BILL NUMBER: AB 128	AMENDED
	BILL TEXT

	AMENDED IN SENATE  AUGUST 24, 2015

INTRODUCED BY   Committee on Budget (Weber (Chair), Bloom, Bonta,
Campos, Chiu, Cooper, Gordon, Jones-Sawyer, McCarty, Mullin,
Nazarian, O'Donnell, Rodriguez, Thurmond, Ting, and Williams)

                        JANUARY 9, 2015

    An act relating to the Budget Act of 2015.  
An act to amend Sections 8347.2, 8347.4, 70022, 89007.7, and 89282
of, and to repeal Section 8347.6 of, the Education Code,  
and to amend Items 6100-194-0001 and 6100-194-0890 of Section 2.00 of
the Budget Act of 2015, relating to education finance, and making an
appropriation therefor, to take effect immediately, bill related to
the budget. 



	LEGISLATIVE COUNSEL'S DIGEST


   AB 128, as amended, Committee on Budget.  Budget Act of
2015.   Education finance   .  
   (1) The Child Care and Development Services Act has a purpose of
providing a comprehensive, coordinated, and cost-effective system of
child care and development services for children from infancy to 13
years of age and their parents, including a full range of
supervision, health, and support services through full- and part-time
programs. Existing law requires the Superintendent of Public
Instruction to develop standards for the implementation of quality
child care programs. Existing law authorizes the County of San Mateo,
and as a pilot project, to develop an individualized county child
care subsidy plan, as provided. Existing law requires the County of
San Mateo to submit an annual report, until January 1, 2018, to the
Legislature and other specified entities that summarizes the success
of the plan, among other things. Existing law provides for the repeal
of those provisions on January 1, 2019.  
   This bill would authorize the County of San Mateo to implement the
individualized county child care subsidy plan indefinitely and would
make conforming changes. The bill would make legislative findings
and declarations regarding the need for special legislation for the
County of San Mateo.  
   (2) Existing law establishes the Student Aid Commission as the
primary state agency for the administration of state-authorized
student financial aid programs available to students attending all
segments of postsecondary education. The programs administered by the
commission include the Ortiz-Pacheco-Poochigian-Vasconcellos Cal
Grant Program and the Middle Class Scholarship Program.  
   The Middle Class Scholarship Program provides that, subject to an
available and sufficient appropriation, commencing with the 2014-15
academic year, an undergraduate student enrolled at the University of
California or the California State University, and meeting certain
requirements, is eligible for a scholarship award that, combined with
other federal, state, and institutionally administered grants and
fee waivers, is for an amount of up to 40% of the systemwide tuition
and fees. Under existing law, to receive an award under the Middle
Class Scholarship Program, a student is required to have an annual
household income that does not exceed $150,000, satisfy specified
requirements for a Cal Grant award, be a California resident or
exempt from paying nonresident tuition, file specified financial aid
forms, timely apply for publicly funded student financial aid for
which he or she is eligible, maintain at least a 2.0 grade point
average, be pursuing his or her first undergraduate baccalaureate
degree or be enrolled in a specified professional teacher preparation
program, and be enrolled at least part-time.  
   The program provides that a student whose annual income exceeds
$100,000, but does not exceed $150,000, and who otherwise meets the
program requirements, receives a scholarship award that is reduced in
accordance with prescribed calculations.  
   This bill would require the commission, beginning with the 2016-17
academic year, to annually adjust these calculations to reflect
changes in the cost of living, as defined.  
   (3) Existing law establishes the California State University,
under the administration of the Trustees of the California State
University, as one of the segments of public postsecondary education
in this state. Existing law requires, commencing on January 1, 2014,
and no later than July 1 of each even-numbered year, that the
Legislative Analyst's Office, in consultation with the university,
submit a report to the Legislature including specified data relating
to the California State University Early Start Program. Existing law
makes these provisions regarding the Early Start Program inoperative
on July 1, 2018.  
   This bill would instead require the Legislative Analyst's Office
to submit the required report on or before January 1, 2018, rather
than no later than July 1 of each even-numbered year.  
   (4) Existing law authorizes the California State University to
establish a Doctor of Nursing Practice degree pilot program at 3
campuses chosen by the trustees to award the Doctor of Nursing
Practice degree. Existing law requires the university, the
Legislative Analyst's Office, and the Department of Finance to
jointly conduct a statewide evaluation of the degree pilot program
and report the results to the Legislature and the Governor, in
writing, on or before January 1, 2017. Existing law requires that
evaluation to consider specified subjects. These provisions are
repealed on January 1, 2021.  
   This bill would delete the requirement of a joint statewide
evaluation of the Doctor of Nursing Practice degree pilot programs.
The bill would instead require California State University to submit
a report on these programs to the Legislature and Governor on or
before March 1, 2016, considering most of the same subjects, except
that the Legislative Analyst's Office would report to the Legislature
on or before January 1, 2017, on the pilot program's compliance with
the law, and with recommendations for the program. The bill would
require the California State University to provide, by July 1, 2016,
the Legislative Analyst's Office with data deemed necessary by the
office for its report.  
   (5) Existing law establishes the University of California, under
the administration of the Regents of the University of California,
the California State University, under the administration of the
Trustees of the California State University, and the California
Community Colleges, under the administration of the Board of
Governors of the California Community Colleges, as the 3 public
segments of postsecondary education in this state.  
   Existing law establishes the Office of Planning and Research in
the Office of the Governor to serve the Governor and his or her
Cabinet as staff for long-range planning and research.  
   The bill would require the Director of the Office of Planning and
Research, or his or her designee, to administer a study to evaluate
the admissions policies used by the University of California and the
California State University and determine the number of students
eligible for admission to those segments. The bill would require the
office to submit a report summarizing the methodology and findings of
this study to the Legislature and the Governor by December 1, 2016.
The bill would provide that the Director of the Office of Planning
and Research would use $1,000,000 appropriated in a specified statute
for its costs pursuant to this provision.  
   (6) This bill would revise General Fund and federal trust fund
appropriations in the Budget Act of 2015 relating to local assistance
for child care and developmental programs.  
   (7) This bill would declare that it is to take effect immediately
as a bill providing for appropriations related to the Budget Bill.
 
