AN ACT relating to child care and declaring an emergency.

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AN ACT relating to child care and declaring an emergency. 1
Be it enacted by the General Assembly of the Commonwealth of Kentucky: 2
SECTION 1. A NEW SECTION OF KRS CHAPTER 199 IS CREATED TO 3
READ AS FOLLOWS: 4
(1) As used in this section, "program" means the quality -based graduated early care 5
and education program rating system established under KRS 199.8943. 6
(2) It is the intent of the General Assembly that the program shall meaningfully and 7
effectively support voluntary participation by licensed and certified child -care 8
providers in building and maintaining high -quality early learning services for 9
children across the Commonwealth. To that end, the General Assembly intends 10
for the program to: 11
(a) Feature objective and measurable intended outcomes; 12
(b) Include long -term strategies for empirically assessing and validating the 13
efficacy of the program and routinely studying it to ensure continuous 14
improvement; 15
(c) Be predicated upon proven methods and standards that reflect the 16
consensus of the highest -quality academic research on early childhood 17
development; 18
(d) Align with state licensing and certification requirements and avoid 19
duplication between those requirements and the program to the greatest 20
extent possible; 21
(e) Offer effective financial incentives t o encourage and enable providers to 22
participate in the program and to strive for the highest possible rating under 23
the program; 24
(f) Offer accessible and high -impact training opportunities for child -care 25
providers and their staff to ensure that they are abl e to successfully 26
participate in the program and advance their services to higher rating 27
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levels; 1
(g) Utilize digital administrative tools that are easy to use and minimize 2
compliance burdens associated with participating in the program; 3
(h) Be accompanied by a robust outreach program that involves partnerships 4
with community -based stakeholders to ensure that providers, parents, and 5
employers are fully aware of the program and its benefits to children; 6
(i) Be simple and easy to understand for parents; 7
(j) Include a digital, public -facing data system that is accessible to the general 8
public and researchers; 9
(k) Provide streamlined compliance processes for multisite operators to reduce 10
administrative burdens; and 11
(l) Allow for flexibility within rating levels i n order to accommodate different 12
approaches to providing high -quality services, provided that these 13
approaches are informed by research and the consensus of early childhood 14
education professionals. 15
(3) (a) On or after the effective date of this Act, the Ca binet for Health and Family 16
Services shall not make any administrative or regulatory changes to the 17
program unless explicitly authorized to do so by the General Assembly or 18
unless a change is required to conform with federal law or to access federal 19
funding. If the cabinet determines that administrative or regulatory changes 20
to the program are necessary in accordance with this paragraph, the cabinet 21
shall first notify the Interim Joint Committee on Families and Children 22
before initiating any changes. 23
(b) Notwithstanding paragraph (a) of this subsection, the cabinet shall, in 24
consultation with the Family Child Care Network of Kentucky, promulgate 25
administrative regulations in accordance with KRS Chapter 13A to 26
incorporate setting -aligned quality standards und er the program for 27
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certified family child-care homes and licensed Type II child -care centers by 1
October 1, 2026. 2
(4) Any established metrics or intended outcomes associated with the program, or 3
strategies to evaluate the efficacy of the program, shall resp ect the privacy of 4
children, families, and licensed and certified child -care providers, and shall 5
account for programs for children with special needs, children in the welfare 6
system, and children from economically disadvantaged households. 7
(5) This section shall not be construed to limit or prohibit aspects of the program that 8
are not mentioned in this section. 9
(6) By October 1, 2026, the cabinet shall submit to the Legislative Research 10
Commission a written plan outlining a process through which it will de velop 11
recommendations to modernize the program and align it with the General 12
Assembly’s intent as expressed in this section for referral to the Interim Joint 13
Committees on Families and Children, Education, and Appropriations and 14
Revenue and the Tobacco Settlement Agreement Fund Oversight Committee. 15
(7) The modernization process plan submitted by the cabinet shall include but not be 16
limited to: 17
(a) Strategies for robust engagement with impacted stakeholders, including but 18
not limited to licensed and certifie d child -care providers, early childhood 19
educators employed in regulated child -care programs, parents of young 20
children, parents of children with special needs, parents of children 21
benefiting from the Child Care and Development Fund as defined in 45 22
C.F.R. sec. 98.2, elementary school teachers, special education teachers, 23
school district superintendents, and school principals; 24
(b) Strategies for robust engagement with outside experts, including but not 25
limited to early childhood education professionals and e xperts, faculty at 26
Kentucky-based colleges and universities, economists and statisticians, the 27
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federal Administration for Children and Families, and Child Care and 1
Development Fund administrators in other states; 2
(c) Strategies for utilizing the Kentucky C hild Care Advisory Council as a 3
source for feedback and guidance; 4
(d) Strategies for utilizing technical assistance, financial, and programmatic 5
support from the federal government where applicable; 6
(e) Strategies for updating and seeking feedback from the General Assembly 7
and other executive branch agencies; 8
(f) Clear timelines, including expected project milestones, with the intention of 9
producing final recommendations to the Legislative Research Commission 10
for modernization and alignment by no later than December 1, 2027; and 11
(g) Estimates of projected costs to successfully carry out the modernization 12
process plan, including potential costs for third-party contractors. 13
(8) In developing the modernization process plan, the cabinet shall consult regularly 14
and consistently with the Kentucky Child Care Advisory Council. The council 15
shall provide feedback and guidance to the cabinet throughout the process. Prior 16
to the submission of the plan to the Legislative Research Commission, the cabinet 17
shall submit the p lan to the council for a review and shall communicate 18
comments and feedback from the council regarding the plan to the Commission. 19
(9) By December 1, 2027, the cabinet shall submit its final recommendations for 20
modernizing the program and aligning it with the General Assembly’s intent, as 21
expressed in this section, to the Legislative Research Commission for referral to 22
the Interim Joint Committees on Families and Children, Education, and 23
Appropriations and Revenue and the Tobacco Settlement Agreement Fund 24
Oversight Committee. 25
Section 2. KRS 199.891 is amended to read as follows: 26
(1) As used in this section: 27
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(a) "Cabinet" means the Cabinet for Health and Family Services; [Economic 1
Development; and] 2
(b) "Child care service" means a child care service licensed or certified by the 3
cabinet; and 4
(c) "Local government" has the same meaning as in KRS 65.230 ["Council" 5
means the Council of Area Development Districts]. 6
(2) The cabinet shall [ work in partnership wi th the council and the area development 7
districts to] establish a Certified Child Care Community Designation Program. The 8
purpose of the program shall be to create new opportunities for local governments 9
to help increase the supply of child care [ and early childhood education] services in 10
their communities through voluntary actions related to land use and zoning reform 11
and programming at the local level . Participation in the program by local 12
governments shall be optional. 13
(3) To administer the program, the cabinet may: 14
(a) Delegate authority to a subsidiary department; 15
(b) Coordinate and share information with other executive branch agencies [ and 16
the council]; 17
(c) Enter into contracts with third parties to administer the program or specific 18
parts of the program; and 19
(d) Promulgate administrative regulations in accordance with KRS Chapter 13A 20
to implement the program.[ 21
(4) (a) By December 1, 2024, the cabinet shall make available, on its website and to 22
the Legislative Research Commission for referral to the Interim Joint Committee on 23
Families and Children, recommendations and best practices for local governments 24
to utilize when evaluating local ordinances, regulations, and land -use rules 25
pertaining to the availability of child care services in local communities . These 26
recommendations and best practices shall focus on balancing safety with increasing 27
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the supply of child care and early childhood education services and easing local 1
regulatory barriers, and shall include but not be limited to the following topics: 2
1. Local land-use policies related to center -based, in-home, and employer-3
based child care services, including: 4
a. Recommendations for definitions for terms such as "child care," 5
"child care center," and "family child care home"; 6
b. Recommendations on where child care services should be 7
permitted by right, with special standards, and with conditional use 8
permits; 9
c. Recommendations for requirements for compliance with 10
conditional use permits and special standards; 11
d. Best practices for safely permitting chil d care services in or near 12
industrial areas; 13
e. Best practices for playgrounds associated with child care services; 14
and 15
f. Recommendations for parking requirements where applicable; 16
2. Policies pertaining to local permitting fees for starting and operating 17
child care services; and 18
3. Policies related to other local ordinances and regulations that may 19
pertain to the availability of child care services in local communities. 20
(b) The cabinet may enter into a contract with a third party to produce the 21
recommendations and best practices required in accordance with this 22
subsection. 23
(c) The cabinet, or a third party under contract with the cabinet, shall solicit 24
feedback and input on these recommendations and best practices from the 25
council, area development distric ts, and organizations in the Commonwealth 26
representing child care providers and in -home family child care providers, 27
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local governments, local elementary and secondary school officials, the 1
business community, economic developers, and community planning and 2
design professionals. 3
(d) The recommendations and best practices required pursuant to this subsection 4
shall take into consideration the unique needs and differences between urban 5
and rural areas of the state and shall also include recommendations for loca l 6
jurisdictions that have not adopted local land use rules in accordance with 7
KRS Chapter 100. 8
(5) By December 1, 2024, the cabinet shall submit a draft standardized application for 9
certification and draft instructions for the Certified Child Care Communit y 10
Designation Program to the Legislative Research Commission for referral to the 11
Interim Joint Committee on Families and Children.] 12
(4)[(6)] By January 1, 2028 [April 1, 2025] , the cabinet [, after consulting with the 13
council,] shall make publicly available a standardized application for certification 14
and instructions for the Certified Child Care Community Designation Program . In 15
preparing these materials, the cabinet shall solicit feedback from and engage with 16
the Kentucky Child Care Advisory Council and ind ividuals and associations 17
representing local governments, land use and planning and design professionals, 18
public health officials, licensed and certified child -care providers, business 19
leaders, economic development professionals, and education professionals. 20
(5)[(7)] The cabinet shall: 21
(a) Begin receiving and approving applications from local governments no earlier 22
than January 1, 2028[April 1, 2025]; and 23
(b) Send notice of approval or den ial to applicants no later than thirty (30) days 24
after receiving an application. If the cabinet denies an application, the cabinet 25
shall include the reason for the denial in its notice and shall invite the 26
applicant to resubmit. 27
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(6)[(8)] (a) To attain cert ification by the cabinet, applicants shall be required to 1
demonstrate that the local government has: 2
1. Established or joined [Developed clear and actionable strategies, 3
including at least two (2) action items from the list below, to help 4
