The Florida Senate
                   BILL ANALYSIS AND FISCAL IMPACT STATEMENT
               (This document is based on the provisions contained in the legislation as of the latest date listed below.)
                Prepared By: The Professional Staff of the Appropriations Subcommittee on Education
BILL:            SB 1336
INTRODUCER:      Senator Gibson
SUBJECT:         Gold Seal Quality Care Program
DATE:            April 7, 2021                   REVISED:
           ANALYST                     STAFF DIRECTOR                 REFERENCE                                 ACTION
1. Brick                             Bouck                                 ED              Favorable
2. Underhill                         Elwell                               AED              Recommend: Favorable
3.                                                                         AP
  I.    Summary:
        SB 1336 transfers the Gold Seal Quality Care (GSQC) program from the Department of Children
        and Families to the Department of Education (DOE) and modifies requirements for GSQC
        accreditation. The bill provides flexibility by allowing a qualified entity to become an accreditor,
        regardless of whether the entity is part of an association.
        The bill requires the DOE to establish a process, including an auditing program, for verifying
        compliance with the revised requirements for accrediting entities and requires the DOE to
        recommend to the State Board of Education (SBE) termination of the accreditor’s eligibility for
        two to five years if it is unable to correct deficiencies within 30 days. If an accreditor loses its
        approved status, the bill allows the providers it accredited one year to obtain accreditation from
        another approved accreditor. An accreditor is liable for repayment of provider payment
        differentials if it fraudulently grants accreditation or fails to conduct on-site verification.
        The bill authorizes the DOE to revoke an accrediting entity’s approval if the entity has accredited
        10 or fewer child care providers in the previous five years. The bill also authorizes the DOE to
        recommend to the SBE that a GSQC provider maintain its status after it is cited for certain
        violations in specified circumstances.
        The bill does not require a state appropriation. The bill requires a Type 2 transfer of functions
        from the DCF to the DOE and increases the differential payment that school readiness providers
        with the GSQC designation receive from a maximum of 20 percent to a minimum of 20 percent.
        See Section V.
        The bill takes effect upon becoming a law.
BILL:     SB 1336                                                                                                        Page 2
    II.    Present Situation:
           The Department of Children and Families
           The Department of Children and Families (DCF) administers the state’s child care provider
           licensing program1 and is responsible for enforcing compliance with licensing standards by child
           care facilities, including large family child care homes and family day care homes.2
           The GSQC Quality Care Program
           The DCF also adopts rules to administer the Gold Seal Quality Care (GSQC) program.3 A GSQC
           designation entitles child care providers to a rate differential of up to 20 percent above the Early
           Learning Coalition’s (ELC’s) approved reimbursement rate4 and other benefits, including certain
           property tax and sales tax exemptions.5 The law disqualifies child care facilities from
           accreditation if they receive a specified maximum number of Class I, II, or III violations within
           the two-year period preceding the application for accreditation.6
           To achieve GSQC status, a licensed child care provider must be accredited by an approved
           accrediting association. Accrediting standards must be based on applicable accrediting standards
           of the National Association for the Education of Young Children (NAEYC), the National
           Association of Family Child Care (NAFCC), and the National Early Childhood Program
           Accreditation Commission (NECPAC).7
           To be approved as an accrediting association, the association must be recognized as an
           accrediting association and have accrediting standards that meet or exceed the GSQC accrediting
           standards adopted by the DCF.8 Specifically, the accrediting association must:9
            Have been active and accrediting child care facilities for at least five years before submitting
               an application to the DCF;
            Be currently incorporated and registered to conduct business in Florida;
            Submit and meet the requirements of the accrediting association application form;10 and
            Submit a cross walk of its accrediting standards with the DCF’s GSQC accrediting standards.
1
  See ss. 402.301-402.319, F.S., and s. 1002.88, F.S.
2
  Section 402.305, F.S. Certain child care facilities which are an integral part of a church or specified parochial school are
exempt from licensing standards. Section 402.316, F.S.
3
  Section 402.281, F.S.
4
  Rule 6M-4.500(9), F.A.C.
5
  Educational materials, such as glue, paper, paints, crayons, unique craft items, scissors, books, and educational toys
purchased by a licensed child care facility that meets minimum statutory standards, holds a current GSQC designation, and
provides basic health insurance to all employees are exempt from sales, rental, use, consumption, distribution, and storage
tax. Section 212.08(5), F.S. A licensed or legally exempt child care facility that achieves GSQC status is an educational
institution exempt from ad valorem tax. Section 402.26(6), F.S.
6
  Section 402.281, F.S. DCF rules governing child care facilities define Class I, II, and III violations, which are designated in
ascending order of severity, for noncompliance with minimum licensing standards of child care facilities. Rule 65C-20.012,
F.A.C.
7
  Section 402.281(2), F.S.
8
  Section 402.281(3)(a), F.S.