   This bill would express the intent of the Legislature to enact
statutory changes relating to the Budget Act of 2015. 
   Vote: majority. Appropriation:  no   yes
 . Fiscal committee:  no   yes  .
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

   SECTION 1.    Section 8347.2 of the  
Education Code   is amended to read: 
   8347.2.  For purposes of this article, "plan" means an
individualized county child care subsidy plan developed and approved
 under the pilot project   as  described in
Section 8347, which includes all of the following:
   (a) An assessment to identify the county's goal for its subsidized
child care system. The assessment shall examine whether the current
structure of subsidized child care funding adequately supports
working families in the county and whether the county's child care
goals coincide with the state's requirements for funding,
eligibility, priority, and reimbursement. The assessment shall also
identify barriers in the state's child care subsidy system that
inhibit the county from meeting its child care goals. In conducting
the assessment, the county shall consider all of the following:
   (1) The general demographics of families who are in need of child
care, including employment, income, language, ethnic, and family
composition.
   (2) The current supply of available subsidized child care.
   (3) The level of need for various types of subsidized child care
services, including, but not limited to, infant care, after-hours
care, and care for children with exceptional needs.
   (4) The county's self-sufficiency income level.
   (5) Income eligibility levels for subsidized child care.
   (6) Family fees.
   (7) The cost of providing child care.
   (8) The regional market rates, as established by the department,
for different types of child care.
   (9) The standard reimbursement rate or state per diem for centers
operating under contracts with the department.
   (10) Trends in the county's unemployment rate and housing
affordability index.
   (b) (1) Development of a local policy to eliminate state-imposed
regulatory barriers to the county's achievement of its desired
outcomes for subsidized child care.
   (2) The local policy shall do all of the following:
   (A) Prioritize lowest income families first.
   (B) Follow the family fee schedule established pursuant to
 subdivision (g) of Section 8263   Section 8273
 for those families that are income eligible, as defined by
Section 8263.1.
   (C) Meet local goals that are consistent with the state's child
care goals.
   (D) Identify existing policies that would be affected by the
county's plan.
   (E) (i) Authorize any agency that provides child care and
development services in the county through a contract with the
department to apply to the department to amend existing contracts in
order to benefit from the local policy.
   (ii) The department shall approve an application to amend an
existing contract if the plan is modified pursuant to Section 8347.3.

