subdivision.

(2) The Joint Labor Management Committee shall develop the recommendations described in paragraph (1) and shall present the recommendations to the Department of Finance no later than November 15, 2022, to inform the Governor’s proposed budget for the 2023–24 fiscal year, which will be presented to the Legislature by January 10, 2023.

(3) To aid in these efforts related to rate reform and quality investments, the department may allocate up to twenty million dollars ($20,000,000) of the funds described in subdivision (d) of Provision 5 of Item 6100-149-0890 of the Budget Act of 2021 (Ch. 32, Stats. 2021), as amended by Senate Bill 129 of the 2021–22 Regular Session, for the purposes of this subdivision. Within 30 days of securing a contractor, the department shall notify the Joint Legislative Budget Committee on the scope of work, and, within 60 days after the end of the contract period, shall provide the Joint Legislative Budget Committee with a report of all actual expenditures incurred.

(4) Contracts or grants awarded pursuant to this subdivision shall be exempt from the personal services contracting requirements of Article 4 (commencing with Section 19130) of Chapter 5 of Part 2 of Division 5 of Title 2 of the Government Code. Contracts or grants awarded pursuant to this subdivision shall be exempt from the Public Contract Code and the State Contracting Manual, and shall not be subject to the approval of the Department of General Services.

(b) (1) The State Department of Social Services shall, in consultation with the State Department of Education, convene a working group separate from the Joint Labor Management Committee established pursuant to subdivision (a) to assess the methodology for establishing reimbursement rates and the existing quality standards for child care and development and preschool programs, including, but not limited to, licensing standards and the requirements in Subchapter 12 (commencing with Section 18270) of Chapter 19 of Division 1 of Title 5 of the California Code of Regulations, as that subchapter read on June 30, 2021, for equity and accessibility to all provider types and settings. This assessment shall be informed by evidence-based elements that best support child development and positive child outcomes. The workgroup shall include, but not be limited to, Child Care Providers United - California to represent family child care providers, as defined in paragraph (1) of subdivision (b) of Section 10421, teacher and administrator representatives of state-funded center-based contractors for both preschool and infant-toddler settings, child development experts, parent representatives, a Head Start representative, an alternative payment program agency representative, and representatives from the administration, as determined necessary by the department.

(2) The assessment and any recommendations of the workgroup shall be research-based, account for the diversity of California’s child care and development and early learning system, account for alignment across federal Head Start and state-subsidized programs, and be aligned with the experience and education of the child care workforce, as well as the environmental settings of child care and development programs. The workgroup shall, no later than August 15, 2022, provide recommendations, including, but not limited to, recommendations on how the State Department of Social Services should define child care workforce competencies and how these competencies would align with rate reform, to the Joint Labor Management Committee established pursuant to subdivision (a), the Department of Finance, and the Joint Legislative Budget Committee.

history: (History: Added by Stats. 2021, Ch. 116, Sec. 260. (AB 131) Effective July 23, 2021.)

division: 9. PUBLIC SOCIAL SERVICES


text:
(a) (1) For purposes of this section, “early childhood mental health consultation service” means a service benefiting an infant or toddler who is 0 to 36 months of age, inclusive, and is served in a general childcare and development program pursuant to this chapter, or a child who is 0 to 5 years of age, inclusive, and is served in a family childcare home education network setting funded by a general childcare and development program pursuant to this chapter.

(2) For purposes of this section, “early childhood mental health consultation service” includes, but is not limited to, all of the following:

(A) Support for providers, parents, legal guardians, and caregivers to create proactive trauma-informed, inclusive environments and to respond effectively to all children.

(B) Assistance through individual site consultations, provision of resources, formulation of training plans, referrals, and other methods that address the unique needs of programs and providers.

(C) Aid to providers, parents, legal guardians, and caregivers, and encouragement and facilitation of collaboration and communication, in developing the skills and tools needed to be successful as they support the development and early learning of all children, including observing environments, facilitating the development of action plans, and supporting site implementation of those plans.

(D) The development of strategies for addressing prevalent child mental health concerns, including internalizing problems, such as appearing withdrawn, and externalizing problems, such as exhibiting persistent and serious behaviors.

(E) If a child exhibits persistent and serious behaviors, support with the pursuit and documentation of reasonable steps to maintain the child’s safe participation in the program, as described in Section 10491.1.

(F) Face-to-face interactions or video-based platforms and other modes of communication that are compliant with the federal Health Insurance Portability and Accountability Act (Public Law 104-191), such as the telephone.

(G) Group or individual consultations of any of the actions described in this paragraph.

(b) The cost to a provider agency of providing an early childhood mental health consultation service shall be reimbursable pursuant to Section 10281.5 if all of the following apply:

(1) The early childhood mental health consultation service is provided on a schedule of sufficient and consistent frequency, continuously throughout the program year, to significantly contribute to all of the following:

(A) Improving interpersonal relationships and child outcomes.

(B) Increasing the confidence, competence, and well-being of those consulted.

(C) Eliminating suspensions and expulsions.

(2) (A) The early childhood mental health consultation service is provided by one of the following persons:

(i) A licensed mental health professional, including a marriage and family therapist, a licensed clinical social worker, a licensed professional clinical counselor, a licensed psychologist, a licensed child and adolescent psychiatrist, a credentialed school counselor, or a school psychologist credentialed pursuant to Section 44266, and employed pursuant to Section 49400, of the Education Code. The person described in this subparagraph shall have at least three years of experience providing mental health services to children zero to five years of age, inclusive, shall have training in infant, family, and early childhood mental health, shall be adequately insured, shall have held their respective license for a minimum of two years, and shall be in full compliance with all continuing education requirements applicable to their profession.

(ii) A license-eligible marriage and family therapist, a license-eligible clinical social worker, a license-eligible professional clinical counselor, a license-eligible psychologist, or a license-eligible child and adolescent psychiatrist, who is supervised by a person meeting all of the requirements described in clause (i).

(iii) A person holding, at a minimum, a master’s degree in a field related to mental health or human services, including, but not limited to, marriage and family therapy, clinical social work, professional clinical counseling, infant mental health, human development, human services, psychology, school psychology, child and adolescent psychiatry or occupational therapy, education, social work, and other related fields, as determined by the department, and who has at least two years of experience working with children zero to five years of age, inclusive, who is supervised by a person meeting all of the requirements described in clause (i).

(iv) A person meeting all of the requirements described in clause (i) who is providing supervision pursuant to clause (ii) may be an employee of a contracting agency, including on a temporary or part-time basis, or engaged as an external contractor, provided that supervision takes place on a regular basis that is sufficient to offer professional guidance and support.

(B) Any person providing mental health consultation services pursuant to this section shall have a successful criminal background check.

(3) The early childhood mental health consultation service uses a relationship-based model emphasizing strengthening relationships among early childhood education providers, parents, children, and representatives of community systems and resources, and integrates reflective practice into the onsite consultation model. This model shall include, but not be limited to, all of the following:

(A) At least twice per program year, conducting early care- and education setting-based mental health assessments, such as the “Climate of Healthy Interactions for Learning & Development (CHILD)” or other appropriate instrument.

(B) Recordkeeping that adequately documents all consultation activities.

(C) With consent from parents or legal guardians, at least one screening of each enrolled child for adverse childhood experiences and screening for buffering factors, including, but not limited to, resilience.

(4) Within the first 30 days upon hire or start of consultation service, a provider agency ensures that a consultant is trained in all of the following:

(A) California law and professional ethics for early childhood mental health consultation, including all of the following:

(i) Contemporary professional ethics and statutory, regulatory, and decisional laws that delineate the scope of practice of early childhood mental health consultation.

(ii) The therapeutic, clinical, and practical considerations involved in the legal and ethical practice of early childhood mental health consultation.

(iii) Confidentiality, particularly as it pertains to minors.

(B) Child abuse and neglect mandated reporting laws.

(C) Best practices and foundations of early childhood mental health consultation.

(D) All relevant laws and regulations regarding state and federal childcare programs.

