2019 -- H 5106

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LC000541

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2019

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A N   A C T

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

     

     Introduced By: Representatives Diaz, Donovan, Casimiro, Slater, and Ackerman

     Date Introduced: January 10, 2019

     Referred To: House 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.

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     (a) In order to provide families and children with access to high-quality childcare and to

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promote and support quality improvement of childcare programs, payment rates for the Rhode

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Island Child Care Assistance Program shall be tiered and shall meet or exceed the federal

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benchmark for access to high-quality childcare, with rates for programs that have achieved high-

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quality ratings in the state's quality rating system outlined in § 42-12-23.1 set at or above the 75th

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percentile of the most recent market rate survey.

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     (a)(b) Through June 30, 2015, subject to the payment limitations in subsection (c), the

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

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youth and families for licensed childcare centers and licensed family-childcare providers shall be

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based on the following schedule of the 75th percentile of the 2002 weekly market rates adjusted

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

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LICENSED CHILDCARE CENTERS 75th PERCENTILE OF WEEKLY

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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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LICENSED FAMILY CHILDCARE 75th PERCENTILE 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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     Effective July 1, 2015, subject to the payment limitations in subsection (c), 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 childcare centers and licensed family-childcare 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 licensed family-

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childcare 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%). For the fiscal year ending June 30, 2018,

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licensed childcare centers shall be reimbursed a maximum weekly rate of one hundred ninety-

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three dollars and sixty-four cents ($193.64) for infant/toddler care and one hundred sixty-one

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dollars and seventy-one cents ($161.71) for preschool-age children.

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     (b)(c) Effective July l, 2018, subject to the payment limitations in subsection (c), the

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maximum infant/toddler and preschool-age reimbursement rates to be paid by the departments of

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human services and children, youth and families for licensed childcare centers shall be

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implemented in a tiered manner, reflective of the quality rating the provider has achieved within

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the state's quality rating system outlined in § 42-12-23.1.

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     (1) For infant/toddler childcare, tier one shall be reimbursed two and one-half percent

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(2.5%) above the FY 2018 weekly amount, tier two shall be reimbursed five percent (5%) above

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the FY 2018 weekly amount, tier three shall be reimbursed thirteen percent (13%) above the FY

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2018 weekly amount, tier four shall be reimbursed twenty percent (20%) above the FY 2018

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weekly amount, and tier five shall be reimbursed thirty-three percent (33%) above the FY 2018

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weekly amount.

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     (2) For preschool reimbursement rates, tier one shall be reimbursed two and one-half

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(2.5%) percent above the FY 2018 weekly amount, tier two shall be reimbursed five percent (5%)

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above the FY 2018 weekly amount, tier three shall be reimbursed ten percent (10%) above the FY

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2018 weekly amount, tier four shall be reimbursed thirteen percent (13%) above the FY 2018

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weekly amount, and tier five shall be reimbursed twenty-one percent (21%) above the FY 2018

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weekly amount. Effective July 1, 2019, the preschool reimbursement rates for tier three shall be

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reimbursed thirteen percent (13%) above the FY 2018 weekly amount, tier four shall be

 

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reimbursed twenty percent (20%) above the FY 2018 weekly amount, and tier five shall be

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reimbursed forty-three percent (43%) above the FY 2018 weekly amount.

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     (3) For school-age reimbursement rates, tier one shall be reimbursed two and one-half

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percent (2.5%) above the FY 2018 weekly amount, tier two shall be reimbursed five percent (5%)

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above the FY 2018 weekly amount, tier three shall be reimbursed thirteen percent (13%) above

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the FY 2018 weekly amount, tier four shall be reimbursed twenty percent (20%) above the FY

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2018 weekly amount, and tier five shall be reimbursed thirty-six percent (36%) above the FY

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2018 weekly amount.

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     (c) The departments shall pay childcare 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 childcare customers with respect to each of the rate categories, infant, preschool

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and school-age.

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     (d) 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 childcare 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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     (e) In order to expand the accessibility and availability of quality childcare, 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 childcare and

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alternative methodologies of childcare delivery, including non-traditional delivery systems and

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collaborations.

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     (f) Effective January 1, 2007, all childcare providers have the option to be paid every two

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(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 expand the tiered-rate structure for the childcare assistance program to

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meet the federal benchmark for access to high-quality childcare for all age groups of children,

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with higher rates paid to licensed child care centers that have achieved higher quality ratings in

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"BrightStars", the state's quality rating and improvement system. A requirement that childcare

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providers must raise tuition rates for all other public or private paying families in order to receive

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higher state rates is removed.

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     This act would take effect upon passage.

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