Compare versions
--- version:A-Engrossed+++ version:(document, no version)@@ -14,60 +14,39 @@141516-83rd OREGON LEGISLATIVE ASSEMBLY--2026 Regular Session-A-Engrossed-Senate Bill 1535-Ordered by the Senate February 16-Including Senate Amendments dated February 16-Sponsored by Senator ANDERSON; Senator SMITH DB (Presession filed.)-SUMMARY-The following summary is not prepared by the sponsors of the measure and is not a part of the body thereof subject-to consideration by the Legislative Assembly. It is an editor’s brief statement of the essential features of the-measure. The statement includes a measure digest written in compliance with applicable readability standards.-Digest: The Act allows ELC to change some standards for who can use a day care subsidy-program. The Act tells DELC to create a work group to study and report to the Senate and-the House on liability insurance issues for child care providers and on how to increase access-and reduce costs for those providers. The Act sunsets the work group in 2029. The Act takes-effect 91 days after session ends. (Flesch Readability Score: 67.7).-[Digest: The Act tells DELC to study child care and submit a report to the legislature. (Flesch-Readability Score: 73.1). ]-[Requires the Department of Early Learning and Care to study child care. Directs the department-to submit findings to the interim committees of the Legislative Assembly related to child care no later-than September 15, 2027. ]-[Sunsets on January 2, 2028. ]-Allows the Early Learning Council to modify the priority given to families receiving-temporary assistance for needy families for participation in the Employment Related Day-Care subsidy program.-Directs the Department of Early Learning and Care to convene a work group to study-the cost and availability of liability insurance and other liability issues for child care pro--viders. Identifies work group participants. Directs the work group to report to the Legisla--tive Assembly on options to increase child care provider access to liability insurance, to-reduce the financial burden of liability insurance on child care providers and to use other-strategies to address liability issues for child care providers. Requires the work group to-submit the report to the Legislative Assembly by November 1, 2027. Sunsets the work group-on January 2, 2029.-Takes effect on the 91st day following adjournment sine die.-A BILL FOR AN ACT-Relating to child care; creating new provisions; amending ORS 329A.500; and prescribing an effec--tive date.-Be It Enacted by the People of the State of Oregon:-SECTION 1.+17+18+19+20+21+SB 1535-2+(LC 293)+2/9/26 (VSR/DJ/ps)+Requested by Senator ANDERSON+PROPOSED AMENDMENTS TO+SENATE BILL 1535+In line 2 of the printed bill, after “care” insert “; creating new provisions;+amending ORS 329A.500; and prescribing an effective date”.+Delete lines 4 through 8 and insert:+“SECTION 1.ORS 329A.500 is amended to read:-329A.500. (1) As used in this section, “family” means any individual who is responsible for the-care, control and supervision of a child.-(2) The Early Learning Council shall adopt rules for the operation of the Employment Related-Day Care subsidy program and for other subsidy programs administered by the Department of Early-Learning and Care.-(3) The rules adopted under this section must support equitable access to a supply of diverse-subsidized care facilities that meet the needs of families, as those needs are defined by the council-by rule, including:-(a) Cultural diversity;-(b) Linguistic diversity;-(c) Racial and ethnic diversity; and-NOTE: Matter in boldfaced type in an amended section is new; matter [ italic and bracketed] is existing law to be omitted.-New sections are in boldfaced type.-LC 293-A-Eng. SB 1535+“329A.500. (1) As used in this section, ‘family’ means any individual who+is responsible for the care, control and supervision of a child.+“(2) The Early Learning Council shall adopt rules for the operation of the+Employment Related Day Care subsidy program and for other subsidy pro-+grams administered by the Department of Early Learning and Care.+“(3) The rules adopted under this section must support equitable access+to a supply of diverse subsidized care facilities that meet the needs of fami-+lies, as those needs are defined by the council by rule, including:+“(a) Cultural diversity;+“(b) Linguistic diversity;+“(c) Racial and ethnic diversity; and+“(d) Diversity of subsidized care facility types.+“(4) The council shall adopt rules establishing that:+“(a) Each of the following subparagraphs constitutes an independent basis+of eligibility for a child to participate in the Employment Related Day Care+subsidy program:+“(A) The household income of a child’s family;123@@ -98,68 +77,38 @@282930-31-32-33-34-35-36-37-38-39-40-41-42-43-44-45-(d) Diversity of subsidized care facility types.