BILL ANALYSIS Ó ----------------------------------------------------------------- |SENATE RULES COMMITTEE | SB 548| |Office of Senate Floor Analyses | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ----------------------------------------------------------------- THIRD READING Bill No: SB 548 Author: De León (D) Amended: 6/1/15 Vote: 21 SENATE EDUCATION COMMITTEE: 7-2, 4/22/15 AYES: Liu, Block, Hancock, Leyva, Mendoza, Monning, Pan NOES: Runner, Vidak SENATE LABOR & IND. REL. COMMITTEE: 4-1, 4/29/15 AYES: Mendoza, Jackson, Leno, Mitchell NOES: Stone SENATE APPROPRIATIONS COMMITTEE: 5-2, 5/28/15 AYES: Lara, Beall, Hill, Leyva, Mendoza NOES: Bates, Nielsen SUBJECT: Child care: family child care providers: bargaining representatives SOURCE: Service Employees International Union State Council DIGEST: 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. ANALYSIS: SB 548 Page 2 Existing law: 1)Requires that full-day care centers and family child care homes, with certain exceptions, be licensed and registered with the state. The licensing fee is dependent on the number of children that the centers or homes take care of. Family child care homes, where the child care is provided by someone who resides in the home where the care is provided, may only take care of up to 14 children, while day care centers may be licensed for additional children. (Health and Safety Code §§ 1596.78, 1596.80, and 1596.803) 2)Allows the Superintendent of Public Instruction (SPI) to develop standards for quality child care programs and to enter into contracts with child care centers and family child care homes. Existing law also authorizes the California Department of Education (CDE) to create alternative payment providers in each county to establish a reimbursement system for subsidized child care. (Education Code § 8220-8227, 8263) 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: i) Provides child care in his or her own home or in the home of the child receiving care. ii) Is exempt from licensing requirements. Provider organizations 2) Gives family child care providers the right to form, SB 548 Page 3 join, and participate in provider organizations of their own choosing for the purpose of being represented. 3) Extends the state action antitrust exemption to the activities of the family child care providers and their representatives. This bill also states, however, that the status of family child care providers as independent business owners does not change, nor does this bill classify family child care providers as public employees. 4) Creates a right for family child care providers to form provider organizations. Child care providers would retain the right to join or not join such an organization. 5) Requires that, within 10 days of receipt of a request from a provider organization, the State Department of Social Services (DSS) must make available to that provider organization information regarding licensed family child care providers, including each provider's contact information. 6) Requires that, within 30 days of receipt of a request from a provider organization, the CDE, with the assistance of the relevant organization, must collect information regarding family child care providers, including each provider's contact information. The provider organization must bear the reasonable costs of collecting the information. 7) Requires that, upon written request of a family child care provider, the CDE and the DSS must remove the family child care provider's home address and telephone number from the above-described lists. 8) Provides that a unit of provider organizations may choose to designate the provider organization that shall be the exclusive representative for negotiations with the state. In order for a unit of provider organizations to be considered appropriate, the unit must be statewide and include all family child care providers. 9) Provides that the Public Employment Relations Board (PERB) must conduct an election to certify the provider organization as the exclusive bargaining representative. SB 548 Page 4 PERB is also required to receive and act upon challenges, petitions for unit certification, and other representation issues. A provider organization petitioning for an election to be certified is required to include in its petition proof of a 30% showing of interest designating the provider organization to act as the exclusive representative. The provider organization must pay the reasonable costs of verifying this showing of interest. 10) Empowers PERB to contract with a neutral third party to conduct all necessary elections and other representation requests. 11) Provides that there shall be no more than one bargaining unit at any time. A certified provider organization may file a request with the PERB for an election to add providers to an existing unit. 12) Provides that the child care organization would represent all child care providers in negotiations with the Governor and state agencies on issues that fall within the child care provider organization's scope of representation. 13) Provide that issues within the scope of representation include: 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. e) Benefits for providers. f) Payment procedures for child care subsidy programs. g) Reimbursement rates for providers participating in a child care subsidy program including, but not limited to, rate add-ons for providers who complete extra training. h) Expanded access to and funding for food and nutrition programs. i) The deduction of membership dues and fair share fees. SB 548 Page 5 j) Expanded access to state-funded child care program to families in need of subsidies. aa) Any changes to current practice other than those listed in above that would improve recruitment and retention of child care providers, quality of child care programs, additional education of qualified child care providers, and the promotion the health and safety of providers and the children in their care. 14) Requires that The Governor, through the Department of Personnel Administration, in consultation with the SPI, other state agencies that administer state-funded child care programs, and their contractors, must meet and confer in good faith regarding on all matters within the scope of representation with representatives of a certified provider organization. 