(1) (a) No later than July 1, 2025, and at least every three years thereafter, the department, in consultation with county departments and child care providers, shall develop the calculation of provider rates with the goal of eventually ensuring the provider rates more accurately reflect the cost of child care rather than families' ability to pay. The department may contract for assistance in developing the calculation. The calculation must account for the cost of quality care and may vary by age group, region, and type of care. The department must ensure that the calculation of provider rates complies with federal regulations and, if required by federal law, must obtain approval before changing the calculation of or process for setting the provider rates. Before adopting a change to the provider rates or other payment policies, the department, in consultation with the county departments and providers, shall analyze the anticipated impact of the change to the Colorado child care assistance program, including the impact on the costs of services and on the families and providers that participate in CCCAP. The department shall include an analysis completed pursuant to this subsection (1)(a) in the report described in section 26.5-4-114.
(b) As soon as practicable following July 1, 2022, but no later than October 1, 2022, the executive director shall convene a working group of county departments and providers to discuss provider rates and the provider rate calculation described in subsection (1)(a) of this section.
(2) The department shall establish the provider rates based on the calculation developed pursuant to subsection (1) of this section and shall update the rates on a regular basis.
(3) The department shall include an explanation of the calculation of the provider rates in the report on CCCAP required pursuant to section 26.5-4-114, beginning with the report submitted on November 1, 2024, and in each subsequent report.
(4) The department, working with early childhood councils as defined in section 26.5-2-202, county departments, and local coordinating organizations as defined in section 26.5-2-102 shall identify and recruit providers throughout the state to participate in the child care assistance program. In identifying and recruiting providers, the department and local coordinating organizations shall establish a mixed delivery system of public and private providers in communities throughout the state that enables parents to select CCCAP providers for their children from as broad a range as possible within their respective communities.
(5) Starting July 1, 2025, the department shall create a pilot program for unlicensed providers to seek license-exempt status and establishment as an eligible CCCAP provider separate and distinct from the parent-initiated process. The pilot program must operate in at least two counties, including one urban county and one rural county. By June 30, 2027, the department shall evaluate the outcomes of the pilot program on enrolled providers and child care capacity and services in participating counties.
Source: L. 2022: Entire article added with relocations, (HB 22-1295), ch. 123, p. 667, � 3, effective July 1. L. 2024: (5) added, (HB 24-1223), ch. 390, p. 2698, � 6, effective June 4.
Editor's note: This section is similar to former � 26-2-803 as it existed prior to 2022.
Cross references: For the legislative declaration in HB 24-1223, see section 1 of chapter 390, Session Laws of Colorado 2024.
26.5-4-110. Funding - allocation - maintenance of effort - allocation committee - rules. (1) There is created the child care assistance program allocation committee consisting of eleven members, eight of whom are appointed by a statewide association of counties and three of whom are appointed by the department. Of the members appointed by the statewide association of counties, at least two members must be from small or medium-sized counties and at least three must be from large counties, one appointee of whom must be a representative from the county that has the greatest percentage of the state's child care assistance program caseload. The appointing authorities shall consult with each other to ensure that the child care assistance program allocation committee is representative of the counties in the state. The child care assistance program allocation committee shall develop its own operational procedures.
(2) (a) Starting with the 2023-24 state fiscal year, and subject to available appropriations, the department, upon receiving recommendations from the child care assistance program allocation committee, shall annually establish the amount of each county's block grant for CCCAP based on an allocation formula agreed upon by the department and the child care assistance program allocation committee. Counties are only required to spend the state CCCAP allocation and the maintenance of effort for that allocation.
(b) If the department and the child care assistance program allocation committee do not reach an agreement on the allocation formula on or before June 1 of a state fiscal year for the succeeding state fiscal year, the department and the child care assistance program allocation committee shall submit alternatives to the joint budget committee of the general assembly from which the joint budget committee shall select an allocation formula before the beginning of the succeeding state fiscal year.
(3) The department, after input from the child care assistance program allocation committee, shall adopt rules regarding adjustments to the amount of a block grant, and the rules must address the following factors:
(a) The cost of living;
(b) The cost of high-quality early childhood programs;
(c) The cost of programs;
(d) The regional market rates or costs for CCCAP;
(e) Drastic economic changes;
(f) Geographic differences within a county; and
(g) Other factors as determined by the child care assistance program allocation committee.
(4) The money in a county block grant allocated to a county pursuant to this section must only be used for the provision of child care services pursuant to department rules promulgated pursuant to this part 1.
(5) Money transferred from the county block grant temporary assistance for needy families program pursuant to section 26-2-714 (7) to the child care development fund may be used for child care quality improvement activities as identified in the federal Child Care and Development Block Grant Act of 2014, 42 U.S.C. sec. 9858e, as amended.
