2023 -- H 6122

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LC002112

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2023

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A N   A C T

RELATING TO HUMAN SERVICES -- RHODE ISLAND CHILD CARE FOR ALL ACT

     Introduced By: Representatives Cruz, Boylan, Cotter, Spears, Kislak, Kazarian,
Speakman, Potter, Stewart, and J. Lombardi

     Date Introduced: March 03, 2023

     Referred To: House Finance

     It is enacted by the General Assembly as follows:

     SECTION 1. Title 40 of the General Laws entitled "HUMAN SERVICES" is hereby

amended by adding thereto the following chapter:

CHAPTER 6.7

RHODE ISLAND CHILD CARE FOR ALL ACT

     40-6.7-1. Legislative findings.

     The general assembly finds that:

     (1) High-quality and affordable child care is critical to supporting children and families

throughout Rhode Island and ensuring a functioning labor market and economy in the state.

     (2) Providing universal access to affordable, quality child care will address staffing

shortages across the economy, can reduce state government expenditures in other areas such as

Medicaid and food assistance, and will increase tax revenue as parents of young children are able

to stay in the workforce and earn incomes.

     (3) Child care in the United States is currently a broken market, with the cost of care being

both too expensive to afford for many families who need it, and the wages of child care educators

being too low to attract and retain skilled staff.

     (4) To create a child care system that supports our Rhode Island families, workers, and

economy we must recognize that child care is a public good akin to kindergarten through grade

twelve (K-12) education. This means assisting families to be able to choose sustainable, quality

child care for their children and supporting child care providers, centers, family child care homes,

and child care educators to be able to provide high-quality care.

     (5) According to a September 2021 report from the U.S. Department of the Treasury, one

out of every one hundred ten (110) U.S. workers and one out of every fifty-five (55) working

women works in the early education and child care sector.

     (6) The U.S. Department of Health and Human Services has established clear guidelines

for establishing whether child care is affordable, which state that families should pay no more than

seven percent (7%) of their family income towards child care. Using that standard, most families

with young children in Rhode Island require assistance to afford child care.

     40-6.7-2. The office of early childhood development and learning.

     (a) By April 1, 2024, the executive branch shall produce a report outlining the costs and

staffing requirements to create an office of early childhood development and learning (the “office”)

and describing the transition plan for how responsibilities previously managed by other

departments shall be transferred to the office.

     (b) Effective June 30, 2025, the office of early childhood development and learning is

established within the executive branch of state government, to serve as the principal agency for

managing a statewide early learning system. The office of early childhood development and

learning shall have the following powers and duties in accordance with the following schedule:

     (1) On or about June 30, 2025, to assume functions related to early childcare set forth in

chapter 12 of title 42, to be transferred from the department of human services, including the

administration of the child care assistance program, the quality rating and improvement system for

child care and early learning programs, and child care licensing;

     (2) The Rhode Island head start collaboration office shall be transferred to the office of

early childhood development and learning.

     (3) On or about June 30, 2025, to assume functions related to pre-kindergarten set forth in

chapter 87 of title 16, to be transferred from the department of education;

     (4) On or before December 1, 2025, to provide the general assembly a comprehensive study

of the existing early childhood education infrastructure, a review of roles, functions, and programs

of the office of early childhood development and learning, and a workforce training plan in

collaboration with the department of labor and training and the department of education; and

     (5) To be responsible for the development, sustainability and continuous improvement of

a mixed-delivery system of high-quality, accessible and affordable child care for children from

infancy through age twelve (12) as well as free, high-quality, accessible pre-kindergarten for

children ages three (3) and four (4).

     (c) The department of administration may furnish the office of early childhood

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development and learning with suitable offices and telephone service in the state house, state office

building, or some other convenient location, for the transaction of its business.

     40-6.7-3. Direct support to child care providers program.

      (a) The office of early childhood development and learning shall establish programs of

annual funding to early education and care providers to meet the full range of costs of high quality

early education and care to the extent that fees, whether subsidized or unsubsidized, charged for

the children receiving early education and care services do not meet these costs. This funding shall

be used to address the following priorities:

     (1) Expanding affordability of early education and care to families by reducing the

percentage of early education and care costs that must be covered by fees charged for children

receiving early education and care, whether subsidized or unsubsidized.

     (2) Enabling early education and care providers to provide high-quality early education and

care and to comply fully with all applicable health, safety, educational, quality-assurance, and other

requirements imposed by the office consistent with this chapter to ensure the well-being and

promote healthy development and learning of children.

