Rhode Island 2025 Regular Session

Rhode Island House Bill H5281 Compare Versions

Only one version of the bill is available at this time.

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5	5	2025 -- H 5281
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7	7	LC000894
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9	9	S T A T E O F R H O D E I S L A N D
10	10	IN GENERAL ASSEMBLY
11	11	JANUARY SESSION, A.D. 2025
12	12	____________
13	13
14	14	A N A C T
15	15	RELATING TO HUMAN SERVICES -- RHODE ISLAND CHILDCARE IS ESSENTIAL ACT
16	16	Introduced By: Representatives Diaz, Shallcross Smith, Donovan, Caldwell, Slater,
17	17	Edwards, Casimiro, Tanzi, Potter, and Kislak
18	18	Date Introduced: January 31, 2025
19	19	Referred To: House Finance
20	20
21	21
22	22	It is enacted by the General Assembly as follows:
23	23	SECTION 1. Legislative findings. 1
24	24	The general assembly finds that: 2
25	25	(1) Access to affordable, high-quality childcare is essential to support labor force 3
26	26	participation of parents with children from infancy through age twelve (12) years and to maximize 4
27	27	the economic productivity of the state. 5
28	28	(2) Access to affordable, high-quality childcare is essential for all parents to achieve 6
29	29	economic security and independence, particularly for mothers who often have lower lifetime 7
30	30	earnings because they earn lower wages, work reduced hours, and take longer breaks from work in 8
31	31	order to care for children. 9
32	32	(3) High-quality childcare programs, staffed by qualified and effective educators, are 10
33	33	essential for children to promote healthy development and optimize learning during early childhood 11
34	34	and school-age years. 12
35	35	(4) A landmark report by the Institute of Medicine and National Research Council found 13
36	36	that children begin learning at birth and the adults that provide for the care and education of children 14
37	37	bear a great responsibility for their health, development, and learning -- setting the critical 15
38	38	foundation for lifelong progress. The report recommends that states work to increase the 16
39	39	qualifications and compensation of childcare educators, including those who care for infants and 17
40	40	toddlers. 18
41	41	(5) Childcare educators are among the lowest paid workers in Rhode Island. In 2023, the 19
42	42
43	43
44	44	LC000894 - Page 2 of 13
45	45	median wage of a childcare educator in Rhode Island was sixteen dollars and ninety-one cents 1
46	46	($16.91) per hour. 2
47	47	(6) The U.S. Department of Health and Human Services provides significant funding to 3
48	48	Rhode Island through the Child Care and Development Block Grant and has established clear 4
49	49	guidelines for setting rates that provide low-income families with "equal access" to the childcare 5
50	50	market as required under federal law. The "equal access" guideline is to pay rates equal to or above 6
51	51	the seventy-fifth percentile of a recent market rate survey. 7
52	52	(7) The Rhode Island Governor’s Workforce Board recommends that Rhode Island pay 8
53	53	child care rates that meet or exceed the equal access standard as a first step to support program 9
54	54	quality and to improved wages and retention of child care educators. As of 2024, there were 10
55	55	seventeen (17) states that met or exceeded the equal access standard, including New York and 11
56	56	Vermont. Rhode Island’s base rate for infant care in a licensed child care center was at the 5th 12
57	57	percentile of the 2024 market rate survey, well below the 75th percentile equal access standard. 13
58	58	(8) The U.S. Department of Health and Human Services has also established a clear 14
59	59	guideline for determining whether childcare is affordable. Currently, the federal guideline for 15
60	60	affordability is that families should pay no more than seven percent (7%) of family income for 16
61	61	childcare. Using that guideline, almost all families with young children in the State of Rhode Island 17
62	62	need a subsidy to afford the cost of high-quality childcare staffed by qualified, effective, and fairly-18
63	63	compensated educators. 19
64	64	(9) The Federal Child Care and Development Block Grant focuses on helping lower income 20
65	65	families access child care, limiting the use of federal funds to families with incomes at or below 21
66	66	eighty-five percent (85%) of the state median income ($106,529) for a family of four in Rhode 22
67	67	Island in Federal Fiscal Year 2025), and allows states to waive this limit for children who are 23
