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art.017/6/017/5
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ARTICLE 17
RELATING TO HUMAN SERVICES -- CHILD CARE--STATE SUBSIDIES

     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) Through June 30, 2015, subject 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 the 2002 weekly market rates adjusted for the average of the 75th percentile of the
2002 and the 2004 weekly market rates:
LICENSED CHILD CARE CENTERS 75th PERCENTILE OF WEEKLY MARKET RATE
INFANT $182.00
PRESCHOOL $150.00
SCHOOL-AGE $135.00
CERTIFIED FAMILY-CHILD CARE 75th PERCENTILE OF WEEKLY MARKET RATE
PROVIDERS
INFANT $150.00
PRESCHOOL $150.00
SCHOOL-AGE $135.00
     Effective July 1, 2015, subject to the payment limitations in subsection (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 above schedule of the 75th percentile of the 2002 weekly market rates adjusted for the average
of the 75th percentile of the 2002 and the 2004 weekly market rates. These rates shall be increased
by ten dollars ($10.00) per week for infant/toddler care provided by certified family-child care
providers and license-exempt providers and then the rates for all providers for all age groups shall
be increased by three percent (3%).
     (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 through June 30, 2014, 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 next survey shall be conducted by
June 30, 2016, and triennially thereafter. 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 for the
purposes of this section, and until adjusted in accordance with this subsection, the 75th percentile
of weekly market rate shall be the average of the 2002 and 2004 weekly market rate surveys.
     (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.
     (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.
     SECTION 2. Section 40-5.2-20 of the General Laws in Chapter 40-5.2 entitled "The
Rhode Island Works Program" is hereby amended to read as follows:
     40-5.2-20. Child care assistance. -- Families or assistance units eligible for childcare
assistance.
      (a) The department shall provide appropriate child care to every participant who is
eligible for cash assistance and who requires child care in order to meet the work requirements in
accordance with this chapter.
      (b) Low-Income child care. - The department shall provide child care to all other
working families with incomes at or below one hundred eighty percent (180%) of the federal
poverty level if, and to the extent, such other families require child care in order to work at paid
employment as defined in the department's rules and regulations. Beginning October 1, 2013, and
until June 30, 2015, subject to available funding, the department shall also provide child care to
families with income below one hundred eighty percent (180%) of the federal poverty level if,
and to the extent, such families require child care to participate on a short-term basis, as defined
in the department's rules and regulations, in training, apprenticeship, internship, on-the-job
training, work experience, work immersion, or other job readiness/job attachment program
sponsored or funded by the human resource investment council (governor's workforce board) or
state agencies that are part of the coordinated program system pursuant to §§ 42-102-9 and 42-
102-11.
      (c) No family/assistance unit shall be eligible for child care assistance under this chapter
if the combined value of its liquid resources exceeds ten thousand dollars ($10,000). Liquid
resources are defined as any interest(s) in property in the form of cash or other financial
instruments or accounts that are readily convertible to cash or cash equivalents. These include,
but are not limited to, cash, bank, credit union, or other financial institution savings, checking,
and money market accounts; certificates of deposit or other time deposits; stocks; bonds; mutual
funds; and other similar financial instruments or accounts. These do not include educational
savings accounts, plans, or programs; retirement accounts, plans, or programs; or accounts held
jointly with another adult, not including a spouse. The department is authorized to promulgate
rules and regulations to determine the ownership and source of the funds in the joint account.
      (d) As a condition of eligibility for child care assistance under this chapter, the parent or
caretaker relative of the family must consent to, and must cooperate with, the department in
establishing paternity, and in establishing and/or enforcing child support and medical support
orders for all children in the family in accordance with title 15, as amended, unless the parent or
caretaker relative is found to have good cause for refusing to comply with the requirements of this
subsection.
      (e) For purposes of this section "appropriate child care" means child care, including
infant, toddler, pre-school, nursery school, school-age, that is provided by a person or
organization qualified, approved, and authorized to provide such care by the department of
children, youth, and families, or by the department of elementary and secondary education, or
such other lawful providers as determined by the department of human services, in cooperation
with the department of children, youth and families and the department of elementary and
secondary education.
      (f) (1) Families with incomes below one hundred percent (100%) of the applicable
federal poverty level guidelines shall be provided with free childcare. Families with incomes
greater than one hundred percent (100%) and less than one hundred eighty (180%) of the
applicable federal poverty guideline shall be required to pay for some portion of the childcare
they receive, according to a sliding-fee scale adopted by the department in the department's rules.
      (2) For a thirty-six (36) month period beginning October 1, 2013, the child care subsidy
transition program shall function within the department of human services. Under this program,
families who are already receiving childcare assistance and who become ineligible for childcare
assistance as a result of their incomes exceeding one hundred eighty percent (180%) of the
applicable federal poverty guidelines shall continue to be eligible for childcare assistance from
October 1, 2013, to September 30, 2016 or until their incomes exceed two hundred twenty-five
percent (225%) of the applicable federal poverty guidelines, whichever occurs first. To be
eligible, such families must continue to pay for some portion of the childcare they receive, as
indicated in a sliding-fee scale adopted in the department's rules and in accordance with all other
eligibility standards.
      (g) In determining the type of childcare to be provided to a family, the department shall
take into account the cost of available childcare options; the suitability of the type of care
available for the child; and the parent's preference as to the type of child care.
      (h) 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
subdivisions 40-5.2-10(g)(2) and 40-5.2-10(g)(3), and income for other families shall mean gross
earned and unearned income as determined by departmental regulations.
      (i) The caseload estimating conference established by chapter 17 of title 35 shall forecast
the expenditures for childcare in accordance with the provisions of § 35-17-1.
      (j) In determining eligibility for child care assistance for children of members of reserve
components called to active duty during a time of conflict, the department 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 shall continue until the individual is officially
discharged from active duty.
     SECTION 3. This article shall take effect upon passage.