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Department of
SOCIAL SERVICES

Community Care Licensing


COMPLAINT INVESTIGATION REPORT

Facility Number: 045408438
Report Date: 05/01/2026
Date Signed: 05/01/2026 12:53:12 PM

Substantiated


STATE OF CALIFORNIA - HEALTH AND HUMAN SERVICES AGENCY

COMPLAINT INVESTIGATION REPORT		CALIFORNIA DEPARTMENT OF SOCIAL SERVICES
COMMUNITY CARE LICENSING DIVISION
CHICO-DAY CARE, 520 COHASSET RD., SUITE 170
CHICO, CA 95926
This is an official report of an unannounced visit/investigation of a complaint received in our office on
03/03/2026 and conducted by Evaluator Erica Laird
PUBLIC
COMPLAINT CONTROL NUMBER: 13-CC-20260303091425
FACILITY NAME:STORYBOOK SCHOOLHOUSEFACILITY NUMBER:
045408438
ADMINISTRATOR:GIVENS, ELIZABETHFACILITY TYPE:
860
ADDRESS:794 E 3RD AVETELEPHONE:
(530) 895-8793
CITY:CHICOSTATE: CAZIP CODE:
95926
CAPACITY:128CENSUS: 23DATE:
05/01/2026
UNANNOUNCEDTIME BEGAN:
11:17 AM
MET WITH:Pengshang "Emma" Ouyang, Acting DirectorTIME COMPLETED:
01:10 PM
ALLEGATION(S):
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Licensee increased fees without proper notice
INVESTIGATION FINDINGS:
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On 5/1/26 @ 11:15am, Licensing Program Analyst (LPA) Erica Laird conducted an unannounced complaint inspection, and met with facility director Pengshang "Emma" Ouyang. It was alleged that licensee increased fees without proper notice, specifically that the facility is charging a co-pay and did not provide written notice to parents.

On 3/12/26 LPA Laird conducted an interview at the facility with director Elizabeth Givens. Elizabeth denied the allegation stating parents were notified of the co-pay through the Brightwheel app. in August 2024. Elizabeth stated the tuition did not increase, but parents were required to pay a co-pay to cover the shortage from subsidized care.

report continued on 9099C
Substantiated
Estimated Days of Completion:
SUPERVISORS NAME: Megan Aviles
LICENSING EVALUATOR NAME: Erica Laird
LICENSING EVALUATOR SIGNATURE:

DATE: 05/01/2026
I acknowledge receipt of this form and understand my licensing appeal rights as explained and received.
FACILITY REPRESENTATIVE SIGNATURE:

DATE: 05/01/2026
This report must be available at Child Care and Group Home facilities for public review for 3 years.
LIC9099 (FAS) - (06/04)
Page: 1 of 4
Control Number 13-CC-20260303091425
STATE OF CALIFORNIA - HEALTH AND HUMAN SERVICES AGENCY

COMPLAINT INVESTIGATION REPORT (Cont)		CALIFORNIA DEPARTMENT OF SOCIAL SERVICES
COMMUNITY CARE LICENSING DIVISION
CHICO-DAY CARE, 520 COHASSET RD., SUITE 170
CHICO, CA 95926
FACILITY NAME: STORYBOOK SCHOOLHOUSE
FACILITY NUMBER: 045408438
VISIT DATE: 05/01/2026
NARRATIVE
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On 4/22/26 LPA Laird conducted interviews with 5 parents (P1-P5). All parents stated they had knowledge of a rate increase. All parents stated they were notified there would be a rate increase sometime in March, though none of them knew when the rate increase was supposed to take effect. Four parents interviewed stated they had started getting billed for a co-pay without prior notice. Four parents stated the co-pay went into effect over a year ago and no notice was given. Four parents interviewed stated they are not given a detailed invoice indicating tuition owed, payment voucher amount received by the facility, and balance due.

On 3/18/26 LPA Laird conducted an interview with the facility owner, Thamalka Mudannayake. Thamalka stated she had knowledge of the allegation and she realized in March 2026 that parents had been charged a co-pay without proper notification. Thamalka stated a statement regarding co-pays went out to parents in 2024 but she does not believe it specified an amount. Thamalka sated the facility notified parents in March 2026 of the rate increase and ensured the amounts were included.

