BILL ANALYSIS                                                                                                                                                                                                    Ó



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

          Bill No:             SB 548             
           ----------------------------------------------------------------- 
          |Author:    |De León                                              |
          |-----------+-----------------------------------------------------|
          |Version:   |April 14, 2015                             Hearing   |
          |           |Date:     April 22, 2015                             |
           ----------------------------------------------------------------- 
           ----------------------------------------------------------------- 
          |Urgency:   |No                     |Fiscal:     |Yes             |
           ----------------------------------------------------------------- 
           ----------------------------------------------------------------- 
          |Consultant:|Lynn Lorber                                          |
          |           |                                                     |
           ----------------------------------------------------------------- 
          
          Subject:  Child care:  family child care providers:  bargaining  
          representatives

          NOTE:  This bill has been referred to the Committees on  
          Education and Labor and ???...Industrial Relations.  A "do pass"  
          motion should include referral to the ???...Committee on Labor  
          and Industrial Relations.

            SUMMARY
          
          This bill gives family child care providers the right to form,  
          join, and participate in provider organizations, requires, if a  
          family child care provider organization is certified, the State  
          and the certified provider organization to establish a training  
          partnership committee to make and implement recommendations  
          regarding training resources.

            BACKGROUND
          
          California's early education and care system includes several  
          types of programs in various settings, including the Alternative  
          Payment Program.  This program is essentially a voucher program,  
          where funding for child care follows the child and the family  
          chooses the child care setting in which they want their child to  
          attend.  Care may be in a licensed center or family child care  
          home, or be provided by license-exempt providers.

            ANALYSIS
          
          This bill gives family child care providers the right to form,  







          SB 548 (De León)                                        Page 2  
          of ?
          
          
          join, and participate in provider organizations, and requires,  
          if a family child care provider organization is certified, the  
          State and the certified provider organization to establish a  
          training partnership committee to make and implement  
          recommendations regarding training resources.  Specifically,  
          this bill:

             1.   Defines "family child care providers" as a child care  
               provider that participates in a state-funded child care  
               program and is either of the following:

                  A.        A family day care home provider who is  
                    licensed.

                  B.        An individual who meets both of the following:

                       (1)            Provides child care in his or her  
                         own home or in the home of the child receiving  
                         care.

                       (2)            Is exempt from licensing  
                         requirements.
          Provider organizations
          
             1.   Gives family child care providers the right to form,  
               join, and participate in provider organizations of their  
               own choosing for the purpose of being represented.  

          Training
          
             1.   Requires, if a family child care provider organization  
               is certified, the State and the certified provider  
               organization to establish a training partnership consisting  
               of a Joint Committee on Child Care Training, Education, and  
               Quality Improvement.  The membership of the Joint Committee  
               (training committee) is to include representatives of the  
               certified provider organization and designees of the  
               Governor.  

             2.   Requires the provider organization to establish a  
               training program that carries out the recommendations of  
               the training committee.

             3.   Requires the training committee to meet to identify gaps  








          SB 548 (De León)                                        Page 3  
          of ?
          
          
               in the training available to family child care providers  
               and barriers that prevent family child care providers from  
               gaining greater skills and accessing postsecondary  
               education, and issue recommendations on an annual basis to  
               improve the quality of care offered by licensed and  
               license-exempt family child care providers.

             4.   Requires the training committee to play a coordinating  
               role in ensuring that the training offered to providers  
               through the training program:

                  A.        Meets the State's needs for the child care  
                    workforce.

                  B.        Satisfies the health, safety and educational  
                    standards prescribed by the State.

                  C.        Aligns with the State's quality rating  
                    systems. 

                  D.        Identifies and works to eliminate barriers to  
                    providers accessing training.

             1.   Authorizes the training committee's recommendations to  
               include, but not be limited to:

                  A.        Ways to access federal and private funding for  
                    training to expand capacity to existing State training  
                    resources, such as general education classes and  
                    English language learner classes.

                  B.        Ways to support providers who seek to obtain  
                    training or higher education credentials in child  
                    development.  

                  C.        Ways for the training program to work with  
                    existing training providers and educational  
                    institutions, including but not limited to resource  
                    and referral networks, community colleges, and  
                    apprenticeship programs.  

                  D.        Ways for the training program to make training  
                    and education available to child care workers and  
                    other workers employed by child care centers and  








          SB 548 (De León)                                        Page 4  
          of ?
          
          
                    schools.

             1.   States it is the intent of the Legislature to allocate  
               $1 million in the 2015 Budget to carry out the initial  
               recommendations of the training committee, and that in  
               subsequent years, the recommendations of the training  
               committee be funded by contributions agreed to for that  
               purpose in the memorandum of understanding between the  
               provider organization and the Governor.  

          Best practices
          
             1.   Requires the Governor or designee to conduct a study of  
               best practices for engaging families in their children's  
               early care and education in family child care settings, and  
               of federal and other funding that could support parental  
               engagement efforts without reducing the availability and  
               affordability of child care.

             2.   Requires the Governor or designee to report to the  
               Legislature and Department of Finance, by January 1, 2017,  
               with the findings and a proposed framework of priorities in  
               which to invest.  

             3.   Requires the Governor or designee, in conducting the  
               study, to consult with stakeholders, including the  
               Department of Social Services, First 5 California, and  
               organizations that represent parents with young children,  
               particularly lower income and non-English speaking  
               families, to consider how best to engage and support those  
               families in a culturally competent manner. 

          Additional child care slots
          
             1.   States it is the intent of the Legislature to create an  
               unspecified number of additional slots in alternative  
               payment programs for children living in extreme poverty,  
               defined as 50% of the federal poverty level, if funding is  
               allocated in the Budget.

