KRS 199.8998: Definitions for section -- Kentucky Kindergarten Readiness Performance-

Based Child Care Incentive Pilot Program -- Reporting required.

(1) As used in this section:

(a) "Cabinet" means the Cabinet for Health and Family Services;

(b) "Type I child-care center" means a child-care center licensed by the cabinet to

regularly provide child care services for:

1. Four (4) or more children in a nonresidential setting; or

2. Thirteen (13) or more children in a designated space separate from the

primary residence of a licensee;

(c) "Type II child -care center" means a child -care center that is the primary

residence of the licensee in which child care is regularly provided for at least

seven (7) but not more than twelve (12) children, including children relat ed to

the licensee; and

(d) "University" means the University of Kentucky.

(2) By August 1, 2026, the university shall establish and operate the Kentucky

Kindergarten Readiness Performance -Based Child Care Incentive Pilot Program,

which shall operate from August 1, 2027, until July 31, 2029.

(3) The pilot program shall:

(a) Determine how to provide performance -based incentives to diverse types of

early childhood education providers, child -care providers, and low -income

parents in order to increase the number of children in the Commonwealth who

are assessed as kindergarten ready;

(b) Determine how to best assess applicants and distribute moneys;

(c) Develop a written plan and implement assessment processes to determine

kindergarten readiness for children in the Commonwealth. The university

shall convene a working group to assist in the development of the written plan

and assessment processes;

(d) Ensure that participants in the pilot program represent geographically and

socioeconomically diverse areas of the Commonwealth;

(e) Evaluate the impact of performance -based incentives i mplemented through

the pilot program using a rigorous design framework that supports causal

inferences;

(f) Design, identify, and make available resources for parents to assist them in

preparing children for kindergarten readiness;

(g) Determine how to awa rd funds, including but not limited to direct payments

or refundable tax credits, to licensed Type I and Type II child -care centers;

cabinet-regulated early childhood education providers, certified child -care

homes, and registered providers; and single or married parents who qualify for

the child-care subsidy administered by the cabinet pursuant to KRS 199.8994.

To be eligible for funds:

1. A provider or a home shall maintain services for infants and toddlers at

a ratio established by the Division of Child Care within the cabinet;

2. A provider or a home shall maintain and submit accurate and detailed

records of care for any child; and

3. A parent shall submit records to verify he or she meets the requirements

to receive child care subsidy funds under KRS 199.8994;

(h) Establish a standard for awarding a two thousand dollar ($2,000) one (1) time

award, including but not limited to direct payments or refundable tax credits,

per child once a child is designated by the assessment processes as

kindergarten ready as follows:

1. A full award to a licensed Type I or Type II child -care center or cabinet-

regulated early childhood education provider, certified child -care home,

or registered provider who meets the requirements of paragraph (g) of

this subsection if the kindergarten-ready child received full -time

services from the center or provider the two (2) years prior to the

assessment;

2. A full award to a single or married parent who meets the requirements

of paragraph (g) of this subsection if the kindergarten -ready child was

cared for in the home the two (2) years prior to the assessment,

regardless of the utilization of a babysitter;

3. A full award to a licensed Type I or Type II child -care center or cabinet-

regulated early childhood education provider, certifie d child-care home,

or registered provider who meets the requirements of paragraph (g) of

this subsection if the child cannot be properly assessed as a

kindergarten-ready child because of a formal diagnosis of a disability

and the child received full -time services from the provider the two (2)

years prior to the assessment;

4. A half award to a licensed Type I or Type II child-care center or cabinet-

regulated early childhood education provider, certified child -care home,

or registered provider who meets the requirements of paragraph (g) of

this subsection if the kindergarten-ready child received half-day services

from the center and attended public preschool the two (2) years prior to

the assessment; and

5. Split awards may be granted to individuals or provid ers based on who

provided full -time services or cared for the child in the two (2) years

prior to the assessment; and

(i) Ensure compliance with federal regulations, including but not limited to the

Quality Rating and Improvement Systems as established und er 45 C.F.R. pt.

98.

(4) By June 1, 2027, and by June 1 annually thereafter for the duration of the pilot

program, the university shall annually report on the establishment and operations of

the pilot program to the Interim Joint Committee on Families and Children.

(5) By January 1, 2030, the university shall submit a report to the cabinet and the

Legislative Research Commission for referral to the Interim Joint Committees on

Families and Children, Education, and Appropriations and Revenue that:

(a) Details the findings of the pilot program;

(b) If the pilot program proves successful:

1. Identifies specific mechanisms for change, including but not limited to

educational curricula and family practices to best prepare preschool -age

children for kindergarten readiness;

2. Includes recommendations based on the pilot program's results for

optimizing performance -based child care incentives in the

Commonwealth; and

3. Includes recommendations and potential obstacles for implementing the

program at scale;

(c) Details the assessment processes used to determine kindergarten readiness;

(d) Identifies the rates of kindergarten readiness at the end of the pilot program;

and

(e) Includes all data generated from the pilot program, which shall be made

available for public review and use in accordance with applicable federal,

state, and institutional review board policies.