9
  See s. 402.281(3), F.S.; rule 65C-22.009(4)(a), F.A.C.
10
   See Form CF-FSP 5315, incorporated by reference in rule 65C-22.009(4)(a)3., F.A.C. (2019), available at
https://www.flrules.org/gateway/reference.asp?No=Ref-10508.
BILL:   SB 1336                                                                                                      Page 3
         In approving accrediting associations, the DCF must consult with:11
          The Florida Department of Education (DOE);
          The Florida Head Start Director’s Association;
          The Florida Association of Child Care Management;
          The Florida Family Child Care Home Association;
          The Florida Children’s Forum;
          The Florida Association for the Education of the Young;
          The Child Development Education Alliance;
          The Florida Association of Academic Nonpublic Schools;
          The Association of Early Learning Coalitions;
          Exempt child care providers;12 and
          Parents.
         The DCF establishes review teams composed of at least five members from the above
         stakeholder groups to evaluate an accrediting association’s application for approval.13 To receive
         approval, the association must obtain an overall compliance score of 85 percent or higher based
         on the accrediting association criteria contained in the GSQC Accrediting Association
         Evaluation Manual for Child Care Facilities.14 The approval period lasts for up to five years,
         unless the DCF terminates approval or the association voluntarily surrenders approval.15
         Applications may be submitted only in January or July.16
         The DCF has adopted fourteen accreditor standards with respect to child care facilities, including
         Staff Training and Professional Development, Teacher-Child Interactions, Literacy Support, and
         Health and Safety. There are seven such standards for home-based providers.17 Each standard
         includes detailed indicators of provider expectations. For example, within the
         Curriculum/Teacher standard, one indicator is whether the program has rich and varied materials
         to sustain curriculum plans and occupy children in activities that meet their interests.18 As part of
         the process for approving accrediting associations, the team of reviewers must evaluate whether
         the association’s standards substantially meet or exceed all indicators.19
         If the accrediting association receives a compliance score between 70 and 85 percent, it may
         resubmit its application with revisions and work to reach compliance by the next application
11
   Section 402.281(3)(b), F.S.
12
   Certain child care providers are exempt from child care licensing standards, except for background screening and local
health and safety standards, if they submit documentation to the DCF showing they are an integral part of a church or
parochial school conducting regularly scheduled classes, courses of study, or educational programs and are accredited by an
organization based on health, safety, and sanitation standards. See s. 402.316, F.S.
13
   Florida Department of Children and Families, GSQC Quality Care Program Review Process and Procedures (2015),
incorporated by reference in rule 65C-22.009(4)(c), F.A.C., available at
https://www.flrules.org/Gateway/reference.asp?No=Ref-05545 (download pdf file).
14
   See Form CF-FSP 5389, incorporated by reference in rule 65C-22.009(4)(c), F.A.C. (2015), available at
https://www.flrules.org/gateway/reference.asp?No=Ref-05514.
15
   Rules 65C-22.009(4)(e), F.A.C.
16
   Rule 65C-22.009(4)(b), F.A.C.
17
   GSQC Program Review Process and Procedures, note 13, supra, at 6.
18
   See Form CF-FSP 5389, incorporated by reference in rule 65C-22.009(4)(c), F.A.C. (2015) at 10, available at
https://www.flrules.org/gateway/reference.asp?No=Ref-05514.
19
   See id. See also GSQC Program Review Process and Procedures, note 13, supra.
BILL:   SB 1336                                                                                                    Page 4
         submission period, which is a span of six months.20 If the application is below 70 percent
         compliance, it must be denied, and the association must wait at least six months until the next
         submission period to reapply.21
         As of December 2020, there were 18 approved accrediting associations, including the NAEYC,
         the NAFCC, and the NECPAC,22 and 1,883 child care facilities, large family child care homes,
         and family day care homes possess a GSQC designation.23
         The Department of Education
         State Board of Education
         The State Board of Education (SBE)24 is the chief implementing and coordinating body of public
         education in Florida and is authorized to adopt rules to implement the provisions of law
         conferring duties upon the SBE to improve the state system of K-20 public education, except for
         the state university system. The SBE has authority over the DOE and is authorized to delegate
         the SBE’s general powers to the commissioner or the directors of the divisions of the DOE.25
         Department of Education
         The DOE is the administrative and supervisory agency under the implementation direction of the
         SBE.26 The commissioner is appointed by the SBE and serves as the executive director of the
         DOE.27 The DOE includes the Office of Early Learning (OEL), which is administered by an
         executive director who is fully accountable to the commissioner.28
         Office of Early Learning
         The OEL oversees three programs—the school readiness program, the Voluntary
         Prekindergarten Education (VPK) program, and child care resource and referral services29—and
         an annual budget of $1.37 billion.30 The OEL is the lead agency in Florida for administering the
         federal Child Care and Development Block Grant Trust Fund (CCDF).31 The OEL adopts rules
         as required for the establishment and operation of the school readiness program and the VPK
20
   See GSQC Program Review Process and Procedures, note 13, supra, at 8-9.
