BILL ANALYSIS                                                                                                                                                                                                    Ķ



                                                                     AB 427


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          Date of Hearing:   April 28, 2015


                        ASSEMBLY COMMITTEE ON HUMAN SERVICES


                                  Kansen Chu, Chair


          AB 427  
          (Weber) - As Amended March 26, 2015


          SUBJECT:  Early primary programs:  child care services:   
          eligibility:  military families


          SUMMARY:  Excludes all or a portion of the basic allowance for  
          housing provided to active duty military personnel from counting  
          as income for purposes of determining eligibility for child care  
          and development programs.


          Specifically, this bill:


          1)Makes a number of legislative findings related to military  
            families and the role of early education in providing  
            stability and routine for children whose parents are deployed.


          2)States the intent of the Legislature to ensure that military  
            families have access to the child care development services  
            that their children need.


          3)Excludes the amount of the basic allowance for housing equal  
            to the lowest rate of the allowance for the military housing  
            area in which an individual resides from income calculations  








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            for children of active military personnel, as specified, when  
            determining eligibility for services under the Child Care and  
            Development Services Act.


          EXISTING LAW: 


          1)Establishes the Child Care and Development 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 and  
            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)


          3)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, 8241)


          4)Establishes requirements families must meet in order to be  
            eligible for federal and state subsidized child development  
            services, and grants priority enrollment to children who have  
            been or are at risk of being abused or neglected, as  
            specified.  (EDC 8263)









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          5)Provides, pursuant to federal law, a basic allowance for  
            housing to which a uniformed service member, including a  
            member with dependents, as specified, is entitled if he or she  
            is also entitled to basic pay.  (37 U.S.C. 403)


          6)Authorizes a State Preschool contractor located on or in close  
            proximity to a military base, with prior written approval, as  
            specified, to exclude from the child care eligibility and  
            rankings determination the amount of the basic allowance for  
            housing provided to an individual on federal active duty,  
            state active duty, active duty for special work, or Active  
            Guard and Reserve duty in the military whose family resides on  
            a military base or in military housing.  Requires program  
            vacancies to first be filled by children pursuant to all  
            statutorily mandated priorities for State Preschool programs.   
            (Title 5, CCR, Section 18134)


          FISCAL EFFECT:  Unknown


          COMMENTS:


          Child development programs:  Child care and development services  
          are provided throughout California pursuant to requirements and  
          standards included in the Child Care and Development Services  
          Act.  Among other supports, the state's child development system  
          accommodates parents by ensuring their children are served in a  
          healthy and safe environment while they are at work, in training  
          or seeking employment, and it grants families access to programs  
          that will help children with their social, emotional,  
          educational and physical development.  General child care and  
          development programs are funded with federal and state dollars,  
          and serve children from birth through 12 years of age.










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          Subsidized child care eligibility and prioritization:  Certain  
          eligibility and prioritization rules apply to subsidized child  
          care in California.  For non-CalWORKs subsidized child care, a  
          family must meet both eligibility and need criteria.  The  
          eligibility criteria include:  currently receiving aid, being  
          income-eligible, being homeless, or having children who are  
          recipients of protective services or who have been identified as  
          being, or are at risk of being, abused, neglected, or exploited.  
           Families must also meet the need criteria, meaning either the  
          child has to have been identified by a legal, medical, or social  
          services agency or emergency shelter as being a recipient of  
          protective services or being (or at risk of being) abused,  
          neglected or exploited, or the parents need to be employed or  
          seeking employment, engaged in vocational training, seeking  
          permanent housing for family stability, or incapacitated.  In  
          addition to making care for their children more financially  
          accessible for low-income families, subsidized child care helps  
          to ensure that providers can operate in low-income communities  
          where child care would otherwise be unavailable.  


          Military compensation and allowances:  A report prepared for the  
          US Department of Defense revealed that in 2012, there were  
          155,985 active duty military personnel in California.  In  
          addition to basic pay, which is provided to a uniformed service  
          member based on his or her grade (or rank) and years of service,  
          there are a number of allowances the federal government provides  
          to service members when it cannot meet an individual's specific  
          needs.  These allowances include a basic allowance for housing  
          (BAH), which is provided to service members that don't live in  
          government-provided housing.  The amount of the BAH is adjusted  
          based on pay grade and whether a service member has dependents.   
          This allowance is also adjusted based on the local median rental  
          rates across different geographic locations (called military  
          housing areas), but it is not designed to cover all costs.   
          According to 2015 rates in California, the beginning BAH amounts  
          for service members with dependents range from $840 per month in  
          China Lake and $849 in Twentynine Palms up to $2,925 per month  
          in Santa Clara County and $3,651 in San Francisco.  All of these  








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          rates increase according to rank.  


