BILL ANALYSIS ------------------------------------------------------------ |SENATE RULES COMMITTEE | SB 1897| |Office of Senate Floor Analyses | | |1020 N Street, Suite 524 | | |(916) 445-6614 Fax: (916) | | |327-4478 | | ------------------------------------------------------------ UNFINISHED BUSINESS Bill No: SB 1897 Author: Burton (D) Amended: 6/29/04 Vote: 21 SENATE HEALTH & HUMAN SERV. COMMITTEE : 9-3, 4/21/04 AYES: Ortiz, Alarcon, Chesbro, Escutia, Figueroa, Florez, Kuehl, Romero, Vasconcellos NOES: Aanestad, Ashburn, Battin NO VOTE RECORDED: Vincent SENATE APPROPRIATIONS COMMITTEE : 8-4, 5/20/04 AYES: Alpert, Bowen, Burton, Escutia, Karnette, Machado, Murray, Speier NOES: Battin, Aanestad, Ashburn, Poochigian NO VOTE RECORDED: Johnson SENATE FLOOR : 22-11, 5/26/04 AYES: Alpert, Bowen, Burton, Cedillo, Chesbro, Ducheny, Dunn, Escutia, Florez, Karnette, Kuehl, Machado, Murray, Ortiz, Perata, Romero, Scott, Soto, Speier, Torlakson, Vasconcellos, Vincent NOES: Aanestad, Ackerman, Battin, Brulte, Denham, Hollingsworth, Margett, McClintock, Morrow, Oller, Poochigian NO VOTE RECORDED: Alarcon, Ashburn, Figueroa, Johnson, McPherson, Sher ASSEMBLY FLOOR : Not available SUBJECT : Child care reform CONTINUED SB 1897 Page 2 SOURCE : American Federation of State, County and Municipal Employees United Child Care Union DIGEST : This bill contains a number of child care reform measures: (1) concerning the collection of data by the California Department of Education to assess subsidized and unsubsidized child care supply and demand as specified, (2) creation of a task force to develop and submit to the Legislature a Child Care and Development Workforce Development Plan, (3) states legislative intent concerning the issue of a uniform rate for child care centers and family day care services, and (4) states legislative intent concerning the establishment of provider employment pools. Assembly amendments : (1) require the Superintendent of Public Instruction's recommendations to the Legislature to include a recommendation on the most effective means to collect from family provider child care employees "educational and training attainment and linguistic capabilities" and, (2) make a clarifying change. ANALYSIS : Existing law: 1. Establishes licensure for child care centers and family child care homes. "Family child care" is provided by someone who resides in the home where care is provided. 2. Establishes a child care planning council in each county responsible for assessing and prioritizing the need for care. 3. Establishes the child care resource and referral program and requires each contractor who provides resource and referral services to maintain and report statistics on supply and demand for care. 4. Requires the state's children and families commission (California First Five) to adopt and periodically review and revise guidelines that address the availability and provision of child care services. SB 1897 Page 3 5. Requires each county children and families commission to adopt and periodically revise a strategic plan for the support and improvement of early childhood development within the county, and to report annually on or before October 15 on the implementation and achievement of program goals and objectives. 6. Requires the state children and families commission to consolidate reports from county children and families commissions with its own measures of performance, and to issue an annual report by January 31 of each year. 7. Requires the state children and families commission to maintain an account for research and development relating to early childhood development; three percent of the special tobacco tax revenue is deposited in this account. 8. Requires the state children and families commission to maintain an account for child care issues, including education and training and the development of educational materials and guidelines for child care; three percent of the special tobacco tax revenue is deposited in this account. 9. Requires the State Department of Education (SDE) to write a state plan for child care and development services, including information on training activities, to submit that plan to the federal government, and to revise it every two years. 10.Establishes family child care networks as one form of contract for the provision of subsidized care (under this rubric, a group of licensed family child care homes contracts with the state to provide child care to eligible children from low-income families). 11.Establishes a reimbursement system for subsidized child care with the following features: A. Parents can choose a licensed center or family child care home, and the state reimburses the provider the same rate that the provider charges a family who SB 1897 Page 4 is not subsidized (up to a ceiling established by state law). B. Parents can choose a provider who is not required to be licensed (usually a relative or a neighbor or a friend), and the state reimburses that provider a rate set within each county based on the mean cost of licensed care within that county. C. Parents can enroll their child or children in a center or a network of family child care homes that has a direct contract with SDE; child care in these programs is reimbursed at a daily rate established in the contract; for most contractors, that daily rate is the Standard Reimbursement Rate, set in statute and adjusted by the Legislature to reflect changes in the cost of living. D. The daily rate of direct contractors is adjusted by statutory formula for infants, for school-aged children, for children with disabilities, for children who are at risk of abuse or neglect, for children who have limited English proficiency, and for children who spend less than 6 hours per day in care or more than 8.5 hours per day in care - these are called adjustment factors (see Education Code Sections 8265.5 and 8266.1). This bill: 1. Makes several declarations of legislative intent including ensuring a link between program quality and public reimbursements for child care, and ensuring that child care providers have access to employment supports that provide for improvement of quality standards. 