-(4) The council shall adopt rules establishing that:-(a) Each of the following subparagraphs constitutes an independent basis of eligibility for a child-to participate in the Employment Related Day Care subsidy program:-(A) The household income of a child’s family;-(B) The child’s family’s employment, search for employment or enrollment in an education or-training program;-(C) The child’s or child’s family’s use of, or risk of needing to use, protective services, including,-but not limited to, child welfare services, child abuse prevention services, family reunification ser--vices, foster care services or subsidized guardianship services;-(D) The child’s or child’s family’s use of, or risk of needing to use, homelessness services, teen-parent services or domestic violence services; or-(E) Any other criteria established by the council.-(b) A child must be able to receive care that:-(A) Meets the child’s developmental, disability and neurodiversity needs; and-(B) Enables the child’s family to complete activities that relate to family well-being, which may-include the family’s work hours, education hours, commute time, study time and other activities that-support family well-being.-(c) Payment to subsidized care facilities must be:-(A) Based on enrollment instead of attendance.-(B) Made by the department each month by a date specified by the Early Learning Council by-rule or, if paid on a date later than the date specified by rule, paid in an amount that includes an-additional nine percent of the amount due unless the additional amount is not required to be paid-under exceptional circumstances, as identified by rule.-(d) A child’s family may qualify for an incentive if the family voluntarily chooses a subsidized-care facility that participates in the quality recognition and improvement system established under-ORS 329A.261. A fair representation of the recipients who qualify for incentives must be families-with children who are from underserved racial, ethnic or minority populations. In addition, subsi--dized care facilities that participate in the quality recognition and improvement system may receive-financial incentives under the subsidy programs in accordance with criteria established by rule.-(e) A child care facility is not eligible to be a subsidized care facility and to receive a re--imbursement under the subsidy program unless each subject individual described in ORS 329A.030-(11)(d) who operates, resides in or may have unsupervised contact with children at the subsidized-care facility that provides or will provide subsidized care to the person’s child is enrolled in the-Central Background Registry under ORS 329A.030.-(f) A subsidized care facility may be eligible to receive a higher rate of reimbursement or other-financial incentives for:-(A) Participating in quality improvement measures;-(B) Providing culturally or linguistically specific or appropriate care;-(C) Providing evening, overnight or weekend care;-(D) Providing care to children with a diagnosed disability;-(E) Providing infant or toddler care;-(F) Providing care to a population that has been identified as historically having an inadequate-child care facility supply; or-(G) Providing any other specialized care that justifies a higher rate of reimbursement.-[2]-A-Eng. SB 1535+“(B) The child’s family’s employment, search for employment or enroll-+ment in an education or training program;+“(C) The child’s or child’s family’s use of, or risk of needing to use, pro-+tective services, including, but not limited to, child welfare services, child+abuse prevention services, family reunification services, foster care services+or subsidized guardianship services;+“(D) The child’s or child’s family’s use of, or risk of needing to use,+homelessness services, teen parent services or domestic violence services; or+“(E) Any other criteria established by the council.+“(b) A child must be able to receive care that:+“(A) Meets the child’s developmental, disability and neurodiversity needs;+and+“(B) Enables the child’s family to complete activities that relate to family+well-being, which may include the family’s work hours, education hours,+commute time, study time and other activities that support family well-being.+“(c) Payment to subsidized care facilities must be:+“(A) Based on enrollment instead of attendance.+“(B) Made by the department each month by a date specified by the Early+Learning Council by rule or, if paid on a date later than the date specified+by rule, paid in an amount that includes an additional nine percent of the+amount due unless the additional amount is not required to be paid under+exceptional circumstances, as identified by rule.