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art.017/6/017/5

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     ARTICLE 17

RELATING TO HUMAN SERVICES -- CHILD CARE--STATE SUBSIDIES

     SECTION 1. Section 40-6.2-1.1 of the General Laws in Chapter 40-6.2 entitled "Child

Care-State Subsidies" is hereby amended to read as follows:

     40-6.2-1.1. Rates established. -- (a) Through June 30, 2015, subject Subject to the

payment limitations in section (b), the maximum reimbursement rates to be paid by the

departments of human services and children, youth and families for licensed child care centers

and certified family-child care providers shall be based on the following schedule of the 75th

percentile of the 2002 weekly market rates adjusted for the average of the 75th percentile of the

2002 and the 2004 weekly market rates:

LICENSED CHILD CARE CENTERS 75th PERCENTILE OF WEEKLY MARKET RATE

INFANT $182.00

PRESCHOOL $150.00

SCHOOL-AGE $135.00

CERTIFIED FAMILY-CHILD CARE 75th PERCENTILE OF WEEKLY MARKET RATE

PROVIDERS

INFANT $150.00

PRESCHOOL $150.00

SCHOOL-AGE $135.00

     Effective July 1, 2015, subject to the payment limitations in subsection (b), the maximum

reimbursement rates to be paid by the departments of human services and children, youth and

families for licensed child care centers and certified family-child care providers shall be based on

the above schedule of the 75th percentile of the 2002 weekly market rates adjusted for the average

of the 75th percentile of the 2002 and the 2004 weekly market rates. These rates shall be increased

by ten dollars ($10.00) per week for infant/toddler care provided by certified family-child care

providers and license-exempt providers and then the rates for all providers for all age groups shall

be increased by three percent (3%).

     (b) The department shall pay child care providers based on the lesser of the applicable

rate specified in subsection (a), or the lowest rate actually charged by the provider to any of its

public or private child care customers with respect to each of the rate categories, infant, preschool

and school-age.

     (c) By June 30, 2004 and biennially thereafter through June 30, 2014, the department of

labor and training shall conduct an independent survey or certify an independent survey of the

then current weekly market rates for child care in Rhode Island and shall forward such weekly

market rate survey to the department of human services. The next survey shall be conducted by

June 30, 2016, and triennially thereafter. The departments of human services and labor and

training will jointly determine the survey criteria including, but not limited to, rate categories and

sub-categories. The 75th percentile of weekly market rates in the table in subsection (a) shall be

adjusted by the surveys conducted under this subsection, beginning January 1, 2006 and for the

purposes of this section, and until adjusted in accordance with this subsection, the 75th percentile

of weekly market rate shall be the average of the 2002 and 2004 weekly market rate surveys.

     (d) In order to expand the accessibility and availability of quality child care, the

department of human services is authorized to establish by regulation alternative or incentive

rates of reimbursement for quality enhancements, innovative or specialized child care and

alternative methodologies of child care delivery, including non-traditional delivery systems and

collaborations.

     (e) On or before January 1, 2007, all child care providers have the option to be paid every

two (2) weeks and have the option of automatic direct deposit and/or electronic funds transfer of

reimbursement payments.

     SECTION 2. Section 40-5.2-20 of the General Laws in Chapter 40-5.2 entitled "The

Rhode Island Works Program" is hereby amended to read as follows:

     40-5.2-20. Child care assistance. -- Families or assistance units eligible for childcare

assistance.

      (a) The department shall provide appropriate child care to every participant who is

eligible for cash assistance and who requires child care in order to meet the work requirements in

accordance with this chapter.

