(a) For purposes of this article, “plan” means an individualized county childcare subsidy plan developed and approved under the pilot project described in Section 8273.

(b) A plan shall include all of the following:

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(1) An assessment to identify the county’s goals for its subsidized childcare system. The assessment shall examine whether the current structure of subsidized childcare funding adequately supports working families in the county and whether the county’s childcare goals coincide with the state’s requirements for funding, eligibility, priority, and reimbursement. The assessment shall also identify barriers in the state’s childcare subsidy system that inhibit the county from meeting its childcare goals. In conducting the assessment, the county shall consider all of the following:

(A)  Needs assessment data collected pursuant to § 10486 of the Welfare and Institutions Code.

(B)  Data collected by resource and referral agencies pursuant to subparagraph (B) of paragraph (3) of subdivision (a) of § 10219 of the Welfare and Institutions Code.

(C) The county’s self-sufficiency income level.

(D) The cost of providing childcare.

(2) (A) Development of a local policy to eliminate state-imposed regulatory barriers to the county’s achievement of its desired outcomes for subsidized childcare.

(B) The local policy shall do all of the following:

(i) Prioritize lowest income families first.

(ii) Follow the family fee schedule established pursuant to Section 8252 of this code or § 10290 of the Welfare and Institutions Code, as applicable for those families who are income eligible, as defined by Section 8213 of this code or § 10271.5 of the Welfare and Institutions Code, as applicable, and provide the exemptions for family fees specified in Section 8253 of this code or § 10291 of the Welfare and Institutions Code, as applicable.

(iii) Meet local goals that are consistent with the state’s childcare goals.

(iv) Identify existing policies that would be affected by the county’s plan.

(v) (I) Authorize an agency that provides childcare 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 or modification of the plan is approved pursuant to Section 8277.

(III) The contract of a department contractor who does not elect to request an amendment to its contract remains operative and enforceable.

(vi) Provide a family that qualifies for the second or third stage of childcare services pursuant to Chapter 21 (commencing with Section 10370) of Part 1.8 of Division 9 of the Welfare and Institutions Code, for purposes of eligibility, fees, and reimbursements, the same or higher level of benefit as a family that qualifies for subsidized childcare on another basis pursuant to the local policy, except as otherwise provided in Chapter 21 (commencing with Section 10370) of Part 1.8 of Division 9 of the Welfare and Institutions Code. Nothing in this section shall be interpreted to impact or reduce any element in the second or third stage of childcare services pursuant to Chapter 21 (commencing with Section 10370) of Part 1.8 of Division 9 of the Welfare and Institutions Code that provides a greater benefit to participating families than is provided for in the local policy.

(C) The local policy may supersede state law concerning childcare subsidy programs with regard only to the following factors:

(i) Eligibility criteria, including, but not limited to, age, family size, time limits, income level, and special needs considerations.

(ii) Fees, including, but not limited to, family fees, sliding scale fees, and copayments for those families who are not income eligible, as defined by Section 8213 of this code or § 10271.5 of the Welfare and Institutions Code, as applicable.

(iii) Reimbursement rates, including adjustment factors identified in Section 8244 of this code or § 10281.5 of the Welfare and Institutions Code, as applicable.

(iv) Methods of maximizing the efficient use of subsidy funds, including, but not limited to, multiyear contracting with the department for center-based childcare, and interagency agreements that allow for flexible and temporary transfer of funds among agencies.

(v) Families with children enrolled in part-day California state preschool program services, pursuant to Article 2 (commencing with Section 8207), may be eligible for up to two 180-day periods within a 24-month period without the family being certified as a new enrollment each year.

(vi) The ratio of four-year-old children in state preschool programs pursuant to subdivision (b) of Section 8263.

(3) Recognition that all funding sources utilized by contractors that provide childcare and development services in the county are eligible to be included in the county’s plan.

(4) Establishment of measurable outcomes to evaluate the success of the plan to achieve the county’s childcare goals, and to overcome any barriers identified in the state’s childcare subsidy system.

(c) Nothing in this section shall be construed to permit the county to change the regional market rate survey results for the county.

(d) Nothing in this section shall allow a county to adopt as part of its pilot project an increase to the regional market reimbursement rate beyond the level provided in the annual Budget Act.

(e) A plan may include stage one childcare services in addition to alternative payment and direct service childcare programs. If the plan includes CalWORKs childcare, pilot administrators shall consult with their county welfare department to identify opportunities for alignment, ensuring families experience no break in their childcare services due to a transition between the three stages of childcare services and policies implemented in the pilot project.

(Added by renumbering Section 8332.2 by Stats. 2021, Ch. 116, Sec. 159. (AB 131) Effective July 23, 2021. Inoperative July 1, 2024, pursuant to Section 8281. Repealed as of January 1, 2025, pursuant to Section 8281.)