CS/CS/HB 1199 2022 CODING: Words stricken are deletions; words underlined are additions. hb1199-02-c2 Page 1 of 13 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S A bill to be entitled 1 An act relating to funding for the school readiness 2 program; amending s. 1002.89, F.S.; providing for the 3 determination of school readiness program funding for 4 each early learning coalition; providing requirements 5 for such funding calculations; creating s. 1002.90, 6 F.S.; requiring the principals of the Early Learning 7 Programs Estimating Conference to annually develop 8 official cost-of-care information; providing 9 requirements for conference principals; requiring the 10 Division of Early Learning to provide conference 11 principals with specified data; requiring the 12 conference to annually provide the official cost -of-13 care information to the Legislature by a specified 14 date; amending ss. 1002.81 and 1002.82, F.S.; 15 conforming cross-references to changes made by the 16 act; providing an effective date. 17 18 Be It Enacted by the Legislature of the State of Florida: 19 20 Section 1. Section 1002.89, Florida Statutes, is amended 21 to read: 22 1002.89 School readiness program; funding. — 23 (1) DETERMINATION OF EARLY LEARNING COALITION FUNDING FOR 24 THE SCHOOL READINESS PROGRAM. —If the annual allocation for the 25 CS/CS/HB 1199 2022 CODING: Words stricken are deletions; words underlined are additions. hb1199-02-c2 Page 2 of 13 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S school readiness program to each early learning coalition is not 26 determined in the annual appropriations act or the substantive 27 bill implementing the annual appropriations act, it shall be 28 determined as follows: 29 (a) Computation of the basic amount to be included for 30 operation.—The following procedures shall be used in determining 31 the annual allocation to each early learning coalition for 32 operation of the school readiness program: 33 1. Determination of full -time equivalent population .—The 34 department shall annually request from the Office of Economic 35 and Demographic Research the number o f families by each county 36 who have children ages birth to 5 years old whose family income 37 is below 200 percent of the federal poverty level or 85 percent 38 of the state median family income, whichever is available. This 39 data shall be used by the Early Learni ng Programs Estimating 40 Conference pursuant to s. 216.136. 41 2. Determination of care level costs .—Annual cost factors 42 based on the relative cost differences between the following 43 basic care levels shall be established in the General 44 Appropriations Act usin g data submitted from the department 45 under s. 1002.90: 46 a. Infant care. 47 b. Toddler care. 48 c. Two-year-old care. 49 d. Three-year-old care. 50 CS/CS/HB 1199 2022 CODING: Words stricken are deletions; words underlined are additions. hb1199-02-c2 Page 3 of 13 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S e. Four-year-old care. 51 f. Five-year-old care. 52 g. School-age care. 53 54 For Pinellas County, the care level cost for an infant shall be 55 based on the infant care level cost of 1.33, the care level cost 56 for a toddler shall be based on the toddler care level cost of 57 1.20, and the care level cost for a 2 year old shall be based on 58 the 2-year-old care level cost of 1.10. Any county that passes a 59 local ordinance after January 1, 2022, that limits its child 60 care teacher-to-child ratio below the ratio required by s. 61 402.305 shall be responsible for the cost of the child care 62 market impact of that ordinance. 63 3. Determination of county price level index 64 differentials.—The department shall annually compute for each 65 county a current year's price level index differential. The 66 price level index differential shall be calculated by adding 67 each county's price level index as published in the Florida 68 Price Level Index for the most recent 3 years and dividing the 69 resulting sum by 3. 70 4. Determination of the basic amount for current 71 operation.—The basic amount for current operation to be included 72 for funding the school readiness program for each county shall 73 be calculated as follows: 74 a. The cost factor for each care level multiplied by 22 75 CS/CS/HB 1199 2022 CODING: Words stricken are deletions; words underlined are additions. hb1199-02-c2 Page 4 of 13 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S percent. The product derived from this calculation shall result 76 in the unweighted amount by care level. 77 b. The weighted amount by care level shall be derived by 78 multiplying the Florida Price Level Index differential for each 79 county by the amount calculated pursuant to sub -subparagraph a. 80 c. The average weighted amount shall be derived by adding 81 the amounts calculated pursuant to sub -subparagraph b. for care 82 levels infant through 5 years old and dividing the resulting sum 83 by 5. 