An Act To Support Maine's Working Families through Universal Child Care
Maine Legislature, Session 128, LD 1618
Committee: Health and Human Services
Sponsors: SYLVESTER, ACKLEY, COLLINGS, HYMANSON, MADIGAN, O'NEIL, RECKITT, TALBOT ROSS, TERRY
Amends: 5 MRSA §12004-G, 5 MRSA §12004-I, 22 MRSA §7288, 22 MRSA §7289

Legislative Document
No. 1618
H.P. 1114
House of Representatives, May 18, 2017
An Act To Support Maine's Working Families through Universal 
Child Care
Reference to the Committee on Health and Human Services suggested and ordered printed.
ROBERT B. HUNT
Clerk
Presented by Representative SYLVESTER of Portland.
Cosponsored by Representatives: ACKLEY of Monmouth, COLLINGS of Portland, 
HYMANSON of York, MADIGAN of Waterville, O'NEIL of Saco, RECKITT of South 
Portland, TALBOT ROSS of Portland, TERRY of Gorham.
Be it enacted by the People of the State of Maine as follows: 
Sec. 1.  5 MRSA §12004-G, sub-§14-I is enacted to read: 
14-I.   
Sec. 2.  5 MRSA §12004-I, sub-§30-B is enacted to read: 
30-B.   
Sec. 3.  22 MRSA sub-T. 4, Pt. 4 is enacted to read: 
PART 4 
CHILD CARE SERVICES 
CHAPTER 1606 
UNIVERSAL CHILD CARE 
§7285.  Definitions 
As used in this chapter, unless the context otherwise indicates, the following terms 
have the following meanings. 
1.  Advisory committee.  "Advisory committee" means the Universal Child Care 
Trust Fund Advisory Committee described in section 7289. 
2.  Board.  "Board" means the Universal Child Care Trust Fund Board described in 
section 7288. 
3.  Eligible person.  "Eligible person" means a person determined to be eligible 
under the program. 
4.  Executive director.  "Executive director" means the executive director of the 
board. 
5.  Fund.  "Fund" means the Universal Child Care Trust Fund established under 
section 7287. 
6.  Universal Child Care Program.  "Universal Child Care Program" or "program" 
means the program created under section 7286. 
Health Care 
Universal Child 
Care Trust Fund 
Board 
Expenses Only 
MRSA §7288 
Health Care 
Universal Child 
Care Trust Fund 
Advisory Committee 
Not Authorized 
MRSA §7289 
§7286.  Universal Child Care Program established 
The Universal Child Care Program is established.  The program provides child care 
to individuals and families determined to be eligible under this chapter.  The program 
must have a unified system for intake and eligibility determination for all consumers.  
Income may not be a factor for eligibility for any services provided under the program.  
The board oversees all funding for services provided pursuant to the program. 
§7287.  Universal Child Care Trust Fund established 
The Universal Child Care Trust Fund is established as a nonlapsing fund managed by 
the board to support the program.  The fund may receive any revenue appropriated or 
allocated to the fund and receives all funds deposited in the fund from any other source.  
Funds in the fund may be invested in the same manner as permitted for investment of 
funds held in the State Treasury. 
§7288.  Universal Child Care Trust Fund Board 
The Universal Child Care Trust Fund Board, established in Title 5, section 12004-G, 
subsection 14-I, oversees and manages the fund and its use under the program in 
accordance with this chapter. 
1.  Membership of the board.  The board consists of the following members: 
A.  A member of the Senate, appointed by the President of the Senate; 
B.  A member of the House of Representatives, appointed by the Speaker of the 
House of Representatives; 
C.  A member who resides in the State's First Congressional District at the time of 
appointment and is a family child care provider as defined in section 8301-A; 
D.  A member who resides in the State's Second Congressional District at the time of 
appointment and is a family child care provider as defined in section 8301-A; 
E.  A member who resides in the State's First Congressional District at the time of 
appointment and operates a child care center as defined in section 8301-A; 
F.  A member who resides in the State's Second Congressional District at the time of 
appointment and operates a child care center as defined in section 8301-A; 
G.  A parent or guardian of a child under 4 years of age who resides in the State's 
First Congressional District and receives child care services at the time the parent or 
guardian becomes a member of the board; 
H.  A parent or guardian of a child under 4 years of age who resides in the State's 
Second Congressional District and receives child care services at the time the parent 
or guardian becomes a member of the board; 
I.  A parent or guardian of a child who has special needs; 
J.  A new resident of the State who is a parent or guardian of a child who, at the time 
the parent or guardian becomes a member of the board, is under 4 years of age; 
