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Enrolled SB 95
LAWS OF ALASKA
2025
Source Chapter No.
SB 95 _______
AN ACT
Relating to the child care assistance program and the child car e grant program; and providing
for an effective date.
_______________
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:
THE ACT FOLLOWS ON PAGE 1
-1- Enrolled SB 95
AN ACT
Relating to the child care assistance program and the child car e grant program; and providing 1
for an effective date. 2
_______________ 3
* Section 1. AS 47.05.030(a) is amended to read: 4
(a) Except as provided in (b) and (c) of this section and for purposes directly 5
connected with the administration of general assistance, adult public assistance, the 6
day [CHILD] care assistance program authorized under AS 47.25.001 - 47.25.095, or 7
the Alaska temporary assistance program, and in accordance with the regulations of 8
the department, a person may not solicit, disclose, receive, ma ke use of, or authorize, 9
knowingly permit, participate in, or acquiesce in the use of, a list of or names of, or 10
information concerning, persons applying for or receiving the a ssistance directly or 11
indirectly derived from the records, papers, files, or communications of the department 12
or subdivisions or agencies of th e department, or acquired in t he course of the 13
performance of official duties. 14
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* Sec. 2. AS 47.05.030(a), as amended by sec. 1 of this Act, is amended to read: 1
(a) Except as provided in (b) and (c) of this section and for purposes directly 2
connected with the administration of general assistance, adult public assistance, the 3
child [DAY] care assistance progr am authorized under AS 47.25.001 - 47.25.095, or 4
the Alaska temporary assistance program, and in accordance with the regulations of 5
the department, a person may not solicit, disclose, receive, ma ke use of, or authorize, 6
knowingly permit, participate in, or acquiesce in the use of, a list of or names of, or 7
information concerning, persons applying for or receiving the a ssistance directly or 8
indirectly derived from the records, papers, files, or communications of the department 9
or subdivisions or agencies of th e department, or acquired in t he course of the 10
performance of official duties. 11
* Sec. 3. AS 47.05.085(a) is amended to read: 12
(a) The commissioner or the commissioner's designee at the director level may 13
issue subpoenas to compel the production of books, papers, corr espondence, 14
memoranda, and other records considered necessary as evidence in connection with an 15
investigation under or the admin istration of AS 47.07 (medical assistance), AS 47.08 16
(assistance for catastrophic illnesses and acute or chronic med ical conditions), 17
AS 47.25 (day [CHILD] care assistance, child care grants, general relief, ad ult public 18
assistance, and food stamps), and AS 47.27 (Alaska temporary assistance program). 19
* Sec. 4. AS 47.05.085(a), as amended by sec. 3 of this Act, is amended to read: 20
(a) The commissioner or the commissioner's designee at the director level may 21
issue subpoenas to compel the production of books, papers, corr espondence, 22
memoranda, and other records considered necessary as evidence in connection with an 23
investigation under or the admin istration of AS 47.07 (medical assistance), AS 47.08 24
(assistance for catastrophic illnesses and acute or chronic med ical conditions), 25
AS 47.25 (child [DAY] care assistance, child care grants, general relief, adul t public 26
assistance, and food stamps), and AS 47.27 (Alaska temporary assistance program). 27
* Sec. 5. AS 47.25.001(a) is amended to read: 28
(a) The department shall 29
(1) implement and administer a program to assist in providing day 30
[CHILD] care for the children of low and moderate income famili es according to the 31
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requirements of AS 47.25.001 - 47.25.095; 1
(2) establish standards of eligibility for day [CHILD] care benefits [; 2
THE STANDARDS MUST PROVIDE THAT THE MAXIMUM MONTHLY 3
HOUSEHOLD INCOME FOR A FAMILY TO BE ELIGIBLE FOR THE 4
PROGRAM IS 105 PERCENT OF THE MEDIAN MONTHLY HOUSEHOLD 5
INCOME IN THE STATE, ADJUSTED FOR FAMILY SIZE, UNLESS THE 6
FAMILY IS OTHERWISE EXEMPT FROM INCOME ELIGIBILITY 7
REQUIREMENTS]; 8
(3) contract for the care of children of eligible families; 9
(4) establish procedures to periodically review the needs of f amilies 10
receiving day [CHILD] care benefits; 11
(5) provide notification to the local government body of the request for 12
a contract with a day [CHILD] care facility; 13
(6) establish an electronic application for assistance and all ow an 14
applicant to submit an application in electronic format or in o ther formats required by 15
state and federal law; the elect ronic application must inform a n applicant that a false 16
statement made on the application will be investigated and is p unishable under 17
AS 11.56.210 [; 18