     (3) Ensuring all early education and care providers are able to attract and retain qualified

and skilled educators for children from birth through kindergarten entry with compensation that is

competitive with similarly qualified kindergarten through grade twelve (K-12) staff by providing

resources through wage supplements or other strategies. Early education and care providers

receiving funding must ensure that the compensation of the educators they employ is in line with

the benchmarks set by the early educator and care provider compensation task force outlined below

in this section.

     (4) Maintaining and increasing the supply of early education and care spaces in ways that

address shortages in available spaces related to: location within the state, child age range, adequate

staffing and supports to achieve best practices for serving children with developmental delays and

disabilities, ability to promote the development of children who are multilingual learners, and

ability to provide care during nonstandard hours.

     (5) Enabling early education and care providers to address emergency situations, during

which the cost of care significantly increases due to additional federal, state, or office requirements,

or the loss of fees due to absence or unenrollment jeopardizes early education and care providers’

ability to retain their facilities and staff.

     (6) Enabling early education and care providers to maintain or increase capacity to provide

direct services and to partner with early intervention programs and local school districts to ensure

children from birth through kindergarten entry who have developmental delays and disabilities

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have access to high-quality services required under the federal Individuals with Disabilities

Education Act. Additional services that early care and education providers shall be supported to

provide enrolled children and their families, can also include social work services, health and

mental health services, and other supports for families, parents, and caregivers.

     (b) The office of early childhood development and learning shall conduct regular cost of

care surveys by which the rates paid to early education and care providers shall be determined. The

rate determination shall be based in part on the recommendations of the early educator and care

provider compensation task force, outlined below in this section, to allow providers to meet the

compensation benchmarks outlined by the task force.

     (c) The office of early childhood development and learning shall require early education

and care providers to meet conditions for receiving funding under this section, including:

     (1) Provide data that the office requires, as needed to carry out the office’s assessment and

reporting requirements under this chapter.

     (2) Have a current Rhode Island child care license.

     (3) Comply with all requirements of the funding and ensure funds are used solely for

eligible activities and costs that advance affordability, access, equity, and quality.

     (d) The office of early childhood development and learning shall determine the amount of

funding to be paid under this section to an early education and care provider and shall take into

account the following factors:

     (1) The provider’s existing enrollment of children, broken down by age range.

     (2) Economies of scale, such that smaller providers may have higher costs in some areas

necessitating proportionately higher funding.

     (3) Any variation in costs to the provider due to location within the state.

     (e) The office of early childhood development and learning shall establish a program of

annual grants to early education and child care providers who may apply for the grants to assist

with special categories of care that present particular challenges to providing at a rate that is

affordable to families. The types of care eligible for these grants may include infant care, care for

children with physical, intellectual, or developmental disabilities, and non-traditional hour care.

     (f) The office of early childhood development and learning shall accord to the early

education and care providers to which the office allocates funding under this section a presumption

of annual renewal if the provider has complied with all requirements and the appropriations for this

section are not reduced such that renewal of all providers is not possible.

     (g) In the event of insufficient funding for all eligible early education and care providers,

the office of early childhood development and learning shall select providers based on the following

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criteria:

     (1) The number of children with physical, developmental, or intellectual disabilities,

children who are homeless, and children who are at risk for involvement with or in the care of the

department of children, youth and families (“DCYF”) currently enrolled with the provider.

     (2) Whether the provider, if funded, would have the capacity and expertise to serve children

with developmental delays or disabilities, or children who are multilingual learners or whose

parents or caregivers have limited English proficiency.

     (3) Whether the provider, if funded, would have the capacity and expertise to serve children

and families with physical, developmental, or intellectual disabilities as defined by statute, children

who are homeless, and children who are at risk for involvement with or in the care of DCYF.

     (4) Whether the provider, if funded, would increase services in locations within the state

that have shortages of spaces for particular age groups, such as infants and toddlers, or that have

overall shortages of early education and care spaces or unmet needs for nonstandard hours of care;

and

     (5) Whether the provider, if funded, would implement a proposed quality improvement

plan or other innovations that increase the quality of its early education and care services.

     (h) The office of early childhood development and learning shall adopt regulations

implementing the provisions of this section, after providing the opportunity for public comment, to

be accepted through both testimony at public hearings and written comments, and after

consideration of these comments.

     40-6.7-4. Child care assistance - family income definitions.

