BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                    AB 2133


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          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           |                    |
          |                |     |                      |                    |
          |                |     |                      |                    |
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          SUMMARY:  Authorizes a licensed or license-exempt child care  
          provider who receives payment through the alternative payment  








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          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  








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          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  








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          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  








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          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