CABINET FOR HEALTH AND FAMILY SERVICES

Department for Community Based Services

Division of Child Care

(Amendment)

 

      922 KAR 2:170. STARS for KIDS NOW Program for Type I licensed child-care [child care] centers.

 

      RELATES TO: KRS Chapter 13B [13B.125], 199.8941, 199.8943, 199.896(4), 199.8992, 42 U.S.C. 601-619, 45 C.F.R. 98

      STATUTORY AUTHORITY: KRS 194A.050(1), 199.8941(1), 199.8943(2)

      NECESSITY, FUNCTION, AND CONFORMITY KRS 194A.050(1) requires the Secretary of the Cabinet for Health and Family Services to promulgate administrative regulations necessary under applicable state laws to protect, develop, and maintain the health, personal dignity, integrity, and sufficiency of the individual citizens of the Commonwealth. KRS 199.8943(2) requires the Cabinet for Family and Health Services to promulgate an administrative regulation that implements a voluntary quality-based graduated child care rating system for licensed child care centers; agency time frames for review of quality ratings; an appeals process under KRS Chapter 13B; and a process for the reevaluation of quality ratings. KRS 199.8941(1) requires the Early Childhood Development Authority to develop a program of monetary incentives tied to participation in a quality rating system. This administrative regulation establishes criteria for implementation of the voluntary quality rating system for Type I licensed childcare centers, and establishes the amount of each monetary incentive awarded to a participant in the STARS for KIDS NOW Program.

 

      Section 1. Definitions. "Anniversary date" means the approval date on a STARS for KIDS NOW quality rating certificate.

      (2)[(1)] "Commonwealth Child Care Credential" means a certificate of completion of sixty (60) clock hours of instruction from a state agency-approved organization in accordance with 922 KAR 2:250.

      (3)[(2)] "Environment assessment" [rating scale"] means one (1) of four (4) rating scales designed to assess the process quality in an early childhood or school age care group, and consists of the following items to evaluate:

      (a) Physical environment;

      (b) Basic care;

      (c) Curriculum;

      (d) Interaction;

      (e) Schedule and program structure; and

      (f) Parent and staff education.

      (4)[(3)] "Infant" means a child who is less than twelve (12) months of age.

      (5)[(4)] "Parental or family participation" means [involvement of a parent or custodian in] a child care program’s provision of [attempt to provide] information or inclusion of a [include the] parent or caregiver in the program’s activities, such as:

      (a) Distribution of a newsletter;

      (b) Distribution of a program calendar;

      (c) A conference between a child care program’s staff and a parent or caregiver; or

      (d) Any other activity designed to engage a parent or caregiver in the program’s activities.

      (6)[(5)] "Preschool" means a child who is older than twenty-four (24) months and younger than school age.

      (7)[(6)] "STARS for KIDS NOW Program" or "STARS" means the voluntary quality-based graduated child care rating system established by KRS 199.8943(1).

      (8)[(7)] "School-age" means a child attending kindergarten, elementary, or secondary education.

      (9)[(8)] "Substitute" means a person employed by a Type I [licensed child care] center for a period not to exceed fourteen (14) days in a one (1) year period.

      (10)[(9)] "Toddler" means a child between the age of twelve (12) and twenty-four (24) months.

      (11)[(10)] "Type I child-care center" means a child care center licensed to regularly provide child care services for: [by the cabinet or its designee in accordance with 922 KAR 2:090, 2:110, and 2:120 to:]

      (a) [Care for] Four (4) or more children in a nonresidential setting [facility other than a residence]; or

      (b) [Provide child care for] Thirteen (13) or more children in a designated space separate from the primary residence of a licensee [the center's residence].

 

      Section 2. Application. (1) A Type I [licensed child care] center may:

      (a) Apply to participate in STARS after six (6) months from the date of initial licensure; and

      (b) Achieve a quality rating certificate of Level 1 through Level 4.

      (2) If an applicant seeks participation in STARS as a Level 1 quality rating certificate:

      (a) The applicant shall complete a:

      1. "DCC-400, Level 1 Rating Certificate Application"; and

      2. "DCC-401, STARS for KIDS NOW-Level 1 Standards Check List"; and

      (b) The cabinet or its designee shall verify on the DCC-401 the center's documented compliance with the Level 1 requirements described in Section 3 of this administrative regulation.

      (3) If an applicant seeks a Level 2, 3, or 4 quality rating certificate, the:

      (a) Applicant shall complete a ["DCC-400], DCC-401, and DCC-405, STARS for KIDS NOW Rating Visit Request Form["]; and

      (b) Cabinet or its designee:

      1. Shall contact the applicant within fifteen (15) working days to schedule a STARS rating visit, upon receipt of a completed DCC-401 and DCC-405;

      2. And the applicant shall agree to a two (2) week time period in which the STARS rating visit will occur; and

      3. Shall issue to an approved applicant, within sixty (60) calendar days from the date of the STARS rating visit, a quality rating certificate that shall:

      a. Be valid for a period specified in Section 11[8](3) of this administrative regulation; and

      b. Specify the rating level approved for the center.