     (a) For purposes of this section, "income" for families receiving cash assistance under §

40-5.2-11 means gross, earned income and unearned income, subject to the income exclusions in

§§ 40-5.2-10(g)(2) and 40-5.2-10(g)(3). Income for families applying for or receiving low-income

child care shall mean gross earned income minus a twenty percent (20%) disregard applied to the

earnings of each adult family member. Earnings of a child under age eighteen (18) years shall not

be counted. Income shall also include unearned income subject to exclusions as determined by

office regulations.

     (b) In determining eligibility for child care assistance for children of members of reserve

components called to active duty during a time of conflict, the office shall freeze the family

composition and the family income of the reserve component member as it was in the month prior

to the month of leaving for active duty. This freeze shall continue until the individual is officially

discharged from active duty.

     40-6.7-5. Elements of expanded assistance program.

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     (a) Families whose income is at or below fifty percent (50%) of the Rhode Island state

median income shall not be charged any copayments for subsidized early education and child care.

Copayments for families who are not eligible for fully subsidized early education and care child

care shall not exceed seven percent (7%) of the family’s total income.

     (b) The early education and care assistance program shall provide funding for child care

assistance to enable all families to afford and access high quality early education and care for

infants, toddlers, preschool-age, and school-age children; provided that, a school-age child’s

assistance shall continue until at least the end of the school year in which the child reaches the

maximum age.

     (c) Funding for childcare assistance may be used for early education and care provided by

entities that are licensed by the State of Rhode Island.

     (d) The office of early childhood development and learning shall allocate funding to

increase the numbers of families receiving assistance in stages, in accordance with the following

income range priorities:

     (1) By June 30, 2026, the office of early childhood development and learning shall allocate

funding to fully subsidize the cost of early education and care services to all families in need of

these services whose income is at or below fifty percent (50%) of the state median income and to

all families who are experiencing homelessness or who are headed by a parent under age twenty

(20).

     (2) By June 30, 2027, the office of early childhood development and learning shall fully

subsidize the cost of early education and care services to all families in need of these services,

whose income is above fifty percent (50%), but not exceeding one hundred percent (100%), of the

Rhode Island state median income, with any family fee set in accordance with subsection (f) of this

section.

     (3) By June 30, 2028, the office of early childhood development and learning shall fully

subsidize the cost of early education and care services to all families in need of these services,

whose income is above one hundred percent (100%), but not exceeding two hundred percent

(200%), of the Rhode Island state median income, with any family fee set in accordance with

subsection (f) of this section.

     (e) Provided that additional funds shall be made available to the state through general

revenue, restricted receipt accounts, or if the federal government shall otherwise obligate itself to

release additional funding not available upon enactment of this chapter, the office shall allocate

funding to increase the numbers of families receiving assistance based on income eligibility in

accordance with the following income range priorities:

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     (1) First priority: to fully subsidize the cost of early education and care services to all

families in need of these services, whose income is at or below three hundred percent (300%) of

the Rhode Island state median income, with any family fee set in accordance with subsection (f) of

this section.

     (2) Second priority: to fully subsidize the cost of early education and care services to all

families in need of these services, whose income is above three hundred percent (300%), but not

exceeding four hundred percent (400%), of the Rhode Island state median income, with any family

fee set in accordance with subsection (f) of this section.

     (3) Third priority: to fully subsidize the cost of early education and care services to all

families in need of these services, whose income is above four hundred percent (400%), but not

exceeding five hundred percent (500%), of the Rhode Island state median income, with any family

fee set in accordance with subsection (f) of this section.

     (4) Fourth priority: to subsidize the cost of early education and care services to all families

in need of these services, whose income is above five hundred percent (500%) of the Rhode Island

state median income, with any family fee set in accordance with subsection (f) of this section.

     (f) Family copayment amounts for all children of a family with children enrolled in

qualifying early education and care services shall be determined in accordance with the family’s

gross income. Copayments may not be determined per each child enrolled in early education and

care services.

     (1) Beginning June 30, 2026, a family receiving subsidized child care from an early

education and care provider with an income greater than fifty percent (50%) of the Rhode Island

state median income shall be required to pay a co-payment as follows:

     A family with a gross household income of Shall pay a Maximum of this % of gross

     this % of the Rhode Island state median income for co-Payment

     income for that family size

     0%-50% 0%

     50%-75% 1%

     75%-100% 2%

     (2) Beginning June 30, 2027, a family receiving subsidized child care from an early

education and care provider with an income greater than fifty percent (50%) of the Rhode Island

state median income shall be required to pay a co-payment as follows:

     A family with a gross household income of Shall pay a Maximum of this % of gross

     this percent (%) of the Rhode Island state income for co-Payment

     median income for that family size

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     0%-50% 0%

     50%-75% 1%

     75%-100% 2%

     100%-125% 3%

     125%-150% 4%

     150%-175% 5%

     175%-200% 6%

     More than 200% 7%

     (g) Family income, for the purposes of eligibility for early education and care assistance

shall include income of parents living with the child receiving subsidized care, but shall not include:

any form of income of legal guardians, foster parents, caregivers, or other adult family members;

income of or for siblings who are not receiving subsidized care; or earned income of any minor

child.

