BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON APPROPRIATIONS
                             Senator Ricardo Lara, Chair
                            2015 - 2016  Regular  Session

          SB 548 (De León) - Child care: family child care providers:  
          bargaining representatives.
          
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          |Version: April 14, 2015         |Policy Vote: ED. 7 - 2, L. &    |
          |                                |          I.R. 4 - 1            |
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          |Urgency: No                     |Mandate: No                     |
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          |Hearing Date: May 28, 2015      |Consultant: Jillian Kissee      |
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          SUSPENSE FILE.  AS AMENDED.


          Bill  
          Summary:  This bill gives family child care providers the right  
          to form, join, and participate in provider organizations that  
          will act as their exclusive representative, 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.


          Fiscal Impact (as approved on May 28,  
          2015):  
           Major costs to the state attributed to various state agencies  
            being involved in the collective bargaining process, potential  
            increases in provider wages and benefits derived from  
            negotiations, potential additional child care slots, the  
            establishment of a training partnership committee, the intent  
            to provide $1 million to implement initial committee  
            recommendations, and a best practices study for parent  







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            engagement.  See staff comments.


          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.


          Proposed Law:  
           This bill gives family child care providers the right to form,  
          join, and participate in provider organizations, and requires,  
          if a family child care provider organization is certified by the  
          Public Employment Relations Board, 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 that 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,  








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               join, and participate in provider organizations of their  
               own choosing for the purpose of being represented. 

             2.   Includes all of the following in the scope of  
               representation:

                  A.        The administration of laws and regulations  
                    governing licensing for providers.

                  B.        Joint labor-management committees.

                  C.        Contract grievance arbitration.

                  D.        Expanded access to professional development  
                    and training opportunities for providers, including,  
                    but not limited to, through the training partnership  
                    established pursuant to this bill, and state  
                    contributions to the training partnership.

                  E.        Benefits for providers.

                  F.        Payment procedures for state-funded child care  
                    programs.

                  G.        Reimbursement rates, including, but not  
                    limited to, rate add-ons for providers who complete  
                    additional training, and other economic matters.

                  H.        Expanded access to and funding for food and  
                    nutrition programs.

                  I.        The deduction of membership dues and other  
                    voluntary deductions authorized by individual family  
                    child care providers, including, but not limited to,  
                    honoring maintenance of check off agreements, and  
                    allocation of the costs of implementing such a  
                    deduction system.

                  J.        Expanded access to the state-funded child care  
                    program to families in need of subsidies.

                  AA.       Any changes to current practice, as specified.

             3.   At the request of a provider organization for  








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               information on child care providers, the State Department  
               of Social Services must make specified provider information  
               available within 10 days and the California Department of  
               Education, within 30 days.

             4.   Requires a certification process, as specified, that  
               includes the Public Employment Relations Board (PERB) to  
               conduct an election to certify a provider organization as  
               the exclusive bargaining representative.

             5.   Creates a representation process that, among other  
               things, requires the Governor, through the Department of  
               Human Resources, in consultation with the Superintendent of  
               Public Instruction, other state agencies that administer  
               state-funded child care programs, and their contractors, to  
               meet and confer in good faith regarding on all matters  
               within the scope of representation with representatives of  
               a certified provider organization.

           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 (training committee). The membership of  
               the 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  
               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. 








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             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. 



             5.   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  








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                    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  
                    schools. 



             6.   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. 








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             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. 


          Related  
          Legislation:1.    
          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, who cited budget constraints.  SB 867 (Cedillo, 2008)  
          and AB 1164 (De Leon, 2007), similar to AB 101, were also vetoed  
          by the Governor for similar reasons.


          Staff  
          Comments:  Ultimately, the costs of this bill are unknown.   
          However, significant increases in costs sustained by the state  
          can be anticipated in the following areas:








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           Additional slots: This bill includes Legislative intent to  
            crease an unspecified amount of additional slots in  
            alternative payment voucher programs for children living in  
            extreme poverty.  For illustrative purposes, an additional  
            1,000 slots would cost roughly $8 million at current child  
            care reimbursement rates.

           PERB: Significant upfront administrative costs to determine  
            the bargaining unit, including holding an election.  The PERB  
            would require 3 positions (1 administrative law judge, 1  
            mediator, and 1 staff attorney) to complete this workload.   
            This bill specifically provides that the election costs will  
            be reimbursed by participating provider organizations.  

           State Negotiations: Significant workload to CalHR for  
            negotiating and administering a Memorandum of Understanding  
            (MOU) with the certified provider organization that is binding  
            on CDE and DSS.  The level of increased staffing needed at  
            CalHR is unknown since the actual number of potential unit  
            members is unknown, as this would drive the number of  
            grievances and litigation.  Additional workload of CalHR would  
            include litigating unfair labor practices before the PERB,  
            arbitrations over MOU disputes, and lawsuits over alleged wage  
            and hour violations.  To the extent increases in salaries and  
            benefits for child care providers result from negotiations, it  
            would lead to higher child care costs.  Potentially  
            significant costs would result if the provider organization  
            and state are unable to reach future agreements in any area  
            within the scope of representation.

           Best practices study: The Governor or his designee is required  
            to perform the best practices study for engaging families  
            which would increase costs to an unspecified department.   
            These costs could be in the low hundreds of thousands, with an  
            additional cost pressure to implement identified best  
            practices.

           Partnership on Child Care Training, Education, and Quality  
            Improvement: This committee is to be made up of  
            representatives of the certified provider organization and  
            designees of the Governor.  Establishment of the committee  
            increases costs to an unspecified department, potentially in  
            the low hundreds of thousands of dollars, to staff the  








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            committee.  This bill also provides that it is the  
            Legislature's intent to allocate $1 million in the Budget Act  
            of 2015 to carry out the initial recommendations of the  
            committee.

          Author Amendments (as adopted on May 28, 2015): Amendments would  
          provide various clarifications such as (1) the requirements  
          regarding the petitions to be certified as the exclusive  
          representative for an appropriate group of providers, (2)  
          defining an appropriate unit of providers, (3) the procedures  
          for adding providers to an existing unit, and (4) the scope of  
          the training committee.  


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