address local child care challenges and raise awareness of state and local 5
child care resources for working families, current and prospective child 6
care providers, current and prospective employers, and economic 7
developers. Action items include but are not limited to: 8
a. Creating] a community -wide child care task force that includes 9
representatives from local government, the business community, 10
education, health care, nonprofits, and providers of licensed and 11
certified child care services; [and early childhood education 12
professionals; 13
b. Making available and maintaining a public list of certified and 14
licensed child care services in the community; 15
c. Designating a local agency or nonprofit to serve as a point -of-16
contact for local child care issues; 17
d. Helping raise awareness of certification and licensing 18
requirements for child care providers; 19
e. Making available an accessible guide to assist prospective child 20
care service providers in navigating the jurisdiction's ordinances, 21
regulations, and land-use rules that pertain to child care; and 22
f. Conducting a study of child care challenges in the local 23
community or actively participating in a study of child care 24
challenges in the local region; and] 25
2. Developed a strategic plan through its task force to address identified 26
child care challenges and increase access to child care services in the 27
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local community; and 1
3.[2.] Analyzed local ordinances, regulations, and land use [land-use] rules 2
that could create barriers to the availability of child care services and 3
developed an action plan to implement reforms. To comply with this 4
subparagraph, the applicant shall demonstrate that it has: 5
a. Gathered community input from child care providers and child 6
care organizations, local residents and homeowners, local 7
elementary and secondary school officials, the business 8
community, civic and nonprofit organizations, and economic 9
developers through meetings, listening sessions, or surveys; 10
b. Conducted a comprehensive analysis of the jurisdiction's 11
ordinances, regulations, and land use [land-use] rules that may 12
pertain to the provision of child care services and identified 13
ordinances, regulations, and land use [land-use] rules that create 14
barriers to the availability of child care services in the community; 15
and 16
c. Established a clear and specific action plan to amend ordinances, 17
regulations, and land use[land-use] rules that create barriers to the 18
availability of child care services in the community as identified 19
through the comprehensive analysis in subdivision b. of this 20
subparagraph. 21
(b) As used in [For the purposes of] paragraph (a) 3.[2.] of this subsection, 22
"ordinances, regulations, and land use [land-use] rules that create barriers to 23
the availability of child care services" in the community means local 24
ordinances, regulations, or land use [land-use] rules that local officials and 25
community stakeholders have determined to be overly restrictive or 26
unnecessary and have the effect of discouraging or limiting the availability of 27
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child care services without meaningfully supporting safety or preserving the 1
character of the community. 2
(c) In fulfilling the requirements of paragraph (a) 3.[2.] of this subsection, an 3
applicant shall demonstrate that it has , to the greatest extent possible, 4
reviewed and incorporated into its a ction plan[ taken into consideration the] 5
recommendations and best practices for local ordinances, regulations, and 6
land use [land-use] rules pertaining to child care made available by the 7
cabinet. This demonstration shall include a detailed explanation of where 8
the applicant's local policies do and do not align with recommended best 9
practices. If the cabinet determines that the applicant did not adequately 10
consider recommended best practices in its analysis and action plan, it may 11
deny certification to the applicant[ pursuant to subsection (4) of this section. 12
The applicant may satisfy this requirement by demonstrating that it has taken 13
into consideration recommendations and best practices produced by its area 14
development district, provided that they are sub stantially similar to those 15
produced by the cabinet and were developed with stakeholder input as 16
described in subsection (4) of this section]. 17
(d) If the applicant has not adopted land use [land-use] rules pursuant to KRS 18
Chapter 100, it may exclude, and th e cabinet shall not consider, land 19
use[land-use] rules and zoning ordinances from its analysis and action plan. 20
(e) The cabinet shall permit local governments to partner together and submit 21
joint applications. Under a joint application, the community -wide child care 22
task force shall include representatives from all local governments in the 23
application, and the strategic plan shall take into account child care needs 24
across all applicant communities. All local governments that are party to the 25
joint application shall demonstrate compliance with requirements related to 26
analysis and modification of local ordinances, regulations, and land use 27
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rules that could create barriers to the availability of child care services. 1
[(9) Prior to submitting an application to th e cabinet for certification, an applicant shall 2
first submit its application to the area development district in which the applicant is 3
located and receive approval. The area development district shall review the 4
application and, within thirty (30) days, r ecommend the application for approval or 5
deny it based on the criteria in subsection (8) of this section. In cases where the area 6
development district denies an application, it shall provide a detailed explanation of 7
the reason and allow the applicant to r esubmit. The cabinet shall not accept an 8
application for review or approval unless the area development district in which the 9
applicant is located has recommended the application for approval.] 10
(7)[(10)] The cabinet shall: 11
(a) Make publicly available [ on i ts website] a list of communities that have 12
obtained the certified child care community designation; and 13
(b) Transmit, on a quarterly basis, a full list of certified communities to the 14
Cabinet for Economic Development. 15
(8)[(11)] By December 1, 2028[2025], the cabinet shall submit a report to the 16
Legislative Research Commission for referral to the Interim Joint 17
Committees[Committee] on Families and Children and State and Local 18
Government specifying the communities that have obtained the designation, a 19
summary of the different strategies used by local communities to expand access to 20
child care and remove barriers, and recommendations for improvements to the 21
program. 22
(9) When the Cabinet for Economic Development engages with a company regarding 23
participation in an incentive or funding program administered by one (1) or more 24
of that cabinet's agencies, including when it initially communicates with, receives 25
an application from, and approves funding to, any company, the Cabinet for 26
Economic Development shall provi de to the company information regarding the 27
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Certified Child Care Community Designation Program, including a list of 1
communities that have obtained the designation. 2
(10) By November 1 of each yea r, the Cabinet for Economic Development shall 3
prepare and post to its website as required in KRS 154.12 -2035 a report 4
containing a list of communities that have obtained the designation, information 5
regarding its engagement with companies as outlined in th is section, and 6
information regarding its actions under KRS 199.888. 7
Section 3. KRS 199.8983 is amended to read as follows: 8
(1) There is hereby created the Kentucky Child Care Advisory Council to be composed 9
of thirty-four (34) [eighteen (18)] members. The members appointed by the 10
Governor shall serve a term of three (3) years. The appointed members of the 11
council shall be geographically a nd culturally representative of the population of 12
the Commonwealth and shall be no less than proportionally representative of the 13
two (2) leading political parties of the Commonwealth based on the state's voter 14
registration and the political affiliation of each appointee as of December 31 of 15
the year preceding the date of his or her appointment . For administrative 16
purposes, the council shall be attached to the department. The members shall be as 17
follows: 18
(a) The commissioner of the department, or designee; 19
(b) Four (4) members appointed by the Governor representing child -care center 20
providers licensed pursuant to this chapter; 21
(c) Two (2) members appointed by the Governor representing family child -care 22
home providers licensed pursuant to this chapter; 23
(d) Three (3) members appointed by the Governor who are parents, de facto 24
custodians, guardians, or legal custodians of children receiving services from 25
child-care centers or family child -care homes licensed pursuant to this 26
chapter; 27
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(e) Two (2) members appointe d by the Governor representing local child -care 1
resource and referral agencies; 2
(f) One (1) member appointed by the Governor with a professional background 3
in economics from a list of names provided by the president of the Council 4
on Postsecondary Education; 5
(g) Two (2) members appointed by the Governor with professional backgrounds 6
in, or specialized knowledge of, child care and early childhood issues from a 7
list of names provided by the President of the Senate; 8
(h) Two (2) members appointed by the Governor with professional backgrounds 9
in, or specialized knowledge of, child care and early childhood issues from a 10
list of names provided by the Speaker of the House of Representatives; 11
(i) One (1) member appointed by the Governor with a professional background 12
in, or specialized knowledge of, child care and early childhood issues from a 13
list of names provided by the Minority Floor Leader of the Senate; 14
(j) One (1) member appointed by the Governor with a professional background 15
in, or specialized knowledge of, child care and early childhood issues from a 16
list of names provided by the Minority Floor Leader of the House of 17
Representatives; 18
(k) Three (3) members appointed by the Governor from the private sector who are 19
knowledgeable about education, health, and development of children; 20
(l)[(f)] The director of the Division of Child Care within the department, or 21
designee, as a nonvoting ex officio member; 22
(m)[(g)] The commissioner of education, Education and Labor Cabinet, or 23
designee, as a nonvoting ex officio member; 24
(n)[(h)] The executive director of the Governor's Office of Early Childhood, or 25
designee, as a nonvoting ex officio member; 26
(o)[(i)] The commissioner of the Department for Public Health within the 27
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cabinet, or designee, as a nonvoting ex officio member;[ and] 1
(p)[(j)] The state fire marshal, Public Protection Cabinet, or designee, as a 2
nonvoting ex officio member; 3
(q) The executive director of the Kentucky Center for Statistics, or designee; 4
(r) The two (2) co -chairs of the Interim Joint Committee on Fami lies and 5
Children who shall be nonvoting members; 6
(s) The two (2) co-chairs of the Interim Joint Committee on Appropriations and 7
Revenue's Budget Review Subcommittee on Health and Family Services 8
who shall be nonvoting members; and 9
(t) The two (2) co -chairs of the Interim Joint Committee on Education who 10
shall be nonvoting members. 11
(2) The council shall have two (2) co -chairpersons. One (1) co-chairperson shall be the 12
commissioner of the department, or designee, and one (1) co -chairperson shall be 13
elected by the voting members of the council. 14
(3) Members shall serve until a successor has been appointed. If a vacancy on the 15
council occurs, the Governor shall appoint a replacement for the remainder of the 16
unexpired term. 17
(4) Members shall serve without compens ation but shall be reimbursed for reasonable 18
and necessary expenses in accordance with state travel expenses and reimbursement 19
administrative regulations. 20
(5) The council shall meet at least quarterly and at other times upon call of the co -21
chairpersons. 22
(6) The council shall advise the cabinet on matters affecting the operations, funding, 23
and licensing of child-care centers, child-care microcenters as defined in Section 4 24
of this Act, [ and] family child -care homes , and other matters as directed by the 25
General Assembly. The council shall provide input and recommendations for ways 26
to improve quality, access, and outcomes. 27
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(7) The council shall make an annual report by December 1 each year that provides 1
summaries of its actions and discussions from that year and recommendations to 2
address the availability, affordability, accessibility, and quality of child care in the 3
Commonwealth. A copy of the annual report shall be posted on the cabinet's 4
website and provided to the secretary, the Governor, and the Legislative Research 5