(5) Consultants and supervisors shall participate in continuing professional development and education for at least 18 hours per program year. Topics may include, but are not limited to, infant-family and early childhood mental health, implicit bias and equity, trauma-informed practice, early childhood development, and consultation.

(c) 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), until regulations are filed with the Secretary of State, the State Department of Social Services shall, in consultation with the State Department of Education, on or before December 31, 2023, implement this section through all-county letter or similar instructions until regulations are adopted.

history: (History: Amended by Stats. 2022, Ch. 915, Sec. 6. (AB 2806) Effective January 1, 2023.)


text: Notwithstanding paragraph (1) of subdivision (a) of Section 8243 of the Education Code or paragraph (1) of subdivision (a) of Section 10281 of this code, alternative payment programs and agencies administering CalWORKs Stage 1, Stage 2, or Stage 3 programs, serving children zero to five years of age, inclusive, may utilize funds for administrative and support services to provide early childhood mental health consultation services, if the service meets the requirements of Section 10281.

history: (History: Added by Stats. 2022, Ch. 915, Sec. 7. (AB 2806) Effective January 1, 2023.)


text:
(a) In order to reflect the additional expense of serving children who meet any of the criteria outlined in subdivision (c), the provider agency’s reported child days of enrollment for these children shall be multiplied by the adjustment factors listed below.

(b) The adjustment factors described in subdivision (c) shall apply to those programs for which assigned reimbursement rates are at or below the standard reimbursement rate. In addition, the adjustment factors shall apply to those programs for which assigned reimbursement rates are above the standard reimbursement rate, but the reimbursement rate, as adjusted, shall not exceed the adjusted standard reimbursement rate.

(c) Notwithstanding any other law, commencing January 1, 2019, the adjustment factors shall be as follows:

(1) Prior to January 1, 2022, for infants who are 0 to 18 months of age, inclusive, and are served in a child care center or a family child care home, the adjustment factor shall be 2.44.

(2) Prior to January 1, 2022, for toddlers who are 18 to 36 months of age, inclusive, and are served in a child care center or a family child care home, the adjustment factor shall be 1.8.

(3) For children with exceptional needs who are 0 to 21 years of age, inclusive, the adjustment factor shall be 1.54.

(4) For severely disabled children who are 0 to 21 years of age, inclusive, the adjustment factor shall be 1.93.

(5) Prior to January 1, 2022, for children at risk of neglect, abuse, or exploitation who are 0 to 14 years of age the adjustment factor shall be 1.1.

(6) Prior to January 1, 2022, for dual language learner children who are two years of age through kindergarten age, inclusive, the adjustment factor shall be 1.1.

(7) For infants and toddlers who are 0 to 36 months of age, inclusive, and are served in general child care and development programs, or children who are 0 to 5 years of age, inclusive, and are served in a family child care home education network setting funded by a general child care and development program, where early childhood mental health consultation services are provided, pursuant to Section 10281, the adjustment factor shall be 1.1.

(d) Use of the adjustment factors shall not increase the provider agency’s total annual allocation.

(e) (1) Days of enrollment for children who meet more than one of the criteria outlined in paragraphs (1) to (6), inclusive, of subdivision (c) shall not be reported under more than one of the categories specified in those paragraphs.

(2) Notwithstanding paragraph (1), for children for whom an adjustment factor is applied pursuant to any of paragraphs (1) to (6), inclusive, of subdivision (c), and who are additionally eligible for the adjustment factor established in paragraph (7) of subdivision (c), reported child days of enrollment shall be multiplied by the sum of the applicable adjustment factor under paragraphs (1) to (6), inclusive, of subdivision (c) and 0.05.

(f) The difference between the reimbursement resulting from the use of the adjustment factors outlined in subdivision (c) and the reimbursement that would otherwise be received by a provider in the absence of the adjustment factors shall be used for special and appropriate services for each child for whom an adjustment factor is claimed.

history: (History: Amended by Stats. 2022, Ch. 571, Sec. 48. (AB 185) Effective September 27, 2022.)


text:
(a) Notwithstanding the provisions of Section 10280, the assigned reimbursement rate of a center-based child care agency (a) contracting with the department, (b) operating under licensing standards for child care and development facilities specified by Section 1500 et seq. of the Health and Safety Code and by Title 22 of the California Administrative Code, and (c) with less than a majority of subsidized children enrolled in the facility, shall be equivalent to the fee paid for the same service by families of nonsubsidized children.

(b) It is not the intent of the Legislature to preclude an agency with a contract with the department from adjusting the fees charged to nonsubsidized children during the contract year. In no event shall the assigned reimbursement rate exceed the standard reimbursement rate established pursuant to Section 10280.

(c) These agencies shall provide documentation to the department that subsidized children, as necessary and appropriate, shall receive supportive services through county welfare departments, resource and referral programs, or other existing community resources, or all of them.


text:
(a) Commencing with the 1995–96 fiscal year and each fiscal year thereafter, for purposes of this part, reimbursement rates shall be adjusted by the following reimbursement factors for child care and development programs with a standard reimbursement rate, but shall not apply to the resource and referral programs set forth in Chapter 2 (commencing with Section 10217), the alternative payment programs set forth in Chapter 3 (commencing with Section 10225), or the schoolage parent and infant development programs:

(1) Prior to January 1, 2022, for child care and development providers serving children for less than four hours per day, the reimbursement factor is 55 percent of the standard reimbursement rate.

(2) Prior to January 1, 2022, for child care and development program providers serving children for not less than four hours per day, and less than six and one-half hours per day, the reimbursement factor is 75 percent of the standard reimbursement rate. For providers operating under Chapter 21 (commencing with Section 10370) and serving children for not less than four hours per day, and less than seven hours per day, the reimbursement factor is 75 percent of the standard reimbursement rate.

(3) Prior to January 1, 2022, for child care and development program providers serving children for not less than six and one-half hours per day, and less than 10 and one-half hours per day, the reimbursement factor is 100 percent of the standard reimbursement rate. For child care and development providers operating under Chapter 21 (commencing with Section 10370) and serving children for not less than seven hours per day, and less than 10 hours per day, the reimbursement factor is 100 percent of the standard reimbursement rate.

(4) For child care and development program providers serving children for 10 and one-half hours or more per day, the reimbursement factor is 118 percent of the standard reimbursement rate.

(b) It is the intent of the Legislature, notwithstanding the difference between the standard reimbursement rate and the regional market rate, to support serving children for the length of day that is appropriate under a provider’s contract.


text:
(a) Notwithstanding the provisions of Section 10280, the payment made to a child care facility (a) with authorization for payments from an alternative payment program or a county welfare department, (b) operating under licensing standards for child day care facilities specified by Sections 1500 et seq. of the Health and Safety Code and by Title 22 of the California Administrative Code, and (c) with less than a majority of subsidized children enrolled in the facility, shall be the same as the fee paid for the same service by families of nonsubsidized children.

(b) Each alternative payment system or county welfare department shall provide documentation that subsidized children, as necessary and appropriate, shall receive supportive services through county welfare departments, resource and referral programs, other existing community resources, or all of them.


text: The audits for those agencies licensed under the provisions of Chapter 3 (commencing with Section 1500) of Division 2 of the Health and Safety Code shall include a sampling of the evidence of fees paid by families of nonsubsidized children, the average daily enrollment of subsidized and nonsubsidized children, the average number of days of service provided to subsidized children, and the services provided to subsidized children pursuant to the terms of the contract.


text: The department and the State Controller shall establish the necessary plans to advance child care funds to contracting agencies.


text: The department shall adopt rules, regulations, and guidelines to facilitate the funding and reimbursement procedures required by this chapter.


text: The department shall support the coordination of resources available to state and local agencies serving children, youth, and their families.


text: In the event that operating agencies are unable to operate due to incomplete renovations authorized by administrating state agencies, or due to circumstances beyond the control of the operating agency, including earthquakes, floods, or fire, such programs shall not be penalized for incurred program expenses nor in subsequent annual budget allocations.


text:
(a) The rules, regulations, and guidelines adopted by the department pursuant to Sections 10267.5 and 10285 shall permit reimbursement for interest paid by contractors on private sector debt financing for the purchase, lease-purchase, repair, or renovation of child care and development facilities owned or leased by contractors providing center-based care.

