SB3612 100TH GENERAL ASSEMBLY

LRB100 21883 KTG 39745 b

100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018
SB3612

Introduced 5/17/2018, by Sen. Iris Y. Martinez

SYNOPSIS AS INTRODUCED:

305 ILCS 5/9A-11

from Ch. 23, par. 9A-11

Amends the Illinois Public Aid Code. In provisions concerning the child care assistance program, requires the Department of Human Services to provide child care services to parents or other relatives who are engaged in a good-faith job search for a period of up to 6 months. Deletes certain provisions regarding eligibility of certain families eligible for child care assistance and factors for determining assistance. Adds language providing that no family shall be excluded from eligibility for child care benefits based solely on household income and that the amount of child care assistance shall (i) take into account the amount families can afford to pay based on the co-payment scale established by the Department and (ii) cover the cost of quality child care. Contains provisions limiting redeterminations to once every 12 months. Removes provisions authorizing the Department to lower income eligibility ceilings, raise parent co-payments, create waiting lists, or take such other actions during a fiscal year as are necessary to ensure that child care benefits paid under the Code do not exceed the amounts appropriated for those child care benefits. Contains provisions requiring the Department to: (1) establish a wage scale sufficient to recruit and retain a skilled and diverse child care workforce; (2) annually publish in draft form its determination of the cost of quality care; (3) adopt policies that maximize the participation of eligible children in Head Start and Early Head Start programs; and (4) submit annual reports to the General Assembly concerning certain matters.

FISCAL NOTE ACT MAY APPLY

A BILL FOR

AN ACT concerning public aid.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 1. Legislative findings.

The General Assembly finds that child care in Illinois is often unaffordable for families, difficult for families to access, and relies on a low-wage workforce.

The average annual cost of child care for an infant in a licensed center is more than the cost of in-state tuition at a 4-year public university. Child care for 2 young children exceeds the average cost of rent in the State. In Illinois, a parent earning minimum wage would have to spend more than 55% of their annual earnings on child care for a 4-year old, and nearly 75% for an infant. Federal rules concerning the Child Care and Development Fund recommend an affordability benchmark of no more than 7% of a family's income be charged as co-payment for child care assistance.

Child care services are not always available when and where they are needed by families. There was a significant shortage of licensed child care capacity in 60% of Illinois ZIP codes as of 2016. Overall, the capacity to serve children ages 0-5 years in licensed centers, license-exempt centers, and licensed family child care homes was not sufficient to serve all children in families below 185% of the federal poverty level in 2015. Many working parents in Illinois work "non-traditional" schedules including nights and weekends. In 2016, almost twice as many families made requests to child care resource and referral agencies for weekend care as was reported by providers.

The child care workforce is highly degreed and credentialed but underpaid. Over 74% of child care teachers in Illinois have completed a college degree, yet their average wage is only $12 per hour. Licensed family child care homes report annual net income of $15,000 per year. The wages of both child care workers and preschool teachers in Illinois declined in real terms over 16 years from 1997-2013. Women make up 97% of this workforce.

Section 5. The Illinois Public Aid Code is amended by changing Section 9A-11 as follows:

(305 ILCS 5/9A-11) (from Ch. 23, par. 9A-11)

Sec. 9A-11. Child care.

(a) The General Assembly recognizes that families with children need child care in order to work, that parental income and economic stability is a key determinant of child outcomes, that an adequately compensated child care workforce is central to the quality of child care that young children receive, and that it is therefore in the State's interest to support parents in accessing child care services that best meet their family's needs. Without assistance, working families often find quality child care to be unaffordable and hard to find, particularly for families with unpredictable work schedules or for those who work non-standard hours. The child care workforce has historically been paid poorly for its vitally important work. The General Assembly declares that child care should be affordable, accessible, and available to all parents including those working all schedules, and should be provided by a workforce that earns a living wage. Child care is expensive and families with low incomes, including those who are transitioning from welfare to work, often struggle to pay the costs of day care. The General Assembly understands the importance of helping low income working families become and remain self-sufficient. The General Assembly also believes that it is the responsibility of families to share in the costs of child care. It is also the preference of the General Assembly that all working poor families should be treated equally, regardless of their welfare status.

(b) The To the extent resources permit, the Illinois Department shall provide child care services to parents or other relatives as defined by rule who are working, engaged in a good-faith job search for a period of up to 6 months, or participating in employment or Department approved education or training programs. At a minimum, the Illinois Department shall cover the following categories of families shall be included: recipients of TANF under Article IV participating in work and training activities as specified in the personal plan for employment and self-sufficiency; families transitioning from TANF to work; families at risk of becoming recipients of TANF; and families with special needs as defined by rule. :

(1) recipients of TANF under Article IV participating in work and training activities as specified in the personal plan for employment and self-sufficiency;

(2) families transitioning from TANF to work;

(3) families at risk of becoming recipients of TANF;

(4) families with special needs as defined by rule;

(5) working families with very low incomes as defined by rule; and

(6) families that are not recipients of TANF and that need child care assistance to participate in education and training activities.

