The Child Care and Development Services Act, administered by the State Department of Education, provides that children from infancy to 13 years of age are eligible for federal and state subsidized child development services if their families meet at least one requirement in each of certain areas.

This bill would require, for purposes of determining eligibility for services under the act, that the income of a person who is on state or federal active duty, active duty for special work, or Active Guard and Reserve duty in the military not include the amount of the basic allowance for housing provided to that person, pursuant to specified federal law, if the allowance is equal to the lowest rate of the allowance for the military housing area in which the person resides.

The act requires the department to contract with local contracting agencies for alternative payment programs for services provided throughout the state, and authorizes alternative payment programs for services provided in licensed centers and family day care homes and for other types of programs that conform to applicable law.

This bill would require the department to contract with alternative payment programs, instead of local contracting agencies, for services provided throughout the state.

The act requires an alternative payment program to reimburse a licensed provider for the child care of a subsidized child based on the rate charged to nonsubsidized families or the rate established by the provider for prospective nonsubsidized families, as specified. The act requires a licensed child care provider to submit to the alternative payment program and the local resource and referral agency a copy of the providers rate sheet listing the rates charged and other specified policies and statements. The act authorizes a licensed child care provider to alter rate levels for subsidized children once per year and requires a licensed child care provider to provide the alternative payment program and local resource and referral agency with an updated rate sheet, and other specified policies and statements, to reflect the altered rate levels.

This bill would delete the provision authorizing a licensed child care provider to alter rate levels for subsidized children once per year and the related requirement to provide an updated rate sheet, and other specified policies and statements, to the alternative payment program and local resource and referral agency.

The act requires an alternative payment program to verify provider rates no less frequently than once a year, as provided, and requires the department to develop regulations for addressing discrepancies in provider rate levels identified through this verification process.

This bill would delete those requirements.

(1)The Child Care and Development Services Act, administered by the State Department of Education, provides that children from infancy to 13 years of age are eligible for federal and state subsidized child development services if their families meet at least one requirement in each of certain areas.

This bill would require, for purposes of determining eligibility for services under the act, that the income of a person who is on state or federal active duty, active duty for special work, or Active Guard and Reserve duty in the military not include the amount of the basic allowance for housing provided to that person, pursuant to specified federal law, if the allowance is equal to the lowest rate of the allowance for the military housing area in which the person resides.

The act requires the department to contract with local contracting agencies for alternative payment programs for services provided throughout the state, and authorizes alternative payment programs for services provided in licensed centers and family day care homes and for other types of programs that conform to applicable law. The act requires an alternative payment program, with certain exceptions, to have no less than 36 months to expend funds allocated to that program in any fiscal year, and requires the Superintendent of Public Instruction to develop a process that provides alternative payment programs no less than 36 months to expend funds allocated to that program in any fiscal year.

This bill would require an alternative payment program, with those same exceptions, to have no less than 12 months, instead of 36 months, to expend funds allocated to that program in any fiscal year, and would require the Superintendent to develop a process that provides alternative payment programs no less than 12 months, instead of 36 months, to expend funds allocated to that program in any fiscal year. The bill would require the department to contract with alternative payment programs, instead of local contracting agencies, for services provided throughout the state.

The act requires an alternative payment program to reimburse a licensed provider for the child care of a subsidized child based on the rate charged to nonsubsidized families or the rate established by the provider for prospective nonsubsidized families, as specified. The act requires a licensed child care provider to submit to the alternative payment program and the local resource and referral agency a copy of the providers rate sheet listing the rates charged and other specified policies and statements. The act authorizes a licensed child care provider to alter rate levels for subsidized children once per year and requires a licensed child care provider to provide the alternative payment program and local resource and referral agency with an updated rate sheet, and other specified policies and statements, to reflect the altered rate levels.

This bill would delete the provision authorizing a licensed child care provider to alter rate levels for subsidized children once per year and the related requirement to provide an updated rate sheet, and other specified policies and statements, to the alternative payment program and local resource and referral agency.

The act requires an alternative payment program to verify provider rates no less frequently than once a year, as provided, and requires the department to develop regulations for addressing discrepancies in provider rate levels identified through this verification process.

This bill would delete those requirements.

(2)Existing federal law provides for the federal Supplemental Nutrition Assistance Program (SNAP), known in California as CalFresh, under which supplemental nutrition assistance benefits allocated to the state by the federal government are distributed to eligible individuals by each county. Existing federal law establishes eligibility requirements, including specified income eligibility standards, for receipt of CalFresh benefits.

This bill would require the State Department of Social Services, on or before September 1, 2019, to establish the Military Families Food Assistance Program to provide food assistance benefits to a household that includes a person who is on state or federal active duty, active duty for special work, or Active Guard and Reserve duty in the military and who receives a specified basic allowance for housing that, when counted as income, makes the household ineligible for the maximum CalFresh benefits. benefits provided for that household size. The bill would require the benefits provided under the Military Families Food Assistance Program to be equivalent to the benefits that the household would be provided under the CalFresh program if the basic allowance for housing was not counted as income under the CalFresh program, and would require the laws, regulations, and guidance governing SNAP and the CalFresh program to also govern the Military Families Food Assistance Program. To the extent the bill would expand the duties of counties to administer this Military Families Food Assistance Program, the bill would impose a state-mandated local program.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.

(1)The Child Care and Development Services Act, administered by the State Department of Education, provides that children from infancy to 13 years of age are eligible for federal and state subsidized child development services if their families meet at least one requirement in each of certain areas.

This bill would require, for purposes of determining eligibility for services under the act, that the income of a person who is on state or federal active duty, active duty for special work, or Active Guard and Reserve duty in the military not include the amount of the basic allowance for housing provided to that person, pursuant to specified federal law, if the allowance is equal to the lowest rate of the allowance for the military housing area in which the person resides.

The act requires the department to contract with local contracting agencies for alternative payment programs for services provided throughout the state, and authorizes alternative payment programs for services provided in licensed centers and family day care homes and for other types of programs that conform to applicable law. The act requires an alternative payment program, with certain exceptions, to have no less than 36 months to expend funds allocated to that program in any fiscal year, and requires the Superintendent of Public Instruction to develop a process that provides alternative payment programs no less than 36 months to expend funds allocated to that program in any fiscal year.

This bill would require an alternative payment program, with those same exceptions, to have no less than 12 months, instead of 36 months, to expend funds allocated to that program in any fiscal year, and would require the Superintendent to develop a process that provides alternative payment programs no less than 12 months, instead of 36 months, to expend funds allocated to that program in any fiscal year. The bill would require the department to contract with alternative payment programs, instead of local contracting agencies, for services provided throughout the state.

The act requires an alternative payment program to reimburse a licensed provider for the child care of a subsidized child based on the rate charged to nonsubsidized families or the rate established by the provider for prospective nonsubsidized families, as specified. The act requires a licensed child care provider to submit to the alternative payment program and the local resource and referral agency a copy of the providers rate sheet listing the rates charged and other specified policies and statements. The act authorizes a licensed child care provider to alter rate levels for subsidized children once per year and requires a licensed child care provider to provide the alternative payment program and local resource and referral agency with an updated rate sheet, and other specified policies and statements, to reflect the altered rate levels.

This bill would delete the provision authorizing a licensed child care provider to alter rate levels for subsidized children once per year and the related requirement to provide an updated rate sheet, and other specified policies and statements, to the alternative payment program and local resource and referral agency.

The act requires an alternative payment program to verify provider rates no less frequently than once a year, as provided, and requires the department to develop regulations for addressing discrepancies in provider rate levels identified through this verification process.

This bill would delete those requirements.

The Child Care and Development Services Act, administered by the State Department of Education, provides that children from infancy to 13 years of age are eligible for federal and state subsidized child development services if their families meet at least one requirement in each of certain areas.

This bill would require, for purposes of determining eligibility for services under the act, that the income of a person who is on state or federal active duty, active duty for special work, or Active Guard and Reserve duty in the military not include the amount of the basic allowance for housing provided to that person, pursuant to specified federal law, if the allowance is equal to the lowest rate of the allowance for the military housing area in which the person resides.

The act requires the department to contract with local contracting agencies for alternative payment programs for services provided throughout the state, and authorizes alternative payment programs for services provided in licensed centers and family day care homes and for other types of programs that conform to applicable law. The act requires an alternative payment program, with certain exceptions, to have no less than 36 months to expend funds allocated to that program in any fiscal year, and requires the Superintendent of Public Instruction to develop a process that provides alternative payment programs no less than 36 months to expend funds allocated to that program in any fiscal year.

This bill would require an alternative payment program, with those same exceptions, to have no less than 12 months, instead of 36 months, to expend funds allocated to that program in any fiscal year, and would require the Superintendent to develop a process that provides alternative payment programs no less than 12 months, instead of 36 months, to expend funds allocated to that program in any fiscal year. The bill would require the department to contract with alternative payment programs, instead of local contracting agencies, for services provided throughout the state.

