Colorado 2024 2024 Regular Session

Colorado House Bill HB1223 Amended / Bill

Filed 05/07/2024

                    Second Regular Session
Seventy-fourth General Assembly
STATE OF COLORADO
REVISED
This Version Includes All Amendments Adopted
on Second Reading in the Second House
LLS NO. 24-0503.01 Michael Dohr x4347
HOUSE BILL 24-1223
House Committees Senate Committees
Health & Human Services State, Veterans, & Military Affairs
Appropriations Appropriations
A BILL FOR AN ACT
C
ONCERNING THE IMPROVEMENT OF PROGRAMS THAT BENEFIT101
WORKING 
FAMILIES, AND, IN CONNECTION THEREWITH, MAKING102
AN APPROPRIATION.103
Bill Summary
(Note:  This summary applies to this bill as introduced and does
not reflect any amendments that may be subsequently adopted. If this bill
passes third reading in the house of introduction, a bill summary that
applies to the reengrossed version of this bill will be available at
http://leg.colorado.gov
.)
The bill overhauls the Colorado child care assistance program
(CCCAP). The bill simplifies the application process by:
! Creating a universal application;
! Limiting the application information to only what is
necessary to determine eligibility;
SENATE
2nd Reading Unamended
May 7, 2024
HOUSE
3rd Reading Unamended
May 3, 2024
HOUSE
Amended 2nd Reading
May 2, 2024
HOUSE SPONSORSHIP
Willford and Garcia, Amabile, Bacon, Bird, Boesenecker, Brown, Clifford, deGruy
Kennedy, Duran, English, Epps, Froelich, Hamrick, Hernandez, Herod, Jodeh, Joseph, Kipp,
Lieder, Lindsay, Lindstedt, Lukens, Marvin, Mauro, McCluskie, McCormick, Parenti,
Rutinel, Story, Valdez, Vigil, Young
SENATE SPONSORSHIP
Cutter and Michaelson Jenet,
Shading denotes HOUSE amendment.  Double underlining denotes SENATE amendment.
Capital letters or bold & italic numbers indicate new material to be added to existing law.
Dashes through the words or numbers indicate deletions from existing law. ! Prohibiting counties from adding additional eligibility
requirements; and
! When applying for redetermination, requiring the recipients
to provide only information that has changed.
The bill creates presumptive eligibility for 90 days when basic
federal requirements are met that are verified through self-attestation.
Income qualifications are changed to correspond with universal preschool
program requirements. A county may exclude state and federal assistance
program income eligibility guidelines in eligibility determinations.
An employee of a child care provider may apply to the CCCAP
and be granted full benefits for children from 6 weeks of age to 13 years
of age, regardless of the employee's income.
The bill directs that child care providers be paid based on
enrollment and not on attendance and be paid a weekly rate in advance.
Employers are permitted to cover copayments, and copayments are
limited to 7% of a family's income. The bill authorizes grants and
contracts for underserved populations.
The bill lists the crimes that disqualify a child care provider from
becoming qualified as license-exempt. Family child care home providers
are included as eligible providers.
A CCCAP recipient is required to engage in an eligible activity to
receive benefits. The bill includes substance use disorder treatment
programs, job training, and education activities as eligible activities.
The department of early childhood education (department) is
directed to evaluate the costs and benefits of a statewide reimbursement
process.
The bill directs the department to administer the child and adult
care food program (CACFP). A participant's eligibility for CACFP must
not be based on being qualified as exempt in CCCAP. The department
shall develop, implement, and oversee an alternative eligibility process
for participation in CACFP that is specifically tailored for license-exempt
family, friend, or neighbor providers.
