SB 191

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1AN ACT relating to the Kentucky Kindergarten Readiness Performance-Based
2 Child Care Incentive Pilot Program.
3WHEREAS, providing performance-based incentives to diverse types of early
4 childhood education and child-care providers leads to the expansion of services across the
5 Commonwealth; and
6WHEREAS, providing performance-based incentives to low-income parents of
7 children not receiving services from early childhood education and child-care providers,
8 Head Start, or public Pre-K is a way to encourage parents to prepare their children for
9 kindergarten; and
10WHEREAS, providing performance-based incentives increases the number of
11 children entering school kindergarten ready, which positively impacts future educational
12 attainment; and
13WHEREAS, providing performance-based incentives encourages early childhood
14 education and child-care providers to provide services for children with special needs;
15 and
16WHEREAS, providing performance-based incentives would ensure positive growth
17 and improved quality of care for infant and toddler care programs;
18NOW, THEREFORE,
19 Be it enacted by the General Assembly of the Commonwealth of Kentucky:
20SECTION 1. A NEW SECTION OF KRS CHAPTER 199 IS CREATED TO
21 READ AS FOLLOWS:
22 (1)     As used in this section:
23(a)     "Cabinet" means the Cabinet for Health and Family Services;
24(b)     "Type I child-care center" means a child-care center licensed by the cabinet
25to regularly provide child care services for:
261.      Four (4) or more children in a nonresidential setting; or
272.      Thirteen (13) or more children in a designated space separate from the
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1primary residence of a licensee;
2(c)     "Type II child-care center" means a child-care center that is the primary
3residence of the licensee in which child care is regularly provided for at
4least seven (7) but not more than twelve (12) children, including children
5related to the licensee; and
6(d)     "University" means the University of Kentucky.
7 (2)     By August 1, 2026, the university shall establish and operate the Kentucky
8Kindergarten Readiness Performance-Based Child Care Incentive Pilot Program,
9which shall operate from August 1, 2027, until July 31, 2029.
10 (3)     The pilot program shall:
11(a)     Determine how to provide performance-based incentives to diverse types of
12early childhood education providers, child-care providers, and low-income
13parents in order to increase the number of children in the Commonwealth
14who are assessed as kindergarten ready;
15(b)     Determine how to best assess applicants and distribute moneys;
16(c)     Develop a written plan and implement assessment processes to determine
17kindergarten readiness for children in the Commonwealth. The university
18shall convene a working group to assist in the development of the written
19plan and assessment processes;
20(d)     Ensure that participants in the pilot program represent geographically and
21socioeconomically diverse areas of the Commonwealth;
22(e)     Evaluate the impact of performance-based incentives implemented through
23the pilot program using a rigorous design framework that supports causal
24inferences;
25(f)     Design, identify, and make available resources for parents to assist them in
26preparing children for kindergarten readiness;
27(g)     Determine how to award funds, including but not limited to direct payments
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1or refundable tax credits, to licensed Type I and Type II child-care centers;
2cabinet-regulated early childhood education providers, certified child-care
3homes, and registered providers; and single or married parents who qualify
4for the child-care subsidy administered by the cabinet pursuant to KRS
5199.8994. To be eligible for funds:
61.      A provider or a home shall maintain services for infants and toddlers
7at a ratio established by the Division of Child Care within the cabinet;
82.      A provider or a home shall maintain and submit accurate and detailed
9records of care for any child; and
103.      A parent shall submit records to verify he or she meets the
11requirements to receive child care subsidy funds under KRS 199.8994;
12(h)     Establish a standard for awarding a two thousand dollar ($2,000) one (1)
13time award, including but not limited to direct payments or refundable tax
14credits, per child once a child is designated by the assessment processes as
15kindergarten ready as follows:
161.      A full award to a licensed Type I or Type II child-care center or
17cabinet-regulated early childhood education provider, certified child-
18care home, or registered provider who meets the requirements of
19paragraph (g) of this subsection if the kindergarten-ready child
20received full-time services from the center or provider the two (2) years
21prior to the assessment;
222.      A full award to a single or married parent who meets the requirements
23of paragraph (g) of this subsection if the kindergarten-ready child was
24cared for in the home the two (2) years prior to the assessment,
25regardless of the utilization of a babysitter;
263.      A full award to a licensed Type I or Type II child-care center or
27cabinet-regulated early childhood education provider, certified child-
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1care home, or registered provider who meets the requirements of
2paragraph (g) of this subsection if the child cannot be properly
3assessed as a kindergarten-ready child because of a formal diagnosis
4of a disability and the child received full-time services from the
5provider the two (2) years prior to the assessment;
64.      A half award to a licensed Type I or Type II child-care center or
7cabinet-regulated early childhood education provider, certified child-
8care home, or registered provider who meets the requirements of
9paragraph (g) of this subsection if the kindergarten-ready child
10received half-day services from the center and attended public
11preschool the two (2) years prior to the assessment; and
125.      Split awards may be granted to individuals or providers based on who
13provided full-time services or cared for the child in the two (2) years
14prior to the assessment; and
15(i)     Ensure compliance with federal regulations, including but not limited to the
16Quality Rating and Improvement Systems as established under 45 C.F.R. pt.
1798.
18 (4)     By January 1, 2030, the university shall submit a report to the cabinet and the
19Legislative Research Commission for referral to the Interim Joint Committees on
20Families and Children, Education, and Appropriations and Revenue that:
21(a)     Details the findings of the pilot program;
22(b)     If the pilot program proves successful:
231.      Identifies specific mechanisms for change, including but not limited to
24educational curricula and family practices to best prepare preschool-
25age children for kindergarten readiness;
262.      Includes recommendations based on the pilot program's results for
27optimizing  performance-based     child   care   incentives   in   the
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1Commonwealth; and
23.      Includes recommendations and potential obstacles for implementing
3the program at scale;
4(c)     Details the assessment processes used to determine kindergarten readiness;
5(d)     Identifies the rates of kindergarten readiness at the end of the pilot
6program; and
7(e)     Includes all data generated from the pilot program, which shall be made
8available for public review and use in accordance with applicable federal,
9state, and institutional review board policies.
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