Budget & Taxes

Proposition 117, an initiative measure approved by the electors at the June 5, 1990, direct primary election, enacted the California Wildlife Protection Act of 1990. The act creates the Habitat Conservation Fund and requires the moneys in the fund to be used for specified purposes generally relating to the acquisition, enhancement, or restoration of wildlife habitat. The act requires the Controller, until June 30, 2020, to annually transfer $30,000,000 from the General Fund to the Habitat Conservation Fund, less any amount transferred to the Habitat Conservation Fund from specified accounts and funds. The act, until July 1, 2020, continuously appropriates specified amounts from the Habitat Conservation Fund to the Department of Parks and Recreation, the State Coastal Conservancy, the Santa Monica Mountains Conservancy, and the California Tahoe Conservancy, and continuously appropriates the balance of the fund to the Wildlife Conservation Board. Chapter 31 of the Statutes of 2019 requires the Controller to continue to annually transfer $30,000,000 from the General Fund, less any amount transferred to the Habitat Conservation Fund from specified accounts and funds, to the Habitat Conservation Fund until June 30, 2030, and continuously appropriates that amount on an annual basis in the same proportions to the specified entities until July 1, 2030. This bill would require the Controller to continue to annually transfer $30,000,000 from the General Fund, less any amount transferred to the Habitat Conservation Fund from specified accounts and funds, to the Habitat Conservation Fund until June 30, 2035, and would continuously appropriate that amount on an annual basis in the same proportions to the specified entities described above until July 1, 2035.

Existing law appropriates, for the 2023–24 fiscal year, $375,000,000 from the General Fund to the State Air Resources Board for the California Hybrid and Zero-Emission Truck and Bus Voucher Incentive Project (HVIP) to fund grants to local educational agencies, as defined, for zero-emission schoolbuses to replace heavy-duty internal combustion schoolbuses owned by local educational agencies, as specified. Existing law requires any schoolbuses that are replaced pursuant to the HVIP to be scrapped no later than 24 months from date of delivery of the replacement. Existing law requires grantees to provide to the state board proof of scrap of the retired internal combustion schoolbus or schoolbuses. This bill would exclude a schoolbus from that scrapping requirement if the schoolbus is 25 years of age or less at the time of delivery of the replacement vehicle and its ownership is transferred to a frontier local educational agency meeting certain requirements.

Existing law establishes the Department of Financial Protection and Innovation under the direction of the Commissioner of Financial Protection and Innovation. Existing law makes the department responsible for administering various laws relating to financial institutions, including the Banking Law, the California Credit Union Law (CCUL) , and the California Residential Mortgage Lending Act (CRMLA) , a willful violation of which is punishable as a misdemeanor. The CRMLA requires, as often as the commissioner deems necessary and appropriate, but at least once every 48 months, the commissioner to examine the affairs of each residential mortgage lender and servicer licensee for compliance with the CRMLA. The CRMLA authorizes the commissioner to examine the licensee's officers, directors, employees, or agents under oath regarding the licensee's operations. The CRMLA requires the commissioner to provide a written statement, the disclosure of which is subject to certain restrictions, of the findings of the examination, issue a copy of that statement to each licensee's principals, officers, or directors, and take appropriate steps to ensure correction of any violations of the CRMLA. This bill, the California Fair Lending Examination Act, would require, under the Banking Law and the CCUL, the commissioner to, at least once every 4 years, examine, as prescribed, the books and records of certain entities subject to the commissioner's examination authority under those laws for compliance with any nondiscrimination law applicable to mortgage lending, as specified, and would require the commissioner to provide a written statement of the findings of that examination, issue a copy of that statement to the subject's principals, officers, or directors, and take appropriate steps to ensure correction of any violations of applicable nondiscrimination laws. The bill would prohibit disclosure of that statement to anyone other than the subject entity, law enforcement officials, or other state or federal regulatory agencies for further investigation and enforcement. This bill would, as part of the above-described examination required by the CRMLA, require the commissioner to additionally examine the licensee for compliance with any nondiscrimination law applicable to mortgage lending, as prescribed. This bill would make a violation of an applicable nondiscrimination law a violation of the Banking Law, the CCUL, or the CRMLA, as applicable, and would authorize, under the Banking Law and the CCUL, the commissioner to examine the applicable entity's officers, directors, employees, or agents under oath regarding the entity's operations. By expanding the scope of the crimes of perjury and of violating the CRMLA, this bill would impose a state-mandated local program. Existing constitutional provisions require that a statute that limits the right of access to the meetings of public bodies or the writings of public officials and agencies be adopted with findings demonstrating the interest protected by the limitation and the need for protecting that interest. This bill would make legislative findings to that effect. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason.