The act requires an alternative payment program to reimburse a licensed provider for the child care of a subsidized child based on the rate charged to nonsubsidized families or the rate established by the provider for prospective nonsubsidized families, as specified. The act requires a licensed child care provider to submit to the alternative payment program and the local resource and referral agency a copy of the providers rate sheet listing the rates charged and other specified policies and statements. The act authorizes a licensed child care provider to alter rate levels for subsidized children once per year and requires a licensed child care provider to provide the alternative payment program and local resource and referral agency with an updated rate sheet, and other specified policies and statements, to reflect the altered rate levels.

This bill would delete the provision authorizing a licensed child care provider to alter rate levels for subsidized children once per year and the related requirement to provide an updated rate sheet, and other specified policies and statements, to the alternative payment program and local resource and referral agency.

The act requires an alternative payment program to verify provider rates no less frequently than once a year, as provided, and requires the department to develop regulations for addressing discrepancies in provider rate levels identified through this verification process.

This bill would delete those requirements.

SENATE COMMITTEE ON

Senator Anthony Portantino, Chair

2017 - 2018 Regular Session

AB 1883 (Weber) - Child care and development services

This bill meets the criteria for referral to the Suspense File.

Bill Summary:

AB 1883 would exclude the basic allowance for housing (BAH) for certain military households from being counted as income for the purposes of determining eligibility for subsidized child care and change certain requirements related to the administration of alternative payment programs (APPs).

Fiscal Impact:

• Unknown, but potentially significant costs and/or cost pressures to the state to provide additional funding for services, to the extent that additional families become eligible by meeting the income eligibility requirement from excluding the military housing allowance. Increased eligibility would result in General Fund cost increases in the CalWORKs child care program, as it is an entitlement program, and increased cost pressures would result from longer waitlists in the capped programs.
• By repealing the provision that providers may alter rate levels for subsidized children once per year this bill would be expanding the number of times that APPs are able to augment their provider reimbursement rates and may increase costs. Allowing a provider who is below the specified ceiling to alter rates multiple times a year would have a fiscal impact to the State, as reimbursement for a given child would increase as the rate increased, up to the ceiling.
• By allowing APPs to have at least 36 months to expend their funding, this bill could reduce the amount of unspent funds that would otherwise revert to the General Fund and become available for other legislative priorities.
• Approximately $16,000 for the California Department of Education (CDE) to implement the military housing exclusion, to amend regulations, and train staff on new requirements. (GF)

Background:

The Child Care and Development Services Act provides a comprehensive, coordinated, and cost-effective system of child care and development services for children from infancy to 13 years of age and their parents. Families may be eligible for state and federally subsidized child care through participating in CalWORKs or based on income and need. Parents participating in CalWORKs as well as families transitioning off and no longer receiving CalWORKs aid can be eligible for subsidized child care. Income eligibility for families that are not on CalWORKs require that a family cannot earn more than 70% of the state median income when they are initially being certified as eligible for subsidized child care. As of July 2017, this amount was $4,340 per month for a family of three.

The average monthly cost to put an infant in a California day care center full time in 2014 was $1,110 per month, according to the California Child Care Resource and Referral Network. At a median income of $64,000, infant child care would comprise more than 20% of a family’s income. There are currently approximately 189,000 subsidized child care slots offered across various programs.

Uniformed service members are provided a number of allowances including BAH, which is provided to service members that do not live in government-provided housing. In 2018, the BAH across the state for service members with dependents ranged from $849 to over $5,000. Under current law, the basic housing allowances provided to military personnel that live off base must be counted as income for purposes of income eligibility for subsidized child care; however, the state preschool programs disregard this housing allowance. There were more than 180,000 active duty military personnel in California as of September 2017.

Proposed Law:

This bill would:

• Make codified findings and declarations related to the BAH for active military families and its conflicting interaction with income eligibility requirements for low-income subsidy supports;
• Exclude, for purposes of determining eligibility for subsidized child development services, the amount of the BAH from being counted as income for a person on state or federal active duty, active duty for special work, or Active Guard and Reserve duty in the military if the allowance is equal to the lower rate of the allowance for the military housing area where the person resides;
• Specify that the provisions of this bill related to exclusion of the BAH from income for purposes of determining subsidized child care eligibility do not affect priority for federal and state subsidized child development services;
• Update and recast Legislative intent regarding the need for affordable child care slots and recast as the intent that working families and active military families achieve and maintain their personal, social, economic, and emotional stability through an opportunity to attain financial stability through employment and parental development;
• Delete the requirement that the CDE contract with local contracting agencies for APPs and instead require the CDE to contract with APPs for the provision of services;
• Delete the ability for each licensed child care provider to alter rate levels for subsidized children once per year and the requirement that each licensed child care provider give APPs and resource referral agencies updated information to reflect changes in rates;
• Delete the requirement that an APP verify provider rates at least once per year by randomly selecting 10% of licensed child care providers serving subsidized families in order to confirm that rates reported to APPs reasonably correspond to rates reported to resource and referral agencies and the rates actually charged to nonsubsidized families for the same level of service;
• Delete the requirement that CDE develop regulations for addressing discrepancies in the provider rate levels identified through the rate verification process, which would also be deleted by this bill.

Related Legislation:

AB 1106 (Weber, Chapter 1106, Statutes of 2017) was substantially similar to this bill upon introduction, but was later amended such that the provisions of the bill related to the BAH were deleted, and instead required an APP to have no less than 36 months to expend allocated funds.

AB 1679 (Weber, 2016) would have excluded the BAH received by active military personnel from being counted as income for purposes of determining eligibility for state preschool services. It was held in the Assembly Appropriations Committee.

AB 427 (Weber, 2015) would have excluded the BAH from being calculated as income when determining eligibility for child care and development services under the Child Care and Development Services Act. It was held in the Senate Appropriations Committee.

AB 170 (Saldana, 2007) similar to this bill, would have excluded the BAH received by active military personnel from being counted as income for purposes of determining eligibility for state preschool. It was held in the Assembly Appropriations Committee.

Staff Comments:

Though this bill specifies that the provisions do not affect priority for federal and state subsidized child care, this bill will likely have the effect of prioritizing military families for slots in child care programs as they become available. Since their income will be lower without the inclusion of the basic housing allowance, they will move higher on the waitlist for services, while other families will move down. To the extent this bill results in increased eligibility for services for those families that are marginally above the income eligibility requirement, waitlists for services may grow for the capped programs and General Fund costs could be triggered for the CalWORKs program.

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SENATE COMMITTEE ON

Senator Richard Roth, Chair

2017 - 2018 Regular

Bill No: Hearing Date: 6/26/18

Subject:

DESCRIPTION

Summary:

This bill excludes the basic allowance for housing (BAH) for certain military households from being counted as income for the purposes of determining eligibility for subsidized child care and changes certain requirements related to the administration of alternative payment programs (APPs).

Existing law:

Child Care – General:

1. Establishes the California Child Care and Developmental Services Act (CCDSA) for the purpose of providing a comprehensive and coordinated system of child care and development services, as specified, for children from infancy to 13 years of age, and their parents, through full- and part-time programs.
2. States the Legislature’s intent that all families have access to child care and development services, as specified, regardless of ethnic status, cultural background, or special needs, and the intent that subsidized child care and development services be provided to eligible families, to the extent funding is available.
3. Requires families to meet certain criteria in order to be eligible for federal and state subsidized child development services, including that a family must be either a current aid recipient, income eligible, homeless, or one whose children are recipients of protective services or have been identified as being abused, or neglected, as specified. Further requires that families establish need for subsidized child care services which can include that a child has been identified by specified entities as homeless or being, or at risk of being, abused, neglected or exploited, or that the parents are engaged in specified training or employment, seeking employment, seeking permanent housing, or incapacitated.
4. Establishes the income eligibility limit for child development services at 70% of the State median income that was in use for the 2007-08 fiscal year, adjusted for family size, as specified.

Military BAH:

1. Provides, pursuant to federal law, a BAH to which a uniformed service member, including a member with dependents, as specified, is entitled if he or she is also entitled to basic pay and authorized to live outside of military-provided housing.

Alternative Payment Programs:

1. Defines “alternative payments” to include payments made by one child care agency to another agency or provider for the provision of child care and development services, and payments that are made by an agency to a parent for the parent's purchase of child care and development services.
2. Defines “alternative payment program” (APP) as a local government agency or nonprofit organization that has contracted with the California Department of Education (CDE), as specified, to provide alternative payments and to provide support services to parents and providers.
3. Authorizes the use of child care and development funds for APPs in order to maximize parental choice in selecting an appropriate child care setting, and established requirements regarding APPs, as specified.
4. Requires CDE to contract with local contracting agencies for APPs in order that services can be provided throughout the state, as specified.
5. Provides APPs no less than 36 months to expend funds allocated to the program in any fiscal year, and further requires the Superintendent to develop a process regarding this.
6. Allows each licensed child care provider to alter rate levels for subsidized children once a year, and requires the provider to give the updated information to the APP and resource and referral agency in accordance with current law, as specified.
7. Requires an APP to verify provider rates at least once a year by randomly selecting 10% of licensed child care providers serving subsidized families in order to confirm that rates reported to APPs correspond to rates reported to resource and referral agencies, and the rates charged to nonsubsidized families for equal levels of service. Further states the intent of the Legislature that the privacy of nonsubsidized families be protected.
8. Requires CDE to develop regulations to address discrepancies in the provider rate levels identified through the rate verification process described in current law.
9. Establishes under federal law the Supplemental Nutrition Assistance Program (SNAP) pursuant to the Food Stamp Act of 1964 and establishes, in California statute, the CalFresh program to administer the provision of federal SNAP benefits to families and individuals meeting certain criteria, as specified.

