NEW Licensing Regulations effective September 30, 2010

New Licensing Regulations went into effect on

September 30, 2010

Click here to download the new Regulations.

ACCA COMMENTS ON THE DRAFT LICENSING REGULATIONS

Overall, the membership of ACCA wants to commend DHS for the draft revision to the child care regulations.   In the interest of time, I will not list all the positive clarifications, simplifications, unnecessary regulatory eliminations, and improvements for the health and safety of children. etc.  Please know that this major effort by DHS staff over the past many months is appreciated.  

Once the regulations are finalized, child care facilities would appreciate and benefit from a complete, readable version, with the statutes included.  Building on the meeting notes and the summary that noted items that changed you provided, a crosswalk that describes in more detail the change, and summarizes areas in which there are several changes (e.g. both the definitions and regulations) would be helpful. These items will help facilities remain in compliance with the changes and be aware items that were eliminated.  

Below is a list of items that still require further clarification, or change, or should not be included in the regulations and comments.  

P 30   ACCA supports and acknowledges the importance of the clarification of current law and practice contained in the clarified definition of “compensation”.  This will eliminate future confusion and continue important health and safety protections for children.

P  9  # 59  There are questions about the meaning of “immediate”  particularly as related to “without restriction” in several sections of the regulations ( e.g. p 34, p 37, etc.).  There have been issues with locked entrances, new surveyors who did not yet have their key code, a reasonable amount of time it might take to reasonable get from a desk to a door, etc that should be allowed and clarified.

P 10   # 61 Infestation – we suggest use of the phrase “presence of  lice, pinworms, or other parasites” in the appropriate section(s) and deletion of the word in definition.

P 26  We note that the elimination of the requirement for on site inspections is a significant new efficiency.

P 30  The late filing fee amounts  need to be reexamined. 

P 37 The dated attendance record could use the defined word “documentation”

P 39 Wanting to verify that the addition of “emergency” did not add another drill.

P 45-46 The elimination of the roster and its inherent problems is good.  After finalized, we request the department to develop a model or list of considerations that would be considered as acceptable documentation policies and procedures.

P 46 There are questions about why a licensee would be required to report to DHS suspected or alleged about or neglect that does not involve the center staff or facility, since it has already been reported to authorities.

P 47 and p. 81 There may be a way to further clarify the DHS and Counties’ roles in terms of inspections.

P 50 the term “business management” may interpreted too narrowly; it should include administration of early childhood services (e.g supervision).  Consider making it consistent with p 55 c.

P 52 Should make it clear if there is no previous employer  (ARS 36-883)

P 53 “Development expectation”  Concern when staff are needed to work in another facility and whether they would be required to know each child’s detailed  expectations or those important for health and safety. 

P 55 2.b. Typo? One too many “ more”

P 57 Confusion about C.1. b. use of term  “additional” staff member  

P 60 13 b. In addition to “original purpose” add “or safely for another purpose”

P 67 question – If a child falls asleep in a swing, staff should be required to remove the child in a reasonable amount of time. 

P 72  Questions about whether  3 minutes is sufficient time and whether 5 minutes would be better.

Wanting to verify that the nutrition standards requirements do not conflict with CACFP ( ie two different standards that could not be complied with)

P 81  #19 a. i. Want to ensure that there is no requirement for a “commercial” dishwasher.

P 86 Notification within 30 minutes is too short for a minor accident

P 93 B 5 Clarify that an placement in front of an “operating” air bag (some may be made inoperable. 

P 103 ACCA opposes the inclusion of the bicycle helmet requirement. We have no information about the frequency or severity incidents of head injuries in child care facilities, and are concerned about spread of lice, pinworms, or other parasites, and the cost.

Draft of New Licensing Regulations Available

Now is the time for everyone to take a very close look at the proposed changes to the licensing rules. Many areas have been clarified, several areas have been moved to other sections of the regulations, and some new items have been added. A work group, with significant representation from ACCA members, worked on this final draft. This is the last opportunity for everyone to provide “informal” comments directly to DHS. Comments are due by April 27, 2010. We would ask if you feel very strongly about any item that you let us at ACCA know also so we are aware of our members concerns. After April 27th, DHS will review the comments, perhaps make further comments based on these changes, and then issue a formal, legal notice of proposed rulemaking, hold public hearings, and ultimately present their final recommended changes to the Governor’s Regulatory Review Council for final approval. These regulations could be implemented by December, or even as early as October if the ACCA legislation, SB 1315 passes.

Click here to View The Draft Rules.   

Unless you have been following every step of the process and want to see how it evolved, I recommend printing the 7 page Summary of Changes – it explains what has changed. Then, you can work with the April 2010 draft (it contains all the changes). Note; words and sentences with lines through them are being stricken or moved. Words and sentences that are underlined reflect sections that have been moved or are new.

Update on Senate Bill 1315

SB 1315 – Senate Engrossed

SB 1315 contains statutory changes and session law affecting both Child Care Centers (ARS 36-882) and Child Care Group Homes (ARS 36-897.01).  Provisions include:

• Requires DHS to conduct a study of its costs to license child care and to identify specific costs for:  the licensing and certification process, inspections, complaints, enforcement, training, technical assistance, and consumer assistance.

