An Act to establish the manner of determining payments for the child care assistance program.

Be it enacted by the Legislature of the State of South Dakota:

Section 1. That § 28-1-60 be AMENDED:

28-1-60. The Department of Social Services shall establish a child care assistance program of child care services to assist families with child care services and to aid in the improvement of quality and services for the care of children in day care. The department may assist in the improvement, availability, and quality of day care for children by providing training, education, and advocacy for child care.

Section 2. That § 28-1-61 be AMENDED:

28-1-61. The secretary of social services may shall adopt reasonable and necessary rules pursuant to chapter 1-26 for the administration of the child care services assistance program in the following areas:

(1) Eligibility determination, criteria, and application procedure;

(2) The amount, scope, and duration of child care services and payments;

(3) Fees;

(4) Licensing and registration;

(5) Methods of administration, record keeping, and audit;

(6) Compliance monitoring;

(7) Complaint investigation;

(8) Reporting requirements;

(9) Eligibility criteria and procedures for grants, contracts, and awards to providers of child care services under § 28-1-60;

(10) Training, community and provider education, and child advocacy; and

(11) Such Any other standards and requirements as may be necessary to ensure the efficient operation and administration of the program or as required to qualify for federal funding.

Section 3. That a NEW SECTION be added to chapter 28-1:

In determining payments for the child care assistance program, the Department of Social Services shall use at least the ninetieth percentile amount of the market rate for the applicable area, identified in the most recent market rate survey, as required by 45 C.F.R. § 98.45 (January 1, 2025), for the following programs and age groups:

(1) Before and after school care programs;

(2) Child care programs:

(a) Under age three;

(b) Between ages three and five; and

(c) Ages six and older; and

(3) Family day care:

(a) Under age three;

(b) Between ages three and five; and

(c) Ages six and older.