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<section article="ged" article_name="Education" number="9.5-111" title_number="9.5" title_name="Division of Early Childhood Development" subtitle_number="1" subtitle_name="Established">
  <level label="a">
    <level label="1">
      <text>In this section the following words have the meanings indicated.</text>
    </level>
    <level label="2">
      <text>“Analysis” means the market rate survey or an alternative method allowable under federal law.</text>
    </level>
    <level label="3">
      <text>“Program” means the Child Care Scholarship Program.</text>
    </level>
  </level>
  <level label="b">
    <level label="1">
      <text>Beginning in 2017, and every 2 years thereafter, the Department shall conduct an analysis in order to formulate appropriate reimbursement rates for the Program.</text>
    </level>
    <level label="2">
      <text>The Department, before conducting the analysis, shall consult with:</text>
      <level label="i">
        <text>The Office of Child Care Advisory Council;</text>
      </level>
      <level label="ii">
        <text>Child care resource and referral agencies;</text>
      </level>
      <level label="iii">
        <text>Child care worker organizations; and</text>
      </level>
      <level label="iv">
        <text>Any other appropriate entities.</text>
      </level>
    </level>
  </level>
  <level label="c">
    <text>On or before September 1, 2017, and by September 1 every 2 years thereafter, the Department shall report to the Joint Committee on Children, Youth, and Families, the Senate Budget and Taxation Committee, and the House Appropriations Committee, in accordance with § 2–1257 of the State Government Article, on:</text>
    <level label="1">
      <text>The methodology of the analysis required under subsection (b) of this section;</text>
    </level>
    <level label="2">
      <text>Cost estimates for raising the Program’s reimbursement rates to the 45th, 55th, 65th, and 75th percentile of child care providers in each of the State’s market regions;</text>
    </level>
    <level label="3">
      <text>The minimum base payment rate that is required for child care providers to meet health, safety, quality, and staffing requirements in accordance with federal law and the factors used to determine that rate;</text>
    </level>
    <level label="4">
      <text>The rate adjustment that the Department will implement based on the analysis;</text>
    </level>
    <level label="5">
      <text>Any adjustments to Program eligibility or family copay amount that will be implemented; and</text>
    </level>
    <level label="6">
      <text>Any potential impacts on families and providers due to any adjustments made to the Program.</text>
    </level>
  </level>
  <level label="d">
    <level label="1">
      <text>The Governor shall include in the annual State budget an appropriation from all fund sources for the Program that is not less than the total appropriation for the Program in fiscal year 2018 or fiscal year 2019, whichever is greater.</text>
    </level>
    <level label="2">
      <text>Except as provided in paragraph (3) of this subsection, the Department may not make the following alterations to the Program in effect as of January 1, 2023:</text>
      <level label="i">
        <text>Reduce the reimbursement rates;</text>
      </level>
      <level label="ii">
        <text>Reduce the income eligibility requirements; or</text>
      </level>
      <level label="iii">
        <text>Subject to subsections (e) and (f)  of this section, implement a freeze in Program enrollment.</text>
      </level>
    </level>
    <level label="3">
      <level label="i">
        <text>The Department may alter the Program in effect as of January 1, 2023, by reducing the reimbursement rates, reducing the income eligibility requirements, or implementing a freeze in Program enrollment, if:</text>
        <level label="1">
          <text>The Department submits a notification to the Senate Budget and Taxation Committee, the Senate Committee on Education, Energy, and the Environment, the House Appropriations Committee, and the House Ways and Means Committee, in accordance with § 2–1257 of the State Government Article, on the intended Program alterations, including the reason for, and expected duration of, the proposed actions; and</text>
        </level>
        <level label="2">
          <text>The Program alterations identified in the notification are not implemented until the completion of the regular legislative session immediately following the submission of the notification.</text>
        </level>
      </level>
      <level label="ii">
        <text>If the Board of Public Works approves budget reductions for the Program under § 7–213 of the State Finance and Procurement Article for a certain fiscal year, the Department may reduce the reimbursement rates, reduce the income eligibility requirements, or implement a freeze in Program enrollment at any time during the fiscal year.</text>
      </level>
    </level>