(b-1) The Department shall specify by rule the conditions of eligibility, the redetermination of eligibility, the application process, and the types, amounts, and duration of services. Eligibility for child care benefits and the amount of child care provided may vary based on family size, income, and other factors as specified by rule.

(1) No Illinois family shall be excluded from eligibility for child care benefits based solely on household income. The amount of child care assistance provided shall take into account the amount families can afford to pay based on the co-payment scale established by the Department under subsection (d) and shall cover the cost of quality child care as determined by the Department under subsection (e-2).

(2) Eligibility for child care assistance shall be redetermined no more often than once every 12 months. Parents shall be required to notify the Department of any material changes in circumstances related to the cessation of work, training, or education. The Department shall take steps to ensure that the requirements for redetermination of eligibility do not cause undue disruptions to parents' employment or the continuity of care for children.

In determining income eligibility for child care benefits, the Department annually, at the beginning of each fiscal year, shall establish, by rule, one income threshold for each family size, in relation to percentage of State median income for a family of that size, that makes families with incomes below the specified threshold eligible for assistance and families with incomes above the specified threshold ineligible for assistance. Through and including fiscal year 2007, the specified threshold must be no less than 50% of the then-current State median income for each family size. Beginning in fiscal year 2008, the specified threshold must be no less than 185% of the then-current federal poverty level for each family size.

In determining eligibility for assistance, the Department shall not give preference to any category of recipients or give preference to individuals based on their receipt of benefits under this Code.

Nothing in this Section shall be construed as conferring entitlement status to eligible families.

The Illinois Department is authorized to lower income eligibility ceilings, raise parent co-payments, create waiting lists, or take such other actions during a fiscal year as are necessary to ensure that child care benefits paid under this Article do not exceed the amounts appropriated for those child care benefits. These changes may be accomplished by emergency rule under Section 5-45 of the Illinois Administrative Procedure Act, except that the limitation on the number of emergency rules that may be adopted in a 24-month period shall not apply.

The Illinois Department may contract with other State agencies or child care organizations for the administration of child care services.

(b-2) (c) Payment shall be made for child care that otherwise meets the requirements of this Section and applicable standards of State and local law and regulation, including any requirements the Illinois Department promulgates by rule in addition to the licensure requirements promulgated by the Department of Children and Family Services and Fire Prevention and Safety requirements promulgated by the Office of the State Fire Marshal and is provided in any of the following:

(1) a child care center which is licensed or exempt from licensure pursuant to Section 2.09 of the Child Care Act of 1969;

(2) a licensed child care home or home exempt from licensing;

(3) a licensed group child care home;

(4) other types of child care, including child care provided by relatives or persons living in the same home as the child, as determined by the Illinois Department by rule.

(c-5) Solely for the purposes of coverage under the Illinois Public Labor Relations Act, child and day care home providers, including licensed and license exempt, participating in the Department's child care assistance program shall be considered to be public employees and the State of Illinois shall be considered to be their employer as of the effective date of this amendatory Act of the 94th General Assembly, but not before. The State shall engage in collective bargaining with an exclusive representative of child and day care home providers participating in the child care assistance program concerning their terms and conditions of employment that are within the State's control. Nothing in this subsection shall be understood to limit the right of families receiving services defined in this Section to select child and day care home providers or supervise them within the limits of this Section. The State shall not be considered to be the employer of child and day care home providers for any purposes not specifically provided in this amendatory Act of the 94th General Assembly, including but not limited to, purposes of vicarious liability in tort and purposes of statutory retirement or health insurance benefits. Child and day care home providers shall not be covered by the State Employees Group Insurance Act of 1971.

In according child and day care home providers and their selected representative rights under the Illinois Public Labor Relations Act, the State intends that the State action exemption to application of federal and State antitrust laws be fully available to the extent that their activities are authorized by this amendatory Act of the 94th General Assembly.

(d) The Illinois Department shall establish, by rule, a co-payment scale that provides for cost sharing by families that receive child care services, including parents whose only income is from assistance under this Code. The co-payment shall be based on family income, and family size, and the number of children needing care and may be based on other factors as appropriate. The co-payment scale shall ensure that:

(1) no family is required to pay more than 7% of its family income toward the cost of quality child care as determined by the Department under subsection (e-2);

(2) low-income and moderate-income families are required to pay no more than they can reasonably afford; and

(3) co-payments are Co-payments may be waived for families whose incomes are at or below the federal poverty level.