      (4) For the purpose of redetermining a center’s quality rating certificate, a participant in the STARS program may request, at least six (6) months after issuance of a quality rating certificate, another rating visit.

      (5) An environment assessment [rating scale] shall be completed during each rating visit for one-third (1/3) of the total number of classrooms, including at least one (1) classroom for each of the following age groups for which the center provides care:

      (a) Infant;

      (b) Toddler;

      (c) Preschool; and

      (d) School age.

      (6) A center applying for or participating in the STARS program shall:

      (a) Not have an immediate closure, denial of relicensure, or recertification, suspension, or revocation action against the center's license; and

      (b) Pay any civil penalty levied against the center if the:

      1. Center has waived the right to appeal a civil penalty; or

      2. Civil penalty has been upheld on appeal.

 

      Section 3. Level 1 Quality Rating Certificate Requirements. (1) A Type I center:

      (a) Shall not be allowed to participate as a Level 1 child care center for more than a two (2) year period; and

      (b) May reapply for participation six (6) months after expiration of the Level 1 quality rating certificate.

      (2) A center participating in the STARS Program and holding a Level 1 quality rating certificate shall:

      (a) Post prominently in each classroom, and maintain compliance with, the:

      1. Minimum staff-to-child ratios and group size established in 922 KAR 2:120, Section 2[1];

      2. Planned program of activities; and

      3. Daily schedule;

      (b) Comply with the staff requirements set forth in 922 KAR 2:110, Section 5[3];

      (c) Ensure that the center’s director or an individual with decision-making authority such as the owner, board chair, or minister, attends an overview of STARS prior to program participation;

      (d) Complete an assessment in which at least one (1) environment assessment [rating scale] shall be used to observe each age group described in Section 2(5) of this administrative regulation, under the following conditions:

      1. Each assessment shall be conducted by the center’s director with assistance from the cabinet or its designee, if requested, within the first twelve (12) months of participation in STARS;

      2. A Level 1 quality rating certificate shall not require a center’s achievement of a specific score on the environment assessment [rating scale]; and

      3. Upon completion of the environment rating scale by the center’s director during the second year of certification at a Level 1 quality rating, the director shall develop a written plan, with assistance from the cabinet or its designee, if requested, for improved performance in each area identified by the environment assessment [rating scale] as needing improvement;

      (e) Coordinate at least one (1) annual activity involving parental or family participation;

      (f) Implement an annual plan for professional development for each employee, including the licensee;

      (g) Ensure that the individual who attended the overview described in subsection (2)(c) of this section provides, to each employee who has direct supervisory authority over a child, training regarding the:

      1. Licensure requirements in:

      a. 922 KAR 2:090, Child care center licensure;

      b. 922 KAR 2:110, Child care facility provider requirements; and

      c. 922 KAR 2:120, Child care facility health and safety standards;

      2. Requirements for participation in the STARS Program;

      3. Environment assessment [rating scale]; and

      4. Early Childhood Development Scholarship Program; and

      (h) Comply with the requirements of 922 KAR 2:160, Child Care Assistance Program (CCAP).

 

      Section 4. Level 2 Quality Rating Certificate Requirements. A licensed child care center participating in STARS and holding a Level 2 quality rating certificate shall:

      (1) Meet the requirements of Sections 2(3) and 3(2)(a)[2 and 3], (b), (c), and (f) through (h) of this administrative regulation;

      (2) Have in each classroom a roster that specifies the first and last name of:

      (a) The room's teacher or employee with supervisory authority over a child; and

      (b) Each child enrolled in the center and cared for in that room;

      (3) Coordinate at least two (2) annual activities that involve parental or family participation;

      (4) Provide documentation of a written plan for parental or family involvement;

      (5) Achieve an overall average score of at least three (3) on the environment assessment [rating scale] portion of the STARS rating visit, calculated based upon the total number of environment assessments [rating scales] conducted during the quality rating visit;

      (6) If the center achieves an overall average score of three (3) on the environment assessment [rating scale], develop a written plan, with assistance from the cabinet or its designee, if requested, for improved performance on subsequent environment assessments [rating scales];

      (7) Achieve and maintain an overall average score of at least four (4) on the environment assessments [rating scales] by the fourth year of certification at a Level 2 quality rating;

      (8) Review and sign the "DCC-402, STARS for KIDS NOW-Level 2 Standards Checklist" during the STARS rating visit;

      (9) Comply with the provisions of:

      (a) 11 KAR 16:040, Early Childhood Development Scholarship Program recordkeeping requirements; and

