An Act To Reduce the Regulation of Child Care Facilities
Maine Legislature, Session 128, LD 1474
Committee: Health and Human Services
Sponsors: ESPLING, BRAKEY, HANINGTON, HAWKE, NADEAU, PICKETT, SANDERSON, STEARNS, WADSWORTH
Amends: 5 MRSA §12004-G, 22 MRSA §3737, 22 MRSA §3762, 22 MRSA §8359, 22 MRSA §3782-A, 22 MRSA §8301-A, 22 MRSA §8357, 22 MRSA §9057

Legislative Document
No. 1474
H.P. 1013
House of Representatives, April 18, 2017
An Act To Reduce the Regulation of Child Care Facilities
Reference to the Committee on Health and Human Services suggested and ordered printed.
ROBERT B. HUNT
Clerk
Presented by Representative ESPLING of New Gloucester.
Cosponsored by Senator BRAKEY of Androscoggin and
Representatives: HANINGTON of Lincoln, HAWKE of Boothbay Harbor, NADEAU of 
Winslow, PICKETT of Dixfield, SANDERSON of Chelsea, STEARNS of Guilford, 
WADSWORTH of Hiram.
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.  22 MRSA §3737, sub-§§4 and 5 are enacted to read: 
4.  Child care rates.  The department shall establish payment rates for child care 
services that are at least equal to the 75th percentile of local market rates for the various 
categories of child care services.  The payment rates for child care services for children 
with special needs must be higher than the 75th percentile of local market rates. 
5.  Choice of provider.  The recipient of a child care subsidy may pay out of pocket 
the difference between the amount of the subsidy provided by the department and the 
amount charged by a provider for a child care service. 
Sec. 3.  22 MRSA §3762, sub-§3, ¶B, as amended by PL 2015, c. 267, Pt. RRRR, 
§2, is further amended to read: 
B.  The department may use funds, insofar as resources permit, provided under and in 
accordance with the United States Social Security Act or state funds appropriated for 
this purpose or a combination of state and federal funds to provide assistance to 
families under this chapter.  In addition to assistance for families described in this 
subsection, funds must be expended for the following purposes: 
(1)  To continue the pass-through of the first $50 per month of current child 
support collections and the exclusion of the $50 pass-through from the budget 
tests and benefit calculations; 
(2)  To provide financial assistance to noncitizens legally admitted to the United 
States who are receiving assistance under this subsection as of July 1, 2011.  
Recipients of assistance under this subparagraph are limited to the categories of 
noncitizens who would be eligible for the TANF programs but for their status as 
aliens under PRWORA.  Eligibility for the TANF program for these categories of 
noncitizens must be determined using the criteria applicable to other recipients of 
assistance from the TANF program. Any household receiving assistance as of  
July 1, 2011 may continue to receive assistance, as long as that household 
remains eligible, without regard to interruptions in coverage or gaps in eligibility 
for service. A noncitizen legally admitted to the United States who is neither 
receiving assistance on July 1, 2011 nor has an application pending for assistance 
on July 1, 2011 that is later approved is not eligible for financial assistance 
through a state-funded program unless that noncitizen is: 
(a)  Elderly or disabled, as described under the laws governing supplemental 
security income in 42 United States Code, Sections 1381 to 1383f (2010); 
(b)  A victim of domestic violence;  
Human Services 
Child Care Appeal 
Review Panel 
Expenses Only 
MRSA §8359 
(c)  Experiencing other hardship, such as time necessary to obtain proper 
work documentation, as defined by the department by rule. Rules adopted by 
the department under this division are routine technical rules as defined by 
Title 5, chapter 375, subchapter 2-A; or 
(d)  Unemployed but has obtained proper work documentation, as defined by 
the department by rule.  Rules adopted by the department under this division 
are routine technical rules as defined by Title 5, chapter 375, subchapter 2-A; 
(3)  To provide benefits to certain 2-parent families whose deprivation is based 
on physical or mental incapacity; 
(4)  To provide an assistance program for needy children, 19 to 21 years of age, 
who are in full-time attendance in secondary school.  The program is operated for 
those individuals who qualify for TANF under the United States Social Security 
Act, except that they fail to meet the age requirement, and is also operated for the 
parent or caretaker relative of those individuals.  Except for the age requirement, 
