BILL ANALYSIS �
-----------------------------------------------------------------
|SENATE RULES COMMITTEE | AB 274|
|Office of Senate Floor Analyses | |
|1020 N Street, Suite 524 | |
|(916) 651-1520 Fax: (916) | |
|327-4478 | |
-----------------------------------------------------------------
THIRD READING
Bill No: AB 274
Author: Bonilla (D), et al.
Amended: 8/27/13 in Senate
Vote: 21
SENATE EDUCATION COMMITTEE : 9-0, 7/3/13
AYES: Liu, Wyland, Block, Correa, Hancock, Hueso, Huff,
Monning, Torres
SENATE APPROPRIATIONS COMMITTEE : 7-0, 8/19/13
AYES: De Le�n, Walters, Gaines, Hill, Lara, Padilla, Steinberg
ASSEMBLY FLOOR : 77-0, 5/29/13 - See last page for vote
SUBJECT : Child care and development services
SOURCE : Author
DIGEST : This bill authorizes, effective July 1, 2014, child
care and development providers that contract with Alternative
Payment Programs to submit attendance records on a monthly
basis. Also, this bill authorizes contractors to be reimbursed
by direct deposit, and authorizes providers to maintain records
in electronic format, as specified.
ANALYSIS : Existing law authorizes local government agencies
or non-profit organizations to contract with the California
Department of Education (CDE) to operate Alternative Payment
Programs and provide alternative payments and support services
to parents and child development providers. Alternative Payment
CONTINUED
AB 274
Page
2
Programs help parents arrange child care services and makes
payments directly to the provider, which may be in-home care,
family child care or center-based care, and either licensed or
license-exempt.
Current regulations require child care and development providers
that contract with Alternative Payment Programs to submit
periodic reports that must include:
1.Days and hours of enrollment and attendance.
2.Total days of operation.
3.Services, revenues and expenditures relating to care provided
for subsidized and unsubsidized children.
Parents are required to physically sign-in and sign-out their
child when they drop off and pick up their child each day.
Current regulations require, and Management Bulletin issued by
CDE clarifies, child care and development providers that
contract with Alternative Payment Programs to review attendance
records to ensure the days and hours of services used by the
parent were broadly consistent with the certification
establishing the parent's hours and days of service, and the
parent completed the attendance records as required by signing
in and out on a daily basis.
Child care and development providers that contract with
Alternative Payment Programs are required to maintain records
for up to five years.
This bill authorizes, effective July 1, 2014, child care and
development providers that contract with Alternative Payment
Programs to submit attendance records on a monthly basis. Also,
this bill authorizes contractors to be reimbursed by direct
deposit, and authorizes providers to maintain records in
electronic format, as specified.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: Yes
According to the Senate Appropriations Committee:
CONTINUED
AB 274
Page
3
Attendance record-keeping: Potentially significant workload
savings for child care providers and AP programs.
Auditing: Potentially significant increased auditing workload
for the CDE, depending on how providers track attendance
moving forward. Additional auditing time could increase costs
up to $120,000 in 2014-15, and up to $60,000 annually
thereafter. The CDE has indicated that 80% ($96,000 in the
first year) of this additional expense would be paid for with
Federal Funds and 20% ($24,000 in the first year) with General
Fund.
Direct deposit option: Minor annual costs to the CDE in
per-transaction fees paid to the State Controller to process
direct deposit payments.
SUPPORT : (Verified 8/28/13)
4Cs of San Mateo
California Alternative Payment Program Association
Child Action, Inc.
Child Care Alliance of Los Angeles
Child Care Links
Child Care Resource Center
Child Development Associates, Inc.
Child Development Resources of Ventura County
Choices for Children
Connections for Children
Contra Costa Child Care Council
Davis Street Family Resource Center
Family Resource & Referral Center
Go Kids, Inc.
Knowledge Universe
Los Angeles County Board of Supervisors
Mexican American Opportunity Foundation
North Coast Opportunities
Northern Directors' Group
San Francisco Child Care Planning and Advisory Council
Santa Cruz County Parents Association
Service Employees International Union
Valley Oak Children's Services
YMCA Childcare Resource Service
ARGUMENTS IN SUPPORT : According to the author, "Currently,
CONTINUED
AB 274
Page
4
daily attendance records for early care and education provided
must have a daily sign in/out signature from a parent. The
requirement of daily sign in/out for parents for each child has
created many problems for contractors, parents and providers,
including providers that may not be paid if signatures were not
secured even though care was provided. This can occur if a
parent fails to sign in and out each day and then terminates
child care suddenly. The current process of paper checks for
contract allocations has resulted in a delay of funds to
contractors potentially delaying voucher payments to child care
providers and at times has resulted in lost checks which may
take weeks to replace. The process of electronic direct deposit
would alleviate these problems and is a common banking
practice."
ASSEMBLY FLOOR : 77-0, 5/29/13
AYES: Achadjian, Alejo, Allen, Ammiano, Atkins, Bigelow, Bloom,
Blumenfield, Bocanegra, Bonilla, Bonta, Bradford, Brown,
Buchanan, Ian Calderon, Campos, Chau, Ch�vez, Chesbro, Conway,
Cooley, Dahle, Daly, Dickinson, Donnelly, Eggman, Fong, Fox,
Frazier, Beth Gaines, Garcia, Gatto, Gomez, Gonzalez, Gordon,
Gorell, Gray, Grove, Hagman, Hall, Harkey, Roger Hern�ndez,
Jones, Jones-Sawyer, Levine, Logue, Lowenthal, Maienschein,
Mansoor, Medina, Melendez, Mitchell, Morrell, Mullin,
Muratsuchi, Nazarian, Nestande, Olsen, Pan, Patterson, Perea,
V. Manuel P�rez, Quirk, Quirk-Silva, Rendon, Salas, Skinner,
Stone, Ting, Wagner, Waldron, Weber, Wieckowski, Wilk,
Williams, Yamada, John A. P�rez
NO VOTE RECORDED: Holden, Linder, Vacancy
PQ:nl 8/28/13 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
**** END ****
CONTINUED