K.  The commissioner or the commissioner's designee; 
L.  The Commissioner of Education or the commissioner's designee; and 
M.  The Treasurer of State or the treasurer's designee. 
2.  Appointment to initial board; term; vacancy.  By February 1, 2018, the 
Speaker of the House of Representatives shall appoint 5 members to the initial board that 
satisfy the requirements of subsection 1, paragraphs B, C, E, G and J and the President of 
the Senate shall appoint 5 members to the board that satisfy the requirements of 
subsection 1, paragraphs A, D, F, H and I.  A member of the initial board serves for a 
one-year term or until the election of that member's successor under subsection 3.  A 
vacancy on the initial board is filled in the same manner by the appointing authority for 
the unexpired portion of the term. 
3.  Election of board.  The department shall establish procedures to provide for 
elections of board members after the terms of the initial board expire.  At least one year 
prior to each election, the department shall provide to the board lists of all licensed child 
care providers including owners, directors, staff members and direct care employees.  The 
board shall determine and compile a list of the names and addresses of all parents and 
guardians with children receiving child care services through the program and provide the 
list to the department.  Based on compiled lists, the department, in consultation with the 
board, shall identify all persons who have direct interests related to each member's 
required qualifications under subsection 1, referred to in this subsection as "that member's 
constituency."  The department shall establish and administer a system of nomination and 
secret ballot voting by mail under which each member is elected by vote of that member's 
constituency. 
4.  Terms; compensation; vacancy.  A member of the board elected under 
subsection 3 serves a 3-year term and may serve no more than 4 terms.  Members  receive 
no compensation for service but are entitled to any necessary expenses, including travel 
expenses, incurred in the discharge of their duties.  A vacancy during the term of a 
member elected under subsection 3 may be filled by appointment by the commissioner 
for the remainder of the member's term.  A member representing those receiving child 
care services in subsection 1, paragraph G or H who no longer receives those services 
may serve out the remainder of the member's term.  A member of the board appointed or 
elected under subsection 1, paragraph C, D, E or F is no longer eligible to serve if that 
member no longer meets the requirements of the respective paragraph unless that person 
is moving to new employment that will permit the member to meet the same requirements 
and the gap in employment is no longer than 4 weeks. 
5.  Board responsibilities.  The board: 
A.  Shall manage the fund to ensure the long-term sustainability of the fund; 
B.  Shall determine the amount of funding from the fund to be used for services 
funded under the program; 
C.  Shall set reimbursement rates for services under section 7290 eligible for 
reimbursement under the program in a manner that maximizes access to those 
services, supports workforce development and ensures service quality; 
D.  May by rule manage eligibility under the program to ensure the program does not 
negatively affect the financial health of the fund; 
E.  May create advisory committees to advise the board on the program and fund; 
F.  May collect and disseminate information related to the program; 
G.  Shall report annually, no later than December 31st, to the Legislature on the status 
of the fund, including revenues, expenditures on child care services, administrative 
costs, provider reimbursement rates and any other relevant information relating to the 
fund; 
H.  Shall advise the Governor and the Legislature on appropriate policies related to 
child care; and 
I.  Shall undertake any other functions necessary to implement the program and 
enable the board to carry out its powers and duties under this chapter. 
6.  Administrative support; executive director; duties.  The board shall employ an 
executive director to administer the program, to provide administrative, managerial and 
technical support for the operations of the board and to compile annual reports.  The 
executive director must have financial and accounting expertise.  The board shall 
determine the appropriate salary of the executive director, who serves at the pleasure of 
the board.  The executive director may hire additional professional staff necessary to 
administer the program.  The executive director shall: 
A.  Hold a meeting in each county not less frequently than once every 2 months to 
report to parents and guardians and child care providers on the actions of the board; 
B.  Report to the board the information, questions and input gathered from parents 
and guardians and child care providers at the meetings held pursuant to paragraph A; 
C.  Assist in the creation of countywide associations of parents and guardians and 
child care providers and work, in coordination with existing associations of parents 
and guardians and child care providers, to monitor and coordinate the implementation 
of universal child care and to facilitate access to high-quality child care; 
D.  Work with the director of the Child Development Services System, as defined in 
Title 20-A, section 7001, subsection 1-A, to coordinate outreach and information 
about child development services; and 
E.  Periodically review existing licensure requirements for child care providers and 
submit to the joint standing committee of the Legislature having jurisdiction over 
child care matters any recommendations for changes to those licensure requirements. 
