Child Care Family Fees changes

The California Department of Social Service (CDSS) has issued a Child Care Bulletin (CCB) to guide counties and contractors regarding the implementation of Assembly Bill (AB) 116. The bill authorized the restructuring of Family Fee Schedules and allows exceptions to the payment of certain family fees in the following programs: Alternative Payment Programs (CAPP), Migrant Alternative Payment Programs (CMAP), Migrant Child Care and Development Programs (CMIG), General Child Care and Development Programs (CCTR), Family Child Care Home Education Networks (CFCC), and California Work Opportunity and Responsibility to Kids (CalWORKs) Stages One, Two (C2AP), and Three (C3AP).

Families are exempt from paying fees if they meet the following circumstances: families with children identified as at risk of abuse, neglect, or exploitation; families with children who are receiving Child Protective Services; families receiving CalWORKs cash aid; families receiving Child Care and Development Services for Children with Special Needs; families enrolled in the Federal Based Migrant Program; families eligible for child care based on “experiencing homelessness”; and families with an adjusted monthly family income below 75 percent of the state median family income.

CDSS must establish a family fee schedule for families receiving child care and development services based on the most recent census data on median family income. AB 116 establishes that family fees cannot be based on the cost of care or the amount of subsidy payment. Family fees also cannot exceed 1 percent of the family’s adjusted monthly income. If a family’s monthly income is below 75 percent of the state median income, they will not be assessed a family fee. AB 116 also waives any family fees accrued but uncollected before October 1, 2023. However, child care providers receiving subsidies should not absorb a reduction in pay because of waivers or reductions of family fees.

Family fees must be assessed at three points: initial certification, recertification, and when a family requests a reduction to their family fees.

At initial certification, contractors will assess fees using the monthly certified need. For families with fluctuating incomes, contractors must allow families to provide up to 12 months of income information to determine income eligibility or calculate family fees. The adjusted monthly income from these households should be calculated using the average total countable income from at least two months. When a family’s initial enrollment is not the first day of the month, the contractor must assess a fee based on the certified hours for the partial month and another fee for the months after based on the certified need that is documented. If a change is made to the family fee at any point a written Notice of Action (NOA) must be issued.

Family fees should be assessed but not collected through September 30, 2023. Contractors should instruct providers to suspend collecting family fees during the period that fees are waived. Fee waivers are not permanent changes to statutes or regulations. When family fees are waived, contractors should reimburse the child care provided for the full amount without deducting family fees. Contractors should have policies in place to communicate the due date for payment of fees to parents.

Childcare and development contractors are required to report the amount of family fees collected and family fees that were assessed but waived.

Delinquent Family Fee Plans including outstanding fees were resumed July 1, 2021. However, families cannot be terminated due to these outstanding fees and families have the option to pay off any balance that existed before March 2020 with the amount paid being credited to their accounts. Additionally, counties and contractors can forgive family fees accrued but uncollected before October 1, 2023.  (CCB 23-22, August 31, 2023.)

Withdrawing state hearing requests

California Department of Social Services (CDSS) State Hearings Division (SHD) has issued instructions regarding withdrawing of a state hearing request.  A claimant or the Authorized Representative can withdraw a hearing request any time before a decision is issued.

A withdrawal can be unconditional or conditional.  An unconditional withdrawal is a complete retraction of the hearing request without conditions.  There are three ways to unconditionally withdraw a hearing request.  A claimant can request an unconditional withdrawal in the ACMS computer system if they have an account.  A claimant can submit a request to unconditionally withdraw their hearing by mail, fax or email.  A claimant can submit a verbal request to unconditionally withdraw their hearing request using the Interactive Voice Response (IVR) system or by telephone.  SHD will send a letter to the claimant confirming the unconditional withdrawal request.

The opposing party may be aware that the claimant wants to unconditionally withdraw their hearing request.  If the opposing party tells SHD that the claimant or their Authorized Representative wants to unconditionally withdraw a hearing request, SHD will contact the clamant to confirm their intent to unconditionally withdraw their hearing request. If the claimant has any questions, SHD will tell the claimant to talk to the opposing party.  If the claimant or Authorized Representative confirms that they want to unconditionally withdraw the hearing request, SHD will enter the withdrawal in ACMS and will send the claimant a letter confirming the unconditional withdrawal.

A conditional withdrawal is a retraction of the hearing request based on the opposing party’s agreement to certain actions to resolve the case.  A conditional withdrawal must be in writing signed by the claimant or their Authorized Representative.

SHD will accept any conditional withdrawal request that is submitted by mail, fax, email, text, IVR, phone, or uploaded to ACMS, that includes written terms and is signed by the opposing party and the claimant.  These methods are considered to be a valid electronic signature.

A claimant or Authorized Representative can confirm a conditional withdrawal by phone with SHD.  The opposing party must contact the claimant to confirm the agreement.  The opposing party cannot rely on a telephonic signature unless they have gotten the claimant’s consent.  If the opposing party parts gets consent, they must upload the terms to ACMS.  SHD will then contact the claimant to confirm the terms.

The claimant or Authorized Representative can use the SHD IVR to state the terms of a conditional withdrawal.  If the opposing party has their own IVR, it can upload a recording of the terms to ACMS.  The agreement must state that the parties complete all terms within 30 days.