Existing law, the Governor's Reorganization Plan No. 1 of 2025, beginning July 1, 2026, eliminates the Business, Consumer Services, and Housing Agency and instead establishes the Business and Consumer Services Agency and the California Housing and Homelessness Agency (agency) . Existing law requires the agency to coordinate with the California Health and Human Services Agency and the California Consumer Protection Agency on various state policies, including housing. This bill would require the agency to create a study on issues impacting pregnant people experiencing homelessness and report the results of the study, as well as recommendations to establish a PINK Alert, to the Legislature by July 1, 2028. The bill would require the recommendations to include how the PINK Alert can meet specified conditions, including that it be a system that nonprofits can opt in to in order to get notifications if there is a pregnant person in need of emergency housing or prenatal services.

Existing law creates the California Computer Science Coordinator as a position within the State Department of Education to provide statewide coordination in, among other things, implementing the computer science content standards and leading the implementation of the Computer Science Strategic Implementation Plan, as provided. This bill would establish the California Computer Science Demonstration Grant Program for specified purposes, including increasing the number of public high schools offering a computer science course to increase pupil access to computer science education and increasing the computer science course access of pupils eligible for free or reduced-priced meals and pupils that are underrepresented in the field of computer science. The bill would also establish the California Computer Science Demonstration Grant Program Working Group that includes the coordinator and nonprofit organizations and private industry stakeholders with relevant expertise and experience in computer science education. The bill would authorize only public high schools that do not offer computer science courses to be eligible to voluntarily participate in the grant program. The bill would require the funding entity or funding entities, as defined, to administer the grant program. If there are multiple funding entities, the bill, among other things, would require each funding entity to determine how the funds that it contributes to the grant program will be spent, provided that expenditure aligns with the grant program's purposes, and require the funding entities to coordinate implementation of the grant program. The bill would require the funding entities, in coordination with the working group, to select the public high schools to participate in the grant program, as provided. The bill would require the grant program to be funded through contributions, gifts, grants, in-kind donations, and donations from the funding entity or funding entities, and would specify the allowable uses of those funds. The bill would require the funding entity or funding entities, in coordination with the working group, to evaluate the effectiveness of the grant program and submit an interim report to certain legislative committees on or before August 1, 2027, and a final report on or before July 1, 2028, as specified. The bill would repeal the grant program's provisions as of January 1, 2029. The bill would separately require the department, on or before June 30, 2028, and annually thereafter, to publicly post specified computer science course-related data on its internet website, as specified.

(1) Existing law, the Child Care and Developmental 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 authorizes, upon departmental approval, the use of appropriated funds for alternative payment programs to allow for maximum parental choice. Existing law authorizes those programs to include, among other things, a subsidy that follows the family from one provider to another, or choices among hours of service. Under existing law, effective July 1, 2025, through June 30, 2026, reimbursement of state-subsidized childcare and development providers and license-exempt providers is to be based on the maximum authorized hours of care, as specified. Existing law, the Early Education Act, requires the Superintendent of Public Instruction to provide an inclusive and cost-effective preschool program. Under existing law, commencing January 1, 2023, through June 30, 2026, reimbursement of California state preschool family childcare home education network providers is to be based on the maximum certified hours of care, as specified. This bill would extend the period in which reimbursement of state-subsidized childcare and development providers, license-exempt providers, and California state preschool family childcare home education network providers is based on the maximum authorized or certified, as applicable, hours of care to July 1, 2028. (2) Existing law allocates certain appropriated funds to the State Department of Social Services and the State Department of Education to provide specified family childcare providers and childcare centers with a monthly cost of care plus rate commencing January 1, 2024, and through June 30, 2026. The monthly cost of care plus rate is a supplemental monthly payment to those providers and centers. Existing law establishes the base amount of the monthly cost of