Early childhood education and childcare: alternative payment programs.

New Section 10234.5 requires the Department of Social Services to identify unspent or projected unexpended moneys from all subsidized childcare programs (general, migrant, CalWORKs Stages 1-3, and other state/federally funded programs) at least quarterly and redirect them to a new 'Alternative Payment Program Enrollment Fund' in the State Treasury. All moneys in the fund are continuously appropriated without fiscal year limits for enrolling additional eligible families in alternative payment programs.

The bill's appropriation status changed from 'no' to 'yes' because the new continuously appropriated fund constitutes an appropriation. The bill title now includes 'and making an appropriation therefor.'

Section 10234.5 establishes expenditure priorities: contractors with demonstrated capacity to enroll more families, families on waitlists or in eligibility determination, and continuity of care including sibling placements. It also requires a streamlined transfer process and prohibits administrative delays that would prevent timely obligation or expenditure.

A new Section 1 containing eight legislative findings (childcare as workforce infrastructure, unspent funds due to administrative barriers, role of alternative payment contractors, etc.) and three statements of legislative intent was added at the beginning of the bill.

The legislative counsel's digest was expanded with new paragraphs describing existing federal TANF block grant law, CalWORKs program structure, and the three stages of county-managed childcare services, providing more context for the bill's provisions.

The payroll contribution rates in Section 10234.4 had placeholder underscores removed, changing from '____ 0.03 percent' and '____ 0.01 percent' to simply '0.03 percent' and '0.01 percent,' confirming the final rates.

The bill was reformatted from a paginated PDF-style layout with line numbers and page breaks to a continuous web-based text format. No changes were made to the substantive content of the bill.

Creates the California Alternative Payment Support Program (CAPSP) as a new chapter in the Welfare and Institutions Code, establishing a dedicated state program to augment funding for alternative payment childcare programs.

Establishes a payroll tax requiring both employers and workers to contribute to a new trust fund in the State Treasury, effective July 1, 2027. The specific contribution rates are left blank (to be filled in later).

Requires alternative payment programs to reimburse providers at 100% of the cost of care once new reimbursement rates are established under the alternative methodology, increasing to 110% one year after those rates are set.

Creates a CAPSP Board consisting of the Treasurer (chair), Director of Social Services (vice chair), Director of Finance, Controller, and two legislative appointees with expertise in public social services financing.

Raises the income eligibility threshold for alternative payment programs from 85% to 90% of state median income (adjusted for family size), effective January 1, 2028. The general childcare threshold remains at 85%.

Excludes SSI and state supplemental benefits, certain child support payments under specific code sections, and guaranteed income payments (including those from the California Guaranteed Income Pilot Program) from income calculations for childcare eligibility.

Changes the required vote from a simple majority to two-thirds, and changes the fiscal committee designation from 'no' to 'yes,' reflecting the bill's new tax and funding provisions.

Section 10234.4(b) now specifies concrete payroll contribution rates: 0.03 percent of wages for employers and 0.01 percent for workers, replacing the previously blank placeholders. These rates take effect July 1, 2027.

The fiscal committee designation changed from 'no' to 'yes,' meaning the bill now carries a recognized fiscal impact requiring fiscal committee review before passage.

The act's short title dropped the standalone word 'Childcare.' and now reads only 'Early childhood education and childcare: alternative payment support program.' This is a minor labeling change with no policy effect.