Commission for referral to the Interim Joint Committee on Families and 6
Children. 7
SECTION 4. A NEW SECTION OF KRS CHAPTER 199 IS CREATED TO 8
READ AS FOLLOWS: 9
(1) As used in this section: 10
(a) "Child-care microcenter" means a category of regulated child care 11
supervised by the cabinet that serves between four (4) and twenty -four (24) 12
children in a nonresidential setting for more than three (3) hours per day; 13
(b) "Eligible applicant" means a provider of a child-care program that: 14
1. Has been licensed or certified by the cabinet for at least three (3) years 15
at the time of application; 16
2. Is in good standing with the cabinet; and 17
3. Participates in the quality -based gradua ted early care and education 18
rating system established under KRS 199.8943; 19
(c) "Nontraditional work hours" means hours of employment that generally 20
but not exclusively occur between 7 p.m. to 5 a.m. Monday to Friday, or 21
between 7 p.m. on Friday to 5 a.m. on Monday; 22
(d) "Opportunity zones" means a population census tract that is a low -income 23
community and designated as a qualified opportunity zone under Sections 24
1400Z-1 and 1400Z-2 of the Internal Revenue Code; and 25
(e) "Rural areas" means a county with a pop ulation of less than fifty thousand 26
(50,000) residents. 27
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(2) It is the intent of the General Assembly to allow for licensed child -care 1
microcenters in order to encourage innovative child -care services in high -need 2
areas and underserved populations, includin g but not limited to rural areas, 3
workers with nontraditional hours, opportunity zones, parents in need of 4
emergency or drop-in services, and postsecondary students and campuses. Child -5
care microcenters shall provide quality services, operate under setting -aligned 6
health and safety standards, and be permitted to request and receive special 7
variances from established standards and administrative regulations at the 8
discretion of the cabinet. 9
(3) The Kentucky Child -Care Microcenter Program is hereby establishe d within the 10
cabinet to regulate the standards and operations of child -care microcenters. To 11
administer the program, the cabinet may enter into contracts with third parties to 12
administer the program or specific parts of the program. 13
(4) The cabinet shall p romulgate administrative regulations in accordance with KRS 14
Chapter 13A by July 1, 2027, to implement this section and determine appropriate 15
standards under which child -care microcenters may be licensed and operated in 16
Kentucky. 17
(5) The cabinet shall estab lish standards for operations, including but not limited to 18
staff background checks, adult -to-child ratios, health and safety standards, 19
facility requirements, teacher and director training, and required paperwork for 20
employees and enrolled children. In de veloping these standards, the cabinet shall 21
solicit feedback from key stakeholders, including licensed and certified child -care 22
providers, early childhood experts, local child care resource and referral 23
agencies, the Kentucky Child Care Advisory Council, a nd other relevant 24
stakeholders. 25
(6) (a) The cabinet shall establish a process by which a child -care microcenter 26
provider may apply for and receive a variance from established standards 27
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and administrative regulations for child -care microcenters. Application s 1
shall demonstrate that the requested variance will not, in any way, 2
jeopardize the health and safety of children receiving care at the child -care 3
microcenter. 4
(b) Approved variances shall only apply to the specific child -care microcenter 5
for which a variance is requested. 6
(c) Denials of applications for variances are not contestable. 7
(d) An eligible applicant for the program may request a variance in its initial 8
program application. 9
(e) An approved child -care microcenter provider or eligible applicant may 10
request a variance only once in a calendar year and shall not be allowed to 11
operate with more than one (1) approved variance in place at a time. 12
(7) Child-care microcenters shall not be required to provide meals or transportation 13
to children enrolled in the program. 14
(8) Playgrounds shall be optional for child -care microcenters, but a program shall 15
have a plan for gross motor activity. 16
(9) Child-care microcenters may utilize mixed age group child care, but the licensed 17
capacity of the child-care microcenter shall be based on the youngest child served 18
in the center. 19
(10) The cabinet shall ensure that the application and approval process for child -care 20
microcenters is efficient and streamlined, and the application fee for a child -care 21
microcenter shall be cost-effective. 22
(11) Only eligible applicants may be approved to operate a child-care microcenter. 23
(12) The cabinet shall begin accepting and approving child -care microcenter 24
applications from eligible applicants no earlier than July 1, 2027. 25
(13) The cabinet shall approve or deny an application within ninety (90) days of 26
receipt. If an application is denied, the cabinet shall notify the applicant and 27
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explain its reasoning. 1
(14) In reviewing and approving applications, the cabinet shall prioritize applications 2
from eligible applicants that: 3
(a) Seek to provide services in an opportunity zone or rural area; 4
(b) Seek to provide services to parents of children with nontraditional work 5
hours; or 6
(c) Involve community partnerships with entities including but not limited to 7
employers, schools, or faith-based organizations. 8
(15) The cabinet shall authorize no more than ten (10) child -care microcenters to 9
operate in the state at one (1) time, with no more than two (2) child -care 10
microcenters allowable within a single county. 11
(16) The cabinet shall develop an outreach plan to raise awareness of the program. 12
This plan shall include partnerships with nonprofits and local child care resource 13
and referral agencies in different parts of the state. 14
(17) (a) By December 1, 2027, the cabinet shall submit a report to the Legislative 15
Research Commission for referral to the Interim Joint Committee on 16
Families and Children detailing the number of application s received, the 17
number of applications approved, the locations of approved and denied 18
applications, the number of children being served, and the number and 19
nature of approved and denied variances. 20
(b) By December 1, 2028, the cabinet shall submit a report to the Legislative 21
Research Commission for referral to the Interim Joint Committee on 22
Families and Children containing updated information on all components 23
in paragraph (a) of this subsection, and also include commentary from the 24
cabinet on the efficacy o f the program in achieving the legislative intent of 25
the program outlined in this section. 26
SECTION 5. A NEW SECTION OF KRS CHAPTER 199 IS CREATED TO 27
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READ AS FOLLOWS: 1
(1) Of the required hours of cabinet -approved early care and education training that 2
shall be completed each year between July 1 and June 30 for: 3
(a) Licensed child-care providers, at least three (3) of those training hours shall 4
focus on working with children with special needs. This requirement shall 5
begin the first year of employment in a licensed child -care program and 6
continue each subsequent year; and 7
(b) Certified family child-care home providers, at least two (2) of those training 8
hours shall focus on working with children with special needs. This 9
requirement shall begin in the first year of employment in a certified family 10
child-care home program and continue each subsequent year. 11
(2) (a) If a child in a licensed or certified child -care program is offered support 12
programs, such as developmental therapy or academic intervention, 13
through an Individualized Family Service Plan or an Individualized 14
Education Program created in accordance with the Individuals with 15
Disabilities Education Act, Part B or C, and the child’s parent or caregiver 16
has submitted writt en notification describing the support program to the 17
licensed or certified child -care provider, then a licensed or certified child -18
care provider shall not prevent the diagnostician, therapist, or 19
interventionist from being present on the premises of the c hild-care center 20
or family child-care home for the purpose of providing services to that child. 21
(b) This subsection shall not be construed to require personnel of a local school 22
district to provide support programs on the premises of a licensed or 23
certified child-care program. 24
SECTION 6. A NEW SECTION OF KRS CHAPTER 199 IS CREATED TO 25
READ AS FOLLOWS: 26
(1) Beginning December 1, 2026, and every month thereafter, the Education and 27
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Labor Cabinet, in coordination with the Cabin et for Health and Family Services, 1
shall compile and produce a monthly report providing a comprehensive snapshot 2
of all licensed and certified child -care providers, Head Start services, child care 3
services regulated by the United States Department of Defen se, and state -funded 4
public preschool services operating within the Commonwealth. 5
(2) The report shall include statewide and regional counts of the number of each of 6
these services at the time of the snapshot, and to the greatest extent possible 7
provide additional information, including but not be limited to: 8
(a) The name and physical address of each service provider; 9
(b) The type of licensure or certification held by each service provider; 10
(c) The licensed capacity of each service provider; 11
(d) The number of child care and early childhood education professionals at 12
each service provider, and in total on a statewide and regional basis; 13
(e) Whether or not a program’s services are half-day or full-day; 14
(f) The actual enrollment by age group of each service pro vider, if available; 15
and 16
(g) If actual enrollment is unavailable, an estimated actual capacity reflecting 17
the number of children the provider can accommodate based on operational 18
considerations, including staffing levels and available physical space. 19
(3) The report shall be organized at both the statewide and regional or county level. 20
(4) The Education and Labor Cabinet shall make the report publicly available 21
through a searchable, user-friendly online database. The database shall: 22
(a) Be updated monthly; 23
(b) Include a historical archive of past reports; and 24
(c) Be maintained in a manner that supports access and use by the public, 25
policymakers, and researchers. 26
(5) This section shall not be construed to authorize the release of personally 27
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identifiable information of enrolled children or staff. 1
(6) As part of the first report on December 1, 2026, the cabinet shall include a 2
historical analysis of the availability of child care and early childhood education 3
services on both a statewide and regional basis to illustrate how the availability of 4
child care services in the Commonwealth has changed over time. 5
(7) By July 1, 2027, or earlier if determined feasible, the Cabinet for Health and 6
Family Services shall develop and implement processes to track the real c apacity 7
of licensed and certified child care services in the Commonwealth. The cabinet 8
shall ensure that its processes are minimally burdensome on licensed and 9
certified child -care providers. To the greatest extent possible, the cabinet shall 10
collect and report real capacity information for individual age groups of children. 11
(8) The cabinet shall make information on real capacity available to the public and 12
shall report this information to the Education and Labor Cabinet on at least a 13
quarterly basis. 14
(9) Beginning July 1, 2027, the Education and Labor Cabinet, in coordination with 15
the Cabinet for Health and Family Services, shall develop and publish an 16
objective quarterly report comparing the supply of licensed and certified child 17
care services in the Commo nwealth to the potential need for child care services. 18
This information shall be made available on a statewide, regional, and county -19
level basis and is intended to help policymakers and individual communities 20
understand gaps between available child care services and the potential need. 21
(10) As used in this section: 22
(a) "Potential need for child care services" means children under the age of six 23
(6) with all available parents in the labor force according to the American 24
Community Survey; 25
(b) "Real capacity" means the number of children that a child care service is 26
actively enrolling in its program at the time in which the analysis of real 27
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capacity is being conducted; and 1
(c) "Supply of licensed and certified child care services" means the total 2
number of children under the age of six (6) that child care services within a 3
geographic area are actively enrolling at the time in which the analysis is 4
being conducted. If this information is not available, the total licensed 5
