Welfare and Institutions Code section 10227.7
(a)
When establishing new reimbursement rates using a single-rate structure informed by an alternative methodology, pursuant to subdivision (i) of Section 10227.6, to the extent it is consistent with the approved Child Care and Development Fund state plan, the department, in consultation with the State Department of Education, shall do all of the following:(1)
Vary rates based on geographic regions established by the department and determined by the cost of living.(2)
Vary rates, at a minimum, based on whether the childcare is being provided in a license-exempt childcare setting, a licensed family daycare home, or a licensed daycare center setting.(3)
Vary rates based on regulatory and statutory requirements applicable to each type of care setting.(4)
Vary rates, at a minimum, based on the following time category considerations:(A)
Part-time and full-time certified need.(B)
A week, for purposes of determining the hours of certified need in a week, begins at midnight on Sunday and ends at 11:59 p.m. on Saturday.(5)
Vary rates, at a minimum, based on the following child age considerations:(A)
All programs that serve the same age of children and have the same program requirements receive the same reimbursable base payment rate, regardless of the type of program contract.(B)
The establishment of rates based on the following child age groupings:(i)
Children who are younger than two years of age, the care of whom will be reimbursed at the infant rate.(ii)
Children who are two years of age, the care of whom will be reimbursed at the toddler rate.(iv)
Children who are five years of age and older who are enrolled in first grade, the care of whom will be reimbursed at the schoolage rate.(6)
Include an enhanced rate for nonstandard hours of care.(7)
(A)Include an enhanced inclusion rate, which shall be administered as a per-child amount and for which programs shall be able to claim reimbursement, consistent with the rules and regulations developed by the department and the State Department of Education, as applicable. To receive an enhanced inclusion rate for a child, the family data file shall include documentation of at least one of the following:(i)
A current individualized family service plan.(ii)
A current individualized education program.(iv)
An active plan pursuant to Section 504 of the federal Rehabilitation Act of 1973 (29 U.S.C. Sec. 794).(v)
An active incidental medical services plan, as described in Section 1596.802 of the Health and Safety Code.(B)
The documentation described in subparagraph (A) may be unsigned if the family did not consent to the child’s receipt of services, despite the child being deemed eligible.(8)
May include other enhanced rates, as determined through the annual Budget process.(9)
Ensure that the reimbursement rates for a specific child, payable to an individual provider or contractor, includes all enhanced rates for which the child is eligible, and that are for services the child is receiving from the individual provider or contractor.(10)
Ensure that base payment rates are based on a child’s maximum certified hours of care with an individual provider, regardless of attendance.(b)
Notwithstanding the rulemaking provisions of the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code), the department may implement and administer this section by all-county letters, childcare bulletins, or similar written instructions until regulations are adopted. These all-county letters or similar written instructions shall have the same force and effect as regulations.
Source:
Section 10227.7, https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=WIC§ionNum=10227.7. (updated Sep. 27, 2026; accessed Oct. 5, 2026).
