BILL ANALYSIS Ó
AB 233
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Date of Hearing: April 14, 2015
ASSEMBLY COMMITTEE ON HUMAN SERVICES
Kansen Chu, Chair
AB
233 (Lopez) - As Amended April 9, 2015
SUBJECT: Child care and development services: alternative
payment programs: reimbursement rates
SUMMARY: Adopts a 12-month eligibility determination process
for subsidized child care and removes certain reporting and
administrative requirements.
Specifically, this bill:
1)Adds "access" to the current designated purpose of alternative
payment programs (APPs) of allowing for maximum parental
choice.
2)Makes components of APPs which were previously permissible, as
specified, required.
3)Requires APPs to include an eligibility determination process
of every 12 months.
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4)Removes the requirement that alternative payment (AP) child
care providers maintain monthly attendance records or invoices
in the unaltered original format and instead simply requires
that these records or invoices be maintained.
5)Removes the requirement that contractors track absences for
purpose of reimbursement to providers through an APP.
6)Adds language that allows an APP to implement an altered rate
level once per year.
7)Deletes the requirement that a licensed child care provider
post its rates and discounts or scholarship policies, as
specified.
8)Deletes the requirement that an APP must verify provider rates
at least once a year, as specified. Further deletes the
requirement that the Department of Social Services (DSS)
develop regulations to address discrepancies identified in
this process.
9)Changes the requirement that every agency operating both a
direct service program and an APP provide at least four
referrals to a family, as specified, to apply only to resource
and referral agencies.
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10)Adds language stating that a family that transfers from one
subsidized child care program to another in order to maintain
eligibility shall be considered continuously eligible for
services for 12 months from the time of initial, or
subsequent, eligibility determination.
11)Specifies that extension of the 60-day working period, as
specified, may be granted to all contractors.
12)States that it is the intent of the Legislature that an
extension of the 60-day working period improve services in
areas with high unemployment rates or areas with
disproportionately high numbers of seasonal agricultural jobs,
or both.
13)Removes the requirement that families have a physical
examination and evaluation, including age-appropriate
immunization, as a condition of enrollment in APP services, as
specified.
14)Specifies that the funding and reimbursement procedures the
Superintendent of Public Instruction is currently required to
adopt rules, regulations, and guidelines for apply to
contractors operating centers, family child care homes, or
both.
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15)Allows contractors, as specified, to develop a written policy
directing parents to pay family fees directly to the child
care provider. Establishes requirements related to this
process, including, among others as specified, that the
contractor shall deduct the amount of the family fee assessed
to the parent from the payment to the provider.
16)Exempts contractors that have a written policy instructing
parents to pay family fees directly to the provider from
certain requirements, as specified, including having to supply
record or proof that the family fee was paid to the provider.
17)Deletes outdated language and makes technical,
non-substantive amendments.
EXISTING LAW:
1)Establishes the Child Care and Developmental Services Act to
provide child care and development services as part of a
coordinated, comprehensive, and cost-effective system serving
children from birth to 13 years old and their parents
including a full range of supervision, health, and support
services through full- and part-time programs. (EDC 8200 et
seq.)
2)Defines "child care and development services" to mean services
designed to meet a wide variety of children's and families'
needs while parents and guardians are working, in training,
seeking employment, incapacitated, or in need of respite.
(EDC 8208)
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3)States the intent of the Legislature that all families have
access to child care and development services, through
resource and referral where appropriate, and regardless of
demographic background or special needs, and that families are
provided the opportunity to attain financial stability through
employment, while maximizing growth and development of their
children, and enhancing their parenting skills through
participation in child care and development programs. (EDC
8202)
4)Requires the Superintendent of Public Instruction to
administer general child care and development programs to
include, among other things as specified, age- and
developmentally-appropriate activities, supervision, parenting
education and involvement, and nutrition. Further allows such
programs to be designed to meet child-related needs identified
by parents or guardians, as specified. (EDC 8240 and 8241)
5)To allow for maximum parental choice, authorizes the operation
of APPs and provision of alternative payments and support
services to parents and child care providers by local
government agencies or non-profit organizations that contract
with the California Department of Education (CDE). (EDC 8220)
6)Establishes rules and requirements for APPs and providers, as
contracted agencies with CDE, to observe, including but not
limited to accounting and auditing requirements, attendance
monitoring requirements, referral requirements where
applicable, and reimbursement and payment procedures. (EDC
8220 et seq.)