§7289.  Universal Child Care Trust Fund Advisory Committee 
The Universal Child Care Trust Fund Advisory Committee is established under Title 
5, section 12004-I, subsection 30-B. 
1.  Members.  The advisory committee is composed of the following, or their 
designees: 
A.  The commissioner; 
B.  The Commissioner of Labor; 
C.  The Commissioner of Education; 
D.  The Treasurer of State; 
E.  The President of the Senate; and 
F.  The Speaker of the House of Representatives. 
2.  Duties.  The advisory committee shall, on a quarterly basis, review the policies 
and financial management of the fund and provide guidance and advice to the board and 
the executive director. 
§7290.  Child care services 
Notwithstanding any other provision of law, child care is available free to parents and 
guardians under the program in accordance with rules adopted by the board.  
Notwithstanding any other provision of law, federal child care subsidies under the 
Temporary Assistance for Needy Families program, established in chapter 1053-B, and 
the federal Child Care and Development Fund block grant as well as all money in the 
fund designated by the board to support the services funded under this section must be 
applied by the department in accordance with this section and rules adopted under this 
section. 
1.  Children under one year of age.  Beginning July 1, 2019, in accordance with 
rules adopted by the board, a parent or guardian with a child or children under one year of 
age, upon application to the department, receives vouchers from the department to pay 
the full cost of enrollment in a child care facility or nursery school of the parent's or 
guardian's choosing, including a facility or school licensed under chapter 1673 or 1675 or 
an unlicensed facility or school.  The department shall, upon application by a parent or 
guardian who is not employed and has a child or children under one year of age for whom 
that parent or guardian provides child care, pay to that parent or guardian $125 each 
month per child. 
2.  Children under 2 years of age.  Beginning July 1, 2020, in accordance with rules 
adopted by the board, a parent or guardian with a child or children under 2 years of age, 
upon application to the department, receives vouchers from the department to pay the full 
cost of enrollment in a child care facility or nursery school of the parent's or guardian's 
choosing, including a facility or school licensed under chapter 1673 or 1675 or an 
unlicensed facility or school.  The department shall, upon application by a parent or 
guardian who is not employed and has a child or children under 2 years of age for whom 
that parent or guardian provides child care, pay to that parent or guardian $125 each 
month per child. 
3.  Children under 3 years of age.  Beginning July 1, 2021, in accordance with rules 
adopted by the board, a parent or guardian with a child or children under 3 years of age, 
upon application to the department, receives vouchers from the department to pay the full 
cost of enrollment in a child care facility or nursery school of the parent's or guardian's 
choosing, including a facility or school licensed under chapter 1673 or 1675 or an 
unlicensed facility or school.  The department shall, upon application by a parent or 
guardian who is not employed and has a child or children under 3 years of age for whom 
that parent or guardian provides child care, pay to that parent or guardian $125 each 
month per child. 
4.  Rules; local market rates.  Pursuant to section 7292, the board shall adopt rules 
governing the provision of vouchers and payments for child care under this section.  The 
board shall determine an appropriate methodology for studying local market rates before 
setting payment rates under this subsection.  The rules must provide that, no later than 
July 1, 2019, payment rates for child care services are at least equal to the 75th percentile 
of local market rates for the various categories of child care services and the payment 
rates for child care services for children with special needs must be higher than the 75th 
percentile of local market rates. 
§7291.  Outreach 
Beginning April 1, 2018, in accordance with rules adopted by the board, all 
employers in the State must display in workplaces posters notifying employees of the 
universal child care services available under the program.  The Department of Labor shall 
produce and distribute all posters required under this section. 
§7292.  Rules 
The board shall adopt rules necessary to implement this chapter.  Rules adopted by 
the board pursuant to this section are routine technical rules as defined in Title 5, chapter 
375, subchapter 2-A. 
Sec. 4.  Program development and implementation.  The following 
provisions govern the development and implementation of the Universal Child Care 
Program established under the Maine Revised Statutes, Title 22, chapter 1606. 