      (b) 11 KAR 16:060, Early Childhood Development Scholarship Program system of monetary incentives;

      (10) Ensure that each employee or substitute who has direct supervisory authority over a child[:

      (a)] receives fifteen (15) [three (3)] clock hours annually of early care and education training approved by the cabinet or its designee; [annually, beyond the twelve (12) hour requirement specified in 922 KAR 2:110;

      (b) Has completed the Commonwealth Child Care Credential;

      (c) Has a Child Development Associate’s Credential;

      (d) Has a Montessori Certificate; or

      (e) Has an associate or higher level of education in:

      1. Interdisciplinary early childhood education;

      2. Early childhood special education;

      3. Early childhood education;

      4. Early childhood development;

      5. Elementary education for teaching kindergarten through fourth grade, if the employee cares for school-age children; or

      6. A related degree approved by the Early Childhood Development Authority;]

      (11) Ensure that the center’s director, or the person responsible for the on-site operation of the center, [as required by 922 KAR 2:110:

      (a)] receives eighteen (18) [six (6)] clock hours annually of early care and education training approved by the cabinet or its designee; and [annually, beyond the twelve (12) hour requirement specified in 922 KAR 2:110;

      (b) Has completed the Director’s Credential or an equivalent credential approved by the Early Childhood Development Authority;

      (c) Has a Child Development Associate’s Credential;

      (d) Has a Montessori Certificate; or

      (e) Has an associate degree or higher level of education in:

      1. Interdisciplinary early childhood education;

      2. Early childhood special education;

      3. Early childhood education;

      4. Early childhood development;

      5. Elementary education for teaching kindergarten through fourth grade, if the director works primarily with school-age children; or

      6. A related degree approved by the Early Childhood Development Authority; and]

      (12) Provide documentation demonstrating that standardized personnel evaluations are conducted annually.

 

      Section 5. Level 3 Quality Rating Certificate Requirements. A licensed child care center participating in STARS and holding a Level 3 quality rating certificate shall:

      (1) Post prominently in each classroom and maintain the following staff-to-child ratios and group size:

 

Age

Ratio

Group Size

Birth - 1 year

1 staff for 4 children

8

1 to 2 years

1 staff for 5 children

10

2 to 3 years

1 staff for 8 children

16

3 to 4 years

1 staff for 11 children

22

4 to 6 years

1 staff for 12 children

24

6 to 12 years

1 staff for 14 children

28

 

      (2) Meet the requirements of Sections 2(3) and 3(2)(a)2 and 3, (b), (c) and (f) through (h) of this administrative regulation;

      (3) Coordinate at least three (3) annual activities involving parental or family participation;

      (4) Document a procedure for use of parental or family feedback;

      (5) Achieve an overall average score of at least four point five (4.5) on the environment assessment [rating scale] portion of the STARS rating visit;

      (6) Review and sign the "DCC-403, STARS for KIDS NOW-Level 3 Standards Checklist" during the STARS rating visit;

      (7)(a) Meet the requirements of Section 4(2), (4), (9), (10), [(11)(b), (c), (d), or (e),] and (12) of this administrative regulation; and

      (b) Ensure that at least fifty (50) percent of staff, including substitutes, who have direct supervisory authority over a child have completed one (1) of the following:

      1. A [Completed the] Commonwealth Child Care Credential; [or]

      2. A Child Development Associate’s Credential; [Obtained a higher level of education as described in Section 4(10)(c), (d), or (e) of this administrative regulation;]

      3. A Montessori Certificate; or

      4. An associate or higher level of education in:

      a. Interdisciplinary early childhood education;

      b. Early childhood special education;

      c. Early childhood education;

      d. Early childhood development;

      e. Elementary education for teaching kindergarten through fourth grade, if the employee cares for school-age children; or

      f. A related degree approved by the Early Childhood Development Authority;

      (8) Ensure that at least fifty (50) percent of staff who have direct supervisory authority over a child are certified in infant and child:

      (a) Cardiopulmonary resuscitation; and

      (b) First aid;

      (9) Ensure that the center’s director, or the person responsible for the on-site operation of the center;[,]

      (a) Annually receives twenty-four (24) [twelve (12)] clock hours of early care and education training approved by the cabinet or its designee [annually, beyond the twelve (12) hour requirement specified in 922 KAR 2:110]; and

      (b) Has one (1) of the following:

      1. A Child Development Associate's Credential;

      2. A Director’s Credential or an equivalent credential approved by the Early Childhood Development Authority;

      3. A Montessori Certificate; or

      4. An associate degree or higher level of education in:

      a. Interdisciplinary early childhood education;

      b. Early childhood special education;

      c. Early childhood education;

      d. Early childhood development;

      e. Elementary education for teaching kindergarten through fourth grade, if the director works primarily with school-age children; or

      f. A related degree approved by the Early Childhood Development Authority;

