Rule Impact Statement
To: Programs administrator
Legal Services - Policy
From: Jaesha Quarrels, Child Care Services (CCS) Director
Child Care Services
Date: November 22, 2024
Re: Chapter 40. Child Care Subsidy Program
Subchapter 3. Initial Application
340:40-3-1 [AMENDED]
Subchapter 7. Eligibility
340:40-7-7 [AMENDED]
340:40-7-8 [AMENDED]
Subchapter 9. Procedures Relating to Case Changes
340:40-9-1 [AMENDED]
340:40-9-2 [AMENDED]
(Reference WF 25-02 and 26-40)
Contact: Joshua Edwards, Program Manager, (580)362-7188
A. Brief description of the purpose of the proposed rule:
Purpose.
The proposed amendments to Chapter 40, Subchapter 3 amend the rules to: (1) update acronyms; (2) remove reference to synchronization of child care benefits with other Oklahoma Human Services (OKDHS) benefits; and (3) add when a household requests child care benefits outside of regular business hours the application's or request's submission date is the next day OKDHS is open.
The proposed amendments to Chapter 40, Subchapter 7 amend the rules to: (1) add clarifying language; (2) add that a parent or caretaker must be employed at least 20 hours a week to meet the employment need factor; (3) update terminology; (4) add that the client must be making at least minimum wage for self-employment work performed regardless of length of time of self-employment; (5) remove that a licensed home child care provider may only be approved for child care subsidies when the client’s own child places the home provider over maximum licensed capacity; and (6) add that a client attending a formal education program must be enrolled in at least 6 credit hours to meet the need factor for child care subsidy;
The proposed amendments to Chapter 40, Subchapter 9 are amended to: (1) update terminology; (2) remove references to synchronization of other OKDHS benefits with Child Care Subsidy; (3) add that when a child who was not previously included in the child care household size is added to care, the twelve month eligibility period starts over; and (4) add when a client has requested voluntary closure of child care benefits, at any time during the previously established 12-month eligibility period, the worker reopens the child care benefits using the current eligibility information on the case regardless of whether the child care benefit has been closed in excess of 30-calendar days.
Strategic Plan Impact.
The proposed amendments are necessary to comply with provisions in the Child Care and Development Block Grant CCDBG Act of 2014. In addition, the proposed amendments address changes needed as a result of funding challenges. Oklahoma received federal funding to support the childcare 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 childcare program and the increased number of participants in the childcare subsidy program.
Substantive changes.
Subchapter 3. Initial Application
Oklahoma Administrative Code (OAC) 340:40-3-1 is amended to: (1) update acronyms; (2) remove reference to synchronization of child care benefits with other OKDHS benefits; and (3) add when a household requests child care benefits outside of regular business hours the application or request date is the next day OKDHS is open.
Subchapter 7. Eligibility
OAC 340:40-7-7 is amended to: (1) add clarifying language; (2) add that a parent or caretaker must be employed at least 20 hours a week to meet the employment need factor; and (3) update terminology.
OAC 340:40-7-8 is amended to: (1) add clarifying language; (2) add that a parent or caretaker must be employed at least 20 hours a week to meet the employment need factor; (3) update terminology; (4) add that the client must be making at least minimum wage for self-employment work performed regardless of length of time of self-employment; (5) remove that a licensed home child care provider may only be approved for child care subsidies when the client’s own child places the home provider over maximum licensed capacity; and (6) add that a client attending a formal education program must be enrolled in at least 6 credit hours to meet the need factor for child care subsidy.
Subchapter 9. Procedures Related to Case Changes
OAC 340:40-9-1 is amended to: (1) update terminology; and (2) remove references to synchronization of other OKDHS benefits with Child Care Subsidy.
OAC 340:40-9-2 is amended to add: (1) when a client has requested voluntary closure of child care benefits, at any time during the previously established 12-month eligibility period, the worker reopens the child care benefits using the current eligibility information on the case regardless of whether the child care benefit has been closed in excess of 30 days; and (2) when a child who was not previously included in the child care household size is added to care, the twelve month eligibility period starts over .
Reasons.
The proposed revisions are necessary to comply with provisions in the Child Care and Development Block Grant CCDBG Act of 2014.
In addition, these rule changes are needed to return the state to the current budgeted amount for the childcare program and the increased number of participants in the childcare subsidy program.
Repercussions.
If the proposed revisions are not implemented, Oklahoma will not meet CCDBG Act of 2014 requirements and may result in financial penalties to OKDHS. Additionally, if the proposed revisions are not implemented, the cost to administer the Child Care Subsidy program could exceed the amount of available Federal funding and a waitlist or enrollment freeze for applicants may be necessary.
Legal authority.
Director of Human Services; Section 162 of Title 56 of the Oklahoma Statues (56 O.S. § 162)
Emergency rulemaking approval is requested. Emergency rulemaking is requested because the proposed amendments are necessary to comply with provisions in the Child Care and Development Block Grant CCDBG Act of 2014. In addition, the proposed amendments address changes needed as a result of funding challenges. Oklahoma received federal funding to support the childcare 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 childcare program and the increased number of participants in the childcare 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 class of persons most likely to be affected by the proposed amendments are OKDHS 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 OKDHS staff and clients applying for or receiving subsidized child care benefits.
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: There are no fee changes associated with the revised rules.
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 probable OKDHS 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 amendments neither have an economic impact on any political subdivision nor require the cooperation of any political subdivisions 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 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: OKDHS does not anticipate the rules to reduce significant risks to the public health, safety, and environment.
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 no detrimental effect on public health, safety, and environment is expected.
K. The date the rule impact statement was prepared and, if modified, the date modified: Prepared 11/22/2024; modified