care plus rate and, for the period from July 1, 2025, to June 30, 2026, provides for an increase to that base amount. This bill would extend the payment of the monthly cost of care plus rate, including the increase, indefinitely, for those family childcare providers and childcare centers. The bill would additionally establish a one-time payment to family daycare providers for the total amount of the increase for each month or partial month occurring between July 1, 2025, and December 30, 2025. The bill would require the payment to be paid to providers by January 1, 2026, contingent on full ratification by September 30, 2025, of the tentative agreement received between the State of California and the Child Care Providers United - California (CCPU) on August 7, 2025. The bill would specify that, if full ratification of the tentative agreement is not achieved by September 30, 2025, the January 1, 2026, deadline for the payment would not be applicable; however, the bill would require, if the payment is not made by January 1, 2026, that providers receive an increase to the one-time payment, as specified. The bill would also require those family daycare providers and childcare centers to receive a one-time, per-child stabilization payment. That payment would be $431 for licensed family childcare providers and childcare centers and $300 for license-exempt family childcare providers. The bill would require, if the tentative agreement described above is ratified by September 30, 2025, this one-time payment to be made to family childcare providers by January 1, 2026. This bill would appropriate $157,852,000 from the General Fund to the State Department of Social Services for the purpose of making those one-time stabilization payments to family childcare providers and childcare centers, as specified. The bill would also approve the agreement dated August 7, 2025, entered into by the Governor and Child Care Providers United - California, in its sole capacity as the certified provider organization representing family childcare providers, as specified. (3) Existing law establishes, and appropriates funds to, the Joint Child Care Providers United - State of California Training Partnership Fund and the Child Care Providers United - California (CCPU) Workers Health Care Fund. Existing law also appropriates funds to the State Department of Social Services for a one-time contribution payable to Child Care Providers United - California (CCPU) , or its designee, for the establishment of the CCPU Retirement Trust. This bill would, for each year of the tentative agreement described above, from July 1, 2025, to July 1, 2028, inclusive, require funds to be allocated in the annual Budget Act, upon approval of the Department of Finance, to those funds and trust. (4) This bill would declare that it is to take effect immediately as a bill providing for appropriations related to the Budget Bill.

Existing law establishes the Medi-Cal program, which is administered by the State Department of Health Care Services and under which qualified low-income individuals receive health care services, including emergency or nonemergency medical or nonmedical transportation services. The Medi-Cal program is, in part, governed and funded by federal Medicaid program provisions. Under this bill, commencing on July 1, 2027, and subject to an appropriation, Medi-Cal fee-for-service reimbursement for nonemergency ambulance transportation services, as defined, would be in an amount equal to 80% of the amount set forth in the federal Medicare ambulance fee schedule for the corresponding level of service, adjusted by the Geographic Practice Cost Index, as specified. The bill would require the department to establish a Medi-Cal managed care directed payment program for nonemergency ambulance transportation services, with the reimbursement rates set in an amount equal to at least the amount set forth under fee-for-service reimbursement. The bill would require the department to maximize federal financial participation in implementing the above-described provisions to the extent allowable. To the extent that federal financial participation is unavailable, the bill would require the department to implement the provisions using state funds, as specified. Under the bill, whenever the medical necessity of nonemergency ambulance transportation services needs to be certified for purposes of Medi-Cal coverage, either a physician or a nonphysician authorized under certain federal regulations would be permitted to complete that certification, as specified. The bill would require the department to revise and update the Medi-Cal provider manual or any guidance, as applicable, to implement this provision. Existing Medi-Cal regulations require that records of medical transportation providers include, among other information, odometer readings at each pickup and delivery location. Under this bill, for purposes of documenting mileage in their records under the Medi-Cal program, medical transportation providers would be authorized to utilize vehicle Global Positioning System (GPS) tracking, digital mapping software or applications, or another reasonable mechanism identified by the department, as specified, in addition to the above-described odometer readings. The bill would require the department to revise and update any corresponding regulations, including the above-described provision.