(d-5) (Blank). The Illinois Department, in consultation with its Child Care and Development Advisory Council, shall develop a plan to revise the child care assistance program's co-payment scale. The plan shall be completed no later than February 1, 2008, and shall include:

(1) findings as to the percentage of income that the average American family spends on child care and the relative amounts that low-income families and the average American family spend on other necessities of life;

(2) recommendations for revising the child care co-payment scale to assure that families receiving child care services from the Department are paying no more than they can reasonably afford;

(3) recommendations for revising the child care co-payment scale to provide at-risk children with complete access to Preschool for All and Head Start; and

(4) recommendations for changes in child care program policies that affect the affordability of child care.

(e) (Blank).

(e-1) The Department shall, by rule, establish a wage scale sufficient to recruit and retain a skilled and diverse workforce. All child care providers receiving payment from the Department shall be required to meet or exceed wage standards under the wage scale. The wage scale shall be established and updated annually in consultation with unions representing the child care workforce and shall:

(1) at a minimum, provide a living wage for family child care providers and all staff of child care providers; as used in this paragraph, "living wage" means an hourly wage that is sufficient for a full-time year-round worker to cover the basic self-sufficiency needs of a family of 4 in the geographic area in which the worker resides;

(2) ensure wages for family child care providers and staff of child care providers that are comparable to wages for elementary educators with similar qualifications and experience; and

(3) recognize variations by geographic area.

(e-2) The Department shall annually publish in draft form its determination of the cost of quality care which shall be revised based upon public review and comment. The determination of the cost of quality care shall be based on a statistically valid and reliable cost estimation process, established by rule, that:

(1) collects information about actual costs and expenses;

(2) recognizes variations in the cost of child care services by geographic area, type of provider, and age of child;

(3) recognizes the additional costs associated with providing quality and inclusive child care services for children with disabilities;

(4) recognizes the additional costs associated with providing child care during non-traditional hours or in cases where work hours and care needs vary from week to week;

(5) includes a process to define the cost of quality child care provided by a family member, friend, or neighbor that takes into account the unique needs and characteristics of this type of care;

(6) is based upon definitions of quality care established in consultation with parents, unions representing the child care workforce, and other stakeholders;

(7) accounts for the costs of paying all family child care providers and all staff of child care providers at or above the wage scale established in subsection (e-1); and

(8) is updated annually.

(f) Rates shall be set at levels that cover the full cost of quality child care, as established under subsection (e-2), and shall be updated annually in consultation with parents, unions representing the child care workforce, and other stakeholders. The Illinois Department shall, by rule, set rates to be paid for the various types of child care. Child care may be provided through one of the following methods:

(1) arranging the child care through eligible providers by use of purchase of service contracts or vouchers;

(2) arranging with other agencies and community volunteer groups for non-reimbursed child care;

(3) (blank); or

(4) adopting such other arrangements as the Department determines appropriate.

(f-5) (Blank).

(g) Families eligible for assistance under this Section shall be given the following options:

(1) receiving a child care certificate issued by the Department or a subcontractor of the Department that may be used by the parents as payment for child care and development services only; or

(2) if space is available, enrolling the child with a child care provider that has a purchase of service contract with the Department or a subcontractor of the Department for the provision of child care and development services. The Department may identify particular priority populations for whom they may request special consideration by a provider with purchase of service contracts, provided that the providers shall be permitted to maintain a balance of clients in terms of household incomes and families and children with special needs, as defined by rule.

(h) The Department shall establish, by rule, policies that maximize the participation of eligible children in Head Start and Early Head Start programs. The Department shall facilitate the coordination of the delivery of services under this Section with the goal of increasing participation in Head Start and Early Head Start programs in the State.

(i) No less than 9% of the funds appropriated in any fiscal year for the purposes of this Section shall be dedicated to improving the quality of child care in the State. The Department shall determine the utilization of these funds by regularly consulting with parents, unions representing the child care workforce, and other stakeholders to identify quality improvement strategies, goals, and priorities. Allowable uses of funds under this subsection include: improving the skills and qualifications of the existing workforce; increasing workforce compensation; and building the supply of quality care, including provider start-up and expansion.

(j) The Department shall annually provide a report to the General Assembly that includes the following:

(1) how the Department is ensuring a sufficient supply of quality child care programs to meet the needs of families in the State, including access to non-standard hour care, care for children with special needs, and care for English language learners;

(2) how quality standards and quality funding are being coordinated to minimize barriers to quality improvement and ensure the continued employment of an experienced, diverse workforce; and

(3) how the Department is minimizing barriers to provider participation in the child care assistance program funded under this Section, including, but not limited to, following generally accepted payment practices and ensuring timeliness of payments.

The report to the General Assembly shall be filed with the Clerk of the House of Representatives and the Secretary of the Senate in electronic form only, in the manner that the Clerk and the Secretary shall direct.

(Source: P.A. 100-387, eff. 8-25-17.)