   (iii) The contract of a department contractor who does not elect
to request an amendment to its contract remains operative and
enforceable.
   (3) The local policy may supersede state law concerning child care
subsidy programs with regard only to the following factors:
   (A) Eligibility criteria, including, but not limited to, age,
family size, time limits, income level, inclusion of former and
current CalWORKs participants, and special needs considerations,
except that the local policy  may   shall 
not deny or reduce eligibility of a family that qualifies for child
care pursuant to Section 8353. Under the local policy, a family that
qualifies for child care pursuant to Section 8354 shall be treated
for purposes of eligibility and fees in the same manner as a family
that qualifies for subsidized child care on another basis pursuant to
the local policy.
   (B) Fees, including, but not limited to, family fees, sliding
scale fees, and copayments for those families that are not income
eligible, as defined by Section 8263.1.
   (C) Reimbursement rates.
   (D) Methods of maximizing the efficient use of subsidy funds,
including, but not limited to, multiyear contracting with the
department for center-based child care, and interagency agreements
that allow for flexible and temporary transfer of funds among
agencies.
   (c) Recognition that all funding sources utilized by direct
service contractors that provide child care and development services
in the county are eligible to be included in the county's plan.
   (d) Establishment of measurable outcomes to evaluate the success
of the plan to achieve the county's child care goals, and to overcome
any barriers identified in the state's child care subsidy system.
   SEC. 2.    Section 8347.4 of the   Education
Code   is amended to read: 
   8347.4.  (a) The county shall annually prepare and submit to the
Legislature, the State Department of Social Services, and the
department a report that summarizes the success of the county's plan,
and the county's ability to maximize the use of funds and to improve
and stabilize child care in the county. 
   (b) (1) The requirement for submitting a report imposed under
subdivision (a) is inoperative on January 1, 2018, pursuant to
Section 10231.5 of the Government Code.  
   (2) 
    (b)  A report to be submitted pursuant to subdivision
(a) shall be submitted in compliance with Section 9795 of the
Government Code.
   SEC. 3.    Section 8347.6 of the   Education
Code   is repealed.  
   8347.6.  This article shall become inoperative on July 1, 2018,
and, as of January 1, 2019, is repealed, unless a later enacted
statute, that becomes operative on or before January 1, 2019, deletes
or extends the dates on which it becomes inoperative and is
repealed. 
   SEC. 4.    Section 70022 of the   Education
Code   is amended to read: 
   70022.  (a) (1) Subject to an available and sufficient
appropriation, commencing with the 2014-15 academic year, an
undergraduate student enrolled in the California State University or
the University of California who meets the requirements of paragraph
(2) is eligible for a scholarship award as described in that
paragraph.
   (2) Each academic year, except as provided in paragraphs (3) and
(4), an eligible student shall receive a scholarship award in an
amount that, combined with other federal, state, or institutionally
administered student grants or fee waivers received by an eligible
student, is up to 40 percent of the amount charged to that student in
that academic year for mandatory systemwide tuition and fees, if all
of the following requirements are met, to the satisfaction of the
commission, each academic year:
   (A) The student's annual household income does not exceed one
hundred fifty thousand dollars ($150,000). For awards distributed for
the 2016-17 academic year and subsequent academic years, the
commission shall annually adjust the maximum income level set under
this subparagraph in accordance with the percentage changes in the
cost of living within the meaning of paragraph (1) of subdivision (e)
of Section 8 of Article XIII B of the California Constitution. For
purposes of this article, annual household income shall be calculated
in a manner that is consistent with the requirements applicable to
the Ortiz-Pacheco-Poochigian-Vasconcellos Cal Grant Program (Chapter
1.7 (commencing with Section 69430)) and Section 69506.
   (B) Beginning with awards distributed in the 2015-16 academic
year, the student's household asset level shall not exceed one
hundred fifty thousand dollars ($150,000). For awards distributed in
the 2016-17 academic year and subsequent academic years, the
commission shall annually adjust the maximum household asset level
set under this subparagraph in accordance with the percentage changes
in the cost of living within the meaning of paragraph (1) of
subdivision (e) of Section 8 of Article XIII B of the California
Constitution. For purposes of this article, student's household asset
level shall be calculated in a manner that is consistent with the
requirements applicable to the Ortiz-Pacheco-Poochigian-Vasconcellos
Cal Grant Program (Chapter 1.7 (commencing with Section 69430)) and
Section 69506.
   (C) The student satisfies the eligibility requirements for a Cal
Grant award pursuant to Section 69433.9, except that a student who is
exempt from nonresident tuition under Section 68130.5 shall not be
required to satisfy the requirements of subdivision (a) of Section
69433.9.
   (D) The student is exempt from paying nonresident tuition.
   (E) The student completes and submits a Free Application for
Federal Student Aid (FAFSA) application. The FAFSA must be submitted
or postmarked by no later than March 2. If the student is not able to
complete a FAFSA application, the student may satisfy this
subparagraph by submitting an application determined by the
commission to be equivalent to the FAFSA application for purposes of
this article by March 2.
   (F) The student makes a timely application or applications for all
other federal, state, or institutionally administered grants or fee
waivers for which the student is eligible.
   (G) The student maintains satisfactory academic progress in a
manner that is consistent with the requirements applicable to the
Ortiz-Pacheco-Poochigian-Vasconcellos Cal Grant Program pursuant to
subdivision (m) of Section 69432.7.
   (H) The student is pursuing his or her first undergraduate
baccalaureate degree or has completed a baccalaureate degree and has
been admitted to, and is enrolled in, a program of professional
teacher preparation at an institution approved by the California
Commission on Teacher Credentialing.
   (I) The student is enrolled at least part time.
   (3) (A) The percentage specified in paragraph (2) shall be reduced
by 0.6-percent increments per one thousand dollars ($1,000) of
annual household income in excess of one hundred thousand dollars
($100,000), to a minimum 10 percent of mandatory systemwide tuition
and fees for an academic year, provided that no scholarship award
shall be provided to a student with an annual household income
exceeding one hundred fifty thousand dollars ($150,000). 
Beginning with award calculations for the 2016-17 academic year, and
for subsequent academic years, the commission shall annually adjust
the income levels specified in   this subparagraph by the
percentage change in the cost of living within the meaning of
paragraph (1) of subdivision (e) of Section 8 of Article XIII 
   B of the California Constitution and shall adjust the
incremental reduction accordingly to ensure that a minimum of 10
percent of mandatory systemwide tuition and fees for an academic year
  are awarded.  This reduction shall be in addition to
any reduction required by  subdivision (e) 
 of  Section 70023.
   (B) Notwithstanding subparagraph (A), for any student who
qualifies for a scholarship award of at least one dollar ($1), the
minimum annual scholarship amount for full-time enrollment is ninety
dollars ($90).
   (4) For the 2014-15, 2015-16, and 2016-17 academic years, the
maximum amount of a student's scholarship award shall be 35 percent,
50 percent, and 75 percent, respectively, of the total scholarship
award amount that the student would otherwise be eligible to receive.