This bill:

Child Care – General:

1. Updates and recasts Legislative intent regarding the need for affordable child care slots, and recasts as the intent of the Legislature that working families and active military families achieve and maintain their personal, social, economic, and emotional stability through an opportunity to attain financial stability through employment and parental development, as specified.

Military BAH:

1. Makes Legislative findings related to the BAH for active military families and its conflicting interaction with income eligibility requirements for low-income subsidy supports.
2. Excludes, for purposes of determining eligibility for subsidized child development services, the amount of the BAH from being counted as income for a person on state or federal active duty, active duty for special work, or Active Guard and Reserve duty in the military if the allowance is equal to the lowest rate of the allowance for the military housing area where the person resides, as specified.
3. Specifies that provisions of this bill related to exclusion of the BAH from income for purposes of determining subsidized child care eligibility do not affect priority for federal and state subsidized child development services, as specified.

Alternative Payment Programs:

1. Deletes the following provisions from existing law:
   1. The requirement that the CDE contract with local contracting agencies for APPS, and instead requires CDE to contract with APPs, for the provision of services, as specified.
   2. The ability for each licensed child care provider to alter rate levels for subsidized children once per year, and deletes the requirement that each licensed child care provider give APPs and resource and referral agencies updated information to reflect changes in rates, as specified.
   3. The requirement that an APP verify provider rates at least once a year by randomly selecting 10 percent of licensed child care providers serving subsidized families in order to confirm that rates reported to APPs reasonably correspond to rates reported to resource and referral agencies and the rates actually charged to nonsubsidized families for the same level of service, as specified.
   4. The requirement that CDE develop regulations for addressing discrepancies in the provider rate levels identified through the rate verification process, as specified, which is deleted by the provisions of this bill.

BACKGROUND

That members of the active duty military are having trouble feeding their families on wages alone is well-established, but difficult to quantify precisely. The Defense Commissary Agency found that, during a recent one-year period (Sept. 2014 - Aug. 2015), active duty military members spent more than $21 million in SNAP benefits at military commissaries,

The Department of Agriculture, which manages the SNAP program, and the Department of Defense have not in the past shared data on program utilization by military members, according to a 2016 report from the Government Accountability Office (GAO). The GAO report determined that about 23,000 active-duty troops used food stamps in 2013, the most recent year for which such data were available. In addition, the GAO report found that members often had difficulty qualifying for SNAP over WIC (The Special Supplemental Nutrition Program for Women, Infants, and Children) because of the former’s inclusion of BAH as income in the program’s assessment of need.

Basic Allowance for Housing (BAH). “Basic pay,” which is based on pay grade (rank) and years of total service, is the fundamental and largest component of a military member’s pay. Basic pay can be augmented by certain allowances, which are moneys provided for specific needs, such as food or housing.

The BAH program is an allowance set by formula and paid to active duty members of the military, who are not living in military housing. BAH is designed to meet the cost of obtaining private, market-rate rental housing in the service member’s locality. The amount of the allowance is based on geographic location, pay grade, and whether a service member has dependents.

COMMENT

Author Comment:

“In regards to our military families, the basic housing allowance provided to those active military personnel that live off base must be counted as income for purposes of income eligibility for subsidized child care. For our state preschool programs, we have a law that disregards this allowance, but for our voucher child care, we do not. This bill creates parity.”

Committee Analytical Comments:

1. Under current law, the BAH provided to active military personnel, who live off base, must be counted as income for purposes of income eligibility for subsidized child care. When BAH is counted as income when determining eligibility for child care programs, service members living in higher-cost areas are disadvantaged relatively more than members residing in lower-cost areas. Below is a comparative table indicating, for a lower enlisted member in the pay grade of E-3, the difference between the BAH allowed for a specific high-cost-of-living area (north San Diego County) and a specific low-cost-of-living area (central Utah).

1. H.R. 1078, the Military Hunger Prevention Act, was introduced into the 115^th United States Congress by Representative Susan Davis (D-CA-53). This federal measure is pending consideration in the House Armed Services Committee and House Agriculture Committee. H.R. 1078 would exclude the BAH for a member of a uniformed service from any income, assets, or resources calculations for purposes of determining eligibility for federal supplemental nutrition programs.

Prior/Related Legislation:

AB 1106 (Weber, Chapter 1106, Statutes of 2017) was substantially similar to this bill upon introduction, but was later amended such that the provisions of the bill related to the BAH were deleted, and instead required an APP to have no less than 36 months to expend allocated funds.

AB 1679 (Weber, 2016) excluded the BAH received by active military personnel from being counted as income for purposes of determining eligibility for state preschool services. (Held, Assembly Appropriations Committee.)

AB 427 (Weber, 2015) excluded the BAH from being calculated as income when determining eligibility for child care and development services under the Child Care and Development Services Act. (Held, Senate Appropriations Committee.)

AB 170 (Saldana, 2007) was similar to this bill and excluded the BAH received by active military personnel from being counted as income for purposes of determining eligibility for state preschool. (Held, Assembly Appropriations Committee.)

POSITIONS

Sponsor: Western Center on Law and Poverty (Co-sponsor)

California Alternative Payment Program Association (Co-sponsor)

Support:

First 5 California

San Bernardino County District Advocates for Better Schools (SANDABS)

Oppose: None received.

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SENATE COMMITTEE ON HUMAN SERVICES

Senator Wiener, Chair

2017 - 2018 Regular

Bill No: AB 1883

Subject: Child care and development services.

SUMMARY

This bill excludes the basic allowance for housing (BAH) for certain military households from being counted as income for the purposes of determining eligibility for subsidized child care and changes certain requirements related to the administration of alternative payment programs (APPs).

ABSTRACT

Existing law:

1. Provides, a basic allowance for housing to which a uniformed service member, including a member with dependents, as specified, is entitled if he or she is also entitled to basic pay. (37 U.S.C. 403)
2. Existing law establishes the Child Care and Development Services Act to provide child care and development services as part of a coordinated, comprehensive, and cost-effective system serving children from birth to 13 years of age and their parents including a full range of supervision, health, and support services through full- and part-time programs. (EDC 8200 et seq.)
3. States the intent of the Legislature that all families have access to child care and development services, as specified, regardless of ethnic status, cultural background, or special needs, and the intent that subsidized child care and development services be provided to eligible families, to the extent funding is available. (EDC 8202)
4. Defines “child care and development services” to mean services designed to meet a wide variety of children’s and families’ needs while parents and guardians are working, in training, seeking employment, incapacitated, or in need of respite. (EDC 8208)
5. Requires the Superintendent of Public Instruction to administer general child care and development programs to include, among other things as specified, age- and developmentally-appropriate activities, supervision, parenting education and involvement, and nutrition. Further allows such programs to be designed to meet child-related needs identified by parents or guardians, as specified. (EDC 8240 and 8241)
6. Establishes several programs providing subsidized child care and development services that serve low-income families who are working, seeking work, in training, or providing community service. These programs are administered by the California Department of Education (CDE) and require the Superintendent of Public Instruction (SPI) to adopt rules and regulations on eligibility, enrollment, family fees, provider rates, and priority services. (EDC 8235 and 8263)
7. Defines "alternative payments" to include payments made by one child care agency to another agency or provider for the provision of child care and development services, and payments that are made by an agency to a parent for the parent's purchase of child care and development services. (EDC 8208(a))
8. Defines "alternative payment program" (APP) as a local government agency or nonprofit organization that has contracted with the California Department of Education (CDE), as specified, to provide alternative payments and to provide support services to parents and providers. (EDC 8208(b))
9. Authorizes the use of child care and development funds for APPs in order to maximize parental choice in selecting an appropriate child care setting, and established requirements regarding APPs, as specified. (EDC 8220 et seq.)
10. States legislative intent that working families’ have access to child care and development programs that focus on stabilizing families and helping children realize greater educational outcomes, as specified. (EDC 8220.1 (a))
11. Requires CDE to contract with local contracting agencies for APPs so that services will be provided throughout the state. Further requires CDE to expand existing APPs and fund new APPs to the extent that funds are provided by the Legislature. (EDC 8220.1 (b))
12. Allows each licensed child care provider to alter rate levels for subsidized children once a year, and requires the provider to give the updated information to the APP and resource and referral agency in accordance with current law, as specified. (EDC 8222(f))
13. Requires an APP to verify provider rates at least once a year by randomly selecting 10 percent of licensed child care providers serving subsidized families in order to confirm that rates reported to APPs correspond to rates reported to resource and referral agencies, and the rates charged to nonsubsidized families for equal levels of service. Further states the intent of the Legislature that the privacy of nonsubsidized families be protected. (EDC 8222(h))
14. Requires CDE to develop regulations to address discrepancies in the provider rate levels identified through the rate verification process described in current law. (EDC 8222(i))

This bill:

1. Makes Legislative findings related to the BAH for active military families and its conflicting interaction with income eligibility requirements for low-income subsidy supports.
2. Excludes, for purposes of determining eligibility for subsidized child development services, the amount of the BAH from being counted as income for a person on state or federal active duty, active duty for special work, or Active Guard and Reserve duty in the military if the allowance is equal to the lowest rate of the allowance for the military housing area where the person resides, as specified.
3. Specifies that provisions of this bill related to exclusion of the BAH from income for purposes of determining subsidized child care eligibility do not affect priority for federal and state subsidized child development services, as specified.
4. Updates and recasts Legislative intent regarding the need for affordable child care slots, and recasts as the intent of the Legislature that working families and active military families achieve and maintain their personal, social, economic, and emotional stability through an opportunity to attain financial stability through employment and parental development, as specified.
5. Deletes the requirement that the CDE contract with local contracting agencies for APPS, and instead requires CDE to contract with APPs, for the provision of services, as specified.
6. Deletes the ability for each licensed child care provider to alter rate levels for subsidized children once per year, and deletes the requirement that each licensed child care provider give APPs and resource and referral agencies updated information to reflect changes in rates, as specified.
7. Deletes the requirement that an APP verify provider rates at least once a year by randomly selecting 10 percent of licensed child care providers serving subsidized families in order to confirm that rates reported to APPs reasonably correspond to rates reported to resource and referral agencies and the rates actually charged to nonsubsidized families for the same level of service, as specified.
8. Deletes the requirement that CDE develop regulations for addressing discrepancies in the provider rate levels identified through the rate verification process, as specified, which is deleted by the provisions of this bill.

FISCAL IMPACT

According to the Assembly Committee on Appropriations analysis dated May 25, 2018, this bill may result in the following costs:

1. Minor one-time costs of $60,000 to CDE to implement the BAH exclusion, amend regulations, and train staff on new requirements; and
2. Unknown, potentially significant costs and cost pressures to the state to fund additional child care services to the extent additional families become eligible for subsidized child care by meeting the income eligibility requirement from disregarding the BAH. Increased eligibility would result in ongoing General Fund cost increases in the California Work Opportunity and Responsibility to Kids (CalWORKs) child care program and increased cost pressures from longer wait lists in the appropriation-capped programs.

BACKGROUND AND DISCUSSION

Purpose of the bill:

Under current law, the basic housing allowance provided to active military personnel that live off base must be counted as income for purposes of income eligibility for subsidized child care. However, the state preschool programs disregard this housing allowance. This bill creates parity between the two child care programs. According to the author, “These are our true working poor families and they have more than earned our support."

Subsidized Child Care

The Child Care and Development Services Act provides a comprehensive, coordinated, and cost-effective system of child care and development services for children from infancy to 13 years of age and their parents, including a full range of supervision, health, and support services through full- and part-time programs.

Families may be eligible for state and federally subsidized child care through participation in CalWORKs or based on income and need. Parents participating in CalWORKs, as well as families transitioning off of and no longer receiving CalWORKs aid, can be eligible for subsidized child care. Income eligibility for families who are not on CalWORKs require that a family cannot earn more than 70 percent of the state median income, as calculated by the Department of Finance, when they are initially being certified as eligible for subsidized child care. As of July 1, 2017 this amount was $4,340 per month for a family of three.

California's subsidized child care system is designed to assist families with parents or guardians who are working, in training, seeking employment, incapacitated, or in need of respite. Depending on the program, subsidized child care can be obtained through three main types of providers: licensed child care centers, licensed family child care homes, and license-exempt providers (for example, family members, neighbors, or friends). The main subsidized child care programs are described below.

The average monthly cost to put an infant in a California day care center full time in 2014 was about $1,110 a month, according to the California Child Care Resource and Referral Network. With the median income of California families with children at about $64,000, more than 20 percent of a typical family’s income would be spent on child care if the family put a newborn in a day care center. According to the California Budget and Policy Center, child care subsidies provide job stability and have been shown to increase parents’ earnings. Subsidies also allow families to afford higher-quality child care.

There are currently approximately 189,000 subsidized child care slots offered across the various programs. Waiting lists are common.

Basic Allowance for Housing

The basic pay of uniformed service members is determined by their grade (or rank), years of service and number of dependents. Uniformed service members are also provided a number of allowances, including BAH, which is provided to service members that do not live in government-provided housing. This allowance is based on rank, whether the member has dependents, and is adjusted for the local median rental rates across different geographic locations. In 2018, the BAH for service members with dependents ranges from $849 per month in Twentynine Palms to over $5,000 in San Francisco. While the BAH is nontaxable, it is considered income for purposes of determining eligibility for certain assistance programs, including subsidized child care. There were more than 180,000 active duty military personnel in California as of September 2017.

Related legislation:

AB 1106 (Weber, Chapter 1106, Statutes of 2017) was substantially similar to this bill upon introduction, but was later amended such that the provisions of the bill related to the BAH were deleted, and instead required an APP to have no less than 36 months to expend allocated funds.

AB 1679 (Weber, 2016) excluded the BAH received by active military personnel from being counted as income for purposes of determining eligibility for state preschool services. It was held in the Assembly Appropriations Committee.

AB 427 (Weber, 2015) excluded the BAH from being calculated as income when determining eligibility for child care and development services under the Child Care and Development Services Act. It was held in the Senate Appropriations Committee.

AB 170 (Saldana, 2007) was similar to this bill and excluded the BAH received by active military personnel from being counted as income for purposes of determining eligibility for state preschool. It was held in the Assembly Appropriations Committee.

COMMENTS

Double Referral: This bill has been double-referred. Should this bill pass out of this Committee, it will be referred to the Senate Committee on Veterans Affairs.

PRIOR VOTES

POSITIONS

Support:

Western Center on Law and Poverty (Sponsor)

California Alternative Payment Program Association

Oppose:

None received

-- END --

ASSEMBLY THIRD READING

ATR Bill Id:AB 1883

Author:(Weber)

As Amended Ver:May 25, 2018

Majority vote

SUMMARY: Excludes the basic allowance for housing (BAH) for certain military households from being counted as income for the purposes of determining eligibility for subsidized child care and changes certain requirements related to the administration of alternative payment programs (APPs).

Specifically, this bill:

1. Makes Legislative findings related to the BAH for active military families and its conflicting interaction with income eligibility requirements for low-income subsidy supports.
2. Excludes, for purposes of determining eligibility for subsidized child development services, the amount of the BAH from being counted as income for a person on state or federal active duty, active duty for special work, or Active Guard and Reserve duty in the military if the allowance is equal to the lowest rate of the allowance for the military housing area where the person lives, as specified.
3. Specifies that provisions of this bill related to exclusion of the BAH from income for purposes of determining subsidized child care eligibility do not affect priority for federal and state subsidized child development, as specified.
4. Updates and recasts Legislative intent regarding the need for affordable child care slots, and recasts as the intent of the Legislature that working families and active military families achieve and maintain their personal, social, economic, and emotional stability through an opportunity to attain financial stability through employment and parental development, as specified.
5. Deletes the requirement that the Department of Social Services (DSS) contract with local contracting agencies for APPS, and instead requires DSS to contract with APPs, for the provision of services, as specified.
6. Deletes the ability for each licensed child care provider to alter rate levels for subsidized children once per year, and deletes the requirement that each licensed child care provider give APPs and resource and referral agencies updated information to reflect changes in rates, as specified.
7. Deletes the requirement that an APP verify provider rates at least once a year by randomly selecting 10% of licensed child care providers serving subsidized families in order to confirm that rates reported to APPs reasonably correspond to rates reported to resource and referral agencies and the rates actually charged to nonsubsidized families for the same level of service, as specified.
8. Deletes the requirement that DSS develop regulations for addressing discrepancies in the provider rate levels identified through the rate verification process, as specified, which is deleted by the provisions of this bill.

EXISTING LAW:

1. Establishes the California Child Care and Developmental Services Act (CCDSA) for the purpose of providing a comprehensive, coordinated, and cost-effective system of child care and development services, as specified, for children from infancy to 13 years of age, and their parents, through full- and part-time programs. (Education Code Section (EDC) 8200 et seq.)
2. States the intent of the Legislature that all families have access to child care and development services, as specified, regardless of ethnic status, cultural background, or special needs, and the intent that subsidized child care and development services be provided to eligible families, to the extent funding is available. (EDC 8202)
3. Requires families to meet certain criteria in order to be eligible for federal and state subsidized child development services, including that a family must be either a current aid recipient, income eligible, homeless, or one whose children are recipients of protective services or have been identified as being abused, or neglected, as specified. Further requires that families establish need for subsidized child care services which can include that a child has been identified by specified entities as homeless or being, or at risk of being, abused, neglected or exploited, or that the parents are engaged in specified training or employment, seeking employment, seeking permanent housing, or incapacitated. (EDC 8263(a))
4. Establishes the income eligibility limit for child development services at 70% of the State median income that was in use for the 2007-08 fiscal year, adjusted for family size, as specified. (EDC 8263.1)
5. Provides, pursuant to federal law, a basic allowance for housing to which a uniformed service member, including a member with dependents, as specified, is entitled if he or she is also entitled to basic pay. (37 United States Code (U.S.C.) 403)
6. Defines "alternative payments" to include payments made by one child care agency to another agency or provider for the provision of child care and development services, and payments that are made by an agency to a parent for the parent's purchase of child care and development services. (EDC 8208(a))
7. Defines "alternative payment program" (APP) as a local government agency or nonprofit organization that has contracted with the California Department of Education (CDE), as specified, to provide alternative payments and to provide support services to parents and providers. (EDC 8208(b))
8. Authorizes the use of child care and development funds for APPs in order to maximize parental choice in selecting an appropriate child care setting, and established requirements regarding APPs, as specified. (EDC 8220 et seq.)
9. Requires CDE to contract with local contracting agencies for APPs in order that services can be provided throughout the state, as specified. (EDC 8220.1(a))
10. Provides APPs no less than 36 months to expend funds allocated to the program in any fiscal year, and further requires the Superintendent to develop a process regarding this. (EDC 8220.1(d)(1) and (2))
11. Allows each licensed child care provider to alter rate levels for subsidized children once a year, and requires the provider to give the updated information to the APP and resource and referral agency in accordance with current law, as specified. (EDC 8222(f))
12. Requires an APP to verify provider rates at least once a year by randomly selecting 10% of licensed child care providers serving subsidized families in order to confirm that rates reported to APPs correspond to rates reported to resource and referral agencies, and the rates charged to nonsubsidized families for equal levels of service. Further states the intent of the Legislature that the privacy of nonsubsidized families be protected. (EDC 8222(h))
13. Requires CDE to develop regulations to address discrepancies in the provider rate levels identified through the rate verification process described in current law. (EDC 8222(i))
14. Establishes under federal law the Supplemental Nutrition Assistance Program (SNAP) pursuant to the Food Stamp Act of 1964 and establishes, in California statute, the CalFresh program to administer the provision of federal SNAP benefits to families and individuals meeting certain criteria, as specified. (7 U.S.C. 2011 et seq., WIC 18900 et seq.)

FISCAL EFFECT: According to the Assembly Appropriations Committee on May 25, 2018, this bill may result in the following costs:

1. Minor one-time costs of $60,000 to CDE to implement the BAH exclusion, amend regulations, and train staff on new requirements; and
2. Unknown, potentially significant costs and cost pressures to the state to fund additional child care services to the extent additional families become eligible for subsidized child care by meeting the income eligibility requirement from disregarding the BAH. Increased eligibility would result in ongoing General Fund cost increases in the California Work Opportunity and Responsibility to Kids (CalWORKs) child care program and increased cost pressures from longer wait lists in the appropriation-capped programs.

COMMENTS:

Subsidized child care: Many low- to middle-income working families spend a significant portion of their income on child care. The statewide average cost of child care in a family child care home for a preschooler in 2014 was $7,850 ($654 per month); for child care centers, this annual cost was even higher at $9,106 ($759 per month). And, it would follow, the amount paid for child care is even more in higher-cost areas of the state: in San Francisco, the 2014 cost of family child care was $11,503 ($959 per month) and for center care, it was $12,893 ($1,074 per month).

California's subsidized child care system is designed to assist families with parents or guardians who are working, in training, seeking employment, incapacitated, or in need of respite. Depending on the program, subsidized child care can be obtained through three main types of providers: licensed child care centers, licensed family child care homes, and license-exempt providers (for example, family members, neighbors, or friends). This child care is available through a number of programs; additionally, California offers State Preschool Programs to eligible three-and four-year-olds. The three main subsidized child care programs are:

1. California Work Opportunity and Responsibility to Kids (CalWORKs), for parents who receive or have received CalWORKs. CalWORKs child care is paid for using vouchers and can be provided in either centers, family child care homes, or license-exempt settings;
2. Alternative Payment Programs (APPs), a voucher-based system of care, which allows families to choose their own child care in either centers, family child care homes, or license-exempt settings; and
3. General Child Care, which is provided through contracted centers and family child care home networks that are administered through private or public agencies and offer child care and education/development services.

In Fiscal Year 2017-18, there are approximately 189,000 subsidized child care slots offered across the various programs, as well as over 163,000 State Preschool and 82,000 Transitional Kindergarten slots.

Families are typically eligible for subsidized child care if they meet specified requirements and income qualifications, including: parents have a need related to work, training, or education; children are under 13 years old (or under 22 years old if they have exceptional needs), and parents earn incomes less than 70% of the most recent state median income (SMI) when first applying and less than 85% of the most recent SMI when renewing eligibility. The following two tables show current Fiscal Year (FY) 2017-18 income ceilings by family size (for purposes of demonstration, family size is limited to 8, but CDE schedules go up to 12) for initial certification and recertification, respectively:

Initial Certification Income Ceilings (70% of the SMI)

Recertification Income Ceilings (85% of the SMI)

Additionally, families may be charged a "family fee" depending on their income. For FY 2017-18, for example, subsidized child care can be obtained at no cost for families of three earning less than $2,418 per month. However, with incomes between $2,418 a month and the monthly income ceiling ($4,340 for initial certification and $5,270 for recertification), a family fee is charged, the amount of which increases with income, but never to surpass 10% of a family's income. For a family of three with a monthly income of $2,418, the family fee per month for full-time care is $52; for an initially-certified family of three earning $4,340 per month, this fee is $424; and for a recertified family of three earning $5,270, the fee is $527.

Basic Allowance for Housing (BAH): The BAH is an allowance that aims to provide fair housing to service members by providing members of the military living off base with the necessary funds to cover the costs of housing. The BAH is based on housing market prices in the area where the individual lives, and is set based on where the service member is stationed, his or her pay grade, and his or her dependent status. The BAH does not take into account the number of dependents a service member has, the actual amount of money paid for rent, or the size of the rental unit. In California, the BAH ranges from the mid $800's for areas including China Lake to the mid $3,000's for the San Francisco area. While the BAH is nontaxable, it is considered income for purposes of determining eligibility for certain assistance programs, including the programs discussed in the provisions of this bill.

Need for this bill: According to the author, "In regards to our military families, the basic housing allowance provided to those active military personnel that live off base must be counted as income for purposes of income eligibility for subsidized child care. For our state preschool programs, we have a law that disregards this allowance, but for our voucher child care, we do not. This bill creates parity.

According to the most recent data from the California Budget and Policy Center, there are approximately 1.5 million income eligible families needing child care in California. When we include the number of potential income eligible military families that adds another 184,000 plus to the list.

In California, we provide fewer than 33,000 total child care slots for income eligible families needing childcare. These are our true working poor families and they have more than earned our support."

Analysis Prepared by: Kelsy Castillo / HUM. S. / (916) 319-2089 FN: 0003358

Date of Hearing: April 25, 2018

ASSEMBLY COMMITTEE ON APPROPRIATIONS

Lorena Gonzalez Fletcher, Chair

ABPCA Bill Id:AB 1883

Author:(Weber) – As Amended Ver:April 2, 2018

Urgency: No State Mandated Local Program: Yes Reimbursable: Yes

SUMMARY:

This bill excludes the basic allowance for housing (BAH) for certain military households from being counted as income for purposes of determining eligibility for subsidized child care. The bill also requires the Department of Social Services (DSS), by September 1, 2019, to create the Military Families Food Assistance Program for military families who are ineligible for CalFresh benefits because of the inclusion of the BAH as income.

FISCAL EFFECT:

1. Unknown but substantial costs to DSS, estimated in the range of $40 million to $100 million (GF) ongoing to establish, administer and fund a new food assistance program that runs parallel to CalFresh. This cost estimate is based on CalFresh program criteria and benefits to be used in the new program and assumes 10% to 25% of California’s active military and reserve men and women and their families qualify for the new program for six months. Actual costs could vary substantially depending on program participation.
2. Minor one-time costs of $60,000 to CDE to implement the BAH exclusion, amend regulations, and train staff on new requirements.
3. Unknown, potentially significant, costs and cost pressures to the state to fund additional childcare services to the extent additional families become eligible for subsidized childcare by meeting the income eligibility requirement from disregarding the BAH. Increased eligibility would result in ongoing GF cost increases in the CalWORKs child care program and increased cost pressures from longer waitlists in the appropriation-capped programs.

COMMENTS:

1. Purpose. According to the author:

Unemployment of some military spouses reaches up to 30 percent according to the Institute for Veterans and Military Families. With reduced ability to have two breadwinners, the FINRA Investor Education Foundation found that more than 40 percent of military personnel had difficulty making ends meet, rising to 56 percent of entry-level personnel. Unfortunately, current state law does not allow many families who receive the Basic Allowance for Housing from receiving state childcare, early education programs or CalFresh Food Benefits. This puts military families at significant risk of food insecurity. It also puts quality childcare and early education programs beyond the reach of many of these families.

1. Background. California has 184,540 active military and reserve men and women. The BAH aims to provide members of the military living off base with the necessary funds to cover the costs of housing. The BAH is based on housing market prices in the area where an individual lives and is set based on where the service member is stationed, his or her pay grade, and his or her dependent status. In California, the BAH ranges from approximately $800 per month to $4,000 per month. While the BAH is nontaxable, it is considered income for purposes of determining eligibility for certain assistance programs, including some child care programs and CalFresh.