(1) Existing law sets forth a method for providing special education and related services to pupils with exceptional needs. Existing law permits, under certain circumstances, contracts to be entered into for the provision of those services by nonpublic, nonsectarian schools or agencies. Existing law defines "nonpublic, nonsectarian school" and "nonpublic, nonsectarian agency" for these purposes. Existing law authorizes a master contract for special education and related services provided by a nonpublic, nonsectarian school or agency only if the school or agency has been certified as meeting specified standards. Existing law sets forth the certification process and procedures for the nonpublic, nonsectarian schools or agencies that seek certification from the Superintendent of Public Instruction, including that the school or agency file an application with specified information. Existing law requires the Superintendent, before certification of a nonpublic, nonsectarian school or agency, to conduct an onsite review of the facility and program for which the applicant seeks certification and authorizes the Superintendent to verify that the school or agency has received a successful criminal background check clearance and has enrolled in subsequent arrest notice service for each owner, operator, and employee of the school or agency. Existing law requires the Superintendent to monitor the facilities, educational environment, and quality of the educational program of an existing certified nonpublic, nonsectarian school or agency on a 3-year cycle, as provided. Existing law requires the master contract for nonpublic, nonsectarian school or agency services to include, among other things, an individual service agreement for each pupil placed by a local educational agency. Existing law requires a contracting local educational agency to pay the full amount of the tuition or fees, as applicable, for individuals with exceptional needs who are enrolled in programs or receiving services provided pursuant to the contract. Existing law requires a master contract for nonpublic, nonsectarian school or agency services to be developed in accordance with specified provisions, including, among others, that the master contract specify the general administrative and financial agreements, including teacher-to-pupil ratios, between the school or agency and the local educational agency to provide the special education and designated instruction services. Existing law requires a certified nonpublic school or agency to provide written notification to the State Department of Education and the local educational agency with which it has a master contract of any pupil-involved incident at the school or agency in which law enforcement was contacted. This bill would eliminate the requirement that nonpublic schools or agencies that enter into contracts for the provision of special education services be nonsectarian. The bill would (A) exclude from the above-described tuition or fees the amount attributable to the provision of religious instruction, which the bill would define for these purposes, (B) prohibit public funds paid pursuant to those contracts from being used to pay for religious instruction at a nonpublic school or agency, (C) prohibit a nonpublic school or agency from providing religious instruction to pupils placed by a local educational agency, as provided, (D) require an applicant seeking an initial or renewal certification to certify, under penalty of perjury, that all educational services provided to pupils placed by a local educational agency under a master contract with a local educational agency are secular, neutral, and respectful regarding religion and religious view, as provided, and (E) notwithstanding any other law, prohibit a nonpublic school or agency, in performing services under a master contract, individual service agreement, or individualized education program, from subjecting any person to discrimination on the basis of specified protected characteristics. By expanding the crime of perjury, the bill would impose a state-mandated local program. The bill would require a master contract and individual services agreement for nonpublic school or agency services to contain provisions requiring compliance with those 5 described provisions. The bill would require the above-described application for a nonpublic school seeking certification from the Superintendent to include (A) an assurance that the nonpublic school has requested from the Commission on Teacher Credentialing a list of all credentialholders who have had final adverse action taken against their credential, (B) commencing July 1, 2027, documentation that specified staff and administrators have obtained fingerprint clearance with the commission, as provided, (C) commencing January 1, 2028, a list of staff providing instruction and services to pupils in the state and copies of their credentials, as specified, and (D) affidavits and assurances necessary to comply with all applicable federal, state, and local laws and regulations that include criminal record summaries and subsequent arrest notifications required of all nonpublic school personnel, including contractors, having contact with minor children. The bill would require, instead of authorize, the Superintendent to verify that a nonpublic school or agency seeking certification has received a successful criminal background check clearance and has enrolled in subsequent arrest notice service for each owner, operator, employee, and contractor of the nonpublic school or agency, as applicable. The bill would require the Superintendent, as part of monitoring the quality of the educational program of an existing certified nonpublic school, to also monitor the criminal background checks required for employment and pupils' receipt of any mandated instruction required for all pupils of local educational agencies, as specified. The bill would require the