15) Provides that if an agreement is reached between the Governor, through the Department of Personnel Administration, and the certified provider organization, they jointly shall prepare a written memorandum of understanding. 16) Provides the child care provider organization with the right to enter an agreement with the state for the deduction of membership dues and fair share fees from child care subsidy payments made to providers. 17) Prohibits the child care provider organization from directing or calling a strike. These amendments would also allow for disputes to be submitted to the California State Mediation and Conciliation Service for mediation. Training 18) 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 Partnership on Child Care Training, Education, and Quality Improvement. The membership of the Joint Partnership is to include representatives of the certified provider organization and designees of the Governor. 19) Requires the partnership to make recommendations SB 548 Page 6 regarding, and oversee, the expenditures. Authorizes the partnership to consult with other early education and care advocates, the SPI or designees, representatives of community colleges, higher education institutions, resource and referral networks, unions that operate training programs, apprenticeship programs, and early education and care employers. Requires the certified provider organization to carry out the recommendations of the partnership. 20) Requires the partnership 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. 21) Requires the partnership to play a coordinating role in ensuring that the training offered to providers: 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. 22) Authorizes the partnership'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 expand and improve provider training and skills on subjects including but not limited to child literacy, children with special needs, and children's social and emotional development. c) Ways to support providers who seek to obtain SB 548 Page 7 training or higher education credentials in child development or a related field. d) Ways to work with existing training providers and educational institutions, including but not limited to resource and referral networks, community colleges, and apprenticeship programs. e) Ways to make training and education, which may include unit-bearing courses and training, available to child care workers and other workers employed by child care centers and schools. 23) States it is the intent of the Legislature to allocate $1 million in the 2015 Budget to carry out the initial recommendations of the partnership, and that in subsequent years, the recommendations of the partnership be funded by contributions agreed to for that purpose in the memorandum of understanding between the provider organization and the Governor. Best practices 24) 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. 25) 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. 26) Requires the Governor or designee, in conducting the study, to consult with stakeholders, including the DSS, 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 27) States it is the intent of the Legislature to create an SB 548 Page 8 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. Comments 1)Antitrust Law and the "State Action" Doctrine. As family child care home providers are self-employed, any arrangement where the providers would get together and fix prices and level of services would immediately encounter antitrust difficulties. California state antitrust laws are based on the federal Sherman Act of 1890, which prohibits "every contract, combination, or conspiracy in restraint of trade", as well as the Clayton Act of 1914. However, court decisions since the creation of these antitrust laws, particularly Parker v. Brown (317 U.S. 341) in 1943, have acknowledged that the federal government did not intend for antitrust laws to apply to states and their agents when those agents are engaged in activities that are tied to a state policy and are under some management or supervision from the state. By explicitly stating that the formation of provider organizations are exempted under the "state action" doctrine in antitrust law, this bill exempts the activities of family child care providers and their representatives from federal and state antitrust laws. 2)Training programs. This bill requires the training partnership 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 partnership, and the development of best practices. According to the author, the goal is to engage the Governor and secure his full participation in these SB 548 Page 9 endeavors. The author may wish to consider expanding participation on the training committee to include the DSS, the Department of Education, and parents, and include consultation with the CDE 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 programs. FISCAL EFFECT: Appropriation: No Fiscal Com.:YesLocal: No According to the Senate Appropriations Committee, this bill would impose 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 engagement. See staff comments in the Senate Appropriations Committee analysis for a full discussion of cost estimates. SUPPORT: (Verified5/29/15) Service Employees International Union (source) 9 to 5 American Federation of State, County and Municipal Employees Berkeley City Council California Labor Federation California National Organization for Women Children Now Congressman Ted Lieu Consumer Attorneys of California Monterey County Board of Supervisors National Council of Jewish Women California Our Family Coalition SB 548 Page 10 Special Needs Network St. Paul Lutheran Church UAW Local 2865 UAW Local 5810 Western Center on Law & Poverty OPPOSITION: (Verified5/29/15) None received ARGUMENTS IN SUPPORT: According to the California Labor Federation, this bill helps the poorest working parents lift their families out of poverty, help close the educational achievement gap for low-income children, help support parents' efforts to provide learning and development opportunities at home, and strengthen jobs in the child care and development sector. High quality, affordable child care can help break the cycle of poverty by better preparing children for school and life. A quality child care system depends upon dedicated and stable providers. Prepared by:Lynn Lorber / ED. / (916) 651-4105 6/1/15 18:16:48 **** END ****