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MINUTES OF THE
CHILD CARE TASK FORCE

November 3, 1998 - 9:30 a.m. - Room 403 State Capitol


Members Present:
     Sen. Leonard Blackham, Chair    
    Rep. Sheryl Allen, Chair            
    Sen. Robert Muhlestein        
    Sen. Pete Suazo        
    Rep. David Jones
    Julie Baker
    Rod Betit
    Melinda Clark
    Ric Higbee
    Pat Kreher    
    Elyce Mouskondis
    Joan Nichol
    Dee Rowland
    Jill Rubadiri
    David Sonnenreich
    Debra Stone        
    Erin Trenbeath-Murray    
    


Members Absent:
    Rep. Margaret Dayton


Staff Present:
    Mr. Mark D. Andrews
     Research Analyst
    Mr. James L. Wilson,
     Associate General Counsel
    Ms. Wendy L. Bangerter,
     Legislative Secretary


    Note:    A list of others present and a copy of materials distributed in the meeting are on file in the         Office of Legislative Research and General Counsel.

1.    Call to Order and Approval of October 6 and October 20 Minutes - - Rep. Allen called the meeting to order at 9:40 a.m. and turned the chair over to Sen. Blackham.

    MOTION:    Ms. Rowland moved to approve the minutes of October 6 and October 20 meetings. The motion passed unanimously with Sen. Suazo absent for the vote.
        
        2.    Training


    
Review of draft legislation to implement literacy initiative. Mr. Wilson explained Child Literacy Programs (1999FL-0132/005), draft legislation that would implement a three-level child literacy initiative for the State of Utah. He reviewed the roles of parents, schools, and others involved with child care. The State Board of Education has budgeted $3 million to implement this program, but full funding has not been resolved. This legislation will be heard by the Education Interim Committee on November 19, 1998.

     MOTION: Mr. Sonnenreich moved to amend Page 3, line 12: after "communities" insert "including the training of child care providers."

    SUBSTITUTE MOTION: Ms. Trenbeath-Murray moved to add child care providers to the following clause on page 2, lines 20-21: "(C) coordinate the collaboration of literacy programs for children ages 5 through 8 among families, communities, and elementary schools."

    The substitute motion was withdrawn by the sponsor and the original motion passed unanimously.

    MOTION: Sen. Suazo moved to adopt Child Literacy Programs, as amended, as a task force bill. The motion passed unanimously.

    Linking consumer subsidy rate to licensure/certification, training, and accreditation of provider. Ms. Kreher reviewed the revised licensing, compensation and training matrix. She explained that the new draft encourages providers to receive more training, gives parents the ability to make more informed choices, and provides an incentive for providers to increase their ratings for quality child care.

    Ms. Iona Thraen, Department of Health, explained the department's proposal to establish a system to rate providers based on compliance with child care rules, training, and longevity. The system would include cash awards and would cost approximately $255,600 the first year to implement.

    Ms. Debra Wynkoop-Green, Department of Health, addressed the options for funding the proposed rating program. She committed to keeping policymakers informed about what they can do to further this program.

    MOTION: Rep. Allen moved to adopt the rating system proposed by the Department of Health and the differentiated reimbursement rate structure proposed by the Department of Workforce Services, contingent upon the availability of federal funding. The motion passed unanimously.

3.    Utah Private Child Care Association -- Mr. H. Craig Moody, Utah Private Child Care Association, testified that the Child Care Association fears that even with the adoption of the measures proposed by the task force, there will be very little effect or change made unless some basic structural changes are made. He stated that a market place is being created where overburdened licensed centers will not be able to compete with unlicensed care. He proposed that all child care providers receiving state funding at least be certified, if not licensed. He requested that the task force consider that taxpayer dollars should be spent on ensuring a safe and quality environment.

    Sen. Blackham stated that he didn't know of any study that shows that licensed care is safer or better than family care. He wondered, however, whether the cash-out was a practice that could be eliminated.

