(1)(a) No later
than July 1, 2025, and at least every three years thereafter, the department, in
consultation with county departments and child care providers, shall develop the
calculation of provider rates with the goal of eventually ensuring the provider rates
more accurately reflect the cost of child care rather than families' ability to pay.
The department may contract for assistance in developing the calculation. The
calculation must account for the cost of quality care and may vary by age group,
region, and type of care. The department must ensure that the calculation of
provider rates complies with federal regulations and, if required by federal law,
must obtain approval before changing the calculation of or process for setting the
provider rates. Before adopting a chang
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(1) (a) No later
than July 1, 2025, and at least every three years thereafter, the department, in
consultation with county departments and child care providers, shall develop the
calculation of provider rates with the goal of eventually ensuring the provider rates
more accurately reflect the cost of child care rather than families' ability to pay.
The department may contract for assistance in developing the calculation. The
calculation must account for the cost of quality care and may vary by age group,
region, and type of care. The department must ensure that the calculation of
provider rates complies with federal regulations and, if required by federal law,
must obtain approval before changing the calculation of or process for setting the
provider rates. Before adopting a change to the provider rates or other payment
policies, the department, in consultation with the county departments and
providers, shall analyze the anticipated impact of the change to the Colorado child
care assistance program, including the impact on the costs of services and on the
families and providers that participate in CCCAP. The department shall include an
analysis completed pursuant to this subsection (1)(a) in the report described in
section 26.5-4-114.
(b) As soon as practicable following July 1, 2022, but no later than October 1,
2022, the executive director shall convene a working group of county departments
and providers to discuss provider rates and the provider rate calculation described
in subsection (1)(a) of this section.
(2) The department shall establish the provider rates based on the
calculation developed pursuant to subsection (1) of this section and shall update
the rates on a regular basis.
(3) The department shall include an explanation of the calculation of the
provider rates in the report on CCCAP required pursuant to section 26.5-4-114,
beginning with the report submitted on November 1, 2024, and in each subsequent
report.
(4) The department, working with early childhood councils as defined in
section 26.5-2-202, county departments, and local coordinating organizations as
defined in section 26.5-2-102 shall identify and recruit providers throughout the
state to participate in the child care assistance program. In identifying and
recruiting providers, the department and local coordinating organizations shall
establish a mixed delivery system of public and private providers in communities
throughout the state that enables parents to select CCCAP providers for their
children from as broad a range as possible within their respective communities.
(5) Starting July 1, 2025, the department shall create a pilot program for
unlicensed providers to seek license-exempt status and establishment as an
eligible CCCAP provider separate and distinct from the parent-initiated process.
The pilot program must operate in at least two counties, including one urban county
and one rural county. By June 30, 2027, the department shall evaluate the
outcomes of the pilot program on enrolled providers and child care capacity and
services in participating counties.