SB 174 Summary

• Increases regional market rate ceilings for childcare services from 75th percentile to 85th percentile of the 2018 regional market survey, effective January 1, 2021, or maintains the December 31, 2017 ceiling if greater.

• Changes reimbursement for license-exempt childcare providers to not exceed 70% of the commensurate rate (hourly, daily, weekly, or monthly) for both full-time and part-time care, effective January 1, 2021.

• Updates regional market rate survey methodology to include age ranges, hours of service ranges, and factors to mitigate impact of contractors in deep-poverty census tracts.

• Creates the Quality Counts California Pilot Reimbursement Program allowing up to 5 alternative payment childcare systems to receive higher reimbursement rates for providers meeting specified quality standards.

• Modifies adjustment factors for special populations by removing adjustments for infants and toddlers (0-36 months) effective July 1, 2020, while retaining adjustments for children with exceptional needs, severely disabled children, at-risk children, and limited-English-speaking children.