68	68	members of a protected population such as children in foster care. As of 2024, there were sixteen 24
69	69	(16) states that set family income eligibility limits at or above eight-five percent (85%) of state 25
70	70	median income, including Maine, New Hampshire, New York and Vermont. 26
71	71	SECTION 2. Title 40 of the General Laws entitled "HUMAN SERVICES" is hereby 27
72	72	amended by adding thereto the following chapter: 28
73	73	CHAPTER 6.7 29
74	74	RHODE ISLAND CHILDCARE IS ESSENTIAL ACT 30
75	75	40-6.7-1. Childcare assistance - Families or assistance units eligible. 31
76	76	(a) The department of human services shall provide appropriate childcare to every 32
77	77	participant who is eligible for cash assistance and who requires childcare in order to meet the work 33
78	78	requirements in accordance with this chapter. 34
79	79
80	80
81	81	LC000894 - Page 3 of 13
82	82	(b) Low-income childcare. The department shall provide childcare to all other families with 1
83	83	incomes at or below eighty-five percent (85%) of the state median income, the low-income family 2
84	84	eligibility benchmark in the federal Childcare and Development Block Grant if, and to the extent, 3
85	85	these other families require childcare in order to work at paid employment and/or to participate in 4
86	86	training, apprenticeship, internship, on-the-job training, work experience, work immersion, or other 5
87	87	job-readiness/job- attachment programs sponsored or funded by the human resource investment 6
88	88	council (governor's workforce board) or state agencies that are part of the coordinated program 7
89	89	system pursuant to § 42-102-11. The department shall also provide childcare assistance to families 8
90	90	with incomes below eighty-five percent (85%) of the state median income when such assistance is 9
91	91	necessary for a member of these families to enroll or maintain enrollment in a Rhode Island public 10
92	92	institution of higher education. 11
93	93	(c) No family/assistance unit shall be eligible for childcare assistance under this chapter if 12
94	94	the combined value of its liquid resources exceeds one million dollars ($1,000,000), which 13
95	95	corresponds to the amount permitted by the federal government under the state plan and set forth 14
96	96	in the administrative rulemaking process by the department. As used in this section "liquid 15
97	97	resources" means any interest(s) in property in the form of cash or other financial instruments or 16
98	98	accounts that are readily convertible to cash or cash equivalents. These resources include, but are 17
99	99	not limited to: cash, bank, credit union, or other financial institution savings, checking, and money 18
100	100	market accounts; certificates of deposit or other time deposits; stocks; bonds; mutual funds; and 19
101	101	other similar financial instruments or accounts. These resources do not include educational savings 20
102	102	accounts, plans, or programs; retirement accounts, plans, or programs; or accounts held jointly with 21
103	103	another adult, not including a spouse. The department is authorized to promulgate rules and 22
104	104	regulations to determine the ownership and source of the funds in the joint account. 23
105	105	(d) The parent or caretaker relative of any family applying for childcare assistance may 24
106	106	voluntarily access the state’s office of child support services for assistance in locating the non-25
107	107	custodial parent, establishing parentage, establishing a child support and/or medical order, and 26
108	108	enforcement of the order, but this shall not be a requirement to qualify for or access childcare 27
109	109	assistance. 28
110	110	(e) For purposes of this section, "appropriate childcare" means childcare, including infant, 29
111	111	toddler, preschool, nursery school, and school age, that is provided by a person or organization 30
112	112	qualified, approved, and authorized to provide the care by the state agency or agencies designated 31
113	113	to make the determinations in accordance with the provisions set forth in this section. 32
114	114	(f)(1) Families with incomes at or below one hundred percent (100%) of the applicable 33
115	115	federal poverty level guidelines shall be provided with free childcare. Families with incomes 34
116	116
117	117
118	118	LC000894 - Page 4 of 13
119	119	greater than one hundred percent (100%) of the applicable federal poverty guideline shall be 1
120	120	required to pay for some portion of the childcare they receive, according to a sliding-fee scale 2
