OCFS also believes that by implementing these regulations, it will allow social services districts to meet some of the expanding need for child care services by families imperiled by the economic depression, which will hopefully allow those families to maintain or gain much needed services, training or employment. To be effective and in order to best serve the families in the State that need child care services, OCFS must act quickly and without delay. Any delay in action may only exacerbate the financial crisis facing many families that need child care services in the State. Faced with this stark consequence, OCFS decided it had to act on an emergency basis, to get the needed child care services to those in the effected communities as soon as possible.

(xviii) veterans' assistance payments made to or on behalf of certain Vietnam veterans' natural adult or minor children for any disability resulting from spina bifida suffered by such children; [and]

(xix) veterans' assistance payments made for covered birth defects to or on behalf of the adult or minor children of women Vietnam veterans in service in the Republic of Vietnam during the period beginning on February 28, 1961 and ending on May 7, 1975. Covered birth defects means any birth defect identified by the Veterans' Administration as a birth defect that is associated with the service of women Vietnam veterans in the Republic of Vietnam during the period on February 28, 1961 and ending on May 7, 1975, and that has resulted or may result in permanent physical or mental disability[.]; and

A new subparagraph (c) of subparagraph (vii) of subparagraph (3) of paragraph (a) of section 415.2 of Title 18 is added to read as follows:

Subparagraph (1) of paragraph (j) of section 415.9 of Title 18 is amended and reads as follows:

(1) Effective [October 1, 2007] May 15, 2009, the following are the local market rates for each social services district set forth by the type of provider, the age of the child and the amount of time the child care services are provided per week.

Subparagraph (2) of paragraph (j) of section 415.9 of Title 18 is renumbered as subparagraph (3) and a new subparagraph (2) is added to read as follows:

Re-numbered subparagraph (3) of paragraph (j) of section 415.9 of Title 18 is amended and reads as follows:

[(2)] (3) The market rates are established in five groupings of social services districts. Except for districts noted as an exception in the market rate schedule, the rates established for a group apply to all districts in the designated group. The district groupings are as follows:

Group A: Nassau, Putnam, Rockland, Suffolk, Westchester

Group B: Columbia, Erie, Monroe, Onondaga, Ontario, Rensselaer, Saratoga, Schenectady, Tompkins, Warren

Group C: Allegany, Broome, Cattaraugus, Cayuga, Chautauqua, Chemung, Chenango, Clinton, Cortland, Delaware, Essex, Franklin, Fulton, Genesee, Greene, Hamilton, Herkimer, Jefferson, Lewis, Livingston, Madison, Montgomery, Niagara, Oneida, Orleans, Oswego, Otsego, Schoharie, Schuyler, Seneca, St. Lawrence, Steuben, Sullivan, Tioga, Washington, Wayne, Wyoming, Yates

Group D: Albany, Dutchess, Orange, Ulster

Group E: Bronx, Kings, New York, Queens, Richmond

GROUP A COUNTIES:

Nassau, Putnam, Rockland, Suffolk, and Westchester

DAY CARE CENTER

Age of Child

REGISTERED FAMILY DAY CARE

AGE OF CHILD

GROUP FAMILY DAY CARE

AGE OF CHILD

SCHOOL AGE CHILD CARE

AGE OF CHILD

LEGALLY-EXEMPT FAMILY CHILD CARE AND IN-HOME CHILD CARE STANDARD RATE

AGE OF CHILD

LEGALLY-EXEMPT FAMILY CHILD CARE AND IN-HOME CHILD CARE ENHANCED RATE

GROUP B COUNTIES:

Columbia, Erie, Monroe, Onondaga, Ontario, Rensselaer, Saratoga, Schenectady, Tompkins and Warren

DAY CARE CENTER

AGE OF CHILD

REGISTERED FAMILY DAY CARE

AGE OF CHILD

GROUP FAMILY DAY CARE

AGE OF CHILD

SCHOOL AGE CHILD CARE

AGE OF CHILD

LEGALLY-EXEMPT FAMILY CHILD CARE AND IN-HOME CHILD CARE STANDARD RATE

AGE OF CHILD

LEGALLY-EXEMPT FAMILY CHILD CARE AND IN-HOME CHILD CARE ENHANCED RATE

GROUP C COUNTIES:

Allegany, Broome, Cattaraugus, Cayuga, Chautauqua, Chemung, Chenango, Clinton, Cortland, Delaware, Essex, Franklin, Fulton, Genesee, Greene, Hamilton, Herkimer, Jefferson, Lewis, Livingston, Madison, Montgomery, Niagara, Oneida, Orleans, Oswego, Otsego, Schoharie, Schuyler, Seneca, St. Lawrence, Steuben, Sullivan, Tioga, Washington, Wayne, Wyoming, and Yates

DAY CARE CENTER

AGE OF CHILD

REGISTERED FAMILY DAY CARE

AGE OF CHILD

GROUP FAMILY DAY CARE

AGE OF CHILD

SCHOOL AGE CHILD CARE

AGE OF CHILD

LEGALLY-EXEMPT FAMILY CHILD CARE AND IN-HOME CHILD CARE STANDARD RATE

AGE OF CHILD

LEGALLY-EXEMPT FAMILY CHILD CARE AND IN-HOME CHILD CARE ENHANCED RATE

GROUP D COUNTIES:

Albany, Dutchess, Orange, and Ulster

DAY CARE CENTER

AGE OF CHILD

REGISTERED FAMILY DAY CARE

AGE OF CHILD

GROUP FAMILY DAY CARE

AGE OF CHILD

SCHOOL AGE CHILD CARE

AGE OF CHILD

LEGALLY-EXEMPT FAMILY CHILD CARE AND IN-HOME CHILD CARE STANDARD RATE

AGE OF CHILD

LEGALLY-EXEMPT FAMILY CHILD CARE AND IN-HOME CHILD CARE ENHANCED RATE

GROUP E COUNTIES:

Bronx, Kings, New York, Queens, and Richmond

DAY CARE CENTER

AGE OF CHILD

REGISTERED FAMILY DAY CARE

AGE OF CHILD

GROUP FAMILY DAY CARE

AGE OF CHILD

SCHOOL AGE CHILD CARE

AGE OF CHILD

LEGALLY-EXEMPT FAMILY CHILD CARE AND IN-HOME CHILD CARE STANDARD RATE

AGE OF CHILD

LEGALLY-EXEMPT FAMILY CHILD CARE AND IN-HOME CHILD CARE ENHANCED RATE

SPECIAL NEEDS CHILD CARE

The rate of payment for child care services provided to a child determined to have special needs is the actual cost of care up to the statewide limit of the highest weekly, daily, part-day or hourly market rate for child care services in the State, as applicable, based on the amount of time the child care services are provided per week regardless of the type of child care provider used or the age of the child.

The highest full time market rate in the State is:

1. Statutory authority:

Section 20(3)(d) of the Social Services Law (SSL) authorizes the Commissioner of the Office of Children and Family Services (Office) to establish rules, regulations and policies to carry out the Office's powers and duties under the SSL.

Section 34(3)(f) of SSL authorizes the Commissioner to establish regulations for the administration of public assistance and care within the State.

Section 410 of the SSL authorizes a social services official of a county, city or town to provide day care for children at public expense and authorizes the Office to establish criteria for when such day care is to be provided.

Title 5-C (sections 410-u through 410-z) of the SSL governs the New York State Child Care Block Grant (NYSCCBG). It includes provisions regarding the use of funds by local social services districts, the types of families eligible for services, the amount of local funds that must be spent on child care services, and reporting requirements. OCFS is required to specify certain NYSCCBG requirements in regulation. Section 410-w(1)(e) permits social services districts to provide child care subsidies to those families with incomes up to 200 percent of the state income standard that the social services district designates in its Child and Family Services Plan as eligible for child care assistance in accordance with criteria established by OCFS. Section 410-x(4) of the SSL requires the Office to establish, in regulation, the applicable market-related payment rate that will establish a ceiling for State and federal reimbursement for payments made under the NYSCCBG.

2. Legislative objectives:

The regulations support the legislative objectives underlying the child care subsidy programs to provide child care services to public assistance recipients and low income families when necessary to promote self-sufficiency and protect children. In addition, the regulations provide each social services district with greater local flexibility to provide child care services in the manner that best meets its needs during the current difficult fiscal times.

3. Needs and benefits:

The regulations address the federal requirement that one-time payments disbursed under the American Recovery and Reinvestment Act of 2009 (AARA) to recipients of Social Security, Supplemental Security Income (SSI), Railroad Retirement Benefits and Veterans Disability Compensation or Pension Benefits be excluded as income for determining eligibility for any programs in receipt of federal funds.