      (10) Ensure that one (1) of the following is present in the center at least seventy-five (75) percent of the center’s daily hours of operation:

      (a) The center's director;

      (b) A person responsible for the center's operation;

      (c) An employee qualified as a child development associate; or

      (d) An employee with a higher level of education, as described in subsection (7)(b)3 or 4 [Section 4(10)(d) or (e)] of this section [administrative regulation];

      (11) Provide at least six (6) days paid leave per year to each employee who:

      (a) Works at least thirty-seven and one-half (37.5) hours per week in the center; and

      (b) Has been employed in the center less than one (1) year;

      (12) Provide paid leave in an amount prorated according to the standard established in subsection (11) of this section for each employee who:

      (a) Works less than thirty-seven and one-half (37.5) hours per week in the center; and

      (b) Has been employed in the center less than one (1) year;

      (13) Provide at least eleven (11) days paid leave per year to each employee who:

      (a) Works at least thirty-seven and one-half (37.5) hours per week in the center; and

      (b) Has been employed in the center for at least one (1) year;

      (14) Provide paid leave in an amount prorated according to the standard established in subsection (13) of this section for each teaching employee who:

      (a) Works less than thirty-seven and one-half (37.5) hours per week in the center; and

      (b) Has been employed in the center for at least one (1) year; and

      (15) If year-round child care services are not offered, provide paid leave in an amount prorated according to the standards established in subsections (11) through (14) of this section.

 

      Section 6. Level 4 Quality Rating Certificate Requirements. A licensed child-care [child care] center participating in STARS and holding a Level 4 quality rating certificate shall:

      (1) Post prominently in each classroom and maintain the staff-to-child ratios and group size recommended by the National Association for the Education of Young Children;

      (2) Meet the requirements of Sections 2(3), 3(2)(a)[2 and 3], (b), (c) and (f) through (h), and 5(6) of this administrative regulation;

      (3) Coordinate at least four (4) annual activities involving parental or family participation;

      (4) Meet the requirements of Section 4(2), (4), (9), (10), [(11)(b), (c), (d), or (e),] and (12) of this administrative regulation;

      (5) Meet the requirements of Section 5(4), (7), (8), and (10) through (15) of this administrative regulation;

      (6) Achieve an overall average score of at least six (6) on the environment assessment [rating scales] portion of the STARS [STAR] rating visit;

      (7) Review and sign the "DCC-404, STARS for KIDS NOW-Level 4 Standards Checklist" during the STARS rating visit;

      (8) Be accredited by:

      (a) The National Association for the Education of Young Children (NAEYC);

      (b) The National Early Childhood Program Accreditation (NECPA);

      (c) The National After School Association (NAA);

      (d) The Southern Association of Colleges and Schools (SACS); [or]

      (e) The National Accreditation Commission for Early Care and Education Programs;

      (f) The Association of Christian Schools International Preschool Accreditation Program;

      (g) The Council on Accreditation; or

      (h) An organization approved by the Early Childhood Development Authority;

      (9) Ensure that at least one (1) employee who has a Child Development Associate’s Credential or higher level of education, as described in Section 5(7)(b)3 or 4[(10)(d) or (e)] of this administrative regulation, is present in each classroom during all hours of operation; and

      (10) Ensure that the center’s director or employee who is designated responsible for the center's on-site operation as required by 922 KAR 2:110:

      (a) Meets the standards recommended by the organization by which the center is accredited;

      (b) Annually receives twenty-four (24) [twelve (12)] clock hours of early care and education training [annually beyond the twelve (12) hour requirement specified in 922 KAR 2:110]; and

      (c) Has completed the Director’s Credential or an equivalent credential approved by the Early Childhood Development Authority.[;

      (11) Ensure that health insurance is available to each employee of the center;

      (12) Pay at least fifty (50) percent of the cost of a single health insurance plan for each employee who works at least thirty-seven and one-half (37.5) hours per week in the center; and

      (13) Pay the cost of a single health insurance plan in an amount no less than a percentage prorated according to the standard set forth in subsection (12) of this section, for each employee who works less than thirty-seven and one-half (37.5) hours per week in the center.]

 

      Section 7. STARS for KIDS NOW Achievement [and Quality Incentive] Awards. To the extent that funds are available, the cabinet shall pay achievement [and quality incentive] awards to qualified STARS for KIDS NOW participants.

      (1) [Achievement award.

      (a)] A [one (1) time] STARS achievement award shall be awarded to a Type I center:

      (a) The first time the center [that] achieves a STARS level [rating], according to the following chart:

 

 

Level 1

Level 2

Level 3

Level 4

Participant's enrollment is 50 children or less

$200

$500

$1,700

$3,000

Participant's enrollment is 51 to 100 children

$200

$750

$2,200

$4,000

Participant's enrollment is more than 100 children

$200

$1,000

$2,700

$5,000

; and

      (b) The first time and each subsequent time a center achieves a higher STARS level, [A Type I center that achieves a STARS level greater than a Level 1 shall receive an achievement award] for each STARS level up to and including all STARS level ratings achieved at that time.

