BILL ANALYSIS Ó AB 2133 Page 1 ASSEMBLY THIRD READING AB 2133 (Chu) As Amended May 31, 2016 Majority vote ------------------------------------------------------------------ |Committee |Votes|Ayes |Noes | | | | | | | | | | | | | | | | |----------------+-----+----------------------+--------------------| |Education |5-0 |O'Donnell, McCarty, | | | | |Santiago, Thurmond, | | | | |Weber | | | | | | | |----------------+-----+----------------------+--------------------| |Appropriations |14-1 |Gonzalez, Bloom, |Bigelow | | | |Bonilla, Bonta, | | | | |Calderon, Daly, | | | | |Eggman, Eduardo | | | | |Garcia, Roger | | | | |Hernández, Holden, | | | | |Quirk, Santiago, | | | | |Weber, Wood | | | | | | | | | | | | ------------------------------------------------------------------ SUMMARY: Authorizes a licensed or license-exempt child care provider who receives payment through the alternative payment AB 2133 Page 2 program (APP) to file a complaint, alleging that an APP has not complied with federal or state law or regulations, through the Uniform Complaint Procedures (UCP). Specifies that APPs are operated by contractors reimbursed through the California Alternative Payment Program, the CalWORKs Stage 2 Program, the CalWORKs Stage 3 Program, and the Migrant Alternative Payment Program. Specifies that the operation of this bill is contingent upon the enactment of an appropriation for this purpose in the annual Budget Act or another statute. FISCAL EFFECT: According to the Assembly Appropriations Committee, unknown General Fund administrative costs to the California Department of Education (CDE) to process complaints under the UCP. To date, no providers have brought complaints through the existing UCP process. This bill may highlight the process and generate use of the UCP. The CDE indicates they will need additional resources to review, investigate and process appeals or complaints, perhaps in excess of $600,000, depending on the number of complaints received. COMMENTS: Background on child care and development programs. 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. According to the Legislative Analyst's Office, overall funding for the child care and development programs decreased by almost $1 billion between 2008-09 and 2012-13, with the elimination of 110,000 slots. 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), offering 436,185 slots. APPs. APPs, funded with state and federal funds, offer a AB 2133 Page 3 variety of child care arrangements for parents, including licensed family child care homes and center-based care, and arrange for payments to licensed-exempt providers, who are relatives or friends of parents or guardians. The APP helps families access child care services and makes payment for those services directly to the child care provider selected by the family. The APP is intended to increase parental choice and accommodate the individual needs of the family. APPs are reimbursed based on the number of children served and funds are appropriated based on the fiscal reporting process and budget estimations. In 2015-16, there were 75 APPs throughout the state and they range from private, nonprofit organizations to county offices of education. APPs began as pilot programs in 1977 and became permanent in 1980. Earlier versions of this bill codified a parent appeals process established through Title 5 California Code of Regulations and would have established a similar appeals process for child care providers. Amendments adopted in the Assembly Appropriations Committee struck the contents of the bill and instead authorizes child care providers to file complaints through the UCP. UCP. Required by federal law, the UCP was established in 1991 as a means of creating a "uniform system of complaint processing" for educational programs. The authority for this process is located in regulations, not state statute. These regulations require the adoption of the UCP by school districts, county offices of education, charter schools receiving federal funds, and local public or private agencies which receive direct or indirect state funding to provide school programs or special education or related services. The UCP is used for complaints regarding a number of state and federal programs, including Adult Education, After School Education and Safety, Agricultural Vocational Education, American Indian Education Centers and Early Childhood Education Program AB 2133 Page 4 Assessments, Child Care and Development, Child Nutrition, Foster Youth Services, some federal No Child Left Behind Act (2001) programs, Regional Occupational Centers and Programs, Special Education, State Preschool, and Tobacco-Use Prevention Education. Complaints made under the UCP may be filed by an individual, public agency, or organization. The UCP process generally involves the following steps: 1)The filing of a complaint by an individual, agency, or organization. 2)The investigation and written response by the local educational agency (LEA) within 60 days. 3)If elected, an appeal by the complainant to the CDE within 15 days of receiving the LEA response. 4)The response by the CDE to the appeal, with the investigation completed with 60 days. 5)If eligible and elected, a request for reconsideration by the complainant or LEA within 35 days of receiving CDE's response to the appeal. 6)A response by the CDE within 35 days. As noted, child care and development programs are already authorized to file complaints through the UCP. It is unclear whether language making the enactment of this bill contingent AB 2133 Page 5 upon a budget appropriation would affect the authority already provided through state regulations. The sponsor, the Service Employees International Union, made this statement about why child care providers need an avenue for recourse, "Existing law lacks a uniform policy for resolving disputes around child care payments. Errors in payments can cause problems for both parents and providers and can eligible children without care. Currently there is an ineffective complaints procedure at the Department of Education for parents. This is no such procedure for providers. ? AB 2133 does not propose to penalize an alternative payment program if the appellant's position was upheld. It is more about changing how the alternative payment program operates and relates to providers." Analysis Prepared by: Sophia Kwong Kim / ED. / (916) 319-2087 FN: 0003296