BILL ANALYSIS                                                                                                                                                                                                    �




                   Senate Appropriations Committee Fiscal Summary
                           Senator Christine Kehoe, Chair


          AB 1872 (Alejo) - Child day care facilities: nutrition.
          
          Amended: July 5, 2012           Policy Vote: Human Services 4-2
          Urgency: No                     Mandate: No
          Hearing Date: August 6, 2012                           
          Consultant: Jolie Onodera       
          
          This bill meets the criteria for referral to the Suspense File.
          
          
          Bill Summary: AB 1872 would require, except as provided, a 
          family day care home to provide meals and snacks that meet 
          certain federal nutrition standards and would require family day 
          care homes to keep daily menus of all meals and snacks served. 
          This bill would require the Department of Social Services (DSS) 
          to inform prospective and current providers about the nutrition 
          requirements by posting information on its website, through 
          outreach materials, and during orientation and inspections of 
          providers. This bill would require the DSS to take specified 
          actions with respect to noncompliance, as specified.

          Fiscal Impact:  
                 Potential one-time costs of $150,000 (General Fund) for 
               the DSS to update forms and materials to include the new 
               nutrition requirements.
                 Ongoing costs of approximately $40,000 (General Fund) to 
               the DSS for additional workload to review for compliance at 
               regularly scheduled inspections. 
                 Ongoing costs of $242,000 (Federal Funds) to the CDE for 
               two positions to provide outreach, training, and technical 
               assistance to new sponsors and providers.
                 Potential increased state reimbursement of approximately 
               $250,000 (General Fund) for every five percent increase in 
               participation by FCCH providers in the federal Child and 
               Adult Care Food Program (CACFP) that provides partial 
               reimbursement for meals served to children. This estimate 
               assumes an average of five children served per FCCH. The 
               associated increase in federal fund reimbursement provided 
               to FCCHs is estimated at $4.5 million (Federal Funds).

          Background: Existing federal law establishes the Child and Adult 
          Care Food Program which identifies nutritional standards 








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          following the meal patterns established by the U.S. Department 
          of Agriculture (USDA) and provides reimbursement for meals and 
          snacks served in care centers that comply with CACFP meal 
          standards. The CACFP contributes to the nutritional and economic 
          safety net for low-income children in family day care homes by 
          providing up to $1,062 per child per year in federal 
          reimbursement for participation in the program. Additionally, 
          family day care homes may receive approximately $0.16 per meal 
          in state reimbursement for 75 percent of the breakfast and 
          lunches served to enrolled children.

          Under existing regulations, state child care centers are 
          required to adhere to CACFP nutrition standards as a condition 
          of licensure and are provided the option to participate in the 
          reimbursement program. Family child care homes (FCCHs), however, 
          are not required to adhere to CACFP standards.

          According to the DSS, there are approximately 35,000 family day 
          care homes in California with a capacity to serve about 352,000 
          children. It is estimated that only 50 percent of FCCHs 
          currently participate in the CACFP. 

          Proposed Law: This bill provides that for the purposes of 
          improving nutrition in child day care facilities and increasing 
          providers' capacity to serve healthy foods, the DSS is required 
          to inform prospective and current providers about the USDA CACFP 
          by posting information relating to eligibility, enrollment, and 
          reimbursement on its website, as well as disseminating 
          information through orientation materials, during regular 
          inspections, and through written communications to licensees. 
          Specifically, this bill:
                 Requires that a family day care home shall, at a 
               minimum, provide the amount of food and the components in 
               any meals and snacks served that are specified in the USDA 
               CACFP. The DSS is required to explain the nutritional 
               requirements on its website, DSS outreach material, and 
               during the orientation of prospective family day care home 
               providers.
                 If the CACFP is amended to include new nutritional 
               standards, the DSS may inform providers of the updated 
               standards by provider bulletin or other similar 
               instruction.
                 Exempts a FCCH if a child has a medical necessity, as 
               specified, to the extent necessary to meet the medical 








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               needs of the child.
                 Does not apply to meals or snacks provided by a parent 
               or legal guardian for his or her child at a family day care 
               home.
                 Requires FCCHs to keep daily menus available for parents 
               and guardians to see, of all meals and snacks served. 
                 Requires the DSS to review the status of compliance with 
               the nutrition standards and provisions herein only during 
               regularly scheduled, authorized monitoring inspections. If 
               a FCCH is determined noncompliant with this section, the 
               DSS is to direct the FCCH to relevant nutrition information 
               and training opportunities.
                 Provides that the provisions under which willful or 
               repeated violations of the Child Day Care Facilities Act 
               constitute a misdemeanor are not applicable to the 
               provisions of this bill.

          Related Legislation: AB 2084 (Brownley) Chapter 593/2010 
          requires a licensed child day care facility as of January 1, 
          2012, to follow specified requirements related to the provision 
          of beverages.

          Staff Comments: The provisions of this bill will increase the 
          duties of the DSS by requiring the department to inform 
          prospective and current providers about the CACFP through 
          information posted on its website, orientation materials, during 
          regular inspections, and through written communications to 
          licensees. One-time costs to update forms and materials are 
          estimated at $150,000 (General Fund).

          This bill additionally requires the DSS to review compliance 
          with the nutrition standards and menu provisions specified in 
          this bill during regularly scheduled inspections. Based on an 
          estimated additional five minutes per inspection over 10,500 
          FCCH inspections conducted annually (assuming a 30 percent 
          random sample protocol of the 35,000 FCCHs to be inspected 
          annually) would result in increased workload of approximately 
          $40,000 (General Fund) per year.

          It is estimated that only half of the licensed child care 
          providers in the state participate in the CACFP. To the extent 
          the provisions of this bill result in increased participation by 
          FCCHs in the CACFP, additional federal reimbursement of $1,062 
          per child per year in federal reimbursements could be received. 








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          For every five percent increase in participation, or 875 FCCHs 
          who participate in the CACFP, additional federal reimbursement 
          of over $4.5 million could be received. The additional state 
          reimbursement for these meals is estimated to cost $250,000 
          (General Fund) assuming five children served per FCCH. This 
          estimate assumes $0.1562 per meal for 75 percent of the 
          breakfast and lunches served to enrolled children.

          To the extent the provisions of this bill increase the number of 
          new sponsors and day care home providers enrolling in the CACFP, 
          the Department of Education (CDE) has indicated the provisions 
          of this bill may require additional staffing at a cost of up to 
          $242,000 (Federal Funds) on an ongoing basis to conduct outreach 
          to locate new sponsors in areas where a need is identified, as 
          well as to respond to added inquiries regarding the CACFP from 
          providers, sponsors, and potential new participants. The CDE 
          staff would also provide training and technical assistance for 
          new sponsors and providers. The CDE has indicated the federal 
          funds are available but funding authority would be required to 
          redirect the funds and staff these positions.
          
          Recommended Amendments: Staff recommends a technical amendment 
          for consistency purposes on page 3 of the bill, line 34, as 
          follows:

          If the department determines that a family day care home is 
          noncompliant with this section, based on examining the 
           posted   daily  menu or observing any meal or snack served during 
          the monitoring visit, the department shall direct the family day 
          care home to relevant nutrition information and training 
          opportunities.