      (2) A Type I child-care center that continues to be a STARS rated Level 3 or 4 provider shall be eligible for an annual achievement award during the month of the anniversary date based upon the following chart:

 

Number of children

Level 3

Level 4

50 or less children

$850

$1,500

51 to 100 children

$1,100

$2,000

More than 100 children

$1,350

$2,500

 

      Section 8. [(c) An achievement award shall not be awarded more than one (1) time per STARS level achieved.

      (2)] Quality incentive award. To the extent funds are available, the cabinet shall pay quality incentive awards to qualified STARS for KIDS NOW participants.

      (1)[(a)] A Level 1 STARS rated Type I center shall not be eligible to receive a quality incentive award.

      (2)[(b)] Quality incentive awards shall be calculated and paid on the percentage of children served by the Child Care Assistance Program, as described in 922 KAR 2:160, to the qualified center.

      (3)[(c)] A quality incentive award shall be calculated and paid based on the center's STARS rating level and the percentage of CCAP subsidized children, compared to the total number of children served during the month the quality rating certificate was issued. The product of this equation shall be the monthly amount of the quality incentive award.

      (4)[(d)] The following chart shall be used when calculating the amount of a quality incentive award:

 

 

Amount per month per child under age three (3)

Amount per month per child age three (3) and over

Participant's enrollment percentage

Level 2

Level 3

Level 4

Level 2

Level 3

Level 4

1 - 10%

$8

$12[$11]

$15[$13]

$7

$11[$10]

$14[$12]

11 - 25%

$9

$13[$12]

$16[$14]

$8

$12[$11]

$15[$13]

26 - 50%

$10

$14[$13]

$17[$15]

$9

$13[$12]

$16[$14]

51 - 75%

$11

$15[$14]

$18[$16]

$10

$14[$13]

$17[$15]

76% or more

$12

$16[$15]

$19[$17]

$11

$15[$14]

$18[$16]

 

      (5)[(e)] A Quality incentive award shall be paid to a qualified center at least annually, and the quality incentive award shall be recalculated annually to the center.

 

      Section 9. Enhancement Awards. To the extent funds are available, the cabinet shall pay enhancement awards to qualified STARS for KIDS NOW participants.

      (1) A Level 4 Type I child-care center shall be eligible for an enhancement award when the child-care center:

      (a) Completes the DCC-404E, STARS for KIDS NOW-Level 4 Enhanced Standards Checklist, ensuring that health insurance is available to each employee of the center;

      (b) Pays at least fifty (50) percent of the cost of a single health insurance plan for each employee who works at least thirty-seven and one-half (37.5) hours per week in the center; and

      (c) Pays the cost of a single health insurance plan in an amount no less than a percentage prorated according to the standard set forth in subsection (2)(b) of this section, for each employee who works less than thirty-seven and one-half (37.5) hours per week in the center.

      (2) The annual enhancement award shall be:

      (a) Only for Type I Level 4 child-care centers;

      (b) Paid during the month of the anniversary date; and

      (c) Based upon the following chart:

 

50 or less children

$1,500

51 to 100 children

$2,000

More than 100 children

$2,500

 

      Section 10. Interim Report. (1) Except during a renewal year, a Level 2, 3, or 4 center shall complete and submit to the cabinet or its designee prior to the anniversary date a:

      (a) DCC-413, STARS for KIDS NOW Interim Report Standards Documentation; and

      (b) DCC-414, STARS for KIDS NOW Interim Report Staff Training Documentation, for each staff person, including the director.

      (2) The cabinet or its designee shall notify a participating center of requirements in subsection (1) of this section at least ninety (90) calendar days prior to the anniversary date.

 

      Section 11.[8.] Renewal of a Quality Rating Certificate. (1) The cabinet or its designee shall notify a participating center at least ninety (90) calendar days before expiration of the center’s quality rating certificate.

      (2) A center shall submit a DCC-401 and DCC-405 to the cabinet or its designee for a quality rating visit at least sixty (60) calendar days prior to expiration of the quality rating certificate.

      (3) A quality rating certificate shall be renewed by a quality rating visit every:

      (a) Year for a Level 1 rated center;

      (b) Two (2) years for a Level 2 rated center;

      (c) Three (3) years for a Level 3 rated center; and

      (d) Four (4) years for a Level 4 rated center.