all provisions of TANF, including the standard of need and the amount of 
assistance, apply to the program established pursuant to this subparagraph; 
(5)  To provide assistance for a pregnant woman who is otherwise eligible for 
assistance under this chapter, except that she has no dependents under 19 years of 
age.  An individual is eligible for the monthly benefit for one eligible person if 
the medically substantiated expected date of the birth of her child is not more 
than 90 days following the date the benefit is received; 
(6)  To provide a special housing allowance for TANF families whose shelter 
expenses for rent, mortgage or similar payments, homeowners insurance and 
property taxes equal or exceed 75% of their monthly income.  The special 
housing allowance is limited to $200 per month for each family.  For purposes of 
this subparagraph, "monthly income" means the total of the TANF monthly 
benefit and all income countable under the TANF program, plus child support 
received by the family, excluding the $50 pass-through payment; 
(7)  In determining benefit levels for TANF recipients who have earnings from 
employment, the department shall disregard from monthly earnings the 
following: 
(a)  One hundred and eight dollars; 
(b)  Fifty percent of the remaining earnings that are less than the federal 
poverty level; and 
(c)  All actual child care costs necessary for work, except that the department 
may limit the child care disregard to $175 per month per child or $200 per 
month per child under 2 years of age or with special needs; 
(7-A)  In determining eligibility and benefit levels, the department may apply a 
gross income test only to applicants and not to recipients; 
(8)  In cases when the TANF recipient has no child care cost, the monthly TANF 
benefit is the maximum payment level or the difference between the countable 
earnings and the standard of need established by rule adopted by the department, 
whichever is lower; 
(9)  In cases when the TANF recipient has child care costs, the department shall 
determine a total benefit package, including TANF cash assistance, determined in 
accordance with subparagraph (7) and additional child care assistance, as 
provided by rule, necessary to cover the TANF recipient's actual child care costs 
up to the maximum amount specified in section 3782-A, subsection 5.  The 
benefit amount must be paid as provided in this subparagraph. 
(a)  Before the first month in which child care assistance is available to an 
ASPIRE-TANF recipient under this paragraph and periodically thereafter, the 
department shall notify the recipient of the total benefit package and the 
following options of the recipient: to receive the total benefit package 
directly; or to have the department pay the recipient's child care assistance 
directly to the designated child care provider for the recipient and pay the 
balance of the total benefit package to the recipient. 
(b)  If an ASPIRE-TANF recipient notifies the department that the recipient 
chooses to receive the child care assistance directly, the department shall pay 
the total benefit package to the recipient. 
(c)  If an ASPIRE-TANF recipient does not respond or notifies the 
department of the choice to have the child care assistance paid directly to the 
child care provider from the total benefit package, the department shall pay 
the child care assistance directly to the designated child care provider for the 
recipient.  The department shall pay the balance of the total benefit package 
to the recipient;. 
(d)  An ASPIRE-TANF recipient may choose to pay the difference out of 
pocket between the amount of child care subsidy provided by the department 
and the amount charged by a provider for a child care service. 
The department shall notify the designated child care provider of an 
ASPIRE-TANF recipient's eligibility for child care assistance, any changes to 
eligibility, including renewals and information requests, and advanced notice of 
no less than 4 weeks of ineligibility as long as the ASPIRE-TANF recipient 
authorizes the communication between the designated child care provider and the 
department; 
(10)  Child care assistance under this paragraph must be paid by the department 
in a prompt manner that permits an ASPIRE-TANF recipient to access child care 
necessary for work; and 
(11)  The department shall adopt rules pursuant to Title 5, chapter 375 to 
implement this subsection.  Rules adopted pursuant to this subparagraph are 
routine technical rules as defined in Title 5, chapter 375, subchapter 2-A. 