(b) The department shall adopt regulations requiring contractors to demonstrate that the amount of interest paid in a year on private sector debt financing for the purposes identified in subdivision (a) does not exceed the value obtained by the state in the use of the facilities during the year for the child care and development services program. The regulations shall include, but not be limited to, the following methods of making this demonstration:

(1) Amortization of a loan or lease-purchase contract on a straight-line basis for the purchase price of a portable building, including any transportation charges, installation charges, loan fees, taxes, points or other fees associated with the purchase, over a period of 15 years or more.

(2) Amortization of a loan or lease-purchase contract on a straight-line basis for the purchase price of a permanent building and real estate, including any loan fees, taxes, points or other fees associated with the purchase, over a period of 15 years or more.

(3) Evidence acceptable to the department that loan payments for the purchase of a portable building or permanent building and real estate, including principal and interest, do not exceed the fair market rental cost that the contractor would have paid if the property was not purchased.

(c) Loans or lease-purchase agreements amortized over the number of years designated in subdivision (b), but due in a fewer number of years, shall not be disallowed because of the shorter due date.


text: A center-based child care agency contracting with the department to provide center-based child care services may schedule up to two days of staff training, per contract period, using state reimbursement funding on the topics including procedures for emergencies in child development programs, licensing regulations relating to child development programs, recognition and reporting of suspected abuse of children in child development programs, managing challenging behaviors and preventing expulsion of children, and addressing items on the program’s Quality Rating and Improvement System (QRIS) Quality plan.


text:
(a) The department, in consultation with the State Department of Education, shall establish a fee schedule for families using preschool and childcare and development services pursuant to this part including families receiving services pursuant to paragraph (1) of subdivision (b) of Section 10271. It is the intent of the Legislature that the new fee schedule shall be simple and easy to implement.

(b) The family fee schedule shall retain a single flat monthly fee per family. The schedule shall differentiate between fees for part-time care and full-time care.

(c) Using the most recently approved family fee schedule pursuant to subdivision (e) of Section 10436, families shall be assessed a single flat monthly fee for all state-subsidized services, including California state preschool program services administered by the State Department of Education, based on income, certified family need for full-time or part-time care services, and enrollment, and shall not be based on actual attendance. No recalculation of a family fee shall occur if attendance varies from enrollment unless a change in need for care is assessed, as requested by the parent.

(d) Family fees shall not be based on the cost of care or amount of subsidy payment.

(e) (1) The department shall design the new family fee schedule based on the most recent census data available on state median family income in the past 12 months, adjusted for family size, according to the methodology provided in subdivision (c) of Section 10271.5. The department shall first submit the adjusted fee schedule to the Department of Finance for approval.

(2) Commencing October 1, 2023, both of the following apply:

(A) The revised fees described in paragraph (1) shall not exceed 1 percent of the family’s monthly income.

(B) A family with an adjusted monthly family income below 75 percent of the state median family income shall not be charged or assessed a family fee.

(f) 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 shall not be included in total countable income for purposes of determining the amount of the family fee.

(g) Family fees shall be assessed at initial enrollment and reassessed at update of certification or recertification.

(h) The implementation of this section shall comply with the requirements specified in subdivision (h) of Section 10271.

(i) Notwithstanding any other provision of this chapter, family fees shall not be collected for the 2021–22 fiscal year pursuant to Section 263 of Chapter 116 of the Statutes of 2021.

(j) Notwithstanding any other provision of this chapter, family fees shall not be collected for the 2022–23 fiscal year.

(k) During the 2022–23 fiscal year, contractors shall reimburse subsidized childcare providers for the full amount of the certificate or voucher without deducting family fees.

(l) (1) Notwithstanding any other provision of this chapter, family fees shall not be collected between July 1, 2023, and September 30, 2023, inclusive.

(2) Between July 1, 2023, and September 30, 2023, inclusive, contractors shall reimburse subsidized childcare providers for the full amount of the certificate or voucher without deducting family fees.

(3) Notwithstanding any other law, federal funds that were previously appropriated in Sections 263 and 265 of Chapter 116 of the Statutes of 2021 to expand childcare access slots and provide for family fee waivers and the reimbursement for waived family fees shall be available in the 2023–24 fiscal year in an amount that is equal to the cost to extend family fee waivers between July 1, 2023, and September 30, 2023, inclusive, for all families receiving subsidized childcare services from childcare providers through programs administered by the State Department of Social Services pursuant to 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 Section 11461.6.

(m) (1) No later than January 1, 2027, contractors shall reimburse subsidized childcare providers for the full amount of the certificate or voucher without deducting family fees and shall collect family fees pursuant to this section.

(2) The department shall work with any contractor in need of technical assistance in order to come into compliance with this subdivision.

(n) Family fees accrued but uncollected prior to October 1, 2023, may be forgiven and not collected.

(o) (1) A 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 contracted childcare space or voucher on account of a waiver of or reduction in family fees.

(2) The number of childcare contracted spaces and vouchers shall not be reduced on account of a reduction in the collection of family fees.

(3) Fifty-six million dollars ($56,000,000) is hereby appropriated from the General Fund to the State Department of Social Services in fiscal year 2023–24 to reimburse childcare providers described in paragraph (1) for family fees waived or reduced pursuant to paragraph (2) of subdivision (e).

history: (History: Amended by Stats. 2026, Ch. 25, Sec. 32. (AB 150) Effective June 29, 2026.)

chapter: 12. Family Fees

path: 9. PUBLIC SOCIAL SERVICES > 12. Family Fees


text:
(a) A family that receives services pursuant to paragraph (1) of subdivision (b) of Section 10271 may be exempt from family fees for up to 24 months.

(b) Notwithstanding any other law, a family receiving CalWORKs cash aid shall not be charged a family fee.

history: (History: Amended by Stats. 2025, Ch. 234, Sec. 3. (SB 792) Effective January 1, 2026.)


text:
(a) The family fee schedule shall provide, among other things, that a contractor or provider may require parents to provide diapers. A contractor or provider offering field trips either may include the cost of the field trips within the service rate charged to the parent or may charge parents an additional fee. Federal or state money shall not be used to reimburse parents for the costs of field trips if those costs are charged as an additional fee. A contractor or provider that charges parents an additional fee for field trips shall inform parents, before enrolling the child, that a fee may be charged and that no reimbursement will be available.

(b) A contractor or provider may require parents to provide diapers or charge parents for field trips, subject to all of the following conditions:

(1) The contractor or provider has a written policy adopted by the agency’s governing board that includes parents in the decisionmaking process regarding both of the following:

(A) Whether or not, and how much, to charge for field trip expenses.

(B) Whether or not to require parents to provide diapers.

(2) The contractor or provider does not charge fees in excess of twenty-five dollars ($25) per child in a contract year.

(3) The contractor or provider does not deny participation in a field trip due to a parent’s inability or refusal to pay the fee.

(4) The contractor or provider does not take adverse action against a parent for the parent’s inability or refusal to pay the fee.

(c) A contractor or provider shall establish a payment system that prevents the identification of children based on whether or not a child’s family has paid field trip fees.

(d) The contractor or provider shall report expenses incurred and income received for field trips to the department. Income received shall be reported as restricted income.


text:
(a) The department may reimburse approvable startup costs of child development agencies or facilities in an amount not to exceed 15 percent of the expansion or increase of each agency’s total contract amount. Under no circumstances shall reimbursement for startup costs result in an increase in the agency’s total contract amount. These funds shall be available for all of the following:

(1) The employment and orientation of necessary staff.

(2) The setting up of the program and facility.

(3) The finalization of rental agreements and the making of necessary deposits.

(4) The purchase of a reasonable inventory of materials and supplies.

(5) The purchase of an initial premium for insurance.

(b) Agencies shall submit claims for startup costs with their first quarterly reports.

