California 2021-2022 Regular Session Status: Passed Senate 1 R cosponsors

SB 246 — Early childhood education: reimbursement rates.

Last action — From committee: Do pass and re-refer to Com. on APPR. (Ayes 7. Noes 0.) (July 7). Re-referred to Com. on APPR.

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  1. ✓
    Introduced
  2. ✓
    In Committee
  3. 3
    Passed Senate
  4. 4
    Passed Assembly
  5. 5
    To Executive
  6. 6
    Enacted

This bill died with 2021-2022 Regular Session. It reached “Passed Senate” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.

This bill is no longer active — its legislative session has ended, so there is no live prognosis. It would have to be reintroduced in the current session to move again.

Summary

(1) The Child Care and Development Services Act establishes a system of childcare and development services for children up to 13 years of age. Existing law, until July 1, 2021, requires the Superintendent of Public Instruction to implement a plan establishing assigned reimbursement rates to be paid by the state to provider agencies for the provision of those services. Commencing July 1, 2021, existing law transfers specified childcare programs, responsibilities, services, and systems, including those programs and duties described below, from the State Department of Education and the Superintendent to the State Department of Social Services. Existing law requires the Superintendent to implement a plan that establishes reasonable standards and assigned reimbursement rates, which vary with the length of the program year and the hours of service. Existing law requires the reimbursement system to be submitted to the Joint Legislative Budget Committee. This bill would require the State Department of Social Services to implement a reimbursement system plan that establishes reasonable standards and assigned reimbursement rates that would vary with additional factors, including a quality adjustment factor to address the cost of staffing ratios. By November 10, 2022, and annually thereafter, the bill would require the reimbursement system plan, including methodology and standards, to be submitted to the Joint Legislative Budget Committee. The bill would require that plan to include a formula for annually adjusting reimbursement rates. By July 1, 2022, and annually thereafter, the bill would require the department to establish a reimbursement rate target for each contracting agency that meets specific quality standards based on specified elements, including quality adjustment factors for the age range of children proposed to be served by the contracting agency. The bill would also require all providers meeting quality standards, as specified, to be paid the quality adjustment factor, as specified. The bill would require the department, by January 1, 2024, to develop, or hire a contractor to develop, a modernized reimbursement formula based on the components outlined in the state's Master Plan for Early Learning and Care, as specified. The bill would also require the department, by January 1, 2024, to convene a working group to assess the existing quality standards for equity and accessibility to all provider types and settings, and would require the department to develop recommendations to be implemented with the new reimbursement base rate, as specified. The bill would make the above provisions subject to an appropriation by the Legislature. (2) Existing law establishes adjustment factors for a provider agency's reported child days of enrollment in order to reflect the additional expense of serving specified children, including an adjustment factor for infants and toddlers who are 0 to 36 months of age and are served in a child daycare center or family childcare home. As of July 1, 2022, this bill would delete the above-described adjustment factor and would make conforming changes. The bill would add an adjustment factor for children who are served in a county experiencing a county state of emergency, or any county during a statewide state of emergency, based on the enrollment of children in the program, as specified. (3) Existing law requires reimbursement rates to be adjusted by specified reimbursement factors for childcare and development programs, and, for childcare and development providers serving children for less than 4 hours per day, requires the reimbursement factor to be 55% of the standard reimbursement rate. This bill would instead require the above-described reimbursement factor to be 50% of the standard reimbursement rate. The bill would also require a crisis adjustment factor of 150% for childcare and development program providers serving children in a county experiencing a county state of emergency, or any county during a statewide state of emergency, based on the enrollment of children in the program. (4) Existing law requires the cost of childcare services to be governed by regional market rates, and requires the regional market rate ceilings to be established at the 75th percentile of the 2016 regional market rate survey for that region or the regional market rate ceiling that existed in that region on December 31, 2017, whichever is greater. Existing law prohibits reimbursement to license-exempt childcare providers from exceeding 70% of the family childcare home rate. The bill would update the above formula to be based instead on the 2018 regional market rate survey. Subject to an appropriation by the Legislature, for the 2021 calendar year, and for the 2021–22 fiscal year, and annually thereafter, the bill would require the annual regional market ceilings to be established at no less than the 85th percentile of the 2018 regional market rate survey for that region or the regional market rate ceiling that existed in that region on December 31, 2017, whichever is greater. The bill would provide that if there is no appropriation, the existing formula, as updated for 2018, to establish a regional market rate ceiling would apply. Subject to an appropriation by the Legislature, commencing January 1, 2022, and annually thereafter, the bill instead would prohibit reimbursement to license-exempt childcare providers from exceeding 70% of the commensurate rate for both full-time and part-time care. (5) The act requires the State Department of Education to contract with local contracting agencies for alternative payment programs for services provided throughout the state. Existing law requires alternative payment childcare systems to be subject to the rates established in the regional market rate survey of childcare providers for provider payments. Existing law requires the department to contract to conduct and complete a regional market rate survey no more than once every 2 years. This bill would require the department to update the regional market rate survey methodology to include specified factors, including age ranges and hours of service.