Sec. 4.  22 MRSA §3762, sub-§8, ¶E, as enacted by PL 2009, c. 291, §6, is 
repealed and the following enacted in its place: 
E.  The department shall establish payment rates for child care services that are at 
least equal to the 75th percentile of local market rates for the various categories of 
child care services.  The payment rates for child care services for children with 
special needs must be higher than the 75th percentile of local market rates. 
Sec. 5.  22 MRSA §3782-A, sub-§5, as enacted by PL 1997, c. 530, Pt. A, §19, is 
repealed and the following enacted in its place: 
5.  Child care during participation in employment, education and training.  The 
department shall provide child care in accordance with federal law and this Title when the 
child care is necessary to permit a TANF-eligible family member to participate in the 
ASPIRE-TANF program. 
A.  The department shall establish payment rates for child care services that are at 
least equal to the 75th percentile of local market rates for the various categories of 
child care services.  The payment rates for child care services for children with 
special needs must be higher than the 75th percentile of local market rates. 
B.  The department shall provide an ASPIRE-TANF program participant's actual cost 
for child care up to the maximum rate authorized by federal law.  In determining the 
maximum rate, the State shall use a method that results in an amount that equals, or 
most closely approaches, the actual market rate in different regions of the State for 
various types of child care services received by families in the State participating in 
the ASPIRE-TANF program. 
C.  An ASPIRE-TANF program participant may choose to pay out of pocket the 
difference between the amount of the subsidy provided by the department and the 
amount charged by a provider for a child care service. 
Sec. 6.  22 MRSA §8301-A, sub-§1-A, as amended by PL 2009, c. 211, Pt. B, 
§§20 and 21, is further amended to read: 
1-A.  Definitions.  As used in this chapter, unless the context otherwise indicates, the 
following terms have the following meanings. 
A.  "Child care center" means: 
(1)  A house or other place in which a person maintains or otherwise carries out a 
regular program, for consideration, for any part of a day providing care and 
protection for 13 or more children under 13 years of age; or 
(2)  Any location or locations operated as a single child care program or by a 
person or persons when there are more than 12 children being cared for. 
B.  "Child care facility" means a child care center, small child care facility or nursery 
school.  "Child care facility" does not include a facility operated by a family child 
care provider, a youth camp licensed under section 2495, programs offering 
instruction to children for the purpose of teaching a skill such as karate, dance or 
basketball, a formal public or private school in the nature of a kindergarten or 
elementary or secondary school approved by the Commissioner of Education in 
accordance with Title 20-A or a private school recognized by the Department of 
Education as a provider of equivalent instruction for the purpose of compulsory 
school attendance.  Any program for children under 5 years of age that is located in a 
private school and programs that contract with one or more Child Development 
Services System sites are required to be licensed as a child care facility. 
C.  "Family child care provider" means a person who provides day care in that 
person's home on a regular basis, for consideration, for 3 5 to 12 children under 13 
years of age who are not the children of the provider or who are not residing in the 
provider's home.  If a provider is caring for children living in that provider's home 
and is caring for no more than 2 4 other children, the provider is not required to be 
certified as a family child care provider. 
D.  "Nursery school" means a house or other place in which a person or combination 
of persons maintains or otherwise carries out for consideration during the day a 
regular program that provides care for 3 5 or more children 33 months of age or older 
and under 8 years of age, provided that as long as: 
(1)  No session conducted for the children is longer than 3 1/2 hours in length; 
(2)  No more than 2 sessions are conducted per day; 
(3)  Each child in attendance at the nursery school attends only one session per 
day; and 
(4)  No hot meal is served to the children. 
"Nursery school" does not include any facility operated as a child care center or small 
child care facility licensed under subsection 2, a youth camp licensed under section 
2495 or a public or private school in the nature of a kindergarten approved by the 
Commissioner of Education, in accordance with Title 20-A. 
E.  "Small child care facility" means a house or other place, not the residence of the 
operator, in which a person or combination of persons maintains or otherwise carries 
out a regular program, for consideration, for any part of a day providing care and 
protection for 3 5 to 12 children under 13 years of age. 
