BILL ANALYSIS                                                                                                                                                                                                    �




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


          SB 766 (Yee) - Ancillary Day Care Centers
          
          Amended: January 6, 2014        Policy Vote: Human Services 6-0
          Urgency: No                     Mandate: No
          Hearing Date: January 23, 2014                               
          Consultant: Jacqueline Wong-Hernandez                       
          
          SUSPENSE FILE.

          
          Bill Summary: SB 766 requires ancillary day care centers to  
          comply with certain health and safety requirements in the  
          provision of child care, and to ensure that at least one care  
          provider onsite is 18 years of age or older. This bill also  
          requires any person who is responsible for engaging with  
          children in an ancillary day care center to be registered as a  
          TrustLine provider.

          Fiscal Impact: 
              Expands TrustLine registry: Potentially significant costs  
              to the Department of Social Services (DSS) and the  
              Department of Justice, fully recovered by fees charged to  
              applicants.
              Investigation/Enforcement: This bill may result in  
              increased complaints to DSS, and the need for DSS to  
              promulgate regulations governing its interaction with  
              ancillary day care centers. See staff comments.

          Background: Ancillary day care centers are day care centers  
          associated with an athletic club, grocery store, or other  
          business or group of businesses for which the day care center is  
          ancillary to its principal business activity and which provides  
          day care services, with or without a fee, for the children of  
          the clients or customers while the clients or customers are  
          engaged in shopping for, or purchasing, goods or services from  
          that business or group of businesses. Existing law exempts  
          ancillary day care centers from licensure under the California  
          Child Care Facilities Act. 

          Existing law does require, however, that ancillary day care  
          providers be registered under California's "TrustLine"  
          fingerprint registry administered by the Department of Social  








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          Services (DSS). (HSC 1596.656)

          The TrustLine fingerprint registry database conducts background  
          checks on license-exempt child care providers such as  
          babysitters, nannies, transport escort services and child care  
          providers in license-exempt child care centers, including  
          ancillary day care centers. The registry is maintained by DSS,  
          which contracts certain administrative functions to the  
          California Child Care Resource and Referral Network. 


          Existing law requires DSS to deny an application if the  
          TrustLine applicant has been convicted of a crime, other than a  
          minor traffic violation, unless the director grants an  
          exemption, as specified. (HSC 1596.607) 

          Proposed Law: SB 766 requires ancillary day care centers to  
          ensure the presence of at least one care provider who is 18  
          years or older, to ensure that care providers are cleared  
          through the state's fingerprinting registry, and to ensure that  
          at least one care provider present in the center has received  
          training in pediatric CPR and first aid. Additionally, this bill  
          requires ancillary day care centers to establish health and  
          safety protocols informing staff and parents about facility  
          policies related to medical emergencies.

          Related Legislation: AB 222 (Adams) Ch. 431/2010 allows persons  
          under 18 years of age to be employees of ancillary day care  
          centers without being registered for TrustLine, and  allows  
          employees whose clearance is pending to continue to work until  
          DSS denies their TrustLine application and any right to appeal  
          has been exhausted or expired. 

          SB 702 (DeSaulnier) Ch.199/2009, established the definition of  
          "ancillary day care center" and required any person providing  
          child care services in an ancillary day care center to obtain a  
          TrustLine clearance. Additionally, it required the TrustLine fee  
          to include the full cost of processing the applications and  
          maintaining the registry not to exceed the actual cost of the  
          processing and maintenance activities. 


          Staff Comments: This bill places new requirements on ancillary  
          day care centers. To the extent that they comply, without  








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          incident, any costs will be the responsibility of the the  
          ancillary day care centers (and the businesses that operate  
          them). The costs of non-compliance are less certain, as this  
          bill creates neither new enforcement authority nor procedures.  
          The responsibility to enforce, and likelihood of enforcement, is  
          unclear. The DSS, which regulates licensed day care centers, has  
          indicated that it does not regulate ancillary day centers and  
          does not have the authority to enforce statutory requirements on  
          those entities. 

          This bill requires ancillary day care centers to comply with new  
          requirements relative to staff training, developing health and  
          safety protocols, and informing parents of the protocols. It is  
          not clear what would happen if a particular ancillary day care  
          center failed to do so. The DSS has indicated that if it  
          received a complaint, it could investigate the complaint but has  
          no authority to cite, penalize, or otherwise enforce a change of  
          action on the part of the ancillary day care center. While a  
          criminal complaint would be referred to local law enforcement,  
          there is no mechanism for enforcing an administrative  
          requirement. 

          As requirements imposed upon ancillary day care centers  
          increase, it is likely that enforcement mechanisms will be  
          necessary and regulations will have to be promulgated to guide  
          DSS (or any enforcing agency) on processes for handling  
          complaints and violations. The Administrative Procedure Act  
          (beginning at Section 11340 of the Government Code) prohibits  
          state agencies from issuing or enforcing any rule, regulation,  
          order, or standard of general application unless it has been  
          issued as a regulation under the Administrative Procedure Act.  
          In order to clarify the requirements of this bill, the state  
          will most likely have to adopt implementing regulations.
          
          This bill expands the requirement in existing law for TrustLine  
          registry. Existing law requires an adult "who provides child  
          care or supervision" in an ancillary day care center to register  
          with Trustline. This bill expands that provision to anyone who  
          is "responsible for engaging with children cared for" in such a  
          facility. Ancillary day care centers currently pay fees for  
          their employees to register (approximately $170 per applicant),  
          which cover all costs to DSS administration, TrustLine, and the  
          Department of Justice to process the application and  
          registration. 








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