( 7 ) E S T A B L I S H A P R O G R A M T O P A R T N E R W I T H P R I V A T E 19
SECTOR ENTITIES TO CREATE INCENTIVES FOR EMPLOYERS TO 20
DEVELOP ON-SITE OR NEAR-SITE CHILD CARE]. 21
* Sec. 6. AS 47.25.001(a), as amended by sec. 5 of this Act, is amended to read: 22
(a) The department shall 23
(1) implement and administer a program to assist in providing child 24
[DAY] care for the children of low and moderate income families according to the 25
requirements of AS 47.25.001 - 47.25.095; 26
(2) establish standards of eligibility for child [DAY] care benefits; the 27
standards must provide that the maximum monthly household incom e for a 28
f a m i l y t o b e e l i g i b l e f o r t h e p r o g r a m i s 1 0 5 p e r c e n t o f t h e m e dian monthly 29
household income in the state, adjusted for family size, unless t h e f a m i l y i s 30
otherwise exempt from income eligibility requirements; 31
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(3) contract for the care of children of eligible families; 1
(4) establish procedures to periodically review the needs of f amilies 2
receiving child [DAY] care benefits; 3
(5) provide notification to the local government body of the request for 4
a contract with a child [DAY] care facility; 5
(6) establish an electronic application for assistance and all ow an 6
applicant to submit an application in electronic format or in o ther formats required by 7
state and federal law; the elect ronic application must inform a n applicant that a false 8
statement made on the application will be investigated and is p unishable under 9
AS 11.56.210; 10
(7) establish a program to part ner with private sector entitie s to 11
create incentives for employers to develop on-site or near-site child care. 12
* Sec. 7. AS 47.25.011 is amended to read: 13
Sec. 47.25.011. Administrative cos ts of program contractors. To defray 14
administrative expenses, a c ontractor under AS 47.25.001(b) may only retain $1,000 15
or 12 percent, whichever is greater, of the day [CHILD] care assistance program funds 16
it receives from the department under the contract. 17
* Sec. 8. AS 47.25.011, as amended by sec. 7 of this Act, is amended to read: 18
Sec. 47.25.011. Administrative cos ts of program contractors. To defray 19
administrative expenses, a c ontractor under AS 47.25.001(b) may only retain $1,000 20
or 12 percent, whichever is greater, of the child [DAY] care assistance program funds 21
it receives from the department under the contract. 22
* Sec. 9. AS 47.25.021 is amended to read: 23
Sec. 47.25.021. Conditions of receipt of benefits. Benefits may be paid for 24
the care of children of a low or moderate income family only if a parent or guardian, 25
because of the day [CHILD] care, is freed to work or to seek work or to attend sc hool. 26
Benefits may not be paid for the care of children of a family w here one parent or 27
guardian is not working, actively seeking work, or attending sc hool and is physically 28
and mentally capable of caring for the children. 29
* Sec. 10. AS 47.25.021, as amended by sec. 9 of this Act, is amended to read: 30
Sec. 47.25.021. Conditions of receipt of benefits. Benefits may be paid for 31
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the care of children of a low or moderate income family only if a parent or guardian, 1
because of the child [DAY] care, is freed to work or to seek work or to attend scho ol. 2
Benefits may not be paid for the care of children of a family w here one parent or 3
guardian is not working, actively seeking work, or attending sc hool and is physically 4
and mentally capable of caring for the children. 5
* Sec. 11. AS 47.25.031 is amended to read: 6
Sec. 47.25.031. Eligibility of families for benefits. The department shall 7
determine the eligibility of families for day [CHILD] care benefits on the basis of the 8
following factors: 9
(1) income of the family including salary, alimony, child supp ort, 10
retirement benefits, social security, and any other source of income; 11
(2) number of children in the family; 12
(3) whether there is one paren t or guardian solely responsible for the 13
care of the family. 14
* Sec. 12. AS 47.25.031, as amended by sec. 11 of this Act, is amended to read: 15
Sec. 47.25.031. Eligibility of families for benefits. The department shall 16
determine the eligibility of families for child [DAY] care benefits on the basis of the 17
following factors: 18
(1) income of the family including salary, alimony, child supp ort, 19
retirement benefits, social security, and any other source of income; 20
(2) number of children in the family; 21
(3) whether there is one paren t or guardian solely responsible for the 22
care of the family. 23
* Sec. 13. AS 47.25.041 is amended to read: 24
Sec. 47.25.041. Contributions by parent or guardian. The department shall 25
develop a sliding fee scale base d on the factors listed in AS 4 7.25.031 for purposes of 26
determining the amount to be contributed by the parent or guard ian for child care [; 27