Sec. 7.  22 MRSA §8301-A, sub-§2, as amended by PL 2005, c. 640, §2, is 
further amended to read: 
2.  Child care facility licensure.  The owner or operator of a child care facility shall 
pay the licensing fee required under section 8303-A.  A child care facility must be 
licensed under this chapter and must comply with the rules adopted by the commissioner 
under section 8302-A and the fire safety requirements of section 8304-A.  The 
department shall make at least one unannounced inspection of a child care facility 
licensed under this chapter during the term of the license.  The inspection must take place 
between 6 and 18 months after the issuance of the license.  A licensed child care facility 
that has been continuously in operation for a minimum of 5 years and has completed 
satisfactory inspections pursuant to this subsection is eligible for a license for 5 years at 
the time of the next regular license renewal.  Except as otherwise provided, a nursery 
school must meet the requirements of this chapter and chapter 1675. 
Sec. 8.  22 MRSA §8301-A, sub-§3, as amended by PL 2005, c. 640, §3, is 
further amended to read: 
3.  Family child care provider certification.  A family child care provider shall pay 
the certification fee required under section 8303-A.  A family child care provider must be 
certified under this chapter and shall comply with the rules adopted by the commissioner 
under section 8302-A and the fire safety requirements of section 8304-A.  The 
department shall make at least one unannounced inspection of a family child care 
provider certified under this chapter during the term of the certificate.  The inspection 
must take place between 6 and 18 months after the issuance of the certificate.  A certified 
family child care provider that has been continuously in operation for a minimum of 5 
years and has completed satisfactory inspections pursuant to this subsection is eligible for 
a certification for 5 years at the time of the next regular certification renewal. 
Sec. 9.  22 MRSA §8301-A, sub-§4, as amended by PL 2005, c. 530, §7, is 
further amended to read: 
4.  Complaints.  Upon receipt of a complaint about a licensed child care facility or a 
certified family child care provider and if the department has reasonable cause to suspect 
that a violation of the licensure or certification requirements has occurred, the department 
may investigate the complaint and enter the premises at any reasonable time for the 
purposes of the investigation as long as any inspection undertaken relates only to the 
complaint. 
Sec. 10.  22 MRSA §8357, sub-§5, as enacted by PL 2015, c. 283, §3, is repealed. 
Sec. 11.  22 MRSA c. 1674-A is enacted to read: 
CHAPTER 1674-A 
CHILD CARE APPEAL REVIEW PANEL 
§8359.  Child Care Appeal Review Panel 
The Child Care Appeal Review Panel, established by Title 5, section 12004-G, 
subsection 14-I, referred to in this chapter as "the review panel," shall review disputes 
between a child care facility, a family child care provider or a nursery school, as those 
terms are defined in section 8301-A, collectively referred to in this chapter as "the 
facility," and the department relating to compliance with licensing or certification, 
complaints and disputes but not investigations of out-of-home child abuse and neglect. 
1.  Membership.  The review panel has 10 voting members appointed by the 
Governor as follows: 
A.  Three early childhood professionals; 
B.  One pediatric health care professional; 
C.  One parent of a child in a licensed child care facility or certified family child care 
provider; and 
D.  Five members representing a range of facilities from different geographic areas of 
the State. 
The director of the division of licensing and regulatory services or the director's designee 
shall chair the review panel and act as a nonvoting member. 
2.  Legal counsel.  The review panel receives legal counsel from the Office of the 
Attorney General. 
3.  Terms.  Members of the review panel are appointed for 5-year terms.  A member 
of the review panel appointed to fill a vacancy occurring otherwise than by expiration of 
a term is appointed only for the unexpired term of the member succeeded. 