121	121	adopted by the department in the department's rules, not to exceed seven percent (7%) of income 3
122	122	as defined in subsection (h) of this section. 4
123	123	(2) Families who are receiving childcare assistance and who become ineligible for 5
124	124	childcare assistance as a result of their incomes exceeding eighty-five percent (85%) of state 6
125	125	median income shall continue to be eligible for childcare assistance until their incomes exceeds 7
126	126	one hundred percent (100%) of the state median income. To be eligible, the families must continue 8
127	127	to pay for some portion of the childcare they receive, as indicated in a sliding-fee scale adopted in 9
128	128	the department's rules, not to exceed seven percent (7%) of income as defined in subsection (h) of 10
129	129	this section, and in accordance with other eligibility standards. 11
130	130	(g) In determining the type of childcare to be provided to a family, the department shall 12
131	131	take into account the cost of available childcare options, the suitability of the type of care available 13
132	132	for the child; and the parent's preference as to the type of childcare. 14
133	133	(h) For purposes of this section, “income” for families receiving cash assistance under §§ 15
134	134	40-5.2-10(g)(2) and 40-5.2-10(g)(3), and income for other families shall mean gross, earned, and 16
135	135	unearned income as determined by departmental regulations. 17
136	136	(i) The caseload estimating conference established by chapter 17 of title 35 shall forecast 18
137	137	the expenditures for childcare in accordance with the provisions of § 35-17-1. 19
138	138	(j) In determining eligibility for childcare assistance for children of members of reserve 20
139	139	components called to active duty during a time of conflict, the department shall freeze the family 21
140	140	composition and the family income of the reserve component member as it was in the month prior 22
141	141	to the month of leaving for active duty. This freeze shall continue until the individual is officially 23
142	142	discharged from active duty. 24
143	143	40-6.7-2. Childcare assistance - Rates established. 25
144	144	(a) Effective July 1, 2025, the rates to be paid by the department of human services and the 26
145	145	department of children, youth and families for licensed childcare centers and family childcare 27
146	146	homes shall be updated to reflect findings from the 2024 Rhode Island childcare market rate survey 28
147	147	and shall be implemented in a tiered manner, reflective of the quality rating the provider has 29
148	148	achieved within the state's quality rating system outlined in § 42-12-23.1. All rates shall meet or 30
149	149	exceed the federal equal access benchmark (seventy-fifth percentile of the most recent Rhode Island 31
150	150	childcare market rate survey) and programs that have achieved a high-quality rating shall be paid 32
151	151	rates at or above the ninetieth percentile of the most recent Rhode Island childcare market rate 33
152	152	survey. Weekly rates shall be paid as follows: 34
153	153
154	154
155	155	LC000894 - Page 5 of 13
156	156	LICENSED CHILDCARE CENTERS & FAMILY CHILDCARE HOMES 1
157	157	Tier One Tier Two Tier Three Tier Four Tier Five 2
158	158	Infant/Toddler $356 $363 $371 $378 $385 3
159	159	Preschool $312 $320 $329 $337 $345 4
160	160	School-Age $280 $287 $295 $303 $310 5
161	161	The rates for licensed family childcare providers paid by the department of human services, 6
162	162	and the department of children, youth and families are determined through collective bargaining. 7
163	163	The rates for infant/toddler and preschool age children paid to licensed family childcare providers 8
164	164	by both departments is implemented in a tiered manner that reflects the quality rating the provider 9
165	165	has achieved in accordance with § 42-12-23.1. 10
166	166	(b) Beginning July 1, 2025, childcare providers serving infants under age eighteen (18) 11
167	167	months who are receiving childcare assistance shall be paid an additional infant bonus rate equal 12
168	168	to fifty percent (50%) of the toddler rate by the department of human services and the department 13
169	169	of children, youth, and families to help stabilize and expand access to quality infant care and to 14
170	170	help cover the costs associated with the required staff: child ratio for infants under age eighteen 15
171	171	(18) months. 16
172	172	(c) By June 30, 2027, and triennially thereafter, the department of human services in 17
173	173	consultation with the department of labor and training shall conduct an independent survey or 18
