A3888

An Act concerning child care subsidies and amending P.L.2021, c.324.

Be It Enacted by the Senate and General Assembly of the State of New Jersey:

1. The title of P.L.2021, c.324 is amended to read as follows:

An Act concerning State subsidies to child care providers, supplementing Title 30 of the Revised Statutes, and making an appropriation.

(cf: P.L.2021, c.324, Title)

2. Section 1 of P.L.2021, c.324 (C. ) is amended to read as follows:

1. a. For the period beginning on the effective date of P.L.2021, c.324 and ending June 30, [2022] 2025, and notwithstanding any law, rule, or regulation to the contrary and in addition to any other criteria set forth by the Division of Family Development in the Department of Human Services to determine a provider’s subsidy payment for child care services, the division shall determine the subsidy payment for child care services issued to a licensed child care center or a registered family day care provider based on the number of children enrolled with the provider who are eligible for child care services. At no time during this period shall a subsidy payment for child care services issued to a licensed child care center or a registered family day care provider be based on the attendance of eligible children for child care services.

b. (1) A licensed child care center or a registered family day care provider for which the subsidy payment is based on enrollment of children who are eligible for child care services shall comply at all times with requirements concerning the ratio of staff to enrolled children, as established pursuant to regulation by the Office of Licensing in the Department of Children and Families. At no time shall this ratio be based on the attendance of children eligible for child care services.

(2) A licensed child care center or a registered family day care provider receiving an enrollment-based subsidy payment pursuant to this section shall pay wages to its staff, and determine the number of hours worked by staff, based on the number of children enrolled with the provider who are eligible for child care services. At no time shall the amount of wages paid to staff or the number of hours worked by staff be based on the attendance of children eligible for child care services.

(3) A licensed child care center or a registered family day care provider receiving an enrollment-based subsidy payment pursuant to this section shall continue to receive such payments until the division issues the final report required pursuant to subsection c. of this section, at which time the division may consider to extend the payment of enrollment-based subsidies to licensed child care centers and registered family day care providers in accordance with P.L.2021, c.324 (C. ).

c. [Within 12 months following the effective date of this act, the division shall conduct a study and submit a written report to the Governor and, pursuant to section 2 of P.L.1991, c.164
(C.52:14-19.1), to the Legislature] The division shall conduct a study comparing the costs of basing child care provider subsidy payments on the number of children enrolled who are eligible for child care services and basing such subsidy payments on the number of children in attendance who are eligible for child care services. As part of the study and [report] the report issued pursuant to this section, the division may consider other measures that may be taken with respect to the payment of subsidies to licensed child care centers and registered family day care providers to ensure stability for providers and best serve families of children eligible for child care services.

The division shall issue a report on the study to the Governor and, pursuant to section 2 of P.L.1991, c.164 (C.52:14-19.1), to the Legislature within three years of the effective date of P.L. ,
c. (C. ) (pending before the Legislature as this bill) .

d. The Commissioner of Human Services shall apply for such State plan amendments or waivers as may be necessary to implement the provisions of this section and to continue to secure any available federal financial participation for the applicable child care programs.

e. As used in this section, “child care services” means those services provided to eligible children, as certified by the Division of Family Development within the Department of Human Services, for which the division receives and administers State and federal funding to provide subsidy payments to licensed child care centers and registered family day care providers.

(cf: P.L.2021, c.324, s.1)

3. This act shall take effect immediately.

STATEMENT

This bill extends the applicability of P.L.2021, c.324, which requires that subsidy payments to licensed child care providers be based on enrollment of students who are eligible for child care services, rather than on attendance, to provide that the provisions of the law continue for an additional three years, instead of expiring on June 30, 2022 as provided for in existing law.

The bill provides that a licensed child care provider or registered family day care provider receiving subsidy payments based on enrollment is required to pay wages to its staff, and determine the number of hours worked by staff, based on the number of children enrolled with the provider who are eligible for child care services. At no time will the amount of wages paid to staff or the number of hours worked by staff be based on the attendance of children eligible for child care services.

The bill stipulates that a licensed child care center or a registered family day care provider receiving subsidy payments based on enrollment will continue to receive such payments until the Division of Family Development (the division) in the Department of Human Services issues the report required pursuant to the bill, at which time the division may consider to extend the payment of enrollment-based subsidies to licensed child care centers and registered family day care providers in accordance with P.L.2021, c.324.

The bill requires the division to submit a report to the Governor and the Legislature on the study conducted under the provisions of P.L.2021, c.324 within three years following the effective date of the bill.