    Ms. Helen Thatcher, Department of Workforce Services, clarified that some unlicensed child care follows state standards and requirements and some does not. She responded that in 1989 the federal government stopped the state from subsidizing only licensed child care. More recent federal welfare reform legislation recommends that consumer choice and quality continue to be the focus. The Department of Workforce Services requires that if a parent is subsidized, the parent has to be working. The cash-out is a payment to the parent, based on type of care and age of the child in child care. Ms. Thatcher emphasized that there are not enough adequate licensed providers, especially in the rural areas. She recommended that the state continue to allow parents to choose care that's appropriate for their children and to pay parents directly.

    Ms. Rowland noted that she had investigated allegations regarding the misuse of cash-out funds. She discovered from the department that each case is reviewed. They told her that parents are required to submit receipts from their pre-paid child care services quarterly in order to receive further subsidy. The department tries to foresee needs to the best of its abilities and audit the use of funds to avoid misuse.

     MOTION: Mr. Sonnenreich moved to table this discussion.

    SUBSTITUTE MOTION: Rep. Allen moved to ask that the Department of Workforce Services Advisory Committee and the Employer Council work with the child care provider associations to discuss cash-out and bring recommendations to the Workforce Services Interim Committee in the spring of 1999.

    Mr. Sonnenreich withdrew his motion in favor of the substitute motion. The substitute motion passed unanimously.
    
        4.    Tax Credit for Contributions to Child Care

    Mr. Sonnenreich explained draft legislation, Credit for Contributions to Child Care (1999FL-0329/003), which would provide a credit for contributions by corporations to child care providers. He emphasized that the taxpayer must not benefit directly from the contribution and that cash contributions are not allowed. The bill includes a sunset provision and limits the amount of the credit. One of the major purposes of the legislation is to create a partnership between businesses and child care providers. The bill will have a good fiscal note.

    Mr. Andrews reviewed information about use of the Colorado tax credit for contributions to child care.

    Ms. Karen Silver, Salt Lake Community Action program, noted that all in-kind donations should be free of lead-based paint.

    MOTION: Mr. Sonnenreich moved to accept Credit for Contributions to Child Care as a committee bill.
    
    SUBSTITUTE MOTION: Sen. Muhlestein moved to refer Credit for Contributions to Child Care to the Workforce Services Interim Committee for further study. The substitute motion failed with all members present voting in opposition except Sen. Muhlestein, who voted in favor of the motion.

    The original motion passed with all members present voting in favor except Sen. Muhlestein who voted in opposition to the motion.

         5.    Availability of Funding for Quality and Other Improvements
    
    Impact of recently passed federal appropriations bill. Not discussed.

    Letter urging state match of available federal funds. There was no discussion nor additional action taken on the revised letter mailed to members of the task force prior to the meeting.

    
Revolving loan fund. Not discussed.

    
Reallocation of money funding before and after school programs.

    Ms. Joan Nichol suggested that the Legislature reallocate some of the state and federal funds for before and after school programs.

    Pat Kreher responded that The Department of Workforce Services (DWFS) administers $450,000 in state funds for various before and after school programs, and that the federal government is allocating approximately $900,000 in schools for the 21st Century monies. She explained that the money was originally viewed as seed money for programs but that it has not been used that way. She agreed that Ms. Nichol's concern is a valid one. The Department would like to address the issue using community collaboration.

6.    Uniform Zoning Provisions -- Rep. Allen explained that a committee has been considering municipal zoning issues related to child care.

     Ms. Angela Casady, Professional Family Child Care Association, and Ms. Shauna Lower, explained a model zoning ordinance mailed to members of the task force prior to the

meeting. The ordinance, which continues to be revised and improved, would allow child care providers to be licensed as businesses in their own communities without being required to follow strict commercial standards. Too many restrictions can cause some child care providers to operate unregulated or go out of business. She requested a letter of endorsement from the task force that would encourage communities to amend and simplify their zoning ordinances on a voluntary basis. This concept will be presented to cities at the next Utah League of Cities and Towns conference.

    MOTION: Ms. Rowland moved to support the concept of a voluntary model uniform zoning ordinance for child care providers. The motion passed unanimously with Sen. Muhlestein, Rep. Jones, Rod Betit, and Elyce Mouskondis being absent for the vote.         

