2017 -- S 0775

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LC002466

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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: April 12, 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 75th

CHILD CARE PERCENTILE

CENTERS OF WEEKLY

MARKET RATE

INFANT $182.00

PRESCHOOL $150.00

SCHOOL-AGE $135.00

FAMILY PERCENTILE

CHILD CARE OF WEEKLY

PROVIDERS MARKET RATE

INFANT $150.00

PRESCHOOL $150.00

SCHOOL-AGE $135.00

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%).

     (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.

     In order to support equal access to high-quality child care for children enrolled in the

child care assistance program and to recognize that higher quality child care programs need

additional resources to attract and retain effective and qualified staff to meet quality benchmarks

in BrightStars, the state's quality rating and improvement system, the following tiered-rate

structure is hereby established effective July 1, 2017. The reimbursement rates to be paid by the

department of human services and children, youth and families to licensed child care centers and

family child care homes shall incentivize and support quality child care with rates for high-quality

programs meeting national recommendations (at or above the 75th percentile of the 2015 Rhode

Island child care market rate survey). Rates shall be revised when new market rate survey data is

available.

LICENSED CHILD CARE CENTERS

BrightStars Rating

1 star 2 stars 3 stars 4 stars 5 stars

Infant-Toddler $203.32 $213.00 $232.37 $251.73 $271.10

Preschool $169.80 $177.88 $194.05 $210.22 $226.39

School-age $153.57 $160.89 $175.51 $190.14 $204.76

LICENSED FAMILY CHILD CARE HOMES

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BrightStars Rating

1 star 2 stars 3 stars 4 stars 5 stars

Infant-Toddler $178.45 $186.95 $203.94 $220.94 $237.93

Preschool $162.23 $177.88 $194.05 $210.22 $226.39

School-age $153.57 $160.89 $175.51 $190.14 $204.76

     (c)(b) By June 30, 2004 and biennially through June 30, 2014, the 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 triennially and shall forward such

weekly market rate survey to the department of human services. The next survey shall be

conducted by June 30, 2016 June 30, 2018, 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)(c) 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)(d) 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 establish a tiered-rate structure for the child care assistance program, with

higher rates paid to licensed child care centers and family child care homes that have achieved

higher quality ratings in "BrightStars", the state's quality rating and improvement system.

     This act would take effect upon passage.

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