BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                     SB 548


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          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  








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          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.








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          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  








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            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.








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             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.








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          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.









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          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.









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             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  








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            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,  








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            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  








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          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.









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          Analysis Prepared by:                                             
                          Ben Ebbink / L. & E. / (916) 319-2091  FN:  
          0001631