84 d. Each early learning coalition's allocation shall be 85 derived by multiplying the average weighted amount for each 86 county within the coalition by the percentage of the elig ible 87 school readiness program population established in the General 88 Appropriations Act. 89 (b) Gold seal quality care allocation. —There is created 90 the gold seal quality care allocation. The allocation amount 91 shall be determined annually by the Legislature a nd shall be the 92 amount prescribed in the General Appropriations Act. Each early 93 learning coalition shall be reimbursed based on actual fiscal 94 year expenditures pursuant to s. 1002.945(6). All expenditures 95 from the gold seal quality care allocation shall be used by the 96 Division of Early Learning to help meet federal targeted 97 requirements for improving quality to the extent allowable in 98 the state's approved Child Care and Development Fund Plan. 99 (c) Program assessment differential allocation. —There is 100 CS/CS/HB 1199 2022 CODING: Words stricken are deletions; words underlined are additions. hb1199-02-c2 Page 5 of 13 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S created the program assessment differential allocation. The 101 allocation amount shall be determined annually by the 102 Legislature and shall be the amount prescribed in the General 103 Appropriations Act. Each early learning coalition shall be 104 reimbursed for actual fisca l year expenditures pursuant to s. 105 1002.82(2)(o). All expenditures from the program assessment 106 differential allocation shall be used by the Division of Early 107 Learning to help meet federal targeted requirements for 108 improving quality to the extent allowable in the state's 109 approved Child Care and Development Fund Plan. 110 (d) Child assessment differential allocation. —There is 111 created the child assessment differential allocation. The 112 allocation amount shall be determined annually by the 113 Legislature and shall be the amount prescribed in the General 114 Appropriations Act. Each early learning coalition shall be 115 reimbursed for actual fiscal year expenditures pursuant to s. 116 1002.82(2)(o). All expenditures from the child assessment 117 differential allocation shall be used by the Division of Early 118 Learning to help meet federal targeted requirements for 119 improving quality to the extent allowable in the state's 120 approved Child Care and Development Fund Plan. 121 (e) Special needs differential allocation. —There is 122 created the special needs differential allocation. The 123 allocation amount shall be determined annually by the 124 Legislature and shall be the amount prescribed in the General 125 CS/CS/HB 1199 2022 CODING: Words stricken are deletions; words underlined are additions. hb1199-02-c2 Page 6 of 13 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S Appropriations Act. This allocation shall be used to implement 126 the special needs rate provisions outline d in the state's 127 approved Child Care and Development Fund Plan. Each early 128 learning coalition shall be reimbursed based on actual fiscal 129 year expenditures. All expenditures from the special needs 130 differential allocation shall be used by the Division of Ear ly 131 Learning to help meet federal targeted requirements for 132 improving quality to the extent allowable in the state's 133 approved Child Care and Development Fund Plan Funding for the 134 school readiness program shall be allocated among the early 135 learning coalitions in accordance with this section and the 136 General Appropriations Act . 137 (2) INSTRUCTION REQUIREMENTS. —All instructions to early 138 learning coalitions for administering this section shall emanate 139 from the department in accordance with the policies of the 140 Legislature. 141 (3) All cost savings and all revenues received through a 142 mandatory sliding fee scale shall be used to increase the number 143 of children served. 144 (3)(4) MATCHING FUND REQUIREMENTS. —All state, federal, and 145 local matching funds provided to an early learning coalition for 146 purposes of this section shall be used for implementation of its 147 approved school readiness program plan, including the hiring of 148 staff to effectively operate the school readiness program. 149 (4)(5) COST REQUIREMENTS.—Costs shall be kept to the 150 CS/CS/HB 1199 2022 CODING: Words stricken are deletions; words underlined are additions. hb1199-02-c2 Page 7 of 13 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S minimum necessary for the efficient and effective administration 151 of the school readiness program with the highest priority of 152 expenditure being direct services for eligible children. 