4.  Duties.  The review panel shall review disputes between the department and a 
facility.  The review panel shall review the records, conduct any interviews or inspections 
considered necessary, make a determination regarding findings of fault and, if necessary, 
determine appropriate action by the department or the facility.  Disputes subject to appeal 
include the following: 
A.  Revocation or suspension of a license or certification to operate a facility; 
B.  Denial of an application for a license or certification to operate a facility; 
C.  Conversion of a license or certification from regular to conditional status; 
D.  Disputes between facilities and the department concerning compliance with rules; 
and 
E.  Denials of alternative compliance requests. 
5.  Timely review of disputes.  A facility that is aggrieved by a decision by the 
department related to a dispute subject to the review panel must file a request for the 
review panel to review the dispute within 30 days of receiving the decision by the 
department.  The review panel shall schedule an initial meeting to review the dispute 
within 14 days of a request by a facility.  A final decision on the dispute must be made no 
later than 30 days after the review panel has met to review the dispute.  Any review 
conducted by the review panel must be in accordance with Title 5, chapter 375, 
subchapter 7. 
6.  Authority.  The department and the facility shall act according to the final 
decision by the review panel. 
Sec. 12.  22 MRSA §9057, sub-§4, as enacted by PL 2015, c. 299, §25, is 
amended to read: 
4.  Conditional employment.  In accordance with subsection 2, an employer may 
employ an individual as a direct access worker on a conditional basis for up to 60 
calendar days, or in a child care facility for up to 90 days, before the employer receives a 
final background check report or from the date the employer receives a disqualifying 
background report on the following conditions: 
A.  The employer initiates the background check by entering the individual into the 
Background Check Center database as a conditionally employed worker; 
B.  The individual is not identified in the Background Check Center database as a 
disqualified person based on an earlier background check; 
C.  The individual has agreed to submit to the steps necessary to comply with this 
chapter, including taking substantial steps toward correcting inaccurate data in the 
disqualifying background check report if applicable; 
D.  The individual signs a statement declaring that a background check will not reveal 
a disqualifying offense or that an offense that appears is inaccurate; 
E.  The employer verifies and documents that the individual has submitted the 
mandatory identity verification and employment eligibility documents required by 
rules adopted in accordance with this chapter; and 
F.  The individual is subject to direct personal supervision during the course of the 
conditional employment as described in rules adopted pursuant to this chapter. 
Sec. 13.  PL 2011, c. 380, Pt. UU is repealed. 
Sec. 14.  Department of Health and Human Services to develop welfare 
cliff plan.  The Department of Health and Human Services shall develop a plan for a 
sliding scale of income and subsidy to eliminate the so-called welfare cliff as it relates to 
child care subsidies so that an individual continues to receive some amount of subsidy for 
a period of time after reaching certain income thresholds.  The department shall report the 
plan to the Joint Standing Committee on Health and Human Services no later than 
January 30, 2018.  The committee is authorized to report out a bill regarding the plan to 
eliminate the welfare cliff to the Second Regular Session of the 128th Legislature. 
Sec. 15.  Department of Health and Human Services to amend child care 
facility rules.  No later than January 1, 2018, the Department of Health and Human 
Services shall amend Office of Child and Family Services rule Chapter 32: Rules for the 
Licensing of Child Care Facilities to make the following changes: 
1.  Remove the requirement for a minimum space of 35 square feet per child; 
2.  Allow for extenuating circumstances when child care facilities cannot meet 
staff-child ratios to allow for unusual circumstances as long as the facility documents the 
situation; 
3.  Change the staff-child ratios as follows:  one staff person to 6 infants up to 12 
months of age with a maximum of 10 children in the room; one staff person to 7 children 
to 24 months of age with a maximum of 12 children in the room; one staff person to 
children 24 to 36 months of age with a maximum of 20 children in the room; one staff 
person to 18 children 36 months to 4 years of age with a maximum of 30 children in the 
room; one staff person to 20 children 4 to 5 years of age with a maximum of 36 children 
in the room; and one staff person to 25 children 5 years of age and older with no 
maximum for children in the room.  Staff that are employed on a conditional basis 
pursuant to the Maine Revised Statutes, Title 22, section 9057, subsection 4 are included 
as staff for the purpose of the staff-child ratios.  The ratio for children of mixed ages 
should be an average of the groups for staff-child ratios; 
4.  Allow for a change in staff-child ratios when a child is within 6 months of the age 
that would result in lower staff-child ratios as long as the change is developmentally 
appropriate for the child; 
5.  Remove the authority of the department to post inspection reports and reports of 
violations on the department's publicly accessible website except for criminal and child 
abuse reports.  Criminal and child abuse reports may be posted only after any appeals 
process has been completed; 