 

      Section 12. [9.] Conditions Requiring Reevaluation. (1) Reevaluation of a center’s quality rating certificate and associated level shall be conducted if the:

      (a)[(1)] Location of a licensed child care center changes;

      (b)[(2)] Participant requests a reevaluation in accordance with Section 2(5) of this administrative regulation; [or]

      (c)[(3)] Cabinet or its designee determines a need to reassess the participating center’s STARS participation or level rating due to reports or findings concerning a reduction in the center’s quality of care and services; or

      (d) Center fails to return the DCC-413 or DCC-414.

      (2) A decrease in level rating due to a re-evaluation shall reduce the basis of awards specified in sections 7, 8, and 9 of this administrative regulation.

 

      Section 13. [10.] Conditions Requiring Revocation. (1) A participant’s quality rating certificate shall be revoked for:

      (a) Immediate closure pursuant to KRS 13B.125 and 199.896(4);

      (b) Denial of relicensure;

      (c) A pending suspension or revocation action taken against the child care center’s license;

      (d)1. Failure to comply with payment of a civil penalty levied against the center; or

      2. Failure to make payment arrangements for a civil penalty within sixty (60) days and comply with that arrangement; if:

      a. The center waived the right to appeal the civil penalty; or

      b. The civil penalty has been upheld on appeal;[.]

      (e) Failure to comply with the requirements of 922 KAR 2:160;

      (f) Two (2) or more civil penalties levied against the center in a twelve (12) month period; or

      (g) A change in ownership.

      (2) [Payment of a quality incentive award shall cease] Upon revocation of a quality rating certificate, payment shall cease for:

      (a) A quality incentive award;

      (b) An enhancement award; or

      (c) An annual achievement award.

 

      Section 14.[11.] Quality Rating Certificate. A quality rating certificate shall be returned to the cabinet if the:

      (1) Certificate is revoked;

      (2) Certificate is not renewed; or

      (3) Center voluntarily withdraws from the STARS Program.

 

      Section 15.[12.] Appeals. (1) If the cabinet or its designee determines that a participant does not meet the rating level standards for which the center is certified, a center shall:

      (a) Accept a lower rating level; or

      (b) Request an administrative hearing in accordance with 922 KAR 1:320, Section 2(11).

      (2) Payment of an [a quality incentive] award in Sections 7, 8, or 9 of this administrative regulation shall be held in abeyance pending resolution of appeal of a reduced rating level.

      (3) If denial, suspension, or revocation of a child care center’s license is reversed upon appeal, the:

      (a) Center may reapply for participation in the STARS Program; or

      (b) Cabinet may reinstate the center at the STARS level the center was rated prior to the licensure issue if the:

      1. Center submits a request for reinstatement; and

      2. Center’s STARS quality rating certificate and licensure has not expired.

 

      Section 16.[13.] Incorporation by Reference. (1) The following material is incorporated by reference:

      (a) "DCC-400, Level 1 Rating Certificate Application", edition 9/06;

      (b) "DCC-401, STARS for KIDS NOW-Level 1 Standards Checklist", edition 1/08[9/06];

      (c) "DCC-402, STARS for KIDS NOW-Level 2 Standards Checklist", edition 1/08[9/06];

      (d) "DCC-403, STARS for KIDS NOW-Level 3 Standards Checklist", edition 1/08[9/06];

      (e) "DCC-404, STARS for KIDS NOW-Level 4 Standards Checklist", edition 9/06;

      (f) "DCC-404E, STARS for KIDS NOW-Level 4 Enhanced Standards Checklist", edition 01/08; and

      (g) "DCC-405, STARS for KIDS NOW-Rating Visit Request Form", edition 9/06

      (h) "DCC-413, STARS for KIDS NOW Interim Report Standards Documentation", edition 01/08; and

      (i) "DCC-414, STARS for KIDS NOW Interim Report Staff Training Documentation”, edition 01/08.

      (2) This material may be inspected, copied, or obtained, subject to applicable copyright law, at the Department for Community Based Services, 275 East Main Street, Frankfort, Kentucky 40621, Monday through Friday, 8 a.m. to 4:30 p.m.

 

MARK A. WASHINGTON, Commissioner

      TOM EMBERTON, JR., Deputy Secretary

      MARK D. BIRDWHISTELL, Secretary

      APPROVED BY AGENCY: October 12, 2007

      FILED WITH LRC: October 12, 2007 at 4 p.m.

      PUBLIC HEARING AND COMMENT PERIOD: A public hearing on this administrative regulation shall, if requested, be held on November 21, 2007 at 9 a.m. in the Cafeteria Meeting Room on the first floor of the Human Services Building, 275 East Main Street, Frankfort, Kentucky. Individuals interested in attending this hearing shall notify this agency in writing by November 14, 2007, five (5) workdays prior to the hearing, of their intent to attend. If no notification of intent to attend the hearing is received by that date, the hearing may be canceled. The hearing is open to the public. Any person who attends will be given an opportunity to comment on the proposed administrative regulation. A transcript of the public hearing will not be made unless a written request for a transcript is made. If you do not wish to attend the public hearing, you may submit written comments on the proposed administrative regulation. You may submit written comments regarding this proposed administrative regulation until close of business November 30, 2007. Send written notification of intent to attend the public hearing or written comments on the proposed administrative regulation to:

      CONTACT PERSON: Jill Brown, Office of Legal Services, 275 East Main Street 5 W-B, Frankfort, Kentucky 40601, phone (502) 564-7905, fax (502) 564-7573.

