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