BILL ANALYSIS                                                                                                                                                                                                    



                                                                       


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          |SENATE RULES COMMITTEE            |                  SB 1897|
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                              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





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           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.







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          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  







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               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  







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             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.








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          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  







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             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







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          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

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