2. Assigns to the child development division of SDE the responsibility to assess supply and demand for subsidized and unsubsidized child care in California and report the assessment to the Superintendent of Public Instruction (SPI). 3. Directs the division when conducting the first study of supply and demand to collect aggregate and provide SB 1897 Page 5 information (see #4 below) to the Superintendent of Public Instruction. The division is required to utilize information gathered by resource and referral agencies, local child care planning councils, alternative payment providers, the University of California, and other entities. 4. Provides details of what this assessment of supply and demand shall include: types of care, types of providers, cost and quality of care, needs of working families who are eligible for subsidized care but remain unserved, needs of other working families, availability of care to special populations of children and families, the availability and types of care for families that may want or need linguistically appropriate child care, and urban and rural care. 5. Directs the SPI to provide this assessment of supply and demand to the Legislature, along with recommendations based on the assessment. 6. Provides details of what the SPI's recommendations to the Legislature shall cover: primarily related to the needs of working families and ways to increase access to care of high quality, linguistically appropriate child care and to families in urban and rural areas. 7. Requires the recommendations to include a recommendation on the most effective means for the department to collect from all employers of center or family provider child care employees, each employee's length of tenure, qualifications, and educational and training attainment and linguistic capabilities. (Programs for school-aged children, operating at a school site, serving children from that school, and administered by school personnel rather than by an outside organization are exempt from licensure.) 8. Directs the SPI to consult, while developing the assessment of supply and demand, with an advisory group comprised of parents, providers, experts, the state Department of Social Services (DSS), and representatives of child care support entities. SB 1897 Page 6 9. Requires the child development division within SDE, to the extent resources are available, to convene a task force that shall submit to the Legislature on or before January 1, 2006, a child care and development workforce development plan. 10.Prescribes the membership of the task force that shall produce the workforce development plan: ex-officio membership from various state agencies, the California Child Care Resource and Referral Network, and representatives of the following: A. Parents of children in subsidized and unsubsidized child care center and family child care settings. B. Community-based programs that provide child care and development training. C. Private colleges providing child care and development training. D. Employee organizations that represent child care workers and operate staff training programs. E. Providers of family child care services and center based teachers who are consumers of training and development programs. F. Early child care and education experts. G. Child care center administrators, including part-day programs, Head Start, and the state preschool program. H. Local child care planning councils. I. Local First Five commissions. 1. Prescribes the elements to be covered by the workforce development plan, including expectations of staff competencies, career ladders and a registry of child care workers, strategies for recruiting and retaining instructional staff, methods to publicize training opportunities, methods to assess caregivers' access to SB 1897 Page 7 training and professional development, and a procedure for assessing the plan's impact and its amendment every five years. 2. Expresses legislative intent to reform the current reimbursement system for subsidized child care to link fees to the private child care market; to establish special rates for children based on their age, time in care, and demonstrated special needs; and, to provide incentives to meet standards of high quality. 3. Expresses legislative intent to establish, by July 1, 2006, "regional quality provider pools" for family child care providers who choose to join the pool. 4. Authorizes each quality provider pool to operate a substitute registry for family child care providers. 5. Authorizes each quality provider pool to join with child care centers to form consortia for the purposes of efficiencies in administration and purchase of benefits for family child care providers and child care employees. 6. Provides that the bill shall not be operative if, during the 2003-04 Regular Session, legislation is enacted that creates a workforce development task force and the task force is charged with addressing the elements required to be included in the plan developed by this bill. FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes Local: Yes According to the Senate Appropriations Committee (5/24/04 amended version), cost to the General Fund of $20,000 in 2004-05 and $40,000 in 2005-06 and 2006-07. SUPPORT : (Verified 8/12/04) American Federation of State, County and Municipal Employees (co-source) United Child Care Union (co-source) Family Child Care Association of San Francisco Humboldt Family Child Care Association SB 1897 Page 8 California Child Development Corporation OPPOSITION : (Verified 8/12/04) Child Development Policy Institute Department of Finance CP:nl 8/12/04 Senate Floor Analyses SUPPORT/OPPOSITION: SEE ABOVE **** END ****