1) Updates the standard reimbursement rate and state preschool reimbursement rate, commencing July 1, 2018 to reflect a cost-of-living adjustment and other increases provided in the 2018-19 budget. 

2) Updates the infant reimbursement rate adjustment factor from 1.7 to 2.44 and the toddler reimbursement rate adjustment factor from 1.4 to 1.8. In addition, the adjustment factor for children with exceptional needs is increased from 1.2 to 1.54 and the adjustment factor for severely disabled children is increased from 1.5 to 1.93. These rate adjustment factors are intended to account for the higher costs of serving children in these categories. 

3) Makes permanent a provision to hold providers receiving the regional market rate (RMR) for voucher-based child care harmless so no provider receives less under current rates than it received under the regional market rate ceiling that existed in that region on December 31, 2017 (previously this hold harmless expired December 31, 2018). 

4) Allocates $167.2 million in Proposition 98 funding for the Inclusive Early Education Expansion program. Under this program grants will be provided to local educational agencies (LEAs) to increase access to subsidized early care and education programs for children from ages zero to five. Priority for grants shall be given to those applicants that have a need for expanded access to inclusive early care, serve low-income communities, leverage local partnerships, are able to serve a broad range of disabilities, and plan to, or already do, serve children with disabilities in proportion to the rate of identification similar to LEAs in their area. Funds may be used for one-time infrastructure costs, adaptive equipment, and professional development and grantees must provide a local match. The California Department of Education (CDE) will administer the program and conduct an evaluation of the program and direct a related stakeholder workgroup. 

5) Establishes the Inclusive Early Care Pilot Program. Under this program, county offices of education may apply to receive grants to increase access to early care and education programs for children with exceptional needs, including severe disabilities, from ages zero to five. Grantees may use funds for a variety of purposes to build local and regional capacity, including, but not limited to, outreach coordinators, placement navigators, adaptive equipment, professional learning, and assessment and evaluation tools among others. Priority shall be given to applicants with a demonstrated need for expanded access to inclusive early care and education within their county, particularly within in lowincome and high-need communities. The CDE shall administer the program and conduct an evaluation. For the purposes of this program, $10 million in one-time federal funding is provided in the 2018-19 budget. 

6)  Requires the CDE to adopt regulations for California State Preschool programs under Title 5, on or before July 1, 2019, related to outdoor shade, drinking water, restrooms, supervision of children, and maintenance of indoor and outdoor space. Allows the CDE to adopt emergency regulations to meet the requirements of this section. Clarifies that the licensing flexibility provisions apply to any LEA-operated classroom that is funded in whole or part under the State Preschool Program. In addition, the Uniform Complaint Procedures section of this bill adds related provisions establishing a process for complaints related to the preschool health and safety requirements added to Title 5 regulations pursuant to this section. 

7) Makes other technical changes including, specifying that alternative payment programs have between 12 and 24 months to expend funds allocated within a fiscal year 

Kindergarten , Preschool and After School:

CalWORKs 

No Child in Deep Poverty - Increases the maximum aid payment (MAP) amounts for CalWORKs recipients by 10 percent effective April 1, 2019, and states the intent of the Legislature to provide future grant increases in 2019-20 and 2020-21, contingent upon funding in the annual Budget Act, in order to increase grants to no less than 50 percent of the Federal Poverty Level. Specifies that if an incremental adjustment is made to the MAP, the county share of the adjustment is either based on the total incremental adjustment or the increase in the California Necessities Index, whichever is lower when the adjustment becomes effective. The Budget Act includes $90 million General Fund in 2018-19 and $360 million in 2019-20 and on-ongoing to fund the first step of this policy.

COLAs for CalWORKs and SSP: Provides for cost-of-living adjustments (COLAs) beginning in 2022-23 to both the maximum aid payments in the CalWORKs program and benefits under the State Supplementary Program. Funding for both COLAs is contingent upon funding in the annual Budget Act.

CalWORKs Welfare to Work Study Time. Authorizes that hours required for study time provided for by an educational or training institution when determining the minimum number of hours of participation in educational or vocational training necessary for a CalWORKs recipient to be exempt from concurrent work activities.

CalWORKs Home Visiting Initiative. On and after January 1, 2019, establishes the CalWORKs Home Visiting Initiative as a voluntary program for the purpose of supporting positive health, development, and well-being outcomes for eligible pregnant and parenting women, families, and infants born into poverty, expanding their future educational, economic, and financial capability opportunities, and improving the likelihood that they will exit poverty. Includes case management and evidence-based home visiting, as defined, as a primary component of the program, and would require home visiting to be offered to an individual who meets certain criteria and to include, but not be limited to, specified resources and referrals relating to prenatal, infant, and toddler care, among other things. Makes participation in the program optional for counties and would require a county that applies for funds under the program to agree to the terms of the program and to include specified information in its application. Subject to an appropriation in the annual Budget Act, requires the Department of Social Services to award funds to participating counties for the purposes of the program.