A Census Bureau in 2013 reported that approximately 23,000 active-duty service members relied on Supplemental Nutrition Assistance Program (SNAP) benefits (CalFresh in California).The USDA reports that, in 2016, military families spent $67 million in food stamps at commissaries. More was spent in California than any other single state. The maximum monthly CalFresh allotment for a three-person household in California, as of October 1, 2017, is $504.

In 2016, the Government Accountability Office (GAO) issued a report to Congress that found active-duty service members and their families have access to food assistance programs, but actual use of these programs varies due to ability to meet certain eligibility criteria. According to the report, “a service member at Naval Base San Diego, California, would need a minimum household size of three to qualify for WIC benefits, but would require a minimum household size of seven to qualify for SNAP benefits, and a minimum household size of nine to qualify for [federal] Family Subsistence Supplemental Allowance.” BAH is not considered income for WIC eligibility purposes.

In fiscal year 2017-18, there are approximately 189,000 subsidized child care slots offered in California across the various programs, as well as over 163,000 State Preschool and 82,000 Transitional Kindergarten slots. Families are typically eligible for subsidized child care if they meet specified requirements and income qualifications.

1. Prior Legislation:

AB 1106 (Weber), Chapter 1106, Statutes of 2017, was substantially similar to this bill upon introduction, but was later amended to delete provisions related to the BAH were deleted, and instead required an APP to have no less than 36 months to expend allocated funds.

AB 1679 (Weber), of the 2015-16 Legislative Session, excluded the BAH received by active military personnel from being counted as income for purposes of determining eligibility for state preschool services. It was held on this committee’s suspense file.

AB 427 (Weber), of the 2015-16 Legislative Session, excluded the BAH from being calculated as income when determining eligibility for child care and development services under the Child Care and Development Services Act. It was held on the Senate Appropriations Committee’s suspense file.

Analysis Prepared by: Jennifer Swenson / APPR. / (916) 319-2081

Date of Hearing: April 10, 2018

ASSEMBLY COMMITTEE ON VETERANS AFFAIRS

Jacqui Irwin, Chair

ABPCA Bill Id:AB 1883 (

Author:Weber) – As Amended Ver:March 8, 2018

SUBJECT: Human services: child care and development services: food assistance benefits

SUMMARY: Excludes the basic allowance for housing (BAH) for certain military households from being counted as income for the purposes of determining eligibility for subsidized child care, creates a food assistance program for certain military families that meet eligibility criteria, and changes certain requirements related to the administration of alternative payment programs (APPs).

Specifically, this bill:

1. Makes Legislative findings related to the BAH for active military families and its conflicting interaction with income eligibility requirements for low-income subsidy supports.
2. Excludes, for purposes of determining eligibility for subsidized child development services, the amount of the BAH from being counted as income for a person on state or federal active duty, active duty for special work, or Active Guard and Reserve duty in the military if the allowance is equal to the lowest rate of the allowance for the military housing area where the person lives, as specified.
3. Specifies that provisions of this bill related to exclusion of the BAH from income for purposes of determining subsidized child care eligibility do not affect priority for federal and state subsidized child development, as specified.
4. Updates and recasts Legislative intent regarding the need for affordable child care slots, and recasts as the intent of the Legislature that working families and active military families achieve and maintain their personal, social, economic, and emotional stability through an opportunity to attain financial stability through employment and parental development, as specified.
5. Deletes the requirement that the Department of Social Services (DSS) contract with local contracting agencies for APPS, and instead requires DSS to contract with APPs, for the provision of services, as specified.
6. Decreases from at least 36 months to no less than 12 months the time in which an APP must expend funds allocated to that program in any fiscal year, and deletes the requirement that the Superintendent develop a process that provides APPs no less than 36 months to expend funds, and instead requires the Superintendent to develop a process that allows APPs no less than 12 months to expend funds allocated to the program in any fiscal year.
7. Deletes the ability for each licensed child care provider to alter rate levels for subsidized children once per year, and deletes the requirement that each licensed child care provider give APPs and resource and referral agencies updated information to reflect changes in rates, as specified.
8. Deletes the requirement that an APP verify provider rates at least once a year by randomly selecting 10% of licensed child care providers serving subsidized families in order to confirm that rates reported to APPs reasonably correspond to rates reported to resource and referral agencies and the rates actually charged to nonsubsidized families for the same level of service, as specified.
9. Deletes the requirement that DSS develop regulations for addressing discrepancies in the provider rate levels identified through the rate verification process, as specified, which is deleted by the provisions of this bill.
10. Makes Legislative findings and declarations related to food insecurity among military families.
11. Requires DSS to establish the Military Families Food Assistance Program to provide assistance to certain military households who receive a BAH that, when counted as income, renders the household ineligible for CalFresh benefits and further deems those households as eligible for benefits under the Military Families Food Assistance Program established by this bill, as specified.
12. Stipulates that the benefits provided by the Military Families Food Assistance Program be equal to the benefits that the household would receive under the CalFresh program if the BAH was not counted as income under CalFresh program rules.
13. Requires that eligible households that apply for CalFresh benefits have their eligibility determined without the need for a new application.
14. Stipulates the laws, regulations, and guidance governing the federal Supplemental Nutrition Assistance Program (SNAP) and CalFresh program also govern the Military Families Food Assistance Program, as specified.
15. Restricts the implementation of the Military Families Food Assistance Program to a period in which federal law, regulation, or guidance requires a basic allowance for housing be counted as income for purposes of determining eligibility for the CalFresh program, as specified.

EXISTING LAW:

1. Establishes the California Child Care and Developmental Services Act (CCDSA) for the purpose of providing a comprehensive, coordinated, and cost-effective system of child care and development services, as specified, for children from infancy to 13 years of age, and their parents, through full- and part-time programs. (EDC 8200 et seq.)
2. States the intent of the Legislature that all families have access to child care and development services, as specified, regardless of ethnic status, cultural background, or special needs, and the intent that subsidized child care and development services be provided to eligible families, to the extent funding is available. (EDC 8202)
3. Requires families to meet certain criteria in order to be eligible for federal and state subsidized child development services, including that a family must be either a current aid recipient, income eligible, homeless, or one whose children are recipients of protective services or have been identified as being abused, or neglected, as specified. Further requires that families establish need for subsidized child care services which can include that a child has been identified by specified entities as homeless or being, or at risk of being, abused, neglected or exploited, or that the parents are engaged in specified training or employment, seeking employment, seeking permanent housing, or incapacitated. (EDC 8263 (a))
4. Establishes the income eligibility limit for child development services at 70% of the State median income that was in use for the 2007-08 fiscal year, adjusted for family size, as specified. (EDC 8263.1)
5. Provides, pursuant to federal law, a basic allowance for housing to which a uniformed service member, including a member with dependents, as specified, is entitled if he or she is also entitled to basic pay. (37 U.S.C. 403)
6. Defines “alternative payments” to include payments made by one child care agency to another agency or provider for the provision of child care and development services, and payments that are made by an agency to a parent for the parent's purchase of child care and development services. (EDC 8208 (a))
7. Defines “alternative payment program” (APP) as a local government agency or nonprofit organization that has contracted with the California Department of Education (CDE), as specified, to provide alternative payments and to provide support services to parents and providers. (EDC 8208 (b))
8. Authorizes the use of child care and development funds for APPs in order to maximize parental choice in selecting an appropriate child care setting, and established requirements regarding APPs, as specified. (EDC 8220 et seq.)
9. Requires CDE to contract with local contracting agencies for APPs in order that services can be provided throughout the state, as specified. (EDC 8220.1 (a))
10. Provides APPs no less than 36 months to expend funds allocated to the program in any fiscal year, and further requires the Superintendent to develop a process regarding this. (EDC 8220.1 (d)(1) and (2))
11. Allows each licensed child care provider to alter rate levels for subsidized children once a year, and requires the provider to give the updated information to the APP and resource and referral agency in accordance with current law, as specified. (EDC 8222 (f))
12. Requires an APP to verify provider rates at least once a year by randomly selecting 10% of licensed child care providers serving subsidized families in order to confirm that rates reported to APPs correspond to rates reported to resource and referral agencies, and the rates charged to nonsubsidized families for equal levels of service. Further states the intent of the Legislature that the privacy of nonsubsidized families be protected. (EDC 8222 (h))
13. Requires CDE to develop regulations to address discrepancies in the provider rate levels identified through the rate verification process described in current law. (EDC 8222 (i))
14. Establishes under federal law the Supplemental Nutrition Assistance Program (SNAP) pursuant to the Food Stamp Act of 1964 and establishes, in California statute, the CalFresh program to administer the provision of federal SNAP benefits to families and individuals meeting certain criteria, as specified. (7 U.S.C. 2011 et seq., WIC 18900 et seq.)

FISCAL EFFECT: Not known at this time.

COMMENTS: That members of the active duty military are having trouble feeding their families on wages alone is well-documented. Prompted by a Defense Commissary Agency finding that Sept. 2014 through Aug. 2015, active duty military members spent more than $21 million in SNAP benefits at military commissaries, the U.S. Government Accountability Office undertook in 2016 a report on use of food assistance by members of the active duty military. Among their findings was that military members often had difficulty qualifying for SNAP over WIC because of the former’s inclusion of BAH as income in the program’s assessment of need.