21
   Rule 65C-22.009(4)(b), F.A.C.
22
   Florida Department of Children and Families, GSQC Quality Care Accrediting Associations (Dec. 2020), available at
https://www.myflfamilies.com/service-programs/child-
care/docs/Approved%20Gold%20Seal%20Quality%20Care%20Program%20Accrediting%20Associations.pdf?d=2021-3-10.
23
   Florida Department of Children and Families, GSQC Quality Care Summary and Detail Data (Dec. 2020), available at
https://www.myflfamilies.com/service-programs/child-care/docs/gold-seal/Summary%20Dec%2020.pdf.
24
   The State Board of Education is established as “a body corporate and [shall] have such supervision of the system of free
public education as is provided by law.” Art. IX, s. 2, Fla. Const.
25
   Section 1001.02, F.S.
26
   Section 1001.20(1), F.S.
27
   Section 20.15(2), F.S.
28
   Section 20.15(3)(i), F.S.
29
   Id.
30
   Early Learning Services Program Total, s. 2, ch. 2020-111, L.O.F.
31
   Section 1002.82(1), F.S.
BILL:   SB 1336                                                                                                        Page 5
         program.32 The executive director of the OEL is responsible for administering early learning
         programs at the state level. The OEL governs the day-to-day operations of statewide early
         learning programs and administers federal and state child care funds.
         Early Learning Coalitions
         Across the state, 30 regional ELCs and the Redlands Christian Migrant Association are
         responsible for delivering local services, including the VPK program and the school readiness
         program.33 Each ELC is governed by a board of directors comprised of various stakeholders and
         community representatives.34
         The School Readiness Program
         The school readiness program provides subsidies for child care services and early childhood
         education for children of low-income families, children in protective services who are at risk of
         abuse, neglect, or abandonment, and children with disabilities.35 The school readiness program
         offers financial assistance for child care to support working families and children to develop
         skills for success in school and provides developmental screening and referrals to health and
         education specialists where needed.36 To participate in the school readiness program, a provider
         must execute a school readiness contract.37 During the 2019-2020 academic year, 6,932 school
         readiness providers served 211,711 children enrolled in a school readiness program.38
         Market Rate
         The OEL is required to establish procedures for the adoption of a market rate schedule for the
         school readiness program. The schedule must include, at a minimum, county-by-county rates,
         differentiated by type of child care provider and the type of child care services provided. Rates
         must be differentiated for the types of providers by:39
          The minimum and the maximum rates for child care providers that hold a GSQC designation.
          Child care providers that do not hold a GSQC designation.
          Licensed child care facilities.
          Public or nonpublic schools exempt from licensure.
          Faith-based child care facilities exempt from licensure.
          Licensed large family child care homes.
          Licensed or registered family day care homes.
32
   The OEL is required to submit the rules to the State Board of Education for approval or disapproval. If the state board does
not act on a rule within 60 days after receipt, the rule shall be immediately filed with the Department of State. Section
1001.213, F.S.
33
   The Office of Early Learning, Coalitions, http://www.floridaearlylearning.com/coalitions.aspx (last visited Mar. 19, 2021).
See also 1002.83(1), F.S.
34
   Section 1002.83(3), F.S.
35
   Section 1002.87, F.S.
36
   Section 1002.86, F.S.
37
   Rule 6M-4.610, F.A.C. Form OEL-SR 20, Statewide School Readiness Provider Contract, available at
http://www.floridaearlylearning.com/Content/Uploads/floridaearlylearning.com/images/FormOEL-
SR20StatewideSRProviderContract_7-8-20_ADA_final.pdf.
38
   Florida Office of Early Learning, 2019-20 Annual Report, available at
http://www.floridaearlylearning.com/Content/Uploads/floridaearlylearning.com/files/2019-
20%20OEL%20Annual%20Report%20FINAL%2012-29-30-GA(1).pdf, at 20 (last visited Mar. 19, 2021).
39
   Section 1002.895, F.S.
BILL:   SB 1336                                                                                           Page 6
         The market rate schedule must also differentiate rate by the type of child care services provided,
         including services provided for:40
          Children with special needs or risk categories.
          Infants, toddlers, preschool-age children, and school-age children.
          Full-time and part-time child care.
         Reimbursement rates for school readiness providers are paid based on a child’s care level and
         unit of care as defined by the ELC’s approved provider rate schedule for the county in which the
         provider’s facility is located.41 ELCs are required to consider the market rate schedule in the
         adoption of a payment schedule.
         The payment schedule must consider the average market rate, include the projected number of
         children to be served, and be submitted for approval by the OEL. Informal child care
         arrangements may be reimbursed at no more than 50 percent of the rate adopted for a family day
         care home.42
         To calculate market rates, the OEL sorts provider private pay rates for a given level of care
         within the county from highest to lowest, calculates t