CHILD CARE: ASSISTANCE/GRANTS, the official text

Enrolled SB 95 
 Relating to the child care assistance program and the child care grant program; and providing 
 for an effective date. 
 _______________ 
 * Section 1. AS 47.05.030(a) is amended to read: 
 (a) Except as provided in (b) and (c) of this section and for purposes directly 
 connected with the administration of general assistance, adult public assistance, the 
 day [CHILD] care assistance program authorized under AS 47.25.001 - 47.25.095, or 
 the Alaska temporary assistance program, and in accordance with the regulations of 
 the department, a person may not solicit, disclose, receive, make use of, or authorize, 
 knowingly permit, participate in, or acquiesce in the use of, a list of or names of, or 
 information concerning, persons applying for or receiving the assistance directly or 
 indirectly derived from the records, papers, files, or communications of the department 
 or subdivisions or agencies of the department, or acquired in the course of the 
 performance of official duties.

* Sec. 2. AS 47.05.030(a), as amended by sec. 1 of this Act, is amended to read: 
 (a) Except as provided in (b) and (c) of this section and for purposes directly 
 connected with the administration of general assistance, adult public assistance, the 
 child [DAY] care assistance program authorized under AS 47.25.001 - 47.25.095, or 
 the Alaska temporary assistance program, and in accordance with the regulations of 
 the department, a person may not solicit, disclose, receive, make use of, or authorize, 
 knowingly permit, participate in, or acquiesce in the use of, a list of or names of, or 
 information concerning, persons applying for or receiving the assistance directly or 
 indirectly derived from the records, papers, files, or communications of the department 
 or subdivisions or agencies of the department, or acquired in the course of the 
 performance of official duties. 
 * Sec. 3. AS 47.05.085(a) is amended to read: 
 (a) The commissioner or the commissioner's designee at the director level may 
 issue subpoenas to compel the production of books, papers, correspondence, 
 memoranda, and other records considered necessary as evidence in connection with an 
 investigation under or the administration of AS 47.07 (medical assistance), AS 47.08 
 (assistance for catastrophic illnesses and acute or chronic medical conditions), 
 AS 47.25 (day [CHILD] care assistance, child care grants, general relief, adult public 
 assistance, and food stamps), and AS 47.27 (Alaska temporary assistance program). 
 * Sec. 4. AS 47.05.085(a), as amended by sec. 3 of this Act, is amended to read: 
 (a) The commissioner or the commissioner's designee at the director level may 
 issue subpoenas to compel the production of books, papers, correspondence, 
 memoranda, and other records considered necessary as evidence in connection with an 
 investigation under or the administration of AS 47.07 (medical assistance), AS 47.08 
 (assistance for catastrophic illnesses and acute or chronic medical conditions), 
 AS 47.25 (child [DAY] care assistance, child care grants, general relief, adult public 
 assistance, and food stamps), and AS 47.27 (Alaska temporary assistance program). 
 * Sec. 5. AS 47.25.001(a) is amended to read: 
 (a) The department shall 
 (1) implement and administer a program to assist in providing day 
 [CHILD] care for the children of low and moderate income families according to the

requirements of AS 47.25.001 - 47.25.095; 
 (2) establish standards of eligibility for day [CHILD] care benefits [; 
 THE STANDARDS MUST PROVIDE THAT THE MAXIMUM MONTHLY 
 HOUSEHOLD INCOME FOR A FAMILY TO BE ELIGIBLE FOR THE 
 PROGRAM IS 105 PERCENT OF THE MEDIAN MONTHLY HOUSEHOLD 
 INCOME IN THE STATE, ADJUSTED FOR FAMILY SIZE, UNLESS THE 
 FAMILY IS OTHERWISE EXEMPT FROM INCOME ELIGIBILITY 
 REQUIREMENTS]; 
 (3) contract for the care of children of eligible families; 
 (4) establish procedures to periodically review the needs of families 
 receiving day [CHILD] care benefits; 
 (5) provide notification to the local government body of the request for 
 a contract with a day [CHILD] care facility; 
 (6) establish an electronic application for assistance and allow an 
 applicant to submit an application in electronic format or in other formats required by 
 state and federal law; the electronic application must inform an applicant that a false 
 statement made on the application will be investigated and is punishable under 
 AS 11.56.210 [; 
 (7) ESTABLISH A PROGRAM TO PARTNER WITH PRIVATE 
 SECTOR ENTITIES TO CREATE INCENTIVES FOR EMPLOYERS TO 
 DEVELOP ON-SITE OR NEAR-SITE CHILD CARE]. 
 * Sec. 6. AS 47.25.001(a), as amended by sec. 5 of this Act, is amended to read: 
 (a) The department shall 
 (1) implement and administer a program to assist in providing child 
 [DAY] care for the children of low and moderate income families according to the 
 requirements of AS 47.25.001 - 47.25.095; 
 (2) establish standards of eligibility for child [DAY] care benefits; the 
 standards must provide that the maximum monthly household income for a 
 family to be eligible for the program is 105 percent of the median monthly 
 household income in the state, adjusted for family size, unless the family is 
 otherwise exempt from income eligibility requirements;