    <level label="4">
      <text>Except as provided in § 9.5–113(d) of this subtitle, the Department may not increase the copayment levels of the Program in effect as of January 1, 2024.</text>
    </level>
  </level>
  <level label="e">
    <level label="1">
      <level label="i">
        <text>A freeze in Program enrollment may not apply to:</text>
        <level label="1">
          <text>An individual or a family who is enrolled in the temporary cash assistance program under § 5–312 of the Human Services Article;</text>
        </level>
        <level label="2">
          <text>An individual or a family who is enrolled in the federal Temporary Assistance for Needy Families program;</text>
        </level>
        <level label="3">
          <text>A child, parent, or caregiver who is enrolled in the federal Supplemental Security Income program;</text>
        </level>
        <level label="4">
          <text>The sibling of a child who is enrolled in the Program; and</text>
        </level>
        <level label="5">
          <text>A child who is homeless.</text>
        </level>
      </level>
      <level label="ii">
        <text>An individual described under subparagraph (i) of this paragraph shall otherwise meet the criteria for enrollment in the Program.</text>
      </level>
    </level>
    <level label="2">
      <level label="i">
        <text>If the Department establishes a freeze in Program enrollment, the Department shall establish a waitlist for eligible individuals who apply to the Program after the freeze is in effect.</text>
      </level>
      <level label="ii">
        <text>The waitlist shall remain in effect as long as there are fewer available awards under the Program than eligible applicants for the Program.</text>
      </level>
      <level label="iii">
        <text>The waitlist shall provide awards for enrollment in the Program to qualified applicants in the following order of priority:</text>
        <level label="1">
          <text>Applicants with the greatest financial need, based on annual household income;</text>
        </level>
        <level label="2">
          <text>Applicants who work for at least 20 hours a week as an employee or operator of a child care center, a family child care home, a large family child care home, or an eligible publicly funded prekindergarten program under Title 7, Subtitle 1A of this article that accepts children enrolled in the Program;</text>
        </level>
        <level label="3">
          <text>Applicants enrolling a child under the age of 3 years; and</text>
        </level>
        <level label="4">
          <text>Applicants who have been on the waitlist for the longest period of time.</text>
        </level>
      </level>
    </level>
  </level>
  <level label="f">
    <level label="1">
      <text>If the Department establishes a freeze in Program enrollment, the Department shall identify applicants to the Program whose children qualify for:</text>
      <level label="i">
        <text>The publicly funded prekindergarten program under Title 7, Subtitle 1A of this article; or</text>
      </level>
      <level label="ii">
        <text>A Head Start or Early Head Start program.</text>
      </level>
    </level>
    <level label="2">
      <text>The Department shall inform an applicant identified under paragraph (1) of this subsection about the publicly funded prekindergarten program, Head Start program, or Early Head Start program, including by providing information on:</text>
      <level label="i">
        <text>Available prekindergarten, Head Start, or Early Head Start programs in the county in which the applicant resides;</text>
      </level>
      <level label="ii">
        <text>How to contact providers who may have available program slots; and</text>
      </level>
      <level label="iii">
        <text>How to apply for the programs.</text>
      </level>
    </level>
    <level label="3">
      <text>On request, the Department shall provide eligible families identified under paragraph (1) of this subsection with information on the enrollment processes.</text>
    </level>
    <level label="4">
      <text>The process for identifying and assisting eligible Program applicants whose children qualify for a program shall continue as long as the waitlist is in effect.</text>
    </level>
  </level>
  <level label="g">
    <text>The Governor shall, from all fund sources, appropriate funds in the annual State budget in an amount sufficient to raise the Program’s reimbursement rates for each region to:</text>
    <level label="1">
      <text>For fiscal year 2020, not less than the 30th percentile of the most recent market rate survey or its equivalent if an alternative methodology defined by the Department is used; and</text>
    </level>
    <level label="2">
      <text>For fiscal year 2021 and each fiscal year thereafter, not less than the 60th percentile of the most recent market rate survey or its equivalent if an alternative methodology defined by the Department is used.</text>
    </level>
  </level>
</section>