(c) The Legislature recognizes that allowances for startup costs are necessary for the establishment and stability of new child development programs. Programs initially funded in the 1978–79 fiscal year and 1979–80 fiscal year are included in this section.

chapter: 13. Allocations and Expenditures

path: 9. PUBLIC SOCIAL SERVICES > 13. Allocations and Expenditures


text:
(a) The department and the State Department of Education shall promote full utilization of childcare and development and preschool funds and match available unused funds with identified service needs. The department and the State Department of Education shall attempt to arrange intra-agency adjustments between California state preschool program contracts and general childcare contracts for the same agency and funding allocation. The department and the State Department of Education shall establish timelines for intra-agency contract fund transfers.

(b) The department shall promote full utilization of childcare and development program funds and match available unused funds with identified service needs. Notwithstanding the requirements of Part 2 (commencing with Section 10100) of Division 2 of the Public Contract Code, the department shall arrange interagency adjustments between different contractors with the same type of contract when both agencies mutually agree to a temporary transfer of funds for the balance of the fiscal year. The department shall establish timelines for interagency contract fund transfers.

(c) 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 and the State Department of Education may implement and administer this section through the issuance of guidance or other written directives, which may include, but is not limited to, establishing timelines for submittal of requests to transfer funds.

history: (History: Amended by Stats. 2023, Ch. 41, Sec. 17. (AB 116) Effective July 10, 2023.)


text:
(a) The department shall develop a plan and procedures for the allocation of expansion funding balances resulting from the pro rata allocation of expansion for the partial year operations of new agencies.

(b) A plan shall provide for the distribution of such funds among provider agencies whose enrollments include children with special needs and shall limit provider agencies’ use of these funds to the purchase of department-approved equipment or materials or one-time-only services, or any of them, that will directly benefit the children with special needs.


text:
(a) The Legislature recognizes the shortage of child care and development and preschool facilities which meet state and local health and safety standards, and the lack of other sources of funding for renovations and repairs necessary to upgrade facilities for licensing in order to accommodate major child care and preschool expansion. It is, therefore, the intent of the Legislature that funds be appropriated for the purpose of providing revolving loans with no interest, as provided in Section 10303, to all other types of child care and development and preschool facilities, in order to provide sufficient child care and development and preschool facilities meeting licensing standards to accommodate the level of child care and preschool expansion provided in this chapter.

(b) It is further the intent of the Legislature that funds be appropriated for the state purchase of relocatable child care and development and preschool facilities as provided in Section 10307, for lease to qualifying contracting agencies in geographic areas with no available child care and development or preschool facilities.


text: Unless specifically exempted by the Legislature, the administrative cost for all state-funded child care and development and preschool programs and all federal programs administered by the state shall not exceed 15 percent of the funds provided for those programs. Eighty-five percent of these funds shall be used to provide direct services in accordance with rules and regulations, or contractual funding terms and conditions prescribed by the department.


text:
(a) The department shall establish regulations for the allocation of capital outlay funds provided pursuant to Section 10303 to Section 10304.5, inclusive, to benefit children most needing child care and development or preschool programs. The first priority for all capital outlay shall be given to facilities located in geographic areas with no other available enrollment slots in existing subsidized and nonsubsidized child care and development or preschool facilities. All such capital outlay funding shall be used solely for purposes of renovation and repair of existing buildings.

(b) The department shall establish qualifications for determining the eligibility of contracting agencies and day care homes to apply for capital outlay funds.


text: The department shall establish a revolving loan fund to provide loans to child care and development or preschool contracting agencies for capital outlay not to exceed 2 percent or two thousand dollars ($2,000), whichever is greater, of the agency’s contract amount. These loans shall be available with no interest and shall be used to renovate and repair child care or preschool facilities to meet state and local health and safety standards.


text:
(a) Repayments on loans made pursuant to Section 10303 shall commence within one year after allocation of the loan to the contracting agency. In lieu of payments by the contracting agency, the department shall annually reduce the agency’s contract amount for child care or preschool services by at least the level of normal depreciation allowance on the renovation or repair, calculated by the straight line method of depreciation.

(b) The entire balance of a loan made pursuant to this section shall be payable to the department immediately if the contracting agency ceases operation of services to children subsidized pursuant to this chapter, or if the department fails to renew the agency’s contract, or if 10 years have elapsed from the date of the allocation.

(c) The department shall deposit all revenue derived from loan payments made by contracting agencies, or reductions made by the department in agencies’ contracts in lieu of payments, into the revolving loan fund for allocation to other contracting agencies for capital outlay projects pursuant to this section.


text: The state shall hold a security interest in all renovations and repairs funded pursuant to Section 10303.


text:
(a) For purposes of this section “department” means the Department of Housing and Community Development.

(b) Subject to appropriation in the annual Budget Act, the Child Care and Development Facilities Loan Guaranty Fund and the Child Care and Development Facilities Direct Loan Fund are hereby established in the State Treasury. The State Department of Social Services may transfer state funds appropriated for child care and preschool facilities enhancement and the proceeds derived from any future sales of tax-exempt child care and development and preschool facilities bonds into these funds.

(c) Notwithstanding Section 13340 of the Government Code, all moneys in the Child Care and Development Facilities Loan Guaranty Fund and the Child Care and Development Facilities Direct Loan Fund, including any interest on loans made from the fund, or loan repayments to the fund, are hereby continuously appropriated to the department for carrying out the purposes of this section and Section 10305.5, respectively. Any loan repayment or interest resulting from investment or deposit of moneys in these funds shall be deposited in the applicable fund, notwithstanding Section 16305.7 of the Government Code. Moneys in the funds shall not be subject to transfer to any other fund pursuant to Part 2 (commencing with Section 16300) of Division 4 of Title 2 of the Government Code, except the Surplus Money Investment Fund.

(d) (1) Moneys deposited in the Child Care and Development Facilities Loan Guaranty Fund shall be used for the purpose of guaranteeing private sector loans to sole proprietorships, partnerships, proprietary and nonprofit corporations, and local public agencies for the purchase, development, construction, expansion, or improvement of licensed child care and development and preschool facilities, and for the purpose of administering the guarantees of these loans. The loan guarantees shall be made by the department or by a public or private entity approved by the department, in accordance with the priorities established by the department, as described in Section 10305.5. The full faith and credit of the State of California is not pledged to the Child Care and Development Facilities Loan Guaranty Fund and the state is not liable for loan defaults that exceed the amount of funds deposited with the Child Care and Development Facilities Loan Guaranty Fund.

(2) A loan guarantee made pursuant to this section may not exceed 80 percent of the principal and interest amount of a private sector loan guaranteed by the fund and shall be used only to guarantee a private sector loan for the purchase, development, construction, expansion, or improvement of facilities described in Section 10305.5 and for related equipment and fixtures, but shall not be used primarily to refinance an existing loan or for working capital, supplies, or inventory. A loan guarantee for improvements shall be limited to those improvements necessary, as determined by the department, for any of the following purposes:

(A) To obtain, maintain, renew, expand, or revise a child care license.

(B) To make necessary health and safety improvements.

(C) To make seismic improvements.

(D) To provide access for disabled children.

(E) To expand upon or preserve existing child care and preschool operations.

(3) The aggregate amount of outstanding loan guarantees shall not exceed four times the amount in the Child Care and Development Facilities Loan Guaranty Fund.

(4) A loan guarantee made pursuant to this section shall be for the term of the loan or 20 years, whichever is less. Security for the guaranteed loan may include a deed of trust, personal guarantees of shareholders and partners in the case of proprietary borrowers, or other reasonably available collateral. These liens may be subordinated to other liens. Default provisions and other terms shall be reasonable and designed to obtain prompt and full repayment of the guaranteed loan by the borrower. Reasonable loan guarantee fees and points may be charged to applicants and borrowers by any public or private entity approved by the department, as described in regulations adopted by the department.

(5) A loan guarantee made pursuant to this section shall only be granted if the applicant agrees to provide child care or preschool in a facility for a period of 20 years or the term of the guaranteed loan, whichever is less.

