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Rather than require that all child care uses receive a State child care license, this option would require that all applicants seek a determination from the State Community Care Licensing Division as to whether its use requires a license or can be exempted from the licensing requirements. If an applicant's program is exempted, the applicant would be required to prepare written procedures and standards addressing all the issues outlined above (criminal background checks, health screenings, training, disaster planning, outdoor recreation, etc.). The standards should generally be based on those imposed by the State although equivalent requirements could be considered based on the specifics of the site or for other valid reasons. The standards would become part of the approval process through conditions of approval. The applicant would then self certify that all of the standards had been satisfied, with the condition that should it become apparent that the standards have not been followed, it would be grounds for revocation of any use permit and /or business license. This alternative policy has the potential to allow more flexibility in addressing standards for this use. For example, it would be possible to approve a use which cannot accommodate an outside recreation area if it was believed that a programmatic equivalent would serve as well. This alternative policy also raises issues of City responsibility for monitoring and enforcing the standards adopted by the uses for those businesses not licensed by the state. This is particularly important because staff turnover in this type of work is high and new employees would need to undergo background checks and meet other requirements. In the absence of state regulation, there is also the issue of to whom complaints about the business would be directed. City staff is not currently trained to conduct such investigations and it is not clear that the City would wish to assume this responsibility. For these reasons, staff is not recommending this alternative. In addition to discussing this issue with the Division of Community Care Licensing, staff also discussed these proposals with Carol Thompson, Executive Director of Child Care Links. REVIEW BY THE PLANNING COMMISSION At its July 8, 2009 meeting, the Planning Commission considered this item (please see Minutes Excerpts, Attachment 4). At that time, staff was recommending a definition of child care based solely on the number of hours a child participated and the type of use. Commissioners generally favored the alternative policy detailed in Attachment 2 (regulation imposed by the City rather than State licensing) due to doubts about the State's ability to expedite licensing and to regularly inspect and effectively regulate facilities given the State's financial constraints. Commissioners believed that the City could do this more effectively and that taking on this role would not substantially increase the City's legal liability in this area. Several Commissioners also expressed support of clearly disclosing whether or not the facility is licensed by the State, and of providing additional resources to parents to make informed decisions about child care options. Page 6 of 7