• The study shall analyze how the costs are related to the type and size of the facility and identify any other related costs that are included in the licensure fees. 

• DHS shall consult with representatives of licensed facilities in conducting its study.

• The study shall assess the efficiency of the department’s regulation of facilities and develop recommendations to improve the efficiency and cost-effectiveness of its regulation without jeopardizing the health and safety of children.

• DHS shall submit a written report of the study findings and recommendations to the Governor and legislature by April 1, 2011.  We will change the date February 1, 2011.

• DHS shall adopt rules to streamline its health and safety regulations consistent with current law (36-883) by October 1, 2010.

• The revised rules are exempt from the formal rule making process for one year.

•  Based on the findings of its study and rules DHS shall adjust the fees if costs are significantly lower.

• DHS may refund or credit an overpayment.

• Instead of current 3 year license, licenses will be non-expiring but may still be revoked or suspended for cause or non-payment of fees.

• Changes the payment of licensing fees from every 3 years to annual payments.

PROBLEM – When converting from three year fees to annual fees, DHS states that there are insufficient funds for child care licensure for the next two years.  We may change the bill to allow DHS to convert to annual fees when funds are available and require the study to address transition issues

• Allows facilities to pay fees with installment payments based on procedures established by DHS.

• DHS shall review its actual costs to administer licensing at least every two years consistent with the current statutory requirement for regulation review.

CONCERN – Questions could be raised about the use of other funds to allow DHS  to reduce DHS fees.  We may add language that allow DHS to provide child care fee discounts

CHILD CARE LICENSING FEES AND SB 1315

BACKGROUND:  The State had not increased fees for many years.  Centers paid $150 fee for a 3 year license.  The Auditor General recommended a study of the impact of increasing fees with recommendations to the legislature.  The Governor proposed removing all General Fund from DHS licensure and in the third special session, HB 2013 gave the DHS the authority to raise fees.  In October, a proposed increase would have raised fees astronomically.  In response to public comments, DHS developed a program that tapped federal and other funds to reduce fees for participating facilities and offset their costs by up to 50% in total. 

DHS Fees as Originally Proposed, Revised, and with Empower Program

*Primarily Group Homes.  There are 2,734 facilities 441 providers pay $1,000 or $500; 689 providers pay $4,000 or $2,000; and 1,604 pay $7,880 or $3,900.  Late filing fees are 10% of the license fee.

PURPOSE OF THE CHILD CARE FEE BILL

1.  Require a time and cost study consistent with the Auditor General recommendations.

2.  Require revision and implementation of the health and safety regulations.

3.  Revise fees based on study and regulations and adjust fees previously paid.

4.  Change how and when fees are paid to simplify future revisions and adjustments.

SB 1315 will be scheduled to be heard in the Senate Healthcare and Medical Liability Reform Committee on Wednesday February 24^th. at 9:00 AM

SUMMARY OF SB 1315

SB 1315 contains statutory changes and session law affecting both Child Care Centers (ARS 36-882) and Child Care Group Homes (ARS 36-897.01).  Provisions include:

Requires DHS to conduct a study of its costs to license child care and to identify specific costs for:  the licensing and certification process, inspections, complaints, enforcement, training, technical assistance, and consumer assistance.

The study shall analyze how the costs are related to the type and size of the facility and identify any other related costs that are included in the licensure fees.

DHS shall consult with representatives of licensed facilities in conducting its study.

The study shall assess the efficiency of the department’s regulation of facilities and develop recommendations to improve the efficiency and cost-effectiveness of its regulation without jeopardizing the health and safety of children.

DHS shall submit a written report of the study findings and recommendations to the Governor and legislature by October 1, 2010.

DHS shall adopt rules to streamline its health and safety regulations consistent with current law (36-883) by October, 2010.

The revised rules are exempt from the formal rule making process for one year.

DHS shall adjust fees based on the findings of its study and rules adopted.

Changes the payment of licensing fees from every three years to annual payments.

Instead of current 3 year license, licenses will be non-expiring but may still be revoked or suspended for cause or non-payment of fees. (12 other states do not require reapplication).

Allows facilities to make installment payments for licensing fees.

DHS shall review its actual costs to administer licensing at least every two years.

If costs are lower than the fees collected, DHS shall refund the overpayment

POLICY ISSUES NOT ADDRESSED BY SB 1315

Child care facilities should not be required to “fully fund” licensure. No other state requires centers to fully fund.  Licensed facilities protect children, allow parents to work, prepare children for success in school, provide constructive after school care, and are important to the State’s economy.  DHS taps uncapped federal matching funds that allow licensed health care facilities to pay a third of the cost of licensure.

The fees are still too high. Arizona’s new fees are the highest in the country, based on a capacity of 100.  For centers with space for 60 or more children, DHS charges $3,900 (discounted).  A study published in 2009, found that 18 states do not charge any licensing fees. Of the 31 other states that do charge fees, only five states charged more than $500.

The use of other funds to offset fess should be made permanent These or other funds should be available on a permanent basis to continue the fee reductions.  There should be a mechanism to ensure that DHS utilizes other funds to offset child care facility fees for licensure by no less than 66%.   Also, the statutory requirement that 10% of the child care licensing fees should be paid to the General Fund should be reviewed.

Empower Pack