153 However, no more than 5 percent of the funds described in 154 subsection (4) may be used for administrative costs and no more 155 than 22 percent of the funds described in subsection (4) may be 156 used in any fiscal year for any combination of administrative 157 costs, quality activities, and nondirect services as follows: 158 (a) Administrative costs as described in 45 C.F.R. s. 159 98.54, which shall include monitoring providers using the 160 standard methodology adopted under s. 1002.82 to improve 161 compliance with state and federal regulations and law pursuant 162 to the requirements of the stat ewide provider contract adopted 163 under s. 1002.82(2)(m). 164 (b) Activities to improve the quality of child care as 165 described in 45 C.F.R. s. 98.53, which shall be limited to the 166 following: 167 1. Developing, establishing, expanding, operating, and 168 coordinating resource and referral programs specifically related 169 to the provision of comprehensive consumer education to parents 170 and the public to promote informed child care choices specified 171 in 45 C.F.R. s. 98.33. 172 2. Awarding grants and providing financial support to 173 school readiness program providers and their staff to assist 174 them in meeting applicable state requirements for the program 175 CS/CS/HB 1199 2022 CODING: Words stricken are deletions; words underlined are additions. hb1199-02-c2 Page 8 of 13 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S assessment required under s. 1002.82(2)(n), child care 176 performance standards, implementing developmentally appropriate 177 curricula and related classroom resources that support 178 curricula, providing literacy supports, and providing continued 179 professional development and training. Any grants awarded 180 pursuant to this subparagraph shall comply with ss. 215.971 and 181 287.058. 182 3. Providing training, technical assistance, and financial 183 support to school readiness program providers, staff, and 184 parents on standards, child screenings, child assessments, child 185 development research and best practices, developmentally 186 appropriate curricula, characte r development, teacher -child 187 interactions, age-appropriate discipline practices, health and 188 safety, nutrition, first aid, cardiopulmonary resuscitation, the 189 recognition of communicable diseases, and child abuse detection, 190 prevention, and reporting. 191 4. Providing, from among the funds provided for the 192 activities described in subparagraphs 1. -3., adequate funding 193 for infants and toddlers as necessary to meet federal 194 requirements related to expenditures for quality activities for 195 infant and toddler care. 196 5. Improving the monitoring of compliance with, and 197 enforcement of, applicable state and local requirements as 198 described in and limited by 45 C.F.R. s. 98.40. 199 6. Responding to Warm -Line requests by providers and 200 CS/CS/HB 1199 2022 CODING: Words stricken are deletions; words underlined are additions. hb1199-02-c2 Page 9 of 13 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S parents, including providing developmental a nd health screenings 201 to school readiness program children. 202 (c) Nondirect services as described in applicable Office 203 of Management and Budget instructions are those services not 204 defined as administrative, direct, or quality services that are 205 required to administer the school readiness program. Such 206 services include, but are not limited to: 207 1. Assisting families to complete the required application 208 and eligibility documentation. 209 2. Determining child and family eligibility. 210 3. Recruiting eligible child care providers. 211 4. Processing and tracking attendance records. 212 5. Developing and maintaining a statewide child care 213 information system. 214 215 As used in this paragraph, the term "nondirect services" does 216 not include payments to school readiness program providers for 217 direct services provided to children who are eligible under s. 218 1002.87, administrative costs as described in paragraph (a), or 219 quality activities as described in paragraph (b). 220 (5)(6) LIMITATION ON THE USE OF PROGRAM FUNDS. —Funds 221 appropriated for the school readiness program may not be 222 expended for the purchase or improvement of land; for the 223 purchase, construction, or permanent improvement of any building 224 or facility; or for the purchase of buses. However, funds may be 225 CS/CS/HB 1199 2022 CODING: Words stricken are deletions; words underlined are additions. hb1199-02-c2 Page 10 of 13 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S expended for minor remodeling and upgrading of child care 226 facilities which is necessary for the administration of the 227 program and to ensure that providers meet state and local child 228 care standards, including applicable health and safety 229 requirements. 