Bill Text

Action History

  1. From committee: Do pass and re-refer to Com. on APPR. (Ayes 7. Noes 0.) (July 7). Re-referred to Com. on APPR.

  2. From committee: Do pass and re-refer to Com. on ED. with recommendation: To consent calendar. (Ayes 8. Noes 0.) (June 30). Re-referred to Com. on ED.

  3. Referred to Coms. on HUM. S. and ED.

  4. In Assembly. Read first time. Held at Desk.

  5. Read third time. Passed. (Ayes 39. Noes 0. Page 1343.) Ordered to the Assembly.

  6. Ordered to special consent calendar.

  7. Read second time. Ordered to third reading.

  8. From committee: Do pass. (Ayes 7. Noes 0. Page 1185.) (May 20).

  9. Set for hearing May 20.

  10. May 3 hearing: Placed on APPR suspense file.

  11. Set for hearing May 3.

  12. From committee with author's amendments. Read second time and amended. Re-referred to Com. on APPR.

  13. April 19 hearing postponed by committee.

  14. Set for hearing April 19.

  15. From committee: Do pass and re-refer to Com. on APPR. (Ayes 5. Noes 0. Page 685.) (April 6). Re-referred to Com. on APPR.

  16. Set for hearing April 6.

  17. Read second time and amended. Re-referred to Com. on HUMAN S.

  18. From committee: Do pass as amended and re-refer to Com. on HUMAN S. (Ayes 7. Noes 0. Page 667.) (March 10).

  19. Set for hearing March 10.

  20. From committee with author's amendments. Read second time and amended. Re-referred to Com. on ED.

  21. Joint Rule 55 suspended. (Ayes 32. Noes 4. Page 272.)

  22. (Ayes 32. Noes 4.)

  23. Art. IV. Sec. 8(a) of the Constitution dispensed with.

  24. Referred to Coms. on ED. and HUMAN S.

  25. Read first time.

  26. From printer. May be acted upon on or after February 24.

  27. Introduced. To Com. on RLS. for assignment. To print.

Sponsors

Sponsorship breakdown

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1 sponsors · 1 co-sponsors · 120 not signed on

Sponsors (1)

  • Leyva

Co-sponsors (1)

Not signed on (120)

120 members have not signed on to this bill.

Show all 120 →

"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

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Votes

Do pass and be re-referred to the Committee on [Education] with recommendation: To Consent Calendar

Passed 8 Yea · 0 Nay
Party YeaNayPresentNot Voting
Unaffiliated 2000
Republican 2000
Democratic 4000
Total 8000
% of votes cast 100%0%0%0%
How each member voted (8)
Member Party Vote
Villapudua — Yea
Mark Stone — Yea
Arambula, Joaquin Democratic Yea
Bryan, Isaac G. Democratic Yea
Calderon, Lisa Democratic Yea
Ward, Christopher M. Democratic Yea
Choi, Steven S. Republican Yea
Davies, Laurie Republican Yea

Official roll call →

Special Consent SB246

Passed 39 Yea · 0 Nay · 1 Other
Party YeaNayPresentNot Voting
Democratic 13000
Unaffiliated 22001
Republican 4000
Total 39001
% of votes cast 98%0%0%3%
How each member voted (40)
Member Party Vote
Glazer — Yea
Roth — Yea
Eggman — Yea
Bates — Yea
Gonzalez — Yea
Portantino — Yea
Bradford — Yea
Min — Yea
Hertzberg — Yea
Borgeas — Yea
Skinner — Yea
Wieckowski — Yea
Leyva — Yea
Nielsen — Yea
Wilk — Yea
Atkins — Yea
Newman — Yea
Hueso — Yea
Kamlager — Yea
Pan — Yea
Rubio — Yea
Dodd — Yea
Melendez — Not Voting
Allen, Benjamin Democratic Yea
Archuleta, Bob Democratic Yea
Becker, Josh Democratic Yea
Caballero, Anna M. Democratic Yea
Cortese, Dave Democratic Yea
Durazo, Maria Elena Democratic Yea
Hurtado, Melissa Democratic Yea
Laird, John Democratic Yea
Limón, Monique Democratic Yea
McGuire, Mike Democratic Yea
Stern, Henry I. Democratic Yea
Umberg, Thomas J. Democratic Yea
Wiener, Scott D. Democratic Yea
Dahle, Megan Republican Yea
Grove, Shannon Republican Yea
Jones, Brian W. Republican Yea
Ochoa Bogh, Rosilicie Republican Yea

Official roll call →

Do pass

Passed 7 Yea · 0 Nay
Party YeaNayPresentNot Voting
Unaffiliated 5000
Republican 1000
Democratic 1000
Total 7000
% of votes cast 100%0%0%0%
How each member voted (7)
Member Party Vote
Wieckowski — Yea
Kamlager — Yea
Portantino — Yea
Bradford — Yea
Bates — Yea
Laird, John Democratic Yea
Jones, Brian W. Republican Yea

