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

(1) The Child Care and Development Services Act, administered by the State Department of Social Services, establishes a system of childcare and development services for children up to 13 years of age. Existing law requires the department to contract with local contracting agencies for alternative payment programs for childcare services to be provided throughout the state. Existing law 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. This bill would instead require the alternative payment program to reimburse childcare providers based upon the maximum certified hours of need, as documented. (2) The act requires an alternative payment program to verify childcare provider rates no less frequently than once a year. 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 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. (4) Existing law, the Early Education Act, requires the Superintendent of Public Instruction, to, among other things, provide an inclusive and cost-effective preschool program. The Early Education Act and the Child Care and Development Services Act authorize alternative payment programs and providers operating or providing services under the acts to use digital signatures that comply with state and federal standards and authorize the use of digital forms to allow families to apply for services. This bill would instead authorize the use of electronic signatures and forms.