Childcare services: alternative payment programs: direct deposits: reserve funds.

(1) The Child Care and Development Services Act establishes a system of childcare and development services for children up to 13 years of age and requires the State Department of Education to contract with local contracting agencies for alternative payment programs for childcare services to be provided throughout the state. The act requires the alternative payment program to reimburse childcare providers based upon specified criteria, including the actual days and hours of attendance for those families with variable schedules, or for license-exempt childcare providers that provide part-time services, up to the maximum certified hours. This bill would delete the requirement that alternative payment programs provide reimbursement based on the actual days and hours of attendance to families with variable schedules or license-exempt childcare providers. (2) The act authorizes each licensed childcare provider to alter rate levels for subsidized children once per year and requires the provider to provide the alternative payment program and resource and referral agency with the updated information, as provided. Existing law requires an alternative payment program to verify childcare provider rates no less frequently than once a year, as provided. The act requires the department to develop regulations for addressing discrepancies in the childcare provider rate levels identified through the rate verification process described above. This bill would delete these provisions. (3) The act requires an alternative payment program to provide notice to a childcare provider of specified changes relating to childcare services at least 14 calendar days before the effective date of the intended actions. This bill would instead require the alternative payment program to provide the notice, as well as the effective date of any change described above, on the same day that a notice of action is issued to a family, as provided. (4) The act requires, on and after the date on which the Superintendent of Public Instruction determines that the Financial Information System for California (Fi$Cal Project) has been implemented within the department, at the request of a contractor, the department to request the Controller to make a payment via direct deposit by electronic funds transfer through the Fi$Cal Project into the contractor's account at the financial institution of the contractor's choice, as provided. This bill would instead require, at the request of a contractor, the department to require the Controller to make a payment via direct deposit by electronic funds into the contractor's account at the financial institution of the contractor's choice, as provided. (5) The act authorizes a contractor to retain a reserve fund balance for alternative payment model and certificate childcare contracts, as provided. The act prohibits these funds from exceeding either 2% of the sum of the parts of each contract, as provided, or $1,000, whichever is greater. This bill would instead prohibit the funds from exceeding either 15% of the sum of the parts of each contract, as provided, or $1,000, whichever is greater.