   (b) In order for students enrolled in their respective segments to
remain eligible to receive a scholarship award under this article,
the University of California and the California State University
shall not supplant their respective institutional need-based grants
with the funds provided for scholarships under this article, and
shall maintain their funding amounts at a level that, at a minimum,
is equal to the level maintained for undergraduate students during
the 2013-14 academic year.
   (c) The University of California and the California State
University shall report on the implementation of this article as part
of the report made pursuant to Section 66021.1.
   (d) A Middle Class Scholarship Program award authorized pursuant
to this article shall be defined as a full-time equivalent grant. An
award to a part-time student shall be a fraction of a full-time
grant, as determined by the proportionate amount charged for
systemwide tuition and fees. A part-time student shall not be
discriminated against in the selection of Middle Class Scholarship
Program awards. For purposes of this section, "full-time student" and
"part-time student" have the same meaning as specified in
subdivision (f) of Section 69432.7.
   SEC. 5.    Section 89007.7 of the  
Education Code   is amended to read: 
   89007.7.  (a) The Legislature finds and declares that the
California State University Early Start Program was adopted pursuant
to Executive Order No. 1048 at the May 2010 meeting of the Trustees
of the California State University (CSU) with the stated goal of
facilitating a student's graduation through changes in policies on
fulfilling entry-level proficiencies in mathematics and English.
   (b)  Commencing on   On  January 1,
2014, and on or before  July 1 every even-numbered year
thereafter,   January 1, 2018,  the Legislative
Analyst's Office, in consultation with CSU, shall submit a report to
the Legislature detailing the impact of the CSU Early Start Program
on student mathematics and English proficiency. The report to the
Legislature required by this subdivision shall include, but not
necessarily be limited to, all of the following:
   (1) Information on how the CSU Early Start Program increases
successful remediation rates as compared to the remediation rates
that existed in the 2010-11 academic year.
   (2) Information on how the CSU Early Start Program expedites the
student remediation process, or otherwise reduces the length of time
that students spend on remediation.
   (3) Demographic information on participants in the CSU Early Start
Program, including information relating to race or ethnicity,
eligibility for financial aid, geographic origins, and other
pertinent data.
   (4) The number of enrollees in the CSU Early Start Program,
counted statewide and by campus, including the number who eventually
earned credit from the program.
   (5) As observed one year after participating in the CSU Early
Start Program, counted statewide and by campus, how many enrollees
became proficient, how many did not remediate successfully, and how
many were disenrolled from CSU.
   (c) This section shall remain in effect only until July 1, 2018,
and as of that date is repealed, unless a later enacted statute, that
is enacted before January 1, 2019, deletes or extends that date.
   SEC. 6.    Section 89282 of the   Education
Code   is amended to read: 
   89282.  (a) The California State University  (CSU), the
Legislative Analyst's Office, and the Department of Finance 
 (CSU)  shall  jointly conduct a statewide
evaluation of CSU   report on the  Doctor of
Nursing Practice degree pilot programs authorized pursuant to Section
89281 and implemented under this article. The  results of
the evaluation   report  shall be 
reported,   submitted,  in writing, to the
Legislature and the Governor on or before  January 
 March  1,  2017.   2016.  The
 evaluation   report  shall consider all of
the following:
   (1) The number of Doctor of Nursing Practice degree pilot programs
implemented, including information regarding the number of
applicants, admissions, enrollments, degree recipients,
time-to-degree, and attrition.
   (2) The extent to which the post-master's degree pilot programs
are fulfilling identified state needs for training doctorally
prepared nurses.
   (3) Statewide supply and demand data that considers capacity at
the University of California and in California's independent colleges
and universities.
   (4) Information on the place of employment of students and the
subsequent job placement of graduates.
   (5) Any available evidence on the effects that the graduates of
the degree pilot program are having on addressing the state's nursing
shortage.
   (6) Pilot program costs and the fund sources that were used to
finance the program, including a calculation of cost per degree
awarded.
   (7) The costs of the degree pilot program to students, the amount
of financial aid offered, and student debt levels of graduates of the
program. 
   (b) The Legislative Analyst's Office shall submit a report to the
Legislature on or before January 1, 2017, that includes both of the
following:  
   (8) 
    (1)  The extent to which the degree pilot program is in
compliance with the requirements of this article. 
   (9) 
    (2)  Recommendations for the degree pilot program,
including whether the program should be continued or modified. 
   (c) The CSU shall, by July 1, 2016, provide the Legislative
Analyst's Office with data deemed necessary by that office for
fulfilling the requirements of subdivision (b).  
   (b) 
    (d)  (1)  A report to be   The
reports  submitted pursuant to  subdivision 
 subdivisions  (a)  and (b)  shall be submitted in
compliance with Section 9795 of the Government Code.
   (2) This section shall remain in effect only until January 1,
2021, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2021, deletes or extends
that date.
   SEC. 7.    (a) (1) The Director of the Office of
Planning and Research, or his or her designee, shall administer a
study to evaluate the admissions policies used by the University of
California and the California State University and determine the
number of students eligible for admission to each of these
institutions of postsecondary education.  
   (2) The Director of the Office of Planning and Research, or his or
her designee, shall convene a work group that includes, but is not
necessarily limited to, representatives from the University of
California, the California State University, the State Department of
Education, the Department of Finance, and the Legislative Analyst's
Office to consider the overall approach to the study.  
   (b) The study shall report the number of students eligible for
admission to each segment by race, gender, ethnicity, region, and
income, and shall include an analysis of the factors affecting
eligibility for admission to the University of California and the
California State University for each of those groups.  
   (c) The Director of the Office of Planning and Research, or his or
her designee, shall submit a report summarizing the methodology and
findings of the study to the Legislature and the Governor by December
1, 2016. The report shall describe whether the University of
California and the California State University are admitting students
as described in the Master Plan for Higher Education in California.
The report shall also include a discussion of any adjustments the
University of California and the California State University have
made, or plan to make, to admissions policies in response to the
findings of the study.  
   (d) The report to be submitted pursuant to subdivision (c) shall
be submitted in compliance with Section 9795 of the Government Code.
 
