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  PERCENTILE            

CHILD CARE                               OF WEEKLY                    

CENTERS                                    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 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.

(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 2006 market rate survey beginning July 1, 20078.  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 § 40-5.1-17(b).

(e) (d) 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)(e) 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.

(g)(f) 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 article shall take effect as of July 1, 2007