          Because this bill proposes to exclude from child care  
          eligibility calculations the amount of a service member's BAH  
          that is equal to the lowest rate of the allowance for the  
          military housing area in which the individual resides, it will  
          exclude the entire allowance for beginning-rank service members,  
          while excluding only a portion of the rate for higher ranking  
          service members.


          Income calculations for state preschool:  Section 18134 of Title  
          5 of the California Code of Regulations provides for an  
          exception to the calculation of the adjusted monthly income for  
          military personnel enrolling their children in state preschool.   
          More specifically, the regulations allow a state preschool  
          contractor to exclude the BAH from consideration when  
          determining eligibility and income ranking for families that  
          include specified active military personnel (consistent with the  
          individuals identified in this bill), provided the contractor  
          has prior written approval from the California Department of  
          Education (CDE).  The regulation also requires the state  
          preschool program for which this exclusion is provided to be on  
          or in close proximity to a military base, and it requires that  
          first priority for program vacancies be provided to children  
          pursuant to all statutorily mandated priorities, which are  
          consistent with the priorities outlined for subsidized child  
          care programs.


          Need for this bill:  According to the author, "Currently, due to  
          an emergency regulation passed back in 2007, preschool  
          contractors with written approval from the Department of  
          Education can exclude the Basic Allowance for Housing given to  
          military families from being factored into eligibility for state  
          preschool.  This bill simply seeks to both streamline and expand  
          this process, by codifying the exclusion of the BAH along with  
          expanding it to more childcare services.  Many of these military  








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          families should be eligible for state funded childcare services,  
          but they do not qualify because an earmarked affordable housing  
          allowance inflates their calculated income.  These children are  
          a population in need and deserve to have access to high quality  
          childcare."  





          Recommended amendment:  Because this bill applies to the entire  
          Chapter within the Education Code that establishes and sets  
          forth requirements of the Child Care and Development Services  
          Act, this bill applies to child care services and overrides the  
          current regulation relative to the exclusion of the BAH for  
          state preschool eligibility determinations.  As stated by the  
          author, this bill expands the scope of the current BAH exclusion  
          and eliminates the requirement that a state preschool contractor  
          be granted approval from CDE prior to excluding the BAH from  
          consideration.


          While quality child care is essential for all parents to gain  
          and retain employment in the civilian workforce, the stability  
          child care can provide to military families is, additionally,  
          directly linked to an active military member's readiness for  
          service.  Still, without providing an increase in the number of  
          funded child care slots, this bill could potentially cause  
          children from military families receiving a BAH, though also  
          deserving of quality child care, to crowd out the other priority  
          categories of children, including abused, neglected, and at-risk  
          children, with often far fewer resources.  Efforts to increase  
          access to adequate child care for military families should most  
          definitely be made; however, this must be done with care so as  
          to not consequently diminish access for other vulnerable  
          populations.











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          In order to not jeopardize access to child care for other  
          vulnerable children, committee staff recommends that this bill  
          be amended to maintain the prioritization for Child Care and  
          Development Services Act programs provided for in current law.


          





          PRIOR LEGISLATION:


          


          AB 170 (Saldaņa), 2007, would have excluded the basic allowance  
          for housing provided to military families from being counted in  
          state preschool services eligibility determinations.  It died on  
          the Assembly Appropriations Committee suspense file.  Title 5,  
          CCR, Section 18134 was subsequently established through  
          emergency regulations.




          REGISTERED SUPPORT / OPPOSITION:




          Support


          American Federation of State, County and Municipal Employees  








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          (AFSCME), AFL-CIO


          San Diego County Office of Education (SDCOE)


          Educational Enrichment Systems 


          Military Child Education Coalition 




          Opposition


          None on file.




          Analysis Prepared by:Myesha Jackson / HUM. S. / (916) 319-2089