Rule-making Standards and Procedures



STATEMENT OF BASIS AND PURPOSE

Summary of the basis and purpose for the rule or rule change. (State what the rule says or does, explain why the rule or rule change is necessary and what the program hopes to accomplish through this rule.)

This proposed rule package provides an annual update of the Federal Poverty Guidelines for use by counties in the administration of the Colorado Child Care Assistance Program (CCCAP) by repealing the former guidelines and replacing them with the new ones.

An emergency rule-making (which waives the initial Administrative Procedure Act noticing requirements) is necessary:

| |to comply with state/federal law and/or |

| |to preserve public health, safety and welfare |

Explain:

Authority for Rule:

State Board Authority: 26-1-107, C.R.S. (2013) - State Board to promulgate rules; 26-1-109, C.R.S. (2013) - state department rules to coordinate with federal programs; 26-1-111, C.R.S. (2013) - state department to promulgate rules for public assistance and welfare activities.

Program Authority: (give federal and/or state citations and a summary of the language authorizing the rule-making)

26-2-801, et seq. (2013) - Colorado Child Care Assistance Program Act

| |Yes |X |No |

| |Yes |X |No |

Does the rule incorporate material by reference?

Does this rule repeat language found in statute?

If yes, please explain.

|Initial Review | 07/11/2014 |Final Adoption | 08/08/2014 |

|Proposed Effective Date |10/01/2014 |EMERGENCY Adoption | N/A |

_______________

[Note: “Strikethrough” indicates deletion from existing rules and “all caps” indicates addition of new rules.]

STATEMENT OF BASIS AND PURPOSE (continued)

The program has sent this proposed rule-making package to which stakeholders?

All County Departments of Human Services; the Colorado Human Services Directors Association; Colorado Counties, Inc.; the 1,700 licensed child care providers serving CCCAP children; the CCCAP Collaborative; the Policy Advisory Committee (PAC) and the Office of Early Childhood Sub-PAC.

A survey Monkey was sent to all above listed stakeholders to enable written feedback to be captured and managed efficiently. Data is still being gathered and an update will be provided.

Attachments:

Regulatory Analysis

Overview of Proposed Rule

Stakeholder Comment Summary

REGULATORY ANALYSIS

(complete each question; answers may take more than the space provided)

1. List of groups impacted by this rule:

Which groups of persons will benefit, bear the burdens or be adversely impacted by this rule?

The impact of the new poverty guidelines will be on families whose incomes are affected by changes in the poverty guidelines. No data is available at this time to forecast how many families will be affected by the new guidelines.

2. Describe the qualitative and quantitative impact:

How will this rule-making impact those groups listed above? How many people will be impacted? What are the short-term and long-term consequences of this rule?

For the update of the federal poverty guidelines there is no impact.

3. Fiscal Impact:

For each of the categories listed below explain the distribution of dollars; please identify the costs, revenues, matches or any changes in the distribution of funds even if such change has a total zero effect for any entity that falls within the category. If this rule-making requires one of the categories listed below to devote resources without receiving additional funding, please explain why the rule-making is required and what consultation has occurred with those who will need to devote resources.

State Fiscal Impact (Identify all state agencies with a fiscal impact, including any Colorado Benefits Management System (CBMS) change request costs required to implement this rule change)

None

County Fiscal Impact :

None

Federal Fiscal Impact

None

Other Fiscal Impact (such as providers, local governments, etc.)

None

4. Data Description:

List and explain any data, such as studies, federal announcements, or questionnaires, which were relied upon when developing this rule?

Federal publication of the annual Federal Poverty Guidelines was used as found in the Federal Register at 79 FR 3593.

REGULATORY ANALYSIS (continued)

5. Alternatives to this Rule-making:

Describe any alternatives that were seriously considered. Are there any less costly or less intrusive ways to accomplish the purpose(s) of this rule? Explain why the program chose this rule-making rather than taking no action or using another alternative.

None. Since the Federal Poverty Guidelines affect client eligibility for services, the changes need to be updated in rule every year.

