COMMENT DUE DATE:
January 7, 2019
DATE:
December 27, 2018
Laura Brown, AFS 405-521-4396
Dena Thayer, Programs Administrator 405-521-4326
Nancy Kelly, Policy Specialist 405-522-6703
RE:
APA WF 18-17
The proposed policy is Emergency . This proposal is subject to Administrative Procedures Act
SUBJECT:
CHAPTER 40. CHILD CARE SUBSIDY PROGRAM
Subchapter 3. Initial Application
340:40-3-1 [AMENDED]
Subchapter 5. Child Care Plan
340:40-5-1[AMENDED]
Subchapter 7. Eligibility
340:40-7-1 [AMENDED]
340:40-7-6 [AMENDED] INSTRUCTIONS TO STAFF (ITS) ONLY
340:40-7-7 [AMENDED]
340:40-7-8 [AMENDED] ITS ONLY
340:40-7-10 [AMENDED]
340:40-7-11 [AMENDED] ITS ONLY
340:40-7-12 and OAC 340:40-7-13 [AMENDED]
Subchapter 9. Procedures Relating To Case Changes
340:40-9-1 [AMENDED]
340:40-9-2 [AMENDED]
(Reference WF 18-17)
SUMMARY:
The proposed revisions to Chapter 40, Subchapter 3 amend the rules to: (1) remove reference to an exit income threshold; and (2) update a rule citation.
The proposed revisions to Chapter 40 Subchapter 5 amend the rules to: (1) exempt Oklahoma Early Childhood Program (OECP) facilities from the requirement to charge all parents for the hours child care subsidy payment is requested to promote higher quality child care; and (2) remove reference to an entry and exit income threshold and that the number of children in child care affects the family share copayment amount.
The proposed revisions to Chapter 40 Subchapter 7 amend the rules to (1) remove a no longer applicable example regarding when a child is not predetermined income eligible for a zero copayment; (2) clarify when one parent or caretaker is not participating in Supplemental Nutrition Assistance Program (SNAP) Education and Training (E&T) activities, that parent must meet another need factor for child care during the same hours; and (3) approve children attending an OECP for a weekly unit type as long as the parent or caretaker meets a need for child care during some of the OECP care hours to promote higher quality: care; (4) exempt household income when at least one child attends an OECP and the household meets income guidelines; (5) remove reference to an entry and exit income threshold (6) update legal citations regarding excluded income from programs under the Older Americans Act as reauthorized and remove specific organizations receiving these funds; (6) exclude military combat pay from income consideration; (6) update rule and legal citations; and (7) remove rule citations.
The proposed revisions to Chapter 40 Subchapter 9 amend the rules to: (1) remove reference to an exit income threshold.
EMERGENCY APPROVAL:Emergency rulemaking approval is requested in order to meet the federal deadline for obligating the increased discretionary CCDF funding received as a result of passage of the Bipartisan Budget Act of 2018.Failure to obligate the increased funding may result in loss of the funding.Loss of the funding would detrimentally affect low income families and child care providers.
LEGAL AUTHORITY:Director of Human Services; Section 162 of Title 56 of the Oklahoma Statutes; Section 658A of the Child Care Development Block Grant Act of 2014 [Public .Law 113-186]; and Sections 98.11, 98.16, and 98.20 through 98.21 of Title 45 of the Code of Federal Regulations.
Rule Impact Statement
To:Programs Administrator
Office of Intergovernmental Relations and Policy
From:Patrick Klein, Director
Adult and Family ServicesDate:December 27, 2018
Re:CHAPTER 40. CHILD CARE SUBSIDY PROGRAM
Subchapter 3. Initial Application
340:40-3-1 [AMENDED]
Subchapter 5. Child Care Plan
340:40-5-1[AMENDED]
Subchapter 7. Eligibility
340:40-7-1 [AMENDED]
340:40-7-7 [AMENDED]
340:40-7-10 [AMENDED]
340:40-7-12 and OAC 340:40-7-13 [AMENDED]
Subchapter 9. Procedures Relating To Case Changes
340:40-9-1 [AMENDED]
340:40-9-2 [AMENDED]
(Reference WF 18-17)
Contact:Laura Brown 405-521-4396
A.Brief description of the purpose of the proposed rule:
Purpose.The proposed revisions to Chapter 40, Subchapter 3 amend the rules to: (1) remove reference to an exit income threshold; and (2) update a rule citation.
The proposed revisions to Chapter 40 Subchapter 5 amend the rules to: (1) exempt Oklahoma Early Childhood Program (OECP) facilities from the requirement to charge all parents for the hours child care subsidy payment is requested to promote higher quality child care; and (2) remove reference to an entry and exit income threshold and that the number of children in child care affects the family share copayment amount.