          STAFF COMMENTS
          
          1.   Need for the bill.  According to the author, specific to  
               the provisions of the bill that are within the jurisdiction  








          SB 548 (De León)                                        Page 5  
          of ?
          
          
               of this Committee, "The current subsidized child care  
               system encompasses more than 120 different agencies  
               contracting with the state as middlemen, who in turn  
               administer access to the system for subsidized families and  
               reimburse providers who care for children whose families  
               receive subsidies.  Low income children have uneven access  
               to quality child care.  Given low reimbursement rates and a  
               fragmented system, there is also extremely high turnover  
               among providers.  One of the primary work-related costs  
               that providers struggle to afford is higher education and  
               training to increase their knowledge of child development  
               and stay current on the latest theory and practice of early  
               education and care."

          2.   Training programs.  This bill requires the training  
               committee to meet to identify gaps in the training  
               available to family child care providers and barriers that  
               prevent family child care providers from gaining greater  
               skills and accessing postsecondary education.  According to  
               the author, existing training opportunities are limited and  
               unavailable or inaccessible to early education and care  
               providers in many areas of the state.  
          
          3.   Role for the Governor.  This bill provides the Governor  
               with a significant role in designating representatives for  
               participation on the training committee, and the  
               development of best practices.  According to the author,  
               the goal is to engage the Governor and secure his full  
               participation in these endeavors.  The author may wish to  
               consider expanding participation on the training committee  
               to include the Department of Social Services, the  
               Department of Education, and parents, and include  
               consultation with the California Department of Education in  
               the study of best practices.

          4.   Additional slots.  This bill states legislative intent to  
               create an unspecified number of additional slots in  
               alternative payment programs for children living in extreme  
               poverty, defined as 50% of the federal poverty level, if  
               funding is allocated in the Budget.  According to the  
               author, this bill addresses additional slots only for  
               alternative payment programs to focus on the greatest area  
               of need, and provide a balance with recent adjustments that  
               were made for other types of early education and care  








          SB 548 (De León)                                        Page 6  
          of ?
          
          
               programs.

          5.   Organizing family child care providers.  Considering the  
               jurisdiction of the Senate Education Committee, this  
               Committee may wish to consider the provisions of this bill  
               that are specific to training programs, best practices, and  
               additional early education and care slots.  This bill is  
               double-referred to the Senate Labor and Industrial  
               Relations Committee, which may consider the collective  
               bargaining provisions of this bill.  

          6.   Fiscal impact.  This bill states intent that $1 million be  
               allocated to implement the initial recommendations of the  
               training committee, and according to the author, the study  
               on best practices for parental engagement will cost  
               approximately $250,000 to complete.  Costs for additional  
               alternative payment programs slots is dependent upon the  
               number of slots that are added. 

          7.   Related and prior legislation. 

          AB 641 (Rendon, 2013) among other things, authorized family  
          child care providers to form, join, participate in, and to seek  
          the certification of, a provider organization to act as their  
          exclusive representative on matters related to child care  
          subsidy programs.  AB 641 was held on the Senate Floor.

          AB 2573 (Furutani, 2012) authorized family child care providers  
          to form, join and participate in provider organizations for  
          purposes of negotiating with state agencies.  AB 2573 was never  
          heard in the Assembly Appropriations Committee.


          AB 101 (John Perez, 2011) among other things, authorized family  
          child care providers to choose whether to be represented by a  
          single provider organization.  AB 101 was vetoed by the  
          Governor, whose veto message read:

                    Maintaining the quality and affordability of  
                    childcare is a very important goal.  So too is  
                    making sure that working conditions are decent  
                    and fair for those who take care of our children.  
                     Balancing these objectives, however, as this  
                    bill attempts to do, is not easy or free from  








          SB 548 (De León)                                        Page 7  
          of ?
          
          
                    dispute. 

                    Today California, like the nation itself, is  
                    facing huge budget challenges.  Given that  
                    reality, I am reluctant to embark on a program of  
                    this magnitude and potential cost.

               SB 867 (Cedillo, 2008) authorized family child care  
               providers to form, join and participate in provider  
               organizations.  SB 867 was vetoed by the Governor, whose  
               veto message read:

                    Given California's significant budget challenge,  
                    I cannot consider bills that would add  
                    significant fiscal pressures to the State's  
                    structural budget deficit. 

               AB 1164 (De Leon, 2007) authorized family child care  
               providers to form, join and participate in provider  
               organizations.  AB 1164 was vetoed by the Governor, whose  
               veto message read:

                    While I support efforts to improve the quality of  
                    child care services and have provided increased  
                    state funding to expand access to subsidized  
                    child care, I cannot support this bill as it has  
                    the potential to add significant fiscal pressures  
                    to the State's structural budget deficit. Family  
                    child care homes currently receive prevailing  
                    market rates for their services. They are  
                    reimbursed for the state-subsidized families they  
                    serve at the same rate as that paid by the  
                    non-subsidized families they serve.

                    Changes in the current reimbursement structure,  
                    increases in family child care provider  
                    reimbursement rates, expanded provider training  
                    efforts, or other program enhancements could come  
                    at the expense of the number of available child  
                    care slots. In light of the current structural  
                    budget deficit, it is imperative that we balance  
                    our fiscal reality and the need to provide  
                    services to working families.
                    








          SB 548 (De León)                                        Page 8  
          of ?
          
          
            SUPPORT
          
          9 to 5
          Children Now
          National Council of Jewish Women California
          Service Employees International Union
          Special Needs Network

            OPPOSITION
           
           None on current version of the bill.

                                      -- END --