The changes also address the expanded need for child care services by families affected by the extensive loss of jobs and employment opportunities resulting from the significant economic downturns of the state and national economies. The regulations benefit needy families by providing social services districts with an additional option to provide child care services to low-income families where the caretaker(s) is displaced from work and is participating in a training program needed to obtain employment in a new field. Social services districts may choose to provide subsidies to these dislocated workers so that they can obtain safe and affordable child care while they are retrained in skills that will enable them to rejoin the workforce in new employment.

Additionally, some districts have indicated that, in these difficult economic times, more families could be served without a negative impact on family access to child care if the enhanced child care market rate for legally-exempt family and in-home child care providers was lowered. Currently, there are two child care market rates established for legally-exempt family and in-home child care providers. One, the enhanced market rate, based on a 75 percent differential applied to the child care market rates established for registered family day care. The 75 percent reflects an incentive to legally-exempt providers to pursue a minimum of ten hours of approved training. Two, the standard market rate, based on a 65 percent differential applied to the child care market rates established for registered family day care. The 65 percent applies to legally-exempt family and in-home child care providers that have not obtained ten hours of training annually.

These regulations establish the enhanced market rate for legally-exempt family and in-home providers at a 70 percent differential applied to the child care market rates established for registered family day care so that social services districts have an ability to serve more families. However, the regulations allow those social services districts that want to pay a higher enhanced market rate the option to pay up to 75 percent of the applicable registered family day care market rate: (i) for all legally-exempt family and in-home providers; (ii) for those providers who were receiving the enhanced rate on the date of the regulations but only for the remainder of their current one-year enrollment period; or (iii) for those providers who were receiving the enhanced rate on the date of the regulations for the remainder of the time they remain enrolled and continue to meet the ten hour annual training requirement.

Neither social services districts nor child care providers should have to hire additional professional staff to implement these regulations.

4. Cost:

It is not anticipated that these regulations will result in any additional costs to the State or social services districts. All the social services districts received their allocations for federal and State funds under the New York State Child Care Block Grant for State fiscal year 2009-10. These funds are available to each district and the district may choose to serve optional categories of eligible individuals with the funds allocated to them. Social services districts are required to provide child care services to the optional categories of low-income families only to the extent that they have funds available to provide such services. Some social services districts also received preliminary estimates of their allocations of the additional federal child care subsidy funds made available under AARA.

5. Local government mandates:

All social services districts must not consider the one-time federal AARA payment when considering whether a family is eligible for services. In addition, a social services district that chooses to provide child care services to dislocated workers and/or to pay an enhanced market rate for legally-exempt providers of family child care or in-home child care above 70 percent of the registered family child care rate will have to amend the child care portion of its Child and Family Services Plan. If a district does not choose to pay 75 percent of the registered family child care rate for legally-exempt providers that are currently receiving the enhanced market rate, the district must send a notice of the change in the payment rate to the families receiving services from such providers.

6. Paperwork:

A social services district that chooses to implement either of the new options provided under the regulations must submit an amendment to its Child and Family Services Plan. The Office has developed a template that a district may use if it chooses to amend its Plan.

7. Duplication:

The new requirements do not duplicate any existing State or federal requirements.

8. Alternatives:

The only alternative would be to not expand the delivery of child care services to needy families. This would adversely impact federal and State initiatives to support needy families affected by the recession and to stimulate the economy.

9. Federal standards:

The regulations are consistent with applicable federal regulations. The State remains in compliance with 45 CFR 98.43(a) and (b)(2) and (3) which require that the State establish payment rates that are sufficient to ensure equal access to comparable care received by unsubsidized families.

10. Compliance schedule:

These provisions must be implemented on the effective date of the regulations.

1. Effect on small businesses and local governments:

The exclusion of the one-time payment of $250 under the federal American Recovery and Reinvestment Act of 2009 (ARRA) to certain recipients for the determination of eligibility for social services programs, which receive federal funds, will not impact small businesses or local governments.

The expansion of categories of families that can be provided with child care subsidies would benefit employers including small businesses, as more families would be able to seek and accept employment. Also, local governments would benefit in the decreased dependence on temporary assistance as more families become or remain employed.

