Colorado § 26.5-4-109 - Provider rates - provider recruitment - provider.

§ 26.5-4-109. Provider rates - provider recruitment - provider.

(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 and county departments, shall identify and recruit providers throughout the state to participate in the child care assistance program. In identifying and recruiting providers, the department and early childhood councils 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.

Source: L. 2022: Entire article added with relocations, (HB 22-1295), ch. 123, p. 667, § 3, effective July 1. L. 2024: (5) added, (HB 24-1223), ch. 390, p. 2698, § 6, effective June 4. L. 2026: (4) amended, (SB 26-019), ch. 104, p. 424, § 15, effective May 5.

Editor's note: This section is similar to former § 26-2-803 as it existed prior to 2022.

Cross references: For the legislative declaration in HB 24-1223, see section 1 of chapter 390, Session Laws of Colorado 2024.