HOUSE BILL REPORT
EHB 1133
BYRepresentatives Wineberry, Cantwell, Brough, Kremen, Schoon, Hine, Holland, Rasmussen, Miller, Ebersole, Doty, Locke, Winsley, H. Sommers, Anderson, Wang, Valle, Rust, R. King, Bristow, Sprenkle, Leonard, Vekich, Prentice, Beck, K. Wilson, Rector, Spanel, Cole, Basich, Jones, Braddock, Betrozoff, Nelson, Walker, Tate, Heavey, G. Fisher, Crane, O'Brien, Walk, Scott, Patrick, Dellwo, Zellinsky, Jesernig, Belcher, R. Fisher, Sayan, Pruitt, Wood, Brekke, Inslee, Fuhrman, Moyer, Todd, H. Myers, Brumsickle, Van Luven, Phillips, May and P. King
Encouraging employer involvement in child care facilities development and services.
House Committe on Trade & Economic Development
Majority Report: The substitute bill be substituted therefor and the substitute bill do pass. (9)
Signed by Representatives Cantwell, Chair; Wineberry, Vice Chair; Kremen, Moyer, Rasmussen, Raiter, Tate, Walk and Youngsman.
House Staff:Charlie Gavigan (786-7340)
Rereferred House Committee on Appropriations
Majority Report: The substitute bill by Committee on Trade & Economic Development as amended by Committee on Appropriations be substituted therefor and the substitute bill as amended do pass. (24)
Signed by Representatives Locke, Chair; Grant, Vice Chair; H. Sommers, Vice Chair; Silver, Ranking Republican Member; Belcher, Bowman, Braddock, Bristow, Brough, Dorn, Ebersole, Ferguson, Hine, Holland, May, McLean, Nealey, Padden, Rust, Sayan, Spanel, Valle, Wang and Wineberry.
House Staff: Sandi Gray (786-7136)
AS PASSED HOUSE MARCH 9, 1989
BACKGROUND:
Child care is licensed and coordinated by the Department of Social and Health Services (DSHS). In addition to regulating child care providers, DSHS also provides technical assistance and other programs to help child care providers.
In 1987, the Legislature created a coordinator for Child Care Resources in DSHS, and directed the coordinator to help encourage employer-provided assistance for child care. This legislation expires in June, 1989.
In 1988, the Legislature established a Child Care Coordinating Committee to help coordinate state agencies in this area and to provide recommendations to the Legislature regarding child care subsidy programs. Currently, the major state subsidy programs are: (1) child care assistance provided through Aid to Families with Dependent Children (AFDC); (2) child care assistance to low income, employed, and non-AFDC persons; (3) child care assistance to teenage parents who are completing their high school education or General Education Development Test (GED); (4) child care for seasonal workers who are low income; and (5) child care associated with Child Protective Services.
The Legislature established a child care policy in statute in 1988. The policy encourages the participation of families and businesses in operating and expanding the child care system in the state to meet the needs of the labor market and to assist families. The policy encourages traditional at-home parenting, but also promotes the availability and affordability of quality child care for families that need child care assistance.
SUMMARY:
Representatives of the Department of Labor and Industries, the Department of Revenue, and the Employment Security Department are added as members to the Child Care Coordinating Committee in the Department of Social and Health Services (DSHS). The Department of Revenue, the Department of Labor and Industries, the Employment Security Department, and the Department of Trade and Economic Development are to assist DSHS by providing information to employers and businesses through routine agency communications with employers and businesses. The Business Assistance Center in the Department of Trade and Economic Development also is to help the Child Care Coordinating Committee work with businesses.
The Child Care Coordinating Committee is to study the liability insurance issues associated with child care and report to the Legislature in December 1990.
The Child Care Resource Coordinator is to: (1) seek money for operating a child care information and referral system; (2) maintain a state-wide child care referral system; (3) coordinate training and technical assistance to child care providers; (4) encourage employer-sponsored child care programs through a business outreach program; (5) assemble information regarding the availability of insurance and other funding available for providing child care; (6) administer the child care partnership program; and (7) report to the Legislature and governor each December, making recommendations for encouraging employer-provided assistance for child care.