6.  Require the department to act in a respectful manner when posting or removing an 
action plan to address violations; 
7.  Require the department to provide the facility with a copy of all notes relating to 
an inspection or investigation prior to leaving the facility; 
8.  Allow a child care facility access to all records kept by the department relating to 
that child care facility at no cost to the facility and in a timely fashion; 
9.  Require the department to notify a child care facility of any information regarding 
the facility that is shared with parents, the public or the media for any reason including a 
freedom of access request or inquiries related to posted or unposted information about the 
facility; 
10.  Require that persons conducting inspections for the department provide one hour 
of advance notice to the director and owner of the facility of the intention to conduct an 
inspection; 
11.  Require the department to notify a child care facility if the individual who 
regularly inspects the facility changes; 
12.  Allow a facility license to be issued to a corporation; 
13.  Set licensing fees for 5-year licenses at 150% of the 2-year license fee; 
14.  Require the department to refund a license fee if the department does not issue 
the license; 
15.  Remove the requirement for the department to be notified of a change in director 
at a facility; 
16.  Remove the requirement for references to be supplied to the department for a 
license application; 
17.  Remove the requirement for personnel files of the director, owner, administrator, 
staff members and volunteers to include references; 
18.  Remove the requirement for the facility to provide extra clothing for 
preschool-aged children; 
19.  Remove requirements for the specific types of food provided in facilities; 
20.  Remove the requirement that dishes and nursing bottles must be made of 
unbreakable materials; and 
21.  Remove requirements for staff qualifications at child care centers. 
Rules adopted pursuant to this section are routine technical rules as defined in the 
Maine Revised Statutes, Title 5, chapter 375, subchapter 2-A. 
Sec. 16.  Department of Health and Human Services to amend family 
child care provider rules.  No later than January 1, 2018, the Department of Health 
and Human Services shall amend Office of Child and Family Services rule Chapter 33: 
Rules for the Certification of Family Child Care Providers to make the following 
changes: 
1.  Define an infant as 0 to 12 months of age and a toddler as one to 3 years of age for 
the purposes of staff-child ratios; 
2.  Change the staff-child ratios as follows:  one staff person to 6 infants up to 12 
months of age with a maximum of 10 children in the room; one staff person to 7 children 
to 24 months of age with a maximum of 12 children in the room; one staff person to 
children 24 to 36 months of age with a maximum of 20 children in the room; one staff 
person to 18 children 36 months to 4 years of age with a maximum of 30 children in the 
room; one staff person to 20 children 4 to 5 years of age with a maximum of 36 children 
in the room; and one staff person to 25 children 5 years of age and older with no 
maximum for children in the room.  Staff that are employed on a conditional basis 
pursuant to the Maine Revised Statutes, Title 22, section 9057, subsection 4 are included 
as staff for the purpose of the staff-child ratios.  The ratio for children of mixed ages 
should be an average of the groups for staff-child ratios; 
3.  Allow for a change in staff-child ratios when a child is within 6 months of the age 
that would result in lower staff-child ratios as long as it is developmentally appropriate 
for the child; 
4.  Remove the authority of the department to post inspection reports and reports of 
violations on the department's publicly accessible website except for criminal and child 
abuse reports; 
5.  Require the department to act in a respectful manner when posting or removing an 
action plan to address violations; 
6.  Require the department to provide the child care provider with a copy of all notes 
relating to an inspection or investigation prior to leaving the premises of the child care 
provider; 
7.  Allow a child care provider access to all records kept by the department relating to 
that child care provider at no cost to the provider and in a timely fashion; 
8.  Require the department to notify a child care provider of any information 
regarding the provider that is shared with parents, the public or the media for any reason 
including a freedom of access request or inquiries related to posted or unposted 
information about the provider; 
9.  Require that persons conducting inspections for the department provide one hour 
of advance notice to the director and owner of a child care facility of the intention to 
conduct an inspection.  For a home provider, the department must give 2 hours of notice 
to allow the provider to bring in a support witness; 
10.  Require the department to notify a child care provider if the individual who 
regularly inspects the facility changes; 
11.  Allow a child care provider certification to be issued to a corporation; 
12.  Set certification fees for 5-year certifications at 150% of the 2-year certification 
fee; 
13.  Require the department to refund a certification fee if the department does not 
issue the certification; 
14.  Remove the requirement for references to be supplied to the department for a 
certification application; 
15.  Remove the requirement for the child care provider to provide extra clothing for 
preschool-aged children; 
16.  Remove requirements for the specific types of food provided by child care 
providers; and 
17.  Remove the requirement that dishes and nursing bottles be made of unbreakable 
materials. 
