2015 -- H 5543

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LC001650

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2015

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A N   A C T

     RELATING TO HUMAN SERVICES - CHILD CARE - STATE SUBSIDIES

     Introduced By: Representatives Diaz, Slater, Ruggiero, Tanzi, and Maldonado

     Date Introduced: February 25, 2015

     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) 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 75th

     CHILD CARE PERCENTILE

     CENTERS OF WEEKLY

MARKET RATE

     INFANT $182.00

     PRESCHOOL $150.00

     SCHOOL-AGE $135.00

     CERTIFIED 75th

     FAMILY PERCENTILE

     CHILD CARE OF WEEKLY

     PROVIDERS MARKET RATE

     INFANT $150.00

     PRESCHOOL $150.00

     SCHOOL-AGE $135.00

      (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, 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 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.

     (f) On or before October 31, 2015, the department shall develop and submit to the general

assembly for approval a plan for licensed child care centers and family child care providers to

develop a system of tiered reimbursement rates with higher rates being issued to programs

recognized as "higher quality" by the department's quality rating and improvement system.

Provided further, the plan shall include specific programs to support quality improvement and

advancement in the department's quality rating system. Said programs shall include, but not be

limited to, the following:

     (1) Comprehensive workforce development programs to assist licensed child care

providers to pursue high school equivalency diplomas, associate's degrees, bachelor's degrees,

college credits in early child care and education, and any other program the director shall approve

or deem necessary.

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     (g) The director is directed and authorized to promulgate rules and regulations necessary

to carry out the provisions of this section.

     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 require the department of human services to establish and submit to the

general assembly, a reimbursement rate plan based on the quality of the licensed child and family

care centers to be determined by the department's quality and rating system.

     This act would take effect upon passage.

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LC001650

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