A Child Care Partnership Program is established in DSHS under the direction of the Child Care Resource Coordinator. The program is to facilitate partnerships between the public and private sectors to increase the availability, quality, and affordability of child care in the state. The program is to work with the Child Care Coordinating Committee and existing resource and referral programs.
The Child Care Partnership Program is to provide technical assistance to employers, to provide information to employers on options for increasing their involvement in child care, to assist community-based child care resource and referral programs to increase their capacity, and to encourage local governments to create incentives for employer involvement in child care.
The Child Care Facilities Loan Guarantee Fund is established in the Development Loan Fund (DLF). This fund will guarantee loans used for expanding, renovating, making capital improvements to, or financing child care facilities.
The applicant for a guarantee must: (1) provide a detailed description of the proposed or existing child care facility; (2) provide an itemization of costs and investment needed to develop or expand the child care; (3) provide a summary of the funds available to expand or develop the child care facility and the amount of the loan the applicant needs to be guaranteed; (4) provide the reasons why the applicant cannot obtain conventional financing; and (5) provide a financial statement.
In making the loan guarantee, the DLF Committee is to consider: (1) the geographic distribution of the child care facilities; (2) the needs of the community; (3) the income level of the community, with priority given to communities with lower income; and (4) the commitment of the applicant to serve a reasonable number of children who are handicapped, children who are ill, children who need care at night or on weekends and children whose costs are subsidized by DSHS.
The Development Loan Fund is encouraged to provide loans for child care facilities.
The Child Care Resource Coordinator is to provide a report to the Legislature each even-numbered year. The report is to contain recommendations for improving the state programs to encourage employer involvement in child care.
Two hundred fifty thousand dollars is appropriated for the Child Care Partnership Program.
Appropriation: The sum of $250,000 to the Department of Social and Health Services.
Fiscal Note: Requested February 22, 1989.
Effective Date:The bill contains an emergency clause and takes effect immediately.
House Committee ‑ Testified For: (Trade & Economic Development) Sandra Burud, Patty Siegal and Karen Tvedt, Department of Social and Health Services; Bill Dethlefs, U. S. Sprint - General Telephone and Electronics; Denise Bohanna, Washington Association for the Education of Young Children; Cliff Finch, Association of Washington Businesses; Lonnie Johns-Brown, National Organization for Women; Vicki Pearson, Child Care Works for Washington; Saline Chow, City of Seattle; and Randy Ray, National Association of Industrial Parks.
(Appropriations) Vicki Pearson, Child Care Works for Washington.
House Committee - Testified Against: (Trade & Economic Development) None Presented.
(Appropriations) None Presented.
House Committee - Testimony For: (Trade & Economic Development) The dramatic increase in the participation of women in the workforce has resulted in the demand for child care exceeding the supply provided by the market. There is a lack of quality affordable child care. Employees with child care concerns or problems affect economic development. Child care problems cause higher absenteeism, lower productivity, and prevent some women from participating in the workforce.
Most employers know little about providing child care assistance. The Department of Social and Health Services provides information, resource and referral assistance, technical assistance, and other services for child care. However, the department does not have the resources to adequately assist businesses to either provide or assist in the provision of child care. This bill allows the department to focus some of its efforts regarding providing information and other technical assistance on employers so they can be more involved in this area.
Grants would provide a small incentive that could significantly increase the availability of quality and affordable child care to employees by encouraging businesses that are thinking about child care to actually become directly involved. A small investment by the state can lead to large investment by the private sector in providing child care assistance.
Liability insurance is also a major issue in providing child care and should be studied.
(Appropriations) Same as Committee on Trade & Economic Development.
House Committee - Testimony Against: (Trade & Economic Development) None Presented.
(Appropriations) None Presented.