Be it enacted by the General Assembly of the State of Colorado:1
SECTION 1.  Legislative declaration. (1)  The general assembly2
finds and declares that:3
(a)  Colorado has been committed to reducing the burdens placed4
on families seeking child care assistance and child care providers serving5
children through the Colorado child care assistance program;6
(b)  Currently, there are too many families who need child care and7
1223-2- do not have access, and this problem is especially acute for families in1
under-resourced neighborhoods;2
(c)  Federal funding from the American Rescue Plan Act infused3
an unprecedented amount of money into Colorado's child care system and4
created additional policy flexibility that provided stability and access for5
families across the state; and6
(d)  Administrative burdens serve as unnecessary hurdles for7
families to access the child care they need.8
(2)  Therefore, the general assembly determines it is necessary to:9
(a)  Make the recent policy changes made as a result of the10
American Rescue Plan Act permanent;11
(b)  Simplify the application process for applying for child care12
assistance;13
(c)  Authorize presumptive eligibility for child care assistance;14
(d)  Increase affordability of child care; and15
(e)  Improve payment practices to increase provider financial16
stability.17
SECTION 2. In Colorado Revised Statutes, 26.5-1-110, add (3)18
as follows:19
26.5-1-110.  Unified application - child care, services, and20
education. (3) A COUNTY DEPARTMENT SHALL NOT ADD ADDITIONAL21
REQUIRED ELIGIBILITY CRITERIA TO THE APPLICATION OR22
REDETERMINATION PROCESS .23
SECTION 3. In Colorado Revised Statutes, 26.5-4-103, amend24
(1); and add (1.5) and (3.5) as follows:25
26.5-4-103.  Definitions. As used in this part 1, unless the context26
otherwise requires:27
1223
-3- (1)  "Child care assistance program" or "CCCAP" means the public1
assistance program for child care known as the Colorado child care2
assistance program established in this part 1 "APPLICANT" MEANS AN3
INDIVIDUAL OR A FAMILY WHO SUBMITS AN APPLICATION TO THE4
C
OLORADO CHILD CARE ASSISTANCE PROGRAM .5
(1.5)  "C
HILD CARE ASSISTANCE PROGRAM " OR "CCCAP" MEANS6
THE PUBLIC ASSISTANCE PROGRAM FOR CHILD CARE KNOWN AS THE7
C
OLORADO CHILD CARE ASSISTANCE PROGRAM ESTABLISHED IN THIS PART8
1.9
(3.5) "CUSTOMER SERVICE" MEANS ACTIVITIES THAT PROVIDE10
ONE-ON-ONE SUPPORT FOR FAMILIES IN SUBMITTING APPLICATIONS AND11
NAVIGATING SERVICES, AND PROVIDING ACCESS TO TRANSPARENT AND12
EASY-TO-UNDERSTAND CONSUMER EDUCATION RESOURCES FOR THE13
COLORADO CHILD CARE ASSISTANCE PROGRAM .14
SECTION 4. In Colorado Revised Statutes, 26.5-4-106, amend15
(1)(b), (1)(c) introductory portion, (1)(c)(II) and (2)(a); and add (1)(d)16
and (6) as follows:17
26.5-4-106.  Applications for child care assistance -18
applications for child care employees - verification - award - not19
assignable - limitation - rules. (1) (b)  ON OR BEFORE AUGUST 1, 2026,20
AND SUBJECT TO AVAILABLE FEDERAL APPROPRIATIONS, the department21
rules may MUST provide for a simplified      application in order that SO22
child care assistance may be furnished to eligible persons as soon as23
possible and shall MUST provide adequate safeguards and controls to24
ensure that only eligible persons receive child care assistance under25
PURSUANT TO this part 1. THE DEPARTMENT AND A COUNTY DEPARTMENT26
SHALL PUBLICLY DISCLOSE OR PUBLICIZE INCOME ELIGIBILITY LEVELS BY27
1223
-4- INCOME PERCENTAGE AND BY MONTHLY INCOME FOR FAMILIES TO USE1
BEFORE APPLYING. The unified application that the department develops2
pursuant to section 26.5-1-110 must at some point include application for3
child care assistance through CCCAP.4
(c)  A person seeking child care assistance must SHALL submit an5
application in accordance with department rule, and the department shall6
ensure that the application is routed to the applicant's county of residence.7
An application for child care assistance must:8
(II)  Include the name, age, and residence of the applicant and a9
statement of the amount of property, both real and personal, in which the10
applicant has an interest and of all income the applicant may have at the11
time of the filing of the application THE APPLICANT'S CURRENT RESIDENCY12
AND NAME OF THE APPLICANT; THE AGE AND NAME OF THE CHILD OR13
CHILDREN FOR WHOM CARE IS REQUESTED ; LOW-INCOME ELIGIBLE14
ACTIVITY; INCOME;      INCAPACITATION, IF APPLICABLE; and such other15
information as may be required by department rule and THAT IS16
NECESSARY TO DETERMINE ELIGIBILITY . THE DEPARTMENT SHALL NOT17
REQUEST THAT THE APPLICANT PROVIDE IMMUNIZATION HISTORY, EXCEPT18
WHEN UTILIZING CHILD CARE THAT IS PROVIDED OUTSIDE OF THE CHILD'S19
HOME BY A NON -RELATIVE QUALIFIED LICENSE -EXEMPT PROVIDER.20
C
USTODY ARRANGEMENTS SHALL NOT BE INCLUDED ON THE APPLICATION21
OR OTHERWISE COLLECTED TO DETERMINE ELIGIBILITY FOR CCCAP. 
THE22
COUNTY DEPARTMENT MAY REQUEST, BUT SHALL NOT REQUIRE ,23
INFORMATION ON CHILD CARE PROVIDER SELECTION AT THE TIME OF24
APPLICATION.25
(d)  A
 COUNTY DEPARTMENT SHALL NOT ADD ADDITIONAL26 REQUIRED ELIGIBILITY CRITERIA TO THE APPLICATION OR27
1223
-5- REDETERMINATION PROCESSES .1
          2
(2) (a)  When a county department receives an application for child3
care assistance, it shall promptly make a record concerning the4
circumstances of the applicant to verify the facts supporting the5
application and shall examine all pertinent records. and shall make a6
diligent effort to examine all records prior to granting assistance. The7
county department shall also verify such ANY other information as may8
be required by department rule.9
          10
(6)  T
HE EXECUTIVE DIRECTOR SHALL PROMULGATE RULES FOR THE11
IMPLEMENTATION OF THIS SECTION.12
SECTION 5. In Colorado Revised Statutes, 26.5-4-107, amend13
(1) as follows:14
26.5-4-107.  Reconsideration and changes. (1)  A county15
department shall reconsider child care assistance awarded pursuant to this16
part 1 as frequently as and in the manner required by department rules.17
After such
 further verification and record as the county department may18
deem DEEMS necessary or department rules may require, the amount of19
child care assistance provided may be changed or child care assistance20
may be OR terminated, if the department or the county department finds21
that the recipient's circumstances have altered sufficiently to warrant such22
action or if changes in state or federal law have been made that would23
warrant such action. A
 COUNTY DEPARTMENT SHALL ONLY REQUIRE AND24
COLLECT ANY DOCUMENTATION THAT HAS CHANGED SINCE THE25
RECIPIENT'S MOST RECENT APPLICATION OR REDETERMINATION PROCESS26
AND THAT IS REQUIRED TO DETERMINE THE RECIPIENT 'S CONTINUED27
1223
-6- ELIGIBILITY.1
SECTION 6. In Colorado Revised Statutes, 26.5-4-109, add (5)2
as follows:3
26.5-4-109.  Provider rates - provider recruitment - provider.4
      (5) STARTING JULY 1, 2025, THE DEPARTMENT SHALL CREATE A PILOT5
PROGRAM FOR UNLICENSED PROVIDERS TO SEEK LICENSE-EXEMPT STATUS6
AND ESTABLISHMENT AS AN ELIGIBLE CCCAP PROVIDER SEPARATE AND7
DISTINCT FROM THE PARENT-INITIATED PROCESS. THE PILOT PROGRAM8
MUST OPERATE IN AT LEAST TWO COUNTIES, INCLUDING ONE URBAN9
COUNTY AND ONE RURAL COUNTY . BY JUNE 30, 2027, THE DEPARTMENT10
SHALL EVALUATE THE OUTCOMES OF THE PILOT PROGRAM ON ENROLLED11
PROVIDERS AND CHILD CARE CAPACITY AND SERVICES IN PARTICIPATING12
COUNTIES.13
SECTION 7. In Colorado Revised Statutes, 26.5-4-111, amend14
(1), (2)(a), (4)(a)(I), (4)(b), (4)(c), (7)(d), and (12)(a); and add (15) as15
follows:16
26.5-4-111.  Services - eligibility - assistance provided - waiting17
lists - rules - exceptions from cooperating with child support18
establishment. (1)  Subject to available appropriations and pursuant to19
department rules promulgated for the implementation of this part 1, a20
county shall provide child care assistance to a participant or any person21
or family whose income is not more than one hundred eighty-five percent22
of the federal poverty level. FOR PURPOSES OF DETERMINING OR23
REDETERMINING ELIGIBILITY FOR CHILD CARE ASSISTANCE, A COUNTY24
SHALL EXCLUDE FROM THE DEFINITION OF INCOME PAYMENTS MADE TO A25
FAMILY FROM ANY UNRESTRICTED CASH ASSISTANCE PROGRAM26
ADMINISTERED BY A GOVERNMENT, INTERMEDIARY, NONPROFIT, OR27
1223
-7- CORPORATE ENTITY. Subject to available appropriations and as necessary1
to comply with federal law or to align eligibility across early care and2
education programs specifically to meet the early care and education,3
income security, and child welfare needs of similar populations and as4
allowed by federal regulations, the executive director by rule may adjust5
the percentage of the federal poverty level used to determine child care6
assistance eligibility and shall revise income and verification7
requirements that promote alignment and simplification 
WITH THE8
C
OLORADO UNIVERSAL PRESCHOOL PROGRAM .9
(2) (a)  A county may provide child care assistance for any family10
whose income at initial determination exceeds the requirements of11
subsection (1) of this section but does not exceed the maximum federal12
level for eligibility for services of eighty-five percent of the state median13
income for a family of the same size if it is serving all eligible families14
who have applied for CCCAP and whose income level is below that15
requirement. A
 COUNTY SHALL EXCLUDE STATE AND FEDERAL ASSISTANCE16
PROGRAM INCOME IN ELIGIBILITY DETERMINATIONS .17
(4) (a) (I)  A recipient of child care assistance through CCCAP is18
responsible for paying a portion of the recipient's child care costs based19
upon the recipient's income and the formula developed by department20
rule. T
HE DEPARTMENT AND COUNTIES SHALL PROVIDE PARENT FEE21
INFORMATION IN A VARIETY OF DISSEMINATION METHODS SUCH AS22
WEBSITES, 
INCLUDING THE COLORADO SHINES WEBSITE, MASS MEDIA,23
PAPER FORMS AND BROCHURES , AND TARGETED OUTREACH . THE24
INFORMATION MUST INCLUDE A CLEAR DEFINITION OF THE PARENT FEE ;25
HOW PARENT FEES ARE CALCULATED ; PARENT FEE POLICIES, SUCH AS26
WHEN THEY MUST BE PAID; THE PARENT FEE AND SLIDING FEE SCALE; HOW27
1223
-8- PARENTS AND PROVIDERS WERE EN GAGED IN THE PROCESS FOR1
DETERMINING THE PARENT FEE AND SLIDING FEE SCALE	; AND A2
DESCRIPTION OF HOW PARENT FEES MIGHT DIFFER BASED ON THE PROVIDER3
THAT A FAMILY SELECTS . PARENT FEE SLIDING SCALES SHOULD BE4
PRESENTED IN A CLEAR, ACCESSIBLE FORMAT. THE INFORMATION MUST5
ALSO BE ACCESSIBLE IN LANGUAGES IN ADDITION TO ENGLISH AND6
S
PANISH, BASED ON THE POPULATIONS THE DEPARTMENT AND COUNTIES7
SERVE.8
(b)  The executive director by rule shall establish, and at least9
every five years review and revise, as appropriate, a copayment schedule10
so that the copayment gradually increases as the family income11
approaches self-sufficiency income levels, 
BUT MUST BE NO GREATER12
THAN SEVEN PERCENT OF THE FAMILY 'S GROSS MONTHLY INCOME 
ON OR13
BEFORE AUGUST 1, 2026, REGARDLESS OF THE NUMBER OF CHILDREN IN14
CARE, AS DETERMINED BASED ON ONE MONTH OF INCOME, UNLESS ONE15
MONTH OF INCOME DOES NOT PROVIDE AN ACCURATE INDICATION OF16
ANTICIPATED INCOME, IN WHICH CASE THE COUNTY MAY USE EVIDENCE OF17
UP TO THE MOST RECENT TWELVE MONTHS OF INCOME; HOWEVER, IF A18
FEDERAL RULE LIMITS COPAYMENTS TO LESS THAN SEVEN PERCENT OF THE19
FAMILY'S GROSS MONTHLY INCOME , THE DEPARTMENT SHALL20
IMMEDIATELY COMPLY WITH THE FEDERAL LIMIT . This revised copayment21
schedule should allow families to retain a portion of their increases in22
income.23
(c)  A participant who is employed shall pay a portion of the24
participant's income for child care assistance under CCCAP. The25
participant's required copayment pursuant to the provisions of this26
subsection (4)(c) must be IS determined by a formula established by27
1223
-9- department rule that takes into consideration the factors set forth in1
subsections (4)(a) and (4)(b) of this section. T
HE PARTICIPANT'S2
EMPLOYER MAY PAY THE PARTICIPANT 'S COPAYMENT AT THE3
PARTICIPANT'S COPAYMENT RATE.4
(7) (d)  Subject to available appropriations and
 Pursuant to5
department rules promulgated for the implementation of this part 1, a6
parent who is enrolled in a postsecondary education program or a7
workforce training program is eligible for CCCAP for at least any two8
years of the postsecondary education or workforce training program,9
provided all other CCCAP eligibility requirements are met during those10
two years. On and after July 1, 2023 JULY 1, 2024, a county may only NOT11
give priority for services to a working family over a family enrolled in12
postsecondary education or workforce training. if the county does not13
have sufficient funding and has received approval from the department14
before implementing the prioritization.15
(12)  Each county:16
(a)  Upon notification to counties by the department that the17
relevant case management systems, including the Colorado child care18
automated tracking system, are capable of accommodating this subsection19
(12)(a), and pursuant to department rules, ON OR BEFORE AUGUST 1, 2026,20
AND SUBJECT TO AVAILABLE FEDERAL APPROPRIATIONS, in addition to21
regular provider reimbursement rates, THE COUNTY DEPARTMENTS shall22
pay providers for care in alignment with common practices in the private23
market for child care, 
INCLUDING PAYING PROVIDERS 
WEEKLY FOR EACH24
CHILD BASED ON CHILD ENROLLMENT IN ADVANCE OF THE PROVISION OF25
SERVICES. The department rules governing payment policies must allow26
daily reimbursement rates only for drop-in child care, back-up child care,27
1223
-10- and care that is commonly paid on a daily reimbursement basis in the1
PRIVATE child care market and must incentivize providers to promote2
regular program attendance. ON OR BEFORE AUGUST 1, 2026, AND3
SUBJECT TO AVAILABLE FEDERAL APPROPRIATIONS , THE DEPARTMENT AND4
COUNTY DEPARTMENTS SHALL UTILIZE GRANTS AND CONTRACTS FOR5
UNDERSERVED POPULATIONS , INCLUDING CHILDREN IN UNDERSERVED6
GEOGRAPHIC AREAS, INFANTS AND TODDLERS , CHILDREN WITH7
DISABILITIES, AND FAMILIES NEEDING NONTRADITIONAL -HOUR CARE, TO8
IMPROVE EQUITABLE ACCESS FOR THESE POPULATIONS . THE DEPARTMENT9
SHALL ANNUALLY EVALUATE DATA REGARDING THE NUMBERS AND10
PERCENTAGES OF UNDERSERVED POPULATIONS BEING SERVED BY CCCAP11
TO DETERMINE IF EQUITABLE ACCESS IS IMPROVED OR ACHIEVED .       THE12
EXECUTIVE DIRECTOR SHALL PROMULGATE RULES FOR THE13
IMPLEMENTATION OF THIS SUBSECTION (12).14
(15)  A
N APPLICANT CAN SATISFY THE ELIGIBLE ACTIVITY CRITERIA15
FOR UP TO ONE YEAR BY PARTICIPATING IN A SUBSTANCE USE DISORDER16	TREATMENT. PARTICIPATION IN A NATIONALLY RECOGNIZED ,17
EVIDENCE-BASED SUBSTANCE USE DISORDER TREATMENT PROGRAM AT AN18
INTENSIVE OUTPATIENT SERVICE LEVEL OF CARE OR HIGHER MUST BE19
RECOGNIZED AS AN ELIGIBLE ACTIVITY FOR A WORKFORCE TRAINING20
PROGRAM.21
SECTION 8. In Colorado Revised Statutes, 26.5-4-115, amend22
(1)(a) as follows:23
26.5-4-115.  Performance contracts. (1) (a)  Each county, either24
acting singly or with a group of counties, shall enter into an annual25
performance contract with the department that identifies the county's or26
group of counties' and the department's duties and responsibilities in27
1223
-11- implementing the child care assistance program, INCLUDING QUALITY1
CUSTOMER SERVICE TO CLIENTS. The performance contract must include,2
but need not be limited to, requirements and provisions that address each3
party's duties and responsibilities to work in a collaborative manner to4
administer, financially support, and implement the child care assistance5
program using fair and objective criteria.6
     7
SECTION 9. In Colorado Revised Statutes, add 26.5-4-121 as8
follows:9
26.5-4-121. Child and adult care food program feasibility10
study. (1) THE DEPARTMENT, IN CONSULTATION WITH THE DEPARTMENT11
OF PUBLIC HEALTH AND ENVIRONMENT, SHALL CONDUCT OR CONTRACT12
FOR A STUDY TO DETERMINE THE FEASIBILITY OF DE-LINKING ELIGIBILITY13
FOR THE FEDERAL CHILD AND ADULT CARE FOOD PROGRAM FROM THE14
COLORADO CHILD CARE ASSISTANCE PROGRAM. THE STUDY MUST15
INCLUDE:16
(a) RESEARCH ON ALTERNATIVE ELIGIBILITY PROCESSES FOR17
PARTICIPATION IN THE FEDERAL CHILD AND ADULT CARE FOOD PROGRAM18
THAT IS SPECIFICALLY TAILORED FOR LICENSE-EXEMPT FAMILY, FRIEND,19
AND NEIGHBOR PROVIDERS, AS DESCRIBED IN SECTION 26.5-3-808; AND20
(b) GUIDELINES AND BEST PRACTICES FOR THE IMPLEMENTATION21
OF ALTERNATIVE ELIGIBILITY PROCESSES TO ENSURE ADEQUATE22
OVERSIGHT WITHOUT CREATING UNDUE ADMINISTRATIVE BURDENS FOR23
THE DEPARTMENT OR LICENSE-EXEMPT FAMILY, FRIEND, AND NEIGHBOR24
PROVIDERS, WHILE ENSURING THE NUTRITIONAL WELL-BEING OF CHILDREN25
IN THE PROVIDER'S CARE.26
SECTION 10. Appropriation. (1)  For the 2024-25 state fiscal27
1223
-12- year, $100,000 is appropriated to the department of early childhood for1
use by the community and family support division. This appropriation is2
from the general fund. To implement this act, the division may use this3
appropriation for the child and adult care food program study.4
SECTION 11. Safety clause. The general assembly finds,5
determines, and declares that this act is necessary for the immediate6
preservation of the public peace, health, or safety or for appropriations for7
the support and maintenance of the departments of the state and state8
institutions.9
1223
-13-