capacity for licensed and certified servic es may be used, provided that 6
capacity is restricted to services for children under the age of six (6). The 7
report shall also include an accounting of services provided by the United 8
States Department of Defense, the Office of Head Start, and state -funded 9
public preschool programs. 10
(11) The report shall utilize a distance -based methodology to account for cross -state 11
and cross-county interactions between children and licensed and certified child -12
care providers. The report shall be made publicly available. 13
SECTION 7. A NEW SECTION OF KRS CHAPTER 199 IS CREATED TO 14
READ AS FOLLOWS: 15
(1) The Cabinet for Health and Family Services shall establish a voluntary 16
designation process through which any licensed or certified child -care provider 17
may identify as a faith-based program. 18
(2) The faith -based designation shall be displayed in all public -facing child -care 19
databases maintained or overseen by the Commonwealth. The cabinet shall work 20
to ensure that nonprofits, organizations, and local communities in Kentucky that 21
maintain public -facing child -care databases are aware of this designation 22
process. 23
(3) Participation in the designation process shall be optional and open to all licensed 24
and certified child-care providers. 25
(4) The presence or absence of a faith -based designation shall not be used by the 26
cabinet or any other state agency to confer pref erential treatment, impose 27
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limitations, or otherwise discriminate for or against any child-care provider. 1
SECTION 8. A NEW SECTION OF KRS CHAPTER 199 IS CREATED TO 2
READ AS FOLLOWS: 3
(1) By October 1, 2026, and annually th ereafter, the Office of State Budget Director 4
shall produce a comprehensive report outlining all state and federal spending on 5
child care and early childhood education services in the prior state fiscal year, 6
including but not limited to licensed and certi fied child -care providers and 7
preschool services. The report shall include: 8
(a) All federal dollars that were received, appropriated, and allocated and shall 9
clarify what federal programs provided funding, how much funding was 10
provided, and what Kentucky programs these funds supported; 11
(b) All state dollars, including but not limited to general fund and tobacco 12
settlement dollars, that were appropriated and allocated to child care and 13
early childhood education programs in Kentucky; 14
(c) An explanation of ins tances where federal dollars were braided or 15
combined with other federal funding streams to support programs, 16
including instances where federal dollars for child care were rolled into 17
other programs or where federal dollars not intended for child care were 18
rolled into child-care programs; 19
(d) An explanation of any budget allotment modifications concerning child -20
care services or early childhood education services; and 21
(e) An inventory of all state programs receiving state or federal funding, or a 22
combination thereof, and list their total funding amounts along with a 23
breakdown of the specific funding sources for each program. 24
(2) To produce the annual report, the Office of State Budget Director shall: 25
(a) Consult with the Cabinet for Health and Family Services, the Education 26
and Labor Cabinet, the Department of Education, the Governor’s Office of 27
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Early Childhood, and the Department of Revenue; and 1
(b) Work collaboratively with the Interim Joint Committees o n Families and 2
Children and Appropriations and Revenue. 3
(3) The Office of State Budget Director shall submit the report to the Legislative 4
Research Commission for referral to the Interim Joint Committees on Families 5
and Children and Appropriations and Reve nue. The report shall be made 6
available to the public. 7
SECTION 9. A NEW SECTION OF KRS CHAPTER 199 IS CREATED TO 8
READ AS FOLLOWS: 9
(1) The Cabinet for Health and Family Services shall submit an approval request to 10
the federal Administration for Children and Families to utilize a cost estimation 11
model to inform payment rates beginning with the federal fiscal year 2028 -2030 12
Child Care and Development Fund state plan. The cost -estimation model shall 13
incorporate program factor s, including but not limited to provider type; hours 14
and seasons of operation; child age range served; geography; level of quality; 15
staff salaries and benefits; facilities, including utilities, maintenance, and 16
insurance; training and professional development; curricula; and supplies. 17
(2) In developing the approval request, the cabinet shall consult regularly with the 18
Kentucky Child Care Advisory Council, and the council shall have an 19
opportunity to review the request before the cabinet submits it. 20
(3) It is the intent of the General Assembly to ensure that the state’s methodology for 21
setting rates for reimbursement to licensed and certified child -care providers 22
serving children under the Child Care and Development Fund program accounts 23
for the costs incurred by providers to serve these children in addition to estimated 24
market rates. 25
(4) (a) As used in this section, "Child Care Assistance Program" means 26
Kentucky’s child -care subsidy program providing families who meet 27
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eligibility requirements established by t he cabinet, with the financial 1
resources to find and afford quality child care in accordance with the Child 2
Care and Development Fund as defined in 45 C.F.R. sec. 98.2. 3
(b) To the extent funds are available and to the extent allowable under federal 4
law, th e cabinet shall exclude all earned and unearned income from the 5
eligibility determination for the Child Care Assistance Program if an 6
applicant: 7
1. Meets all nonincome -related requirements for program eligibility as 8
determined by the cabinet; and 9
2. a. Has verified employment in a regulated licensed Type I or 10
licensed Type II child -care program, a child -care microcenter 11
program, or a certified family child-care home; or 12
b. Is the owner or operator of a certified family child -care home or 13
licensed Type II child-care program. 14
Section 10. KRS 199.882 is amended to read as follows: 15
As used in KRS 199.881 to 199.888: 16
(1) "Cabinet" means the Cabinet for Health and Family Services; 17
(2) "Child-care provider" means a child -care pro vider that is rated pursuant to the 18
quality-based graduated early care and education program rating system set forth in 19
KRS 199.8943; 20
(3) "Contribution" means a direct payment to a child-care provider made either directly 21
by an employer or through a third party on behalf of the employer [vendor] to 22
subsidize an employee's eligible child-care costs; 23
(4) "Eligible child-care costs" means costs to be incurred by an individual for services 24
rendered by an eligible child-care provider; 25
(5) "Employee" means an indi vidual who works in Kentucky and is employed by an 26
employer; 27
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(6) "Employer" means a nonprofit or for -profit entity with at least one (1) employee 1
who works in Kentucky in each of twenty (20) or more calendar weeks in the 2
current or preceding calendar year; 3
(7) "Fund" means the fund administered by the cabinet as described in KRS 199.885; 4
(8) "Program" means the Employee Child Care Assistance Partnership; 5
(9) "Small business" means a business with fewer than fifty (50) employees who are 6
individually contracted to work more than thirty-five (35) hours per week; 7
(10) "State match" means the money paid directly to the child -care provider by the 8
cabinet or a third -party administrator from the fund described in KRS 199.885; [ 9
and] 10
(11) "State median household income" means the most recent estimate available of real 11
median household income for the state, as determined by the United States Census 12
Bureau, and adjusted for family size; and 13
(12) "Third-party administrator" means a private ent ity contracted by the cabinet to 14
administer the program. 15
Section 11. KRS 199.883 is amended to read as follows: 16
(1) The Employee Child Care Assistance Partnership Program is hereby established 17
under the cabinet. To administer the program, the cabinet may: 18
(a) Delegate authority to a subsidiary department; and 19
(b) Coordinate and share information with other executive branch agencies[; and 20
(c) Enter into contracts with third parties to administer the program or specific 21
parts of the program]. 22
(2) The cabinet shall oversee and regulate the program, and a private entity 23
contracted by the cabinet shall administer the program. 24
(3) (a) By December 1, 2026, the cabinet shall enter into a contract with a private 25
entity to administe r the program as the third -party administrator. The 26
cabinet may utilize administrative funding from the fund, in accordance 27
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with Section 12 of this Act, to carry out this contract. 1
(b) To provide incentives for a third -party administrator to enroll more 2
employers and employees in the program, the cabinet shall enter into an 3
agreement in which a third -party administrator is allowed to retain a 4
percentage of the employer contribution or state match, or some 5
combination thereof, for each administered contract, as determined by the 6
cabinet. The cabinet may offer additional incentives tied to specific 7
performance metrics. 8
(c) The cabinet shall routinely audit any third -party administrator responsible 9
for administering the program to ensure compliance with state l aws and 10
administrative regulations. 11
(d) The cabinet shall establish a transition plan for employers already 12
participating in the program at the time of selecting a third -party 13
administrator to ensure a smooth transition for providers, employers, and 14
employees. 15
(4) The cabinet shall partner with a nonprofit entity serving communities in each of 16
the fifteen (15) area development districts established in KRS 147A.050 to 17
promote and raise awareness of the program. This work shall be conducted in 18
coordination wi th the third -party administrator. Partnerships shall be voluntary 19
and optional for designated nonprofits. The cabinet may use administrative funds 20
in accordance with Section 12 of this Act, or other funds, for the purposes of this 21
subsection. 22
(5) In accordance with a contract entered into with the cabinet under this section, the 23
third-party administrator shall be responsible for: 24
(a) Creating and making available via a digital dashboard an accessible and 25
easy-to-use[a] standardized application and contract for participation in the 26
program; 27
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(b) Using technology and digital tools to process applications and 1
contracts[Processing the contract] between an employer, employee, and child-2
care provider that is submitted to the third-party administrator[cabinet]; 3
(c) Notifying the parties of their enrollment status in the program; 4
(d) Managing and administering the program funds under the cabinet's 5
supervision and direction; 6
(e) Securing third -party subcontractors[vendors] in accordance with all 7
applicable federal and state procurement regulations, if deemed necessary; 8
(f) Verifying the eligibility of the respective employee, employer, and child -care 9
provider as parties to a contract for participation in the program prior t o 10
disbursement of a state match; 11
(g) Collecting and verifying household income information from eligible 12
employees and determining the amount of the state match for which the 13
employee is eligible;[ and] 14
(h) Distributing educational materials about the prog ram's objectives, benefits, 15
and eligibility requirements to employers, employees, and child -care 16
providers; 17
(i) Ensuring that application and reapplication processes under this program 18
for employers and employees are simple and efficient; 19
(j) Ensuring that compliance with and utilization of the program is simple and 20
efficient for all parties; 21
(k) Ensuring that application and reapplication processes and contracts for this 22
program are accessible and available in multiple formats, including but not 23
limited to digital and paper formats, and that applications and contracts are 24
allowed to be submitted by various means, including but not limited to 25
digital platforms, first-class mail, and email; 26
(l) Responding to inquiries and requests for assistance from all part ies in a 27
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timely and efficient manner; 1
(m) Providing routine updates to all parties on the status of contracts and 2
payments; 3
(n) Issuing state matches from the fund to child -care providers in a timely 4
manner and in accordance with individual contracts; 5
(o) Receiving contributions from employers and dispersing them to child -care 6
providers in a timely manner and in accordance with individual contracts; 7
(p) Creating an efficient preapproval process for employers, employees, and 8
child-care providers interested in participation in the program; and 9
(q) Creating a streamlined reapplication process for existing contracts which 10
