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-