Rule Impact Statemen
To: Programs administrator
Legal Services - Policy
From: Jaesha Quarrels
Director of Child Care Services
Date: December 2, 2024
Re: TITLE 340. DEPARTMENT OF HUMAN SERVICES
CHAPTER 110. LICENSING SERVICES
Subchapter 1. General Provisions
Part 1. Licensing Services - Child Care
340:110-1-8.3 [AMENDED]
340:110-1-8.4 [AMENDED]
340:110-1-8.8 [AMENDED]
340:110-1-8.11 [AMENDED]
340:110-1-15 [AMENDED]
340:110-1-17 [AMENDED]
(Reference 25-01)
Contact: Mitzi Lee, Programs Manager III, 405-202-7449
A. Brief description of the purpose of the proposed rule:
Purpose.
Proposed amendments to Chapter 110, Subchapter 1, Part 1 amend Oklahoma Human Services (OKDHS) Child Care Services (CCS) Quality Rating and Improvement System (QRIS) certification, monitoring, criteria, and grievance processes. Proposed amendments also include aligning Child Care Advisory Committee (CCAC) responsibilities for QRIS administrative review, per Section 404 of Title 10 of the Oklahoma Statutes (10 O.S. § 404), the Oklahoma Child Care Licensing Facilities Act.
Strategic Plan Impact.
Emergency rulemaking is requested so that OKDHS can make the necessary changes after a full year of implementation of the revised QRIS system. The original projections significantly underestimated the number of programs that would reach the highest levels. While quality child care is a priority, Oklahoma should maintain the standards in a way that ensures only the highest quality programs reach the highest levels. The administrative process must ensure decisions are made timely when reductions in star quality are necessary. The proposed QRIS certification, monitoring and criteria amendments impact programs applying for certification or currently participating at two- through five-star levels. Pre-certification visits verify program's initial ability to meet QRIS criteria and assist with the program's success in maintaining QRIS environments. Requiring five-star programs to participate in accreditation and meet all five-star criteria further ensures quality environments when programs are receiving the highest star level ratings.
Proposed amendments to CCAC QRIS administrative review: (1) align with statutory language, per 10 O.S. § 404, the Oklahoma Child Care Facilities Licensing Act for CCAC to designate individuals for the review process; (2) provide for a broader representation of individuals to participate in administrative reviews; and (3) alleviate the responsibility of CCAC members' participation in administrative reviews. Amendments impact programs currently participating in QRIS program at two- through five-star levels.
Proposed amendments regarding the streamlining of grievance procedures impact licensed child care programs, residential facilities, and child-placing agencies.
Substantive changes.
Subchapter 1. General Provisions
Part 1. Licensing Services - Child Care
Oklahoma Administrative Code (OAC) 340:110-8.3 is amended to reflect: (1) online certification request processes; (2) accreditation and Head Start Program Performance Standards are no longer options for meeting four-star certifications; (3) Head Start Program Performance Standards are no longer an option for five-star certifications; however, accreditation is required for all five-star programs; (4) accreditation timeframes for five-star programs; (5) only two-or three-star programs are approved for certification while on permit status, licensed status is required for four-and five-star certifications; (6) review of Licensing compliance history reduced to 12 months for applicable QRIS actions; (7) designated CCS staff to monitor QRIS criteria; (8) pre-certification visit requirements; (9) all programs, regardless of licensed capacity, may schedule the annual certification review; (10) one partial and one full-star criteria review annually; however accredited programs may be exempt from the partial review when not having numerous, repeated, or serious non-compliances within the previous 12 months; (11) revised process for star level denials, reductions, and referrals; (12) aligning members of administrative review, per 10 O.S. § 404; and (13) alignment of CCS terminology.
OAC 340:110-1-8.4 is amended to: (1) clarify compliance with minimum licensing requirements for two-star or higher certification approvals; and (2) reflect review of Licensing compliance history reduced to 12 months for applicable QRIS actions.
OAC 340:110-1-8.8 is amended to reflect accurate criteria citations.
OAC 340:110-1-8.11 is amended to: (1) require accreditation for five-star participation; (2) require accreditation is no longer an option for meeting four-star criteria; (3) require four- and five-star programs to meet all additional four- and five-star criteria; and (4) align CCS terminology.
OAC 340:110-1-15 is amended to: (1) revise specific circumstances and CCS actions eligible for grievances; (2) revise grievance timeframes for licensed programs and child-placing agencies; (3) reduce the number of review levels; (4) include confidentiality of Peer Review advisement; (5) reflect designated CCS staff involved with QRIS and CCS employee grievances; and (6) align CCS terminology.