parties are requesting to renew. 11
(6)[(3)] The third-party administrator [cabinet] shall review the completed contract 12
after it is submitted by the employer and within ten (10) business days, notify the 13
parties of approval, disapproval, or request additional information. If[, if] the 14
employee, employer, and the proposed child -care provider meet program eligibility 15
requirements, the third -party administrator shall agree to match , from the fund, 16
the contribution made by the employer up to one hundred percent (100%) of the 17
cost of the employee's eligible child -care costs[service from the fund] . Any denial 18
of a contract shall include an explanation of the exact reasoning for why the 19
contract was denied. 20
(7)[(4)] The third-party administrator[cabinet] shall only become party to a proposed 21
contract under this program if the fund reflects a positive balance based on both: 22
(a) [The cabinet's ] Existing contractual obligations already accrued under this 23
program; and 24
(b) [The cabinet's ] Additional financial obligation imposed by the pr oposed 25
contract under this program. 26
(8)[(5)] The third-party administrator[The cabinet] shall not agree to become party to 27
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a proposed contract pursuant to this program if the corresponding financial 1
obligation would cause the fund to accrue a negative balance. 2
(9)[(6)] The third -party administrator [The cabinet] shall maintain a waitlist of 3
contracts submitted after available funds were committed. The third-party 4
administrator[cabinet] shall become party to a proposed contract from the waitlist 5
as new funds become available and according to the order in which it was received. 6
(10)[(7)] The third-party administrator[The cabinet] shall issue a state match directly 7
to the child -care provider[ or through a third -party vendor] for the duration of the 8
contract. 9
(11)[(8)] The third-party administrator[The cabinet] shall not disclose an employee's 10
personal information without that individual's express written consent.[ 11
(9) In the first fiscal year of the program, the cabinet shall administer the program 12
according to the following: 13
(a) The cabinet shall begin administering the program after April 8, 2022, 14
including but not limited to: 15
1. Promulgating the required administrative regulations as described in 16
KRS 199.884; and 17
2. Soliciting third-party vendor contracts, if deemed necessary; 18
(b) The cabinet shall not begin accepting proposed contracts from employers 19
pursuant to this program prior to ninety (90) calendar days before July 1, 20
2023; and 21
(c) The cabinet shall not disburse state matches from the fund as a party to a 22
contract with an employer, employee, and child -care provider pursuant to this 23
program prior to July 1, 2023.] 24
(12)[(10)] Beginning in 2026[2024] and every year thereafter, the third-party 25
administrator[cabinet] shall begin accepting proposed contracts under this 26
program from employers, employees, and child -care providers for the next fiscal 27
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year according to the following: 1
(a) Ninety (90) calendar days before July 1 for employers with existing approved 2
contracts pursuant to the program; and 3
(b) Forty-five (45) calendar days before July 1 for all other employers. 4
(13)[(11)] [Beginning December 15, 2023, and every year thereafter, ] The cabinet shall 5
publish reports detailing the efficacy of the program by July 15 and 6
January[December] 15 of each year and shal l submit the report to the Legislative 7
Research Commission for referral to the Interim Joint Committee on Families 8
and Children. The report shall include at least the following information about the 9
program: 10
(a) Any appropriation made in the past fiscal year to the fund; 11
(b) The total number of standardized contracts submitted by employers; 12
(c) The total amount of state matches paid out of the fund by the cabinet; 13
(d) The breakdown of the state matches paid by county; 14
(e) Information on the size, geographical location, and industry type of employers 15
who participated in the program; 16
(f) The number, license type, quality rating, and geographical distribution of 17
participating child-care providers; 18
(g) The average cost for serv ices charged by child -care providers participating in 19
the program and information on how these costs have increased or decreased 20
during the most recent reporting period and previous reporting periods; 21
(h) The number and total dollar value of contracts not approved by the cabinet; [ 22
and] 23
(i) The demographic information of employees participating in the program[.]; 24
(j) The number of employers participating in the program; and 25
(k) Recommendations for improving the program and how to give employers 26
more options to utilize the program in order to support access to affordable 27
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child care services in the Commonwealth[ 1
(12) Prior to one hundred twenty (120) calendar days before July 1, 2023, the cabinet 2
shall publish a report detailing implementation plans for the program and submit the 3
report to the Legislative Research Commission]. 4
Section 12. KRS 199.885 is amended to read as follows: 5
(1) There is hereby established in the State Treasury a revolving account to be known 6
as the Employee Child Care Assistance Partnership fund. The fund shall consist of 7
moneys appropriated by the General Asse mbly, contributions, gifts, or grants made 8
available for the purposes of the program. 9
(2) The fund shall be administered by the cabinet or its designated department. 10
(3) Notwithstanding KRS 45.229, any moneys remaining in the fund at the close of the 11
fiscal year shall not lapse but shall be carried forward to the next fiscal year. 12
(4) Any interest earnings of the fund shall become a part of the fund and shall not 13
lapse. 14
(5) Moneys deposited in the fund are hereby appropriated for the purposes set forth in 15
KRS 199.881 to 199.888 and shall not be appropriated or transferred by the General 16
Assembly for any other purpose. 17
(6) A third-party administrator[The cabinet] shall issue state matches out of the fund 18
to child-care providers in accordance with the provisio ns of the respective contracts 19
and in the order that the cabinet processed the contracts. 20
(7) (a) The state match shall not exceed one hundred percent (100%) of the 21
contribution made by the employer for contracts in which the employee's 22
household income is equal to or less than one hundred percent (100%) of the 23
state median household income. 24
(b) The state match shall decrease by ten percent (10%) for each twenty percent 25
(20%) increase in household income over one hundred percent (100%) of the 26
state median h ousehold income up to one hundred eighty percent (180%) of 27
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the state median household income. 1
(c) The state match shall equal fifty percent (50%) for contracts in which the 2
employee's household income exceeds one hundred eighty percent (180%) of 3
the state median household income. 4
(8) In each fiscal year, twenty -five percent (25%) of the total fund shall be distributed 5
to agreements in which an employer is a small business. 6
(9) In fiscal year 2022 -2023, five percent (5%) of the total fund shall be distribute d to 7
the cabinet to administer the program. Beginning in fiscal year 2026 -2027 and in 8
every fiscal year thereafter, up to ten percent (10%)[three percent (3%)] of the total 9
fund shall be distributed to the cabinet for administrative purposes related to the 10
program[to administer the program]. 11
(10) A state match issued pursuant to this program and administered by a third -party 12
administrator[the cabinet] is for the promotion of the general welfare and shall not 13
be considered compensation for an employee's service. 14
Section 13. KRS 199.886 is amended to read as follows: 15
(1) If an employer wishes to provide child -care assistance to an employee as a benefit 16
of employment and participate in this program, the employer may enter int o an 17
agreement with its employee and a child -care provider using the standardized 18
contract provided by a third-party administrator[the cabinet]. 19
(2) To participate in the program, an employer shall do the following: 20
(a) Access[Obtain] the standardized contract created by the cabinet and enter into 21
it with the employee and child-care provider; 22
(b) Submit the proposed contract to the third-party administrator; and[cabinet;] 23
(c) Submit any additional information as deemed necessary by the third-party 24
administrator[cabinet] pursuant to KRS 199.884[; and 25
(d) Make contributions to the employee's eligible child -care costs directly to the 26
child-care provider or through a third -party ve ndor in accordance with the 27
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amount and frequency agreed to in the final contract]. 1
(3) (a) The employer shall submit its contributions for each contract under this 2
program to the third-party administrator, either in lump-sum payments or in 3
accordance with the amount and frequency agreed to in the final contract. 4
The third -party administrator shall distribute the contributions from the 5
employer to the child -care provider along with the state match in a timely 6
manner and in accordance with the contract. In th e event that a contract is 7
terminated early, for any reason, the third -party administrator shall remit 8
any remaining funds contributed by the employer for the particular contract 9
back to the employer. 10
(b) If requested by the employer and approved by the th ird-party administrator 11
and the child -care provider, employers shall have the ability to make 12
contributions directly to child-care providers. 13
(c) All payments to child -care providers shall be made in a timely manner in 14
accordance with each contract's individual stipulations. 15
(4) To participate in the program, an employee shall complete the standardized contract 16
with the employer and the child -care provider and provide any additional 17
information as deemed necessary by the cabinet pursuant to KRS 199.884. 18
(5)[(4)] In the event that the agreement includes costs of service not covered by the 19
employer's contribution and the state match, the employee shall make payments to 20
the child-care provider according to the amount and frequency determined by the 21
final contract. If another member of the employee's household or family becomes a 22
party to an agreement in accordance with KRS 199.881 to 199.888, the employer 23
contribution and state match of that agreement may be utilized to pay for costs of 24
service not covered by th e employer contribution and state match of the preceding 25
agreement, provided that it does not result in overpayment to the provider. 26
Section 14. KRS 199.887 is amended to read as follows: 27
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(1) Termination of an active con tract between an employer, employee, child -care 1
provider, and a third -party administrator [the cabinet] pursuant to this program 2
shall occur in the following circumstances: 3
(a) If the relationship between the employee and employer is severed, the 4
employer s hall notify the child -care provider and the third-party 5
administrator[cabinet] within three (3) business days of the separation, and 6
the contract is terminated on the calendar date provided by the employer in 7
the notification. If the employer fails to make this notification and the third-8
party administrator[cabinet] issues a state match to the provider on behalf of 9
that employer's employee, then the employer shall reimburse the 10
fund[cabinet] for the unnecessary state match; 11
(b) If the employer fails to make a contribution or contributions for the eligible 12
child-care costs in accordance to the terms of the contract, the child -care 13
provider shall notify the third-party administrator [cabinet] within five (5) 14
business days. After rec eiving notification from the provider, the third-party 15
administrator[cabinet] shall temporarily cease providing a state match and 16
shall notify the employer that the contract will be terminated unless the 17
employer remedies the nonpayment within five (5) bus iness days of receiving 18
notification from the third-party administrator[cabinet]. If the provider fails 19
to make this notification and receives a state match from the third-party 20
administrator[cabinet] on behalf of that employer's employee, the provider 21
shall reimburse the fund[cabinet] for the unnecessary state match; or 22
(c) If the relationship between the employee and the child care provider is 23
severed and the employee ceases to utilize the child care provider's services, 24
the employee shall notify the employer within three (3) business days, and the 25
employer shall notify the third-party administrator[cabinet] and terminate the 26
contract. 27
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(2) Termination of an active contract between an employer, employee, child -care 1
provider, and the third-party administrator[cabinet] pursuant to this program may 2
occur in the following circumstances: 3
(a) If the employee fails to pay the child -care provider for costs not covered by 4
