2016 -- S 2574

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LC005151

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2016

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A N   A C T

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

     

     Introduced By: Senators Crowley, Goldin, Sosnowski, and Nesselbush

     Date Introduced: February 25, 2016

     Referred To: Senate Finance

     It is enacted by the General Assembly as follows:

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

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

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

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

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

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

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2002 weekly market rates adjusted for the average of the 75th percentile of the 2002 and the 2004

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weekly market rates:

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LICENSED CHILD CARE 75th PERCENTILE OF

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CENTERS WEEKLY 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 FAMILY CHILD 75th- PERCENTILE OF

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

 

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

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

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

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

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

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child care providers and license-exempt providers and then the rates for all providers for all age

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groups shall be increased by three percent (3%).

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     Effective July 1, 2016, the departments of human services and children, youth and

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families shall pay enhanced reimbursement rates for infants and toddlers enrolled in licensed

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child care centers and family child care homes that have achieved a quality rating of two (2),

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three (3), four (4), or five (5) stars in Bright Stars, the state's quality rating and improvement

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system. The rates shall be based on the 2015 weekly market rate survey at the following levels:

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     Two stars 55th Percentile

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     Three stars 65th Percentile

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     Four stars 75th Percentile

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     Five stars 75th Percentile.

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     The departments shall pay these enhanced quality reimbursement rates without

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consideration for subsection (b) of this section which would require providers to increase their

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rates for other customers in order to capture the enhanced state rate.

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

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

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and school-age.

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

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

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

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survey to the department of human services. The next survey shall be conducted by June 30,

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2016, and triennially thereafter. The departments of human services and labor and training will

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

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categories.

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

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

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reimbursement payments.

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     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 enhance the reimbursement rates paid by the departments of human

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services and children, youth and families for infants and toddlers enrolled in licensed child care

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centers and family child care homes that have achieved a quality rating of 2 to 5 stars in Bright

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Stars, the state's quality rating system.

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     This act would take effect upon passage.

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