174	174	certify an independent survey of the then-current weekly market rates for childcare in Rhode Island 19
175	175	and shall post the findings from the market rate survey on the department's public website. The 20
176	176	departments of human services and labor and training will jointly determine the survey criteria 21
177	177	including, but not limited to, rate categories and sub-categories. 22
178	178	(d) In order to expand the accessibility and availability of quality childcare, the department 23
179	179	of human services is authorized to establish, by regulation, alternative or incentive rates for quality 24
180	180	enhancements, innovative or specialized childcare, and alternative methodologies of childcare 25
181	181	delivery, including nontraditional delivery systems and collaborations. 26
182	182	(e) All childcare providers have the option to be paid every two (2) weeks and have the 27
183	183	option of automatic direct deposit and/or electronic funds transfer of payments. 28
184	184	(f) Effective July 1, 2025, full-time childcare assistance payment rates cover thirty (30) to 29
185	185	forty-five (45) hours of care per week. Any child needing forty-five (45) to sixty (60) hours of care 30
186	186	per week will be paid at a super full-time rate of at least ten dollars ($10) per hour. No child will 31
187	187	be enrolled in the Childcare Assistance Program for more than sixty (60) hours per week. 32
188	188	(g) Effective January 1, 2026, all childcare assistance payments to childcare providers shall 33
189	189	be paid prospectively, on or before the Friday preceding the beginning of the childcare service 34
190	190
191	191
192	192	LC000894 - Page 6 of 13
193	193	period, based on children’s authorized enrollment. 1
194	194	(h) Effective January 1, 2026 and annually thereafter, the department of human services 2
195	195	shall pay a registration fee for each child enrolled in the childcare assistance program to the 3
196	196	childcare centers where the children are enrolled. The per child registration fee for childcare centers 4
197	197	shall be equivalent to the per child annual registration fees paid to family childcare providers. 5
198	198	SECTION 3. Section 40-5.2-20 of the General Laws in Chapter 40-5.2 entitled "The Rhode 6
199	199	Island Works Program" is hereby repealed. 7
200	200	40-5.2-20. Childcare assistance — Families or assistance units eligible. [Effective 8
201	201	January 1, 2025.] 9
202	202	(a) The department shall provide appropriate child care to every participant who is eligible 10
203	203	for cash assistance and who requires child care in order to meet the work requirements in 11
204	204	accordance with this chapter. 12
205	205	(b) Low-income child care. The department shall provide child care to all other working 13
206	206	families with incomes at or below two hundred sixty-one percent (261%) of the federal poverty 14
207	207	level if, and to the extent, these other families require child care in order to work at paid 15
208	208	employment as defined in the department’s rules and regulations. The department shall also provide 16
209	209	child care to families with incomes below two hundred sixty-one percent (261%) of the federal 17
210	210	poverty level if, and to the extent, these families require child care to participate on a short-term 18
211	211	basis, as defined in the department’s rules and regulations, in training, apprenticeship, internship, 19
212	212	on-the-job training, work experience, work immersion, or other job-readiness/job-attachment 20
213	213	program sponsored or funded by the human resource investment council (governor’s workforce 21
214	214	board) or state agencies that are part of the coordinated program system pursuant to § 42-102-11. 22
215	215	Effective from January 1, 2021, through June 30, 2022, the department shall also provide childcare 23
216	216	assistance to families with incomes below one hundred eighty percent (180%) of the federal poverty 24
217	217	level when such assistance is necessary for a member of these families to enroll or maintain 25
218	218	enrollment in a Rhode Island public institution of higher education provided that eligibility to 26
219	219	receive funding is capped when expenditures reach $200,000 for this provision. Effective July 1, 27
220	220	2022 through December 31, 2024, the department shall also provide childcare assistance to families 28
221	221	with incomes below two hundred percent (200%) of the federal poverty level when such assistance 29