   (e) The Director of the Office of Planning and Research, or his or
her designee, shall use the funding appropriated in Section 40 of
Chapter 22 of the Statutes of 2015 for its costs incurred pursuant to
this section.  
   (f) The Director of the Office of Planning and Research, or his or
her designee, may execute contracts to perform the study specified
in this section. Any contracts executed for the study specified in
this section are not subject to the provisions of Article 1
(commencing with Section 10100) of Chapter 1 of Part 2 of Division 2
of the Public Contract Code, or Article 6 (commencing with Section
999) of Chapter 6 of Division 4 of the Military and Veterans Code.

   SEC. 8.    Item 6100-194-0001 of Section 2.00 of the
  Budget Act of 2015   is amended to read: 
6100-194-0001--For local assistance,
State Department of Education, for
allocation by the Superintendent of
Public Instruction to school districts,
county offices of education, and other
agencies for child care and development
programs included in this item, in lieu
of the amount that otherwise would be
appropriated pursuant to any other
statute................................... 941,630,000
    Schedule:
    (1)   5210026-General
          Child Development....  215,098,000 
                                 265,938,000 
    (2)   5210028-Migrant Day
          Care.................  23,881,000
    (3)   5210030-Alternative
          Payment..............  105,873,000 
                                  80,453,000 
    (4)   5210032-Resource and
          Referral.............  18,878,000
    (5)   5210034-CalWORKs
          Stage 2.............. 404,229,000
    (6)   5210036-CalWORKs
          Stage 3..............  142,153,000  

                                 116,733,000 
    (7)   5210038-Accounts
          Payable..............   4,000,000
    (8)   5210040-Child Care
          for Children with
          Severe
          Disabilities.........   1,635,000
    (9)   5210042-California
          Child Care
          Initiative...........     225,000
    (10)  5210044-Quality
          Improvement..........   1,461,000
    (11)  5210046-Local
          Planning Councils....      34,000
    (12)  5210010- Child
          Development, Quality
          Rating Improvement
          System Grants........  24,163,000
    Provisions:
    1.    Funds in Schedules (4), (9),
          (10), and (11) shall be
          allocated to meet federal
          requirements to improve the
          quality of child care and shall
          be used in accordance with the
          approved California state plan
          for the federal Child Care and
          Development Fund that is
          developed pursuant to the
          requirements under Section
          8206.1 of the Education Code.
    2.    Nonfederal funds appropriated in
          this item which have been
          budgeted to meet the state's
          Temporary Assistance for Needy
          Families maintenance-of-effort
          requirement established pursuant
          to the federal Personal
          Responsibility and Work
          Opportunity Reconciliation Act
          of 1996 (P.L. 104-193) may not
          be expended in any way that
          would cause their
          disqualification as a federally
          allowable maintenance-of-effort
          expenditure.
    3.    Notwithstanding any other
          provision of law, funds in
          Schedule (7) are available for
          accounts payable for alternative
          payment programs for actual and
          allowable costs incurred for
          additional services, pursuant to
          Section 8222.1 of the Education
          Code. The State Department of
          Education shall give priority
          for the allocation of these
          funds for accounts payable.
    4.    The amounts provided in
          Schedules (1), (2), (3), and (8)
          of this item reflect an
          adjustment to the base funding
          of 0.37 percent for an increase
          in the population of 0-4 year-
          olds.
    5.    The maximum standard
          reimbursement rate shall not
          exceed     $38.29 per day for
          general child care programs.
          This reflects a 1.02 percent
          cost-of-living adjustment and a
          5 percent rate increase to the
          standard reimbursement rate. The
          maximum standard reimbursement
          rate shall not exceed $38.53 for
          full-day state preschool
          programs. Furthermore, the
          migrant child care program shall
          adhere to the maximum standard
          reimbursement rates as
          prescribed for the general child
          care programs. All other rates
          and adjustment factors shall
          conform.
    6.    (a)     Alternative payment
                  child care programs
                  shall be subject to the
                  rate ceilings
                  established in the
                  Regional Market Rate
                  Survey of California
                  child care and
                  development providers
                  for provider payments.
                  When approved pursuant
                  to Section 8447 of the
                  Education Code, any
                  changes to the market
                  rate limits, adjustment
                  factors, or     regions
                  shall be utilized by the
                  State Department of
                  Education, the
                  California Community
                  Colleges, and the State
                  Department of Social
                  Services in various
                  programs under the
                  jurisdiction of these
                  departments.
          (b)     Until October 1, 2015,
                  the funds appropriated
                  in this item for the
                  cost of licensed child
                  care services provided
                  through alternative
                  payment or voucher
                  programs, including
                  those provided under
                  Article 3 (commencing
                  with Section 8220) and
                  Article 15.5 (commencing
                  with Section 8350) of
                  Chapter 2 of Part 6 of
                  Division 1 of Title 1 of
                  the Education Code,
                  shall be used only to
                  reimburse child care
                  costs up to the
                  deficited 85th
                  percentile of the rates
                  charged by providers
                  offering the same type
                  of child care for the
                  same age child in that
                  region, based on the
                  2009 Regional Market
                  Rate Survey data. The
                  85th percentile of rates
                  based on the 2009
                  Regional Market Rate
                  Survey shall be reduced
                  by 10.11 percent,
                  pursuant to Section 8447

