COMMENT DUE DATE:
February 15, 2018
DATE:
January 16, 2018
Laura Brown Adult and Family Services 405-521-4396
Dena Thayer, Programs Administrator 405-521-4326
RE:
APA WF 18-40
The proposed policy is Permanent . This proposal is subject to Administrative Procedures Act
A public hearing is scheduled for 10:00 a.m. on February 21, 2018, at DHS, Sequoyah Memorial Office Building, 2400 N. Lincoln Boulevard, Oklahoma City, Oklahoma 73105, Room C-48.Anyone who wants to speak must sign in at the door by 10:05 a.m.
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
340:40-7-10 [AMENDED]
340:40-7-13 [AMENDED]
Subchapter 9. Procedures Related To Case Changes
340:40-9-1 [AMENDED]
340:40-9-2 [AMENDED]
Subchapter 13. Child Care Rates and Provider Issues
340:40-13-1 [AMENDED]
340:40-13-2 [AMENDED]
Subchapter 15. Overpayments
340:40-15-1 [AMENDED]
(Reference WF 17-16)
SUMMARY:The proposed revisions to Chapter 40, Subchapter 3 amend the rules to: (1) update rule and legal citations; and (2) change reporting requirements.
The proposed revisions to Chapter 40, Subchapter 5 amend the rules to:(1) remove the one star center provider exception because it is no longer valid; (2) only allow a client to choose an in-home provider who is related to the child; (3) change information to only allow child care plan hours to be reduced or the family share copayment to be increased at renewal; (4) add two income eligibility thresholds; one based on state income guidelines for applicants and one based on federal income guidelines for recipients; (5) update terminology; and (6) simplify and clarify language.
The proposed revisions to Chapter 40, Subchapter 7 amend the rules to:(1) add tag lines and rule citations; (2) add anticipated income to income considered when determining eligibility for subsidy benefits; (3) update how income from a new source is considered; (4) change income information to not increase income until the renewal month and only require households to report income changes between eligibility determinations when the income exceeds the exit income threshold and child care benefits must be closed; (5) add information to decrease income between eligibility periods when reported; (6) remove information that income must be verified within 90 calendar days when the last 30 days of income was not available at application or renewal; (7) update terminology and how income is considered and calculated at initial certification; (8) add two income eligibility thresholds; one for initial certification and one for ongoing eligibility; and (8) simplify and clarify income information.
The proposed revisions to Chapter 40, Subchapter 9 amend the rules to:(1) update rule citations; (2) add graduated phase-out of subsidized care information to include two income eligibility thresholds; one for initial certification and one for ongoing eligibility; (3) change reporting requirements between renewals to only require the client to report when household income exceeds federal income guidelines; (4) no longer allow decreases in benefits or increases in the family share copayment between renewals, (5) reorganize information; (6) update reasons for benefit closures; (7) remove reasons a new application is required; and (8) add legal citations.
The proposed revisions to Chapter 40, Subchapter 13 amend the rules to:(1) require an in-home provider to be related to the child; (2) define the term related to; (3) remove personal references from caregiver qualifications; (4) update in-home provider requirements to include current certification in first aid and infant and child cardiopulmonary resuscitation (CPR); (5) remove specific examples of recommended training for providers caring for children who receive the special needs rate; (6) add legal citations; and (7) update terminology and simplify language.
The proposed revisions to Chapter 40, Subchapter 15 amend the rules to:(1) add taglines; (2) specify client overpayment referrals are sent to Adult and Family Services (AFS) Benefit and Recovery (BIR) and provider overpayments are sent to Financial Services Electronic Payment Systems (EPS); (3) reorganize and clarify overpayment determination and claim establishment procedures and monthly account statement information; (4) clarify agency error client overpayments; (5) add rule citation; (6) remove provider error overpayments based on failure to maintain records; (7) remove repetitive information; (8) clarify provider overpayment repayment procedures; and (9) update terminology.
PERMANENT APPROVAL:Permanent rulemaking is requested.
LEGAL AUTHORITY:Director of Human Services;Section 162 of Title 56 of the Oklahoma Statutes; CCDBG Act of 2014 [P.L. 113-186]; and Sections 98.10, 98.11, 98.16, 98.21, and 98.41 of Title 45 of the Code of Federal Regulations.
Rule Impact Statement
To:Programs Administrator
Legal Services
From:Patrick Klein, Director
Adult and Family Services
Date:December 18, 2017
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
340:40-7-10 [AMENDED]
340:40-7-13 [AMENDED]
Subchapter 9. Procedures Related To Case Changes
340:40-9-1 [AMENDED]
340:40-9-2 [AMENDED]
Subchapter 13. Child Care Rates and Provider Issues
340:40-13-1 [AMENDED]
340:40-13-2 [AMENDED]
Subchapter 15. Overpayments
340:40-15-1 [AMENDED]
(Reference WF 17-16)
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) update rule and legal citations; and (2) change reporting requirements.