Superintendent, as part of monitoring an existing certified nonpublic agency, to instead monitor the agency for compliance with applicable statutory and regulatory requirements. The bill would require the department to (A) require each person employed by a nonpublic school interacting with a California pupil to undergo a fingerprint-based state and national criminal history background check, (B) submit those fingerprints, and (C) request subsequent arrest records, as specified. The bill would require the Department of Justice to provide a state and federal response to those requests in accordance with specified provisions. The bill would require a certified nonpublic school to additionally provide written notification to the department and the local educational agency with which it has a master contract of any pupil-involved incident at the school resulting in, among other things, a serious injury to a pupil, as specified, or the commencement of an investigation into an employee or contractor involving an allegation of misconduct. The bill would require a nonpublic school employing a person with a credential to report any change in employment status of the credentialholder to the commission within 30 days if the change in status is a result of an allegation of misconduct, as specified. The bill would also make conforming changes. (2) Existing law authorizes the Superintendent to revoke or suspend the certification of a nonpublic, nonsectarian school or agency for specified reasons, including, among other reasons, failure to notify the department in writing within 45 days of certain occurrences, including changes in staff or facilities, failure to notify the Superintendent in writing within 10 days of revocation or suspension of a license or permit, and failure to notify the Superintendent in writing within 10 days of the death of a pupil. This bill would, among other things, require, instead of authorize, the suspension or revocation of the certification of a nonpublic school or agency for any of those specified reasons, and would revise the above-described notification timelines, as specified. If an investigation conducted by the department results in a finding that pupil health or safety has been compromised or is in danger of being compromised at a nonpublic, nonsectarian school or agency, existing law authorizes the department to immediately suspend or revoke the certification of the nonpublic, nonsectarian school or agency. This bill would require, instead of authorize, the department to take the above-described action. (3) Existing law authorizes the governing board of a school district or a county board of education to request the State Board of Education to waive all or part of specified education laws or regulations adopted by the state board, as provided, with exceptions. Existing law requires the state board to approve any and all requests for waivers except in those cases where the state board specifically finds, among other things, that the educational needs of the pupils are not adequately addressed. This bill would prohibit the state board from waiving all or part of any laws relating to special education pursuant to the above-described provisions. Existing law authorizes a public agency, as defined, to request the state board to grant a waiver of any provision of education laws or regulations adopted pursuant to those provisions if the waiver (A) is necessary or beneficial to the content and implementation of a pupil's individualized education program and (B) does not abrogate any rights provided to individuals with exceptional needs and their parents or guardians, or affect the compliance of a local educational agency with specified federal regulations. Existing law authorizes the state board to grant, in whole or in part, any of those requests when the facts indicate that a failure to do so would hinder implementation of a pupil's individualized education program or compliance by a local educational agency with specified federal mandates. This bill would prohibit a waiver submitted by a public agency on or after January 1, 2027, that is related to the placement of a pupil other than at a local educational agency to waive specified requirements from being approved unless it includes, among other things, a description of how the public agency requesting the waiver will oversee and evaluate the pupil's placement and that certain requirements are met, as provided. (4) Existing law requires the Commission on Teacher Credentialing to establish standards and procedures for the issuance and renewal of credentials, certificates, and permits. Existing law requires the commission to make available to each private school a listing of all credentialholders who have had final adverse action taken against their credential which is required to be identical to that made available to public schools in the state. This bill would require the commission to also make available the above-described listing to the State Department of Education. The bill would require the department to request notice from the commission regarding the list, monitor the status of the credentialholders at nonpublic schools, and confirm that a credentialholder has been removed from contact with California pupils when a credentialholder has their credential suspended or revoked, and would impose the same requirements on a local educational agency with respect to each nonpublic school that it has a master contract with, as provided. (5) This bill would incorporate additional changes to Section 48986 of the Education Code proposed by AB 1943 to be operative only if this bill and AB 1943 are enacted and this bill is enacted last. This bill would incorporate additional changes to Section 51225.2 of the Education Code proposed by AB 1659 to be operative only if this bill and AB 1659 are enacted and this bill is enacted last. (6) The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason.

