HB0485 94TH GENERAL ASSEMBLY

LRB094 06876 DRJ 36983 b

94TH GENERAL ASSEMBLY
State of Illinois
2005 and 2006
HB0485

Introduced 1/27/2005, by Rep. Harry Osterman - Rosemary Mulligan - David E. Miller - Robin Kelly - Michael K. Smith

SYNOPSIS AS INTRODUCED:

305 ILCS 5/9A-11

from Ch. 23, par. 9A-11

Amends the Illinois Public Aid Code. In provisions concerning child care for TANF recipients, provides that in order to determine child care base reimbursement rates, the Department of Human Services shall conduct, every other year, a market rate survey of the licensed child care providers in the State. (Removes a provision concerning a market rate survey to be completed by July 1, 1998.) Provides that the Department may establish varying child care base reimbursement rates based on age classifications and groupings of counties reflective of variations in the price of child care as determined by the market rate survey. Provides that not later than the start of the first fiscal year following the effective date of this amendatory Act, all base reimbursement rates for licensed child care providers shall thereafter be set at not less than the 50th percentile and shall not exceed the 75th percentile as determined by the most recent market rate survey. Makes provision for percentile adjustments, rates for registered legally license-exempt home child care providers, and providers who serve children with a special need. Requires the Department to implement a tiered rate reimbursement system under which child care providers who attain benchmarks of higher quality child care shall receive a premium in addition to the base reimbursement rate. Provides that child care providers who accept reimbursement from the Department under these provisions may not charge a parent receiving child care assistance a rate in excess of the parent's co-payment. Removes a provision that the Department shall, by rule, set rates to be paid for the various types of child care. Effective immediately.

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 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. 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) 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 or participating in employment or Department approved education or training programs. At a minimum, the Illinois Department shall cover the following categories of families:

(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; and

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

The Department shall specify by rule the conditions 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.

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. The specified threshold must be no less than 50% of the then-current State median income 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.

The Department shall allocate $7,500,000 annually for a test program for families who are income-eligible for child care assistance, who are not recipients of TANF under Article IV, and who need child care assistance to participate in education and training activities. The Department shall specify by rule the conditions of eligibility for this test program.

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.

(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.

(d) The Illinois Department shall, by rule, require co-payments for child care services by any parent, including parents whose only income is from assistance under this Code. The co-payment shall be assessed based on a sliding scale based on family income, family size, and the number of children in care. Co-payments shall not be increased due solely to a change in the methodology for counting family income. Child care providers who accept reimbursement from the Illinois Department under subsection (e) are prohibited from charging parents receiving child care assistance under this Section a rate in excess of their co-payment.

(e) In order to determine child care base reimbursement rates, the Illinois Department shall conduct, every other year, a market rate survey of the licensed child care providers in the State. The Illinois Department may establish varying child care base reimbursement rates based on age classifications and groupings of counties reflective of variations in the price of child care as determined by the market rate survey. The market rate survey shall be completed not later than September 30 in each even-numbered year.

Not later than the start of the first fiscal year following the effective date of this amendatory Act of the 94th General Assembly, all base reimbursement rates for licensed child care providers shall thereafter be set at not less than the 50th percentile and shall not exceed the 75th percentile as determined by the most recent market rate survey. The Illinois Department shall adjust the percentile of the market rate survey at which the child care base reimbursement rate is set in each grouping of counties to ensure that child care base reimbursement rates take into account regional variations and are fundamentally fair to all providers across the State. No child care base reimbursement rate shall be set lower than the corresponding child care base reimbursement rate in effect on the effective date of this amendatory Act of the 94th General Assembly.

The Illinois Department shall set the child care base reimbursement rate for registered legally license-exempt home child care providers at no less than 65% of the State's lowest child care base reimbursement rate for licensed homes. The Illinois Department shall determine the requirements for registration of legally license-exempt home child care providers by rule.

Providers who serve children with a special need, as defined by rule, shall receive reimbursement at a rate no less than 20% above the child care base reimbursement rate for each such child.

The Illinois Department shall implement a tiered rate reimbursement system under which child care providers who attain benchmarks of higher quality child care shall receive a premium in addition to the base reimbursement rate. The content of each benchmark shall be specified by rule. Premiums shall be in increments of 5% of the base reimbursement rate and shall not exceed 25% of the base reimbursement rate. The Illinois Department shall conduct a market rate survey based on the cost of care and other relevant factors which shall be completed by July 1, 1998.

(f) 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) The Illinois Department, in consultation with its Child Care and Development Advisory Council, shall develop a comprehensive plan to revise the State's rates for the various types of child care. The plan shall be completed no later than January 1, 2005 and shall include:

(1) Base reimbursement rates that are adequate to provide children receiving child care services from the Department equal access to quality child care, utilizing data from the most current market rate survey.

(2) A tiered reimbursement rate system that financially rewards providers of child care services that meet defined benchmarks of higher-quality care.

(3) Consideration of revisions to existing county groupings and age classifications, utilizing data from the most current market rate survey.

(4) Consideration of special rates for certain types of care such as caring for a child with a disability.

(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.

(Source: P.A. 93-361, eff. 9-1-03; 93-1062, eff. 12-23-04.)

Section 99. Effective date. This Act takes effect upon becoming law.