On 3/18/26 LPA Laird conducted an interview with one witness (W1). W1 stated they had knowledge of the allegation. W1 stated they are aware the facility was charging parents a flat co-pay amount. W1 stated, based on information they've obtained, they do not believe a formal notification regarding the co-pay was provided to parents.

On 3/12/26 LPA Laird obtained documents pertaining to payment, tuition rates, and the admission agreement which indicates parents are to be notified 30 days prior to any rate changes.

Based on interviews and documents obtained as part of this investigation, LPA Laird had determined there is sufficient evidence to suggest the allegation is valid.

Based on the evidence obtained, the preponderance of evidence standard has been met, therefore the above allegation is found to be substantiated. California Code of Regulations, (Title 22), is being cited on the attached LIC 9099D.
SUPERVISORS NAME: Megan Aviles
LICENSING EVALUATOR NAME: Erica Laird
LICENSING EVALUATOR SIGNATURE:

DATE: 05/01/2026
I acknowledge receipt of this form and understand my licensing appeal rights as explained and received.
FACILITY REPRESENTATIVE SIGNATURE:

DATE: 05/01/2026
LIC9099 (FAS) - (06/04)
Page: 2 of 4
Control Number 13-CC-20260303091425
STATE OF CALIFORNIA - HEALTH AND HUMAN SERVICES AGENCY

COMPLAINT INVESTIGATION REPORT (Cont)		CALIFORNIA DEPARTMENT OF SOCIAL SERVICES
COMMUNITY CARE LICENSING DIVISION
CHICO-DAY CARE, 520 COHASSET RD., SUITE 170
CHICO, CA 95926
FACILITY NAME: STORYBOOK SCHOOLHOUSE
FACILITY NUMBER: 045408438
VISIT DATE: 05/01/2026
NARRATIVE
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Exit interview conducted and report was reviewed with Pengshang "Emma" Ouyang. Appeal rights were provided.

A notice of site visit was given and must remain posted for 30 days. Failure to comply with posting requirements shall result in an immediate civil penalty of $100.

SUPERVISORS NAME: Megan Aviles
LICENSING EVALUATOR NAME: Erica Laird
LICENSING EVALUATOR SIGNATURE:

DATE: 05/01/2026
I acknowledge receipt of this form and understand my licensing appeal rights as explained and received.
FACILITY REPRESENTATIVE SIGNATURE:

DATE: 05/01/2026
LIC9099 (FAS) - (06/04)
Page: 3 of 4
Control Number 13-CC-20260303091425
STATE OF CALIFORNIA - HEALTH AND HUMAN SERVICES AGENCY

COMPLAINT INVESTIGATION REPORT (Cont)		CALIFORNIA DEPARTMENT OF SOCIAL SERVICES
COMMUNITY CARE LICENSING DIVISION
CHICO-DAY CARE, 520 COHASSET RD., SUITE 170
CHICO, CA 95926

FACILITY NAME: STORYBOOK SCHOOLHOUSE
FACILITY NUMBER: 045408438
DEFICIENCY INFORMATION FOR THIS PAGE:
VISIT DATE: 05/01/2026
Deficiency Type
POC Due Date /
Section Number
DEFICIENCIES
PLAN OF CORRECTIONS(POCs)
Type B
05/15/2026
Section Cited
CCR
101219(4)
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(4) Modification conditions, including the requirement that the child's authorized representative be given at least 30-calendar-days prior written notice of any basic rate change.
This requirement was not met as evidence by:
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Licensee shall notify all parents of the rate increase to include an effective date. Licensee shall submit a copy of the notification to CCL by 5/15/26.

erica.laird@dss.ca.gov
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Based on interviews and documentation received, the licensee did not comply with the section cited above which poses a potential health, safety or personal rights risk to children in care.
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Failure to correct the cited deficiency(ies), on or before the Plan of Correction (POC) due date, may result in a civil penalty assessment.
SUPERVISORS NAME: Megan Aviles
LICENSING EVALUATOR NAME: Erica Laird
LICENSING EVALUATOR SIGNATURE:

DATE: 05/01/2026
I acknowledge receipt of this form and understand my appeal rights as explained and received.
FACILITY REPRESENTATIVE SIGNATURE:

DATE: 05/01/2026
LIC9099 (FAS) - (06/04)
Page: 4 of 4