Amends TCA Title 4; Title 5; Title 6; Title 7; Title 68 and Title 71.

Present law requires the department of human services ("department") to perform a market rate study of day care rates annually. This bill changes the present law by requiring, instead, the department to perform a cost estimation model of day care rates annually.<br /> <br /> As used in this bill, a "cost estimation model" (i) means a method of determining costs of day care that incorporates both data and a set of assumptions to estimate expected costs that would be incurred by child care providers under different cost scenarios; (ii) accounts for factors that affect the cost of service delivery; and (iii) considers variations in cost.<br /> <br /> Present law requires, in compliance with federal law and regulations and from the market rate study or utilizing an alternative methodology, the department to annually determine an amount to be paid as reimbursement on behalf of low-income families, for the provision of child or infant care by a day care center, family day care home, or group day care home. This bill still requires the department to annually determine an amount to be paid as reimbursement on behalf of low-income families, for the provision of child or infant care by a day care center, family day care home, or group day care home, but this bill requires, instead, the department to make those determinations in compliance with federal law and from the cost estimation model.<br /> <br /> Present law requires the commissioner of human resources ("commissioner") to report to the governor and the general assembly, no later than October 1 of each year, the results of the market rate study; the results of an alternative methodology utilized, if applicable; and the annual rate that has been requested by the department in its budget. This bill requires, instead, the commissioner to report the results of the cost estimation model and the annual rate that has been requested by the department in its budget.<br />