  of the Education Code.
                  If the reduced rate
                  schedule reimbursement
                  amount for a particular
                  county rate is less than
                  the reimbursement amount
                  provided for the same
                  rate prior to January 1,
                  2015, then the State
                  Department of Education
                  shall use the rate
                  schedule from the 2005
                  Regional Market Rate
                  Survey for that
                  particular reimbursement
                  amount. As of October 1,
                  2015, the funds
                  appropriated in this
                  item for the cost of
                  licensed child care
                  services provided
                  through alternative
                  payment or voucher
                  programs, including
                  those provided under
                  Article 3 (commencing
                  with Section 8220) and
                  Article 15.5 (commencing
                  with Section 8350) of
                  Chapter 2 of Part 6 of
                  Division 1 of Title 1 of
                  the Education Code,
                  shall be used only to
                  reimburse child care
                  costs up to 104.5
                  percent of the deficited
                  85th percentile of the
                  rates charged by
                  providers offering the
                  same type of child care
                  for the same age child
                  in that region, based on
                  the 2009 Regional Market
                  Rate Survey data. The
                  85th percentile of rates
                  based on the 2009
                  Regional Market Rate
                  Survey shall be reduced
                  by 10.11 percent,
                  pursuant to Section 8447
                  of the Education Code.
                  If the reduced rate
                  schedule reimbursement
                  amount for a particular
                  county rate is less than
                  the reimbursement amount
                  provided for the same
                  rate prior to January 1,
                  2015, then the State
                  Department of Education
                  shall use 104.5 percent
                  of the rate schedule
                  from the 2005 Regional
                  Market Rate Survey for
                  that particular
                  reimbursement amount
          (c)     Until October 1, 2015,
                  the funds appropriated
                  in this item for the
                  cost of license-exempt
                  child care services
                  provided through
                  alternative payment or
                  voucher programs,
                  including those provided
                  under Article 3
                  (commencing with Section
                  8220) and     Article
                  15.5 (commencing with
                  Section 8350) of Chapter
                  2 of Part 6 of Division
                  1 of Title 1 of the
                  Education Code, shall be
                  used only to reimburse
                  license-exempt child
                  care costs up to 60
                  percent of the regional
                  reimbursement rate
                  limits established for
                  family child care homes.
                  As of October 1, 2015,
                  the funds appropriated
                  in this item for the
                  cost of license-exempt
                  child care services
                  provided through
                  alternative payment or
                  voucher programs,
                  including those provided
                  under Article 3
                  (commencing with Section
                  8220) and Article 15.5
                  (commencing with Section
                  8350) of Chapter 2 of
                  Part 6 of Division 1 of
                  Title 1 of the Education
                  Code, shall be used only
                  to reimburse license-
                  exempt child care costs
                  up to 65 percent of the
                  regional reimbursement
                  rate limits established
                  for family child care
                  homes.
    7.    (a)     The     State Department
                  of Education (SDE) shall
                  conduct monthly analyses
                  of CalWORKs Stage 2 and
                  Stage 3 caseloads and
                  expenditures and adjust
                  agency contract maximum
                  reimbursement amounts
                  and allocations as
                  necessary to ensure
                  funds are distributed
                  proportionally to need.
                  The SDE shall share
                  monthly caseload
                  analyses with the State
                  Department of Social
                  Services (DSS).
          (b)     The SDE shall provide
                  quarterly information
                  regarding the
                  sufficiency of funding
                  for Stage 2 and Stage 3
                  to DSS. The SDE shall
                  provide caseloads,
                  expenditures,
                  allocations, unit costs,
                  family fees, and other
                  key variables and
                  assumptions used in
                  determining the
                  sufficiency of state
                  allocations. Detailed
                  backup by month and on a
                  county-by-county basis
                  shall be provided to the
                  DSS at least on a
                  quarterly basis for
                  comparisons with Stage 1
                  trends.
          (c)     By September 30 and
                  March 30 of each year,
                  the SDE shall ensure
                  that detailed caseload
                  and expenditure data,
                  through the most recent
                  period for Stage 2 and
                  Stage 3 along with all
                  relevant assumptions, is
                  provided to DSS to
                  facilitate budget
                  development. The
                  detailed data provided
                  shall include actual and
                  projected monthly
                  caseload from Stage 2
                  scheduled to time off of
                  their transitional child
                  care benefit from the
                  last actual month
                  reported by agencies
                  through the next two
                  fiscal years as well as
                  local attrition
                  experience. DSS shall
                  utilize data provided by
                  the SDE, including key
                  variables from the prior
                  fiscal year and the
                  first two months of the
                  current fiscal year, to
                  provide coordinated
                  estimates in November of
                  each year for each of
                  the three stages of care
                  for preparation of the
                  Governor's Budget, and
                  shall utilize data from
                  at least the first two
                  quarters of the current
                  fiscal year, and any
                  additional monthly data
                  as they become available
                  for preparation of the
                  May Revision. The DSS
                  shall share its
                  assumptions and
                  methodology with the SDE
                  in the preparation of
                  the Governor's Budget.
          (d)     The SDE shall coordinate
                  with the DSS to identify
                  annual general
                  subsidized child care
                  program expenditures for
                  Temporary Assistance for
                  Needy Families-eligible
                  children. The SDE shall
                  modify existing
                  reporting forms as
                  necessary to capture
                  this data.
          (e)     The SDE shall provide to
                  the DSS, upon
                  request, access to the
                  information and data
                  elements necessary to
                  comply with federal