1.  Development of revenue source.  By December 15, 2017, the Department of 
Administrative and Financial Services, Bureau of Revenue Services shall develop and 
submit to the Joint Standing Committee on Health and Human Services draft legislation 
to establish universal child care taxes to provide funding for the Universal Child Care 
Program, established in the Maine Revised Statutes, Title 22, section 7286.  The draft 
legislation must be structured to include 3 elements: 
A.  A tax on wages that applies in a manner substantially equivalent to the federal 
Social Security Act's Old-Age, Survivors, and Disability Insurance program tax, with 
the same rates as the federal tax rates and applicable in the same manner to 
employees and employers but that applies only to earnings above the annual 
contribution and benefit base of the federal tax; 
B.  A self-employment tax applicable to taxpayers who are subject to the federal 
Self-Employment Contributions Act tax that applies to net earnings in a substantially 
equivalent manner and at the same rates as that federal tax but that applies only to net 
earnings above the annual limit of net earnings subject to taxation under that federal 
tax; and 
C.  A tax on unearned annual income over $127,000, indexed to changes in the wage 
and earning thresholds applicable under paragraphs A and B, that applies in a manner 
similar to the federal Net Investment Income Tax imposed under 26 United States 
Code, Section 1411 with a tax rate that is the same as that applicable to net earnings 
subject to tax under paragraph B. 
The Joint Standing Committee on Health and Human Services shall report out a bill to the 
fund the Universal Child Care Program. 
2.  Start-up; appointment of initial board.  No later than March 1, 2018, the initial 
Universal Child Care Trust Fund Board established under the Maine Revised Statutes, 
Title 22, chapter 1606 shall meet to develop and oversee the implementation of the 
Universal Child Care Program and to plan with the Department of Health and Human 
Services for the election of new members in November 2018.  By March 1, 2018, the 
board shall also examine the need for and develop a plan for maintaining or eliminating 
existing advisory councils relating to the child care services portions of the program and 
shall submit a report of its recommendations to the Joint Standing Committee on Health 
and Human Services relating to the appropriate roles for those councils. 
3.  Workforce training center.  The Department of Health and Human Services, in 
consultation with the Department of Labor and the Maine Community College System, 
shall develop workforce training programs for child care workers providing services 
funded under the Universal Child Care Program established in the Maine Revised 
Statutes, Title 22, chapter 1606.  The Department of Health and Human Services shall 
submit a plan for establishing and funding the training programs by January 1, 2019 and 
shall by March 1, 2018 submit a report of its recommendations to the Joint Standing 
Committee on Health and Human Services. 
SUMMARY 
This bill establishes the Universal Child Care Program of universal child care for all 
individuals and families who are eligible.  Eligibility for universal child care is based on 
the age of the child.  Income is not a factor for eligibility.  The bill establishes the 
Universal Child Care Trust Fund, which is managed by a board composed of members 
who represent child care providers and consumers of child care services.  The board 
employs professional staff and receives advice from an advisory committee composed of 
the Commissioner of Health and Human Services, the Commissioner of Education and 
the Commissioner of Labor as well as the Treasurer of State, the President of the Senate 
and the Speaker of the House of Representatives.  Base funding for universal child care is 
from child care funds from the Temporary Assistance for Needy Families program and 
the federal Child Care and Development Fund block grant. 
To complete the funding for the Universal Child Care Program, the Department of 
Administrative and Financial Services, Bureau of Revenue Services is directed to develop 
and submit to the Joint Standing Committee on Health and Human Services draft 
legislation to establish universal child care taxes.  The taxes are to be structured to 
include 3 elements: a tax on wages that is substantially equivalent to the federal Social 
Security Act's Old-Age, Survivors, and Disability Insurance program tax, but that applies 
only to earnings above the annual contribution and benefit base of the federal tax; a 
self-employment tax applicable to taxpayers who are subject to the federal 
Self-Employment Contributions Act tax that is equivalent to that tax and applies to net 
earnings above the annual limit subject to taxation under that federal tax; and a tax equal 
to the wage and self-employment taxes that is imposed on unearned annual income and 
that applies in a manner similar to the federal Net Investment Income Tax.  The bill 
directs the Joint Standing Committee on Health and Human Services to report out a bill to 
the Second Regular Session of the 128th Legislature to establish universal child care 
taxes to fully fund the Universal Child Care Program.