(6) A loan guarantee made pursuant to this section terminates 120 days after the lender’s receipt of notice that the recipient has either ceased making payments or providing child care or preschool in the facility for which the loan was made, or both, unless the lender takes action to accelerate the loan. If a family child care provider ceases to operate, but retains its three-year license, the provider shall give notice to the department and the lending institution of its intention to resume offering child care services or preschool services for the term of its license, or shall provide notice of its intention to cease providing child care or preschool services. The Child Care and Development Facilities Loan Guaranty Fund is not liable for a default occurring after the loan guarantee has ended.

(e) (1) Moneys deposited in the Child Care and Development Facilities Direct Loan Fund shall be used for the purpose of making subordinated loans directly or through a public or private entity approved by the department to sole proprietorships, partnerships, proprietary and nonprofit corporations, and local public agencies for the purchase, development, construction, expansion, or improvement of licensed child care and development or preschool facilities, and for the purpose of administering these loans. Loans shall be made in accordance with the priorities established by the department as set forth in Section 10305.5. The full faith and credit of the State of California is not pledged to the Child Care and Development Facilities Direct Loan Fund and the state is not liable for loan defaults that exceed the amount of funds deposited in the Child Care and Development Facilities Direct Loan Fund.

(2) A loan made pursuant to this section may not exceed 75 percent of the total amount of investment for the purchase, development, expansion, or improvement of eligible child care and development or preschool facilities as described in Section 10305.5 and for related equipment and fixtures, but may not be used primarily to refinance an existing loan, for working capital, for supplies, or for inventory. A loan made pursuant to this section may not exceed 20 percent of the total amount of investment if the same facility is also utilizing a loan guarantee pursuant to subdivision (c). Investment for purposes of this paragraph means the total cost paid or incurred by the applicant in constructing, renovating, or acquiring a facility. A loan for improvements shall be limited to those improvements necessary, as determined by the department, for any of the following purposes:

(A) To obtain, maintain, renew, expand, or revise a child care license.

(B) To make necessary health and safety improvements.

(C) To make seismic improvements.

(D) To provide access for disabled children.

(E) To expand upon or preserve existing child care or preschool operations.

(3) The term of a loan made pursuant to this section may not exceed 30 years. Security for the loan may include a deed of trust, personal guarantees of shareholders and partners in the case of proprietary borrowers, or other reasonably available collateral. These liens may be subordinated to other liens. The payment provisions, late charges, and other terms may vary based on the ability of the borrower to repay the loan, but shall be reasonable and designed to obtain prompt and full repayment of the loan by the borrower. A direct loan shall bear simple interest at the rate of 3 percent per annum on the unpaid principal balance. Reasonable loan fees and points may be charged to applicants and borrowers, as described in regulations adopted by the department. The department may permit a loan to be assumed by an otherwise qualified borrower who agrees to continue to provide child care or preschool for the balance of the original term of the loan.

(f) Funds appropriated for the purposes of this section and Section 10305.5 shall be made from funds that are not designated as meeting the state’s minimum funding obligation under Section 8 of Article XVI of the California Constitution.


text:
(a) For purposes of this section “department” means the Department of Housing and Community Development.

(b) The department shall administer the Child Care and Development Facilities Loan Guaranty Fund and the Child Care and Development Facilities Direct Loan Fund. The department may administer the funds directly, through interagency agreements with other state agencies, through contracts with public or private entities, or through any combination thereof. If the department determines that a public or private entity is capable of making child care and development or preschool facilities loans or loan guarantees, the department may delegate the authority to review and approve those loans or guarantees to the public or private entity. The department is authorized to enter into interagency agreements to carry out the purposes of this section and Section 10305 by utilizing the services of small business financial development corporations established pursuant to Chapter 1 (commencing with Section 14000) of Part 5 of Division 3 of the Corporations Code. Toward this end, the department is authorized to transfer funds from the Child Care and Development Facilities Direct Loan Fund to the California Economic Development Grant and Loan Fund established by Section 15327 of the Government Code and to transfer funds from the Child Care and Development Facilities Loan Guaranty Fund to the Small Business Expansion Fund established by Section 14030 of the Corporations Code. Those funds shall be deposited into a Child Care Direct Loan Fund Account and a Child Care Loan Guaranty Fund Account hereby established in the respective funds. Notwithstanding anything to the contrary in Chapter 1 (commencing with Section 15310) of Part 6.7 of Division 3 of Title 2 of the Government Code and Chapter 1 (commencing with Section 14000) of Part 5 of Division 3 of the Corporations Code, the funds in these accounts shall be administered in compliance with the requirements of this section and Section 10305.

(c) Eligible applicants for the loan guaranty program and the direct loan program shall include, but not be limited to, sole proprietorships, partnerships, proprietary and nonprofit corporations, and local public agencies that are responsible for contracting with or providing licensed child care and development services, preschool services, or both. Eligible facilities shall include licensed full-day and part-day child care and development facilities, preschool facilities, and licensed large family child care homes as described in Section 1597.465 of the Health and Safety Code, and licensed small family child care homes as described in Section 1597.44 of the Health and Safety Code.

(d) Loan guarantees and direct loans for family child care homes shall not be made for the purpose of purchasing a home or any real property.

(e) The State Department of Social Services shall provide input regarding program priorities that shall be considered in the funding of applications by the department. These priorities shall include, but are not limited to, the following:

(1) Geographic priorities based on the extent of need for child care and development and preschool supply-building efforts in different parts of the state.

(A) Not less than 30 percent of the loan guarantee and direct loan obligations shall benefit providers located in rural areas, as defined in subparagraph (B). If the amount of qualified applications from rural providers is insufficient to satisfy this requirement, the excess capacity reserved for rural providers may be made available to other qualified applications according to the policies and procedures of the department. The remaining 70 percent of funds shall be available to rural or urban areas and other priorities in accordance with this subdivision.

(B) For purposes of subdivision (a), rural communities are defined by any county with fewer than 400 residents per square mile.

(2) Age priorities based on the extent of need for child care and development or preschool supply-building efforts for children of different age groups.

(3) Income priorities shall include families transitioning to work or other lower income families. For purposes of this section, “lower income” shall have the same meaning as “income eligible” as set forth in Section 10271.5.

(4) Program priorities based on the extent of facilities needs among specific kinds of providers, including those that contract to administer state and federally funded child care and development or preschool programs administered by the State Department of Social Services or the State Department of Education, providers who have lost classrooms due to class size reduction or other state or local initiatives, or providers that need to expand to meet the needs of a child care or preschool initiative for recipients of aid under Chapter 3 (commencing with Section 11200) of Part 3, or any successor program.

(f) The program priorities shall reflect input from representatives of diverse sectors of the child care and development or preschool fields, financial institutions, local planning councils, the Child Development Programs Advisory Committee, and the State Department of Social Services for purposes of identifying communities with high percentages of recipients of aid under Chapter 2 (commencing with Section 11200) of Part 3, or any successor program, who need child care or preschool to meet work requirements. As part of its annual report to the Legislature, required pursuant to Section 50408 of the Health and Safety Code, the department shall assess and report, after consultation with the State Department of Social Services, on the performance, effectiveness, and fiscal standing of the Child Care and Development Facilities Loan Guaranty Fund and the Child Care and Development Facilities Direct Loan Fund. The report shall include information on the number of defaults, the types of facilities in default, and a review of the adequacy of the set-aside for rural areas specified in paragraph (1) of subdivision (e).

(g) The department shall adopt regulations and establish priorities, forms, policies and procedures for implementing and managing the Child Care and Development Facilities Loan Guaranty Fund and the Child Care and Development Facilities Direct Loan Fund and making the loan guarantees and direct loans authorized hereunder consistent with priorities provided by the State Department of Social Services. To the extent feasible, the department shall use applicant fees and points to cover its administrative costs. The department may utilize an amount of money from the Child Care and Development Facilities Loan Guaranty Fund and the Child Care and Development Facilities Direct Loan Fund, as appropriate, for reasonable administrative costs in any given fiscal year. Unless an appropriation for administrative costs is made in the annual Budget Act that exceeds the following limits, administrative expenditures shall not exceed 3 percent of the amount appropriated to each fund in the Budget Act of 1997.

