Welf. & Inst. Code, § 10277

(a) On or before March 1, 2024, each county and contractor that reimburses childcare providers for the provision of state-funded subsidized childcare and development services shall develop, implement, and publish a plan for timely payment to childcare providers. The plan shall include all of the following:

(1) A provision requiring that, in accordance with Section 98.45 of Title 45 of the Code of Federal Regulations, childcare providers shall be paid within 21 calendar days of the submission of either of the following:

(A) A complete monthly attendance record or invoice, as defined in subdivision (f) of Section 10227.5, for providers accepting subsidy vouchers.

(B) Daily sign-in and sign-out sheets, as referenced in Section 18065 of Title 5 of the California Code of Regulations, for providers participating in a family childcare home education network.

(2) A schedule for the payment of services that shall be signed by the childcare provider.

(3) A provision requiring that if a provider submits attendance records or invoices for multiple children and not all individual records or invoices within the submission include adequate information to provide a payment, payments shall not be withheld for those records or invoices that include adequate information to provide a payment.

(4) Procedures that establish clear processes and timelines to resolve overpayment and underpayment issues, which shall include provider written consent to recover any overpayment.

(5) A provision that if a county or contractor is unable to issue reimbursement payments within 21 calendar days pursuant to the requirement specified in paragraph (1) due to extenuating circumstances, including, but not limited to, an emergency or payment system malfunction, the impacted provider shall be notified within a reasonable timeframe of the county or contractor becoming aware of the circumstance causing the delay of reimbursement payment.

(b) Counties and contractors shall publish the plans developed pursuant to this section for childcare providers to access and reference. The plans shall be published in documents available to providers, such as provider handbooks and individual provider agreements, as appropriate.

(c) The department shall support counties and contractors with the development and implementation of the plans prepared pursuant to this section and in compliance with the requirement for timely payments. If the department becomes aware that a county or contractor is not complying with the requirements of this section, the department may issue a finding of noncompliance, and the county or contractor may be subject to corrective action.

(d) A childcare provider may submit a monthly attendance record or invoice, as defined in subdivision (f) of Section 10227.5, without a parent’s signature when the parent has not communicated with the provider for a minimum of seven consecutive days, the provider has notified the county or contractor of the parent’s lack of communication in accordance with Section 18066.5 of Title 5 of the California Code of Regulations, and the county or contractor has documented the provider’s unsuccessful attempts to collect a signature.

(e) Notwithstanding the rulemaking provisions of the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code), the department may implement and administer this section by all-county letters, bulletins, or similar written instructions until regulations are adopted.

(f) The department shall initiate a rulemaking action to adopt regulations implementing this section no later than July 1, 2026.

(g) If the provisions of this section are in conflict with the provisions of a memorandum of understanding reached pursuant to Section 10426, the memorandum of understanding shall be controlling without further legislative action, except that if such provisions of a memorandum of understanding require the expenditure of funds, the provisions shall not become effective unless approved by the Legislature in the annual Budget Act.