SENATE BILL REPORT
ESHB 1133
BYHouse Committee on Trade & Economic Development (originally sponsored by Representatives 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)
Regarding employer involvement in child care.
House Committe on Trade & Economic Development
Rereferred House Committee on Appropriations
Senate Committee on Economic Development & Labor
Senate Hearing Date(s):March 28, 1989; March 31, 1989
Majority Report: Do pass as amended.
Signed by Senators Lee, Chairman; Anderson, Vice Chairman; McDonald, McMullen, Murray, Saling, Smitherman, Warnke, Williams.
Senate Staff:Jonathan Seib (786-7427)
April 3, 1989
AS REPORTED BY COMMITTEE ON ECONOMIC DEVELOPMENT & LABOR, MARCH 31, 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 them.
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 an information and referral system; (2) maintain a statewide referral system; (3) coordinate training and technical assistance to providers; (4) encourage employer-sponsored programs through a business outreach program; (5) assemble information regarding the availability of insurance and funding; (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 provide: (1) a detailed description of the proposed or existing child care facility; (2) an itemization of costs and investment needed to develop or expand the child care; (3) 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) the reasons why the applicant cannot obtain conventional financing; and (5) 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, who are ill, who need care at night or on weekends and 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.
Appropriation: The sum of $250,000 to the Department of Social and Health Services
Revenue: none
Fiscal Note: requested February 22, 1989
Effective Date:The bill contains an emergency clause and takes effect immediately.
SUMMARY OF PROPOSED SENATE AMENDMENTS:
Explicit responsibility for staffing the Child Care Coordinating Committee is placed with the Child Care Resource Coordinator. The duties of the Child Care Resource Coordinator are changed, primarily by adding the responsibility to organize the local resource and referral organizations into a statewide system.
The Child Care Partnership is created as a subcommittee of the Child Care Coordinating Committee. The partnership will be composed of business, labor and child care services representatives. It will study various policy issues related to employer-assisted child care and make recommendations to local and state governments and employers in this regard.
The position of employer liaison in the Department of Social and Health Services is created to be assigned to and located at the Business Assistance Center. The employer liaison will staff the partnership, assist local care care resource and referral organizations in increasing their capacity to assist employers, and provide technical assistance to employers, working through and with local resource and referral organization whenever possible.
The Child Care Partnership Program, in the form of duties assigned to the Office of the Child Care Resource Coordinator, is deleted. The duties are assigned to the partnership committee and the employer liaison.
The child care facilities loan guarantee fund is deleted (a duplicate program is created by SSB 6051).
The appropriation is deleted ($100,000 is provided in the budget).
Senate Committee - Testified: Representative Jesse Wineberry; Lonnie Johns-Brown, Washington State NOW; Karen Keiser, Washington State Labor Council; Margie Reeves, Child Care Coordinating Committee, W.A.E.Y.C.; Clif Finch, AWB