222	222	is necessary for a member of these families to enroll or maintain enrollment in a Rhode Island 30
223	223	public institution of higher education. Effective January 1, 2025, the department shall also provide 31
224	224	childcare assistance to families with incomes below two hundred sixty-one percent (261%) of the 32
225	225	federal poverty level when such assistance is necessary for a member of these families to enroll or 33
226	226	maintain enrollment in a Rhode Island public institution of higher education. 34
227	227
228	228
229	229	LC000894 - Page 7 of 13
230	230	(c) No family/assistance unit shall be eligible for childcare assistance under this chapter if 1
231	231	the combined value of its liquid resources exceeds one million dollars ($1,000,000), which 2
232	232	corresponds to the amount permitted by the federal government under the state plan and set forth 3
233	233	in the administrative rulemaking process by the department. Liquid resources are defined as any 4
234	234	interest(s) in property in the form of cash or other financial instruments or accounts that are readily 5
235	235	convertible to cash or cash equivalents. These include, but are not limited to: cash, bank, credit 6
236	236	union, or other financial institution savings, checking, and money market accounts; certificates of 7
237	237	deposit or other time deposits; stocks; bonds; mutual funds; and other similar financial instruments 8
238	238	or accounts. These do not include educational savings accounts, plans, or programs; retirement 9
239	239	accounts, plans, or programs; or accounts held jointly with another adult, not including a spouse. 10
240	240	The department is authorized to promulgate rules and regulations to determine the ownership and 11
241	241	source of the funds in the joint account. 12
242	242	(d) As a condition of eligibility for childcare assistance under this chapter, the parent or 13
243	243	caretaker relative of the family must consent to, and must cooperate with, the department in 14
244	244	establishing paternity, and in establishing and/or enforcing child support and medical support 15
245	245	orders for any children in the family receiving appropriate child care under this section in 16
246	246	accordance with the applicable sections of title 15, as amended, unless the parent or caretaker 17
247	247	relative is found to have good cause for refusing to comply with the requirements of this subsection. 18
248	248	(e) For purposes of this section, “appropriate child care” means child care, including infant, 19
249	249	toddler, preschool, nursery school, and school-age, that is provided by a person or organization 20
250	250	qualified, approved, and authorized to provide the care by the state agency or agencies designated 21
251	251	to make the determinations in accordance with the provisions set forth herein. 22
252	252	(f)(1) Families with incomes below one hundred percent (100%) of the applicable federal 23
253	253	poverty level guidelines shall be provided with free child care. Families with incomes greater than 24
254	254	one hundred percent (100%) and less than two hundred percent (200%) of the applicable federal 25
255	255	poverty guideline shall be required to pay for some portion of the child care they receive, according 26
256	256	to a sliding-fee scale adopted by the department in the department’s rules, not to exceed seven 27
257	257	percent (7%) of income as defined in subsection (h) of this section. 28
258	258	(2) Families who are receiving childcare assistance and who become ineligible for 29
259	259	childcare assistance as a result of their incomes exceeding two hundred sixty-one percent (261%) 30
260	260	of the applicable federal poverty guidelines shall continue to be eligible for childcare assistance 31
261	261	until their incomes exceed three hundred percent (300%) of the applicable federal poverty 32
262	262	guidelines. To be eligible, the families must continue to pay for some portion of the child care they 33
263	263	receive, as indicated in a sliding-fee scale adopted in the department’s rules, not to exceed seven 34
264	264
265	265
266	266	LC000894 - Page 8 of 13
267	267	percent (7%) of income as defined in subsection (h) of this section, and in accordance with all other 1
268	268	eligibility standards. 2
269	269	(g) In determining the type of child care to be provided to a family, the department shall 3
270	270	take into account the cost of available childcare options; the suitability of the type of care available 4
271	271	for the child; and the parent’s preference as to the type of child care. 5