                  reporting requirements
                  and any other
                  information deemed
                  necessary to improve
                  estimation of child care
                  budgeting needs.
          (f)     On or before January 30,
                  2016, following
                  consultation with the
                  DSS, the SDE shall
                  determine the adequacy
                  of funding appropriated
                  by the Legislature for
                  CalWORKs Stage 2 and
                  Stage 3. If the SDE
                  determines that the
                  Stage 2 appropriation
                  exceeds the current year
                  caseload needs and the
                  Stage 3 appropriation is
                  not sufficient to fully
                  fund its caseload need,
                  then the SDE shall
                  submit a request to the
                  Department of Finance to
                  transfer the excess
                  funds from Schedule (5),
                  CalWORKs Stage 2 child
                  care to Schedule (6),
                  CalWORKs Stage 3 child
                  care. Notwithstanding
                  Section 26.00 or any
                  other provision of law,
                  the     Department of
                  Finance may, at its
                  discretion, approve such
                  a transfer.
          (g)     Notwithstanding any
                  other provision of law
                  or any other sections of
                  this act, the Department
                  of Finance may augment
                  the appropriation for
                  CalWORKs Stage 3 if the
                  estimate of
                  expenditures, as
                  determined by the SDE,
                  following consultation
                  with the DSS, will
                  exceed the expenditures
                  authorized in Schedule
                  (6). The Department of
                  Finance shall report any
                  augmentation pursuant to
                  this paragraph to the
                  Joint Legislative Budget
                  Committee. At the time
                  the report is made, the
                  amount of the
                  appropriation made in
                  Schedule (6) shall be
                  increased by the amount
                  of the augmentation.
          (h)     The Director of Finance
                  may, pursuant to
                  subdivisions (f) and (g)
                  of Provision 7,
                  authorize the
                  augmentation of the
                  amount available for
                  expenditure in Schedule
                  (6) by making a transfer
                  from Schedule (5). An
                  augmentation may be
                  authorized not sooner
                  than 30 days after
                  notification in writing
                  of the necessity to
                  exceed the limitations
                  is provided to the Joint
                  Legislative Budget
                  Committee, or whatever
                  lesser time the
                  chairperson of the joint
                  committee may determine.
                  Any request made by the
                  SDE to augment the
                  CalWORKs Stage 3
                  appropriation shall be
                  approved only in order
                  to cover increases in
                  costs that are
                  consistent with
                  assumptions of this act.
                  This provision shall not
                  be construed to treat
                  Stage 3 as an
                  entitlement.
    8.    Notwithstanding any other
          provision of law, the funds in
          Schedule     (6) are reserved
          exclusively for continuing child
          care for the following: (a)
          former CalWORKs families who are
          working, have left cash aid, and
          have exhausted their two-year
          eligibility for transitional
          services in either Stage 1 or
          Stage 2 pursuant to subdivision
          (c) of Section 8351 or Section
          8353 of the Education Code,
          respectively, but still meet
          eligibility requirements for
          receipt of subsidized child care
          services, and (b) families who
          received lump-sum diversion
          payments or diversion services
          under Section 11266.5 of the
          Welfare and Institutions Code
          and have spent two years in
          Stage 2 off of cash aid, but
          still meet eligibility
          requirements for receipt of
          subsidized child care services.
    9.    Notwithstanding any other
          provision of law, each local
          planning council receiving funds
          appropriated in Schedule (11)
          shall meet the     requirements
          of Section 8499.5 of the
          Education Code to the extent
          feasible and to the extent data
          is readily accessible.
    10.   Notwithstanding any other
          provision of law, the
          implementation of Provision 12
          is not subject to the appeal and
          resolution procedures for
          agencies that contract with the
          State Department of Education
          for the provision of child care
          services or the due process
          requirements afforded to
          families that are denied
          services specified in Chapter 19
          (commencing with Section 18000)
          of Division 1 of Title 5 of the
          California Code of Regulations.
    11.   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
          State Department of Education
          may implement Provision 12
          through management bulletins or
          similar instructions.
    12.   Notwithstanding any other
          provision of law, families shall
          be disenrolled from subsidized
          child care services consistent
          with the priorities for services
          specified in subdivision (b) of
          Section 8263 of the Education
          Code. Families shall be
          disenrolled in the following
          order: (a) families with the
          highest income below 70 percent
          of the State Median Income (SMI)
          adjusted for family size, (b) of
          families with the same income
          level, those that have been
          receiving child care services
          for the longest period of time,
          (c) of families with the same
          income level, those that have a
          child with exceptional needs,
          and (d) families with
          children who are receiving child
          protective services or are at
          risk of being neglected or
          abused, regardless of family
          income.
    14.   Of the amount appropriated in
          Schedule (3), $52,627,000 is
          available to provide 6,800
          voucher child care slots. The
          Department shall allocate these
          slots based on the existing
          distribution of alternative
          payment program contracts.
    16.   Of the amount appropriated in
          Schedule (1), $3,471,000 is
          available to provide wraparound
          child care for 1,200 full-day
          state preschool slots beginning
          January 1, 2016.
    17.   The amount provided in Schedule
          (12) is available for Quality
          Rating and Improvement System
          (QRIS) consortia to provide
          training, technical assistance,
          and resources to help infant and
          toddler child care providers
          meet a higher tier of quality as
          determined by their local QRIS
          matrix. No more th  e   an  20
percent
          of the funding awarded to a
          consortia may be allocated
          directly to child care
          providers. Each county
          participating in a QRIS
          consortia and in good standing
          with the California Department
          of Education (CDE) shall
          receive a minimum grant amount
          of $25,000 for this purpose,
          with remaining funds distributed
          to consortia based on their
          proportion of contracts with CDE
          for infant and toddler child
          care and development.
          Notwithstanding any other
          provision of law, the funds
          appropriated in this schedule
          shall be available for
          encumbrance until June 30, 2017.


