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Management Bulletin 05-01


Child Development Division

Subject: Changes in Law Affecting Resource and Referral Programs and Alternative Payment Programs Subsequent to Community Care Licensing Actions

Number: 05-01

Date: January 2005

Authority: Assembly Bill 72, Chapter 358, Statutes of 2004. California Education Code sections 8212 and 8226. California Health and Safety Code sections 1596.853, 1596.773, and 1596.8555.

Expires: Until rescinded

Attention:
All Resource and Referral Agencies
All Alternative Payment Agencies
Purpose

The purpose of this Management Bulletin is to provide information to specific child care and development contractors of new noticing requirements and specific administrative activities that must occur when Department of Social Services (DSS), Community Care Licensing Division (CCL), takes specified actions regarding a licensed child care facility. These changes are the result of the enactment of Assembly Bill (AB) 72, Chapter 358, Statutes of 2004, which became effective January 1, 2005. The program requirements become effective immediately upon receipt of this Management Bulletin.

Background

Prior to the enactment of AB 72, the Health and Safety Code required the DSS, CCL to notify Resource and Referral Agencies (R&Rs) of the issuance of a child care license, its denial, revocation, or temporary suspension, and, within 24 hours, of any finding that physical or sexual abuse has occurred within a facility. Licensed child day care facilities include licensed centers and family child care homes.

AB 72 amended the Health and Safety Code to require that the CCL notification of the R&Rs occur within defined time frames, specifically:

In addition, AB 72 requires that the CCL notify the R&Rs within two business days when a child day care facility is placed on probation.

AB 72 also amends sections 8212 and 8226 of the California Education Code. Section 8212 now requires that when an R&R is notified by the CCL that a child day care facility has had its license suspended or revoked, or is placed on probation, the R&R must, within two business days, notify any Alternative Payment Program (APP) and County Welfare Department (CWD) in the R&R service area of the CCL action. In addition, the R&R must remove that facility from the referral list within two business days of the CCL notification.

AB 72 requires that when an APP or a CWD receives notification from a R&R that:

Program Requirements
Resource and Referral Agency Requirements

Notification:

The R&Rs must notify the APPs and the CWDs operating within the R&Rs' service area of the temporary suspension, revocation, or probation of a facility's license. This notification must be in writing and must be sent within two business days of receiving the notification from the DSS, CCL.

The R&Rs must also notify the APPs and the CWDs in writing of any facility that was placed on probation between January 1, 2005, and receipt of this management bulletin. The CCL will be providing all R&Rs with this information. To ensure that your agency receives notification of any facility currently on probation, the R&Rs are encouraged to contact the DSS, CCL office in their area to obtain the names of all facilities placed on probation from January 1, 2005, through the date of the request.

Referral List:

The R&Rs must remove facilities that have their license suspended, revoked, or placed on probation from the referral list within two business days of notification from the CCL.

When the DSS, CCL notifies an R&R that a facility's license has been removed from probationary status or that the suspension has been lifted, the R&R is to return that facility to its referral list as of the date of the removal from probation or suspension and resume referrals to that facility.

Documentation:

The R&Rs are required to maintain a copy of the notifications received from the CCL and of the notifications provided to the APPs and the CWDs pursuant to this Management Bulletin.

Alternative Payment Program Requirements

Termination of Payment:

Within two business days of receiving notice that a facility's license has been revoked or temporarily suspended, the APP must terminate payment to the facility as of the effective date on the Temporary Suspension Order or license revocation. Authorized services are to be paid up to the effective date of the CCL action. No payment is to be made for care provided after the effective date of the CCL action. Regardless of the contractual agreement between the APP and the facility regarding notification prior to termination of payment, the payment must be terminated as of the effective date of the suspension or revocation.

Notification to a Child Care Facility:

Within two business days of receiving suspension or revocation information from the R&R, an APP must notify in writing the affected facility that:

Notification to Subsidized Families:

Within two business days of receiving suspension or revocation information from the R&R, an APP must issue a written notification to the subsidized families using the affected facility with the following information:

Within two business days of receiving notification that a facility has been placed on probation, an APP must notify in writing the subsidized families using the affected facility that:

Agencies are required, to the extent feasible, to provide the written notice to the family in the family's primary language.

Relationship with Facilities on Probation:

The APP is obligated to reimburse a family's provider for any contractually agreed notification time prior to removing a child from the care of the facility on probation. For example, if the facility requires a parent to provide a two-weeks notice prior to removing a child from the provider's care, the facility must be reimbursed for those two weeks, and the APP may not pay a new provider for that two-week period, even if the parent has started to use another provider during that period. In this example, if the parent started to use another provider, the parent would be responsible for the full cost of care until the end of two-week period.

Under no condition should an APP terminate payment to a facility placed on probation. Payment to a facility on probation may only be discontinued if a parent decides to remove his/her child(ren) and choose another provider. The APPs may not make or continue policies that allow for termination of payment to a facility placed on probation independent of a parent's selection of alternative care.

Documentation Requirements:

The APPs are required to document any action taken and notification provided to programs and families pursuant to this Management Bulletin. The documentation must include the date of the action or notification, the form of the action taken, and a copy of the notification provided. Documentation of notification of facilities shall be retained in the facility's file maintained by the APP. Documentation of notification of families shall be retained in the family's data file maintained by the APP.

Family Eligibility for Subsidized Child Care and Development Services:

The family's eligibility for subsidized child care and development services continues uninterrupted regardless of temporary suspension, revocation, or probation of any facility license as long as the family and the child remain otherwise eligible. If the family no longer meets need or eligibility criteria for services, a Notice of Action must be issued. When issuing a Notice of Action, agencies must comply with California Code of Regulations, Title 5, Education, sections 18095, 18119, 18418, 18419, 18433 and 18434, including specifying the basis for termination and providing instructions to parents about their appeal rights. Agencies must provide a fair and impartial hearing to any family who files an appeal.

If you have any questions or need further information regarding the information in this Management Bulletin, please call your assigned CDD Field Services Consultant.

This Management Bulletin is mandatory only to the extent that it cites a specific statutory and/or regulatory requirement.  Any portion of this Management Bulletin that is not supported by a specific statutory and/or regulatory requirement is not prescriptive pursuant to Education Code 33308.5.

Questions:   Child Development Division | 916-322-6233
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