Additionally, child care costs are significant, and a disproportional burden on low and middle-income families.

Basic Allowance for Housing (BAH): The Basic Allowance for Housing (BAH) program is an allowance set by formula and paid to active duty members of the military who are not living in military housing. It is designed to meet the cost of obtaining private, market rate rental housing in the service member’s locality. The amount of the allowance is based on geographic location, pay grade, and whether a service member has dependents. For example, an E-1 (the lowest enlisted grade) with dependents living in the Sacramento area would receive a monthly BAH of $1974.00, according to a BAH calculator maintained online by the Department of Defense, compared to $1554 monthly for an E-1 without dependents. (An E-1 without dependents is extremely unlikely to be living outside of military housing and receiving BAH.)

The bill’s author has provided the following statement:

“California has 184,540 active military and reserve men and women. Service members and their families cope with significant stress and the instability of frequent moves and deployments as well as the safety and well-being of family members serving overseas.

They also sacrifice financially.

Unemployment of some military spouses reaches up to 30 percent according to the Institute for Veterans and Military Families. With reduced ability to have two breadwinners, the FINRA Investor Education Foundation found that more than 40 percent of military personnel had difficulty making ends meet, rising to 56 percent of entry-level personnel. Unfortunately, current state law does not allow many families who receive what is called the Basic Allowance for Housing from receiving state childcare, early education programs or CalFresh Food Benefits. This puts military families at significant risk of food insecurity. It also puts quality childcare and early education programs beyond the reach of many of these families.

AB 1883 would disregard the military Basic Allowance for Housing as part of calculated income for purposes of eligibility determination for child care, early education and CalFRESH.”

REGISTERED SUPPORT / OPPOSITION:

Support

California Alternative Payment Program Association (Sponsor)

AMVETs- Department of California

California Association of County Veterans Service Officers

California State Commanders Veterans Council

Child Care Planning Council of Yuba & Sutter counties

Children’s Defense Fund- California

Feeding San Diego

Military Officers Association of America, California Council of Chapters

National Guard Association of California

Orange County Food Access Coalition

UDW/AFSCME Local 3930

Western Center on Law and Poverty

Opposition

None on File

Analysis Prepared by: Christian Burkin / V.A. / (916) 319-3550

Date of Hearing: March 20, 2018

ASSEMBLY COMMITTEE ON HUMAN SERVICES

Blanca Rubio, Chair

ABPCA Bill Id:AB 1883 (

Author:Weber) – As Amended Ver:March 8, 2018

SUBJECT: Human services: child care and development services: food assistance benefits

SUMMARY: Excludes the basic allowance for housing (BAH) for certain military households from being counted as income for the purposes of determining eligibility for subsidized child care, creates a food assistance program for certain military families that meet eligibility criteria, and changes certain requirements related to the administration of alternative payment programs (APPs).

Specifically, this bill:

1. Makes Legislative findings related to the BAH for active military families and its conflicting interaction with income eligibility requirements for low-income subsidy supports.
2. Excludes, for purposes of determining eligibility for subsidized child development services, the amount of the BAH from being counted as income for a person on state or federal active duty, active duty for special work, or Active Guard and Reserve duty in the military if the allowance is equal to the lowest rate of the allowance for the military housing area where the person lives, as specified.
3. Specifies that provisions of this bill related to exclusion of the BAH from income for purposes of determining subsidized child care eligibility do not affect priority for federal and state subsidized child development, as specified.
4. Updates and recasts Legislative intent regarding the need for affordable child care slots, and recasts as the intent of the Legislature that working families and active military families achieve and maintain their personal, social, economic, and emotional stability through an opportunity to attain financial stability through employment and parental development, as specified.
5. Deletes the requirement that the Department of Social Services (DSS) contract with local contracting agencies for APPS, and instead requires DSS to contract with APPs, for the provision of services, as specified.
6. Decreases from at least 36 months to no less than 12 months the time in which an APP must expend funds allocated to that program in any fiscal year, and deletes the requirement that the Superintendent develop a process that provides APPs no less than 36 months to expend funds, and instead requires the Superintendent to develop a process that allows APPs no less than 12 months to expend funds allocated to the program in any fiscal year.
7. Deletes the ability for each licensed child care provider to alter rate levels for subsidized children once per year, and deletes the requirement that each licensed child care provider give APPs and resource and referral agencies updated information to reflect changes in rates, as specified.
8. Deletes the requirement that an APP verify provider rates at least once a year by randomly selecting 10% of licensed child care providers serving subsidized families in order to confirm that rates reported to APPs reasonably correspond to rates reported to resource and referral agencies and the rates actually charged to nonsubsidized families for the same level of service, as specified.
9. Deletes the requirement that DSS develop regulations for addressing discrepancies in the provider rate levels identified through the rate verification process, as specified, which is deleted by the provisions of this bill.
10. Makes Legislative findings and declarations related to food insecurity among military families.
11. Requires DSS to establish the Military Families Food Assistance Program to provide assistance to certain military households who receive a BAH that, when counted as income, renders the household ineligible for CalFresh benefits and further deems those households as eligible for benefits under the Military Families Food Assistance Program established by this bill, as specified.
12. Stipulates that the benefits provided by the Military Families Food Assistance Program be equal to the benefits that the household would receive under the CalFresh program if the Bah was not counted as income under CalFresh program rules.
13. Requires that eligible households that apply for CalFresh benefits have their eligibility determined without the need for a new application.
14. Stipulates the laws, regulations, and guidance governing the federal Supplemental Nutrition Assistance Program (SNAP) and CalFresh program also govern the Military Families Food Assistance Program, as specified.
15. Restricts the implementation of the Military Families Food Assistance Program to a period in which federal law, regulation, or guidance requires a basic allowance for housing be counted as income for purposes of determining eligibility for the CalFresh program, as specified.

EXISTING LAW:

1. Establishes the California Child Care and Developmental Services Act (CCDSA) for the purpose of providing a comprehensive, coordinated, and cost-effective system of child care and development services, as specified, for children from infancy to 13 years of age, and their parents, through full- and part-time programs. (EDC 8200 et seq.)
2. States the intent of the Legislature that all families have access to child care and development services, as specified, regardless of ethnic status, cultural background, or special needs, and the intent that subsidized child care and development services be provided to eligible families, to the extent funding is available. (EDC 8202)
3. Requires families to meet certain criteria in order to be eligible for federal and state subsidized child development services, including that a family must be either a current aid recipient, income eligible, homeless, or one whose children are recipients of protective services or have been identified as being abused, or neglected, as specified. Further requires that families establish need for subsidized child care services which can include that a child has been identified by specified entities as homeless or being, or at risk of being, abused, neglected or exploited, or that the parents are engaged in specified training or employment, seeking employment, seeking permanent housing, or incapacitated. (EDC 8263 (a))
4. Establishes the income eligibility limit for child development services at 70% of the State median income that was in use for the 2007-08 fiscal year, adjusted for family size, as specified. (EDC 8263.1)
5. Provides, pursuant to federal law, a basic allowance for housing to which a uniformed service member, including a member with dependents, as specified, is entitled if he or she is also entitled to basic pay. (37 U.S.C. 403)
6. Defines “alternative payments” to include payments made by one child care agency to another agency or provider for the provision of child care and development services, and payments that are made by an agency to a parent for the parent's purchase of child care and development services. (EDC 8208 (a))
7. Defines “alternative payment program” (APP) as a local government agency or nonprofit organization that has contracted with the California Department of Education (CDE), as specified, to provide alternative payments and to provide support services to parents and providers. (EDC 8208 (b))
8. Authorizes the use of child care and development funds for APPs in order to maximize parental choice in selecting an appropriate child care setting, and established requirements regarding APPs, as specified. (EDC 8220 et seq.)
9. Requires CDE to contract with local contracting agencies for APPs in order that services can be provided throughout the state, as specified. (EDC 8220.1 (a))
10. Provides APPs no less than 36 months to expend funds allocated to the program in any fiscal year, and further requires the Superintendent to develop a process regarding this. (EDC 8220.1 (d)(1) and (2))
11. Allows each licensed child care provider to alter rate levels for subsidized children once a year, and requires the provider to give the updated information to the APP and resource and referral agency in accordance with current law, as specified. (EDC 8222 (f))
12. Requires an APP to verify provider rates at least once a year by randomly selecting 10% of licensed child care providers serving subsidized families in order to confirm that rates reported to APPs correspond to rates reported to resource and referral agencies, and the rates charged to nonsubsidized families for equal levels of service. Further states the intent of the Legislature that the privacy of nonsubsidized families be protected. (EDC 8222 (h))
13. Requires CDE to develop regulations to address discrepancies in the provider rate levels identified through the rate verification process described in current law. (EDC 8222 (i))
14. Establishes under federal law the Supplemental Nutrition Assistance Program (SNAP) pursuant to the Food Stamp Act of 1964 and establishes, in California statute, the CalFresh program to administer the provision of federal SNAP benefits to families and individuals meeting certain criteria, as specified. (7 U.S.C. 2011 et seq., WIC 18900 et seq.)

FISCAL EFFECT: Unknown.

