California Welfare and Institutions Code § 10374.5

Welfare and Institutions Code
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(a) Recipients of childcare services provided pursuant to this chapter shall be allowed to choose the childcare services of licensed childcare providers or childcare providers who, by law, are not required to be licensed, and the cost of that childcare shall be reimbursed by counties or agencies that contract with the department. For purposes of this section, “regional market rate” means care costing no more than 1.5 market standard deviations above the mean cost of care for that region. It is the intent of the Legislature to reimburse childcare providers at the 85th percentile of the most recent regional market rate survey. If the market rate survey is used to set reimbursement rates, the following shall apply: (b) (1) The regional market rate ceilings shall be established at the greater of either of the following: (A) The 75th percentile of the 2016 regional market rate survey for that region. (B) The regional market rate ceiling that existed in that region on December 31, 2017. (2) Commencing January 1, 2022, the regional market rate ceilings shall be established at the greater of either of the following: (A) The 75th percentile of the 2018 regional market rate survey for that region. (B) The regional market rate ceiling that existed in that region on December 31, 2021. (c) (1) Reimbursement to license-exempt childcare providers shall not exceed 70 percent of the family childcare home rate established pursuant to subdivision (b). (2) Commencing January 1, 2022, license-exempt childcare providers shall be reimbursed at 70 percent of the family childcare home rate established pursuant to subdivision (b), including hourly, daily, weekly, and monthly, for both full- and part-time reimbursement categories. (d) (1) Commencing July 1, 2022, subject to available funding, the department may issue temporary rate increases to licensed childcare providers that exceed the rates specified in paragraph (2) of subdivision (b) and to licensed-exempt childcare providers that exceed the rates specified in paragraph (2) of subdivision (c). 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 childcare providers. (2) 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. (e) (1) 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), childcare providers shall provide information via a one-time application or survey in advance of receiving American Rescue Plan Act funds pursuant to paragraph (2) of subdivision (b) or paragraph (2) of subdivision (c). 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. (2) Rate increases shall be subject to federal usage limitations and federal and state program eligibility requirements. (f) Reimbursement to childcare providers shall not exceed the fee charged to private clients for the same service. (g) Reimbursement shall not be made for c

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