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. ----------------------------------------------------------------- | | | | | | ----------------------------------------------------------------- |--------------------------------+--------------------------------| | | | |Version: April 14, 2015 |Policy Vote: ED. 7 - 2, L. & | | | I.R. 4 - 1 | | | | |--------------------------------+--------------------------------| | | | |Urgency: No |Mandate: No | | | | |--------------------------------+--------------------------------| | | | |Hearing Date: May 28, 2015 |Consultant: Jillian Kissee | | | | ----------------------------------------------------------------- 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 SB 548 (De León) Page 1 of ? 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, SB 548 (De León) Page 2 of ? 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 SB 548 (De León) Page 3 of ? 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. SB 548 (De León) Page 4 of ? 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 SB 548 (De León) Page 5 of ? 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. SB 548 (De León) Page 6 of ? 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: SB 548 (De León) Page 7 of ? 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 SB 548 (De León) Page 8 of ? 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. -- END --