We believe California's child care and development system has several serious design flaws. Most notably, families accessing some subsidized child care programs may choose among a broad array of providers whereas families accessing other programs have access to child care only offered in particular places. In addition, some child care programs are required to include developmentally appropriate activities whereas other programs are required to meet only health and safety standards. While these two elements--choice and developmentally appropriate care--are strengths of specific child care programs, the fundamental shortcoming of California's current system is that no subsidized program exhibits both of these strengths concurrently. Given the serious shortcomings of the state's child care and development system, we recommend the Legislature fundamentally restructure it. Our report lays out a plan for a new, simplified, more rational system that treats similar families similarly. Since a fundamental restructuring would take time, the report also includes a roadmap that the Legislature could use for incrementally moving to this new system.