   SEC. 9.    Item 6100-194-0890 of Section 2.00 of the
  Budget Act of 2015   is amended to read: 
6100-194-0890--For local assistance, State
Department of Education, payable from the
Federal Trust Fund.......................... 582,852,000
    Schedule:
    (1)  5210026-General Child
         Development...........    235,067,000 
                                   184,227,000 
    (2)  5210028-Migrant Day
         Care..................     5,411,000
    (3)  5210030-Alternative
         Payment...............    144,779,000 
                                   170,199,000 
    (4)  5210034-CalWORKs
         Stage 2...............    10,000,000
    (5)  5210036-CalWORKs
         Stage 3...............    136,069,000  

                                   161,489,000 
    (6)  5210044-Quality
         Improvement...........    48,207,000
    (7)  5210046-Local
         Planning Councils.....     3,319,000
    Provisions:
    1.   Notwithstanding any other provision
         of law, the funds appropriated in
         this item, to the extent
         permissible under federal law, are
         subject to Section 8262 of the
         Education Code.
    2.   Of the funds appropriated in this
         item, $10,000,000 is from the
         transfer of funds, pursuant to Item
         5180-402, from the federal
         Temporary Assistance for Needy
         Families (TANF) Block Grant
         administered by the State
         Department of Social Services to
         the federal Child Care and
         Development Block Grant for
         CalWORKs Stage 2 child care.
    3.   Funds in Schedules (6) and (7)
         shall be allocated to meet federal
         requirements to improve the quality
         of child care and shall be used in
         accordance with the approved
         California state plan for the
         federal Child Care and Development
         Fund that is developed pursuant to
         the requirements under Section
         8206.1 of the Education Code.
    4.   Notwithstanding any other provision
         of law, each local planning council
         receiving funds appropriated in
         Schedule (7) shall meet the
         requirements of Section 8499.5 of
         the Education Code to the extent
         feasible and to the extent data is
         readily accessible.
    5.   Of the funds appropriated in this
         item, $18,469,000 is available on a
         one-time basis for CalWORKs Stage 3
         child care from federal Child Care
         and Development Block Grant funds
         appropriated prior to the 2015-16
         federal fiscal year.
    6.   (a) Of the     funds appropriated
         in Schedule (6) of this item,
         $2,892,000 is available on a one-
         time basis for quality activities
         from federal Child Care and
         Development Block Grant funds
         appropriated prior to the 2015-16
         federal fiscal year. The State
         Department of Education shall
         allocate these funds pursuant to
         federal law and reflecting the
         following priorities:
                (1)    First, to provide one-
                       time resources to
                       meet the requirements
                       of the 2014
                       reauthorization of
                       the federal Child
                       Care and Development
                       Block Grant.
                (2)    Second, to
                       support the retention
                       and training of
                       teachers and staff
                       working in state and
                       federally subsidized
                       child care programs.
         (b)    Funds appropriated in
                Schedule (6) of this item
                shall not be expended to
                develop Feasibility Study
                Reports or to support new
                information technology
                projects, unless approved by
                the Department of Finance
                and not sooner than 30 days
                after notification in
                writing to the Chairperson
                of the Joint Legislative
                Budget Committee.
    7.   Of the funds appropriated in
         Schedule (6) of this item, $300,000
         is available on a one-time basis
         for the Resource and Referral
         Network from federal Child Care and
         Development Block Grant     funds
         appropriated prior to the 2015-16
         federal fiscal year. It is the
         intent of the Legislature that this
         funding may support data collection
         efficiency.


   SEC. 10.    In regard to Section 1 to 3, inclusive,
of this act, the Legislature finds and declares that a special law is
necessary and that a general law cannot be made applicable within
the meaning of Section 16 of Article IV of the California
Constitution because of the unique circumstances concerning the
County of San Mateo. 
   SEC. 11.    This act is a bill providing for
appropriations related to the Budget Bill within the meaning of
subdivision (e) of Section 12 of Article IV of the California
Constitution, has been identified as related to the budget in the
Budget Bill, and shall take effect immediately.  
  SECTION 1.    It is the intent of the Legislature
to enact statutory changes relating to the Budget Act of 2015.