HSB 233 (LSB 2533YC (5) 90)

HOUSE FILE _____ 

BY  (PROPOSED COMMITTEE ON APPROPRIATIONS BILL BY CHAIRPERSON MOHR)

A BILL FOR

An Act relating to state child care assistance eligibility requirements and child care provider reimbursement rates.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 237A.1, Code 2023, is amended by adding the following new subsection:
   NEW SUBSECTION.  7A.  “Children needing special needs care” or “special needs child” means a child or children with one or more of the following conditions:
   a.  The child has been diagnosed by a physician or by a person endorsed for service as a school psychologist by the department of education to have a developmental disability which substantially limits one or more major life activities, and the child requires professional treatment, assistance in self-care, or the purchase of special adaptive equipment.
   b.  The child has been determined by a qualified intellectual disability professional to have a condition which impairs the child’s intellectual and social functioning.
   c.  The child has been diagnosed by a mental health professional to have a behavioral or emotional disorder characterized by situationally inappropriate behavior which deviates substantially from behavior appropriate to the child’s age, or which significantly interferes with the child’s intellectual, social, or personal development.
    Sec. 2.  Section 237A.13, subsection 1, paragraph c, Code 2023, is amended to read as follows:
   c.  The child’s parent, guardian, or custodian is employed and the family income meets income requirements a minimum of thirty-two hours per week or an average of thirty-two hours per week during the month.
    Sec. 3.  Section 237A.13, Code 2023, is amended by adding the following new subsection:
   NEW SUBSECTION.  1A.  A family shall only be initially eligible for state child care assistance if the family’s gross monthly income does not exceed the lesser of:
   a.  (1)  One hundred fifty-five percent of the federal poverty level applicable to the family size for children needing basic care.
   (2)  Two hundred percent of the federal poverty level applicable to the family size for children needing special needs care.
   b.  Eighty-five percent of the state median gross monthly income.
    Sec. 4.  Section 237A.13, subsection 3, Code 2023, is amended to read as follows:
   3.  The department shall set reimbursement rates as authorized by appropriations enacted for payment of the reimbursements. The department shall conduct a statewide reimbursement rate survey to compile information on each county and the survey shall be conducted at least every two years. The department shall set rates in a manner so as to provide incentives for an unregistered provider to become registered.
    Sec. 5.  Section 237A.13, Code 2023, is amended by adding the following new subsection:
   NEW SUBSECTION.  10.  The department shall not change and the director shall not provide waivers or policy exceptions regarding reimbursement rates for child care providers reimbursed under the state child care assistance program or eligibility requirements for a family participating in the state child care assistance program without prior enabling legislation in this state passed on or after January 1, 2023.
    Sec. 6.  DEPARTMENT OF HEALTH AND HUMAN SERVICES —— INCREASED STATE CHILD CARE ASSISTANCE REIMBURSEMENT RATES.  The department of health and human services shall amend its administrative rules pursuant to chapter 17A to increase the half-day reimbursement rates paid to child care providers reimbursed under the state child care assistance program as follows:
   1.  For a licensed child care center:
   a.  For the care of infants and toddlers requiring basic care:
   (1)  The rate for providers with no quality rating or a quality rating of one, two, three, or four shall be twenty-three dollars and twenty-one cents.
   (2)  The rate for providers with a quality rating of five shall be twenty-four dollars and five cents.
   b.  For the care of preschool children requiring basic care:
   (1)  The rate for providers with no quality rating shall be eighteen dollars and ninety-eight cents.
   (2)  The rate for providers with a quality rating of one or two shall be nineteen dollars and fifty cents.
   (3)  The rate for providers with a quality rating of three or four shall be twenty dollars.
   (4)  The rate for providers with a quality rating of five shall be twenty-one dollars.
   c.  For school age children requiring basic care:
   (1)  The rate for providers with no quality rating shall be fifteen dollars.
   (2)  The rate for providers with a quality rating of one or two shall be fifteen dollars and fifty cents.
   (3)  The rate for providers with a quality rating of three or four shall be sixteen dollars.
   (4)  The rate for providers with a quality rating of five shall be seventeen dollars.
   2.  For a category A or B child development home:
   a.  For the care of infants and toddlers requiring basic care:
   (1)  The rate for providers with no quality rating or a quality rating of one, two, three, or four shall be fourteen dollars.
   (2)  The rate for providers with a quality rating of five shall be fifteen dollars.
   b.  For the care of infants and toddlers with special needs:
   (1)  The rate for providers with no quality rating or a quality rating of one, two, three, or four shall be twenty-one dollars.
   (2)  The rate for providers with a quality rating of five shall be twenty-two dollars and fifty cents.
   c.  For the care of preschool children requiring basic care:
   (1)  The rate for providers with no quality rating shall be twelve dollars and seventy-five cents.
   (2)  The rate for providers with a quality rating of one or two shall be thirteen dollars.
   (3)  The rate for providers with a quality rating of three or four shall be thirteen dollars and seventy-five cents.
   (4)  The rate for providers with a quality rating of five shall be fifteen dollars.
   d.  For the care of preschool children with special needs:
   (1)  The rate for providers with no quality rating shall be nineteen dollars and thirteen cents.
