2019 -- H 5106

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2019

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A N   A C T

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

     Introduced By: Representatives Diaz, Donovan, Casimiro, Slater, and Ackerman

     Date Introduced: January 10, 2019

     Referred To: House Finance

     It is enacted by the General Assembly as follows:

     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) In order to provide families and children with access to high-quality childcare and to

promote and support quality improvement of childcare programs, payment rates for the Rhode

Island Child Care Assistance Program shall be tiered and shall meet or exceed the federal

benchmark for access to high-quality childcare, with rates for programs that have achieved high-

quality ratings in the state's quality rating system outlined in § 42-12-23.1 set at or above the 75th

percentile of the most recent market rate survey.

     (a)(b) Through June 30, 2015, subject to the payment limitations in subsection (c), the

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

youth and families for licensed childcare centers and licensed family-childcare 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 CHILDCARE CENTERS 75th PERCENTILE OF WEEKLY

MARKET RATE

INFANT $182.00

PRESCHOOL $150.00

SCHOOL-AGE $135.00

LICENSED FAMILY CHILDCARE 75th PERCENTILE OF WEEKLY

PROVIDERS MARKET RATE

INFANT $150.00

PRESCHOOL $150.00

SCHOOL-AGE $135.00

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

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

families for licensed childcare centers and licensed family-childcare 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 licensed family-

childcare providers and license-exempt providers and then the rates for all providers for all age

groups shall be increased by three percent (3%). For the fiscal year ending June 30, 2018,

licensed childcare centers shall be reimbursed a maximum weekly rate of one hundred ninety-

three dollars and sixty-four cents ($193.64) for infant/toddler care and one hundred sixty-one

dollars and seventy-one cents ($161.71) for preschool-age children.

     (b)(c) Effective July l, 2018, subject to the payment limitations in subsection (c), the

maximum infant/toddler and preschool-age reimbursement rates to be paid by the departments of

human services and children, youth and families for licensed childcare centers shall be

implemented in a tiered manner, reflective of the quality rating the provider has achieved within

the state's quality rating system outlined in § 42-12-23.1.

     (1) For infant/toddler childcare, tier one shall be reimbursed two and one-half percent

(2.5%) above the FY 2018 weekly amount, tier two shall be reimbursed five percent (5%) above

the FY 2018 weekly amount, tier three shall be reimbursed thirteen percent (13%) above the FY

2018 weekly amount, tier four shall be reimbursed twenty percent (20%) above the FY 2018

weekly amount, and tier five shall be reimbursed thirty-three percent (33%) above the FY 2018

weekly amount.

     (2) For preschool reimbursement rates, tier one shall be reimbursed two and one-half

(2.5%) percent above the FY 2018 weekly amount, tier two shall be reimbursed five percent (5%)

above the FY 2018 weekly amount, tier three shall be reimbursed ten percent (10%) above the FY

2018 weekly amount, tier four shall be reimbursed thirteen percent (13%) above the FY 2018

weekly amount, and tier five shall be reimbursed twenty-one percent (21%) above the FY 2018

weekly amount. Effective July 1, 2019, the preschool reimbursement rates for tier three shall be

reimbursed thirteen percent (13%) above the FY 2018 weekly amount, tier four shall be

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reimbursed twenty percent (20%) above the FY 2018 weekly amount, and tier five shall be

reimbursed forty-three percent (43%) above the FY 2018 weekly amount.

     (3) For school-age reimbursement rates, tier one shall be reimbursed two and one-half

percent (2.5%) above the FY 2018 weekly amount, tier two shall be reimbursed five percent (5%)

above the FY 2018 weekly amount, tier three shall be reimbursed thirteen percent (13%) above

the FY 2018 weekly amount, tier four shall be reimbursed twenty percent (20%) above the FY

2018 weekly amount, and tier five shall be reimbursed thirty-six percent (36%) above the FY

2018 weekly amount.

     (c) The departments shall pay childcare 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 childcare customers with respect to each of the rate categories, infant, preschool

and school-age.

     (d) By June 30, 2004, and biennially 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 childcare 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.

     (e) In order to expand the accessibility and availability of quality childcare, the

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

rates of reimbursement for quality enhancements, innovative or specialized childcare and

alternative methodologies of childcare delivery, including non-traditional delivery systems and

collaborations.

     (f) Effective January 1, 2007, all childcare 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. This act shall take effect upon passage.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

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

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     This act would expand the tiered-rate structure for the childcare assistance program to

meet the federal benchmark for access to high-quality childcare for all age groups of children,

with higher rates paid to licensed child care centers that have achieved higher quality ratings in

"BrightStars", the state's quality rating and improvement system. A requirement that childcare

providers must raise tuition rates for all other public or private paying families in order to receive

higher state rates is removed.

     This act would take effect upon passage.

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