(6) For state fiscal year 2005-06 and for each state fiscal year thereafter, each county is required to meet a level of county spending for CCCAP that is equal to the county's proportionate share of the total county funds set forth in the annual general appropriation act for CCCAP for that state fiscal year. The level of county spending is known as the county's maintenance of effort for CCCAP for that state fiscal year. For any state fiscal year, the department is authorized to adjust a county's maintenance of effort, reflected as a percentage of the total county funds set forth in the annual general appropriation act for CCCAP for that state fiscal year, so that the percentage equals the county's proportionate share of the total state and federal funds appropriated for CCCAP for that state fiscal year. For any state fiscal year, the sum of all counties' maintenance of effort must be equal to or greater than the total county funds set forth in the general appropriation act for the state fiscal year 1996-97 for employment-related child care.
Source: L. 2022: Entire article added with relocations, (HB 22-1295), ch. 123, p. 668, � 3, effective July 1.
Editor's note: This section is similar to former � 26-2-804 as it existed prior to 2022.
26.5-4-111. Services - eligibility - assistance provided - waiting lists - rules - exceptions from cooperating with child support establishment. (1) Subject to available appropriations and pursuant to department rules promulgated for the implementation of this part 1, a county shall provide child care assistance to a participant or any person or family whose income is not more than one hundred eighty-five percent of the federal poverty level. For purposes of determining or redetermining eligibility for child care assistance, a county shall exclude from the definition of income payments made to a family from any unrestricted cash assistance program administered by a government, intermediary, nonprofit, or corporate entity. Subject to available appropriations and as necessary to comply with federal law or to align eligibility across early care and education programs specifically to meet the early care and education, income security, and child welfare needs of similar populations and as allowed by federal regulations, the executive director by rule may adjust the percentage of the federal poverty level used to determine child care assistance eligibility and shall revise income verification requirements that promote alignment and simplification with the Colorado universal preschool program.
(2) (a) A county may provide child care assistance for any family whose income at initial determination exceeds the requirements of subsection (1) of this section but does not exceed the maximum federal level for eligibility for services of eighty-five percent of the state median income for a family of the same size if it is serving all eligible families who have applied for CCCAP and whose income level is below that requirement. A county shall exclude state and federal assistance program income in eligibility determinations.
(b) If, during a participant's, person's, or family's twelve-month eligibility period, the participant's, person's, or family's income rises to or above the level set by department rule at which the county may deny such participant, person, or family child care assistance, the county shall continue providing the current CCCAP subsidy until that participant's, person's, or family's next twelve-month redetermination.
(c) If, at the time of a participant's, person's, or family's twelve-month eligibility redetermination, the participant's, person's, or family's income rises to or above the level set by department rule at which the county may deny child care assistance, or if that income level rises above the maximum federal eligibility level of eighty-five percent of the state median income for a family of the same size, the county shall immediately notify the participant, person, or family that it is no longer eligible for CCCAP.
(3) (a) Subject to available appropriations, pursuant to rules promulgated for implementation of this part 1, and except as provided in subsection (3)(b) of this section, a county shall provide child care assistance for a family transitioning off the works program due to employment or job training without requiring the family to apply for low-income child care but shall redetermine the family's eligibility within twelve months after the transition.
(b) A family that transitions off the works program must not be automatically transitioned to CCCAP pursuant to subsection (3)(a) of this section if either of the following conditions apply:
(I) The family is leaving the works program due to a violation of program requirements as defined in part 7 of article 2 of title 26 or by department rule; or
(II) The family is leaving the works program due to employment and will be at an income level that exceeds the income eligibility limit for the CCCAP.
(c) (Deleted by amendment, L. 2022.)
(4) (a) (I) A recipient of child care assistance through CCCAP is responsible for paying a portion of the recipient's child care costs based upon the recipient's income and the formula developed by department rule. The department and counties shall provide parent fee information in a variety of dissemination methods such as websites, including the Colorado shines website; mass media; paper forms and brochures; and targeted outreach. The information must include a clear definition of the parent fee; how parent fees are calculated; parent fee policies, such as when they must be paid; the parent fee and sliding fee scale; how parents and providers were engaged in the process for determining the parent fee and sliding fee scale; and a description of how parent fees might differ based on the provider that a family selects. Parent fee sliding scales should be presented in a clear, accessible format. The information must also be accessible in languages in addition to English and Spanish, based on the populations the department and counties serve.
(II) Upon notification to counties by the department that the relevant case management systems, including the Colorado child care automated tracking system, are capable of accommodating this subsection (4)(a)(II), for a family living at or below one hundred percent of the federal poverty level, the family copayment responsibility must be restricted to no more than one percent of the family's gross monthly income as determined based on one month of income.