The Budget Act of 2018 appropriated $50,000,000 to the Board of State and Community Corrections for a grant program, known as the Adult Reentry Grant Program, for the purpose of awarding competitive grants to community based organizations to support offenders formerly incarcerated in state prison. The Budget Act of 2018 allocated a specified amount of those funds for, among other things, rental assistance, rehabilitation of existing property or buildings, and to support the warm hand-off and reentry of offenders transitioning from prison to communities. Subsequent budget acts have continued to fund the program. This bill, instead, commencing July 1, 2026, and upon appropriation of funds, would transfer the administration of the grant program to the Department of Housing and Community Development. The bill would require the department, on or before December 1, 2026, to modify the grant program to provide 5-year renewable grants to geographically diverse regional administrators responsible for funding permanent supportive housing and reentry services for eligible people, as specified. The bill would require the department to issue proposed guidelines or a draft notice, as specified, establishing the grant program and require the department to competitively score applicants applying for grant funds as regional administrators. The bill would require the department to work collaboratively with the State Department of Health Care Services, Department of Corrections and Rehabilitation, and homeless continuums of care, and seek to work collaboratively with county probation departments, to establish a process for referrals of people eligible to participate in the program, as specified. The bill would also require the department to establish specified benchmarks to promote and track ideal outcomes from the program. This bill would require the department to distribute program funds by executing contracts with awarded regional administrators and would impose certain requirements on those regional administrators. The bill would prescribe eligibility requirements for a person scheduled for release from, or who has been be formerly incarcerated in, state prison, to participate in the program. The bill would require program funds to be used for specified purposes, including specified administrative fees, permanent housing, rental and operating subsidies, incentives to landlords, and voluntary multidisciplinary services, as specified. The bill would require the department, upon implementation of the program, to design an evaluation and hire an independent evaluator to assess outcomes from the program, and would require the evaluation to be submitted to specified committees of the Legislature. This bill would require the board to continue to oversee and administer existing program grants that have not yet expired, using resources allocated to the board through funds allocated by the Budget Act of 2025. This bill would require the Department of Corrections and Rehabilitation to establish a process to engage an individual scheduled for discharge, within at least 210 days of the scheduled release date, for the purpose of assessing the individual's risk of homelessness upon discharge, as specified.

(1) Existing law, 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. Under the act, families that meet specified requirements are eligible for federal and state subsidized childcare and development services, and a family that establishes initial eligibility or ongoing eligibility for these services is considered to meet all eligibility and need requirements for those services for not less than 24 months, except as specified. Existing federal regulations require a minimum of 12 months of eligibility for these services before a redetermination of eligibility is made. This bill would, if a family already receiving childcare services adds an additional child and requests services for that child during the current eligibility period, extend the family's eligibility period, as necessary, to ensure that the additional child receives at least 12 months of eligibility for services before a redetermination of eligibility, as specified. (2) Existing law requires the State Department of Social Services to annually report to the Department of Finance and the Legislature a statewide summary identifying the estimated funding used in general childcare and development programs for infants and toddlers, and the number of preschool age children receiving part-day preschool and wraparound childcare services. This bill would delete the requirement for that report to identify the number of preschool age children receiving part-day preschool and wraparound childcare services. (3) Existing law requires the State Department of Social Services to contract with local contracting agencies for alternative payment programs for childcare services to be provided throughout the state. Existing law requires an alternative payment program to reimburse a licensed childcare provider in accordance with a biennial market rate survey, as specified, at a rate not to exceed the regional market rate ceiling, as prescribed. Under existing law, reimbursements to childcare providers based upon a daily rate may only be allowed under certain circumstances, including that a family has an unscheduled but documented need of 6 hours or more per occurrence that exceeds the certified need for childcare or a family has a documented need of 6 hours or more per day that exceeds no more than 14 days per month. This bill would reduce the documented need for reimbursements to childcare providers based upon a daily rate from 6 hours or more to 5 hours or more, as described. (4) Existing law allocates certain appropriated funds to the State Department of Social Services and State Department of Education to provide specified family childcare providers and childcare centers with a monthly cost of care plus rate commencing January 1, 2024, and through June 30, 2026. The monthly cost of care plus rate is a supplemental monthly payment to those providers and centers. This bill would extend the payment of the monthly cost of care plus rate to June 30, 2026, and would allocate additional funds to the State Department of Social Services and State Department of Education from the Budget Act of 2025 to provide a once-per-month cost of care plus rate for each child served who is enrolled in subsidized childcare, therefore making an appropriation. From July 1, 2025, to June 30, 2026, inclusive, the bill would require that monthly rate to be equal to the existing rate increased by a percentage calculated by the Department of Finance