Rules adopted pursuant to this section are routine technical rules as defined in the 
Maine Revised Statutes, Title 5, chapter 375, subchapter 2-A. 
Sec. 17.  Staggered terms of Child Care Appeal Review Panel.  
Notwithstanding the Maine Revised Statutes, Title 22, section 8359, subsection 3, of the 
members first appointed by the Governor to the Child Care Appeal Review Panel 
pursuant to Title 22, section 8359, subsection 1, the Governor shall designate one 
member whose term is one year, one member whose term is 2 years, one member whose 
term is 3 years and one member whose term is 4 years.  The balance of members serve 
for 5 years. 
SUMMARY 
This bill makes a number of changes to the child care system in the State. 
1.  It repeals Public Law 2011, chapter 380, Part UU, which set the child care subsidy 
payment rates of the Department of Health and Human Services at the 50th percentile of 
local market rates.  This bill increases the payment rates to the 75th percentile of local 
market rates for payments the department makes on behalf of recipients of benefits under 
the child care subsidy program, recipients of benefits under TANF and recipients of 
benefits under ASPIRE-TANF. 
2.  It allows recipients of child care subsidies to pay the difference out of pocket 
between the amount of subsidy received and the amount charged by the child care 
provider. 
3.  It exempts from licensure family child care providers, nursery schools and small 
child care facilities that care for fewer than 5 children.  Current law maintains this 
exemption for fewer than 3 children. 
4.  It establishes a 5-year license and certification for child care providers that have 
been continuously in business without compliance violations.  The cost of a 5-year 
license or certification is 150% of the current 2-year license or certification. 
5.  It specifies that when an inspection is prompted by a complaint the investigator 
may investigate only the specific complaint and not conduct an inspection that is 
unrelated to the complaint. 
6.  It removes the authority of the department to post complaints and investigation 
results on the department's website. 
7.  It establishes the Child Care Appeal Review Panel to review disputes related to 
the licensing and certification of child care facilities.  This includes revocations, 
suspensions, denials, demotions to conditional status, rule compliance issues and denials 
of requests for alternative compliance methods.  The review panel members are appointed 
by the Governor for 5-year terms.  The director of the office of licensing and regulatory 
services within the department is the chair of the panel but does not vote.  The Office of 
the Attorney General provides legal counsel to the review panel.  The department is 
required to abide by decisions made by the review panel. 
8.  It allows a child care provider to employ on a provisional basis an employee for 
days before receiving a background check report from the Background Check Center. 
9.  It requires the department to develop a sliding scale plan to allow recipients of 
child care subsidies to keep part of the subsidy for a period of time after the recipient 
earns sufficient income to no longer be eligible for the subsidy.  The Joint Standing 
Committee on Health and Human Services is authorized to report out a bill relating to 
eliminating the so-called welfare cliff with respect to child care subsidies after receiving 
the plan. 
10.  It requires the department to make a number of changes to rules governing 
licensed child care facilities and certified family child care providers regarding staff-child 
ratios, qualifications of staff, providing inspection reports to facilities at the time of 
inspection, removing requirements for references for owners and staff, removing 
requirements of spare clothing and removing specific requirements for the type of food 
provided.