+“(d) A child’s family may qualify for an incentive if the family voluntarily+chooses a subsidized care facility that participates in the quality recognition+and improvement system established under ORS 329A.261. A fair represen-+tation of the recipients who qualify for incentives must be families with+children who are from underserved racial, ethnic or minority populations. In+addition, subsidized care facilities that participate in the quality recognition+and improvement system may receive financial incentives under the subsidy+programs in accordance with criteria established by rule.+ SB 1535-2 2/9/26+ Proposed Amendments to SB 1535 Page 2123@@ -190,69 +139,38 @@282930-31-32-33-34-35-36-37-38-39-40-41-42-43-44-45-(5) Taking into account the availability of funds, the rules adopted under this section:-(a) Must establish a sliding scale for copayment, with the requirement that a copayment may-not exceed seven percent of the household income of the child’s family.-(b) Must provide that eligibility to participate in the Employment Related Day Care subsidy-program:-(A) May not be based on the citizenship or legal status of a child or a child’s family; and-(B) Shall, for a child who met the initial eligibility requirements prescribed under subsection (4)-of this section, continue for a minimum of 12 months from the date of initial eligibility unless the-child’s family leaves this state or requests a termination of benefits or for any other reason identi--fied by the council. Rules adopted under this subparagraph [ shall] may give priority to families re--ceiving temporary assistance under the temporary assistance for needy families program described-in ORS 412.006.-(c) May provide that a determination of eligibility to participate in the Employment Related Day-Care subsidy program consider the availability of family to attend to the child, regardless of the-family’s physical presence.-(6) In developing rules under this section, the council shall consider policies for increasing the-stability and continuity of a child’s access to a family’s preferred child care facility.-(7) Rules adopted by the council under this section establish minimum requirements pertaining-to the Employment Related Day Care subsidy program and may not be construed to preempt, limit-or otherwise diminish the applicability of any policy, standard or collective bargaining agreement-that provides for an increased subsidy or a subsidized care facility reimbursement amount under-state or federal law.-(8)(a) The council shall work to meet federal recommendations for income eligibility and market-access in regard to the Employment Related Day Care subsidy program administered by the council.-(b) Notwithstanding any provision of this section or any rule adopted by the council pursuant-to this section, the laws and regulations applicable to any federal funds shall govern when any as--pect of child care is funded by federal funds.-SECTION 2.-(1) The Department of Early Learning and Care shall convene a work group-to study the cost and availability of liability insurance and other liability issues for child care-providers certified under ORS 329A.280, registered under ORS 329A.330 or recorded under-ORS 329A.255. The work group may also study impacts to programs or entities that would-typically be exempt from Department of Early Learning and Care regulation. The objective-of the work group is to develop strategies for lowering insurance costs for these providers-in this state.-(2) The work group shall consist of members selected by the Department of Early-Learning and Care, in consultation with the Department of Consumer and Business Services.-(3) When making selections for the work group under subsection (2) of this section, the-Department of Early Learning and Care shall, to the extent practicable, select the following-as members:-(a) Representatives from certified, registered, recorded and exempt child care providers-located in different regions of this state.-(b) Representatives from the insurance industry with experience in liability insurance-offered to child care facilities certified under ORS 329A.280, registered under ORS 329A.330-or recorded under ORS 329A.255, or to other types of exempt child care that are not subject-to Department of Early Learning and Care regulation.-[3]-A-Eng. SB 1535+“(e) A child care facility is not eligible to be a subsidized care facility+and to receive a reimbursement under the subsidy program unless each sub-+ject individual described in ORS 329A.030 (11)(d) who operates, resides in or+may have unsupervised contact with children at the subsidized care facility+that provides or will provide subsidized care to the person’s child is enrolled+in the Central Background Registry under ORS 329A.030.