This bill instructs the Department of Health and Human Services (DHHS) to establish rules regarding the definition of disability or special needs within the context of the child care scholarship program. The bill allows DHHS to halt the implementation of these rules if there is insufficient funding. The new definition of "disability" or "special needs" will include children who are at risk of or have delayed social or emotional development, without the need for a formal diagnosis or special education code. Eligibility will be determined through approved early childhood developmental screening tools, and the results must be verified by a child care provider and licensed treating clinician or other approved licensed professional.

The bill also includes an appropriation of $375,000 for the biennium ending June 30, 2025, to support the adoption and administration of the rules for the child care scholarship program. This appropriation will be funded by available federal funds, with the governor authorized to determine if any remaining discretionary funds from the American Rescue Plan Act of 2021 or other federal funds can be used for this purpose. If federal funds are not sufficient, the bill allows for up to $1 to be drawn from general funds. The act is set to take effect on January 1, 2025. The fiscal note indicates that the bill could cost approximately $743,600 per year, with an estimated impact of $372,000 in FY 2025. If federal funds are not available, DHHS may suspend implementation, leaving it uncertain whether the changes will be enacted in FY 2025.

Statutes affected:
Introduced: 167:83
As Amended by the Senate: 167:83
As Amended by the Senate (2nd): 167:83