   (2)  The rate for providers with a quality rating of one or two shall be nineteen dollars and fifty cents.
   (3)  The rate for providers with a quality rating of three or four shall be twenty dollars and sixty-three cents.
   (4)  The rate for providers with a quality rating of five shall be twenty-two dollars and fifty cents.
   e.  For the care of school age children requiring basic care:
   (1)  The rate for providers with no quality rating shall be eleven dollars and twenty-five cents.
   (2)  The rate for providers with a quality rating of one or two shall be twelve dollars and fifty cents.
   (3)  The rate for providers with a quality rating of three or four shall be thirteen dollars.
   (4)  The rate for providers with a quality rating of five shall be thirteen dollars and fifty cents.
   f.  For the care of school age children with special needs:
   (1)  The rate for providers with no quality rating shall be sixteen dollars and eighty-eight cents.
   (2)  The rate for providers with a quality rating of one or two shall be eighteen dollars and seventy-five cents.
   (3)  The rate for providers with a quality rating of three or four shall be nineteen dollars and fifty cents.
   (4)  The rate for providers with a quality rating of five shall be twenty dollars and twenty-five cents.
   3.  For a category C child development home:
   a.  For the care of infants and toddlers requiring basic care:
   (1)  The rate for providers with no quality rating or a quality rating of one, two, three, or four shall be fifteen dollars and twenty-five cents.
   (2)  The rate for providers with a quality rating of five shall be sixteen dollars and twenty-five cents.
   b.  For the care of infants and toddlers with special needs:
   (1)  The rate for providers with no quality rating or a quality rating of one, two, three, or four shall be twenty-two dollars and eighty-eight cents.
   (2)  The rate for providers with a quality rating of five shall be twenty-four dollars and thirty-eight cents.
   c.  For the care of preschool children requiring basic care:
   (1)  The rate for providers with no quality rating or a quality rating of one, two, three, or four shall be fifteen dollars.
   (2)  The rate for providers with a quality rating of five shall be sixteen dollars.
   d.  For the care of preschool children with special needs:
   (1)  The rate for providers with no quality rating or a rating of one, two, three, or four shall be twenty-two dollars and fifty cents.
   (2)  The rate for providers with a quality rating of five shall be twenty-four dollars.
   e.  For the care of school age children requiring basic care:
   (1)  The rate for providers with no quality rating shall be thirteen dollars.
   (2)  The rate for providers with a quality rating of one or two shall be thirteen dollars and seventy-five cents.
   (3)  The rate for providers with a quality rating of three or four shall be fourteen dollars and fifty cents.
   (4)  The rate for providers with a quality rating of five shall be fifteen dollars.
   f.  For the care of school age children with special needs:
   (1)  The rate for providers with no quality rating shall be nineteen dollars and fifty cents.
   (2)  The rate for providers with a quality rating of one or two shall be twenty dollars and sixty-three cents.
   (3)  The rate for providers with a quality rating of three or four shall be twenty-one dollars and seventy-five cents.
   (4)  The rate for providers with a quality rating of five shall be twenty-two dollars and fifty cents.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   This bill relates to state child care assistance eligibility requirements and child care provider reimbursement rates.
   The bill defines “child needing special needs care” or “special needs child” as a child that has been diagnosed by a physician or by a person endorsed for service as a school psychologist by the department of education to have a developmental disability which substantially limits one or more major life activities, and the child requires professional treatment, assistance in self-care, or the purchase of special adaptive equipment; determined by a qualified intellectual disability professional to have a condition which impairs the child’s intellectual and social functioning; diagnosed by a mental health professional to have a behavioral or emotional disorder characterized by situationally inappropriate behavior which deviates substantially from behavior appropriate to the child’s age, or which significantly interferes with the child’s intellectual, social, or personal development; or a combination of these conditions.
   The bill requires a child’s parent, guardian, or custodian who is employed to work a minimum of 32 hours per week or an average of 32 hours per week during the month in order to be eligible for state child care assistance.
   The bill provides that a family shall only be initially eligible for state child care assistance if the family’s gross monthly income does not exceed the lesser of: 1) 155 percent of the federal poverty level applicable to the family size for children needing basic care, 2) 200 percent of the federal poverty level applicable to the family size for children needing special needs care, or 3) 85 percent of the state median gross monthly income.
   The bill prohibits the department of health and human services (HHS) and the director of HHS from changing, providing waivers regarding, or making policy exceptions regarding reimbursement rates for child care providers reimbursed under the state child care assistance program or eligibility requirements for a family participating in the state child care assistance program without prior enabling legislation in this state passed on or after January 1, 2023.
   The bill directs HHS to implement various half-day reimbursement rate increases to child care providers reimbursed under the state child care assistance program.
   The bill makes a conforming change to Code section 237A.13(3) to reflect HHS’s ability to set rates only when authorized by prior enabling legislation passed on or after January 1, 2023.