BILL ANALYSIS Ó SB 548 Page 1 SENATE THIRD READING SB 548 (De León) As Amended August 17, 2015 Majority vote SENATE VOTE: 25-12 ------------------------------------------------------------------ |Committee |Votes|Ayes |Noes | | | | | | | | | | | | | | | | |----------------+-----+----------------------+--------------------| |Labor |5-2 |Roger Hernández, Chu, |Harper, Patterson | | | |Low, McCarty, | | | | |Thurmond | | | | | | | |----------------+-----+----------------------+--------------------| |Appropriations |12-5 |Gomez, Bloom, Bonta, |Bigelow, Chang, | | | |Calderon, Nazarian, |Gallagher, Jones, | | | |Eggman, Eduardo |Wagner | | | |Garcia, Holden, | | | | |Quirk, Rendon, Weber, | | | | |Wood | | | | | | | | | | | | ------------------------------------------------------------------ SUMMARY: Authorizes family child care providers to form, join SB 548 Page 2 and participate in "provider organizations" for purposes of negotiating with state agencies on specified matters, among other provisions. Specifically, this bill: 1)Defines "family child care provider" 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. 2)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. 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. SB 548 Page 3 5)Requires that, within ten 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 California Department of Education (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. 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 SB 548 Page 4 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. SB 548 Page 5 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. 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 Superintendent of Public Instruction (SPI), other state agencies that administer state-funded child care programs, and their contractors, must meet and confer in good faith regarding all matters within the scope of representation with representatives of a certified provider organization. SB 548 Page 6 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. The bill would also allow for disputes to be submitted to the California State Mediation and Conciliation Service for mediation. 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 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. SB 548 Page 7 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 overall 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 in order to create a sustainable career pathway for the early education workforce. 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. SB 548 Page 8 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 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 that 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. 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 SB 548 Page 9 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. 27) Makes related legislative findings and declarations. FISCAL EFFECT: According to the Assembly Appropriations Committee, this bill would result in the following: 1)Unknown General Fund costs, potentially in the hundreds of millions, to the extent collective bargaining leads to increased salary and benefits and better working conditions for providers, which will lead to higher child care costs. 2)Ongoing General Fund administrative costs to the Public Employee Relations Board (PERB), in the range of $450,000, to process regulations and adjudicate increased unfair practice caseload. Costs are based on the estimate that 85,000 providers will be added to PERB's current jurisdiction of over 2.2 million public employees. PERB will also need to expend staff resources to determine the appropriate bargaining unit for family child care workers. This bill specifically provides that the election costs relative to this process will be reimbursed by participating provider organizations. 3)Ongoing General Fund administrative costs to CalHR, SB 548 Page 10 potentially in the range of $1 million, for workload related to negotiating and administering a Memorandum of Understanding (MOU) with the certified provider organization. CalHR workload includes litigation of unfair labor practices before the PERB, arbitrations over MOU disputes, and lawsuits over alleged wage and hour violations. Potentially significant costs would result if the provider organization and the state are unable to reach future agreements in any area within the scope of representation. 4)Onetime General Fund administrative costs to the CDE of approximately $106,000 and ongoing costs of approximately $57,000 to collect information from providers. CDE does not currently maintain a list of family child care providers. The CDE would need to compile the information from Alternative Payment Providers and maintain information in a database. 5)General Fund cost pressure, likely in the low hundreds of thousands, for staffing of the Partnership on Child Care Training, Education and Quality Improvement. The bill expresses the intent of the Legislature that recommendations made by the partnership are funded with contributions agreed to in an MOU between the provider organization and the Governor. 6)General Fund costs in the low hundreds of thousands for the Governor or his designee to perform the best practices study for engaging families which would increase costs to an unspecified department. Additional cost pressure to implement identified best practices. COMMENTS: This bill proposes to enact the Raising Child Care Quality and Accessibility Act. According to the author, "The current subsidized child care system encompasses more than 120 different agencies contracting with the state as middlemen, who SB 548 Page 11 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." The sponsors state that our current system of child care is fragmented, standards vary greatly, and it is plagued by high turnover among providers, as approximately 40% of providers are leaving the profession each year. In addition, the sponsors note that income inequality is at the forefront of the nation and our state. They state that, according to data from the United States Census Bureau, 47% of California's poor children live in single-mother families and that the majority of California's single-mother households earned less than 200% of the poverty threshold. Noting these two factors, the sponsors argue that California must implement policies that support families in achieving economic stability and ensure they can access a stable, affordable, quality child care system so that they can find work and stay employed. The sponsors believe that this bill will help achieve this by creating more child care slots and allowing childcare providers to organize, creating a more stable workforce and allowing family child care providers to join together on matters that affect their profession. The National Right to Work Committee opposes this bill, arguing that it would force childcare providers to join a union, depriving childcare providers of the right to negotiate workplace conditions for themselves. The National Right to Work Committee argues that allowing childcare workers to organize will increase state costs and hurt taxpayers, childcare providers, and the State of California. SB 548 Page 12 Analysis Prepared by: Ben Ebbink / L. & E. / (916) 319-2091 FN: 0001631