the employer contribution and the state match in accordance to the terms of 5
the contract, the child-care provider may give the employee reasonable time to 6
remedy the nonpayment. The child -care provider may notify the third-party 7
administrator[cabinet] and terminate the contract on the date that the 8
notification was issued. If the child -care provider voluntarily excuses the 9
employee's nonpayment or the child -care provider does not notify the third-10
party administrator[cabinet] within two (2) calendar months from the date of 11
the employee's nonpayment and continues to provide services, then the 12
contract made between all the parties will automatically reflect the reduction 13
in value; 14
(b) If the child -care provider ceases participation or otherwise loses its rating in 15
the rating system described in KRS 199.8943, it shall notify all parties to the 16
agreement immediately; and 17
(c) The employer, employee, or child -care provider may terminate the contract at 18
any time and for any reason. The terminating party shall notify all the parties 19
to the contract and specify the desired termination date, which shall occur no 20
sooner than two (2) weeks from the date of notification unless the child -care 21
provider gives its consent to an earlier termination date. All parties to the 22
contract shall be financially obligated, according to the provisions of the 23
contract, up to the termination date. 24
(3) Any child -care provider who receives an employer contribution as part of this 25
program or a state match for services not rendered and which will not be rendered 26
after the relationship between the employee and child care provider is severed or 27
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after the termination of an active contract in accordance with this section shall 1
return those employer contributions and match funds to the respective parties within 2
five (5) days of receipt of the funds. 3
Section 15. KRS 199.8982 is amended to read as follows: 4
(1) (a) The cabinet shall establish a family child -care home certification program 5
which shall be administered by the department. A family child -care provider 6
shall apply for certification of the provider's home if the provider is caring for 7
four (4) to six (6) children unrelated to the provider. A family child -care 8
provider caring for three (3) or fewer children may apply for certification of 9
the provider's home at the discretion of the provider. Applicants for 10
certification shall not have been found by the cabinet or a court to have 11
abused or neglected a child, and shall meet the following minimum 12
requirements: 13
1. Submit two (2) written character references; 14
2. Provide a written statement from a physician or adv anced practice 15
registered nurse that the applicant is in good health; 16
3. Submit to a criminal record check in accordance with KRS 199.8965; 17
4. Provide smoke detectors, a telephone, an adequate water supply, 18
sufficient lighting and space, and a safe environ ment in the residence in 19
which care is provided; 20
5. Provide a copy of the results of a tuberculosis risk assessment and the 21
results of any appropriate follow -up with skin testing or chest X -ray for 22
applicants who are determined to be at risk for developing tuberculosis 23
in accordance with the recommendations of the Centers for Disease 24
Control and Prevention within thirty (30) days of the date of application 25
for certification; and 26
6. Demonstrate completion of a total of at least six (6) hours of training in 27
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the following areas within three (3) months of application for 1
certification: 2
a. Basic health, safety, and sanitation; 3
b. Recognizing and reporting child abuse; and 4
c. Developmentally appropriate child-care practice. 5
(b) Initial applications for certification shall be made to the department. The 6
cabinet may promulgate administrative regulations to establish fees that shall 7
not exceed costs of the program to the cabinet, for proper administration of 8
the certification. The department shall issue a certificate of operation upon 9
inspecting the family child -care home and determining the provider's 10
compliance with the provisions of this section. The inspection shall be 11
unannounced. A certificate of operation issued pursuant to this section shall 12
not be transferable and shall be renewed every two (2) years for a fee that 13
shall not exceed costs of the program to the cabinet for renewal. 14
(c) A certified family child-care provider shall display the certificate of operation 15
in a prominent place within the residence in which care is provided. The 16
cabinet shall provide the certified family child -care provider with written 17
information explaining the requirements for a family day -care pro vider and 18
instructions on the method of reporting violations of the requirements which 19
the provider shall distribute to parents. 20
(d) Upon request of any person, the cabinet shall provide information regarding 21
the denial, revocation, suspension, or violation of any type of day-care license 22
of the family child -care provider. Identifying information regarding children 23
and their families shall remain confidential. 24
(e) The cabinet shall provide, upon request, public information regarding the 25
inspections of and t he plans of correction for the family child -care home 26
within the past year. All information distributed by the cabinet under this 27
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paragraph shall include a statement indicating that the reports as provided 1
under this paragraph from the past five (5) years are available from the family 2
child-care home upon the parent's, custodian's, guardian's, or other interested 3
person's request. 4
(f) The cabinet shall promulgate administrative regulations in accordance with 5
KRS Chapter 13A which establish standards for the issuance, monitoring, 6
release of information under this section and KRS 199.896 and 199.898, 7
renewal, denial, revocation, and suspension of a certificate of operation for a 8
family child-care home and establish criteria for the denial of certification if 9
criminal records indicate convictions that may impact the safety and security 10
of children in care. A denial, suspension, or revocation of a certificate may be 11
appealed, and upon appeal an administrative hearing shall be conducted in 12
accordance with KRS Chap ter 13B. If the cabinet has probable cause to 13
believe that there is an immediate threat to the public health, safety, or 14
welfare, the cabinet may take emergency action to suspend a certificate 15
pursuant to KRS 13B.125. The cabinet shall promulgate administr ative 16
regulations to impose minimum staff -to-child ratios. The cabinet may 17
promulgate administrative regulations relating to other requirements 18
necessary to ensure minimum safety in family child -care homes. The cabinet 19
shall develop and provide an "easy -to-read" guide containing the following 20
information to a family child-care provider seeking certification of his home: 21
1. Certification requirements and procedures; 22
2. Information about available child-care training; and 23
3. Child-care food sponsoring organizations. 24
(2) Family child -care providers shall annually demonstrate to the department 25
completion of at least six (6) hours of training in child development. These hours 26
shall include but are not limited to one and one -half (1.5) hours one (1) time every 27
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five (5) years of continuing education in the recognition and prevention of pediatric 1
abusive head trauma, as defined in KRS 620.020. Training in recognizing pediatric 2
abusive head trauma may be designed in collaboration with organizations and 3
agencies that specialize in the prevention and recognition of pediatric abusive head 4
trauma approved by the secretary of the Cabinet for Health and Family Services. 5
The one and one -half (1.5) hours of continuing education required under this 6
section shall be included in the current number of required continuing education 7
hours. 8
(3) The cabinet shall, either through the development of or approval of, make available 9
a model training curriculum and training materials, including video instructional 10
materials, to cover the are as specified in subsection (1)(a)6. of this section. The 11
cabinet shall develop or approve the model training curriculum and training 12
materials to cover the areas specified in subsection (1)(a)6. of this section. 13
(4) (a) As used in this subsection "local go vernment" means a city, county, charter 14
county, urban-county government, consolidated local government, or unified 15
local government. 16
(b) The provisions of this section shall supersede all local government ordinances 17
or regulations pertaining to the certifi cation, licensure, and training 18
requirements related to the operation of family child -care homes and no local 19
government shall adopt or enforce any additional licensure, certification, or 20
training requirements specifically applicable to family child -care h omes in 21
addition to those provided in this section. This subsection shall not be 22
interpreted or construed to exempt family child -care homes from compliance 23
with local government ordinances and regulations that apply generally within 24
the jurisdiction. 25
(c) Because the availability of adequate child-care as an essential business is vital 26
to the Commonwealth's state and local economies, by January 1, 2022, a local 27
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government that has adopted land use regulations pursuant to KRS Chapter 1
100 shall specifically na me family child -care homes in the text of its zoning 2
regulations to authorize the board of adjustments to separately consider the 3
applications of proposed family child -care homes for conditional use permits 4
within the residential zones of the planning unit where they are not a fully 5
permitted use pursuant to KRS 100.237. 6
(5) Notwithstanding any state law or administrative regulation to the contrary: 7
(a) A child -care provider located on a military installation or military facility 8
that is licensed or certifi ed as a family child -care provider by the United 9
States Department of Defense (DOD), any branch of the Armed Forces as 10
defined in KRS 40.010, the National Guard, or reserve component thereof 11
shall be exempt from the requirements of this section; 12
(b) For a pilot period of two (2) years, beginning July 1, 2026, through June 13
30, 2028, a family child -care home shall be exempt from the requirements 14
of this section if it is: 15
1. Located outside of the boundaries of a military installation of any 16
branch of the Armed Forces as defined in KRS 40.010; 17
2. Providing child care exclusively to children eligible for care under the 18
DOD Instruction 6060.02; 19
3. Has a certificate issued by the DOD to provide child care; and 20
4. Has completed background screening by the DOD pursu ant to 34 21
U.S.C. sec. 20351 and 32 C.F.R. pt. 86 and has received a favorable 22
suitability and fitness determination; 23
(c) During the pilot period established in paragraph (b) of this subsection: 24
1. The regulatory authority having oversight of family child c are-homes 25
for each respective military installation shall: 26
a. Be responsible for registering each DOD -certified family child -27
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care home with the cabinet by providing, upon certification: 1
i. Name of the family child-care home operator; 2
ii. Address of the family child-care home; 3
iii. Military installation providing oversig ht over the family 4
child-care home; 5
iv. Number of children permitted to be served by the family 6
child-care home; and 7
v. Number of children actively enrolled in the family child -8
care home; 9
b. Provide the cabinet with updates to its registrations on a 10
quarterly basis; and 11
c. Immediately notify the department when the DOD adds or 12
removes a family child -care home operating under this 13
subsection from its registry or closes a family child -care home 14
for cause; 15
2. In the event the program's DOD certification as a f amily child -care 16
home operator is suspended or terminated due to noncompliance with 17
the health, safety, or licensing standards or there is substantiated 18
evidence of child abuse, neglect, or endangerment, the operator shall 19
be ineligible to apply for a chil d-care license or certification pursuant 20
to this chapter and, if voluntarily certified by the cabinet under this 21
chapter, shall be subject to an administrative action revoking its child -22
care certification; and 23
3. If the DOD substantiates child abuse, negle ct, or endangerment, the 24
operator shall have the operator's name placed on the Kentucky Child 25
Abuse and Neglect Central Registry and shall not be employed at any 26
state-regulated child care program; and 27
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(d) The Cabinet for Health and Family Services shall provide two (2) reports on 1
the registration data required in paragraph (c) of this subsection to the 2
Legislative Research Commission for referral to the Interim Joint 3