 

REGULATORY IMPACT ANALYSIS AND TIERING STATEMENT

 

Contact Person: Justin Dearinger, (502) 564-3556, ext 4227

      (1) Provide a brief summary of:

      (a) What this administrative regulation does: This administrative regulation establishes criteria for implementation of the voluntary quality rating system for Type I licensed child-care centers, and establishes the amount of each monetary incentive awarded to a participant in the STARS for KIDS NOW Program quality rating system.

      (b) The necessity of this administrative regulation: This administrative regulation is necessary to establish standards for a graduated voluntary rating system for licensed child care centers, agency time frames for review of quality ratings, a process for reevaluation of quality ratings, and establishes monetary awards for participants.

      (c) How this administrative regulation conforms to the content of the authorizing statutes: This administrative regulation conforms to the cabinet’s authorization under KRS 194A.050(1) which requires the Secretary of the Cabinet for Health and Family Services to promulgate administrative regulations necessary under applicable state laws to protect, develop, and maintain the health, personal dignity, integrity, and sufficiency of the individual citizens of the Commonwealth. KRS 199.8943(2) requires the Cabinet for Health and Family Services to promulgate an administrative regulation that implements voluntary quality-based graduated child care rating system for licensed child-care centers; agency time frames for review of quality ratings; an appeals process under KRS Chapter 13B; and a process for the reevaluation of quality ratings. KRS 199.8941(1) requires the Early Childhood Development Authority to develop a program of monetary incentives tied to participation in a quality rating system. This administrative regulation establishes criteria for implementation of the voluntary quality rating system for Type I licensed child-care centers, and establishes the amount of each monetary incentive awarded to a participant in the STARS for KIDS NOW Program.

      (d) How this administrative regulation currently assists or will assist in the effective administration of the statutes: This administrative regulation assists in the effective administration of the statute by describing the requirements to participate in the STARS for KIDS NOW Program for Type I licensed child-care centers.

      (2) If this is an amendment to an existing administrative regulation, provide a brief summary of:

      (a) How the amendment will change this existing administrative regulation: The amendment to this administrative regulation will conform training and education requirements for Type I licensed childcare center staff to licensure regulations. This amendment describes an additional annual achievement award for Level 3 and 4 participants, an increase to quality incentive awards paid to centers providing care to CCAP subsidized children, and an enhancement award for Level 4 centers that provide employee health insurance. The requirement that health insurance be provided by a center to employees in order to receive a Level 4 rating is removed. Program participants will be required to complete and submit interim reports. Forms contained in material incorporated by reference are revised.

      (b) The necessity of the amendment to this administrative regulation: The amendment to this administrative regulation is necessary to mirror training and education requirements of Type I licensed child-care center staff to licensure regulations and increase financial incentives to child-care centers to participate and progress in the program to upgrade quality in Type I licensed child-care centers.

      (c) How the amendment conforms to the content of the authorizing statutes: The amendment conforms to the content of the authorizing statutes by establishing requirements for a voluntary quality-based graduated child care rating system for licensed child-care centers; agency time frames for review of quality ratings; an appeals process under KRS Chapter 13B; and a process for the reevaluation of quality ratings.

      (d) How the amendment will assist in the effective administration of the statutes: The amendment will assist in the effective administration of the statutes by clarifying the requirements for the issuance of a quality rating certificate and ongoing operation STARS for KIDS NOW program. The amendment clarifies procedures and responsibilities contained within the administrative regulation and makes technical requirements to comply with KRS Chapter 13A.

      (3) List the type and number of individuals, businesses, organizations, or state and local governments affected by this administrative regulation: Data from the Office of the Inspector General, Division of Regulated Child Care, indicate as of August 9, 2007, that there are 2156 Type I licensed child-care centers and approximately 687 of them are currently participating in the STARS for KIDS NOW Quality Rating Program.

      (4) Provide an analysis of how the entities identified in question (3) will be impacted by either the implementation of this administrative regulation, if new, or by the change, if it is an amendment, including:

      (a) List the actions that each of the regulated entities identified in question (3) will have to take to comply with this administrative regulation or amendment: This amendment will require STARS for KIDS NOW Quality Rating Program participants to complete and submit an interim report.