OVERVIEW OF PROPOSED RULE

Compare and/or contrast the content of the current regulation and the proposed change.

|Section Numbers |Current Regulation |Proposed Change |Stakeholder Comment |

| | | | | | | |

|3.905, B, 10 |2014 Federal Poverty Guidelines |Replace with 2015 Federal Poverty |__ |Yes |X |No |

| | |Guidelines | | | | |

| | | | | | | |

| | | | | | | |

| | | | | | | |

STAKEHOLDER COMMENT SUMMARY

DEVELOPMENT

The following individuals and/or entities were included in the development of these proposed rules (such as other Program Areas, Legislative Liaison, and Sub-PAC):

None.

THIS RULE-MAKING PACKAGE

The following individuals and/or entities were contacted and informed that this rule-making was proposed for consideration by the State Board of Human Services:

All County Departments of Human Services via communications sent to the human services directors, the Colorado Human Services Directors Association; Colorado Counties, Inc.; the 1,700 licensed child care providers serving CCCAP children; the CCCAP Collaborative; the Policy Advisory Committee (PAC) and the Office of Early Childhood Sub PAC.

A survey Monkey was sent to all above listed stakeholders to enable written feedback to be captured and managed efficiently. Data is still being gathered and an update will be provided.

Are other State Agencies (such as Colorado Department of Health Care Policy and Financing) impacted by these rules? If so, have they been contacted and provided input on the proposed rules?

| |Yes |X |No |

Have these rules been reviewed by the appropriate Sub-PAC Committee?

|X |Yes | |No |

Date presented __________________. Were there any issues raised? _X_ Yes ___ No

Counties expressed concern about publishing the federal poverty guidelines in rule each year, specifically commenting on that they feel it is an inefficient process.

Comments were received from stakeholders on the proposed rules:

| |Yes |X |No |

If “yes” to any of the above questions, summarize and/or attach the feedback received by specifying the section and including the Department/Office/Division response. Provide proof of agreement or ongoing issues with a letter or public testimony by the stakeholder.

The Office of Early Childhood is still collecting comments and feedback and will provide an update to this package.

(9 CCR 2503-9)

3.905 ARRANGEMENT FOR CHILD CARE SERVICES [Rev. eff. 11/1/13]

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B. Parental Fees

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10. Current Monthly Federal Poverty Guidelines and State Median Income for State Fiscal Year 2014 2015 is as follows:

|Family Size |100% Federal Poverty Guideline|130% Federal Poverty Guideline (FPG) FFY |85% State Median Income (SMI) FFY 2014 |

| |(FPG) FFY 2013 |2013 (State Minimum Income Limit) |(State and Federal Maximum Income Limit) |

|2 |$1293 |$1680 |$4067 |

|3 |$1628 |$2116 |$5024 |

|4 |$1963 |$2551 |$5981 |

|5 |$2298 |$2987 |$6937 |

|6 |$2633 |$3422 |$7894 |

|7 |$2968 |$3858 |$8074 |

|8 |$3303 |$4293 |$8253 |

|9 |$3638 |$4729 |$8433 |

|Each Additional |$335 |$436 |$172 |

|person | | | |

|Family Size |100% Federal Poverty Guideline|130% Federal Poverty Guideline (FPG) FFY |85% State Median Income (SMI) FFY 2015 |

| |(FPG) FFY 2014 |2014 (State Minimum Income Limit) |(State and Federal Maximum Income Limit) |

|2 |$1311 |$1704 |$4067 |

|3 |$1649 |$2144 |$5024 |

|4 |$1988 |$2584 |$5981 |

|5 |$2326 |$3024 |$6937 |

|6 |$2664 |$3463 |$7894 |

|7 |$3003 |$3903 |$8074 |

|8 |$3341 |$4343 |$8253 |

|9 |$3679 |$4783 |$8433 |

|Each Additional |$338 |$440 |See Below* |

|person | | | |

* To calculate the State Median Income For each additional family member above Nine persons, add three (3) percentage points to the percentage for a six-person family (132%) and multiply the new percentage by the State's estimated median income for a four-person family.

11. When all children in a family are in part-time care, the parental fee shall be assessed at fifty-five percent (55%) of the above-calculated fee. Part-time care is defined as an average of less than thirteen (13) full-time equivalent units of care per month.

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