COMMENTS:

Subsidized child care: Many low- to middle-income working families spend a significant portion of their income on child care. The statewide average cost of child care in a family child care home for a preschooler in 2014 was $7,850 ($654 per month); for child care centers, this annual cost was even higher at $9,106 ($759 per month). And, it would follow, the amount paid for child care is even more in higher-cost areas of the state: in San Francisco, the 2014 cost of family child care was $11,503 ($959 per month) and for center care, it was $12,893 ($1,074 per month).

California’s subsidized child care system is designed to assist families with parents or guardians who are working, in training, seeking employment, incapacitated, or in need of respite. Depending on the program, subsidized child care can be obtained through three main types of providers: licensed child care centers, licensed family child care homes, and license-exempt providers (for example, family members, neighbors, or friends). This child care is available through a number of programs; additionally, California offers State Preschool Programs to eligible three-and four-year-olds. The three main subsidized child care programs are:

• California Work Opportunity and Responsibility to Kids (CalWORKs), for parents who receive or have received CalWORKs. CalWORKs child care is paid for using vouchers and can be provided in either centers, family child care homes, or license-exempt settings;
• Alternative Payment Programs (APPs), a voucher-based system of care, which allows families to choose their own child care in either centers, family child care homes, or license-exempt settings; and
• General Child Care, which is provided through contracted centers and family child care home networks that are administered through private or public agencies and offer child care and education/development services.

In Fiscal Year 2017-18, there are approximately 189,000 subsidized child care slots offered across the various programs, as well as over 163,000 State Preschool and 82,000 Transitional Kindergarten slots.

Families are typically eligible for subsidized child care if they meet specified requirements and income qualifications, including: parents have a need related to work, training, or education; children are under 13 years old (or under 22 years old if they have exceptional needs), and parents earn incomes less than 70% of the most recent state median income (SMI) when first applying and less than 85% of the most recent SMI when renewing eligibility. The following two tables show current Fiscal Year (FY) 2017-18 income ceilings by family size (for purposes of demonstration, family size is limited to 8, but CDE schedules go up to 12) for initial certification and recertification, respectively:

Initial Certification Income Ceilings (70% of the SMI)

Recertification Income Ceilings (85% of the SMI)

Additionally, families may be charged a “family fee” depending on their income. For FY 2017-18, for example, subsidized child care can be obtained at no cost for families of three earning less than $2,418 per month. However, with incomes between $2,418 a month and the monthly income ceiling ($4,340 for initial certification and $5,270 for recertification), a family fee is charged, the amount of which increases with income, but never to surpass 10% of a family’s income. For a family of three with a monthly income of $2,418, the family fee per month for full-time care is $52; for an initially-certified family of three earning $4,340 per month, this fee is $424; and for a recertified family of three earning $5,270, the fee is $527.

Basic Allowance for Housing (BAH): The BAH is an allowance that aims to provide fair housing to service members by providing members of the military living off base with the necessary funds to cover the costs of housing. The BAH is based on housing market prices in the area where the individual lives, and is set based on where the service member is stationed, his or her pay grade, and his or her dependent status. The BAH does not take into account the number of dependents a service member has, the actual amount of money paid for rent, or the size of the rental unit. In California, the BAH ranges from the mid $800’s for areas including China Lake to the mid $3,000’s for the San Francisco area. While the BAH is nontaxable, it is considered income for purposes of determining eligibility for certain assistance programs, including the programs discussed in the provisions of this bill.

CalFresh: CalFresh benefits are funded entirely by the federal government through the SNAP program, and CalFresh eligibility requirements are set by the United States Department of Agriculture for SNAP programs across the country. These requirements include gross and net income tests, work requirements, and documentation requirements. While the maximum allowable gross income is typically 200% of the Federal Poverty Level (FPL), certain households, including those with elderly or disabled members, are not subject to gross income criteria. Instead, these households must have a net monthly income at or below 100% of the FPL. While federal, state, and county governments share in the administrative costs of CalFresh, the program is administered locally by county human services agencies.

Food insecurity among military families: According to an NPR article from April 2017, the 2013 Census Bureau reported that approximately 23,000 active-duty service members relied on SNAP benefits, and in 2016 military families spent $67 million in food stamps at commissaries, according to the USDA. While the article states that the largest share was spent in California, the actual dollar amount is not detailed in the article. In 2016, the Government Accountability Office (GAO) issued a report to Congress which concluded that the Department of Defense was not fully collecting or analyzing data regarding how many service members were in need of food assistance or were enrolled in federal assistance programs like SNAP and Women, Infants, and Children (WIC). The GAO also found that while active-duty service members and their families have access to food assistance programs, actual use of these programs varies due to ability to meet certain eligibility criteria. According to the report, “For example, based on our analysis a service member at Naval Base San Diego, California, would need a minimum household size of 3 to qualify for WIC benefits, but would require a minimum household size of seven to qualify for SNAP benefits, and a minimum household size of nine to qualify for Family Subsistence Supplemental Allowance.” The report also details a recent survey of Blue Star Families run by military spouses which found that more than 80,000 families nationwide faced food insecurity in 2016.

To address this issue at the federal level, California Representative Susan A. Davis introduced H.R. 1078 on February 15, 2017, which would exclude the value of a housing allowance for a member of a uniformed service from any income, assets, or resources calculations for purposes of determining eligibility for any federal nutrition assistance program. The bill was referred to the House Armed Services Committee and the House Agriculture Committee upon introduction, and was subsequently referred to the Subcommittees on Military Personnel and Nutrition, respectively, where they are currently located.

Need for this bill: According to the author, “In regards to our military families, the basic housing allowance provided to those active military personnel that live off base must be counted as income for purposes of income eligibility for subsidized child care. For our state preschool programs, we have a law that disregards this allowance, but for our voucher child care, we do not. This bill creates parity.

According to the most recent data from the California Budget and Policy Center, there are approximately 1.5 million income eligible families needing child care in California. When we include the number of potential income eligible military families that adds another 184,000 plus to the list.

In California, we provide fewer than 33,000 total child care slots for income eligible families needing childcare. These are our true working poor families and they have more than earned our support.”

Recommended committee amendments: In order to allow adequate time for recently passed legislation regarding the length of time APPs have to expend funds to be implemented and evaluated, and in order to ensure that military households that already receive some CalFresh benefits are also able to benefit from the Military Families Food Assistance Program, committee staff recommends the following amendments:

1. Beginning on line 29 of page 5 of the bill, make the following amendments:

28

(d) (1) Except as provided in paragraph (3), an alternative

29

payment program shall have no less than 12 36 months to expend

30

funds allocated to that program in any fiscal year.

31

(2) The Superintendent shall develop a process that provides

32

alternative payment programs no less than 12 36 months to expend

33

funds allocated to that program in any fiscal year.

1. Beginning on line 37 on page 7 of the bill, make the following amendments:

30

(b) A household that includes a person who is on state or federal

31

active duty, active duty for special work, or Active Guard and

32

Reserve duty in the military and who receives a basic allowance

33

for housing pursuant to Section 403 of Title 37 of the United States

34

Code that, when counted as income pursuant to Section

35

273.9(c)(1)(vii) of Title 7 of the Code of Federal Regulations, or

36

any other federal law, regulation, or guidance, makes the

37

household ineligible for the maximum CalFresh benefits provided to that household size pursuant to

38

Chapter 10 (commencing with Section 18900) shall be eligible for

39

benefits under this chapter.

PRIOR LEGISLATION:

AB 1106 (Weber), Chapter 1106, Statutes of 2017, was substantially similar to this bill upon introduction, but was later amended such that the provisions of the bill related to the basic allowance for housing were deleted, and instead required an APP to have no less than 36 months to expend allocated funds.

H.R. 1078 (Davis), 2017, would exclude the basic allowance for housing for a member of a uniformed service from any income, assets, or resources calculations for purposes of determining eligibility for federal supplemental nutrition programs. It is currently in the House Armed Services Committee and the House Agriculture Committee.

AB 1679 (Weber), 2016, excluded the basic allowance for housing received by active military personnel from being counted as income for purposes of determining eligibility for state preschool services. It was held in the Assembly Appropriations Committee.

AB 427 (Weber), 2015, excluded the military housing allowance from being calculated as income when determining eligibility for child care and development services under the Child Care and Development Services Act. It was held in the Senate Appropriations Committee.

AB 170 (Saldana), 2007, was similar to this bill and excluded the basic housing allowance received by active military personnel from being counted as income for purposes of determining eligibility for state preschool. It died in the Assembly Appropriations Committee.

DOUBLE REFERRAL. This bill has been double-referred. Should this bill pass out of this committee, it will be referred to the Assembly Veterans Affairs Committee.

REGISTERED SUPPORT / OPPOSITION:

Support

American Academy of Pediatrics, CA

California Alternative Payment Program Association (sponsor)

California Association of Food Banks

Children’s Council of San Francisco

Children’s Defense Fund – California

Coalition of California Welfare Rights Organizations

Feeding San Diego

Food Bank of Contra Costa and Solano

Jewish Family Service of Los Angeles

Orange County Food Access Coalition

UDW/AFSCME Local 3930

Western Center on Law and Poverty (sponsor)

Opposition

None on file.

Analysis Prepared by: Kelsy Castillo / HUM. S. / (916) 319-2089