BILL ANALYSIS                                                                                                                                                                                                    �




                   Senate Appropriations Committee Fiscal Summary
                            Senator Kevin de Le�n, Chair


          SB 766 (Yee) - Ancillary Day Care Centers
          
          Amended: April 25, 2013         Policy Vote: Human Services 6-0
          Urgency: No                     Mandate: No
          Hearing Date: May 23, 2013      Consultant: Jacqueline  
          Wong-Hernandez
          
          SUSPENSE FILE. AS PROPOSED TO BE AMENDED.

          
          Bill Summary: SB 766 requires ancillary day care centers to  
          comply with certain requirements, including the requirements to  
          maintain specified care provider-child ratios and ensure the  
          presence, at all times, of at least one care provider who is 18  
          years of age or older. This bill also requires any person who is  
          responsible for engaging with children in an ancillary day care  
          center to be registered as a TrustLine provider.

          Fiscal Impact: 
              Expands TrustLine registry: Potentially significant costs  
              to the Department of Social Services (DSS) and the  
              Department of Justice, fully recovered by fees charged to  
              applicants.
              Investigation/Enforcement: This bill will likely result in  
              increased complaints to DSS, and increase investigations.  
              This bill may result in the need for DSS to promulgate  
              regulations governing its interaction with ancillary day  
              care centers. See staff comments.

          Background: Ancillary day care centers are day care centers  
          associated with an athletic club, grocery store, or other  
          business or group of businesses for which the day care center is  
          ancillary to its principal business activity and which provides  
          day care services, with or without a fee, for the children of  
          the clients or customers while the clients or customers are  
          engaged in shopping for, or purchasing, goods or services from  
          that business or group of businesses. Existing law exempts  
          ancillary day care centers from licensure under the California  
          Child Care Facilities Act. 

          Existing law does require, however, that ancillary day care  
          providers be registered under California's "TrustLine"  








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          fingerprint registry administered by the Department of Social  
          Services (DSS). (HSC 1596.656)

          The TrustLine fingerprint registry database conducts background  
          checks on license-exempt child care providers such as  
          babysitters, nannies, transport escort services and child care  
          providers in license-exempt child care centers, including  
          ancillary day care centers. The registry is maintained by DSS,  
          which contracts certain administrative functions to the  
          California Child Care Resource and Referral Network. 


          Existing law requires DSS to deny an application if the  
          TrustLine applicant has been convicted of a crime, other than a  
          minor traffic violation, unless the director grants an  
          exemption, as specified. (HSC 1596.607) 

          Proposed Law: SB 766 requires ancillary day care centers to  
          maintain ratios of no more than 10 children to each care  
          provider for children under 6, and a ratio of no more than 15  
          children to each care provider for children ages 7-17. This bill  
          further requires ancillary day care centers to ensure the  
          presence of at least one care provider who is 18 years or older,  
          to ensure that substitute care providers are cleared through the  
          state's fingerprinting registry, and to ensure that at least one  
          care provider present in the center has received training in  
          pediatric CPR and first aid. Additionally, this bill requires  
          ancillary day care centers to establish health and safety  
          protocols informing staff and parents about facility policies  
          related to medical emergencies.

          Related Legislation: AB 222 (Adams) Ch. 431/2010 allows persons  
          under 18 years of age to be employees of ancillary day care  
          centers without being registered for TrustLine, and  allows  
          employees whose clearance is pending to continue to work until  
          DSS denies their TrustLine application and any right to appeal  
          has been exhausted or expired. 

          SB 702 (DeSaulnier) Ch.199/2009, established the definition of  
          "ancillary day care center" and required any person providing  
          child care services in an ancillary day care center to obtain a  
          TrustLine clearance. Additionally, it required the TrustLine fee  
          to include the full cost of processing the applications and  
          maintaining the registry not to exceed the actual cost of the  








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          processing and maintenance activities. 


          Staff Comments: This bill places various new requirements on  
          ancillary day care centers, without creating enforcement  
          authority or procedures. The costs of this bill are unknown  
          because the responsibility to enforce, and likelihood of  
          enforcement, is unclear. The DSS, which regulates licensed day  
          care centers, has indicated that it does not regulate ancillary  
          day centers and does not have the authority to enforce statutory  
          requirements on those entities. 

          This bill requires ancillary day care centers to comply with  
          new, specific staffing ratio and training requirements. It is  
          not clear how those requirements would be enforced. DSS has  
          indicated that if a complaint was received, it could investigate  
          the complaint but has no authority to cite, penalize, or  
          otherwise enforce a change of action on the part of the  
          ancillary day care center. A criminal complaint would be  
          referred to local law enforcement, but there is no mechanism for  
          enforcing an administrative requirement. This bill's staffing  
          ratio requirements would be particularly difficult for any  
          governmental entity to investigate violations of, or to enforce,  
          because ancillary day care centers are drop-off facilities which  
          do not have a stable population of children they care for at a  
          particular time, nor is it clear that they would have to collect  
          or report information that could lead to a determination of  
          whether or not they have complied with staffing ratio  
          requirements. 

          As requirements imposed upon ancillary day care centers  
          increase, it is likely that enforcement mechanisms will be  
          necessary and regulations will have to be promulgated to guide  
          DSS (or any enforcing agency) on processes for handling  
          complaints and violations. The Administrative Procedure Act  
          (beginning at Section 11340 of the Government Code) prohibits  
          state agencies from issuing or enforcing any rule, regulation,  
          order, or standard of general application unless it has been  
          issued as a regulation under the Administrative Procedure Act.  
          In order to clarify the requirements of this bill, the state  
          will most likely have to adopt implementing regulations.
          
          This bill expands the requirement in existing law for TrustLine  
          registry. Existing law requires an adult "who provides child  








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          care or supervision" in an ancillary day care center to register  
          with Trustline. This bill expands that provision to anyone who  
          is "responsible for engaging with children cared for" in such a  
          facility. Ancillary day care centers currently pay fees for  
          their employees to register (approximately $170 per applicant),  
          which cover all costs to DSS administration, TrustLine, and the  
          Department of Justice to process the application and  
          registration. 


          AS PROPOSED TO BE AMENDED: Amend per author to remove required  
          staffing ratios.