(h) (1) The department shall adopt regulations to efficiently and effectively implement the microenterprise loan program described in this subdivision, including, but not limited to, the following:

(A) Making loans available from the Child Care and Development Facilities Direct Loan Fund to local microenterprise loan funds and other lenders who may relend the funds in appropriate amounts to eligible small family child care home providers described in Section 1597.44 of the Health and Safety Code, large family child care home providers described in Section 1597.465 of the Health and Safety Code, licensed child care and development facilities, and preschool facilities that serve up to 35 children.

(B) Authorizing a specified amount of guarantees of small loans by local microenterprise loan funds and other lenders serving eligible small family child care home providers described in Section 1597.44 of the Health and Safety Code, large family child care home providers described in Section 1597.465 of the Health and Safety Code, licensed child care and development facilities, and preschool facilities that serve up to 35 children.

(2) Notwithstanding anything to the contrary in this section or Section 10305, a loan made pursuant to this subdivision shall not be made for less than five thousand dollars ($5,000) or for more than fifty thousand dollars ($50,000) and shall not be subject to the 75-percent investment restriction contained in paragraph (2) of subdivision (e) of Section 10305.

(i) The department may adopt regulations for the purposes of this section as emergency regulations in accordance with Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code. For the purposes of the Administrative Procedure Act, including Section 11349.6 of the Government Code, the adoption of the regulations shall be deemed to be an emergency and necessary for the immediate preservation of the public peace, health and safety, or general welfare, notwithstanding subdivision (e) of Section 11346.1 of the Government Code. Notwithstanding subdivision (e) of Section 11346.1 of the Government Code, any regulation adopted pursuant to this section shall not remain in effect more than 180 days unless the department complies with all provisions of Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code, as required by subdivision (e) of Section 11346.1 of the Government Code.


text:
The Child Care and Development Facilities Loan Guaranty Fund, the Child Care and Development Facilities Direct Loan Fund, and the Child Care Loan Guaranty Fund Account in the Small Business Expansion Fund are abolished. All moneys remaining in the Child Care and Development Facilities Loan Guaranty Fund, the Child Care and Development Facilities Direct Loan Fund, and the Child Care Loan Guaranty Fund Account in the Small Business Expansion Fund shall revert to the General Fund. The Department of Housing and Community Development shall deposit all subsequent loan repayments to the Treasurer to the credit of the General Fund. The abolishment of the Child Care and Development Facilities Loan Guaranty Fund, the Child Care and Development Facilities Direct Loan Fund, and the Child Care Loan Guaranty Fund Account in the Small Business Expansion Fund does not terminate any of the following rights, obligations, or authorities, or any provision necessary to carry out those rights, obligations, or authorities:

(a) The repayment of loans due and payable to the department or the relevant financial company.

(b) The obligation of the state to pay claims arising from the default of outstanding loans that have been guaranteed.

(c) Payment to lenders for default of any outstanding guaranteed loans secured by those moneys.

(d) The resolution of any cost recovery action.


text:
(a) As used in this section:

(1) “Board” means the State Allocation Board.

(2) “Lessee” means a child care and development or preschool contracting agency to whom the board has leased a relocatable facility pursuant to this section.

(b) The board, with the advice of the department, may do all of the following:

(1) Establish any qualifications that it deems will best serve the purposes of this section for determining the eligibility of child care and development or preschool contracting agencies to lease relocatable facilities under this section.

(2) Establish any procedures and policies in connection with the administration of this section that it deems necessary.

(3) Adopt any rules and regulations for the administration of this section requiring such procedure, forms, and information that it may deem necessary.

(4) Have constructed, furnished, equipped, or otherwise require whatever work is necessary to place relocatable child care and development and preschool facilities where needed.

(5) Own, have maintained, and lease relocatable classrooms to qualifying child care and development and preschool contracting agencies.

(c) The board shall lease relocatable facilities to qualifying child care and development and preschool contracting agencies and shall charge rent of one dollar ($1) per year. The board shall require lessees to undertake all necessary maintenance, repairs, renewal, and replacement to ensure that a project is at all times kept in good repair, working order, and condition. All costs incurred for this purpose shall be borne by the lessee.

(d) The board shall require lessees to insure at their own expense for the benefit of the state, any leased relocatable facility which is the property of the state, against any risks, including liability from the use thereof, in the amounts the board may deem necessary to protect the interest of the state.

(e) The board shall have authority to adopt rules establishing priorities for the acquisition and leasing of facilities to contracting agencies which will most benefit children needing child care and development or preschool programs. The board shall require each lessee to demonstrate that relocatable facilities are utilized solely for operation of child care and development or preschool programs.

(f) No relocatable facilities shall be made available to a contracting agency unless the agency furnishes evidence, satisfactory to the board, that the contracting agency has no other facility available for rental, lease, or purchase in the geographic service area that is economically or otherwise feasible.

(g) The board shall have prepared for its use, performance specifications for relocatable facilities and bids for their construction that can be solicited from more than one responsible bidder. The board shall from time to time solicit bids from, and award to, the lowest responsible competitive bidder, contracts for the construction or purchase of relocatable facilities that have been approved for lease to eligible child care and development or preschool contracting agencies.

(h) If at any time the board determines that a lessee’s need for particular relocatable facilities which were made available to the lessee pursuant to this chapter has ceased, the board may take possession of the relocatable facilities and may lease them to other eligible contracting agencies or, if there is no longer a need for the relocatable facilities, the board may dispose of them to public or private parties in the manner it deems to be in the best interests of the state.

(i) Any revenue which is derived from a lease or other disposition of the relocatable facilities pursuant to this section is continuously appropriated to the board for the purposes of this section to fund the purchase of other relocatable facilities for child care and development or preschool programs.


text:
(a) In the event that a school district elects to discontinue its contract for child development or preschool services, the facilities owned by the school district and constructed through the provisions of the local tax override for child development or preschool purposes shall be made available to the local contractor whose bid is accepted for continuation of the services.

(b) The rent for such facilities shall not exceed the prevailing rental rate for such facilities.


text:
(a) (1) The Child Care Facilities Revolving Fund is hereby established in the State Treasury to provide funding for loans for the renovation, repair, or improvement of an existing building to make the building suitable for licensure for child care and development or preschool services, and for the purchase of new relocatable child care or preschool facilities for lease to local educational agencies and contracting agencies that provide child care and development or preschool services, pursuant to this chapter. The department may transfer state funds appropriated for child care and preschool facilities into this fund for allocation to local educational agencies and contracting agencies, as specified, for the purchase, transportation, and installation of facilities for replacement and expansion of capacity. Local educational agencies and contracting agencies using facilities purchased by the use of these funds shall be charged a leasing fee, either at a fair market value for those facilities or at an amount sufficient to amortize the cost of purchase and relocation, whichever amount is lower, over a 10-year period. Upon full repayment of the purchase and relocation costs, title shall transfer from the State of California to the local educational agency or contracting agency. Loans for renovation or repair shall be repaid within a period that does not exceed 10 years. The department shall deposit all revenue derived from the lease payments or renovation or repair loan repayments into the Child Care Facilities Revolving Fund.

(2) Notwithstanding Section 13340 of the Government Code, all moneys in the fund, including moneys deposited from lease payments or loan repayments, are continuously appropriated, without regard to fiscal years, to the department for expenditure pursuant to this chapter.

(3) Augmentations to the Child Care Facilities Revolving Fund made in the Budget Act of 2014 shall be used for loans for renovation or repair of existing local educational agency facilities to ensure those facilities meet applicable health and safety standards or the purchase of new relocatable child care and preschool facilities for lease to local educational agencies, for the purpose of expanding access to California state preschool program services pursuant to this chapter.

(b) On or before August 1 of each fiscal year, the department shall submit to the Department of Finance and the Legislative Analyst’s Office a report detailing the number of funding requests received and their purpose, the types of agencies that received funding from the Child Care Facilities Revolving Fund, the increased capacity that these facilities generated, a description of the manner in which the facilities are being used, and a projection of the lease payments and loan repayments collected and the funds available for future use.