272	272	(h) For purposes of this section, “income” for families receiving cash assistance under § 6
273	273	40-5.2-11 means gross, earned income and unearned income, subject to the income exclusions in 7
274	274	§§ 40-5.2-10(g)(2) and 40-5.2-10(g)(3), and income for other families shall mean gross, earned and 8
275	275	unearned income as determined by departmental regulations. 9
276	276	(i) The caseload estimating conference established by chapter 17 of title 35 shall forecast 10
277	277	the expenditures for child care in accordance with the provisions of § 35-17-1. 11
278	278	(j) In determining eligibility for childcare assistance for children of members of reserve 12
279	279	components called to active duty during a time of conflict, the department shall freeze the family 13
280	280	composition and the family income of the reserve component member as it was in the month prior 14
281	281	to the month of leaving for active duty. This shall continue until the individual is officially 15
282	282	discharged from active duty. 16
283	283	(k) Effective from August 1, 2023, through July 31, 2025, the department shall provide 17
284	284	funding for child care for eligible childcare educators, and childcare staff, who work at least twenty 18
285	285	(20) hours a week in licensed childcare centers and licensed family childcare homes as defined in 19
286	286	the department’s rules and regulations. Eligibility is limited to qualifying childcare educators and 20
287	287	childcare staff with family incomes up to three hundred percent (300%) of the applicable federal 21
288	288	poverty guidelines and will have no copayments. Qualifying participants may select the childcare 22
289	289	center or family childcare home for their children. The department shall promulgate regulations 23
290	290	necessary to implement this section, and will collect applicant and participant data to report 24
291	291	estimated demand for state-funded child care for eligible childcare educators and childcare staff. 25
292	292	The report shall be due to the governor and the general assembly by November 1, 2024. 26
293	293	SECTION 4. Section 40-6.2-1.1 of the General Laws in Chapter 40-6.2 entitled "Child 27
294	294	Care — State Subsidies" is hereby repealed. 28
295	295	40-6.2-1.1. Rates established. 29
296	296	(a) Through June 30, 2015, subject to the payment limitations in subsection (c), the 30
297	297	maximum reimbursement rates to be paid by the departments of human services and children, youth 31
298	298	and families for licensed childcare centers and licensed family childcare providers shall be based 32
299	299	on the following schedule of the 75th percentile of the 2002 weekly market rates adjusted for the 33
300	300	average of the 75th percentile of the 2002 and the 2004 weekly market rates: 34
301	301
302	302
303	303	LC000894 - Page 9 of 13
304	304	Licensed Childcare Centers 75th Percentile of Weekly Market Rate 1
305	305	Infant $182.00 2
306	306	Preschool $150.00 3
307	307	School-Age $135.00 4
308	308	Licensed Family Childcare Providers 75th Percentile of Weekly Market Rate 5
309	309	Infant $150.00 6
310	310	Preschool $150.00 7
311	311	School-Age $135.00 8
312	312	Effective July 1, 2015, subject to the payment limitations in subsection (c), the maximum 9
313	313	reimbursement rates to be paid by the departments of human services and children, youth and 10
314	314	families for licensed childcare centers and licensed family childcare providers shall be based on the 11
315	315	above schedule of the 75th percentile of the 2002 weekly market rates adjusted for the average of 12
316	316	the 75th percentile of the 2002 and the 2004 weekly market rates. These rates shall be increased by 13
317	317	ten dollars ($10.00) per week for infant/toddler care provided by licensed family childcare 14
318	318	providers and license-exempt providers and then the rates for all providers for all age groups shall 15
319	319	be increased by three percent (3%). For the fiscal year ending June 30, 2018, licensed childcare 16
320	320	centers shall be reimbursed a maximum weekly rate of one hundred ninety-three dollars and sixty-17
321	321	four cents ($193.64) for infant/toddler care and one hundred sixty-one dollars and seventy-one 18
322	322	cents ($161.71) for preschool-age children. 19
323	323	(b) Effective July l, 2018, subject to the payment limitations in subsection (c), the 20
324	324	maximum infant/toddler and preschool-age reimbursement rates to be paid by the departments of 21
325	325	human services and children, youth and families for licensed childcare centers shall be 22
