H 5017 General Bill, By J. Smith
 A BILL TO AMEND TITLE 44, CHAPTER 6, CODE OF LAWS OF SOUTH CAROLINA, 1976,
 RELATING TO THE DEPARTMENT OF HEALTH AND HUMAN SERVICES BY ADDING ARTICLE 9 SO
 AS TO ENACT THE CHILDREN FIRST! INITIATIVE ACT FOR THE PURPOSE OF DEVELOPING
 AND IMPLEMENTING A COMPREHENSIVE, LONG-RANGE PLAN TO IMPROVE EARLY CHILDHOOD
 DEVELOPMENT BY PROVIDING EDUCATION AND DEVELOPMENT SERVICES FOR YOUNG CHILDREN
 AND THEIR FAMILIES THROUGH GRANTS TO LOCAL ORGANIZATIONS THROUGH THE
 DEPARTMENT OF HEALTH AND HUMAN SERVICES.

   04/14/98  House  Introduced and read first time HJ-20
   04/14/98  House  Referred to Committee on Education and Public
                     Works HJ-20

A BILL

TO AMEND TITLE 44, CHAPTER 6, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE DEPARTMENT OF HEALTH AND HUMAN SERVICES BY ADDING ARTICLE 9 SO AS TO ENACT THE CHILDREN FIRST! INITIATIVE ACT FOR THE PURPOSE OF DEVELOPING AND IMPLEMENTING A COMPREHENSIVE, LONG-RANGE PLAN TO IMPROVE EARLY CHILDHOOD DEVELOPMENT BY PROVIDING EDUCATION AND DEVELOPMENT SERVICES FOR YOUNG CHILDREN AND THEIR FAMILIES THROUGH GRANTS TO LOCAL ORGANIZATIONS THROUGH THE DEPARTMENT OF HEALTH AND HUMAN SERVICES.

Whereas, the General Assembly finds that every child can benefit from and should have access to high quality early childhood education and development services and that the economic future and well-being of the State depend upon it; and

Whereas, to ensure that all children have access to quality early childhood and development services, the General Assembly further finds that:

(1) Parents have the primary duty to raise, educate, and transmit values to their young children.

(2) Communities can assist parents in their role as the primary care givers and educators of young children.

(3) There is a need to promote proven strategies and explore innovative approaches for aiding parents and families in the education and development of young children. Now, therefore,

Be it enacted by the General Assembly of the State of South Carolina:

SECTION 1. Title 44, Chapter 6 of the 1976 Code is amended by adding:

Section 46-6-1110. This article may be cited as the Children First! Initiative.

Section 44-6-1120. There is established the South Carolina Children First! Initiative, a comprehensive, long-range strategic plan for improving early childhood development by providing, through public and private means to local projects, high-quality early childhood education and development services for young children and families. This initiative must be carried out by the Department of Health and Human Services which may contract with a private nonprofit corporation for implementation of the initiative.

Section 44-6-1130. (A) The department shall conduct or contract for a needs and resource assessment for each county, which must be used in establishing priorities for the Children First! Initiative statewide and locally. The department shall oversee the selection, development, and implementation of local Children First! Initiatives, each of which must be coordinated by a local private nonprofit corporation.

(B) In carrying out the Children First! Initiative the department shall:

(1) seek funding, including federal funds;

(2) establish outcome measures and assess outcome goals for children and families receiving services pursuant to this article;

(3) ensure that statewide goals and requirements of this article are being met.

(C) The department shall submit an annual report to the Governor and to the General Assembly including, but not limited to, the ongoing progress and the results of the Children First! Initiative statewide and locally, a fiscal report on the expenditure of funds, and recommendations and legislative proposals to further implement the Children First! Initiative statewide.