7.    Requests for Action by Other Entities


    Resolution urging creation of Business Commission on Child Care - Mr. Wilson explained the amendments made to the previously considered resolution as requested by the task force. He stated that the resolution will go forth as a recommendation from the committee.

    Role of Workforce Services Interim Committee - Rep. Allen noted that there have been requests that the task force be continued. She explained that a request for continuation can be carried by a legislator into the session. The Workforce Services Interim Committee could also be assigned to address unresolved issues.

    Mr. Sonnenreich stated that Ms. Mouskondis had to leave, but asked if he would relay her feelings that if the task force were to be continued, consideration should be given to consolidating the two state agencies associated with child care.

    Mr. Wilson explained that continuing the task force would require legislation. If the task force requested that unresolved issues be considered by the Workforce Services Interim Committee, a letter from the chairs of the task force would be needed stating that request. He explained that legislative leadership is trying to curtail the number of task forces. He also explained that a recent Utah Supreme Court decision suggests there may be a constitutional problem when a task force is comprised of persons from more than one branch of government. If this task force were reauthorized, the makeup of the membership might have to be altered. Direction from the Legislature will be forthcoming regarding this issue.
    
    MOTION: Sen. Suazo moved to request reauthorization of the task force. The motion passed unanimously with Sen. Muhlestein, Rep. Jones, Rod Betit, and Elyce Mouskondis being absent for the vote.

    Letter encouraging application for Medicaid 1115 waiver and enrollment in new Children's Health Insurance Program - Mr. Andrews referred to the draft letter mailed to task force members. The letter recommends that the state increase the availability of health insurance to child care employees and their dependents by:

    (1)    mounting an aggressive campaign to enroll the dependent children of child care employees in the new Children's Health Insurance Program;
    (2)    evaluating whether a new Medicaid 1115 waiver should be submitted to allow expansion of Medicaid benefits to low income adults who do not otherwise qualify for benefits or are subject to burdensome spend-down requirements; and
    (3)    Directing that the Workforce Services Interim Committee or the Utah Health Policy Commission study the availability of health insurance to child care employees.

    Ms. Nichol noted that 80 percent of child care owners and employees do not have insurance benefits.

    MOTION: Ms. Rowland moved to approve the letter. The motion passed unanimously with Sen. Muhlestein, Rep. Jones, Rod Betit, and Elyce Mouskondis being absent for the vote.
        
        8.    Other Business - Child Care Legislation requested for the 1999 General Session -      Mr. Wilson indicated that there have been no requests for child care legislation for the 1999 General Session other than those proposed by the task force. He reviewed the five pieces of legislation developed and supported by the task force:

     Child Care Provider Criminal Background Check Amendments
    Child Literacy Programs
    Child Care Commission Resolution
    Credit for Contributions to Child Care
    Child Care Task Force Reauthorization


Sen. Blackham explained that two years ago the Department of Health was required to submit proposed language to codify the rules regarding child care licensing. He noted they have fulfilled that responsibility and that language may be considered during the session.

    Preliminary report by the University of Utah, Understanding Families With Multiple Barriers to Self-sufficiency - Rep. Allen reviewed the preliminary report presented by the University of Utah to the Workforce Services Interim Committee as required in the TANF (Temporary Assistance for Needy Families) bill passed in the 1997 General Session. She noted that TANF's goal is to get people working and providing for themselves. Twenty percent of TANF families receiving cash assistance will be allowed to exceed the three-year time limit for

receiving state aid. She reviewed the profile of an average long-term recipient, as well as the long-term predictive barriers to work. The most common barriers are mental health problems and behavior problems in the recipients' children. One of the biggest concerns of recipients is that their child care provider will harm their child. That also creates a barrier to work.
        
        9.    Adjourn - Sen. Blackham and Rep. Allen expressed appreciation for the consistent attendance and commitment of the members of the task force, stating their pleasure at having had the opportunity to work with them. They feel good about the proposals and actions that have resulted from the work of the task force.
    
    MOTION: Sen. Suazo moved to adjourn the meeting. The motion passed unanimously at 1:37 p.m. with Sen. Muhlestein, Rep. Jones, Rod Betit, and Elyce Mouskondis absent for the vote.



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