ARC 6309C

ARC 6309C

HUMAN SERVICES DEPARTMENT[441]

Adopted and Filed

Rule making related to child care assistance (CCA) programs

The Human Services Department hereby amends Chapter 170, "Child Care Services," Iowa Administrative Code.

Legal Authority for Rule Making

This rule making is adopted under the authority provided in Iowa Code section 234.6.

State or Federal Law Implemented

This rule making implements, in whole or in part, Iowa Code sections 234.6 and 237A.14.

Purpose and Summary

This rule making implements the new child care assistance (CCA) graduated eligibility phase-out program provided for in Iowa Code section 237A.14. This new program provides CCA for families with income above 225 percent of the federal poverty level (FPL) (current CCA Plus program) and up to 250 percent of the FPL. For families with special-needs children, the income level limit is 275 percent of the FPL.

This rule making revises the CCA family fee chart to update the annual FPL changes.

Public Comment and Changes to Rule Making

Notice of Intended Action for this rule making was published in the Iowa Administrative Bulletin on February 23, 2022, as ARC 6209C. No public comments were received. No changes from the Notice have been made.

Adoption of Rule Making

This rule making was adopted by the Council on Human Services on April 14, 2022.

Fiscal Impact

As a result of the new program, it is estimated that seven children will be added each month beginning July 1, 2022. The average cost per child for CCA Plus is estimated at $414 for state fiscal year (SFY) 2023. The resulting average number of children per month for each year as calculated in a regression chart and the annual costs are as follows. SFY 2023: 45.5 average number served × $414 × 12 = $226,044; SFY 2024: 129.5 average number served × $414 × 12 = $643,356. There is currently an estimated federal Child Care and Development Fund balance of $67.2 million at the end of SFY 2022. Based on current Department-estimated revenues and expenditures for child care, the cost for implementing the changes would be funded through SFY 2026 without increasing State general funds. This estimate is subject to change depending on the cost of additional child care policy changes that could be enacted.

Jobs Impact

After analysis and review of this rule making, no impact on jobs has been found.

Waivers

Any person who believes that the application of the discretionary provisions of this rule making would result in hardship or injustice to that person may petition the Department for a waiver of the discretionary provisions, if any, pursuant to rule 441—1.8(17A,217).

Review by Administrative Rules Review Committee

The Administrative Rules Review Committee, a bipartisan legislative committee which oversees rule making by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rule making at its regular monthly meeting or at a special meeting. The Committee's meetings are open to the public, and interested persons may be heard as provided in Iowa Code section 17A.8(6).

Effective Date

This rule making will become effective on July 1, 2022.

The following rule-making actions are adopted:

Item 1. Amend paragraph 170.2(1)"a" as follows:

a. Income limits.

(1)For initial eligibility, an applicant family's nonexempt gross monthly income as established in paragraph 170.2(1)"c" cannot exceed the amounts in this subparagraph.

1.145 percent of the federal poverty level applicable to the family size for children needing basic care; or

2.200 percent of the federal poverty level applicable to the family size for children needing special-needs care; or

3.85 percent of Iowa's median family income, if that figure is lower than the standard in numbered paragraph "1" or "2."

(2)For ongoing eligibility, at the time of a family's annual eligibility redetermination as described in subrule 170.3(5), if the family's nonexempt gross monthly income as established in paragraph 170.2(1)"c" cannot exceeds the amounts in subparagraph 170.2(1)"a"(1), the family may continue to be eligible as long as the family's nonexempt gross monthly income does not exceed the amounts in this subparagraph.

1.225 percent of the federal poverty level applicable to the family size for children needing basic care or special-needs care; or

2.85 percent of Iowa's median family income, if that figure is lower than the standard in numbered paragraph "1."

(3)For ongoing eligibility, at the time of a family's annual eligibility redetermination as described in subrule 170.3(5), if the family's nonexempt gross monthly income as established in paragraph 170.2(1)"c" exceeds the amounts in subparagraphs 170.2(1)"a"(1) and 170.2(1)"a"(2), the family may continue to be eligible as long as the family's nonexempt gross monthly income does not exceed the amounts in this subparagraph.

1.250 percent of the federal poverty level applicable to the family size for children needing basic care; or

2.275 percent of the federal poverty level applicable to the family size for children needing special-needs care.

Item 2. Amend subrule 170.4(2) as follows:

170.4(2) Fees. Fees for services received shall be charged to clients according to the schedules in this subrule, except that fees shall not be charged to clients receiving services without regard to income. The For families whose eligibility is established in subparagraphs 170.2(1)"a"(1) and 170.2(1)"a"(2), the fee is a per-unit charge that is applied to the child in the family who receives the largest number of units of service. The fee shall be charged for only one child in the family, regardless of how many children receive assistance. For families whose eligibility is established in subparagraph 170.2(1)"a"(3), the fee is a percentage of the cost of child care for each child in the family who receives service.

a. Sliding fee schedule.

(1)The For families whose eligibility is established in subparagraphs 170.2(1)"a"(1) and 170.2(1)"a"(2), the fee schedule shown in the following table is effective for eligibility determinations made on or after July 1, 2021 2022:

(2)To use the chart:

1.Find the family size used in determining income eligibility for service.

2.Move across the monthly income table to the column headed by that number.

3.Move down the column for the applicable family size to the highest figure that is equal to or less than the family's gross monthly income. Income at or above that amount (but less than the amount in the next row) corresponds to the fees in the last three columns of that row.

4.Choose the fee that corresponds to the number of children in the family who receive child care assistance.

(3)For families whose eligibility is established in subparagraph 170.2(1)"a"(3), the fee schedule shown in the following tables is effective for eligibility determinations made on or after July 1, 2022:

(4)To use the tables:

1.Determine which table to use for each child in the family by whether the child needs basic or special needs care.

2.Find the family size used in determining income eligibility for service.

3.Move across the monthly income table to the column headed by that number.

4.Move down the column for the applicable family size to the highest figure that is equal to or less than the family's gross monthly income. Income at or above that amount (but less than the amount in the next row) corresponds to the fee for that eligible child in the last column of that row.

5.Repeat for each eligible child in the family.

b. and c. No change.

Item 3. Amend paragraph 170.4(7)"a" as follows:

a. Rate of payment. The rate of payment for child care services, except for in-home care which shall be paid in accordance with 170.4(7)"d," shall be the actual rate charged by the provider for a private individual, not to exceed the maximum rates shown below. When a provider does not have a half-day rate in effect, a rate is established by dividing the provider's declared full-day rate by 2. When a provider has neither a half-day nor a full-day rate, a rate is established by multiplying the provider's declared hourly rate by 4.5. Payment shall not exceed the rate applicable to the provider type and age group as shown in the tables below. To be eligible for the special needs rate, the provider must submit documentation to the child's service worker that the child needing services has been assessed by a qualified professional and meets the definition for "child with special needs," and a description of the child's special needs, including, but not limited to, adaptive equipment, more careful supervision, or special staff training.

The following definitions apply in the use of the rate tables:

(1)"Licensed center" shall mean those providers as defined in 170.4(3)"a." "Child development home A/B" or "child development home C" shall mean those providers as defined in 170.4(3)"b." "Child care home (not registered)" shall mean those providers as defined in 441—Chapter 120.

(2)Under age group, "infant and toddler" shall mean age two weeks to three years; "preschool" shall mean three years to school age; "school age" shall mean a child in attendance in full-day or half-day classes.

(3)"No QRS Quality Rating" shall mean a provider who is not participating in the quality rating system does not have a current quality rating.

(4)A provider who is rated under the quality rating system shall be paid according to the corresponding QRS quality rating payment level in the tables above only during the period the rating is valid as defined in 441—Chapter 118. If the provider's QRS quality rating expires, the provider shall be paid according to the "No QRS Quality Rating" payment level. Programs whose quality rating has expired shall not receive backdated payments once a new rating is awarded.

(5)For a provider rated " QRS Quality Rating 1" through " QRS Quality Rating 4," if the rating period expires before a new QRS quality level is approved, the provider will be paid according to the "No QRS Quality Rating" payment level until the new QRS quality level is approved.

(6)For a provider rated " QRS Quality Rating 5," if a renewal application is received before the current rating period expires, the provider will continue to be paid according to the " QRS Quality Rating 5" payment level until a decision is made on the provider's application.

(7)" QRS Quality Rating 1 or 2" shall mean a provider who has achieved a rating of Level 1 or Level 2 under the quality rating system.

(8)" QRS Quality Rating 3 or 4" shall mean a provider who has achieved a rating of Level 3 or Level 4 under the quality rating system.

(9)" QRS Quality Rating 5" shall mean a provider who has achieved a rating of Level 5 under the quality rating system.

[Filed 4/14/22, effective 7/1/22]

[Published 5/4/22]

Editor's Note: For replacement pages for IAC, see IAC Supplement 5/4/22.