(III) Pursuant to department rules and upon notification to counties by the department that the relevant case management systems, including the Colorado child care automated tracking system, are capable of accommodating this subsection (4)(a)(III), income received during the past thirty days must be used in determining the copayment, unless on a case-by-case basis the prior thirty-day period does not provide an accurate indication of anticipated income, in which case a county can require evidence of up to twelve of the most recent months of income. A family may also provide evidence of up to twelve of the most recent months of income if it chooses to do so if such evidence more accurately reflects an ability to afford the required family copayment.
(b) The executive director by rule shall establish, and at least every five years review and revise, as appropriate, a copayment schedule so that the copayment gradually increases as the family income approaches self-sufficiency income levels, but must be no greater than seven percent of the family's gross monthly income on or before August 1, 2026, regardless of the number of children in care, as determined based on one month of income, unless one month of income does not provide an accurate indication of anticipated income, in which case the county may use evidence of up to the most recent twelve months of income; however, if a federal rule limits copayments to less than seven percent of the family's gross monthly income, the department shall immediately comply with the federal limit. This revised copayment schedule should allow families to retain a portion of their increases in income.
(c) A participant who is employed shall pay a portion of the participant's income for child care assistance under CCCAP. The participant's required copayment pursuant to the provisions of this subsection (4)(c) is determined by a formula established by department rule that takes into consideration the factors set forth in subsections (4)(a) and (4)(b) of this section. The participant's employer may pay the participant's copayment at the participant's copayment rate.
(5) Repealed.
(6) Effective July 1, 2023, a county shall not require a person who applies for child care assistance pursuant to this section to participate in child support establishment, modification, and enforcement services related to any support owed by obligors to their children or to cooperate with the delegate child support enforcement unit as a condition of receiving child care assistance services. This subsection (6) does not prohibit a county from educating applicants about the benefits of child support and child support establishment, modification, and enforcement services, and how to engage in the child support process.
(7) (a) For a family with a child who is enrolled in both CCCAP and a head start program or, as soon as practicable after July 1, 2023, both CCCAP and the Colorado universal preschool program, the family's CCCAP eligibility redetermination must occur no sooner than the end of the last month of the child's first full twelve-month program year of enrollment in the head start or Colorado universal preschool program. Child care assistance program eligibility redetermination for a child enrolled in both programs must occur once every twelve months thereafter.
(b) Notwithstanding the provisions of section 26-1-127 (2)(a), a family that receives child care assistance pursuant to this part 1 is not required to report income or activity changes during the twelve-month eligibility period; except that, within the twelve-month eligibility period, a family is required to report a change in income if the family's income exceeds eighty-five percent of the state median income.
(c) A parent must not be determined ineligible to receive child care assistance pursuant to this part 1 as a result of:
(I) Taking maternity leave;
(II) Being a separated spouse or parent under a validly issued temporary order for parental responsibilities or child custody where the other spouse or parent has disqualifying financial resources;
(III) Each instance of nontemporary job loss for less than ninety days; or
(IV) A temporary break in eligible activity, as defined by department rule.
(d) Pursuant to department rules promulgated for the implementation of this part 1, a parent who is enrolled in a postsecondary education program or a workforce training program is eligible for CCCAP for at least any two years of the postsecondary education or workforce training program, provided all other CCCAP eligibility requirements are met during those two years. On and after July 1, 2024, a county may not give priority for services to a working family over a family enrolled in postsecondary education or workforce training.
(e) To provide continuous child care with the least disruption to the child, authorized child care through CCCAP must promote continuous, consistent, and regular care and must not be linked directly to a parent's employment, education, or workforce training schedule. Pursuant to department rules, the amount of child care authorized should be based on the parent's and child's needs for child care.
(8) Pursuant to department rules and upon notification to counties by the department that the relevant case management systems, including the Colorado child care automated tracking system, are capable of accommodating this subsection (8), income received during the past thirty days must be used in determining eligibility unless, on a case-by-case basis, the prior thirty-day period does not provide an accurate indication of anticipated income, in which case a county can require evidence of up to twelve of the most recent months of income. A family may also provide evidence of up to twelve of the most recent months of income if it chooses to do so if such evidence more accurately reflects a family's current income level.
(9) A county has the authority to develop a voucher system for families enrolled in CCCAP through which they can secure relative or unlicensed child care.
(10) An early care and education provider or county may conduct a pre-eligibility determination for child care assistance for a family to facilitate the determination process. The early care and education provider shall submit its pre-eligibility documentation to the county for final determination of eligibility for child care assistance. The early care and education provider or county may provide services to the family prior to final determination of eligibility, and the county shall reimburse a provider for such services only if the county determines the family is eligible for services and there is no need to place the family on a waiting list. If the family is found ineligible for services, the county shall not reimburse the early care and education provider for any services provided during the period between its pre-eligibility determination and the county's final determination of eligibility.
