SF 353 (LSB 1799XS (6) 91)

SENATE FILE 353

BY  PETERSEN, WINCKLER, DONAHUE, STAED, BLAKE, TRONE GARRIOTT, BENNETT, DOTZLER, ZIMMER, TOWNSEND, and CELSI

A BILL FOR

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

    Section 1.  Section 237A.13, subsection 2, paragraph a, Code 2025, is amended to read as follows:
   a.  (1)  (a)  One On or before June 30, 2025, one hundred sixty percent of the federal poverty level applicable to the family size for children needing basic care.
   (b)  Beginning July 1, 2025, and ending June 30, 2026, one hundred seventy percent of the federal poverty level applicable to the family size for children needing basic care.
   (c)  Beginning July 1, 2026, and ending June 30, 2027, one hundred eighty percent of the federal poverty level applicable to the family size for children needing basic care.
   (d)  Beginning July 1, 2027, and ending June 30, 2028, one hundred ninety percent of the federal poverty level applicable to the family size for children needing basic care.
   (e)  On or after July 1, 2028, two hundred percent of the federal poverty level applicable to the family size for children needing basic care.
   (2)  (a)  Two On or before June 30, 2025, two hundred percent of the federal poverty level applicable to the family size for children needing special needs care.
   (b)  Beginning July 1, 2025, and ending June 30, 2026, two hundred ten percent of the federal poverty level applicable to the family size for children needing special needs care.
   (c)  Beginning July 1, 2026, and ending June 30, 2027, two hundred twenty percent of the federal poverty level applicable to the family size for children needing special needs care.
   (d)  Beginning July 1, 2027, and ending June 30, 2028, two hundred thirty percent of the federal poverty level applicable to the family size for children needing special needs care.
   (e)  Beginning July 1, 2028, and ending June 30, 2029, two hundred forty percent of the federal poverty level applicable to the family size for children needing special needs care.
    Sec. 2.  Section 237A.13, subsection 4, Code 2025, is amended to read as follows:
   4.  a.  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.
   b.  The department shall not modify set reimbursement rates to for the state child care assistance program or financial 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 at rates no less than the sixty-fifth percentile, but no more than the eightieth percentile, of the rates child care providers charge private pay customers as reported in the most recently completed statewide reimbursement rate survey.
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 the state child care assistance (CCA) program income eligibility requirements and child care provider (provider) reimbursement rates.
   Under current law, for a child to be eligible for entry into the CCA program, the child’s family must have income below 160 percent of the federal poverty level (FPL) applicable to a family’s size for a child needing basic care, or 200 percent of the FPL for a child needing special needs care. The bill increases the CCA program income eligibility limit for children needing basic care to 170 percent of the FPL for FY 2025-2026; 180 percent of the FPL for FY 2026-2027; 190 percent of the FPL for FY 2027-2028; and 200 percent of the FPL on or after July 1, 2028. The bill increases the CCA program income eligibility limit for children needing special needs care to 210 percent of the FPL for FY 2025-2026; 220 percent of the FPL for FY 2026-2027; 230 percent of the FPL for FY 2027-2028; and 240 percent of the FPL on or after July 1, 2028.
   The reimbursement rates paid to providers under the CCA program are based on statewide reimbursement rate surveys that the department of health and human services (HHS) conducts at least every two years to collect data on providers’ private pay rates. Under current law, CCA reimbursement rates must be set at rates no less than the 65th percentile, but no more than the 80th percentile, of rates child care providers charge private pay customers as reported in the 2020 statewide reimbursement rate survey. The bill requires HHS to base CCA reimbursement rates on the most recently completed statewide reimbursement rate survey.