+“(f) A subsidized care facility may be eligible to receive a higher rate of+reimbursement or other financial incentives for:+“(A) Participating in quality improvement measures;+“(B) Providing culturally or linguistically specific or appropriate care;+“(C) Providing evening, overnight or weekend care;+“(D) Providing care to children with a diagnosed disability;+“(E) Providing infant or toddler care;+“(F) Providing care to a population that has been identified as histor-+ically having an inadequate child care facility supply; or+“(G) Providing any other specialized care that justifies a higher rate of+reimbursement.+“(5) Taking into account the availability of funds, the rules adopted under+this section:+“(a) Must establish a sliding scale for copayment, with the requirement+that a copayment may not exceed seven percent of the household income of+the child’s family.+“(b) Must provide that eligibility to participate in the Employment Re-+lated Day Care subsidy program:+“(A) May not be based on the citizenship or legal status of a child or a+child’s family; and+“(B) Shall, for a child who met the initial eligibility requirements pre-+scribed under subsection (4) of this section, continue for a minimum of 12+months from the date of initial eligibility unless the child’s family leaves this+state or requests a termination of benefits or for any other reason identified+ SB 1535-2 2/9/26+ Proposed Amendments to SB 1535 Page 3123@@ -283,42 +201,156 @@282930-31-32-33-34-(c) Representatives from the Department of Consumer and Business Services with ex--pertise in liability insurance regulation.-(d) Representatives from the Department of Early Learning and Care with expertise in-licensing and insurance requirements for providers of early learning services and care.-(e) Representatives from the Oregon Department of Administrative Services with exper--tise in risk management, including expertise in establishing contractor and grantee insur--ance requirements.-(f) Any other representatives that the Department of Early Learning and Care deter--mines are necessary to fulfill the purposes of this section.-(4) The Department of Early Learning and Care may select up to five additional members-provided that such members have experience relevant to the objective of the work group as-described in subsection (1) of this section.-(5) Members of the work group must be individuals who reflect the geographic, racial,-ethnic and gender diversity of this state.-(6) The work group shall review information and research from within Oregon and na--tionally concerning the impact of liability insurance and regulations pertaining to insurance-requirements applicable to providers of child care and child care facilities as defined in ORS-329A.250, including certain types of care that are exempt from Department of Early Learning-and Care regulation.-(7) The work group shall prepare a report that summarizes the findings of the review-required under subsection (6) of this section. The report must:-(a) Include policy options to increase child care provider access to liability insurance and-to reduce the financial burden of liability insurance on providers of child care; and-(b) Explore the feasibility of using liability immunity, liability damage caps or other-strategies to address liability issues that affect the availability and affordability of liability-insurance for providers of early learning services and care.-(8) Not later than November 1, 2027, the work group shall submit the report required by-this section, in the manner provided under ORS 192.245, to the interim committees of the-Legislative Assembly related to early child care. The work group may include in the report-submitted under this subsection recommendations for legislation.-SECTION 3.-Section 2 of this 2026 Act is repealed on January 2, 2029.-SECTION 4. This 2026 Act takes effect on the 91st day after the date on which the 2026-regular session of the Eighty-third Legislative Assembly adjourns sine die.-[4]+by the council. Rules adopted under this subparagraph [ shall] may give pri-+ority to families receiving temporary assistance under the temporary assist-+ance for needy families program described in ORS 412.006.+“(c) May provide that a determination of eligibility to participate in the+Employment Related Day Care subsidy program consider the availability of+family to attend to the child, regardless of the family’s physical presence.+“(6) In developing rules under this section, the council shall consider+policies for increasing the stability and continuity of a child’s access to a+family’s preferred child care facility.+“(7) Rules adopted by the council under this section establish minimum+requirements pertaining to the Employment Related Day Care subsidy pro-+gram and may not be construed to preempt, limit or otherwise diminish the+applicability of any policy, standard or collective bargaining agreement that+provides for an increased subsidy or a subsidized care facility reimbursement+amount under state or federal law.