(1) The Child Care and Development Services Act establishes a system of childcare and development services for children up to 13 years of age. Existing law, until July 1, 2021, 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. Commencing July 1, 2021, existing law transfers specified childcare programs, responsibilities, services, and systems, including alternative payment programs, from the State Department of Education and the Superintendent of Public Instruction to the State Department of Social Services. 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, and provides that the
childcare providers are not required to track absences.
This bill would instead require the alternative payment program to reimburse childcare providers based upon the maximum certified hours of need, as documented, and would provide that those contractors are not required to document nonoperational days.
(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. 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 alternative payment programs and providers operating or providing services under the act to use digital signatures that comply with state and federal standards, and authorizes contractors to use digital forms to allow families to apply for services.
This bill would instead authorize the use of electronic signatures and forms.
(4) The act requires, on and after the date on which the director of the department 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.
This bill would instead require, at the request of a contractor, the department to request 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.
(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.