Second Regular Session Sixty-eighth General Assembly STATE OF COLORADO INTRODUCED LLS NO. 12-0633.02 Debbie Haskins x2045 SENATE BILL 12-138 SENATE SPONSORSHIP Lundberg, Renfroe, Harvey, Cadman, Lambert, Grantham, Scheffel, Mitchell, King K., Brophy, King S., Neville, Roberts HOUSE SPONSORSHIP (None), Senate Committees House Committees Health and Human Services A BILL FOR AN ACT Concerning the regulation of child care centers by the department of human services. 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://www.leg.state.co.us/billsummaries.) The bill eliminates references in the child care licensing statutes describing standards relating to quality care. The bill rewrites the legislative declaration to state that the primary goal of the regulation and licensing of child care facilities is to contribute to a safe and healthy environment for children and that the secondary goal is to preserve a range of affordable child care options. The bill eliminates the periodic review by the department of human services (state department) of child care licensing rules and regulatory scheme every 5 years. In place of the periodic review by the state department, the general assembly, acting by resolution, or the governor, acting by executive order, may initiate the review of child care center licensing rules and regulatory scheme by creating a committee of representative persons that shall report on its findings and recommendations. When adopting rules based on the federal department of defense standards for the department of defense quality child care standards pilot program for private child care facilities that provide child care to military families, the state department and the local public health agency shall ensure that the federal department of defense quality standards are in addition to the state standards for child care centers. The bill states that the statute on the pilot program should not be construed to give the state department the authority to use the federal department of defense quality standards as a model for standards for other child care centers licensed by the state department. Be it enacted by the General Assembly of the State of Colorado: SECTION 1. In Colorado Revised Statutes, amend 26-6-101.4 as follows: 26-6-101.4. Legislative declaration concerning the protections afforded by regulation. (1) The general assembly finds and declares that increasing numbers of children in Colorado are spending a significant portion of their day in care settings outside their own homes. In addition, some children are placed in facilities for residential care for their protection and well-being. The general assembly finds that the primary goal of the regulation and licensing of child care facilities is to contribute to a safe and healthy environment for children. The provision of such environment affords benefits to children, their families, their communities, and the larger society. (2) The general assembly acknowledges that there is a need to balance accessibility and quality of care when regulating child care facilities. The general assembly recognizes that the cost of regulatory compliance at child care centers is passed on to parents and that excessive regulatory burdens can lead to fewer affordable child care options. Therefore, the general assembly finds that the secondary goal of the regulation and licensing of child care facilities is to preserve a range of affordable child care options. It is the intent of the general assembly that those who regulate and those who are regulated work together to meet the needs of the children, their families, and the child care industry. (2) (3) In balancing the needs of children and their families with the needs of the child care industry, the general assembly also recognizes the financial demands with which the department of human services is faced in its attempt to ensure a safe and sanitary environment for those children of the state of Colorado who are in child care facilities. In an effort to reduce the risk to children outside their homes while recognizing the financial constraints placed upon the department, it is the intent of the general assembly that the limited resources available be focused primarily on those child care facilities that have demonstrated that children in their care may be at higher risk pursuant to section 26-6-107. SECTION 2. In Colorado Revised Statutes, amend 26-6-113 as follows: 26-6-113. Review of licensing regulations and procedures - legislative declaration. (1) The general assembly finds that changes in demographics and economic trends in Colorado have increased the need for high quality safe and affordable child care. The general assembly also recognizes that the provision of child care in this state and in the nation is a rapidly growing industry subject to many changes. The general assembly further finds that there is a need for continuing comprehensive any review of the rules and regulations and the licensing procedures governing child care centers, family child care homes, and foster care homes that includes should include the adequate and full participation of parents, consumers, child care providers, and interested persons. The general assembly finds that such a review with the goal of identifying problems in the fragmentation and lack of uniformity of standards in the licensing process would benefit the state and result in improvements in the regulation of this industry that is so vital to the health and well-being of the state's children and citizens. The general assembly finds that such review should not be initiated and conducted by the state department but instead should be done by a broader group of stakeholders and at the direction of the governor or the general assembly. (2) Beginning with fiscal year 1995-1996, an initial comprehensive rule and regulation review shall be conducted in conjunction with the performance audit required by section 26-6-107 (1.5), and, at least every fifth fiscal year thereafter The general assembly, acting by resolution, or the governor, by executive order, may initiate a comprehensive review of the licensing rules and regulations for child care centers, family child care homes, and foster care homes and the procedures relating to and governing child care centers, family child care homes, and foster care homes shall be conducted by the department, including procedures for the review of backgrounds of employees and owners. In conducting such periodic review, When initiating such a review, the governor, acting by executive order, or the general assembly, acting by resolution, shall create a committee including, but not limited to, representatives of the state department, parents, child care providers, and representatives of the department of public health and environment to conduct the review. The department committee shall consult with solicit input from parents and consumers of child care, child care providers, the department of public health and environment, experts in the child care field, and other interested parties throughout the state. The periodic Any review shall include an examination of the rules and regulations applicable to child care centers, family child care homes, and foster care homes, the process of licensing such facilities, uniformity of standards or lack thereof in the licensing process, statewide standardization of investigations and enforcement of licensing by the department, duplication and conflicts in regulations, requirements, or procedures between the department and the department of public health and environment, and recommendations for streamlining and unifying the licensing process. Said review shall also include an examination of regulations and procedures regarding the general physical and mental health of employees and owners. At the conclusion of each any review, the department committee shall report its findings and conclusions and its recommendations for administrative changes and for legislation to the governor, the health and human services committee of the senate, or its successor committee, the health and environment committee of the house of representatives, or its successor committee, the state department, the state board, the advisory committee on licensing of child care facilities, and the executive director of the department of public health and environment. SECTION 3. In Colorado Revised Statutes, 26-6-114, amend (5) as follows: 26-6-114. Civil penalties - fines - child care cash fund - created. (5) The fines collected pursuant to this section, section 26-6-108 (2) and (2.7), and section 26-6-108.5 (1) (c) shall be transmitted to the state treasurer, who shall credit the same to the child care cash fund, which fund is hereby created in the state treasury. All interest derived from the deposit and investment of moneys in the fund shall be credited to the fund. At the end of any fiscal year, all unexpended and unencumbered moneys in the fund shall remain therein and shall not be credited or transferred to the general fund or any other fund. Moneys in the child care cash fund are hereby continuously appropriated to the department to fund activities related to the improvement of the quality of protecting the health and safety of children and preserving affordable child care options in the state of Colorado. SECTION 4. In Colorado Revised Statutes, amend 26-6-116 as follows: 26-6-116. Child care resource and referral system - created. (1) The state department shall design and develop a child care resource and referral system, referred to in this section as the "system", to assist in promoting the availability, accessibility, and quality affordability, and safety of child care services in Colorado. The executive director, or his or her designee, shall have the authority, within available appropriations, to designate a public or private entity that shall be responsible for the administration of the system, and may enter into a contract with the administering entity for such purpose. The executive director shall designate or redesignate such administering entity on a biennial basis. (2) The state department shall report to the members of the health and human services committees committee of the senate, or any successor committee, and the health and environment committee of the house of representatives, of the general assembly, or any successor committees committee, concerning the child care resource and referral system by December 1, 2001, and by each December 1 thereafter. The report shall specify, at a minimum, the entity that the state department has currently designated to administer the system and the qualifications of that entity to serve in such capacity, the types of services that are being provided pursuant to the system, the numbers and types of persons receiving such services, and the cost associated with the system. SECTION 5. In Colorado Revised Statutes, 26-6-604, amend (2) and (6) as follows: 26-6-604. Department of defense quality child care standards pilot program - creation - program scope - reporting requirements - rules. (2) Pilot sites may apply to the state department to be considered for inclusion in the program. The state department, with input from the local public health agency, local county resource and referral agencies, and early childhood councils of impacted counties, shall designate pilot site facilities to serve military families. Designation of pilot sites shall be dependent upon funding from the federal department of defense as child care stipends to military families and funding of the pilot site licensing unit through fees collected pursuant to subsection (7) of this section. The designated child care facilities shall provide child care to military families, provided the facility meets the quality child care standards established by the federal department of defense as incorporated in rules adopted by rule of the state department. (6) (a) On or before June 30, 2012, the state department and the local public health agency shall promulgate rules for the implementation of this part 6. The rules shall include, at a minimum: (a) (I) Pilot site compliance with department of defense quality child care standards; (b) (II) A requirement for compliance with existing state and federal regulations; and (c) (III) A procedure to establish a fee for and charge pilot site facilities for any additional inspections and services required to implement the enhanced department of defense quality child care standards. (b) In adopting rules, the state department and the local public health agency shall ensure that the quality standards of the federal department of defense are in addition to the state standards for child care centers. This section should not be construed to give the state department the authority to use the quality standards of the federal department of defense as a model for child care centers licensed under part 1 of this article. SECTION 6. Act subject to petition - effective date. This act takes effect at 12:01 a.m. on the day following the expiration of the ninety-day period after final adjournment of the general assembly (August 8, 2012, if adjournment sine die is on May 9, 2012); except that, if a referendum petition is filed pursuant to section 1 (3) of article V of the state constitution against this act or an item, section, or part of this act within such period, then the act, item, section, or part will not take effect unless approved by the people at the general election to be held in November 2012 and, in such case, will take effect on the date of the official declaration of the vote thereon by the governor.