326	326	implemented in a tiered manner, reflective of the quality rating the provider has achieved within 23
327	327	the state’s quality rating system outlined in § 42-12-23.1. 24
328	328	(1) For infant/toddler child care, tier one shall be reimbursed two and one-half percent 25
329	329	(2.5%) above the FY 2018 weekly amount, tier two shall be reimbursed five percent (5%) above 26
330	330	the FY 2018 weekly amount, tier three shall be reimbursed thirteen percent (13%) above the FY 27
331	331	2018 weekly amount, tier four shall be reimbursed twenty percent (20%) above the FY 2018 weekly 28
332	332	amount, and tier five shall be reimbursed thirty-three percent (33%) above the FY 2018 weekly 29
333	333	amount. 30
334	334	(2) For preschool reimbursement rates, tier one shall be reimbursed two and one-half 31
335	335	percent (2.5%) above the FY 2018 weekly amount, tier two shall be reimbursed five percent (5%) 32
336	336	above the FY 2018 weekly amount, tier three shall be reimbursed ten percent (10%) above the FY 33
337	337	2018 weekly amount, tier four shall be reimbursed thirteen percent (13%) above the FY 2018 34
338	338
339	339
340	340	LC000894 - Page 10 of 13
341	341	weekly amount, and tier five shall be reimbursed twenty-one percent (21%) above the FY 2018 1
342	342	weekly amount. 2
343	343	(c) [Deleted by P.L. 2019, ch. 88, art. 13, § 4.] 3
344	344	(d) By June 30, 2004, and biennially through June 30, 2014, the department of labor and 4
345	345	training shall conduct an independent survey or certify an independent survey of the then-current 5
346	346	weekly market rates for child care in Rhode Island and shall forward the weekly market rate survey 6
347	347	to the department of human services. The next survey shall be conducted by June 30, 2016, and 7
348	348	triennially thereafter. The departments of human services and labor and training will jointly 8
349	349	determine the survey criteria including, but not limited to, rate categories and sub-categories. 9
350	350	(e) In order to expand the accessibility and availability of quality child care, the department 10
351	351	of human services is authorized to establish, by regulation, alternative or incentive rates of 11
352	352	reimbursement for quality enhancements, innovative or specialized child care, and alternative 12
353	353	methodologies of childcare delivery, including nontraditional delivery systems and collaborations. 13
354	354	(f) Effective January 1, 2007, all childcare providers have the option to be paid every two 14
355	355	(2) weeks and have the option of automatic direct deposit and/or electronic funds transfer of 15
356	356	reimbursement payments. 16
357	357	(g) Effective July 1, 2019, the maximum infant/toddler reimbursement rates to be paid by 17
358	358	the departments of human services and children, youth and families for licensed family childcare 18
359	359	providers shall be implemented in a tiered manner, reflective of the quality rating the provider has 19
360	360	achieved within the state’s quality rating system outlined in § 42-12-23.1. Tier one shall be 20
361	361	reimbursed two percent (2%) above the prevailing base rate for step 1 and step 2 providers, three 21
362	362	percent (3%) above prevailing base rate for step 3 providers, and four percent (4%) above the 22
363	363	prevailing base rate for step 4 providers; tier two shall be reimbursed five percent (5%) above the 23
364	364	prevailing base rate; tier three shall be reimbursed eleven percent (11%) above the prevailing base 24
365	365	rate; tier four shall be reimbursed fourteen percent (14%) above the prevailing base rate; and tier 25
366	366	five shall be reimbursed twenty-three percent (23%) above the prevailing base rate. 26
367	367	(h) Through December 31, 2021, the maximum reimbursement rates paid by the 27
368	368	departments of human services, and children, youth and families to licensed childcare centers shall 28
369	369	be consistent with the enhanced emergency rates provided as of June 1, 2021, as follows: 29
370	370	Tier 1 Tier 2 Tier 3 Tier 4 Tier 5 30
371	371	Infant/Toddler $257.54 $257.54 $257.54 $257.54 $273.00 31
372	372	Preschool Age $195.67 $195.67 $195.67 $195.67 $260.00 32
373	373	School Age $200.00 $200.00 $200.00 $200.00 $245.00 33
374	374	The maximum reimbursement rates paid by the departments of human services, and 34
375	375
376	376
377	377	LC000894 - Page 11 of 13
378	378	children, youth and families to licensed family childcare providers shall be consistent with the 1
379	379	enhanced emergency rates provided as of June 1, 2021, as follows: 2
