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ARTICLE 10 SUBSTITUTE A

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RELATING TO HUMAN SERVICES -- CHILD CARE STATE SUBSIDIES

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     SECTION 1. Sections 40-6.2-1.1 and 40-6.2-4 of the General Laws in Chapter 40-6.2

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entitled “Child Care- State Subsidies” are hereby amended to read as follows:

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     40-6.2-1.1. Rates Established. - - (a) Subject to the payment limitations in section (b),

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the maximum reimbursement rates to be paid by the Departments of Human Services and

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Children, Youth and Families for licensed child care centers and certified family-child care

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providers shall be based on the following schedule of the 75th percentile of weekly market rates:

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     LICENSED    75th  PERCENTILE        

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     CHILD CARE    OF WEEKLY  

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     CENTERS     MARKET   RATE  

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     INFANT      $182.00

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     PRESCHOOL     $150.00

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     SCHOOL-AGE   $135.00

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     CERTIFIED    75th         

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     FAMILY PERCENTILE  

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     CHILD CARE  OF WEEKLY  

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     PROVIDERS     MARKET  RATE   

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     INFANT      $150.00

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     PRESCHOOL    $150.00

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     SCHOOL-AGE  $135.00

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

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

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

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school-age.

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      (c) By June 30, 2004 and biennially thereafter, the Department of Labor and Training

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shall conduct an independent survey or certify an independent survey of the then current weekly

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market rates for child care in Rhode Island and shall forward such weekly market rate survey to

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the Department of Human Services. The Departments of Human Services and Labor and Training

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

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

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

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biennially thereafter; provided, however, that the weekly market rates in the table in subsection

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(a) shall be adjusted by the 2004 market rate survey beginning July 1, 2006. For the purposes of

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

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market rate shall mean the 2002 Department of Human Services Child Care Market Survey.

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      (d) The department of human services is authorized and directed to establish rates of

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reimbursement for appropriate child care provided to children older than twelve (12) years of age,

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so as to implement the provisions of § 40- 5.1-17(b).

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

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

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

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

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collaborations.

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     40-6.2-4.  Health care coverage for family day care providers. – (a) The department of

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human services is authorized and directed to provide health care through its RIte Care or RIte

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Share programs to family day care providers who provide child care services paid for by the

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department and who meet the eligibility requirements of this section.

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     (b) A family day care provider shall be eligible if:

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     (1) The provider is certified as a family day care provider by the department of children,

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youth, and families pursuant to chapter 72.1 of title 42, and has applied for and has been found

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ineligible for the federally assisted RIte Care or RIte Share programs; and

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     (2) The provider has rendered a minimum of one thousand eight hundred dollars

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($1,800) seven thousand eight hundred dollars ($7,800) in child care services, payable by the

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department through any of its child care programs, during a period of six (6) consecutive months

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prior to making application to the department for health care coverage. and

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     (3) The provider’s total family annualized income does not exceed 350% of the federal

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poverty level.

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        (c) Upon determination of eligibility by the department, the department shall enroll the

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provider and the provider’s minor children, who are living with the provider’s household, in the

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RIte Care or the RIte Share program, as determined by the department, for the following six (6)

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months, and the enrolled provider and qualifying children shall be subject to the terms,

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conditions, limitations, and restrictions, cost-sharing, and dental benefit provisions of the RIte

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Care or the RIte Share programs.

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     SECTION 2. This article shall take effect on July 1, 2005.