The proposed revisions to Chapter 40, Subchapter 5 amend the rules to:(1) remove the one star center provider exception because it is no longer valid; (2) only allow a client to choose an in-home provider who is related to the child; (3) change information to only allow child care plan hours to be reduced or the family share copayment to be increased at renewal; (4) add two income eligibility thresholds; one based on state income guidelines for applicants and one based on federal income guidelines for recipients; (5) update terminology; and (6) simplify and clarify language.
The proposed revisions to Chapter 40, Subchapter 7 amend the rules to:(1) add tag lines and rule citations; (2) add anticipated income to income considered when determining eligibility for subsidy benefits; (3) update how income from a new source is considered; (4) change income information to not increase income until the renewal month and only require households to report income changes between eligibility determinations when the income exceeds the exit income threshold and child care benefits must be closed; (5) add information to decrease income between eligibility periods when reported; (6) remove information that income must be verified within 90 calendar days when the last 30 days of income was not available at application or renewal; (7) update terminology and how income is considered and calculated at initial certification; (8) add two income eligibility thresholds; one for initial certification and one for ongoing eligibility; and (8) simplify and clarify income information.
The proposed revisions to Chapter 40, Subchapter 9 amend the rules to:(1) update rule citations; (2) add graduated phase-out of subsidized care information to include two income eligibility thresholds; one for initial certification and one for ongoing eligibility; (3) change reporting requirements between renewals to only require the client to report when household income exceeds federal income guidelines; (4) no longer allow decreases in benefits or increases in the family share copayment between renewals, (5) reorganize information; (6) update reasons for benefit closures; (7) remove reasons a new application is required; and (8) add legal citations.
The proposed revisions to Chapter 40, Subchapter 13 amend the rules to:(1) require an in-home provider to be related to the child; (2) define the term related to; (3) remove personal references from caregiver qualifications; (4) update in-home provider requirements to include current certification in first aid and infant and child cardiopulmonary resuscitation (CPR); (5) remove specific examples of recommended training for providers caring for children who receive the special needs rate; (6) add legal citations; and (7) update terminology and simplify language.
The proposed revisions to Chapter 40, Subchapter 15 amend the rules to:(1) add taglines; (2) specify client overpayment referrals are sent to Adult and Family Services (AFS) Benefit and Recovery (BIR) and provider overpayments are sent to Financial Services Electronic Payment Systems (EPS); (3) reorganize and clarify overpayment determination and claim establishment procedures and monthly account statement information; (4) clarify agency error client overpayments; (5) add rule citation; (6) remove provider error overpayments based on failure to maintain records; (7) remove repetitive information; (8) clarify provider overpayment repayment procedures; and (9) update terminology.
Strategic Plan impact. The proposed rules achieve the DHS goal of coming in to compliance with the Child Care and Development Block Grant (CCDBG) Act of 2014, Public .Law (P.L.) 113-186, while continuously improving systems and processes.
Substantive changes.
Subchapter 3. Initial Application
Oklahoma Administrative Code (OAC) 340:40-3-1 is amended to: (1) update rule and legal citations; and (2) change reporting requirements.
Subchapter 5. Child Care Plan
OAC 340:40-5-1 is amended to: (1) remove the one star center provider exception because no it is longer valid; (2) only allow a client to choose an in-home provider who is related to the child; (3) change information to only allow child care plan hours to be reduced or the family share copayment to be increased at renewal; (4) add two income eligibility thresholds; one based on state income guidelines for applicants and one based on federal income guidelines for recipients; (5) update terminology; and (6) simplify and clarify language.
Subchapter 7. Eligibility
OAC 340:40-7-10 is amended to:(1) add tag lines and rule and legal citations; (2) add anticipated income to income considered when determining eligibility for subsidy benefits; (3) update how income from a new source is considered; (4) not increase income until the renewal month; (5) only require households to report income changes between eligibility determinations when the income exceeds the exit income threshold and child care benefits must be closed; and (6) decrease income between eligibility periods when reported.
OAC 340:40-7-13 is amended to:(1) add tag lines and rule and legal citations; (2) remove information that income must be verified within 90 calendar days when the last 30 days of income was not available at application or renewal; (3) update terminology and how income is considered and calculated at initial certification; (4) add how income from a new source is considered at renewal; (5) include two income eligibility thresholds; one for initial certification and one for ongoing eligibility; and (6) simplify and clarify income information.
