BILL ANALYSIS �
AB 274
Page 1
Date of Hearing: May 1, 2013
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Mike Gatto, Chair
AB 274 (Bonilla) - As Amended: April 24, 2013
Policy Committee: Human
ServicesVote:7 - 0
Urgency: No State Mandated Local Program:
Yes Reimbursable: No
SUMMARY
This bill makes several changes to the Child Care and
Development Services Act (CCDSA) as it pertains to the Alternate
Payment Program (APP). Specifically, this bill:
1)Authorizes child care providers to submit attendance records
that serve to demonstrate the child is receiving services for
which he or she has been certified electronically on a monthly
basis to the APP.
2)Allows APPs to maintain records electronically, as permitted
by state and federal auditing requirements.
3)Requires the California Department of Education (CDE), upon
request of a child care contractor on or after January 1,
2016, to request the State Controller process the payment to
the contractor through direct deposit.
FISCAL EFFECT
1)Automation costs of $200,000 to $500,000 (GF) to update CDE's
payment system for child care providers in order to allow for
direct deposit.
2)One-time costs of approximately $200,000 (GF) for CDE to
develop regulations associated with the new attendance
requirements and the electronic certification.
3)On-going costs of up to $65,000 (GF) for the increased
auditing requirements for CDE.
AB 274
Page 2
4)On-going minor costs, under $10,000 (GF) per year, for
transaction fees associated with direct deposit.
COMMENTS
1)Purpose . The intent of this legislation is to bring greater
efficiency to the state's subsidized child care system in
order to maximize resources and better serve families.
According to the author, the state's current delivery system
is over burdensome and does not reflect current technological
advances. The author hopes this bill will allow child care
contractors that serve working poor families to use technology
to maximize contract dollars and defray costs associated with
complying with outdated regulations.
The author contends that by allowing for automatic deposit,
this bill will allow contractors to more quickly provide
reimbursement to small businesses delivering services to
working parents and their children.
2)Alternative Payment Program . There are currently 81 APPs
contracted with CDE. These APPs are funded by state and
federal funds, to provide an array of support and payment
services to enable low-income and eligible families to access
subsidized child care. APPs do not provide direct child
development services or programs, rather they provide families
who are participating in welfare-to-work activities under
CalWORKs, or who are low-income but do not qualify for
CalWORKs, with subsidized child care vouchers.
Child care vouchers can be used to access child care at either
a child development center, family child care home, or with a
license-exempt child care provider.
3)Related Legislation . AB 245 (Portantino), 2011, required CDE,
at the request of a child care contractor, request the State
Controller to make a payment via direct deposit into the
contractor's account. That bill was held on the Senate
Appropriations Committee Suspense File.
Analysis Prepared by : Julie Salley-Gray / APPR. / (916)
319-2081
AB 274
Page 3