SB 144-FN - AS AMENDED BY THE SENATE

01/05/2022   2218s

02/16/2022   0609s

2021 SESSION

21-0940

05/10

SENATE BILL 144-FN

AN ACT relative to child care scholarships.

SPONSORS: Sen. Whitley, Dist 15; Sen. Rosenwald, Dist 13; Sen. Perkins Kwoka, Dist 21; Sen. Watters, Dist 4; Sen. Hennessey, Dist 1; Sen. Prentiss, Dist 5; Sen. D'Allesandro, Dist 20; Sen. Soucy, Dist 18; Sen. Sherman, Dist 24; Rep. McWilliams, Merr. 27; Rep. Nordgren, Graf. 12; Rep. Wallner, Merr. 10

COMMITTEE: Health and Human Services

-----------------------------------------------------------------

AMENDED ANALYSIS

This bill establishes a child care scholarship pilot program to provide enrollment-based reimbursement to child care providers.

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

Explanation: Matter added to current law appears in bold italics.

Matter removed from current law appears [in brackets and struckthrough.]

Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

01/05/2022   2218s

02/16/2022   0609s 21-0940

05/10

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Twenty One

AN ACT relative to child care scholarships.

Be it Enacted by the Senate and House of Representatives in General Court convened:

1  Statement of Findings.  The general court hereby finds that:

I. The availability of quality, affordable, safe, and reliable child care is critical to allow parents to remain in the workforce, build a strong and future-focused economy, and provide a supportive environment for healthy child development that prepares children for success in school and in life.  

II. The child care scholarship or subsidy plays a significant role in ensuring all New Hampshire families can access quality, safe, and reliable child care, regardless of income.

III. The COVID-19 crisis has exposed the inherent fragility of New Hampshire's child care system and the need to solidify this sector.

IV.  Shifting from attendance-based payment to enrollment-based reimbursement for participating child care providers would level the playing field for families qualifying for child care scholarships, incentivize child care programs to open their doors to these families, and provide stability to New Hampshire families, especially in such uncertain times.

2  Department of Health and Human Services; Child Care Scholarships; Pilot Program.  

I.  The department of health and human services shall implement a 3-month pilot program to provide enrollment-based reimbursement to child care providers who accept child care scholarships through the Child Care and Development Fund (CCDF) plan for New Hampshire.  For the purposes of the pilot, enrollment-based billing shall continue unless a child exceeds 2 weeks of consecutive absence from the program without notification to the provider regarding circumstances and agreed upon return date.  

II. On or before September 1, 2022, the department of health and human services shall provide a detailed report of the enrollment-based pilot to child care providers who accept child care scholarships through the CCDF to the senate health and human services committee and the house children and family law and health, human services and elderly affairs committees. In the report, the department shall review and provide data on the overall cost of the enrollment-based reimbursement model compared with the current attendance-based reimbursement model. The report shall include data on utilization, child care provider participation, absentee rate, and other relevant information available to assess the pilot program.

III. The department of health and human services is authorized to use the Supplemental Child Care and Development Fund Discretionary Funds appropriated in the American Rescue Plan Act of 2021, Public Law 117-2 (ARPA), for the purpose of funding a CCDF scholarship pilot program. The department is authorized to spend down CCDF funding before using ARPA Supplemental Child Care and Development Fund Discretionary Funds.

IV. The department shall include, as part of the biennial budgetary process, the full cost to provide enrollment-based reimbursement, rather than attendance-based payment, to child care providers who accept child care scholarships through the CCDF plan for New Hampshire for fiscal years 2024-2025.

3 Effective Date. This act shall take effect upon its passage.

LBA

21-0940

Amended 2/8/22

SB 144-FN- FISCAL NOTE

AS AMENDED BY THE SENATE (AMENDMENT #2021-2218s)

AN ACT relative to child care scholarships.

FISCAL IMPACT:      [ X ] State              [    ] County               [    ] Local              [    ] None

METHODOLOGY:

This bill requires the Department of Health and Human Services to implement a three-month (or longer) pilot program to provide enrollment-based reimbursement, rather than attendance-based payment, to childcare providers who accept child care scholarships through the Child Care and Development Fund (CCDF).  The bill authorizes the Department to use federal CCDF funds or, if such funds are not available, federal American Rescue Plan Act (ARPA) funds to pay for the pilot program.  Following implementation of the pilot program, the bill requires the Department to prepare a report identifying the costs of the respective payment models.  Finally, the bill requires the Department to submit, as part of its biennial budget process, the full cost of providing enrollment-based reimbursement for the FY 24/25 biennium.

The Department states that it will be able to fund the pilot program with existing federal resources, and that no additional appropriations will be necessary for the current FY 22/23 biennium.  If the program is made permanent in the FY 24/25 budget, the Department expects it to result in an indeterminable increase in expenditures at that time.

AGENCIES CONTACTED:

Department of Health and Human Services