7)Requires the Superintendent of Public Instruction to adopt
rules and regulations regarding eligibility, enrollment, and
priority of services. Allows the Superintendent to extend the
60-day eligibility limit for job-seeking activities (per
Section 18086.5 of Title 5 of the California Code of
Regulations), as specified, in order to promote continuity of
care. Requires a physical examination and evaluation for
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enrollment, as specified. (EDC 8263)
8)Requires the Superintendent to adopt rules, regulations, and
guidelines to facilitate funding and reimbursement procedures
for subsidized child care. (EDC 8269)
9)Requires the Superintendent to establish a family fee schedule
for subsidized child care, as specified, contingent on income
and subject to a cap. (EDC 8273)
FISCAL EFFECT: Unknown
COMMENTS:
Alternative Payment Programs: A network of APPs contract with
CDE to provide to low-income and eligible families access to
subsidized child care. In 2013-14, there were 76 APPs across
the state providing support and payment services. APPs do not
provide direct child development services or programs; instead,
they facilitate family choice by providing families with
subsidized child care vouchers. Eligible families can include
those participating in welfare-to-work activities under the
California Work Opportunities and Responsibility to Kids
(CalWORKs) program, or those who are low-income but do not
qualify for CalWORKs.
A family who receives a voucher from an APP will typically be
referred to a local child care resource and referral (R&R)
agency, which, like APPs, is also funded through state and
federal dollars. R&Rs assist families in identifying and
accessing available and appropriate care and services.
Currently, limited state resources have hindered access to
programs accepting vouchers, and many families are placed on a
waiting list, if one is available.
Child Care and Development Block Grant: The federal Child Care
and Development Block
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Grant Act of 2014 (P.L. 113-186) reauthorized the Child Care and
Development Block
Grant Act of 1990. This reauthorization brought about a number
of changes aimed at addressing health and safety requirements,
quality of care, and consumer and provider education.
One specific change adopted by this reauthorization establishes
a 12-month eligibility redetermination period for families,
regardless of changes in income (provided income does not exceed
85% of State median income) or temporary changes in
participation in work, training, or education activities.
Need for this bill: According to the author, "The priority of
this bill is to provide maximum parental choice, access and
stable child care for eligible working families up to 12 months.
Our working poor families dealing with a multitude of poverty
stressors, that are getting up, working and doing everything we
ask of them to move towards self-sufficiency, ought to have
peace of mind that their child care is stable. Additionally,
this bill aims to create greater efficiencies and maximize the
use of public funds to greater support working families."
Supporters contend that maintaining eligibility for 12 months
will strengthen the subsidized child care delivery system, where
they see, firsthand, the benefit of removing the threat of loss
of child care in the lives of families. Additionally, employers
stand to benefit from the more stable and reliable workforce
resulting when child care is consistently available.
Furthermore, this bill's provisions adopting a 12-month
eligibility period for subsidized child care will help bring the
state into conformity with pending federal requirements per the
Child Care and Development Block Grant Act of 2014.
DOUBLE REFERRAL . This bill has been double-referred. Should
this bill pass out of this committee, it will be referred to the
Assembly Committee on Education.
REGISTERED SUPPORT / OPPOSITION:
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Support
Coalition of California Welfare Rights Organizations, Inc.
Child Care Links
Community Resources for Children
Controltec, Inc.
Mexican American Opportunity Foundation
Davis Street Family Resource Center
Child Development Resources of Ventura County, Inc.
North Coast Opportunities, Inc.
Supportive Services, Inc.
Community Child Care Council (4C's) of Alameda County
CAPPA Children's Foundation
Child Development Associates, Inc.
Family Resource & Referral Center
Sierra Nevada Children's Services
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Valley Oak Children's Services
Community Action Partnership of San Luis Obispo
Santa Cruz County Parents Association
Opposition
None on file.
Analysis Prepared
by: Daphne Hunt/HUM. S./(916) 319-2089