CA SB246

State Department of Social Services shall implement a modernized reimbursement system by July 1, 2022, varying rates by regional market ceiling, quality adjustment factors for staffing ratios, program length, hours of service, and emergency circumstances.

Quality adjustment factors established at 1.23 for infants, toddlers, and preschoolers, and 1.03 for school-age children to cover costs of meeting quality standards; all providers meeting quality standards shall receive these adjustments.

Regional market rate ceilings updated to 85th percentile of 2018 regional market rate survey (instead of 75th percentile) upon legislative appropriation for 2021-22 fiscal year and annually thereafter.

Reimbursement rate for providers serving children less than four hours per day reduced from 55% to 50% of standard rate; crisis adjustment factor set at 150% for providers in counties under state of emergency.

Department shall develop modernized reimbursement formula by January 1, 2024, based on state's Master Plan for Early Learning and Care, and convene working group to assess quality standards for equity and accessibility across provider types.