(11) A provider or a local coordinating organization, as defined in section 26.5-2-102, may accept a family's CCCAP application and submit it to the county on behalf of a family seeking child care assistance.
(12) Each county:
(a) Upon notification to counties by the department that the relevant case management systems, including the Colorado child care automated tracking system, are capable of accommodating this subsection (12)(a), and pursuant to department rules, on or before August 1, 2026, and subject to available federal appropriations, in addition to regular provider reimbursement rates, the county departments shall pay providers for care in alignment with common practices in the private market for child care, including paying providers weekly for each child based on child enrollment in advance of the provision of services. The department rules governing payment policies must allow daily reimbursement rates only for drop-in child care, back-up child care, and care that is commonly paid on a daily reimbursement basis in the private child care market and must incentivize providers to promote regular program attendance. On or before August 1, 2026, and subject to available federal appropriations, the department and county departments shall utilize grants and contracts for underserved populations, including children in underserved geographic areas, infants and toddlers, children with disabilities, and families needing nontraditional-hour care, to improve equitable access for these populations. The department shall annually evaluate data regarding the numbers and percentages of underserved populations being served by CCCAP to determine if equitable access is improved or achieved. The executive director shall promulgate rules for the implementation of this subsection (12).
(b) Shall maintain a current and accurate waiting list of parents who have inquired about securing a CCCAP subsidy and are likely to be eligible for CCCAP based on self-reported income and job, education, or workforce training activity if families are not able to be served at the time of application due to funding concerns. Counties may enroll families off waiting lists according to local priorities and may require an applicant to restate the applicant's intention to be kept on the waiting list every six months in order to maintain the applicant's place on the waiting list.
(c) Shall post eligibility, authorization, and administration policies and procedures so they are easily accessible and readable to a layperson. The policies must be sent to the department for compilation.
(d) May use its CCCAP allocation to provide enrollment contracts or grants to early care and education providers: To support implementation of the local community plan described in section 26.5-2-104; to increase the supply and improve the quality of child care for infants and toddlers, children with disabilities, after-hours care, and children in underserved neighborhoods; to provide stability for the early childhood sector; and to improve alignment with the provision of additional preschool services, as defined in section 26.5-4-203, to working families who need additional care;
(e) Subject to available appropriations and pursuant to department rules, and upon notification to counties by the department that the relevant case management systems, including the Colorado child care automated tracking system, are capable of accommodating this subsection (12)(e), shall use eligibility determination information from other public assistance programs and systems to determine CCCAP eligibility, including eligibility determination information used for children participating in the Colorado universal preschool program; and
(f) Shall prioritize child care assistance for certified foster parents, certified kinship foster parents, noncertified kinship care providers that provide care for children with an open child welfare case who are in the legal custody of a county department, and noncertified kinship care providers that provide care for children with an open child welfare case who are not in the legal custody of a county department.
(13) For children who are enrolled in both CCCAP and the Colorado universal preschool program, the executive director shall adopt rules as necessary to ensure:
(a) Funds may be combined and coordinated to the extent allowed by law at the state and local level to ensure families can seamlessly access early childhood education and services and providers face the fewest possible systems to navigate to secure payment for services; and
(b) Eligibility and authorization for services for the portions of both programs that are targeted to similar populations are aligned to the greatest extent practicable as allowed by federal regulations, including ensuring the state takes maximum advantage of flexibility in federal regulations to ensure that children who are eligible for both programs can seamlessly access the length and quality of programming that parents, children, and families need.
(14) The executive director shall promulgate rules for the implementation of this part 1.
(15) An applicant can satisfy the eligible activity criteria for up to one year by participating in a substance use disorder treatment. Participation in a nationally recognized, evidence-based substance use disorder treatment program at an intensive outpatient service level of care or higher must be recognized as an eligible activity for a workforce training program.
Source: L. 2022: Entire article added with relocations, (HB 22-1295), ch. 123, p. 670, � 3, effective July 1. L. 2024: (1), (2)(a), (4)(a)(I), (4)(b), (4)(c), (7)(d), and (12)(a) amended and (15) added, (HB 24-1223), ch. 390, p. 2698, � 7, effective June 4.
Editor's note: (1) This section is similar to former � 26-2-805 as it existed prior to 2022.
(2) Subsection (5)(g) provided for the repeal of subsection (5), effective July 1, 2023. (See L. 2022, p. 670.)
Cross references: For the legislative declaration in HB 24-1223, see section 1 of chapter 390, Session Laws of Colorado 2024.