2017 -- S 0316

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LC001434

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2017

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A N   A C T

RELATING TO HUMAN SERVICES - CHILD CARE - STATE SUBSIDIES

     Introduced By: Senators Crowley, Goldin, Miller, Metts, and Quezada

     Date Introduced: February 16, 2017

     Referred To: Senate 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) Through June 30, 2015, 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 CHILD CARE CENTERS 75TH PERCENTILE OF WEEKLY MARKET RATE

     INFANT $182.00

     PRESCHOOL $150.00

     SCHOOL-AGE $135.00

CERTIFIED FAMILY CHILD CARE 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 (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 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 certified family-

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

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

     Effective July 1, 2017, the departments of human services and children, youth and

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

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

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

system. Enhanced rates for preschoolers shall be effective July 1, 2018 and enhanced rates for

school-age children shall be effective July 1, 2019 and shall use the same tiered rate

methodology. The rates shall be based on the 2015 weekly market rate survey at the following

levels and shall be updated when future market rate surveys are completed.

     Two stars 55th percentile

     Three stars 65th percentile

     Four stars 75th percentile

     Five stars 80th percentile

     The departments shall pay these enhanced quality reimbursement rates without

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

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

     (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 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 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.

     (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

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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.

     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 phase in enhanced reimbursement rates paid by the departments of human

services and children, youth and families for children in the child care assistance program,

starting with infants and toddlers in licensed child care centers and family child care homes that

have achieved a quality rating of 2 to 5 stars in Bright Stars, the state's quality rating system.

     This act would take effect upon passage.

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LC001434

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