BILL ANALYSIS                                                                                                                                                                                                    �




                   Senate Appropriations Committee Fiscal Summary
                            Senator Kevin de Le�n, Chair


          AB 578 (Dickinson) - Crisis nurseries: pilot project and study.
          
          Amended: June 26, 2014          Policy Vote: Human Services 4-0 
          Urgency: No                     Mandate: No
          Hearing Date: August 4, 2014                            
          Consultant: Jolie Onodera       
          
          This bill meets the criteria for referral to the Suspense File.


          Bill Summary: AB 578 would require the Department of Social  
          Services (DSS) to implement a two-year pilot project in the  
          counties of Sacramento and Yolo for the purpose of evaluating  
          the effectiveness of crisis nurseries in lowering the incidence  
          of child abuse in those counties. This bill conditions  
          implementation of the pilot on voluntary participation by all  
          crisis nurseries (3) in those counties and private funding for  
          one-half of the cost of the project.

          Fiscal Impact: 
           Significant costs in the range of $2.7 million (General Fund)  
            over two years to implement the pilot project for the three  
            crisis nurseries in the counties of Sacramento and Yolo, which  
            would consist of half of the costs to operate the crisis  
            nurseries in the pilot counties. Private funds of $2.7 million  
            would be required to cover the remaining 50 percent cost of  
            the pilot project.
           One-time costs to DSS of about $150,000 (General Fund) to  
            prepare and submit the mandated study. 

          Background: Existing law provides for the licensure and  
          regulation by the DSS of crisis nurseries. Crisis nurseries are  
          private or public nonprofit corporations that provide  
          short-term, 24-hour nonmedical residential care and supervision  
          for children under six years of age who are voluntarily placed  
          for temporary care by a parent or legal guardian due to a family  
          crisis or stressful situation for no more than 30 days. (Health  
          and Safety Code � 1516(a).)

          Existing law exempts crisis nurseries from licensure as a child  
          day care facility, and provides that a crisis nursery may  
          provide child day care services for children under the age of  








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          six years at the same site as the crisis nursery. A child may  
          not receive child day care services at a crisis nursery for more  
          than 30 calendar days in a six-month period unless the DSS  
          issues an exception. A child who is receiving child day care  
          services shall be counted in the licensed capacity.

          Currently, there are five crisis nurseries licensed in  
          California, one each in Concord, Davis, and Nevada City, and two  
          in Sacramento. Since 2009, more than 9,000 children have been  
          served by these nurseries. Average lengths of stay have ranged  
          from eight hours to just over 24 hours, with 44 children staying  
          for the maximum allowable days. No exemptions have been  
          requested for children to stay beyond the 30-day limit.
          
          Proposed Law: This bill would require the DSS to implement a  
          two-year pilot project in the counties of Sacramento and Yolo  
          for the purpose of evaluating the effectiveness of crisis  
          nurseries in lowering the incidence of child abuse in those  
          counties. This bill conditions implementation of the pilot on  
          voluntary participation by all crisis nurseries in those  
          counties and private funding for one-half of the cost of the  
          project. The pilot project shall consist of both of the  
          following:
                 Requires DSS to conduct a study of the relationship  
               between crisis respite care and incidents of reported child  
               abuse in pilot project counties.
                 Requires DSS to report the results of the study to the  
               Legislature on or before December 31, 2016, as specified.

          This bill repeals the section on January 1, 2017, unless a later  
          enacted statute deletes or extends that date.

          Related Legislation: AB 2228 (Cooley) 2014 revises regulatory  
          licensing requirements for crisis nurseries including the  
          duration of services provided, licensed capacity, education and  
          training requirements, staff-to-child ratios, and other  
          requirements. This bill is pending hearing in this Committee.

          Staff Comments: Based on historical expenditures for crisis  
          nurseries in the counties of Yolo and Sacramento, annual costs  
          to operate the three crisis nurseries is about $2.7 million  
          ($660,000 for Yolo Crisis Nursery and $2 million for Sacramento  
          Crisis Nurseries). A two-year pilot project would cost about  
          $5.4 million, with 50 percent coming from private funds, and the  








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          remaining $2.7 million from the state (General Fund).

          The DSS would incur one-time costs of about $150,000 (General  
          Fund) to prepare and complete the mandated study.