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90_HB2605ham007 LRB9009318SMdvam18 1 AMENDMENT TO HOUSE BILL 2605 2 AMENDMENT NO. . Amend House Bill 2605, AS AMENDED, 3 by replacing the title with the following: 4 "AN ACT to amend the Illinois Public Aid Code by changing 5 Section 9A-11."; and 6 by replacing everything after the enacting clause with the 7 following: 8 "Section 5. The Illinois Public Aid Code is amended by 9 changing Section 9A-11 as follows: 10 (305 ILCS 5/9A-11) (from Ch. 23, par. 9A-11) 11 Sec. 9A-11. Child Care. 12 (a) The General Assembly recognizes that families with 13 children need child care in order to work. Child care is 14 expensive and families with low incomes, including those who 15 are transitioning from welfare to work, often struggle to pay 16 the costs of day care. The General Assembly understands the 17 importance of helping low income working families become and 18 remain self-sufficient. The General Assembly also believes 19 that it is the responsibility of families to share in the 20 costs of child care. It is also the preference of the 21 General Assembly that all working poor families should be -2- LRB9009318SMdvam18 1 treated equally, regardless of their welfare status. 2 (b) To the extent resources permit, the Illinois 3 Department shall provide child care services to parents or 4 other relatives as defined by rule who are working or 5 participating in employment or Department approved education 6 or training programs. At a minimum, the Illinois Department 7 shall cover the following categories of families: 8 (1) recipients of TANF under Article IV 9 participating in work and training activities as 10 specified in the personal plan for employment and 11 self-sufficiency; 12 (2) families transitioning from TANF to work; 13 (3) families at risk of becoming recipients of 14 TANF; 15 (4) families with special needs as defined by rule; 16 and 17 (5) working families with very low incomes as 18 defined by rule. 19 The Department shall specify by rule the conditions of 20 eligibility, the application process, and the types, amounts, 21 and duration of services. Eligibility for child care 22 benefits and the amount of child care provided may vary based 23 on family size, income, and other factors as specified by 24 rule. In determining income eligibility for child care 25 benefits, the Department shall establish, by rule, one income 26 threshold for each family size, in relation to percentage of 27 State median income for a family of that size, that makes 28 families with incomes below the specified threshold eligible 29 for assistance and families with incomes above the specified 30 threshold ineligible for assistance. In determining 31 eligibility for assistance, the Department shall not give 32 preference to any category of recipients or give preference 33 to individuals based on their receipt of benefits under this 34 Code. It is the intent of the General Assembly that, for -3- LRB9009318SMdvam18 1 fiscal year 1998, to the extent resources permit, the 2 Department shall establish an income eligibility threshold of 3 50% of the State median income. Notwithstanding the income 4 level at which families become eligible to receive child care 5 assistance, any family that is already receiving child care 6 assistance on the effective date of this amendatory Act of 7 1997 shall remain eligible for assistance for fiscal year 8 1998. Nothing in this Section shall be construed as 9 conferring entitlement status to eligible families. The 10 Illinois Department is authorized to lower income eligibility 11 ceilings, raise parent co-payments, create waiting lists, or 12 take such other actions during a fiscal year as are necessary 13 to ensure that child care benefits paid under this Article do 14 not exceed the amounts appropriated for those child care 15 benefits. These changes may be accomplished by emergency 16 rule under Section 5-45 of the Illinois Administrative 17 Procedure Act, except that the limitation on the number of 18 emergency rules that may be adopted in a 24-month period 19 shall not apply. The Illinois Department may contract with 20 other State agencies or child care organizations for the 21 administration of child care services. 22 (c) Payment shall be made for child care that otherwise 23 meets the requirements of this Section and applicable 24 standards of State and local law and regulation, including 25 any requirements the Illinois Department promulgates by rule 26 in addition to the licensure requirements promulgated by the 27 Department of Children and Family Services and Fire 28 Prevention and Safety requirements promulgated by the Office 29 of the State Fire Marshal and is provided in any of the 30 following: 31 (1) a child care center which is licensed or exempt 32 from licensure pursuant to Section 2.09 of the Child Care 33 Act of 1969; 34 (2) a licensed child care home or home exempt from -4- LRB9009318SMdvam18 1 licensing; 2 (3) a licensed group child care home; 3 (4) other types of child care, including child care 4 provided by relatives or persons living in the same home 5 as the child, as determined by the Illinois Department by 6 rule. 7 (d) The Illinois Department shall, by rule, require 8 co-payments for child care services by any parent, including 9 parents whose only income is from assistance under this Code. 10 The co-payment shall be assessed based on a sliding scale 11 based on family income, family size, and the number of 12 children in care. 13 Fees for a family with one child in care shall not exceed 14 8% of the family's gross annual income, and the fees for a 15 family with 2 children in care shall not exceed 10% of the 16 family's gross annual income. Nominal fees for additional 17 children in care may be charged. 