2021 -- S 0378 SUBSTITUTE A

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LC001976/SUB A/2

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2021

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A N   A C T

RELATING TO HUMAN SERVICES

     Introduced By: Senators Cano, DiMario, Valverde, Mack, McCaffrey, Coyne, Goodwin,
Sosnowski, Quezada, and Murray

     Date Introduced: February 25, 2021

     Referred To: Senate Health & Human Services

     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) 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) 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 child care, 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.

     (c) [Deleted by P.L. 2019, ch. 88, art. 13, § 4.]

     (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 child care in Rhode Island and shall forward the 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.

LC001976/SUB A/2 - Page 2 of 4

     (e) 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 childcare delivery, including nontraditional 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.

     (g) Effective July 1, 2019, the maximum infant/toddler reimbursement rates to be paid by

the departments of human services and children, youth and families for licensed family childcare

providers 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. Tier one shall be

reimbursed two percent (2%) above the prevailing base rate for step 1 and step 2 providers, three

percent (3%) above prevailing base rate for step 3 providers, and four percent (4%) above the

prevailing base rate for step 4 providers; tier two shall be reimbursed five percent (5%) above the

prevailing base rate; tier three shall be reimbursed eleven percent (11%) above the prevailing base

rate; tier four shall be reimbursed fourteen percent (14%) above the prevailing base rate; and tier

five shall be reimbursed twenty-three percent (23%) above the prevailing base rate.

     (h) Through December 31, 2021, the maximum reimbursement rates paid by the

departments of human services, and children, youth and families to licensed childcare centers shall

be consistent with the enhanced emergency rates provided as of June 1, 2021 as follows:

      Tier 1 Tier 2 Tier 3 Tier 4 Tier 5

     Infant/Toddler $257.54 $257.54 $257.54 $257.54 $273.00

     Pre-school Age $195.67 $195.67 $195.67 $195.67 $260.00

     School Age $200.00 $200.00 $200.00 $200.00 $245.00

     The maximum reimbursement rates paid by the departments of human services, and

children, youth and families to licensed family childcare providers shall be consistent with the

enhanced emergency rates provided as of June 1, 2021 as follows:

      Tier 1 Tier 2 Tier 3 Tier 4 Tier 5

     Infant/Toddler $224.43 $224.43 $224.43 $224.43 $224.43

     Pre-school Age $171.45 $171.45 $171.45 $171.45 $171.45

     School Age $162.30 $162.30 $162.30 $162.30 $162.30

     (i) Effective July 1, 2022, the maximum 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

LC001976/SUB A/2 - Page 3 of 4

the state's quality rating system outlined in § 42-12-23.1. Maximum weekly rates shall be

reimbursed as follows:

     LICENSED CHILDCARE

     CENTERS Tier One Tier Two Tier Three Tier Four Tier Five

     Infant/Toddler $236.36 $244.88 $257.15 $268.74 $284.39

     Preschool $207.51 $212.27 $218.45 $223.50 $231.39

     School-Age $180.38 $182.77 $185.17 $187.57 $189.97

     The maximum reimbursement rates for licensed family childcare providers paid by the

departments of human services, and children, youth and families is determined through collective

bargaining. The maximum reimbursement rates for infant/toddler and preschool age children paid

to licensed family childcare providers by both departments is implemented in a tiered manner that

reflects the quality rating the provider has achieved in accordance with § 42-12-23.1.

     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

***

     This act would increase the rates paid to childcare providers by the departments of human

services and children, youth and families based on a tiered system to be consistent with the

enhanced emergency rates provided as of June 1, 2021. This act would also set the maximum

reimbursement rates for licensed family childcare providers paid by the departments as

implemented in a tiered manner that reflects the quality rating the provider has achieved, effective

July 1, 2022.

     This act would take effect upon passage.

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