      (b) Low-Income child care. - The department shall provide child care to all other

working families with incomes at or below one hundred eighty percent (180%) of the federal

poverty level if, and to the extent, such other families require child care in order to work at paid

employment as defined in the department's rules and regulations. Beginning October 1, 2013, and

until June 30, 2015, subject to available funding, the department shall also provide child care to

families with income below one hundred eighty percent (180%) of the federal poverty level if,

and to the extent, such families require child care to participate on a short-term basis, as defined

in the department's rules and regulations, in training, apprenticeship, internship, on-the-job

training, work experience, work immersion, or other job readiness/job attachment program

sponsored or funded by the human resource investment council (governor's workforce board) or

state agencies that are part of the coordinated program system pursuant to §§ 42-102-9 and 42-

102-11.

      (c) No family/assistance unit shall be eligible for child care assistance under this chapter

if the combined value of its liquid resources exceeds ten thousand dollars ($10,000). Liquid

resources are defined as any interest(s) in property in the form of cash or other financial

instruments or accounts that are readily convertible to cash or cash equivalents. These include,

but are not limited to, cash, bank, credit union, or other financial institution savings, checking,

and money market accounts; certificates of deposit or other time deposits; stocks; bonds; mutual

funds; and other similar financial instruments or accounts. These do not include educational

savings accounts, plans, or programs; retirement accounts, plans, or programs; or accounts held

jointly with another adult, not including a spouse. The department is authorized to promulgate

rules and regulations to determine the ownership and source of the funds in the joint account.

      (d) As a condition of eligibility for child care assistance under this chapter, the parent or

caretaker relative of the family must consent to, and must cooperate with, the department in

establishing paternity, and in establishing and/or enforcing child support and medical support

orders for all children in the family in accordance with title 15, as amended, unless the parent or

caretaker relative is found to have good cause for refusing to comply with the requirements of this

subsection.

      (e) For purposes of this section "appropriate child care" means child care, including

infant, toddler, pre-school, nursery school, school-age, that is provided by a person or

organization qualified, approved, and authorized to provide such care by the department of

children, youth, and families, or by the department of elementary and secondary education, or

such other lawful providers as determined by the department of human services, in cooperation

with the department of children, youth and families and the department of elementary and

secondary education.

      (f) (1) Families with incomes below one hundred percent (100%) of the applicable

federal poverty level guidelines shall be provided with free childcare. Families with incomes

greater than one hundred percent (100%) and less than one hundred eighty (180%) of the

applicable federal poverty guideline shall be required to pay for some portion of the childcare

they receive, according to a sliding-fee scale adopted by the department in the department's rules.

      (2) For a thirty-six (36) month period beginning October 1, 2013, the child care subsidy

transition program shall function within the department of human services. Under this program,

families who are already receiving childcare assistance and who become ineligible for childcare

assistance as a result of their incomes exceeding one hundred eighty percent (180%) of the

applicable federal poverty guidelines shall continue to be eligible for childcare assistance from

October 1, 2013, to September 30, 2016 or until their incomes exceed two hundred twenty-five

percent (225%) of the applicable federal poverty guidelines, whichever occurs first. To be

eligible, such families must continue to pay for some portion of the childcare they receive, as

indicated in a sliding-fee scale adopted in the department's rules and in accordance with all other

eligibility standards.

      (g) In determining the type of childcare to be provided to a family, the department shall

take into account the cost of available childcare options; the suitability of the type of care

available for the child; and the parent's preference as to the type of child care.

      (h) For purposes of this section "income" for families receiving cash assistance under §

40-5.2-11 means gross earned income and unearned income, subject to the income exclusions in

subdivisions 40-5.2-10(g)(2) and 40-5.2-10(g)(3), and income for other families shall mean gross

earned and unearned income as determined by departmental regulations.

      (i) The caseload estimating conference established by chapter 17 of title 35 shall forecast

the expenditures for childcare in accordance with the provisions of § 35-17-1.

      (j) In determining eligibility for child care assistance for children of members of reserve

components called to active duty during a time of conflict, the department shall freeze the family

composition and the family income of the reserve component member as it was in the month prior

to the month of leaving for active duty. This shall continue until the individual is officially

discharged from active duty.

     SECTION 3. This article shall take effect upon passage.