The proposed revisions to Chapter 40 Subchapter 7 amend the rules to (1) remove a no longer applicable example regarding when a child is not predetermined income eligible for a zero copayment; (2) clarify when one parent or caretaker is not participating in Supplemental Nutrition Assistance Program (SNAP) Education and Training (E&T) activities, that parent must meet another need factor for child care during the same hours; and (3) approve children attending an OECP for a weekly unit type as long as the parent or caretaker meets a need for child care during some of the OECP care hours to promote higher quality: care; (4) exempt household income when at least one child attends an OECP and the household meets income guidelines; (5) remove reference to an entry and exit income threshold (6) update legal citations regarding excluded income from programs under the Older Americans Act as reauthorized and remove specific organizations receiving these funds; (6) exclude military combat pay from income consideration; (6) update rule and legal citations; and (7) remove rule citations.
The proposed revisions to Chapter 40 Subchapter 9 amend the rules to: (1) remove reference to an exit income threshold.
Strategic Plan impact. The proposed rules achieve the Oklahoma Department of Human Services (DHS) goal of continuously improving systems and processes.
Substantive changes.
Subchapter 3. Initial Application
OAC 340:40-3-1 is amended to: (1) remove reference to an exit income threshold; and (2) update a rule citation.
Subchapter 5. Child Care Plan
OAC 340:40-5-1 is amended to: (1)exempt OECP facilities from the requirement to charge all parents for the hours child care subsidy payment is requested to promote higher quality child care; and (2) remove reference to an entry and exit income threshold and the provision that the number of children in child care affects the family share copayment amount.
Subchapter 7. Eligibility
OAC 340:40-7-1 is amended to remove a no longer applicable example regarding when a child is not predetermined income eligible for a zero copayment.
OAC 340:40-7-6 ITS is revised to: (1) remove duplicative information regarding how to consider income when two cases are set up and information involving the number of children in care that is no longer applicable; and (2) add rule citation regarding military income.
OAC 340:40-7-7 is amended to (1) clarify when one parent or caretaker is not participating in SNAP E&T activities, that parent must meet another need factor for child care during the same hours; (2) allow children attending an OECP to receive a weekly unit type as long as the parent or caretaker meets a need for child care during some of the OECP care hours to promote higher quality: care; and (3) update rule citations.
OAC 340:40-7-8 ITS is revised to: (1) allow children attending an OECP to receive a weekly unit type as long as the parent or caretaker meets a need for child care during some of the OECP care hours; and (2) clarify that care hours for sleep time begins when the parent or caretaker arrives home from work.
OAC 340:40-7-10 is amended to:(1) remove reference to a federal exit income threshold; and (2) remove a rule citation.
OAC 340:40-7-11 ITS is revised to: (1) add a reference to an OECP when exempting household income; (2) remove an instruction regarding room and board income; and (3) remove an example involving the number of children in care that is no longer applicable.
OAC 340:40-7-12 is amended to:(1) exempt household income when at least one child attends an OECP and the household meets income guidelines; (2) update legal citations regarding excluded income from programs under the Older Americans Act as reauthorized and the organizations that may receive these funds; and (3) exclude military combat pay from income consideration.
OAC 340:40-7-13 is amended to:(1) remove reference to two income thresholds; (2) remove a rule citation; and (3) update a legal citation.
Subchapter 9. Procedures Relating To Case Changes
OAC 340:40-9-1 is amended to remove the graduated phase out of care provision.
OAC 340:40-9-2 is amended to remove reference to an exit income threshold.
Reasons. The proposed amendment to remove the graduated phase out of care provision, reference to an entry and exit income threshold and the provision that when the number of children in care increases, the family share copayment increases are made as the income threshold on Appendix C-4, Child Care Eligibility/Copayment Chart is being updated to raise the income threshold for all families to the federal income threshold and to no longer increase the family share copayment when the number of children in child care increases.These changes will increase the number of families eligible for high quality, subsidized child care and is made possible because of the increased discretionary Child Care and Development Fund (CCDF) funding received as a result of passage of the Bipartisan Budget Act of 2018.
The proposed revisions to approve children attending an OECP facility for a weekly unit type and exempting household income when a child attends an OECP facility are made to benefit low-income families by increasing access to child care and providing high-quality early learning opportunities for young children. Decades of research show that the experiences infants and toddlers have in their earliest years shape the architecture of the brain and have long-term impacts on human development such as success in school and the ability to earn higher wages as adults.At the same time, the proposed changes increase the employability and stability of parents and reduce the impact of poverty on children.Studies have shown that access to reliable child care contributes to increased employment and earnings for parents.
The proposed amendment to exclude military combat pay from income consideration and update the legal citations for Title III and Title V funds excluded under the Older Americans Act and the organizations that receive the funds are made to align Child Care Subsidy rules with SNAP rules.