18 Newly employed families, as defined by rule, shall 19 receive a one-time 2-month grace period during which they are 20 exempt from co-payment fees. For those receiving TANF, these 21 fees shall be covered by the Department as initial employment 22 expenses under supportive services. 23 Families in good standing on co-payment fee payments and 24 who are otherwise eligible, as defined by rule, shall be 25 charged a co-payment rate for full-time summer child care 26 programs for school-aged children that is not more than would 27 be required of them during the school year. 28 Licensed private and governmental entities which receive 29 State subsidies for the provision of child care who collect 30 no less than 90% of fees due per month under this subsection 31 shall be reimbursed by the Department for any remaining fees 32 not collected up to 10% of those due. 33 (e) The Illinois Department shall conduct a market rate 34 survey based on the cost of care and other relevant factors -5- LRB9009318SMdvam18 1 which shall be completed by July 1, 1998. 2 There is hereby established a Task Force on Child Care 3 Rates for the purposes of (1) reviewing the results of the 4 1998 market rate survey and (2) making recommendations to the 5 General Assembly, the Governor, and the Secretary of Human 6 Services regarding the implementation of the findings of the 7 1998 market rate survey. The Task Force shall consist of 15 8 members, with one member appointed by each of the following: 9 the Governor, the President of the Senate, the Senate 10 Minority Leader, the Speaker of the House of Representative, 11 the House Minority Leader, the Secretary of Human Services or 12 his or her designee, and the Director of Children and Family 13 Services or his or her designee. Three additional members 14 shall be appointed by the Governor who shall be providers of 15 child care in this State and 5 at-large members shall be 16 appointed by the Governor who are knowledgeable in child care 17 issues and, in particular, have expertise in regard to rates 18 and the impact of rates on the quality and supply of child 19 care in Illinois. A chair and a vice-chair shall be elected 20 by the members of the Task Force once the Task Force is 21 appointed. Members shall serve without compensation, but may 22 be reimbursed for their expenses. The Task Force shall 23 submit a report of its findings and recommendations to the 24 General Assembly and to the Governor by December 1, 1998. 25 The Task Force is abolished on January 1, 1999. 26 (f) The Illinois Department shall, by rule, set rates to 27 be paid for the various types of child care. Child care may 28 be provided through one of the following methods: 29 (1) arranging the child care through eligible 30 providers by use of purchase of service contracts or 31 vouchers; 32 (2) arranging with other agencies and community 33 volunteer groups for non-reimbursed child care; 34 (3) (blank); or -6- LRB9009318SMdvam18 1 (4) adopting such other arrangements as the 2 Department determines appropriate. 3 (g) Families eligible for assistance under this Section 4 shall be given the following options: 5 (1) receiving a child care certificate issued by 6 the Department or a subcontractor of the Department that 7 may be used by the parents as payment for child care and 8 development services only; or 9 (2) if space is available, enrolling the child with 10 a child care provider that has a purchase of service 11 contract with the Department or a subcontractor of the 12 Department for the provision of child care and 13 development services. The Department may identify 14 particular priority populations for whom they may request 15 special consideration by a provider with purchase of 16 service contracts, provided that the providers shall be 17 permitted to maintain a balance of clients in terms of 18 household incomes and families and children with special 19 needs, as defined by rule. 20 (h) To expand the quality of child care for families 21 eligible to receive child care services under this Section, 22 the Illinois Department shall set aside a minimum of 6% of 23 all funds appropriated to the Department to provide child 24 care services under this Section. This set-aside shall be 25 used to fund initiatives to enhance the quality of child care 26 provided to children served under this Section. 27 To expand the supply of child care available to families 28 eligible to receive child care services under this Section, 29 the Illinois Department shall set aside a minimum of 4% of 30 all funds appropriated to the Department to provide child 31 care services under this Section. The set-aside shall be 32 used to fund supply-building initiatives including 33 rehabilitation and construction of facilities and building 34 the supply of care in identified areas of need, such as -7- LRB9009318SMdvam18 1 infant and toddler care, care for children with special 2 needs, and before and after school care. 3 (Source: P.A. 90-17, eff. 7-1-97.)".