WEST virginia legislature

2025 regular session

Committee Substitute

for

Senate Bill 702

By Senator Chapman

[Reported March 19, 2025, from the Committee on Health and Human Resources]

A BILL to amend the Code of West Virginia, 1931, as amended, by adding a new section, designated §49-2-120a, relating to payment rates for child care services; requiring the Bureau for Family Assistance to annually adjust the base rate for each type of care based upon the Consumer Price Index; requiring the Bureau for Family Assistance to study the implementation of performance-based contracting’s outcome on quality; and requiring reporting.

Be it enacted by the Legislature of West Virginia:

ARTICLE 2. STATE RESPONSIBILITIES FOR CHILDREN.

§49-2-120a. Payment Rates for childcare services; study of performance-based contracting; reporting.

(a) The federal Child Care & Development Fund which provides the primary funding for the state’s childcare program, requires the state to develop a plan for the operation of services.

(b) The state plan shall address how federal funds will be utilized to address the federal goals of increasing the affordability, availability, and quality of childcare programs.  

(c) Rates for payment of childcare services include a base rate for each type of care as well as incentive rates.  

(d) Beginning September 1, 2025, and September 1 annually thereafter, the Bureau of Family Assistance shall increase the base rate for each type of care based upon the Consumer Price Index for all urban consumers.

(e) Beginning August 1, 2025, the Bureau for Family Assistance shall study the implementation of a performance-based contracting model to enhance the quality of childcare delivered as required by the state plan. The study shall include, but not be limited to, a consideration of how incentive payments to providers may work to improve quality outcomes such as kindergarten readiness in children attending childcare centers.  

(f) The Bureau for Family Assistance shall prepare a report of its findings to be made to the Legislative Oversight Commission on Health and Human Resources Accountability on or before December 15, 2025.

NOTE: The purpose of this bill is to require the Bureau for Family Assistance to increase the base rate paid to childcare providers and to study a performance-based model of incentive payments to increase quality and to provide reporting.

Strike-throughs indicate language that would be stricken from a heading or the present law and underscoring indicates new language that would be added.