BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 366
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          CONCURRENCE IN SENATE AMENDMENTS
          AB 366 (Mullin)
          As Amended August 23, 2004
          2/3 vote.  Urgency
           
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          |ASSEMBLY:  |73-0 |(May 8, 2003)   |SENATE: |34-0 |August 25,     |
          |           |     |                |        |     |2004           |
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           Original Committee Reference:   HUM. S.  

           SUMMARY  :  Requires the Department of Social Services (DSS) to  
          operate a substitute child care employee registry (SER) pilot  
          program providing clearance for temporary child care employees  
          until January 1, 2008, authorizes continued operation at DSS'  
          discretion thereafter, provides, and makes related changes to  
          the SER program.

           The Senate amendments  :

          1)Add legislative findings on the value of SERs and their  
            licensing and oversight under quality initiatives in the  
            state's Child Care and Development Fund plan.

          2)Define "substitute employer registry" to mean any organization  
            licensed to provide cleared employees to a child care facility  
            on a temporary placement basis.

          3)Require DSS to adopt regulations to permit registries to  
            submit fingerprint images to the Department of Justice for  
            child care workers associated with registries.

          4)Require DSS to operate the substitute child care registry  
            pilot program until January 1, 2008, and thereafter authorizes  
            DSS to operate the program at its discretion.

          5)Require rather than permit DSS to charge participating  
            registries reasonable application and licensing fees for each  
            office within the region in which they are providing services,  
            with the revenues collected used by DSS to monitor child care  
            facilities participating in the SER program.

          6)Prohibit DSS from using any portion of the licensing revenue  
            sooner than 30 days after notification in writing to the Joint  








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            Legislative Budget Committee.
            
          7)Revise the list of counties participating in the SER program,  
            reducing the total from 11 to seven, adding Orange and  
            Sacramento counties, and deleting six other counties, and  
            limit the pilot program only to those counties

          8)Require DSS to report to the Legislature by May 1, 2005, on  
            the use of state personnel for the SER program and on the  
            program's status and progress.

          9)Prohibit licensing fees from being charged to temporary  
            employees of the SERs, except for fees association with  
            criminal background clearances.

          10)Express legislative intent to support DSS costs for operating  
            the pilot program by reallocating unearned child care contract  
            funds, that the allocation of funds be accomplished by  
            interagency agreement between SDE and DSS, not to exceed  
            $400,000, less any licensing fees collected.

          11)Provide that DSS is not required to process criminal  
            background checks for child care employees until July 1, 2005,  
            to the extent that the bill creates increased background  
            clearance caseload for the Department of Justice.

           EXISTING LAW  :

          1)Establishes procedures for licensure of child care facilities  
            by DSS.

          2)Requires all employees of a licensed child care facility to  
            receive a criminal record clearance from DSS.

          3)Authorizes DSS to operate a substitute child care employee  
            registry pilot program in 11 California counties to permit the  
            registries to submit fingerprint cards and child abuse index  
            information to child care providers who need prescreened,  
            qualified employees on short notice.

          4)Authorizes DSS to charge registry providers an offsetting  
            administrative fee to cover DSS' costs for the program.

           AS PASSED BY THE ASSEMBLY  , this bill:









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          1)Provided that child care workers employed by SER shall be  
            registered with the registry, not the individual child care  
            facility temporarily employing him or her.

          2)Clarified that employee records must be maintained at the  
            central office of each registry rather than at the facility.

           FISCAL EFFECT  :  Up to $400,000 reallocated from unearned and  
          unspent child care contract funds, which would otherwise be  
          allocated to specified purposes, i.e., SDE accounts payable,  
          reimbursement of alternative payment programs, and one-time  
          expenditures to benefit children in subsidized child care.

           COMMENTS  :  SER pilot projects were initially authorized by SB  
          933 (Thompson), Chapter 311, Statutes of 1998, to permit the  
          child care industry to employ temporary workers whose criminal  
          and health background clearances are obtained and job  
          qualifications verified by a central registry rather than by  
          individual child care centers.  SER screening permits temporary  
          employees to fill in on short notice when staff absences and  
          other emergencies occur. 

          Once cleared, each employee is given a DSS-approved certificate  
          allowing facilities to hire him or her assured that the  
          standards have been met.  Child care facilities thereby avoid  
          the time and expense of performing the screenings themselves.   
          SERs are not permitted to hire persons who require an exemption  
          from the criminal background clearance.

          The demonstration project covered 11 counties over the past  
          three years, and it is generally considered by the child care  
          community to have been a success meriting statewide expansion.   
          However, the projects were ended by DSS on September 1, 2002,  
          due to budgetary pressures. 

          The number of projects in the bill is reduced by the bill from  
          11 to seven, eliminating Monterey, San Benito, San Luis Obispo,  
          Santa Barbara, Santa Cruz and Venture, and adding Orange and  
          Sacramento counties.

          Senate amendments provide that the SER projects are to be funded  
          by a combination of licensing fees charged to participating  
          registries and unspent and unearned child care contract funds.   
          The unspent funds currently are allocated for designated  
          purposes such as SDE accounts payable and reimbursement of  








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          alternative payment programs for the provision of additional  
          services.  The total cost is not to exceed $400,000, less  
          revenues generated by the licensing fees.  The bill makes clear  
          that funding is not to come from federal funds available to  
          improve the quality of care.
           

          Analysis Prepared by  :    Casey McKeever / HUM. S. / (916)  
          319-2089 


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