Committee on Families and Children, with the first due by December 1, 4
2026, and the second due by December 1, 2027. 5
SECTION 16. A NEW SECTION OF KRS CHAPTER 199 IS CREATED TO 6
READ AS FOLLOWS: 7
(1) As used in this section: 8
(a) "Cabinet" means the Cabinet for Health and Family Services; 9
(b) "Type I child-care center" means a child-care center licensed by the cabinet 10
to regularly provide child care services for: 11
1. Four (4) or more children in a nonresidential setting; or 12
2. Thirteen (13) or more children in a designated space separate from the 13
primary residence of a licensee; 14
(c) "Type II child -care center" means a child -care center that is the primary 15
residence of the licensee in which child care is regularly provided for at 16
least seven (7) but not more than twelve (12) children, including children 17
related to the licensee; and 18
(d) "University" means the University of Kentucky. 19
(2) By August 1, 2026, the university shall establish and operate the Kentucky 20
Kindergarten Readiness Performance-Based Child Care Incentive Pilot Program, 21
which shall operate from August 1, 2027, until July 31, 2029. 22
(3) The pilot program shall: 23
(a) Determine how to provide performance -based incentives to diverse types of 24
early childhood education providers, child -care providers, and low -income 25
parents in order to increase the number of chil dren in the Commonwealth 26
who are assessed as kindergarten ready; 27
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(b) Determine how to best assess applicants and distribute moneys; 1
(c) Develop a written plan and implement assessment processes to determine 2
kindergarten readiness for children in the Common wealth. The university 3
shall convene a working group to assist in the development of the written 4
plan and assessment processes; 5
(d) Ensure that participants in the pilot program represent geographically and 6
socioeconomically diverse areas of the Commonwealth; 7
(e) Evaluate the impact of performance -based incentives implemented through 8
the pilot program using a rigorous design framework that supports causal 9
inferences; 10
(f) Design, identify, and make available resources for parents to assist them in 11
preparing children for kindergarten readiness; 12
(g) Determine how to award funds, including but not limited to direct payments 13
or refundable tax credits, to licensed Type I and Type II child -care centers; 14
cabinet-regulated early childhood education providers, certified child -care 15
homes, and registered providers; and single or married parents who qualify 16
for the child -care subsidy administered by the cabinet pursuant to KRS 17
199.8994. To be eligible for funds: 18
1. A provider or a home shall maintain services for infants and todd lers 19
at a ratio established by the Division of Child Care within the cabinet; 20
2. A provider or a home shall maintain and submit accurate and detailed 21
records of care for any child; and 22
3. A parent shall submit records to verify he or she meets the 23
requirements to receive child care subsidy funds under KRS 199.8994; 24
(h) Establish a standard for awarding a two thousand dollar ($2,000) one (1) 25
time award, including but not limited to direct payments or refundable tax 26
credits, per child once a child is designa ted by the assessment processes as 27
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kindergarten ready as follows: 1
1. A full award to a licensed Type I or Type II child -care center or 2
cabinet-regulated early childhood education provider, certified child -3
care home, or registered provider who meets the req uirements of 4
paragraph (g) of this subsection if the kindergarten -ready child 5
received full-time services from the center or provider the two (2) years 6
prior to the assessment; 7
2. A full award to a single or married parent who meets the requirements 8
of paragraph (g) of this subsection if the kindergarten -ready child was 9
cared for in the home the two (2) years prior to the assessment, 10
regardless of the utilization of a babysitter; 11
3. A full award to a licensed Type I or Type II child -care center or 12
cabinet-regulated early childhood education provider, certified child -13
care home, or registered provider who meets the requirements of 14
paragraph (g) of this subsection if the child cannot be properly 15
assessed as a kindergarten -ready child because of a formal diagnos is 16
of a disability and the child received full -time services from the 17
provider the two (2) years prior to the assessment; 18
4. A half award to a licensed Type I or Type II child -care center or 19
cabinet-regulated early childhood education provider, certified c hild-20
care home, or registered provider who meets the requirements of 21
paragraph (g) of this subsection if the kindergarten -ready child 22
received half -day services from the center and attended public 23
preschool the two (2) years prior to the assessment; and 24
5. Split awards may be granted to individuals or providers based on who 25
provided full-time services or cared for the child in the two (2) years 26
prior to the assessment; and 27
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(i) Ensure compliance with federal regulations, including but not limited to the 1
Quality Rating and Improvement Systems as established under 45 C.F.R. pt. 2
98. 3
(4) By June 1, 2027, and by June 1 annually thereafter for the duration of the pilot 4
program, the university shall annually report on the establishment and operations 5
of the pilot program to the Interim Joint Committee on Families and Children. 6
(5) By January 1, 2030, the university shall submit a report to the cabinet and the 7
Legislative Research Commission for referral to the Interim Joint Committees on 8
Families and Children, Education, and Appropriations and Revenue that: 9
(a) Details the findings of the pilot program; 10
(b) If the pilot program proves successful: 11
1. Identifies specific mechanisms for change, including but not limited to 12
educational curricula and family practices to be st prepare preschool -13
age children for kindergarten readiness; 14
2. Includes recommendations based on the pilot program's results for 15
optimizing performance -based child care incentives in the 16
Commonwealth; and 17
3. Includes recommendations and potential obstacl es for implementing 18
the program at scale; 19
(c) Details the assessment processes used to determine kindergarten readiness; 20
(d) Identifies the rates of kindergarten readiness at the end of the pilot 21
program; and 22
(e) Includes all data generated from the pilot program, which shall be made 23
available for public review and use in accordance with applicable federal, 24
state, and institutional review board policies. 25
Section 17. The General Assembly finds and declares that providing 26
performance-based incentives: 27
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(1) To diverse types of early childhood education and child -care providers leads 1
to the expansion of services across the Commonwealth; 2
(2) To low -income parents of children not receiving services from early 3
childhood education and child -care providers, Head Start, or public Pre -K is a way to 4
encourage parents to prepare their children for kindergarten; 5
(3) Increases the number of children entering school kindergarten ready, which 6
positively impacts future educational attainment; 7
(4) Encourages early childhood education and child -care providers to provide 8
services for children with special needs; and 9
(5) Would ensure positive growth and improved quality of care for infant and 10
toddler care programs. 11
Section 18. KRS 199.896 is amended to read as follows: 12
(1) A[No] person, association, or organization shall not conduct, operate, maintain, or 13
advertise any child -care center without obtaining a license as provided in KRS 14
199.892 to 199.896. 15
(2) The cabinet may promulgate administrative regulations in accordance 16
with[pursuant to] KRS Chapter 13A relating to license fees and may, in the 17
administrative regulations, establish standards of care and service for a child -care 18
center, criteria for the denial of a license if criminal records indicate convictions 19
that may impact the safety and security of children in care, and procedures for 20
enforcement of penalties which are not in contravention of this section. 21
(3) Each initial application for a license shall be made to the cabinet and shall be 22
accompanied by a fee that shall not exceed administrative costs of the program to 23
the cabinet and shall be renewable annually upon expiration and reapplication when 24
accompanied by a renewal fee that shall not exceed administrative costs of the 25
program to the cabinet. Regular licenses and renewals thereof shall expire one (1) 26
year from their effective date. 27
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(4) A[No] child-care center shall not be refused a license or have its license revoked for 1
failure to meet standards set by the secretary until after the expiration of a period 2
not to exceed six (6) months from the date of the first official notice that the 3
standards have not been met. If, however, the cabinet has probable cau se to believe 4
that an immediate threat to the public health, safety, or welfare exists, the cabinet 5
may take emergency action pursuant to KRS 13B.125. All administrative hearings 6
conducted under authority of KRS 199.892 to 199.896 shall be conducted in 7
accordance with KRS Chapter 13B. 8
(5) If, upon inspection or investigation, the inspector general finds that a child -care 9
center licensed under this section has violated the administrative regulations 10
promulgated in accordance with KRS Chapter 13A by[, standards, or requirements 11
of] the cabinet, the inspector general shall issue a statement of deficiency to the 12
center containing: 13
(a) A statement of fact; 14
(b) A statement of how an administrative regulation [, standard, or requirement of 15
the cabinet] was violated; and 16
(c) The timeframe, negotiated with the child-care center, within which a violation 17
is to be corrected, except that a violation that poses an immediate threat to the 18
health, safety, or welfare of children in the center shall be corrected in no 19
event la ter than five (5) working days from the date of the statement of 20
deficiency. 21
(6) The Cabinet for Health and Family Services, in consultation with the Office of the 22
Inspector General, shall establish by administrative regulations promulgated in 23
accordance with KRS Chapter 13A an informal dispute resolution process through 24
which a child-care provider may dispute licensure deficiencies that have an adverse 25
effect on the child-care provider's license. 26
(7) A child -care center shall have the right to appeal to th e Cabinet for Health and 27
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Family Services under KRS Chapter 13B any action adverse to its license or the 1
assessment of a civil penalty issued by the inspector general as the result of a 2
violation contained in a statement of deficiency within twenty (20) day s of the 3
issuance of the action or assessment of the civil penalty. An appeal shall not act to 4
stay the correction of a violation. 5
(8) In assessing the civil penalty to be levied against a child -care center for a violation 6
contained in a statement of defic iency issued under this section, the inspector 7
general or the inspector general's designee shall take into consideration the 8
following factors: 9
(a) The gravity of the threat to the health, safety, or welfare of children posed by 10
the violation; 11
(b) The number and type of previous violations of the child-care center; 12
(c) The reasonable diligence exercised by the child -care center and efforts to 13
correct the violation; and 14
(d) The amount of assessment necessary to assure immediate and continued 15
compliance. 16
(9) Upon a child -care center's failure to take action to correct a violation [of the 17
administrative regulations, standards, or requirements of the cabinet ] contained in a 18
statement of deficiency, or at any time when the operation of a child -care center 19
poses an immediate threat to the health, safety, or welfare of children in the center, 20
and the child-care center continues to operate after the cabinet has taken emergency 21
action to deny, suspend, or revoke its license, the cabinet or the cabinet's designee 22
shall take at least one (1) of the following actions against the center: 23
(a) Institute proceedings to obtain an order compelling compliance with the 24
administrative regulations promulgated by the cabinet in accordance with 25
KRS Chapter 13A[, standards, and requirements of the cabinet]; 26
(b) Institute injunctive proceedings in Circuit Court to terminate the operation of 27
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the center; 1
(c) Institute action to discontinue payment of child-care subsidies; or 2
(d) Suspend or revoke the license or impose other penalties provided by law. 3
(10) Upon request of any person, the cabinet shall provide information regarding the 4
denial, revocation, suspension, or violation of any type of child -care center license 5
of the operator. Identifying information regarding children and their fa milies shall 6
remain confidential. 7