     (h) The office of early childhood development and learning shall subsidize early education

and care by:

     (1) Providing vouchers for payment to providers, enabling families to access early

education and care providers of their choice; and

     (2) Offering families the alternative of an open space with a provider that is subsidized

under the provider’s agreement with the office.

     (i) The office of early childhood development and learning shall require early education

and care providers, as a condition for receiving grants from the office under this section, to enter

into and comply with licensing requirements with the office, developed by the office and requiring

the provider to comply with all applicable requirements of this chapter and any other federal or

state requirements necessary to receive funding for grants provided to families under this section.

     (j) The office of early childhood development and learning and its agents shall not reduce,

terminate, or deny continued assistance to families until and unless the family is determined to be

ineligible and is given the opportunity for an administrative appeal hearing.

     (k) The office of early childhood development and learning shall not terminate or deny

continued assistance on the grounds of ineligibility based on income to families who were receiving

subsidized early education and care as of the effective date of this section, as long as the family’s

income does not exceed two hundred percent (200%) of Rhode Island state median income.

     (l) The office of early childhood development and learning shall not terminate or deny

continued assistance on the grounds of ineligibility based on income to families who began

receiving assistance under this section, as long as the family’s income does not exceed two hundred

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percent (200%) of Rhode Island state median income. The office may create a formula for adjusting

assistance to taper for incomes beyond two hundred percent (200%) of Rhode Island state median

income.

     (m) The office of early childhood development and learning shall review the early

education and care assistance program at least annually to identify access barriers to families,

including, but not limited to, linguistic barriers, office paperwork, and verification requirements,

and shall take action to remove access barriers, including by technological improvements to enable

management of larger numbers of families applying for and receiving assistance and by ongoing

improvement of families’ experiences in dealing with the office and its agents. The office of early

childhood development and learning shall submit an annual report with its findings to the governor

and general assembly.

     (n) The office of early childhood development and learning shall adopt any additional

regulations necessary to implement the provisions of this section, after providing the opportunity

for public comment, to be accepted through both testimony at public hearings and written

comments, and after consideration of these comments.

     40-6.7-6. Establishment of compensation structure needed to attract and retain

quality educators.

     (a) The office shall convene an early educator and care provider compensation task force

to study the issue of compensation structure for provider staff involved in the direct education and

care of children that is commensurate with annual pay scales for equivalent teacher positions in the

public school system, taking into account: job responsibilities; contractual requirements; and the

skills, experience, and credentials of the individual.

     (b) The task force shall recommend compensation guidelines for other provider staff not

involved in the direct education or care of children that are competitive in the labor market for such

staff, enabling providers to maintain stable staffing.

     (c) The task force shall recommend guidelines for the minimum required benefits, and for

recommended additional benefits, for provider staff, including, but not limited, to health insurance,

retirement benefits, paid vacation, and other leave time.

     (d) The office may adopt regulations implementing the recommendations of the task force,

after providing the opportunity for public comment, to be accepted through both testimony at public

hearings and written comments, and after consideration of these comments.

     (e) The office structure and guidelines shall not preclude provider staff from exercising any

rights they may have to collective bargaining about pay and benefits.

     (f) The office shall review the compensation structure and benefits guidelines annually and

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update them, as needed, based on increased cost of living.

     40-6.7-7. Creation of a public child care option pilot program.

     The office of early childhood development and learning may develop innovative child care

programs, options, or approaches that increase access, equity, and affordability for families. This

includes, but is not limited to, developing and operating a public child care option. The office shall

develop a pilot program for a public child care option by June 30, 2027.

     SECTION 2. This act shall take effect January 1, 2024.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO HUMAN SERVICES -- RHODE ISLAND CHILD CARE FOR ALL ACT

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     This act would create the office of early childhood development and learning to provide

access to affordable, quality child care and to create a child care system that supports families,

workers and the Rhode Island economy.

     This act would take effect January 1, 2024.

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