2020 -- H 7584

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LC004373

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2020

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A N   A C T

RELATING TO HUMAN SERVICES -- CHILD CARE - STATE SUBSIDIES

     

     Introduced By: Representatives Diaz, Caldwell, Slater, Casimiro, and Blazejewski

     Date Introduced: February 13, 2020

     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) 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) 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.

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     (c) [Deleted by P.L. 2019, ch. 88, art. 13, § 4].

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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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     (g) Findings. The general assembly finds that:

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     (1) Working parents struggle to afford the cost of high-quality child care that promotes

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the learning and development of young children before they enter kindergarten as well as high-

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quality after school and summer programs for school-age children. According to data collected in

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the 2018 Rhode Island Child Care Market Rate Survey, the average cost for full-time child care

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for an infant in a child care center exceeds the in-state tuition for both Rhode Island College and

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the University of Rhode Island.

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     (2) Young children need access to consistent nurturing care and high-quality early

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learning opportunities starting in infancy and continuing through early childhood in order to

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develop to their full potential. Children from low-income families often enter school behind their

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more affluent peers. As of January 2019, only eight percent (8%) of infants and toddlers and

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twelve percent (12%) of preschoolers in the Child Care Assistance Program were enrolled in a

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high-quality program at tier (4) or tier (5) in the state's Quality Rating and Improvement System.

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     (3) School-age children also need access to nurturing care and enriching learning

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opportunities after school and during the summer months to maintain and strengthen academic

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skills, develop friendships, practice positive social skills, and explore their interests. As of

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January 2019, only nine percent (9%) of tier (4) or tier (5) in the state's Quality Rating and

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Improvement System.

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     (4) The rates the state pays child care programs to serve eligible children in the Child

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Care Assistance Program affects the quality of the entire program for all children enrolled. It is

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the intention of the general assembly that rates shall meet or exceed the federal standards for

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equal access to child care and support quality improvement.

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     (h) Effective July 1, 2020, the 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 family child

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care homes shall be tiered to promote quality improvement in the state's Quality Rating and

 

LC004373 - Page 3 of 5

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Improvement System and shall meet or exceed the federal child care equal access provision

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established in the bi-partisan Child Care an Development Block Grant enacted in 2014. Rates for

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tier (1) providers shall meet or exceed the 25th percentile and rates for tier (5) providers shall

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meet or exceed the 75th percentile of the most recent market rate survey. Rates for providers at

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tiers (2), (3), and (4) shall incrementally increase between the tier (1) and tier (5) rates:

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     (i) Effective July 1, 2020, the minimum rates paid by the departments of human services

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and children, youth and families for licensed child care centers shall be:

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     Age Category Tier 1 Tier 2 Tier 3 Tier 4 Tier 5

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     Infant/Toddler $222.38 $226.83 $240.17 $249.07 $257.54

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     Preschool $187.50 $191.25 $210.00 $221.25 $230.00

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     School-Age $148.50 $151.47 $170.78 $185.63 $198.75

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     (g)(j) Effective July 1, 2019, the maximum infant/toddler reimbursement rates to be paid

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by the departments of human services and children, youth and families for licensed family

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childcare providers shall be implemented in a tiered manner, reflective of the quality rating the

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provider has achieved within the state's quality rating system outlined in § 42-12-23.1. Tier one

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shall be reimbursed two percent (2%) above the prevailing base rate for step 1 and step 2

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providers, three percent (3%) above prevailing base rate for step 3 providers, and four percent

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(4%) above the prevailing base rate for step 4 providers; tier two shall be reimbursed five percent

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(5%) above the prevailing base rate; tier three shall be reimbursed eleven percent (11%) above

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the prevailing base rate; tier four shall be reimbursed fourteen percent (14%) above the prevailing

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base rate; and tier five shall be reimbursed twenty-three percent (23%) above the prevailing base

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rate.

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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 create the reimbursement rates to be paid by the department of human

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services and the department of children, youth and families for licensed child care centers and

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family child care homes which would be tiered to promote quality improvements in child care.

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     This act would take effect upon passage.

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