230 Section 2. Section 1002.90, Florida Statutes, is created 231 to read: 232 1002.90 School readiness cost -of-care information.—233 Annually, the principals of the Early Learning Programs 234 Estimating Conference established in s. 216.136 shall develop 235 official cost-of-care information based on actual school 236 readiness direct services program expenditures and information 237 provided pursuant to s. 1002.92(4). Conference principals shall 238 agree on the cost of child care by level and care type, the 239 eligible population data, and the met hods of computation. The 240 Division of Early Learning shall provide the conference 241 principals with all requested and necessary data to develop such 242 information. The data may include a matrix by early learning 243 coalition of any full -time equivalent changes mad e by the 244 division as part of its administration of the school readiness 245 program. The Early Learning Programs Estimating Conference shall 246 provide the official cost -of-care information to the Legislature 247 at least 90 days before the scheduled annual legislati ve 248 session. 249 Section 3. Subsection (4) of section 1002.81, Florida 250 CS/CS/HB 1199 2022 CODING: Words stricken are deletions; words underlined are additions. hb1199-02-c2 Page 11 of 13 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S Statutes, is amended to read: 251 1002.81 Definitions. —Consistent with the requirements of 252 45 C.F.R. parts 98 and 99 and as used in this part, the term: 253 (4) "Direct enhancement services" means services for 254 families and children that are in addition to payments for the 255 placement of children in the school readiness program. Direct 256 enhancement services for families and children may include 257 supports for providers, parent training and involvem ent 258 activities, and strategies to meet the needs of unique 259 populations and local eligibility priorities. Direct enhancement 260 services offered by an early learning coalition shall be 261 consistent with the activities prescribed in s. 1002.89(4)(b) s. 262 1002.89(5)(b). 263 Section 4. Paragraph (a) of subsection (7) of section 264 1002.82, Florida Statutes, is amended to read: 265 1002.82 Department of Education; powers and duties. — 266 (7) By January 1 of each year, the department shall 267 annually publish on its website a rep ort of its activities 268 conducted under this section. The report must include a summary 269 of the coalitions' annual reports, a statewide summary, and the 270 following: 271 (a) An analysis of early learning activities throughout 272 the state, including the school readi ness program and the 273 Voluntary Prekindergarten Education Program. 274 1. The total and average number of children served in the 275 CS/CS/HB 1199 2022 CODING: Words stricken are deletions; words underlined are additions. hb1199-02-c2 Page 12 of 13 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S school readiness program, enumerated by age, eligibility 276 priority category, and coalition, and the total number of 277 children served in the Voluntary Prekindergarten Education 278 Program. 279 2. A summary of expenditures by coalition, by fund source, 280 including a breakdown by coalition of the percentage of 281 expenditures for administrative activities, quality activities, 282 nondirect services, an d direct services for children. 283 3. A description of the department's and each coalition's 284 expenditures by fund source for the quality and enhancement 285 activities described in s. 1002.89(4)(b) s. 1002.89(5)(b). 286 4. A summary of annual findings and collect ions related to 287 provider fraud and parent fraud. 288 5. Data regarding the coalitions' delivery of early 289 learning programs. 290 6. The total number of children disenrolled statewide and 291 the reason for disenrollment. 292 7. The total number of providers by provid er type. 293 8. The number of school readiness program providers who 294 have completed the program assessment required under paragraph 295 (2)(n); the number of providers who have not met the minimum 296 program assessment composite score for contracting established 297 under paragraph (2)(n); and the number of providers that have an 298 active improvement plan based on the results of the program 299 assessment under paragraph (2)(n). 300 CS/CS/HB 1199 2022 CODING: Words stricken are deletions; words underlined are additions. hb1199-02-c2 Page 13 of 13 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S 9. The total number of provider contracts revoked and the 301 reasons for revocation. 302 Section 5. This act shall take effect July 1, 2022. 303