BILL ANALYSIS Ó
SENATE COMMITTEE ON APPROPRIATIONS
Senator Ricardo Lara, Chair
2015 - 2016 Regular Session
AB 1712 (Obernolte) - Child care: digital signatures
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|Version: May 27, 2016 |Policy Vote: ED. 9 - 0 |
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|Urgency: No |Mandate: No |
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|Hearing Date: August 1, 2016 |Consultant: Jillian Kissee |
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This bill meets the criteria for referral to the Suspense File.
Bill
Summary: This bill authorizes child care contractors to use
electronic signatures and permits the Superintendent of Public
Instruction (Superintendent) to adopt, as specified, rules and
regulations regarding electronic signatures used by child care
contractors and alternative payment programs.
Fiscal
Impact:
The California Department of Education (CDE) cites costs of
$106,000 General Fund. These costs would support one-time
activities such as training audit staff on new requirements
related to the use of digital signatures, updating the audit
guide and procedures, and potentially engaging in the
AB 1712 (Obernolte) Page 1 of
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development of any necessary regulations.
Unknown ongoing costs to the CDE related to audit fieldwork to
verify and test that electronic systems and digital signatures
meet all required standards. These costs could be in the tens
of thousands but will likely decrease over time as digital
signatures become more standard. Costs will largely depend on
the duration and complexity of each audit. (General Fund)
Potential future administrative savings to agencies and
providers from increased operational efficiency due to the use
of digital signatures.
Background: The state provides subsidized child care in two ways. It
provides vouchers for families that participate in certain
programs, such as alternative payment programs, to use to access
care with different types of child care providers. The state
also provides subsidized child care through direct contracts
with certain licensed child care providers.
Existing law establishes requirements that alternative payment
programs and child development providers must follow as
contracted agencies with the CDE, including tracking and
reporting of attendance, accounting and auditing requirements,
and reimbursement and payment procedures. (EC § 8221.5)
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; and (3)
services, revenues and expenditures relating to care provided
for subsidized and unsubsidized children. Parents are required
to physically sign-in and sign-out each child when they drop off
and pick up their child each day.
Through AB 271 (Obernolte, Chapter 476, Statutes of 2015)
alternative payment providers and state-subsidized child care
providers are authorized to maintain records in electronic
format. It also authorized alternative payment programs to use
electronic signatures. This bill seeks to give child care center
contractors the ability to use digital signatures on records as
well.
AB 1712 (Obernolte) Page 2 of
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Proposed Law:
This bill authorizes child care center contractors to use a
digital signature that complies with state and federal
standards, as determined by the CDE, and is intended by the
signatory to have the same effect as a handwritten signature.
This bill also allows the Superintendent to adopt rules and
regulations related to digital signatures or their acceptable
technology. It provides that these regulations would supersede
existing regulations, should they differ.
Staff
Comments: Currently, the CDE conducts four to six annual
program audits of child care providers, and verifies that the
provider has kept the required sign-in and sign-out attendance
sheets and they contain the required parent or guardian
signatures. The CDE anticipates audit costs will increase by
$3,980 per week, and for a small agency a minimum of one
additional week would be required. For a larger agency, more
time could be required. However, costs are expected to decline
over time.
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