THE AMOUNT MAY NOT EXCEED SEVEN PERCENT OF THE FAMILY 28
MONTHLY INCOME]. The contribution of the parent or guardian shall be paid to the 29
day [CHILD] care facility. 30
* Sec. 14. AS 47.25.041, as amended by sec. 13 of this Act, is amended to read: 31
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Sec. 47.25.041. Contributions by parent or guardian. The department shall 1
develop a sliding fee scale base d on the factors listed in AS 4 7.25.031 for purposes of 2
determining the amount to be cont ributed by the parent or guard ian for child care; the 3
amount may not exceed seven percent of the family monthly incom e. The 4
contribution of the parent or guardian shall be paid to the child [DAY] care facility. 5
* Sec. 15. AS 47.25.051(a) is amended to read: 6
(a) Parents or guardians shall select the day [CHILD] care facility for the care 7
of their children. 8
* Sec. 16. AS 47.25.051(a), as amended by sec. 15 of this Act, is amended to read: 9
(a) Parents or guardians shall select the child [DAY] care facility for the care 10
of their children. 11
* Sec. 17. AS 47.25.051(b) is amended to read: 12
(b) Benefits shall be paid by the department directly to the m unicipality or 13
organization contracting with the day [CHILD] care facility. 14
* Sec. 18. AS 47.25.051(b), as amended by sec. 17 of this Act, is amended to read: 15
(b) Benefits shall be paid by the department directly to the m unicipality or 16
organization contracting with the child [DAY] care facility. 17
* Sec. 19. AS 47.25.051 is amended by adding a new subsection to read: 18
(d) The department shall use a market rate study or a cost of care study to 19
establish a subsidy rate for each region served by the program established under 20
AS 47.25.001. The department shall us e the subsidy rate to dete rmine the amount of 21
benefits payable by the department under (b) of this section. 22
* Sec. 20. AS 47.25.071(b) is amended to read: 23
(b) To qualify for a grant under (a) or (d) of this section, t he child care facility 24
must 25
(1) be currently licensed under AS 47.32 and applicable munici pal 26
licensing requirements; 27
(2) participate in the day [CHILD] care assistance program under 28
AS 47.25.001 - 47.25.095; and 29
(3) provide care under a payment system as provided in (g) of this 30
section [; AND 31
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(4) BE DESIGNATED AS A QUALITY CHILD CARE FACILITY 1
BY THE DEPARTMENT]. 2
* Sec. 21. AS 47.25.071(b), as amended by sec. 20 of this Act, is amended to read: 3
(b) To qualify for a grant under (a) or (d) of this section, t he child care facility 4
must 5
(1) be currently licensed under AS 47.32 and applicable munici pal 6
licensing requirements; 7
(2) participate in the child [DAY] care assistance program under 8
AS 47.25.001 - 47.25.095; [AND] 9
(3) provide care under a payment system as provided in (g) of this 10
section; and 11
(4) be designated as a quality child care facility by the department. 12
* Sec. 22. AS 47.25.071(g) is amended to read: 13
(g) Each [A] child care facility receiving a grant under (a) or (d) of this 14
section shall 15
[(1)] assure that at least 15 pe rcent or one of its child care s p a c e s 16
receiving subsidy under this sec tion, whichever is greater, wil l be made available, if 17
requested, to children eligible for day [CHILD] care assistance under AS 47.25.001 - 18
47.25.095, whose parents or guardians wish to pay for care based on attendance only [; 19
(2) GIVE PRIORITY TO CHILDREN FROM LOW-INCOME 20
FAMILIES WHEN FILLING AVAILABLE CHILD CARE SPACES IN THE 21
FACILITY]. 22
* Sec. 23. AS 47.25.071(g), as amended by sec. 22 of this Act, is amended to read: 23
(g) A [EACH] child care facility receiving a grant under (a) or (d) of this 24
section shall 25
(1) assure that at least 15 percent or one of its child care spaces 26
receiving subsidy under this sec tion, whichever is greater, wil l be made available, if 27
requested, to children eligible for child [DAY] care assistance under AS 47.25.001 - 28
47.25.095, whose parents or guardians wish to pay for care based on attendance only; 29
(2) give priority to children from low-income families when fi lling 30
available child care spaces in the facility. 31
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* Sec. 24. AS 47.25.071(h) is amended to read: 1
(h) The department shall, in consultation with interested child care 2
providers [A CHILD CARE RESOURCE AND REFERRAL AGENCY IN THE 3
STATE] and parents, adopt regulations to carry out the purposes o f t h i s s e c t i o n [ , 4
INCLUDING CRITERIA USED TO DESIGNATE A CHILD CARE FACILITY AS 5
A QUALITY CHILD CARE FACILITY UNDER (b)(4) OF THIS SECTION]. 6
* Sec. 25. AS 47.25.071(h), as amended by sec. 24 of this Act, is amended to read: 7
(h) The department shall, in consultation with a child care resource and 8
referral agency in the state [INTERESTED CHILD CARE PROVIDERS] and 9
parents, adopt regulations to carry out the purposes of this se ction, including criteria 10