Official roll call →

Placed on suspense file

Passed 6 Yea · 0 Nay · 1 Other
Party YeaNayPresentNot Voting
Unaffiliated 4001
Republican 1000
Democratic 1000
Total 6001
% of votes cast 86%0%0%14%
How each member voted (7)
Member Party Vote
Portantino — Yea
Bradford — Yea
Wieckowski — Yea
Kamlager — Yea
Bates — Not Voting
Laird, John Democratic Yea
Jones, Brian W. Republican Yea

Official roll call →

Subjects

education
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Frequently asked questions

What does SB 246 do?
(1) The Child Care and Development Services Act establishes a system of childcare and development services for children up to 13 years of age. Existing law, until July 1, 2021, requires the Superintendent of Public Instruction to implement a plan establishing assigned reimbursement rates to be paid by the state to provider agencies for the provision of those services. Commencing July 1, 2021, existing law transfers specified childcare programs, responsibilities, services, and systems, including those programs and duties described below, from the State Department of Education and the Superintendent to the State Department of Social Services. Existing law requires the Superintendent to implement a plan that establishes reasonable standards and assigned reimbursement rates, which vary with the length of the program year and the hours of service. Existing law requires the reimbursement system to be submitted to the Joint Legislative Budget Committee. This bill would require the State Department of Social Services to implement a reimbursement system plan that establishes reasonable standards and assigned reimbursement rates that would vary with additional factors, including a quality adjustment factor to address the cost of staffing ratios. By November 10, 2022, and annually thereafter, the bill would require the reimbursement system plan, including methodology and standards, to be submitted to the Joint Legislative Budget Committee. The bill would require that plan to include a formula for annually adjusting reimbursement rates. By July 1, 2022, and annually thereafter, the bill would require the department to establish a reimbursement rate target for each contracting agency that meets specific quality standards based on specified elements, including quality adjustment factors for the age range of children proposed to be served by the contracting agency. The bill would also require all providers meeting quality standards, as specified, to be paid the quality adjustment factor, as specified. The bill would require the department, by January 1, 2024, to develop, or hire a contractor to develop, a modernized reimbursement formula based on the components outlined in the state's Master Plan for Early Learning and Care, as specified. The bill would also require the department, by January 1, 2024, to convene a working group to assess the existing quality standards for equity and accessibility to all provider types and settings, and would require the department to develop recommendations to be implemented with the new reimbursement base rate, as specified. The bill would make the above provisions subject to an appropriation by the Legislature. (2) Existing law establishes adjustment factors for a provider agency's reported child days of enrollment in order to reflect the additional expense of serving specified children, including an adjustment factor for infants and toddlers who are 0 to 36 months of age and are served in a child daycare center or family childcare home. As of July 1, 2022, this bill would delete the above-described adjustment factor and would make conforming changes. The bill would add an adjustment factor for children who are served in a county experiencing a county state of emergency, or any county during a statewide state of emergency, based on the enrollment of children in the program, as specified. (3) Existing law requires reimbursement rates to be adjusted by specified reimbursement factors for childcare and development programs, and, for childcare and development providers serving children for less than 4 hours per day, requires the reimbursement factor to be 55% of the standard reimbursement rate. This bill would instead require the above-described reimbursement factor to be 50% of the standard reimbursement rate. The bill would also require a crisis adjustment factor of 150% for childcare and development program providers serving children in a county experiencing a county state of emergency, or any county during a statewide state of emergency, based on the enrollment of children in the program. (4) Existing law requires the cost of childcare services to be governed by regional market rates, and requires the regional market rate ceilings to be established at the 75th percentile of the 2016 regional market rate survey for that region or the regional market rate ceiling that existed in that region on December 31, 2017, whichever is greater. Existing law prohibits reimbursement to license-exempt childcare providers from exceeding 70% of the family childcare home rate. The bill would update the above formula to be based instead on the 2018 regional market rate survey. Subject to an appropriation by the Legislature, for the 2021 calendar year, and for the 2021–22 fiscal year, and annually thereafter, the bill would require the annual regional market ceilings to be established at no less than the 85th percentile of the 2018 regional market rate survey for that region or the regional market rate ceiling that existed in that region on December 31, 2017, whichever is greater. The bill would provide that if there is no appropriation, the existing formula, as updated for 2018, to establish a regional market rate ceiling would apply. Subject to an appropriation by the Legislature, commencing January 1, 2022, and annually thereafter, the bill instead would prohibit reimbursement to license-exempt childcare providers from exceeding 70% of the commensurate rate for both full-time and part-time care. (5) The act requires the State Department of Education to contract with local contracting agencies for alternative payment programs for services provided throughout the state. Existing law requires alternative payment childcare systems to be subject to the rates established in the regional market rate survey of childcare providers for provider payments. Existing law requires the department to contract to conduct and complete a regional market rate survey no more than once every 2 years. This bill would require the department to update the regional market rate survey methodology to include specified factors, including age ranges and hours of service.
Who sponsors SB 246?
SB 246 is sponsored by Leyva and Ochoa Bogh, Rosilicie (Republican).
What is the current status of SB 246?
This bill died with 2021-2022 Regular Session. It reached “Passed Senate” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.
Where can I track SB 246?
Track SB 246 free on One Click Politics — get push/email alerts when it moves.

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