Chapter 601

2006 -- H 7423 SUBSTITUTE A

Enacted 07/14/06

A N A C T

RELATING TO CHILD CARE - STATE SUBSIDIES

Introduced By: Representatives Gallison, Rice, Moura, Slater, and Handy

Date Introduced: February 16, 2006

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) 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 weekly market rates:

     LICENSED 75th

     CHILD CARE PERCENTILE

     CENTERS OF WEEKLY

MARKET RATE

     INFANT $182.00

     PRESCHOOL $150.00

     SCHOOL-AGE $135.00

     CERTIFIED 75th

     FAMILY PERCENTILE

     CHILD CARE OF WEEKLY

     PROVIDERS MARKET RATE

     INFANT $150.00

     PRESCHOOL $150.00

     SCHOOL-AGE $135.00

      (b) The department shall pay child care providers based on the lesser of the applicable

rate specified in section (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 thereafter, 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 Departments of Human Services and Labor and Training

will jointly determine the survey criteria including, but not limited to, rate categories and sub-

categories. The 75th percentile of weekly market rates in the table in subsection (a) shall be

adjusted by the surveys conducted under this subsection, beginning January 1, 2006 and

biennially thereafter; provided, however, that the weekly market rates in the table in subsection

(a) shall be adjusted by the 2004 market rate survey beginning July 1, 2006. For the purposes of

this section, and until adjusted in accordance with this subsection, the 75th percentile of weekly

market rate shall mean the 2002 Department of Human Services Child Care Market Survey.

     (d) The department of human services is authorized and directed to establish rates of

reimbursement for appropriate child care provided to children older than twelve (12) years of age,

so as to implement the provisions of section 40-5.1-17(b).

     (e) 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.

(f) On or before January 1, 2007, all child care providers shall 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.

(g) Beginning on September 1, 2006, the department of human services shall report

monthly to the chairpersons of the house and senate finance committees on the implementation of

this subsection.

     SECTION 2. This act shall take effect upon passage.

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LC01462/SUB A

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