CA AB865

Requires alternative payment programs to reimburse childcare providers based on maximum certified hours of need as documented, rather than actual days and hours of attendance.

Deletes provisions requiring alternative payment programs to verify childcare provider rates at least annually and develop regulations for addressing rate discrepancies.

Increases the maximum reserve fund balance that contractors can retain for alternative payment model and certificate childcare contracts from 2% to 15% of contract amounts, or $1,000, whichever is greater.

Authorizes use of electronic signatures and electronic forms (instead of digital signatures and digital forms) for alternative payment programs and providers under early education and childcare services acts.

Eliminates the requirement that contractors track absences for reimbursement purposes through alternative payment programs.