+“(8)(a) The council shall work to meet federal recommendations for in-+come eligibility and market access in regard to the Employment Related Day+Care subsidy program administered by the council.+“(b) Notwithstanding any provision of this section or any rule adopted+by the council pursuant to this section, the laws and regulations applicable+to any federal funds shall govern when any aspect of child care is funded+by federal funds.+“SECTION 2.+(1) The Department of Early Learning and Care shall+convene a work group to study the cost and availability of liability+insurance and other liability issues for child care providers certified+under ORS 329A.280, registered under ORS 329A.330 or recorded under+ORS 329A.255. The work group may also study impacts to programs+or entities that would typically be exempt from Department of Early+Learning and Care regulation. The objective of the work group is to+develop strategies for lowering insurance costs for these providers in+ SB 1535-2 2/9/26+ Proposed Amendments to SB 1535 Page 4+1+2+3+4+5+6+7+8+9+10+11+12+13+14+15+16+17+18+19+20+21+22+23+24+25+26+27+28+29+30+this state.+“(2) The work group shall consist of members selected by the De-+partment of Early Learning and Care, in consultation with the De-+partment of Consumer and Business Services.+“(3) When making selections for the work group under subsection+(2) of this section, the Department of Early Learning and Care shall,+to the extent practicable, select the following as members:+“(a) Representatives from certified, registered, recorded and exempt+child care providers located in different regions of this state.+“(b) Representatives from the insurance industry with experience+in liability insurance offered to child care facilities certified under ORS+329A.280, registered under ORS 329A.330 or recorded under ORS+329A.255, or to other types of exempt child care that are not subject+to Department of Early Learning and Care regulation.+“(c) Representatives from the Department of Consumer and Busi-+ness Services with expertise in liability insurance regulation.+“(d) Representatives from the Department of Early Learning and+Care with expertise in licensing and insurance requirements for pro-+viders of early learning services and care.+“(e) Representatives from the Oregon Department of Administrative+Services with expertise in risk management, including expertise in+establishing contractor and grantee insurance requirements.+“(f) Any other representatives that the Department of Early+Learning and Care determines are necessary to fulfill the purposes of+this section.+“(4) The Department of Early Learning and Care may select up to+five additional members provided that such members have experience+relevant to the objective of the work group as described in subsection+(1) of this section.+“(5) Members of the work group must be individuals who reflect the+ SB 1535-2 2/9/26+ Proposed Amendments to SB 1535 Page 5+1+2+3+4+5+6+7+8+9+10+11+12+13+14+15+16+17+18+19+20+21+22+23+24+25+26+27+28+geographic, racial, ethnic and gender diversity of this state.+“(6) The work group shall review information and research from+within Oregon and nationally concerning the impact of liability in-+surance and regulations pertaining to insurance requirements appli-+cable to providers of child care and child care facilities as defined in+ORS 329A.250, including certain types of care that are exempt from+Department of Early Learning and Care regulation.+“(7) The work group shall prepare a report that summarizes the+findings of the review required under subsection (6) of this section.+The report must:+“(a) Include policy options to increase child care provider accessi-+bility to liability insurance and to reduce the financial burden of li-+ability insurance on providers of child care; and+“(b) Explore the feasibility of using liability immunity, liability+damage caps or other strategies to address liability issues that affect+the availability and affordability of liability insurance for providers of+early learning services and care.+“(8) Not later than November 1, 2027, the work group shall submit+the report required by this section, in the manner provided under ORS+192.245, to the interim committees of the Legislative Assembly related+to early child care. The work group may include in the report sub-+mitted under this subsection recommendations for legislation.+“SECTION 3.+Section 2 of this 2026 Act is repealed on January 2,+2029.+“SECTION 4. This 2026 Act takes effect on the 91st day after the+date on which the 2026 regular session of the Eighty-third Legislative+Assembly adjourns sine die. ”.+ SB 1535-2 2/9/26+ Proposed Amendments to SB 1535 Page 6
Diffs are computed deterministically from extracted bill text and show additions, deletions, and section moves. Scanned-PDF text extracted via OCR is flagged where confidence is low; see methodology.