(c) A local educational agency that provides child care pursuant to the California School Age Families Education Program (Article 7.1 (commencing with Section 54740) of Chapter 9 of Part 29 of Division 4 of Title 2 of the Education Code) is eligible to apply for and receive funding pursuant to this section.

(d) Except as provided in subdivision (b) of former Section 8280 of the Education Code, this section shall become inoperative on January 1, 2020.


text: Each county shall, as a minimum, maintain the level of expenditure for child development services provided by the county during the 1970–71 fiscal year. These funds shall be used exclusively for child development and preschool programs and shall be considered unrestricted funds unless restricted by the county granting the funds.


text:
(a) The Legislature recognizes that child care and preschool programs have made valuable contributions towards ensuring that public assistance recipients will be able to accept and maintain employment or employment-related training. Therefore, it is the intent of the Legislature that the department ensure that counties comply with the requirements of Section 10308.5.

(b) The department shall ensure each county’s compliance with Section 10308.5 by not issuing funds to a local child care contractor within a county until the department has received written certification from that county that the level of expenditure for child care services provided by the county has been maintained at the 1970–71 fiscal year level pursuant to Section 10308.5. Funding provided by a county to a local child care or preschool contractor shall not adversely affect the reimbursement received by the agency from the department pursuant to Sections 10280, 10281.5, and 10282.5.


text: The department shall publish the methodology and data used, including county-specific data if such data is used, for the allocation of all child care funds. The department shall make available to the public within 90 days of an allocation, the accounting information for the allocation. It is the intent of the Legislature to expedite the allocation of funds to the field as quickly as possible. Nothing in this section shall create a requirement for a public hearing on the allocation methodology prior to the issuance of a request for proposal.


text:
(a) The department shall disburse augmentations to the base allocation for the expansion of child care and development programs to promote equal access to child development services across the state.

(b) The department shall use the formula developed pursuant to subdivision (c) and the priorities identified by local child care and development planning councils, unless those priorities do not meet the requirements of state or federal law, as a guide in disbursing augmentations pursuant to subdivision (a).

(c) The department shall develop a formula for prioritizing the disbursement of augmentations pursuant to this section. The formula shall give priority to allocating funds to underserved areas. The formula shall use the definition of “underserved area” in Section 10213.5 and direct impact indicators of need for child care and development services in the county or subcounty areas. For purposes of this section, “subcounty areas” include, but are not limited to, school districts, census tracts, or ZIP Code areas that are deemed by the department to be most appropriate to the type of program receiving an augmentation. Direct impact indicators of need may include, but are not limited to, the teenage pregnancy rate, the unemployment rate, area household income, or the number or percentage of families receiving public assistance, eligible for Medi-Cal, or eligible for free or reduced-price school meals, and any unique characteristics of the population served by the type of program receiving an augmentation.

(d) To promote equal access to services, the department shall include in guidelines developed for use by local planning councils pursuant to subdivision (d) of Section 10486 guidance on identifying underserved areas and populations within counties. This guidance shall include reference to the direct impact indicators of need described in subdivision (c).


text:
The Legislature finds and declares the following:

(a) There is a serious shortage of quality child day care and preschool facilities throughout the state.

(b) It is in the interest of the state’s children and families, and the state’s economic growth, to encourage the expansion of existing child day care and preschool facilities by assisting communities and interested government and private entities to finance child day care and preschool facilities.

(c) In addition to regional resource centers described in Provision 7(d) of Item 6110-196-0001 of the Budget Act of 1999, which focus on developing child care capacity in underserved areas of the state, there is a need to access capital for facilities on a systematic basis, especially to use limited public sector funds to leverage a greater private sector role in financing child day care and preschool facilities. The Legislature finds and declares that a financial intermediary could fill this role and support the regional resource centers and other local entities that work with potential providers by functioning as a centralized repository of training, best practices, and expertise on facilities financing.


text:
(a) The department shall contract with a nonprofit organization to serve as a financial intermediary. The nonprofit organization shall have staff who have expertise in financing and capital expansion, are knowledgeable about the child care and preschool field, and have the ability to develop and implement a plan to increase the availability of financing to renovate, expand, and construct child day care and preschool facilities, both in day care centers and family child care homes.

(b) The financial intermediary selected by the department shall undertake activities designed to increase funds available from the private and public sectors for the financing of child day care and preschool facilities. These activities shall include, but are not limited to, all of the following:

(1) Soliciting capital grants and program-related investments from foundations and corporations.

(2) Building partnerships with foundations and corporations.

(3) Developing lending commitments, linked deposits, and other financing programs with conventional financial institutions.

(4) Coordinating private sources of capital with existing public sector sources of financing for child day care and preschool facilities, including, but not limited to, the Department of Housing and Community Development and the California Infrastructure and Economic Development Bank.

(5) Coordinating financing efforts with the technical assistance provided by the regional resource centers described in Provision 7(d) of Item 6110-196-0001 of the Budget Act of 1999, and other local entities that work with potential providers.

(c) This section shall only be implemented to the extent that funds are appropriated for this purpose in the annual Budget Act.


text:
(a) The Legislature recognizes the importance of providing quality child care and preschool services. It is, therefore, the intent of the Legislature to assist counties in improving the retention of qualified child care and preschool employees who work directly with children who receive state-subsidized child care and preschool services.

(b) It is further the intent of the Legislature, in amending this section during the 2009–10 Regular Session, to address the unique challenges of the County of Los Angeles, in which an estimated 60,000 low-income children receive subsidized child care in nonstate-funded child care settings and an additional 50,000 eligible children are waiting for subsidized services.

(c) (1) Except as provided in paragraph (2), the funds appropriated for the purposes of this section by paragraph (11) of Schedule (b) of Item 6110-196-0001 of Section 2.00 of the Budget Act of 2000 (Chapter 52 of the Statutes of 2000), and that are described in subdivision (i) of Provision 7 of that item, and any other funds appropriated for purposes of this section, shall be allocated to local child care and development planning councils based on the percentage of state-subsidized, center-based child care and preschool funds received in that county, and shall be used to address the retention of qualified child care and preschool employees in state-subsidized child care centers and preschools.

(2) Of the funds identified in paragraph (1), funds qualified pursuant to subparagraphs (A) to (C), inclusive, may also be used to address the retention of qualified persons working in licensed child care and preschool programs that serve a majority of children who receive subsidized child care and preschool services pursuant to this chapter, including, but not limited to, family child care homes as defined in Section 1596.78 of the Health and Safety Code. To qualify for use pursuant to this paragraph, the funds shall meet all of the following requirements:

(A) The funds are allocated for use in the County of Los Angeles.

(B) The funds are appropriated in the annual Budget Act.

(C) The funds are unexpended after addressing the retention of qualified child care and preschool employees in state-subsidized child care centers and family child care home education networks.

(d) The department shall develop guidelines for use by local child care and development planning councils in developing county plans for the expenditure of funds allocated pursuant to this section. These guidelines shall be consistent with the department’s assessment of the current needs of the subsidized child care and preschool workforce, and shall be subject to the approval of the Department of Finance. Any county plan developed pursuant to these guidelines shall be approved by the department prior to the allocation of funds to the local child care and development planning council.

(e) Funds provided to a county for the purposes of this section shall be used in accordance with the plan approved pursuant to subdivision (d). A county with an approved plan may retain up to 1 percent of the county’s total allocation made pursuant to this section for reimbursement of administrative expenses associated with the planning process.

(f) The department shall provide an annual report, no later than April 10 of each year, to the Legislature, the Department of Finance, and the Governor that includes, but is not limited to, a summary of the distribution of the funds by county and a description of the use of the funds.


text:
(a) (1) Subject to subdivision (f), the department is authorized to transfer funding, including funds that are not allocated to contracts or otherwise fully expended, across and within alternative payment programs described in Chapter 3 (commencing with Section 10225) of this part, including, but not limited to, the Migrant Alternative Payment Program.

(2) Subject to subdivision (f), the department is authorized to transfer funding, including funds that are not allocated to contracts or otherwise fully expended, across and within the following programs:

(A) Migrant childcare and development programs described in Chapter 6 (commencing with Section 10235) of this part.

