BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON EDUCATION
                              Senator Carol Liu, Chair
                                2015 - 2016  Regular 

          Bill No:             AB 1712            
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          |Author:    |Obernolte                                            |
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          |Version:   |May 27, 2016                             Hearing     |
          |           |Date:    June 22, 2016                               |
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          |Urgency:   |No                     |Fiscal:    |Yes              |
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          |Consultant:|Olgalilia Ramirez                                    |
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          Subject:  Child care:  digital signatures


            SUMMARY
          
          This bill authorizes child care contractors to use electronic  
          signatures and permits the Superintendent of Public Instruction  
          (SPI) to adopt, as specified, rules and regulations regarding  
          electronic signatures used by child care contractors,  
          alternative payment programs (APPs) and providers.

            BACKGROUND
          
             1)   Existing law authorizes local government agencies or  
               non-profit organizations to contract with the California  
               Department of Education (CDE) to operate APPs and provide  
               alternative payments and support services to parents and  
               child development providers.  APPs help parents arrange  
               child care services and make payments directly to the  
               provider, which may be in-home care, family child care or  
               center-based care, and either licensed or license-exempt.  
          (Education Code § 8220)

             2)   Existing law establishes requirements and procedures  
               that APPs and child development providers must follow as  
               contracted agencies with the CDE, including but not limited  
               to tracking and reporting of attendance, accounting and  
               auditing requirements, and reimbursement and payment  
               procedures.  
          (EC § 8221.5) 







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             3)   Current regulations require child care and development  
               providers that contract with APPs to submit periodic  
               reports that must include:

                  a)        Days and hours of enrollment and attendance.

                  b)        Total days of operation.

                  c)        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.   
          (California Code of Regulations, Title 5 § 18065)

             4)   Existing law requires agencies that receive state funds  
               to, at the request of the Superintendent of Public  
               Instruction (SPI), make all records pertaining to its  
               state-funded programs available to the California  
               Department Education (CDE), as specified, and requires that  
               all records be retained by each agency for at least five  
               years, as specified.  (EC § 33421) 

             5)   Existing law authorizes alternative payment programs and  
               providers and other contractors providing child care  
               development services to maintain records in electronic  
               format if the original documents were created in electronic  
               format.  
               (EC § 8262.1)

             6)   Existing law authorizes alternative payment programs and  
               providers to use digital signatures and specifies that the  
               digital signature have the same force and effect as the use  
               of the manual signature if specified requirements are met. 
          (EC § 8227.5)

             7)   Establishes the Uniform Electronic Transactions Act  
               (UETA), which permits, but does not require, a record or  
               signature to be created, generated, sent, communicated,  
               received, stored, or otherwise processed or used by  
               electronic means or in electronic form.  (CIV 1633.1, et  
               seq.)








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             8)   Establishes that a digital signature, when used in  
               written communication with a public entity, shall have the  
               same force and effect of a manual signature if it meets  
               certain requirements, as specified.  (GOV § 16.5)

            ANALYSIS
          
          This bill authorizes child care contractors to use electronic  
          signatures and permits the SPI  to adopt, as specified, rules  
          and regulations regarding electronic signatures used by child  
          care contractors, alternative payment programs (APPs) and  
          providers. Specifically it;

          1)   Authorizes child care contractors to use digital signatures  
               and requires that those signatures have the same force and  
               effect as manual signatures.

          2)   Authorizes the SPI to adopt rules and regulations related  
               to digital signatures and provides that these rules and  
               regulations supersede existing law should they differ, as  
               specified.

          STAFF COMMENTS
          
          1)   Need for the bill.  Recent legislation, AB 271 (Obernotle,  
               Chapter 476, Statutes of 2015) provided APPs, contractors  
               and providers the option to maintain records electronically  
               regardless of whether the original documents were created  
               in electronic format. It also allowed APPs and providers to  
               use electronic signatures but failed to explicitly give the  
               option to child care center contractors. This bill seeks  
               give child care contractors the ability to use digital  
               signatures on records thereby extending an authorization  
               that is currently provided to APPs and child care  
               providers.

          2)   Subsidized child care programs.  State subsidized child  
               care may be available to families that meet certain  
               eligibility requirements.  The three main types of  
               subsidized child care programs include:  California Work  
               Opportunity and Responsibility to Kids (CalWORKS) child  
               care, Alternative Payment Programs (APPs) and General Child  
               Care.  General Child Care offers child care and  








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               education/development services through contracted child  
               care centers and family child care home networks that are  
               administered through public or private agencies, while  
               child care administered by CalWORKs and APPs is offered  
               through a voucher system. This bill provides those entities  
               that contract directly with the California Department of  
               Education for the provision of child care and development  
               services the ability to use electronic signatures on  
               documents and have them carry the same weight as a manual  
               signature. 

          3)   Digital Signature.  Current regulations establish criteria  
               for public entities using digital signature technology.  
               Acceptable technology must be capable of creating  
               signatures that are unique to the person using it, capable  
               of verification, under sole control of the person using it  
               and cannot be altered.  The regulations also provide  
               recommendations of acceptable digital signature technology.  
                This bill authorizes the SPI to adopt rules and  
               regulations related to digital signatures including  
               defining or redefining what is acceptable technology for  
               the creation and use of a digital signature and allows  
               these rules to supersede current law. This authorization  
               may provide greater flexibility for modifying requirements  
               as technology evolves. 

            SUPPORT
          
          KinderCare Education
          San Francisco Child Care Planning and Advisory Council

            OPPOSITION
           
          None received. 

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