Repercussions.If the proposed revisions are not implemented by September 2019, the Oklahoma Department of Human Services may lose the increased Child Care and Development Funding that allows DHS to serve more low-income families by raising the income threshold and reducing the family share copayment amounts and allows children to attend OECP providers and reap the benefits of the enriched environment.
Legal authority. Director of Human Services; Section 162 of Title 56 of the Oklahoma Statutes; Section 658A of the Child Care Development Block Grant Act of 2014 [Public .Law 113-186]; and Sections 98.11, 98.16, and 98.20 through 98.21 of Title 45 of the Code of Federal Regulations.
Emergency rulemaking approval is requested in orderto meet the federal deadline for obligating the increased discretionary CCDF funding received as a result of passage of the Bipartisan Budget Act of 2018.Failure to obligate the increased funding may result in loss of the funding.Loss of the funding would detrimentally affect low income families and child care providers.
B.A description of the classes of persons who most likely will be affected by the proposed rule, including classes that will bear the costs of the proposed rule, and any information on cost impacts received by the Agency from any private or public entities: The class of persons most likely to be affected by the proposed rules are DHS staff, clients applying for or receiving subsidized child care benefits, and child care providers.
C.A description of the classes of persons who will benefit from the proposed rule:The classes of persons who will benefit are DHS staff, clients applying for or receiving subsidized child care benefits, and child care providers.
D.A description of the probable economic impact of the proposed rule upon the affected classes of persons or political subdivisions, including a listing of all fee changes and, whenever possible, a separate justification for each fee change: The proposed rules have a positive economic impact on the clients receiving child care subsidy benefits and their children to attend child care in a high quality environment with no financial burden to the child care household.The proposed rules will also provide payment stability for OECP facilities.
E.The probable costs and benefits to the Agency and to any other agency of the implementation and enforcement of the proposed rule, the source of revenue to be used for implementation and enforcement of the proposed rule and any anticipated effect on state revenues, including a projected net loss or gain in such revenues if it can be projected by the Agency: The proposed rules will result in enhanced delivery of services to positively impact children and families.The probable DHS cost of printing and distributing the rules is estimated to be less than $20.The revised rule to allow child care providers to be reimbursed for the full week of care for children attending OECPis estimated to cost $1,583,578 annually.The data is based on the number of children currently authorized to receive wrap around care at child care facilities with OECP programs.The costs associated with these revisions are 100 percent federally funded; there are no costs to the State.The revised rules which support revisions to the Appendix C-4, Child Care Eligibility/Copayment Chart, is estimated to cost $6,176,160 annually.The data is based on current utilization of the Child Care Subsidy Program.The costs associated with these revisions are 100 percent federally funded; there are no costs to the State.
F.A determination whether implementation of the proposed rule will have an impact on any political subdivisions or require their cooperation in implementing or enforcing the rule: The proposed rules do not have an economic impact on any political subdivision, nor will the cooperation of any political subdivisions be required in implementation or enforcement of the rules.
G.A determination whether implementation of the proposed rule will have an adverse economic effect on small business as provided by the Oklahoma Small Business Regulatory Flexibility Act: There are no anticipated adverse effects on small business as provided by the Oklahoma Small Business Regulatory Flexibility Act.
H.An explanation of the measures the Agency has taken to minimize compliance costs and a determination whether there are less costly or nonregulatory methods or less intrusive methods for achieving the purpose of the proposed rule:There are no less costly, nonregulatory, or intrusive methods for achieving the purpose of the proposed rules.
I.A determination of the effect of the proposed rule on the public health, safety, and environment and, if the proposed rule is designed to reduce significant risks to the public health, safety, and environment, an explanation of the nature of the risk and to what extent the proposed rule will reduce the risk:The proposed rules protect the health and safety of children by:(1) raising the income threshold for all parents to the federal income threshold which increases the number of children eligible for quality child care; and (2) incentivizing parents to place their children in a high quality OECP facility by approving five days of care each week with a zero copayment.This will serve to protect the health and safety of children by enriching their environment and providing high quality early learning opportunities.In addition, the proposed changes increase the employability and earning potential of parents and thus, reduce the impact of poverty on children.
J.A determination of any detrimental effect on the public health, safety, and environment if the proposed rule is not implemented:If the proposed rule to raise the income threshold to the federal income threshold for all families and to exempt household income and approve children attending an OECP program for a weekly unit type is not implemented, fewer low income families will be able to afford high quality early learning opportunities.In addition, fewer programs will be able to provide high quality care, thus limiting access to low income families.Research suggests that children with access to high quality learning environments are more likely to succeed in school and later in life.
K.The date the rule impact statement was prepared and, if modified, the date modified:Prepared October 17, 2018; amended December 27, 2018.