Legally-exempt family and in-home providers that have obtained ten hours of training and currently are receiving the enhanced rate of 75 percent of the registered family rate represent only a small fraction of legally-exempt providers caring for children whose families receive child care subsidies. These providers would be minimally impacted to the extent that a social services district does not select to continue to provide them with the enhanced rate of 75 percent of the registered family rate.

2. Compliance requirements:

All social services districts must not consider the one-time federal AARA payment when considering whether a family is eligible for services. In addition, a social services district that chooses to provide child care services to dislocated workers and/or to pay an enhanced market rate for legally-exempt providers of family child care or in-home child care above 70 percent of the registered family child care rate will have to amend the child care portion of its Child and Family Services Plan. The Office has developed a template that a district may use if it chooses to amend its Plan. If a district does not choose to pay 75 percent of the registered family child care rate for legally-exempt providers that are currently receiving the enhanced market rate, the district will need to send notice of the change in the payment rate to the families receiving services from such providers.

3. Professional services:

Neither social services districts nor legally-exempt family or in-home child care providers should have to hire additional professional staff in order to implement these regulations.

4. Compliance costs:

It is not anticipated that these regulations will result in any additional costs to the State or social services districts. All the social services districts received their allocations for federal and State funds under the New York State Child Care Block Grant for State fiscal year 2009-10. These funds are available to each district and the district may choose to serve optional categories of eligible individuals with the funds allocated to them. Social services districts are required to provide child care services to the optional categories of low-income families only to the extent that they have funds available to provide such services. Some social services districts also received preliminary estimates of their allocations of the additional federal child care subsidy funds made available under AARA.

5. Economic and technological feasibility:

The social services districts affected by the regulations have the economic and technological ability to comply with the regulations.

6. Minimizing adverse impact:

The regulations recognize that there may be differences in the needs among social services districts. To the extent allowed by statute, the regulations provide districts with flexibility in designing their child care subsidy programs in a manner that will best meet the needs of their communities.

7. Small business and local government participation:

The regulatory changes were discussed with a workgroup of local social services districts, including rural districts, for advice on potential impact.

1. Types and estimated numbers of rural areas:

The regulations will affect the 44 social services districts (districts) located in rural areas of the State and the child care providers located in those districts.

2. Reporting, recordkeeping, and other compliance requirements and professional services:

All social services districts must not consider the one-time federal AARA payment when considering whether a family is eligible for services. In addition, a social services district that chooses to provide child care services to dislocated workers and/or to pay an enhanced market rate for legally-exempt providers of family child care or in-home child care above 70 percent of the registered family child care rate will have to amend the child care portion of its Child and Family Services Plan. The Office has developed a template that a district may use if it chooses to amend its Plan. If a district does not choose to continue to pay 75 percent of the registered family child care rate for legally-exempt providers that are currently receiving the enhanced market rate, the district must send a notice of the change in the payment rate to the families receiving services from such providers.

Neither social services districts nor legally-exempt family or in-home child care providers should have to hire additional professional staff in order to implement these regulations.

3. Costs:

It is not anticipated that these regulations will result in any additional costs to the State or social services districts. All the social services districts received their allocations for federal and State funds under the New York State Child Care Block Grant for State fiscal year 2009-10. These funds are available to each district and the district may choose to serve optional categories of eligible individuals with the funds allocated to them. Social services districts are required to provide child care services to the optional categories of low-income families only to the extent that they have funds available to provide such services. Some social services districts also received preliminary estimates of their allocations of the additional federal child care subsidy funds made available under AARA.

4. Minimizing adverse impact:

The regulations recognize that there may be differences in the needs among social services districts. To the extent allowed by statute, the regulations provide districts with flexibility in designing their child care subsidy programs in a manner that will best meet the needs of their communities.

5. Rural area participation:

The regulatory changes were discussed with a workgroup of local social services districts, including rural districts, for advice on potential impact.

Section 201-a of the State Administrative Procedures Act requires a job impact statement to be filed if proposed regulations will have an adverse impact on jobs and employment opportunities in the State. A full job impact statement has not been prepared for these regulations, due to the fact that these amendments will not result in the loss or creation of any jobs.

These regulations will have a positive impact on jobs or employment opportunities. The regulations will improve the ability of low-income workers who have been displaced from the workforce to search for and be eligible for employment.