If the case has multiple opposing parties, all parties must consent to the conditional withdrawal.

When a case is withdrawn, SHD will notify all parties that the hearing request has been dismissed.

If the claimant or Authorized Representative does not appear at the hearing and a conditional withdrawal has not been processed, SHD will dismiss the case.

A party can withdraw a rehearing request any time before SHD acts on it.  After a rehearing request has been granted, the claimant can withdraw it with the approval of the Chief Administrative Law Judge.  The parties can submit a conditional withdrawal to resolve the case after rehearing is granted.  SHD will review the terms to ensure that all issues in the rehearing are addressed, and then will forward the request to the Chief Administrative Law Judge for approval.  (ACL 23-82, September 19, 2023.)

 

New NA Back 9 form

The California Department of Social Services (CDSS) has issued a revised version of the NA Back 9 form, which is the form on the back of every Notice of Action for a CDSS administered program about hearing rights and how to request a hearing.  The new NA Back 9 form includes the ability to request a preferred hearing modality, instructions on submitting hearing requests online or by email, and information about on-line hearings accounts.

Counties must begin using the new NA Back 9 form when automation in the CalSAWS computer system is complete.  All county generated notices must include the revised NA Back 9 after it is programmed into CalSAWS.  CDSS does not state when to expect the revised NA Back 9 to be programmed into CalSAWS or state a deadline for that programming.

Counties must include the local legal aid office(s) in the “Get Help” section of the new NA Back 9.

Agencies that use a form other than the NA Back 9 to request a hearing must have those forms reviewed and approved by the CDSS State Hearings Division.  (ACL 23-81, September 19, 2023.)

New income limits for subsidized child care programs

The California Department of Social Services (CDSS) has notified counties and child care and development contractors of the new income limits for all direct service and voucher-based child care and development contracts administered.  It reflects the State Median Income (SMI) and Income Ranking Table for Fiscal Year (FY) 2023-24, and the updated Schedule of Income Ceilings is used to determine a family’s income eligibility for state subsidized child care and development programs for FY 2023-24. The updated Income Ranking Table is used to determine an income-eligible family’s priority for enrollment in a state subsidized child care and development programs for FY 2023-24. 

Contractors must enroll families into CDSS-administered child care and development programs in priority order. First priority is for neglected or abused children who are recipients of child protective services, or children who are at risk of being neglected or abused, when there is a written referral from a legal, medical, or social services agency. 

The second priority for enrollment is for income-eligible families, with families who have the lowest gross monthly income in relation to family size receiving the highest priority. If two or more families are in the same priority in relation to income, the family that has a child with exceptional needs must be admitted first. Effective January 1, 2023, families in which the primary home language is a language other than English are also second priority for services. Contractors must ask on their waiting list application if a family’s home language is a language other than English.  Contractors must prioritize the family by the income declared on the application for the means-tested government program.

Effective July 1, 2023, contractors must use the revised FY 23-24 Income Ranking Table when determining enrollment priorities for families.  (CCB 23-16, June 19, 2023.)

Expansion of Emergency Child Care Bridge Program

The Emergency Child Care Bridge Program provides short-term child care vouchers or payments for approved resource families and parents under the jurisdiction of the juvenile court.  This program has been expanded in two ways.

First, the Bridge Program now covers when a resource family is unable to provide care in addition to when a resource family is not at home.  This means that the Bridge Program now covers families engaging in telework or online classes.

Second, counties can now extend eligibility for the Bridge Program beyond 12 months for a compelling reason.  These reasons include inability to transition to other subsidized child care, loss of eligibility would disrupt stability for the child, and loss of eligibility would jeopardize a permanency plan or successful reunification.

In addition, counties must have a process to pay benefits within 21 calendar days of receipt of a complete attendance record or invoice for payment.  (CCB 22-27, September 26, 2022.)

Implementation of 24 month child care eligibility

Effective January 1, 2023, the minimum eligibility period for certain child care programs is extended to 24 months.  The effected programs are:

  • General Child Care and Development Programs (CCTR)
  • California Family Child Care Home Education Networks (CFCC)
  • Migrant Child Care and Development Programs (CMIG)
  • Migrant Child Care Alternative Payment Programs (CMAP)
  • California Alternative Payment Programs (CAPP)
  • Child Care and Development Services for Children with Special Needs (CHAN)

The 24 month eligibility does not apply to CalWORKs Stage 1, 2, or 3 child care.

The 24 month period is not retroactive to before January 1, 2023.  Certifications entered into prior to January 1, 2023 remain in effect.

Child care and development programs remain available until age 13.  If a child turns 13 within the first 12 months of the eligibility period, eligibility is only for 12 months.

Families enrolled on or after January 1, 2023 must receive services for at least 24 months before recertification and are not required to report most changes.  However, families must report income that exceeds the threshold for ongoing income eligibility.  Families can voluntarily report changes that extend their eligibility.

If a family’s 24-month eligibility ends before the end of a California State Preschool Program program year, eligibility extends to the end of the program year, as long as age eligibility requirements are met.

The California Department of Social Services must develop implementing regulations by December 31, 2024.  (CCB 22-37, December 30, 2023, and 22-37E, March 10, 2023