      (b) In complying with this administrative regulation or amendment, how much will it cost each of the entities identified in question (3):Monetary costs, if any, for these provisions to a Type I licensed child-care center operator are minimal.

      (c) As a result of compliance, what benefits will accrue to the entities identified in question (3):As a result of compliance with the amendment, a Type I licensed child-care center operator will improve the quality of services provided to children in their care and may benefit from STARS for KIDS NOW Quality Rating Program financial awards system.

(5) Provide an estimate of how much it will cost the administrative body to implement this administrative regulation:

      (a)Initially: There are additional costs to the Cabinet as a result of the amendment to this administrative regulation. The Division of Child Care.

      completed an analysis and anticipates initial implementation will require        additional funding of $1,072,500 to pay for increased awards to Type I licensed childcare centers. Funding is available through the existing Tobacco Fund allotment and the Child Care Development Fund federal grant. Funds for the amendment have been budgeted.

      (b) On a continuing basis: There are additional costs to the Cabinet as a result of the amendment to this administrative regulation. The Division of Child Care completed an analysis and anticipates ongoing added costs of $797,500 to pay for increased awards to Type I licensed child care centers. Funding is available through the existing Tobacco Fund allotment and the Child Care Development Fund federal grant. Funds for the amendment have been budgeted.

      (6) What is the source of the funding to be used for the implementation and enforcement of this administrative regulation? The source of the funding to be used for the implementation and enforcement of this administrative regulation is the Tobacco Fund allotment and the Child Care Development Fund federal grant.

      (7) Provide an assessment of whether an increase in fees or funding will be necessary to implement this administrative regulation, if new, or by the change if it is an amendment: There is no increase in funds or fees to implement this administrative regulation.

      (8)State whether or not this administrative regulation established any fees or directly or indirectly increased any fees: This administrative regulation does not establish any fees or directly or indirectly increase any fees.

      (9) TIERING: Is tiering applied? Tiering is not applied, as this administrative regulation will be applied in a like manner statewide.

 

FEDERAL MANDATE ANALYSIS COMPARISON

 

      1. Federal statute or regulation constituting the federal mandate. 42 U.S.C. 601-619, 45 C.F.R. 98

      2. State compliance standards. KRS Chapter 13B, 199.8941, 199.8943, 199.896(4), 199.8992, KRS 194A.050(1), 199.8941(1), 199.8943(2)

      3. Minimum or uniform standards contained in the federal mandate.42 U.S.C. 601-619, 45 C.F.R. 98

      4. Will this administrative regulation impose stricter requirements, or additional or different responsibilities or requirements, than those required by the federal mandate? No

      5. Justification for the imposition of the stricter standard, or additional or different responsibilities or requirements. Not Applicable

 

FISCAL NOTE ON STATE OR LOCAL GOVERNMENT

 

1. Does this administrative regulation relate to any program, service, or requirements of a state or local government (including cities, counties, fire departments, or school districts)? Yes

      2. What units, parts or divisions of state or local government (including cities, counties, fire departments, or school districts) will be impacted by this administrative regulation? The Department for Community Based Services, Division of Child Care will be impacted.

      3. Identify each state or federal statute or federal regulation that requires or authorizes the action taken by the administrative regulation. 42 U.S.C. 601-619, 45 C.F.R. 98, KRS Chapter 13B, 199.8941, 199.8943, 199.896(4), 199.8992, KRS 194A.050(1), 199.8941(1), 199.8943(2).

      4. Estimate the effect of this administrative regulation on the expenditures and revenues of a state or local government agency (including cities, counties, fire departments, or school districts) for the first full year the administrative regulation is to be in effect.

      (a) How much revenue will this administrative regulation generate for the state or local government (including cities, counties, fire departments, or school districts) for the first year? This administrative regulation will generate no revenue for the state or local government.

      (b) How much revenue will this administrative regulation generate for the state or local government (including cities, counties, fire departments, or school districts) for subsequent years? This administrative regulation will generate no revenue for the state or local government either for subsequent years.

      (c) How much will it cost to administer this program for the first year? Initially, there are additional costs to the Cabinet as a result of the amendment to this administrative regulation. The Division of Child Care completed an analysis and anticipates initial implementation will require additional funding of $1,072,500 to pay for increased awards to Type I licensed childcare centers. Funds for the amendments have been budgeted to cover the additional costs.

      (d) How much will it cost to administer this program for subsequent years? On a continuing basis, there are additional costs to the Cabinet as a result of the amendment to this administrative regulation. The Division of Child Care completed an analysis and anticipates ongoing added costs of $797,500 to pay for increased awards to Type I licensed child care centers. Funds for the amendment have been budgeted to cover the additional costs.

      Note: If specific dollar estimates cannot be determined, provide a brief narrative to explain the fiscal impact of the administrative regulation.

      Revenues (+/-):

      Expenditures (+/-):

      Other Explanation: