(a) (1) On or before July 1, 2019, an alternative payment program shall establish a program of electronic banking for payments made to licensed or license-exempt child care providers that have a contract with that alternative payment program, including, but not limited to, direct deposit. A child care provider may choose to receive payments via electronic banking at the child care provider’s option. The child care provider may, but is not required to, authorize payment to be directly deposited by an electronic fund transfer into the child care provider’s account at the financial institution of their choice.

(2) Nothing in this subdivision shall preclude an alternative payment program that has an electronic banking program in place before the effective date of this subdivision from continuing to require a child care provider, including child care centers and family child care homes, to accept direct deposit or another form of electronic payment after the effective date of this subdivision.

(b) An alternative payment program shall include a description of the payment to the child care provider, by child served and month of service covered by the payment.

(Added by Stats. 2021, Ch. 116, Sec. 260. (AB 131) Effective July 23, 2021.)