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(a) (1) Subject to subdivision (f), the department is authorized to transfer funding, including funds that are not allocated to contracts or otherwise fully expended, across and within alternative payment programs described in Chapter 3 (commencing with Section 10225) of this part, including, but not limited to, the Migrant Alternative Payment Program.
(2) Subject to subdivision (f), the department is authorized to transfer funding, including funds that are not allocated to contracts or otherwise fully expended, across and within the following programs:
(A) Migrant childcare and development programs described in Chapter 6 (commencing with Section 10235) of this part.
(B) General childcare and development programs described in Chapter 7 (commencing with Section 10240) of this part.
(C) Family childcare home education networks described in Chapter 8 (commencing with Section 10250) of this part.
(D) Childcare and development programs for children with severe disabilities as described in Chapter 9 (commencing with Section 10260) of this part.
(b) The department shall establish criteria for transfers of funding under this section that prioritize the following:
(1) Maintaining funding for subsidized childcare services in the same county or region in which the initial award was issued.
(2) Maintaining funding within the same program type for which the funds were initially issued.
(3) Providing funds to contractors in good standing.
(4) Providing funds to areas outside of the county or region where the initial award was issued if the department determines circumstances warrant the directed funds.
(5) Supporting populations in areas that the department determines would benefit from increased funding opportunities.
(6) Supporting contractors that the department determines have the ability to immediately provide childcare services in response to exigent circumstances.
(c) The department shall review subsidized childcare awards and contracts on an individual basis to determine a contractor’s readiness to serve children pursuant to the initial award. If the department determines that the contractor has not made sufficient progress toward serving children with awarded or allocated funds, the department may partially or fully redirect those funds across and within programs as specified in subdivision (a), subject to subdivision (b).
(d) 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 administer and implement this section, in whole or in part, by means of childcare bulletins or similar instructions from the department until regulations are adopted.
(e) By no later than October 1 of each year, the department shall update the Assembly Committee on Budget, the Senate Budget and Fiscal Review Committee, and the Legislative Analyst’s Office on transfers made pursuant to this section. The update shall include all of the following information:
(1) The amount of funds transferred pursuant to this section during the prior year, disaggregated by program, and the number of slots associated with these funds.
(2) The amount of funds transferred pursuant to this section to another childcare and development program.
(3) The amount of funds transferred pursuant to this section that remained within the same childcare and development program.
(f) (1) This section shall only be implemented to the extent not prohibited by federal law, regulation, and directives.
(2) This section shall only be implemented if, and to the extent to which, the department determines that children served by the programs specified in subdivision (a) may be provided with better service through the redirection of funds across and within those programs.