Subchapter 9. Procedures related to case changes
OAC 340:40-9-1 is amended to:(1) update a rule citation; (2) add graduated phase-out of subsidized care information to include two income eligibility thresholds; one for initial certification and one for ongoing eligibility; and (3) add legal citations.
OAC 340:40-9-2 is amended to:(1) change reporting requirements between renewals to only require the client to report when household income exceeds federal income guidelines; (2) no longer allow decreases in benefits or increases in the family share copayment between renewals; (3) update reasons for benefit closures; (4) remove reasons a new application is required; (5) reorganize information; and (6) add rule and legal citations.
Subchapter 13. Child Care Rates and Provider Issues
OAC 340:40-13-1 is amended to: (1) require an in-home provider to be related to the child; (2) define the term related to; (3) add legal citation; and (4) simplify language and update terminology.
OAC 340:40-13-2 is amended to:(1) require an in-home provider to be related to the child; (2) define the term related to; (3) remove personal references from caregiver qualifications; (4) update in-home provider requirements to include current certification in first aid and infant and child; (5) remove specific examples of recommended training for providers caring for children who receive the special needs rate; (6) add legal citations; and (7) update terminology and simplify language.
Subchapter 15. Overpayments
OAC 340:40-15-1 is amended to: (1) add taglines; (2) specify client overpayment referrals are sent to AFS BIR and provider overpayments are sent to Financial Services Electronic Payment Systems (EPS); (3) reorganize and clarify overpayment determination and claim establishment procedures and monthly account statement information; (4) clarify agency error client overpayments; (5) add rule citation; (6) remove provider error overpayments based on failure to maintain records; (7) remove repetitive information; (8) clarify provider overpayment repayment procedures; and (9) update terminology.
Reasons. The proposed revisions are necessary to comply with provisions in the CCDBG Act of 2014. Once determined eligible at the state’s entry income threshold, the household remains eligible unless household income exceeds the federal exit income threshold set at 85% of State Median Income (SMI).
- Once established at approval, the family share copayment cannot be increased and the amount of care authorized cannot be reduced over the 12 month eligibility period.
- At renewal, when the household’s income is above the state’s entry income threshold but below the federal income threshold, the family is eligible for an additional 12 months of subsidized care.Copayments may be increased at this time.
- License exempt in-home providers must be related to the child who needs subsidized care.
- License exempt in-home providers must complete first aid and CPR prior to approval for subsidy payments.
The proposed rules throughout the subchapters are amended to make policy easier to understand for clients, staff, child care providers, and the public and less error prone for staff by:(1) updating, simplifying, and clarifying language; (2) updating terminology; and adding, removing, and revising rules to ensure benefits are issued properly and renewed appropriately.
Repercussions.If the proposed revisions are not implemented by the federal deadline of September 30, 2017, Oklahoma will not meet CCDBG Act of 2014 requirements and may result in financial penalties to DHS.
Legal authority. Director of Human Services; Section 162 of Title 56 of the Oklahoma Statutes; CCDBG Act of 2014 [P.L. 113-186]; and Sections 98.10, 98.11, 98.16, 98.21, and 98.41 of Title 45 of the Code of Federal Regulations.
Permanent rulemaking approval is requested. Rules were submitted as emergency rules on August 2, 2017 and were approved by the Governor on August 28, 2017. No revisions were made for permanent rulemaking.
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 by:
- implementing a higher income threshold for recipients than initial applicants; and
- not decreasing child care plan hours or increasing the family share copayment during eligibility periods.
These changes will allow clients to accept raises and improve their family economic situation without fear of completely losing their subsidies and will provide a stable care setting for their children.The proposed rules will also provide payment stability for child care providers.
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 familiesIt will also benefit DHS staff by automating and simplifying eligibility processes,requiring fewer case actions.The estimated cost for implementation of the proposed rules is $7,294,032 which will be covered by federal funds.The probable DHS cost of printing and distributing the rules is estimated to be less than $20.
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 or nonregulatory methods or less intrusive methods for achieving the purpose of the proposed rules as the revisions are required by the CCDBG Act of 2014.
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 allowing children to remain eligible for subsidized child care for longer periods of time when the family’s income exceeds the state’s entry income threshold but remains below the federal exit income threshold.This may prevent some children from being left at home alone or with unsuitable caregivers while the parent(s) work.
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 revisions are not implemented, DHS will be out-of-compliance with federal requirements which may result in penalties that further exacerbate limited child care funding and will not decrease safety risks to children who lose stable and licensed child care.
K.The date the rule impact statement was prepared and, if modified, the date modified:Prepared June 1, 2017; modified December 18, 2017.