380	380	Tier 1 Tier 2 Tier 3 Tier 4 Tier 5 3
381	381	Infant/Toddler $224.43 $224.43 $224.43 $224.43 $224.43 4
382	382	Preschool Age $171.45 $171.45 $171.45 $171.45 $171.45 5
383	383	School Age $162.30 $162.30 $162.30 $162.30 $162.30 6
384	384	(i) Effective January 1, 2022, the maximum reimbursement rates to be paid by the 7
385	385	departments of human services and children, youth and families for licensed childcare centers shall 8
386	386	be implemented in a tiered manner, reflective of the quality rating the provider has achieved within 9
387	387	the state’s quality rating system outlined in § 42-12-23.1. Maximum weekly rates shall be 10
388	388	reimbursed as follows: 11
389	389	Licensed Childcare Centers 12
390	390	Tier One Tier Two Tier Three Tier Four Tier Five 13
391	391	Infant/Toddler $236.36 $244.88 $257.15 $268.74 $284.39 14
392	392	Preschool $207.51 $212.27 $218.45 $223.50 $231.39 15
393	393	School-Age $180.38 $182.77 $185.17 $187.57 $189.97 16
394	394	The maximum reimbursement rates for licensed family childcare providers paid by the 17
395	395	departments of human services, and children, youth and families is determined through collective 18
396	396	bargaining. The maximum reimbursement rates for infant/toddler and preschool age children paid 19
397	397	to licensed family childcare providers by both departments is implemented in a tiered manner that 20
398	398	reflects the quality rating the provider has achieved in accordance with § 42-12-23.1. 21
399	399	(j) Effective July 1, 2022, the maximum reimbursement rates to be paid by the departments 22
400	400	of human services and children, youth and families for licensed childcare centers shall be 23
401	401	implemented in a tiered manner, reflective of the quality rating the provider has achieved within 24
402	402	the state’s quality rating system outlined in § 42-12-23.1. Maximum weekly rates shall be 25
403	403	reimbursed as follows: 26
404	404	Licensed Childcare Centers 27
405	405	Tier One Tier Two Tier Three Tier Four Tier Five 28
406	406	Infant/Toddler $265 $270 $282 $289 $300 29
407	407	Preschool $225 $235 $243 $250 $260 30
408	408	School-Age $200 $205 $220 $238 $250 31
409	409	(k) Effective July 1, 2024, the maximum reimbursement rates to be paid by the departments 32
410	410	of human services and children, youth and families for licensed childcare centers shall be 33
411	411	implemented in a tiered manner, reflective of the quality rating the provider has achieved within 34
412	412
413	413
414	414	LC000894 - Page 12 of 13
415	415	the state’s quality rating system outlined in § 42-12-23.1. Maximum weekly rates shall be 1
416	416	reimbursed as follows: 2
417	417	Licensed Childcare Centers 3
418	418	Tier One Tier Two Tier Three Tier Four Tier Five 4
419	419	Infant/Toddler $278 $284 $296 $303 $315 5
420	420	Preschool $236 $247 $255 $263 $273 6
421	421	School-Age $210 $215 $231 $250 $263 7
422	422	SECTION 5. This act shall take effect on July 1, 2025. 8
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424	424	LC000894
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426	426
427	427
428	428	LC000894 - Page 13 of 13
429	429	EXPLANATION
430	430	BY THE LEGISLATIVE COUNCIL
431	431	OF
432	432	A N A C T
433	433	RELATING TO HUMAN SERVICES -- RHODE ISLAND CHILDCARE IS ESSENTIAL ACT
434	434	***
435	435	This act would create the Rhode Island Childcare Assistance Program that governs both 1
436	436	family eligibility for the state’s childcare subsidy program and the rates paid to childcare providers 2
437	437	serving families receiving a subsidy. The act would expand eligibility for the program to meet the 3
438	438	federal eligibility benchmark so that families with incomes at or below eighty-five percent (85%) 4
439	439	of the state median income would be eligible. The act would allow families to continue eligibility 5
440	440	until their income exceeds one hundred percent (100%) of the state median income and would make 6
441	441	participation in the state’s child support enforcement program voluntary for the childcare subsidy. 7
442	442	The act would also increase the tiered rates of paid for licensed childcare centers to meet or exceed 8
443	443	the federal equal access benchmark, implement a new differential bonus rate for infants under age 9
444	444	eighteen (18) months and adopt fair payment practices consistent with the federal rules for the Child 10
445	445	Care and Development Fund. 11
446	446	This act would take effect on July 1, 2025. 12
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448	448	LC000894
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