Welf. & Inst. Code, § 10372.5

(a) The third stage of childcare begins when a funded space is available. CalWORKs recipients are eligible for the third stage of childcare. Persons who received a lump-sum diversion payment or diversion services and former CalWORKs participants are eligible if they have an income that does not exceed 85 percent of the state median income pursuant to Section 10271.5. The third stage shall be administered by programs contracting with the department. Parents’ eligibility for childcare and development services will be governed by Section 10271 and regulations adopted by the department.

(b) In order to move welfare recipients and former recipients from their relationship with county welfare departments to relationships with institutions providing services to working families, it is the intent of the Legislature that families that are former recipients of aid, or are transitioning off aid, receive their childcare assistance in the same fashion as other low-income working families. Therefore, it is the intent of the Legislature that families no longer rely on county welfare departments to obtain childcare subsidies beyond the time they are receiving other services from the welfare department.

(c) A county welfare department shall not administer the third stage of childcare for CalWORKs recipients except to the extent to which it delivered those services to families receiving, or within one year of having received, Aid to Families with Dependent Children prior to the enactment of this section.

(d) This chapter does not preclude county welfare departments from operating an alternative payment program under contract with the department to serve families referred by child protective services.