BILL ANALYSIS                                                                                                                                                                                                    Ó




                   Senate Appropriations Committee Fiscal Summary
                           Senator Christine Kehoe, Chair


          SB 1089 (Liu) - Child day care facilities: youth "boot camps".
          
          Amended: April 17, 2012         Policy Vote: Human Services 6-0
          Urgency: No                     Mandate: Yes
          Hearing Date: April 30, 2012                           
          Consultant: Jolie Onodera       
          
          This bill meets the criteria for referral to the Suspense File.


          Bill Summary: SB 1089 would extend licensing and regulation 
          requirements for child day care facilities to entities whose 
          primary purpose is to provide behavioral programming to address 
          juvenile conduct, as specified. The provisions of this bill 
          would not apply to programs under the jurisdiction of specified 
          state- or county-operated agencies.

          Fiscal Impact: 
           Potentially minor to significant ongoing costs in excess of 
            $150,000 (General Fund) to the Department of Social Services 
            (DSS) Community Care Licensing (CCL) Division to license and 
            monitor additional facilities. Costs would be dependent on the 
            number of entities impacted statewide. To the extent the 
            number of new licensees is significant could require 
            additional field staff for monitoring and oversight.

           To the extent this type of non-traditional treatment program 
            is determined to require new regulations, the DSS could incur 
            one-time costs for development of regulations potentially in 
            excess of $100,000 (General Fund).

           Minor annual ongoing costs to the Judicial Branch, likely less 
            than $10,000 (per 20 new filings), for increased court filings 
            for misdemeanor violations of the Child Day Care Facilities 
            Act.

           Non-reimbursable state-mandated local costs for enforcement, 
            offset to a degree by fine revenue.

          Background: Current law establishes various licensing and 
          regulation requirements for child day care facilities under the 
          California Child Day Care Facilities Act. Under existing law, 








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          the following licensed or license-exempt programs are exempt 
          from child care licensing statutes: health facilities, clinics, 
          community care facilities, specified family day care homes, 
          cooperative child care arrangements, child care provided by a 
          relative, public recreation programs, extended day care programs 
          operated by public/private schools, school parenting programs, 
          child care programs operating under specified time restrictions, 
          programs administered by the Department of Corrections and 
          Rehabilitation (CDCR), and crisis nurseries, as specified. 

          Treatment programs for troubled youth, commonly referred to as 
          youth "boot camps" or wilderness therapy programs, have been the 
          subject of controversy within California and nationwide for 
          several years. These non-traditional treatment programs are 
          intended to provide less restrictive options for children with 
          significant behavioral issues and provide a range of services, 
          including drug and alcohol treatment, military-style discipline, 
          and psychological counseling. A 2007 Government Accountability 
          Office (GAO) report, "Residential Treatment Programs: Concerns 
          Regarding Abuse and Death in Certain Programs for Troubled 
          Youth," identified thousands of allegations of abuse, some of 
          which involved death, at such programs. The GAO report noted no 
          single federal agency regulating such programs, and a variety of 
          approaches ranging from statutory regulations that require 
          licensing to no oversight at the state level. 

          "?while states often regulate publicly funded programs, a number 
          of states do not license or otherwise regulate private programs. 
          Because programs determine how to describe themselves, 
          especially in their marketing materials, there is no standard 
          definition for 'wilderness therapy program,' 'boot camp,' or 
          other terms used to describe the types of programs and 
          facilities considered to be part of this industry." (GAO, 
          Residential Treatment Programs, 2007, p. 3)

          State law is silent on licensing non-residential, 
          non-educational programs that offer such behavioral modification 
          treatment with the exception of specific programs for consumers 
          with developmental disabilities that are overseen by the 
          regional center system. The Department of Public Health 
          establishes minimum standards for "organized camps," but the 
          statute specifically excludes penal and correctional camps from 
          the definition (Health and Safety Code section 18897(b)).









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          Proposed Law: This bill would prohibit the exclusion of entities 
          whose primary purpose is behavioral programming to address 
          juvenile conduct described in Section 601 of the Welfare and 
          Institutions Code (WIC) from child care licensing statutes. The 
          bill would exclude programs under the jurisdiction of the CDCR, 
          Division of Juvenile Facilities, the Department of Education, 
          and county-operated facilities. The bill would add outpatient 
          behavior programs for children with developmental disabilities 
          vendored by a regional center to the list of excluded entities. 
          The bill also includes uncodified Legislative findings and 
          declarations with respect to youth "boot camps".

          Specifically, WIC section 601 defines the conduct of a minor 
          under age 18 who displays the following behavior:

                 Persistently or habitually refuses to obey the 
               reasonable and proper orders or directions of his or her 
               parents, guardian, or custodian. 
                 Is beyond the control of his or her parents, guardian, 
               or custodian.
                 Violates any ordinance of any city or county of this 
               state establishing a curfew based solely on age.
                 Has four or more truancies within one school year as 
               defined in Section 48260 of the Education Code or a school 
               attendance review board or probation officer determines 
               that the available public and private services are 
               insufficient or inappropriate to correct the habitual 
               truancy of the minor, or to correct the minor's persistent 
               or habitual refusal to obey the reasonable and proper 
               orders or directions of school authorities.
                 Fails to respond to directives of a school attendance 
               review board or probation officer or to services provided.
          
          Staff Comments: The fiscal impact of the provisions of this bill 
          is reliant upon various factors that are undetermined at this 
          time. Costs to the DSS CCL Division will be dependent on the 
          number of programs identified and determined to meet the 
          behavioral programming criteria specified in the bill, the 
          programs that ultimately apply for licensing, and the level of 
          oversight required. Although only two non-residential youth 
          "boot camp" programs have been specifically identified at this 
          time, it is unknown how many of these types of programs are 
          actually in existence statewide which could potentially be 
          subject to child day care licensing and regulation standards. To 








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          the extent the number of programs is greater than currently 
          identified or increases in the future to a moderate level, 
          additional DSS field staff could potentially be required to meet 
          the ongoing monitoring and oversight required for an increasing 
          number of child day care facilities, resulting in ongoing annual 
          costs in excess of $150,000 (General Fund). 

          As the GAO report noted, there is no standard definition for 
          these types of programs. At this time, DSS indicated it is 
          unknown if the programs targeted by this legislation will fall 
          within existing regulation guidelines for child day care 
          facilities. To the extent it is determined that these 
          non-traditional treatment programs require revised and/or 
          separate regulations, DSS could potentially incur one-time costs 
          for regulation development in excess of $100,000 (General Fund).

          By expanding the types of entities subject to misdemeanor 
          violations of the Child Day Care Facilities Act could result in 
          increased court filings. The Judicial Council estimates a 
          relatively small number of misdemeanors will be filed under the 
          provisions of the bill, with minor ongoing costs of less than 
          $10,000 (Trial Court Trust Fund) per 20 new misdemeanor court 
          filings per year. As noted previously, to the extent the number 
          of programs impacted is significant, the potential for increased 
          filings would also increase.
           
          To the extent mandated licensing and regulation standards for 
          these types of programs prevents negligent operating practices 
          and/or the operation of substandard programs could result in 
          future cost savings in averted civil/criminal courts to the 
          state as well as improved protections for youth participating in 
          these programs, resulting in fewer allegations of abuse and 
          incidences of injury and death.