(B) General childcare and development programs described in Chapter 7 (commencing with Section 10240) of this part.

(C) Family childcare home education networks described in Chapter 8 (commencing with Section 10250) of this part.

(D) Childcare and development programs for children with severe disabilities as described in Chapter 9 (commencing with Section 10260) of this part.

(b) The department shall establish criteria for transfers of funding under this section that prioritize the following:

(1) Maintaining funding for subsidized childcare services in the same county or region in which the initial award was issued.

(2) Maintaining funding within the same program type for which the funds were initially issued.

(3) Providing funds to contractors in good standing.

(4) Providing funds to areas outside of the county or region where the initial award was issued if the department determines circumstances warrant the directed funds.

(5) Supporting populations in areas that the department determines would benefit from increased funding opportunities.

(6) Supporting contractors that the department determines have the ability to immediately provide childcare services in response to exigent circumstances.

(c) The department shall review subsidized childcare awards and contracts on an individual basis to determine a contractor’s readiness to serve children pursuant to the initial award. If the department determines that the contractor has not made sufficient progress toward serving children with awarded or allocated funds, the department may partially or fully redirect those funds across and within programs as specified in subdivision (a), subject to subdivision (b).

(d) 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 administer and implement this section, in whole or in part, by means of childcare bulletins or similar instructions from the department until regulations are adopted.

(e) By no later than October 1 of each year, the department shall update the Assembly Committee on Budget, the Senate Budget and Fiscal Review Committee, and the Legislative Analyst’s Office on transfers made pursuant to this section. The update shall include all of the following information:

(1) The amount of funds transferred pursuant to this section during the prior year, disaggregated by program, and the number of slots associated with these funds.

(2) The amount of funds transferred pursuant to this section to another childcare and development program.

(3) The amount of funds transferred pursuant to this section that remained within the same childcare and development program.

(f) (1) This section shall only be implemented to the extent not prohibited by federal law, regulation, and directives.

(2) This section shall only be implemented if, and to the extent to which, the department determines that children served by the programs specified in subdivision (a) may be provided with better service through the redirection of funds across and within those programs.

history: (History: Added by Stats. 2026, Ch. 25, Sec. 33. (AB 150) Effective June 29, 2026.)


text:
(a) The department shall administer the Child Care and Development Infrastructure Grant Program to expand access to child care and development and preschool opportunities for children up to five years of age by providing resources to build new facilities or retrofit, renovate, repair, or expand existing facilities as provided in this section.

(b) (1) The department shall award infrastructure grants on a competitive basis to either of the following:

(A) Child care and development and preschool providers that are not local educational agencies and that are one or more of the following:

(i) A child care center or family child care home serving children through an alternative payment program pursuant to Chapter 3 (commencing with Section 10225).

(ii) A migrant child care and development program serving children pursuant to Chapter 6 (commencing with Section 10235).

(iii) A child care center or family child care home education network serving children through a California state preschool program pursuant to Article 2 (commencing with Section 8207) of Chapter 2 of Part 6 of Division 1 of Title 1 of the Education Code.

(iv) A child care center or family child care home serving children through a general childcare and development program pursuant to Chapter 7 (commencing with Section 10240).

(v) A family child care home education network serving children pursuant to Chapter 8 (commencing with Section 10250).

(vi) Child care and development services for children with special needs pursuant to Chapter 9 (commencing with Section 10260).

(vii) A child care center or family child care home serving children through a CalWORKs Stage 1, Stage 2, or Stage 3 program pursuant to Chapter 21 (commencing with Section 10370).

(viii) A child care center or family child care home serving children through the Emergency Child Care Bridge Program for Foster Children pursuant to Section 11461.6.

(B) Child care and development and preschool providers that are not local educational agencies and that meet two or more of the following:

(i) Have a demonstrated need for expanded access to subsidized child care and development and preschool programs as measured by the ratio of children in state and federally subsidized child care and development and preschool programs to eligible children in the applicant’s service area.

(ii) Are located in low-income communities, as measured by the proportion of children that qualify for state or federal subsidies for child care and development and preschool programs.

(iii) Plan to use grant funding to serve children that qualify for state or federal subsidies for child care and development and preschool programs.

(iv) Serve children from birth to five years of age, inclusive, with exceptional needs in inclusive environments.

(v) Wish to recover lost capacity as a result of a state or federally declared disaster.

(2) The department shall award infrastructure grants for any of the following purposes:

(A) Construction of new child care and development and preschool facilities to increase capacity or recover lost capacity as a result of a state or federally declared disaster.

(B) Renovation, repair, modernization, or retrofitting of existing child care and development and preschool facilities to increase capacity or recover lost capacity as a result of a state or federally declared disaster, or make existing child care and development and preschool facilities more resilient for future natural disasters.

(C) Renovation, repair, modernization, or retrofitting of existing facilities for use as child care and development and preschool facilities.

(D) Renovation, repair, modernization, or retrofitting of existing child care and development and preschool facilities to address needs related to the COVID-19 pandemic and other health and safety or licensure needs.

(c) The department shall award grants to applicants based upon criteria established by the department. The department shall release guidance to the public outlining the criteria for grant awards and the application process.

(d) The department shall give priority for grant funding to both of the following:

(1) Applicants with a demonstrated need for expanded access to subsidized child care and development and preschool programs, as measured by the ratio of children in subsidized child care and development and preschool programs to eligible children in the applicant’s service area.

(2) Applicants who are currently serving subsidized children in programs described in subparagraph (A) of paragraph (1) of subdivision (b) and who are not eligible for federal funding for these purposes.

(e) Infrastructure grants may be used for any of the following:

(1) One-time infrastructure costs, including, but not limited to, universal design facility renovations, retrofitting to meet licensing requirements, the cost of design, engineering, testing, inspections, plan checking, construction management, site acquisition and development, evaluation and response action costs relating to removal of hazardous substances at a new or existing site, demolition, construction, landscaping, or other related costs as determined by the department.

(2) Facility maintenance and improvements, including, but not limited to, maintenance and minor renovations to address concerns related to the COVID-19 pandemic such as nonstructural changes to create space for social distancing, minor remodeling and upgrading of facilities to meet licensing requirements or health and safety standards, or other related costs as determined by the department.

(f) The department shall determine the appropriate grant amount for each grantee, based upon factors that include, but are not limited to, the scope of the project, regional costs, the use of universal design to provide inclusive environments, the need to meet licensing requirements or health and safety standards, and the proportion of children receiving subsidies to be served.

(g) The department shall establish the terms and conditions associated with accepting the infrastructure grant funds awarded pursuant to this section.

(h) The grant program shall offer technical assistance to potential applicants before being awarded a grant, including, but not limited to, project development support and financial expertise, including assistance with coordinating financing from multiple sources.

(i) Infrastructure grant recipients shall commit to providing program data to the department, as specified by the department, and shall participate in overall program evaluation.

(j) The department, with the concurrence of the Department of Finance, may establish an appropriate method, process, and structure for grant management, fiscal accountability, and technical assistance and supports for grantees that ensures transparency and accountability in the use of state funds. The department, at its discretion, may set aside a percentage of the amounts appropriated for the program to contract with one or more community development financial intermediaries, state financial entities, or other community-based organizations for these purposes.

(k) For purposes of this section, “state or federally declared disaster” means counties where child care and development and preschool providers are operating subject to a Presidential declaration of an emergency or major disaster, pursuant to the federal Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. Sec. 5121 et seq.), or a Governor’s Proclamation, on behalf of the impacted local government, as authorized by the powers authorized by the California Emergency Services Act (Chapter 7 (commencing with Section 8550) of Division 1 of Title 2 of the Government Code).

(l) A grantee that receives funds under this section shall supplement, and not supplant, federal, state, and local public funds expended for these purposes.

(m) Notwithstanding subdivision (g) and 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 by means of all-county letters or similar instructions.

(n) This section shall take effect only to the extent that funds are appropriated for this program by the Legislature.

path: 9. PUBLIC SOCIAL SERVICES > 14. Child Care and Development Infrastructure and Workforce Development