(3) contract for the care of children of eligible families; 
 (4) establish procedures to periodically review the needs of families 
 receiving child [DAY] care benefits; 
 (5) provide notification to the local government body of the request for 
 a contract with a child [DAY] care facility; 
 (6) establish an electronic application for assistance and allow an 
 applicant to submit an application in electronic format or in other formats required by 
 state and federal law; the electronic application must inform an applicant that a false 
 statement made on the application will be investigated and is punishable under 
 AS 11.56.210; 
 (7) establish a program to partner with private sector entities to 
 create incentives for employers to develop on-site or near-site child care. 
 * Sec. 7. AS 47.25.011 is amended to read: 
 Sec. 47.25.011. Administrative costs of program contractors. To defray 
 administrative expenses, a contractor under AS 47.25.001(b) may only retain $1,000 
 or 12 percent, whichever is greater, of the day [CHILD] care assistance program funds 
 it receives from the department under the contract. 
 * Sec. 8. AS 47.25.011, as amended by sec. 7 of this Act, is amended to read: 
 Sec. 47.25.011. Administrative costs of program contractors. To defray 
 administrative expenses, a contractor under AS 47.25.001(b) may only retain $1,000 
 or 12 percent, whichever is greater, of the child [DAY] care assistance program funds 
 it receives from the department under the contract. 
 * Sec. 9. AS 47.25.021 is amended to read: 
 Sec. 47.25.021. Conditions of receipt of benefits. Benefits may be paid for 
 the care of children of a low or moderate income family only if a parent or guardian, 
 because of the day [CHILD] care, is freed to work or to seek work or to attend school. 
 Benefits may not be paid for the care of children of a family where one parent or 
 guardian is not working, actively seeking work, or attending school and is physically 
 and mentally capable of caring for the children. 
 * Sec. 10. AS 47.25.021, as amended by sec. 9 of this Act, is amended to read: 
 Sec. 47.25.021. Conditions of receipt of benefits. Benefits may be paid for

the care of children of a low or moderate income family only if a parent or guardian, 
 because of the child [DAY] care, is freed to work or to seek work or to attend school. 
 Benefits may not be paid for the care of children of a family where one parent or 
 guardian is not working, actively seeking work, or attending school and is physically 
 and mentally capable of caring for the children. 
 * Sec. 11. AS 47.25.031 is amended to read: 
 Sec. 47.25.031. Eligibility of families for benefits. The department shall 
 determine the eligibility of families for day [CHILD] care benefits on the basis of the 
 following factors: 
 (1) income of the family including salary, alimony, child support, 
 retirement benefits, social security, and any other source of income; 
 (2) number of children in the family; 
 (3) whether there is one parent or guardian solely responsible for the 
 care of the family. 
 * Sec. 12. AS 47.25.031, as amended by sec. 11 of this Act, is amended to read: 
 Sec. 47.25.031. Eligibility of families for benefits. The department shall 
 determine the eligibility of families for child [DAY] care benefits on the basis of the 
 following factors: 
 (1) income of the family including salary, alimony, child support, 
 retirement benefits, social security, and any other source of income; 
 (2) number of children in the family; 
 (3) whether there is one parent or guardian solely responsible for the 
 care of the family. 
 * Sec. 13. AS 47.25.041 is amended to read: 
 Sec. 47.25.041. Contributions by parent or guardian. The department shall 
 develop a sliding fee scale based on the factors listed in AS 47.25.031 for purposes of 
 determining the amount to be contributed by the parent or guardian for child care [; 
 THE AMOUNT MAY NOT EXCEED SEVEN PERCENT OF THE FAMILY 
 MONTHLY INCOME]. The contribution of the parent or guardian shall be paid to the 
 day [CHILD] care facility. 
 * Sec. 14. AS 47.25.041, as amended by sec. 13 of this Act, is amended to read:

Sec. 47.25.041. Contributions by parent or guardian. The department shall 
 develop a sliding fee scale based on the factors listed in AS 47.25.031 for purposes of 
 determining the amount to be contributed by the parent or guardian for child care; the 
 amount may not exceed seven percent of the family monthly income. The 
 contribution of the parent or guardian shall be paid to the child [DAY] care facility. 
 * Sec. 15. AS 47.25.051(a) is amended to read: 
 (a) Parents or guardians shall select the day [CHILD] care facility for the care 
 of their children. 
 * Sec. 16. AS 47.25.051(a), as amended by sec. 15 of this Act, is amended to read: 
 (a) Parents or guardians shall select the child [DAY] care facility for the care 
 of their children. 
 * Sec. 17. AS 47.25.051(b) is amended to read: 
 (b) Benefits shall be paid by the department directly to the municipality or 
 organization contracting with the day [CHILD] care facility. 
 * Sec. 18. AS 47.25.051(b), as amended by sec. 17 of this Act, is amended to read: 
 (b) Benefits shall be paid by the department directly to the municipality or 
 organization contracting with the child [DAY] care facility. 
 * Sec. 19. AS 47.25.051 is amended by adding a new subsection to read: 
 (d) The department shall use a market rate study or a cost of care study to 
 establish a subsidy rate for each region served by the program established under 
 AS 47.25.001. The department shall use the subsidy rate to determine the amount of 
 benefits payable by the department under (b) of this section. 
 * Sec. 20. AS 47.25.071(b) is amended to read: 
 (b) To qualify for a grant under (a) or (d) of this section, the child care facility 
 must 
 (1) be currently licensed under AS 47.32 and applicable municipal 
 licensing requirements; 
 (2) participate in the day [CHILD] care assistance program under 
 AS 47.25.001 - 47.25.095; and 
 (3) provide care under a payment system as provided in (g) of this 
 section [; AND

(4) BE DESIGNATED AS A QUALITY CHILD CARE FACILITY 
 BY THE DEPARTMENT]. 
 * Sec. 21. AS 47.25.071(b), as amended by sec. 20 of this Act, is amended to read: 
 (b) To qualify for a grant under (a) or (d) of this section, the child care facility 
 must 
 (1) be currently licensed under AS 47.32 and applicable municipal 
 licensing requirements; 
 (2) participate in the child [DAY] care assistance program under 
 AS 47.25.001 - 47.25.095; [AND] 
 (3) provide care under a payment system as provided in (g) of this 
 section; and 
 (4) be designated as a quality child care facility by the department. 
 * Sec. 22. AS 47.25.071(g) is amended to read: 
 (g) Each [A] child care facility receiving a grant under (a) or (d) of this 
 section shall 
 [(1)] assure that at least 15 percent or one of its child care spaces 
 receiving subsidy under this section, whichever is greater, will be made available, if 
 requested, to children eligible for day [CHILD] care assistance under AS 47.25.001 - 
 47.25.095, whose parents or guardians wish to pay for care based on attendance only [; 
 (2) GIVE PRIORITY TO CHILDREN FROM LOW-INCOME 
 FAMILIES WHEN FILLING AVAILABLE CHILD CARE SPACES IN THE 
 FACILITY]. 
 * Sec. 23. AS 47.25.071(g), as amended by sec. 22 of this Act, is amended to read: 
 (g) A [EACH] child care facility receiving a grant under (a) or (d) of this 
 section shall 
 (1) assure that at least 15 percent or one of its child care spaces 
 receiving subsidy under this section, whichever is greater, will be made available, if 
 requested, to children eligible for child [DAY] care assistance under AS 47.25.001 - 
 47.25.095, whose parents or guardians wish to pay for care based on attendance only; 
 (2) give priority to children from low-income families when filling 
 available child care spaces in the facility.