(11) The cabinet shall provide, upon request, public information regarding the 8
inspections of and the plans of correction for the child -care center within the past 9
year. All information distributed by the cabinet under this subsection shall include a 10
statement indicating that the reports as provided under this subsection from the past 11
five (5) years are available from the child -care center upon the parent's, custodian's, 12
guardian's, or other interested person's request. 13
(12) All fees collected under the provisions of KRS 199.892 to 199.896 for license and 14
certification applications shall be paid into the State Treasury and credited to a 15
special fund for the purpose of administering KRS 199.892 to 199.896 including the 16
payment of expenses of and to the participants in child -care workshops. The funds 17
collected are hereby appropriated for the use of the cabinet. The balance of the 18
special fund shall lapse to the general fund at the end of each biennium. 19
(13) Any advertisement fo r child -care services shall include the address of where the 20
service is being provided. 21
(14) All inspections of licensed and unlicensed child -care centers by the Cabinet for 22
Health and Family Services shall be unannounced. 23
(15) All employees and owners of a child -care center who provide care to children shall 24
demonstrate within the first three (3) months of employment completion of at least 25
a total of six (6) hours of orientation in the following areas: 26
(a) Basic health, safety, and sanitation; 27
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(b) Recognizing and reporting child abuse; and 1
(c) Developmentally appropriate child-care practice. 2
(16) All employees and owners of a child -care center who provide care to children shall 3
annually demonstrate to the department completion of at least six (6) hours of 4
training in child development. These hours shall include but are not limited to one 5
and one-half (1.5) hours one (1) time every five (5) years of continuing education in 6
the recognition and prevention of pediatric abusive head trauma, as defined in KRS 7
620.020. Training in recognizing pediatric abusive head trauma may be designed in 8
collaboration with organizations and agencies that specialize in the prevention and 9
recognition of pediatric head trauma approved by the secretary of the Cabinet for 10
Health and Family Services. The one and one -half (1.5) hours required under this 11
section shall be include d in the current number of required continuing education 12
hours. 13
(17) The Cabinet for Health and Family Services shall make available either through the 14
development or approval of a model training curriculum and training materials, 15
including video instructi onal materials, to cover the areas specified in subsection 16
(15) of this section. The cabinet shall develop or approve the model training 17
curriculum and training materials to cover the areas specified in subsection (15) of 18
this section. 19
(18) Child-care cent ers licensed pursuant to this section and family child -care homes 20
certified pursuant to KRS 199.8982 shall not use corporal physical discipline, 21
including the use of spanking, shaking, or paddling, as a means of punishment, 22
discipline, behavior modificatio n, or for any other reason. For the purposes of this 23
section, "corporal physical discipline" means the deliberate infliction of physical 24
pain and does not include spontaneous physical contact that is intended to protect a 25
child from immediate danger. 26
(19) Child-care centers that provide instructional and educational programs for 27
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preschool-aged children that operate for a maximum of twenty (20) hours per week 1
and that a child attends for no more than fifteen (15) hours per week shall: 2
(a) Notify the cabinet in writing that the center is operating; 3
(b) Meet all child -care center licensure requirements and administrative 4
regulations related to employee background checks; 5
(c) Meet all child -care center licensure requirements and administrative 6
regulations related to tuberculosis screenings; and 7
(d) Be exempt from all other child -care center licensure requirements and 8
administrative regulations. 9
(20) Child-care centers that provide instructional and educational programs for 10
preschool-aged children that operate for a maximum of twenty (20) hours per week 11
and that a child attends for no more than ten (10) hours per week shall be exempt 12
from all child-care licensure requirements and administrative regulations. 13
(21) Instructional programs for school -age children that o ffer, whether free or for a fee, 14
recreational, educational, sports training, or vacation programs that include but are 15
not limited to martial arts and dance programs to children under eighteen (18) years 16
of age, that a child attends outside the presence of his or her parent or legal 17
guardian, shall be exempt from all child -care licensure administrative regulations if 18
the following criteria are met: 19
(a) The program provides primary instruction in a skill, talent, ability, expertise, 20
or proficiency; 21
(b) The p rogram operates outside the time period when school is in session, 22
including before or after school hours, holidays, school breaks, teaching 23
planning days, or summer vacation; 24
(c) The program does not advertise or otherwise represent that the program is a 25
licensed child-care center or that the program offers child-care services; 26
(d) The program informs the parent or guardian: 27
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1. That the program is not licensed by the cabinet; and 1
2. About the physical risks a child may face while participating in the 2
program; and 3
(e) The program conducts the following background checks for all program 4
employees and volunteers who work with children: 5
1. Check of the child abuse and neglect records maintained by the cabinet; 6
and 7
2. In-state criminal background information che ck from the Justice and 8
Public Safety Cabinet or Administrative Office of the Courts. 9
(22) Directors and employees of child -care centers in a position that involves 10
supervisory or disciplinary power over a minor, or direct contact with a minor, shall 11
submit to a criminal record check in accordance with KRS 199.8965. 12
(23) A director or employee of a child -care center may be employed on a probationary 13
status pending receipt of the criminal background check. Application for the 14
criminal record of a probationar y employee shall be made no later than the date 15
probationary employment begins. 16
(24) In determining whether to issue a plan of correction, directed plan of correction, 17
or suspension or revocation of a child -care center license in response to any 18
alleged vi olation of an administrative regulation by a child -care center, in 19
addition to any other required considerations under this section the cabinet shall 20
consider the following factors: 21
(a) If the child -care c enter self -reported the incident in question and if the 22
child-care center had a history of self-reporting incidents; 23
(b) If the incident was the result of the child -care center failing in any way 24
related to policy, training, enforcement, or supervision; 25
(c) If the incident was the result of an independent act of failure to follow 26
administrative regulations or center policy on the part of a child -care center 27
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applicant for licensure, a child-care center director, or any staff person; 1
(d) Actions taken by the child-care center in addition to those required by 2
administrative regulation, including but not limited to installing cameras, 3
providing extra training for staff, implementing facility improvements, 4
enacting safety policies stricter than those required by administrative 5
regulation, and improving staff-to-child ratios; and 6
(e) If the child -care center appropriately responded to the violation by holding 7
the party responsible accountable for the violation and correcting or 8
initiating correction of any condition that contributed to the violation. 9
(25) A violation of a directed plan of correction shall not result in a suspension or 10
revocation of a child -care center's license unless the violation is solely 11
determined by the cabinet to be serious enough to justify the suspension or 12
revocation. 13
(26) A child-care center shall be permitted to provide requested documentation to the 14
cabinet up to five (5) business days following a request when any routine review 15
or audit related to an alleged violation of administrative regulation occurs. 16
(27) (a) A child-care center that has been granted a preliminary license with a six 17
(6) month probationary period by the cabinet shall receive a minimum of 18
two (2) weekly support contacts a week by the cabinet or the cabinet's 19
designee, with at least one (1) contact being in person for each week of a 20
six (6) month probationary period in order to assist the center owner, 21
supervisors, and staff in understanding, implementing, and practicing 22
administrative regulations properly. 23
(b) During the six (6) month probationary period, the cabinet shall not issue a 24
violation against a child -care center unless the cabinet determines that a 25
violation was knowingly committed after the cabinet had provided clear 26
instructions, or the violation created an immediate threat to the health, 27
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safety, or welfare of the children in the child-care center. 1
(28) The cabinet may allow but shall not require the inspector general, the inspector 2
general's designee, or other cabinet representative to: 3
(a) Take emergency action in accordance with subsection (4) of this section by 4
issuing an emergency order that suspends a child-care center's license; 5
(b) Revoke a child -care center's license if an emergency order has been issued 6
and the: 7
1. Child-care center has not requested a hearing within the timeframes 8
required in subsection (7) of this section; or 9
2. Condition that resulted in the emergency order is not corrected within 10
thirty (30) calendar days of service of an emergency order; 11
(c) Revoke a child-care center's license if: 12
1. A representative of the child -care center interferes with a cabinet or 13
other agency representative's ability to perform an official duty; 14
2. A cabinet representative, a representative from another agency with 15
regulatory authority, or a parent is deni ed access during operating 16
hours to a child, the child-care center, or child-care center staff; 17
3. The child -care center is discontinued or disqualified from 18
participation in Kentucky's child -care subsidy program or another 19
governmental assistance program as a result of fraud, abuse, or 20
criminal conviction related to the center; 21
4. The child -care center fails to meet a condition of, or violates a 22
requirement of, a directed plan of correction; 23
5. The child -care center applicant or licensee knowingly misrepre sents 24
or submits false information on a form required by the cabinet; 25
6. The child-care center is the subject of more than two (2) directed plans 26
of correction during a three (3) year period; or 27
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7. The child -care center has failed to comply with required p ayment 1
provisions; and 2
(d) Suspend a child-care center's license if: 3
1. A violation of an administrative regulation is found to pose an 4
immediate threat to the health, safety, and welfare of the children in 5
care, as permitted in subsection (4) of this section; or 6
2. The child -care center fails to comply with the approved plan of 7
correction. 8
(29) The cabinet shall promulgate administrative regulations in accordance with KRS 9
Chapter 13A to identify emergency care providers who provide essential child -care 10
services during an identified state of emergency.[ 11
(25) Notwithstanding any state law, administrative regulation, executive order, or 12
executive directive to the contrary, during the 2020 or 2021 state of emergency 13
declared by the Governor in response to COVID -19, including but not limited to 14
any mutated strain of the COVID -19 virus, the cabinet shall not establish any 15
restrictions on capacity for class or group size or the ability to combine classes and 16
groups for capacity limits in the morning or afternoon that is below the number that 17
was in effect on February 1, 2020.] 18
Section 19. The provisions of Section 18 of this Act shall apply: 19
(1) To any pending and not yet final action related to licensed child -care centers 20
that is under consideration by the Cabinet for Health and Family Services on the effective 21
date of this Act; and 22
(2) To any action related to licensed child -care centers that occurs on or after the 23
effective date of this Act. 24
Section 20. Whereas it is essential that the General A ssembly promptly provide 25
access to adequate and quality child care in the Commonwealth in order to provide for 26
the health and safety of citizens, an emergency is declared to exist, and this Act takes 27
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effect upon its passage and approval by the Governor or upon its otherwise becoming a 1
law. 2