Section 44-6-1140. (A) Any private nonprofit corporation that the department may contract with for the implementation of this article must include representatives of the following on its board of directors:

(1) South Carolina Department of Health and Human Services;

(2) Department of Health and Environmental Control;

(3) Department of Education;

(4) members of the general public representing the:

(a) South Carolina Association of American Academy of Pediatrics;

(b) South Carolina Association for Education of Young Children;

(c) South Carolina School Administrators Association;

(d) Business Partnership in Education;

(e) South Carolina Parent Teachers Association;

(f) Alliance for South Carolina's Children.

(B) Any entity with which the department contracts with to implement this article must have policies and procedures for conducting meetings and disclosing records comparable to those provided for in the Freedom of Information Act.

Section 44-6-1150. (A) To receive a grant under this article, a local Children First! Initiative must include a comprehensive collaborative, long-range plan of early childhood development services to children and families in the local initiative's service delivery area. In developing these plans the local initiative must allow communities the maximum discretion and flexibility practicable, while requiring these local initiatives to be accountable for fiscal management and program results.

(B) The board of directors of each local initiative must include, but is not limited to, representatives of these entities, organizations, and agencies: leaders in the business community; Head Start; parents with children receiving subsidized child care; child care providers; child care resource and referral agencies or other nonprofit organizations related to child care; the religious communities; Babynet or a parent of a child with a disability; municipal government; chair of the local cooperative extension service; director of the local public library; director of parenting education or parent literacy programs; chairman of the county governing body; county manager; directors of county departments of social services, health departments, and local mental health centers; school superintendents; community college and technical school presidents, and other members as the department may require.

(C) The board of directors for each local initiative shall elect from its members a steering committee to govern the operations of the local board. The local board must have policies and procedures comparable to those provided for in the Freedom of Information Act for conducting meetings and disclosing records.

Section 44-6-1160. (A) To begin the implementation of the Children First! Initiative, the department shall select six local initiative sites, one in each congressional district. Subsequently, the department shall identify service areas representing the various geographic areas of the State for other local initiatives and shall oversee the selection, development, and implementation of these initiatives. Initially, the department may limit the scope of categories of direct services for young children and families for which funds are made available so that local initiatives can focus on the development of long-range plans in their first year of operation.

(B) In selecting a site for a local initiative, the department shall review the initiative's plan and budget.

(C) The department shall provide program, financial, and technical assistance to local initiatives including, but not limited to providing, model programs, strategic planning, collaboration, financing, and evaluation.

(D) All activities and services provided by a local initiative must be made available to young children and families on a voluntary basis and may include, but are not limited to:

(1) child day care services:

(a) assistance to enable child care providers to meet licensing and building code requirements;

(b) needs and resources assessments for child care services;

(c) child care resource and referral services;

(d) enhancement of the quality of child care including, but not limited to, training, development of comprehensive services, and reducing staff turnover;

(e) technical assistance for child care providers;

(f) raising income eligibility for child care subsidies;

(g) child care subsidies, to reduce waiting lists;

(h) expanded services or enhanced rates for children with special needs;

(i) Head Start services;

(j) transportation services;

(k) quality incentive grants to child day care centers or family day care homes;

(l) staff and organizational development, leadership and administrative development, technology assisted education, and long-range planning;

(2) family and child-centered services:

(a) enhancement of the quality of home-based family and child-centered services including, but not limited to, parenting education programs and family literacy programs;

(b) technical assistance for home-based family and child-centered services;

(c) needs and resources assessments for home-based family and child-centered services;

(d) family literacy training and parenting education;

(e) improving access to immunizations, health and vision screening, and other health related services;

(f) staff and organizational development, leadership and administrative training, technology, and long-range planning.

Section 44-6-1170. (A) Funds provided to local initiatives must be used to expand coverage and improve the quality of services and may not supplant current expenditures by counties or state agencies on behalf of young children and their families and may not be used where other state or federal funding sources including, but not limited to, Head Start, are available or could be made available to that local community.