used to designate a child care facility as a quality child care facility under (b)(4) 11
of this section. 12
* Sec. 26. AS 47.25.071 is amended by adding new subsections to read: 13
(k) In addition to the grants provided in (a) and (d) of this section, the 14
department may, subject to appr opriations for that purpose, pro vide grants to the 15
highest performing and highest quality child care facilities in the state. The department 16
may use quality recognition and improvement system metrics to d etermine the highest 17
performing and highest quality child care facilities in the sta te. To receive a grant 18
under this subsection, the child care facility must be currently licensed under AS 47.32 19
and applicable municipal licensing requirements. 20
(l) A child care facility receiving a grant under (a) or (d) of this section may 21
not deny a child acceptance to the facility based on disability or socioeconomic status. 22
* Sec. 27. AS 47.25.095(2) is amended to read: 23
(2) "day [CHILD] care" means the care, supervision, and guidance of 24
a child or children unaccompanied by a parent or legal guardian on a regular basis for 25
periods of less than 24 hours a day; 26
* Sec. 28. AS 47.25.095(2), as amended by sec. 27 of this Act, is amended to read: 27
(2) "child [DAY] care" means the care, supervision, and guidance of a 28
child or children unaccompanied by a parent or legal guardian o n a regular basis for 29
periods of less than 24 hours a day; 30
* Sec. 29. AS 47.25.095(3) is amended to read: 31
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(3) "child care facility" means an establishment licensed as a child care 1
facility under AS 47.32 , including day care centers, family day care homes, and 2
schools for preschool age children, that provides care for children not related by 3
blood, marriage, or legal adoption to the owner, operator, or m anager of the facility 4
[OR AN ESTABLISHMENT RECOGNIZED BY THE FEDERAL GOVERNMENT 5
FOR THE CARE OF CHILDREN]; 6
* Sec. 30. AS 47.25.095(3), as amended by sec. 29 of this Act, is amended to read: 7
(3) "child care facility" means an establishment licensed as a child care 8
facility under AS 47.32 [, INCLUDING DAY CARE CENTERS, FAMILY D AY 9
CARE HOMES, AND SCHOOLS FOR PRESCHOOL AGE CHILDREN,] that 10
provides care for children not related by blood, marriage, or l egal adoption to the 11
owner, operator, or manager of the facility or an establishment recognized by the 12
federal government for the care of children; 13
* Sec. 31. AS 47.25.095 is amended by adding a new paragraph to read: 14
(7) "day care facility" means a center or home licensed in acc ordance 15
with the provisions of AS 47.32 as a child care facility or rec ognized by the federal 16
government for the care of children. 17
* Sec. 32. AS 47.25.095(7), enacted by sec. 31 of this Act, is repealed. 18
* Sec. 33. AS 47.25.051(c), 47.25.071(i), and 47.25.071(j) are repealed. 19
* Sec. 34. Sections 47 and 49, ch. 15, SLA 2024, are repealed. 20
* Sec. 35. The uncodified law of the State of Alaska is amended by adding a new section to 21
read: 22
CHILD CARE AND DEVELOPMENT FUND PLAN FEDERAL APPROVAL. To 23
the extent necessary to implement sec. 6 of this Act, the Depar tment of Health shall amend 24
and submit for federal approval the state plan for the state's child care assistance program 25
under the federal child care and development fund program, cons istent with AS 47.25.001(a), 26
as amended by sec. 6 of this Act. 27
* Sec. 36. The uncodified law of the State of Alaska is amended by adding a new section to 28
read: 29
RETROACTIVITY. This Act is retroactive to July 23, 2024. 30
* Sec. 37. The uncodified law of the State of Alaska is amended by adding a new section to 31
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read: 1
CONDITIONAL EFFECT; NOTIFICATION. (a) Section 6 of this Act tak es effect 2
only if, on or before January 1, 2026, the United States Depart ment of Health and Human 3
Services 4
(1) approves the amendment to the state plan for the child car e assistance 5
program under the federal child care and development fund progr am, consistent with 6
AS 47.25.001(a), as amended by sec. 6 of this Act; or 7
(2) determines that approval of the amendment to the state pla n for the child 8
care assistance program is not necessary. 9
(b) The commissioner of health shall notify the revisor of statutes in writing within 30 10
days after the United States Dep artment of Health and Human Ser vices approves the 11
amendment to the state plan or determines that approval is not necessary under (a)(1) or (2) of 12
this section. 13
* Sec. 38. If sec. 6 of this Act takes effect, it takes effect on the day after the date the United 14
States Department of Health and Human Services approves the cor responding amendment to 15
the state plan or determines that approval is not necessary. 16
* Sec. 39. Except as provided in sec. 38 of this Act, this Act takes effec t immediately under 17
AS 01.10.070(c). 18