based on a specified formula. (5) Existing law provides for a specified annual funding increase for special education and childcare and development programs if an inflation or cost-of-living adjustment is not otherwise provided for those programs. Existing law suspends the annual cost-of-living adjustment for childcare and development programs for the 2012–13, 2013–14, 2014–15, and 2020–21 fiscal years. This bill would additionally suspend the annual cost-of-living adjustment for childcare and development programs for the 2025–26 fiscal year. (6) Existing law requires the State Department of Social Services, in collaboration with the State Department of Education, to implement a reimbursement system plan that establishes reasonable standards and assigned reimbursement rates for state-subsidized childcare and development services. Existing law also requires the department, in collaboration with the State Department of Education, to develop and conduct an alternative methodology, as specified, to set reimbursement rates for state-subsidized childcare and development services. Existing law requires the department, from October 1, 2024, to January 1, 2026, inclusive, to provide the Assembly Committee on Budget, the Senate Committee on Budget and Fiscal Review, and the Legislative Analyst's Office with quarterly updates on the implementation of the new reimbursement rates set under the alternative methodology. If a market rate survey is used to set reimbursement rates, existing law requires the department to contract to conduct a regional market rate survey no more than once every 2 years, as specified. This bill would extend the timeframe during which the above-described quarterly update is required to July 1, 2027, and require the department to include additional specified information commencing with the quarterly update due October 1, 2025. The bill would, commencing July 1, 2026, increase rates for specified programs by the cost-of-living adjustment granted by the Legislature annually, as specified. This bill would express the intent of the Legislature to cease using a regional market rate survey and to instead use an alternative methodology to inform the setting of future childcare rates, and to set reimbursement rates that are informed by the alternative methodology by statute. The bill would further express the intent of the Legislature that specified programs be reimbursed under a unified structure that takes into account a common set of rate elements, that base rates be administered as a per-child amount, and that rate levels be informed by, and rates vary based on, specified criteria. (7) Existing law also requires, for California state preschool programs and childcare and development programs, the State Department of Education and the State Department of Social Services to collaborate to implement a reimbursement system plan that establishes reasonable standards and assigned reimbursement rates. Existing law requires the reimbursement rate to be increased by the above-described cost-of-living adjustment, except for specified fiscal years, including the 2024–25 fiscal year. This bill would, commencing July 1, 2026, require the cost-of-living adjustment for state preschool programs to be consistent with the adjustment granted by the Legislature annually, as specified. The bill would additionally suspend the annual cost-of-living adjustment for the 2025–26 fiscal year. (8) Existing law requires, commencing January 1, 2022, those California state preschool program contractors and childcare and development program contractors who, as of December 31, 2021, received the established standard reimbursement rate to be reimbursed at the greater of the 75th percentile of the 2018 regional market rate survey or the contract per-child reimbursement amount as of December 31, 2021, as increased by a specified cost-of-living adjustment. This bill would instead require, commencing July 1, 2025, and through June 30, 2026, if the program is open and operating in accordance with its approved program calendar and remains open and providing services to certified children throughout the program year, the contract reimbursement to be based on the lesser of the maximum reimbursable amount stated in the contract and the net reimbursable program costs. The bill would also require, commencing July 1, 2026, the contract reimbursement to be based on the lesser of the maximum reimbursable amount stated in the contract, the net reimbursable program costs, or the product of the adjusted child days of enrollment for certified children times the contract rate set forth in the above-described provisions. (9) Existing law also requires the State Department of Social Services, in the administration of childcare and development programs, to contract with local contracting agencies for a variety of alternative payment programs for childcare services to be provided throughout the state. Existing law requires alternative payment programs to reimburse childcare providers based upon actual days and hours of attendance. This bill would, beginning July 1, 2025, and through June 30, 2026, instead require those programs to reimburse childcare providers based on families' certified need, as specified, and would appropriate $88,550,000 from the General Fund for this purpose. (10) Existing law authorizes family childcare providers to form, join, and participate in the activities of provider organizations and to seek the certification of a provider organization to act as the representative for family childcare providers on matters related to childcare subsidy programs pursuant to a petition and election process overseen by the Public Employment Relations Board or a neutral third party designated by the board. Existing law requires the Governor and a certified provider organization to jointly prepare a memorandum of understanding if an agreement is reached, which is required to be presented to the Legislature for determination, and which would be binding on all state departments and agencies, and their contractors and subcontractors, and any political subdivision of the state, that are involved in the administration of state-funded early care and education programs. If the above-described reimbursement rate provisions are in conflict with a memorandum of understanding between the Governor and a certified provider organization, the bill would require the memorandum of understanding to be controlling without further legislative action, except as specified. (11) This bill would declare that it is to take effect immediately as a bill providing for appropriations related to the Budget Bill.