OAC 340:110-1-17 is amended to: (1) reflect consultation with State Early Childhood Advisory Council; (2) revise QRIS administrative review participants to include individuals recommended by CCAC membership subcommittee with CCS approval and no longer requiring those individuals to be CCAC members; and (3) align CCS terminology.
Reasons.
Chapter 110, Subchapter 1, Part 1. The proposed amendments address revisions to QRIS criteria and processes for certification, monitoring, and grievances. Amendments provide improved quality child care for children receiving care in programs participating in QRIS two- through five-star levels. Amendments also address aligning QRIS administrative review process, per 10 O.S. § 404, the Oklahoma Child Care Facilities Licensing Act. Amendments impact licensed child care programs participating in QRIS at two- through five- star levels.
Amendments streamline the CCS grievance processes. Programs that may be impacted include licensed child care programs, residential facilities, and child-placing agencies.
Repercussions.
Chapter 110, Subchapter 1, Part 1. The proposed amendments address: (1) additional QRIS criteria to improve quality child care; (2) improved QRIS processes impacting certification and monitoring; (3) streamlining grievance processes; and (4) providing a broader representation of programs participating in QRIS administrative reviews.
Legal authority.
Director of Human Services; Section 162 of Title 56 of the Oklahoma Statutes (56 O.S. § 162); 10 O.S. §§ 401, 404, and 406 of the Oklahoma Child Care Facilities Licensing Act.
Emergency rulemaking approval is requested. Proposed amendments address changes needed as a result of funding challenges. Oklahoma received federal funding to support the child care industry during the pandemic; however, those funds were depleted in May 2024. These rule changes are needed to return the state to the current budgeted amount for the child care program and the increased number of participants in the child care subsidy program. Effective date is requested upon Governor approval.
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 classes of persons most likely to be affected by the proposed amendments are CCS staff, licensed child care programs, residential facilities, child-placing agencies, and families and children using licensed child care facilities participating in QRIS.
C. A description of the classes of persons who will benefit from the proposed rule: The classes of persons most likely to benefit by the proposed amendments are children and families utilizing licensed child care facilities participating in QRIS, CCS saff, licensed child care programs, residential facilities, and child-placing agencies.
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 will have an economic impact on licensed child care providers as they move from one star level to another. The star levels are tied directly to subsidy rates. Additionally, the proposed rules would impact the state agency budget and expenditures. The costs associated with obtaining and maintaining accreditation, including application fees, training, assessments, and any other related expenses, are the sole responsibility of the child care provider. The child care provider will have access to the list of approved accrediting agencies and will be responsible for choosing the accrediting agency that best aligns with their financial capabilities.
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: Minor system modifications will be required to capture accreditation information for child care providers. These upgrades will be funded through the Child Care Development Fund at the federal level. The benefit to the agency will be the ability to report, in real time, the providers with national accreditation, which will support the payment of higher subsidy rates. No changes to state agency revenue are anticipated.
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: Proposed amendments provide: (1) additional QRIS criteria to improve quality child care; (2) streamline grievance process; (3) broader representation for QRIS administrative reviews; and (4) improved child care for children and families receiving child care services in programs participating in QRIS.
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: If child care providers choose not to pursue accreditation, it will have an economic impact because their star rating, which determines their child care subsidy rates, will be reduced. Child care providers who decide to pursue accreditation are responsible for selecting an accrediting agency that aligns with their budget and available resources.
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, non-regulatory, or less intrusive methods for achieving the purpose of the proposed amendments.
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: Implementation of the proposed amendments provide: (1) improved child care for children and families receiving child care services in programs participating in QRIS; (2) additional QRIS criteria to improve quality child care; (3) streamlining the grievance process; (4) broader representation of programs for QRIS administrative reviews; and (5) adjusting expenditures to be aligned with Oklahoma’s child care budget.
J. A determination of any detrimental effect on the public health, safety, and environment if the proposed rule is not implemented: If the proposed amendments are not implemented: (1) quality of child care would be negatively impacted; (2) families will not have confidence in the star rating system; (3) the state will not be returned to the current budgeted amount for the child care program; (4) grievance processes would not be streamlined; and (5) broader representation for QRIS administrative reviews would not occur.
K. The date the rule impact statement was prepared and, if modified, the date modified: Prepared: December 2, 2024