* Sec. 24. AS 47.25.071(h) is amended to read: 
 (h) The department shall, in consultation with interested child care 
 providers [A CHILD CARE RESOURCE AND REFERRAL AGENCY IN THE 
 STATE] and parents, adopt regulations to carry out the purposes of this section [, 
 INCLUDING CRITERIA USED TO DESIGNATE A CHILD CARE FACILITY AS 
 A QUALITY CHILD CARE FACILITY UNDER (b)(4) OF THIS SECTION]. 
 * Sec. 25. AS 47.25.071(h), as amended by sec. 24 of this Act, is amended to read: 
 (h) The department shall, in consultation with a child care resource and 
 referral agency in the state [INTERESTED CHILD CARE PROVIDERS] and 
 parents, adopt regulations to carry out the purposes of this section, including criteria 
 used to designate a child care facility as a quality child care facility under (b)(4) 
 of this section. 
 * Sec. 26. AS 47.25.071 is amended by adding new subsections to read: 
 (k) In addition to the grants provided in (a) and (d) of this section, the 
 department may, subject to appropriations for that purpose, provide grants to the 
 highest performing and highest quality child care facilities in the state. The department 
 may use quality recognition and improvement system metrics to determine the highest 
 performing and highest quality child care facilities in the state. To receive a grant 
 under this subsection, the child care facility must be currently licensed under AS 47.32 
 and applicable municipal licensing requirements. 
 (l) A child care facility receiving a grant under (a) or (d) of this section may 
 not deny a child acceptance to the facility based on disability or socioeconomic status. 
 * Sec. 27. AS 47.25.095(2) is amended to read: 
 (2) "day [CHILD] care" means the care, supervision, and guidance of 
 a child or children unaccompanied by a parent or legal guardian on a regular basis for 
 periods of less than 24 hours a day; 
 * Sec. 28. AS 47.25.095(2), as amended by sec. 27 of this Act, is amended to read: 
 (2) "child [DAY] care" means the care, supervision, and guidance of a 
 child or children unaccompanied by a parent or legal guardian on a regular basis for 
 periods of less than 24 hours a day; 
 * Sec. 29. AS 47.25.095(3) is amended to read:

(3) "child care facility" means an establishment licensed as a child care 
 facility under AS 47.32, including day care centers, family day care homes, and 
 schools for preschool age children, that provides care for children not related by 
 blood, marriage, or legal adoption to the owner, operator, or manager of the facility 
 [OR AN ESTABLISHMENT RECOGNIZED BY THE FEDERAL GOVERNMENT 
 FOR THE CARE OF CHILDREN]; 
 * Sec. 30. AS 47.25.095(3), as amended by sec. 29 of this Act, is amended to read: 
 (3) "child care facility" means an establishment licensed as a child care 
 facility under AS 47.32 [, INCLUDING DAY CARE CENTERS, FAMILY DAY 
 CARE HOMES, AND SCHOOLS FOR PRESCHOOL AGE CHILDREN,] that 
 provides care for children not related by blood, marriage, or legal adoption to the 
 owner, operator, or manager of the facility or an establishment recognized by the 
 federal government for the care of children; 
 * Sec. 31. AS 47.25.095 is amended by adding a new paragraph to read: 
 (7) "day care facility" means a center or home licensed in accordance 
 with the provisions of AS 47.32 as a child care facility or recognized by the federal 
 government for the care of children. 
 * Sec. 32. AS 47.25.095(7), enacted by sec. 31 of this Act, is repealed. 
 * Sec. 33. AS 47.25.051(c), 47.25.071(i), and 47.25.071(j) are repealed. 
 * Sec. 34. Sections 47 and 49, ch. 15, SLA 2024, are repealed. 
 * Sec. 35. The uncodified law of the State of Alaska is amended by adding a new section to 
 read: 
 CHILD CARE AND DEVELOPMENT FUND PLAN FEDERAL APPROVAL. To 
 the extent necessary to implement sec. 6 of this Act, the Department of Health shall amend 
 and submit for federal approval the state plan for the state's child care assistance program 
 under the federal child care and development fund program, consistent with AS 47.25.001(a), 
 as amended by sec. 6 of this Act. 
 * Sec. 36. The uncodified law of the State of Alaska is amended by adding a new section to 
 read: 
 RETROACTIVITY. This Act is retroactive to July 23, 2024. 
 * Sec. 37. The uncodified law of the State of Alaska is amended by adding a new section to

read: 
 CONDITIONAL EFFECT; NOTIFICATION. (a) Section 6 of this Act takes effect 
 only if, on or before January 1, 2026, the United States Department of Health and Human 
 Services 
 (1) approves the amendment to the state plan for the child care assistance 
 program under the federal child care and development fund program, consistent with 
 AS 47.25.001(a), as amended by sec. 6 of this Act; or 
 (2) determines that approval of the amendment to the state plan for the child 
 care assistance program is not necessary. 
 (b) The commissioner of health shall notify the revisor of statutes in writing within 30 
 days after the United States Department of Health and Human Services approves the 
 amendment to the state plan or determines that approval is not necessary under (a)(1) or (2) of 
 this section. 
 * Sec. 38. If sec. 6 of this Act takes effect, it takes effect on the day after the date the United 
 States Department of Health and Human Services approves the corresponding amendment to 
 the state plan or determines that approval is not necessary. 
 * Sec. 39. Except as provided in sec. 38 of this Act, this Act takes effect immediately under 
 AS 01.10.070(c).