SB 6038 — Reducing the costs associated with providing child care.

ENGROSSEDS-3830.1 SUBSTITUTE SENATE BILL 6038 State of Washington 68th Legislature 2024 Regular Session By Senate Ways & Means (originally sponsored by Senators C.

Wilson, Lovelett, Keiser, Kuderer, Liias, Nguyen, Nobles, Randall, Salomon, Valdez, and Wellman)Wellman READPrefiled FIRST01/05/24. TIME 02/05/24.

Read first time 01/08/24.

Referred to Committee on Ways & Means.

amending RCW 82.04.2905,43.216.300; 43.216.300, and 43.216.305;

adding a new section to chapter 82.04 RCW;

and providing an effective date.date;

and providing an expiration date.

(2) The legislature categorizes this tax preference as one intended to provide tax relief for certain businesses or individuals,individuals as indicated in RCW 82.32.808(2)(e).

1 ESSBSB 6038 (4) If a review finds a reduction in the cost of providing child care and education, then the legislature intends to extend the expiration date of this tax preference.

NEW SECTION.

RCWA 82.04.2905new andsection 1998is cadded 312to schapter 782.04 areRCW each amended to read as follows:

((Upon)) (1) ExceptThis aschapter provideddoes innot subsectionapply (2)to ofamounts thisreceived section,by upona everynursery personschool, engagingpreschool, withinor thischild statecare inprovider for the business of providing child care foror periodssupervision of lesschildren thanunder twenty-four13 hours((;years of age.

as(2) toThis suchsection persons)),expires theJuly amount1, of2034. tax with respect to such business ((shall be)) is equal to the gross proceeds derived from such sales multiplied by the rate of 0.484 percent.

(2) Until January 1, 2035, this chapter does not apply to amounts received by a child care provider for the care and supervision for periods of less than 24 hours of children:

(a) Under 13 years of age;

or (b) Under 19 years of age who have a verified special need or are under court supervision as determined by the department of children, youth, and families under chapter 43.216 RCW.

(3) The exemption under subsection (2) of this section applies only to persons primarily engaged in the business of providing child care.

(3) The secretary shall establish the fees charged by rule.)) Sec.NEW SECTION.

4.

RCW 43.216.305 and 2021 c 304 s 14 are each amended to read as follows:

p.

2 ESSB 6038 (1) Each agency shall make application for a license or the continuation of a full license to the department using a method prescribed by the department.

Upon receipt of such application, the department shall either grant or deny a license or continuation of a full license within ninety days.

A license or continuation shall be granted if the agency meets the minimum requirements set forth in this chapter and the departmental requirements consistent with this chapter, except that an initial license may be issued as provided in RCW 43.216.315.

The department shall consider whether an agency is in good standing, as defined in subsection (4)(b) of this section, before granting a continuation of a full license.

Full licenses provided for in this chapter shall continue to remain valid so long as the licensee meets the requirements for a nonexpiring license in subsection (2) of this section and may be transferred to a new licensee in the event of a transfer of ownership of a child care operation.

The licensee, however, shall advise the secretary of any material change in circumstances which might constitute grounds for reclassification of license as to category.

The license issued under this chapter applies only to the licensee and the location stated in the application.

For licensed family day care homes having an acceptable history of child care, the license may remain in effect for two weeks after a move.

(2) In order to qualify for a nonexpiring full license, a licensee must meet the following requirements on an annual basis as established from the date of initial licensure:

(a) ((Submit the annual licensing fee;

(b))) Submit a declaration to the department indicating the licensee's intent to continue operating a licensed child care program, or the intent to cease operation on a date certain;

(((c))) (b) Submit a declaration of compliance with all licensing rules;

and (((d))) (c) For all current employees of the agency and as defined by department rule, submit background check applications into the department's electronic workforce registry on the schedule established by the department.

(3) If a licensee fails to meet the requirements in subsection (2) of this section for continuation of a full license the license expires and the licensee must submit a new application for licensure under this chapter.

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3 ESSB 6038 (4)(a) Nothing about the nonexpiring license process may interfere with the department's established monitoring practice.

(b) For the purpose of this section, an agency is considered to be in good standing if in the intervening period between monitoring visits the agency does not have any of the following:

(i) Valid complaints;