(B) A minimum of fifty percent of all funds provided for local initiatives must be used for child day care and child care related activities and programs which improve access to child care services, develop new child care services, or improve the quality of child care services in all settings, including in-home child care. However, only licensed and registered child care providers may be beneficiaries or recipients of these funds.

(C) Funds for overhead costs, as defined by the federal child care and development block grant guidelines, must not exceed fifteen percent statewide.

(D) State funds for the Children First! Initiative startup and related activities may be used for capital expenses or to support activities and services for children, families, and providers. However, state funds designated for activities and services may not be used for major capital expenses unless the local initiative demonstrates to the satisfaction of the department that the capital expenditure is:

(1) a priority need for the local initiative for which no state or federal funds are available; and

(2) necessary to provide services to underserved children and families.

Funds approved for capital expenditures, as defined by the standard fiscal accountability plan, provided for in Section 44-6-1200, may not exceed twenty-five percent annually of the total funds for direct services allocated to a local initiative.

Section 44-6-1180. (A) Local initiatives shall match no less than five percent of the total amount awarded to the initiative in each fiscal year, as follows:

(1) contributions of cash of at least two and one-half percent; and

(2) in-kind donated resources of at least two and one-half percent. Only in-kind donations, as defined by the standard fiscal accountability plan, provided for in Section 44-6-1200, that are quantifiable may be applied to the in-kind match requirement.

Expenses, including both those paid by cash and in-kind contributions, incurred by other nonstate entities participating in local initiatives may be included in determining matching funds.

(B) To satisfy matching fund requirements, expenses must:

(1) be verifiable from the contractor's records;

(2) if in-kind, be quantifiable in accordance with generally accepted accounting principles for nonprofit organizations;

(3) not include expenses funded by state funds;

(4) be supplemental and not supplant pre-existing resources for program related activities;

(5) be incurred as a direct result of the local initiative and be necessary and reasonable for the proper and efficient accomplishment of the initiative's objectives;

(6) be otherwise allowable under state or federal law;

(7) be required and described in the contracts approved by the department or the local initiative;

(8) be reported to the department or the local initiative in the same manner as reimbursable expenses.

(C) The department shall establish guidelines and reporting formats for local initiatives to document expenses to ensure they meet matching fund requirements. The department shall compile a report annually on the private cash and in-kind contributions received by the department and local initiatives.

Section 44-6-1190. To ensure effective use of funds in the startup year of the Children First! Initiative, funds appropriated to the department and awarded under contract for local initiatives during the 1998-99 fiscal year do not revert to the general fund, but may be carried forward and used by the department for the Children First! Initiative. In subsequent years, local initiatives may carry forward unexpended funds to the following fiscal year; however, the amount carried forward may not exceed the increase in funding the local initiative received during the current fiscal year over the prior fiscal year.

Section 44-6-1200. (A) The department shall develop and require local initiatives to adopt and implement a standard fiscal accountability plan including, but not limited to, a uniform, standardized system of accounting, internal controls, payroll, fidelity bonding, chart of accounts, and contract management and monitoring. Additionally, the accountability plan shall require competitive bids for the purchase or procurement of goods and services of ten thousand dollars or more. The department may contract with outside firms to develop and ensure implementation of this standard fiscal accountability plan, and the department may inspect fiscal and program records of local initiatives to ensure their compliance with the plan.

(B) Annually local initiatives shall have an independent, external audit conducted.

Section 44-6-1210. The department shall establish internal evaluation policies and procedures for local initiatives; however, annual program evaluations of the statewide and local Children First! Initiatives must be conducted by an independent, external evaluator under contract with the department. The purpose of the evaluation is to assess the progress of the Children First! Initiative goals and to determine the impact of the initiative on children and families at the state and local levels. The impact assessment shall include, but is not limited to, school readiness, immunization status, parent literacy training, parental involvement, and developmental screening results. Program evaluation reports must be published annually. All local projects shall cooperate fully in providing data and information for the evaluation."

SECTION 2. This act takes effect upon approval of the Governor.