WSR 18-09-106

PROPOSED RULES

[Filed April 18, 2018, 9:51 a.m.]

Preproposal statement of inquiry was filed as WSR 17-20-108.

Title of Rule and Other Identifying Information: New WAC 170-290-0126 Electronic attendance records (for working connections child care (WCCC) and seasonal child care (SCC) programs).

Hearing Location(s): On May 22, 2018, at 3:00 p.m., at 1110 Jefferson Street S.E., Room 113, Olympia, WA. Comments can also be made online at https://del.wa.gov/PolicyProposalComment/Detail.aspx.

Date of Intended Adoption: May 31, 2018.

Submit Written Comments to: Rules Coordinator, P.O. Box 40970, email rules@del.wa.gov, fax 360-725-4925, by May 23, 2018.

Assistance for Persons with Disabilities: Contact rules coordinator, phone 360-725-4670, fax 360-725-4925, email rules@del.wa.gov, by May 18, 2018.

Purpose of the Proposal and Its Anticipated Effects, Including Any Changes in Existing Rules: Require providers who participate in WCCC and SCC programs to use department of early learning's (DEL) or a DEL-approved electronic attendance system to track when program-eligible children receive child care. The proposed rule also establishes attendance tracking requirements that other systems must comply with in order to be approved for use.

Reasons Supporting Proposal: WCCC and SCC programs, administered by DEL, help families with low incomes pay for child care while they work or meet WorkFirst participation requirements. Child care providers who participate in WCCC and SCC programs currently track children's attendance on paper forms and use these forms to invoice the state. Attendance tracking has become a confusing process for families, providers and the state that sometimes results in incorrect payments to providers. In response to state audits and federal directives to improve billing accuracy, DEL has developed an electronic attendance system that has been available for use since March 1, 2018. Child care providers use the system to sign program-eligible children in and out of care and those records are uploaded to the state when the user submits an invoice for payment. Requiring WCCC and SCC participating child care providers to use the system will reduce inaccurate billings, reduce overpayments that providers must repay, and reduce the time users and state employees spend tabulating hours for these programs.

Statutory Authority for Adoption: RCW 43.215.060 and 43.215.070.

Statute Being Implemented: RCW 43.215.130.

Name of Proponent: DEL, governmental.

Name of Agency Personnel Responsible for Drafting: Jason Ramynke, DEL, P.O. Box 40970, Olympia, WA 98504, 360-688-0911; Implementation and Enforcement: DEL/DSHS, statewide.

A cost-benefit analysis is not required under RCW 34.05.328. DEL is not among the agencies required to comply with RCW 34.05.328 (5)[(b)](i). Further, DEL does not voluntarily make that section applicable to the adoption of this rule.

1. Describe the proposed rule, including: A brief history of the issue; an explanation of why the proposed rule is needed; and a brief description of the probable compliance requirements and the kinds of professional services that a small business is likely to need in order to comply with the proposed rule.

WCCC and SCC programs, administered by DEL, help families with low incomes pay for child care while they work or meet WorkFirst participation requirements. Child care providers who participate in WCCC and SCC programs track children's attendance on paper forms and use these forms to invoice the state. Attendance tracking has become a confusing process for families, providers and the state and sometimes results in incorrect payments to providers. In response to state audits and federal directives regarding billing accuracy, DEL has launched an electronic attendance system that is expected to reduce billing and payment inaccuracies. In March 2018, child care providers began using the system to sign program-eligible children in and out of care and those records are uploaded to the state when the user submits an invoice for payment. By rule, DEL is making use of the electronic attendance system mandatory for WCCC and SCC payment beginning July 1, 2018.

Users' system requirements are an internet connection, a computer tablet, and a printer. DEL also recommends a computer for performing administrative tasks. Training is required before a provider may use the system. All training is provided by DEL at no cost to the user.

2. Identify which businesses are required to comply with the proposed rule using the North American Industry Classification System (NAICS) codes and what the minor cost thresholds are.

3. Analyze the probable cost of compliance. Identify the probable costs to comply with the proposed rule, including: Cost of equipment, supplies, labor, professional services and increased administrative costs; and whether compliance with the proposed rule will cause businesses to lose sales or revenue.

* Source: Walmart.com (one-time costs and paper). geoISP.com and broadbandnow.com (internet connection)

** CenturyLink's monthly rate. Internet service costs vary by provider and depend on whether the user bundles other utilities in the service package. Some providers may use their smart phone's mobile hot spot/tethering capability instead of an Internet subscription.

4. Analyze whether the proposed rule may impose more-than-minor costs on businesses in the industry. The one-time equipment costs do not impose more-than-minor costs on businesses in the industry. This statement is supplied since child care providers without access to an internet connection in the licensed child care space will incur the cost of an ongoing monthly internet connection. The minor cost threshold will likely be exceeded after twenty-two months of internet service by users who must bear all one-time costs and pay for internet service.

5. Determine whether the proposed rule may have a disproportionate impact on small businesses as compared to the ten percent of businesses that are the largest businesses required to comply with the proposed rule. The proposed rule impacts only small businesses.

6. If the proposed rule has a disproportionate impact on small businesses, identify the steps taken to reduce the costs of the rule on small businesses. If the costs cannot be reduced provide a clear explanation of why.

DEL is supporting users by providing training and staffing a help desk that provides online and telephone support. Training is offered in English, Spanish, and Somali and can be completed online, in-person at various locations around the state, or using a self-paced workbook. DEL began offering the two hour training on March 1, 2018, and is requiring existing providers to complete training by June 30, 2018.

DEL believes the electronic attendance system will reduce the time that users spend tabulating attendance hours for WCCC and SCC programs. DEL is supporting providers by giving them the option of using another electronic system instead of the DEL-supplied system. As of April 12 DEL had approved eighteen other systems already used by some providers.

DEL negotiated with SEIU 925 a $200 technology incentive that represented providers who participate in WCCC and SCC programs may apply to receive, which includes approximately one thousand four hundred family child care providers. The incentive is meant to offset equipment and/or internet costs for these small businesses that must bear the initial start-up costs.

7. Describe how small businesses were involved in the development of the proposed rule. Two years before mandating use of an electronic attendance system, DEL informed the impacted small businesses of its plan to do so. Those small business owners were invited to participate in the electronic system development. Once the system was developed, DEL worked to reduce negative impacts on these small businesses by assembling a group of one hundred system testers who received training in January and used the application to check children in and out of care during the month of February. Beginning March 1, 2018, DEL launched the application and encouraged anticipated users to begin using the system in advance of July 1, when it becomes mandatory.

8. Identify the estimated number of jobs that will be created or lost as the result of compliance with the proposed rule. Required use of the electronic attendance system will most likely not impact a licensee's hiring decision. Use of the system is expected to reduce the time users must spend on administrative functions.

A copy of the statement may be obtained by contacting Rules Coordinator, P.O. Box 40970, phone 360-725-4670, fax 360-725-4925, email rules@del.wa.gov.

April 18, 2018

Heather Moss

Director