BILL ANALYSIS Ó
AB 2133
Page 1
Date of Hearing: May 4, 2016
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Lorena Gonzalez, Chair
AB
2133 (Chu) - As Amended April 12, 2016
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Urgency: No State Mandated Local Program: NoReimbursable: No
SUMMARY:
This bill requires the California Department of Education (CDE)
to establish parallel appeal processes for parents and providers
of child care and development programs. Specifically, this bill:
1)Requires CDE to establish a two-step appeals process for
parents, first through the Alternative Payment Program (APP)
and second within the Early Education and Support Division
(EESD) at the CDE. The decision made by CDE is final.
AB 2133
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2)Requires contractors to notify parents of their right to
appeal any time a notice of action (NOA) is sent to the
parent. Sets forth reasons for providing an NOA, including an
increase or decrease in parent fees, the amount of services,
termination of services, or a violation of parental choice.
3)Requires the NOA to be provided at least 14 calendar days
before the effective date of intended action. If the parent
disagrees with an action, the parent can request a hearing
with the contractor within 30 days of the date the NOA was
received. Upon filing for a hearing, the intended action is
suspended until the review process is completed or when the
parent abandons the appeal process.
4)Sets forth hearing notification and hearing process
requirements, including, requirements that parents attend the
hearing, the availability of an interpreter if necessary, and
required explanation of legal, regulatory and policy rationale
for the intended action. Requires the "hearing officer" (APP
administrative staff) to provide a written decision to the
parent within 10 calendar days after the hearing.
5)Authorizes the parent to appeal this written decision to the
EESD of the CDE within 30 days. Sets forth an appeals process
under the EESD. Requires the EESD to provide a decision within
30 days of the appeal request. Requires the contractor to
comply with the decision of the EESD immediately upon receipt
of that decision. If the decision is termination of services,
requires the contractor to notify the parent and provider of
this decision.
6)Requires the contractor to be reimbursed for child care and
development services that are delivered to a family during the
appeal process.
AB 2133
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7)Establishes a similar appeals process for licensed and
licensed-exempt family child care providers who receive
subsidy payments through an APP.
8)Specifies appealable rights for providers, including, but not
limited to: a) lack of notification of change in the status of
parents' eligibility for care; b) accurate payments for
services rendered; c) and timeliness of payments.
FISCAL EFFECT:
Ongoing General Fund administrative costs to CDE of
approximately $266,000 to implement a provider appeal process.
CDE currently has four positions dedicated to the existing
parent appeals process; therefore no additional resources are
needed for this activity. The APPs will also incur costs
associated with conducting appeals hearings and processing
outcomes.
COMMENTS:
1)Purpose. This bill, sponsored by the United Domestic
Workers/AFSCME Local 3930 and Service Employees International
Union (SEIU), provides an administrative remedy for parents
and child care providers who have reason to believe a decision
made by an APP is incorrect. Although an appeals process for
parents is authorized through regulations, the sponsors want
the process established in statute along with a parallel
process for both licensed providers (center based) and
license-exempt providers (family or friends).
AB 2133
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2)Background. The CDE administers a child care and development
system, maintaining over 1,300 service contracts with
approximately 750 public and private agencies supporting and
providing services to children from birth through 12 years of
age. Contractors include school districts, county offices of
education, cities, colleges, other public entities,
community-based organizations, and private agencies. The
combined federal and state funding for child care and
development programs total $3.6 billion (state funds of $2.7
billion and federal funds of $938 million) and fund 436,185
slots.
APPs were established in the 1970s to help provide parent
choice and access to childcare. In 2015-16, there were 75 APPs
throughout the state. APPs administer vouchers and case
manage the families in CalWORKs Stages 2 and 3. These
administrative agencies process the payments, insure
compliance from providers, and assist families in finding the
right child care for their children. They receive state and
federal funding and are reimbursed based on the number of
children served. APPs can charge up to 17.5 percent of the
total contract for these services. This rate was reduced from
19 percent in the 2010-11 budget as a cost saving tool.
3)Comments. Concerns have been raised around the 30 day timeline
for appeals. Existing regulations for the parent appeals
allows an appeal 14 days from receipt of an NOA. If all of the
timelines in the bill run consecutively, the process could
take 125 days from beginning to end. During this time, a
family served with an NOA of ineligibility could be taking a
spot that another eligible child could be waiting to access.
Staff recommends reviewing the dates in the bill to ensure a
timely process.
AB 2133
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Concerns have also been raised around appealable issues from
the provider and whether the APP or CDE have the authority to
remedy certain complaints, such as licensure issues or
employee/employer concerns. APPs are not employers of child
care providers, families are their clients and the APPs
connect families to child care services. The author may wish
to clarify intent and limit appeals permitted under the
process.
Analysis Prepared by:Misty Feusahrens / APPR. / (916) 319-2081