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Second Regular Session
Seventy-fifth General Assembly
STATE OF COLORADO
REENGROSSED
This Version Includes All Amendments
Adopted in the House of Introduction
LLS NO. 26-0822.01 Veronica Parish x2606 HOUSE BILL 26-1260
House Committees Senate Committees
Health & Human Services
Appropriations
A BILL FOR AN ACT
CONCERNING PROGRAMS FOR CHILD CARE ASSISTANCE.101
Bill Summary
(Note: This summary applies to this bill as introduced and does
not reflect any amendments that may be subsequently adopted. If this bill
passes third reading in the house of introduction, a bill summary that
applies to the reengrossed version of this bill will be available at
http://leg.colorado.gov.)
Under existing law, the implementation dates for capping family
copayments for child care at 7% of family income, for paying child care
providers in advance of the provision of services, and for utilizing grants
and contracts to improve access to child care for underserved populations
is August 1, 2026. The bill extends the implementation dates to August
1, 2028.
The bill clarifies that no more than 5% of money allocated to
counties for child care assistance may be used for administrative costs.
HOUSE
3rd Reading Unamended
March 25, 2026
HOUSE
Amended 2nd Reading
March 24, 2026
HOUSE SPONSORSHIP
Garcia and Willford, Bacon, Boesenecker, Camacho, Clifford, Duran, Froelich, Gonzalez
R., Joseph, Lieder, Lindsay, McCluskie, Nguyen, Phillips, Rutinel, Stewart K., Story
SENATE SPONSORSHIP
Cutter and Bright,
Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment.
Capital letters or bold & italic numbers indicate new material to be added to existing law.
Dashes through the words or numbers indicate deletions from existing law.
Be it enacted by the General Assembly of the State of Colorado:1
SECTION 1. In Colorado Revised Statutes, 26.5-4-111, amend2
(4)(b) and (12)(a) as follows:3
26.5-4-111. Services - eligibility - assistance provided - waiting4
lists - rules - exceptions from cooperating with child support5
establishment.6
(4) (b) The executive director by rule shall establish, and at least7
every five years review and revise, as appropriate, a copayment schedule8
so that the copayment gradually increases as the family income9
approaches self-sufficiency income levels, but must be no greater than10
seven percent of the family's gross monthly income on or before August11
1, 2026 AUGUST 1, 2028, regardless of the number of children in care, as12
determined based on one month of income, unless one month of income13
does not provide an accurate indication of anticipated income, in which14
case the county may use evidence of up to the most recent twelve months15
of income; however, if a federal rule limits copayments to less than seven16
percent of the family's gross monthly income, the department shall17
immediately comply with the federal limit. This revised copayment18
schedule should allow families to retain a portion of their increases in19
income.20
(12) Each county:21
(a) Upon notification to counties by the department that the22
relevant case management systems, including the Colorado child care23
automated tracking system, are capable of accommodating this subsection24
(12)(a), and pursuant to department rules, on or be fore August 1, 202625
AUGUST 1, 2028, and subject to available federal appropriations, in26
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addition to regular provider reimbursement rates, the county departments1
shall pay providers for care in alignment with common practices in the2
private market for child care, including paying providers weekly for each3
child based on child enrollment in advance of the provision of services.4
The department rules governing payment policies must allow daily5
reimbursement rates only for drop-in child care, back-up child care, and6
care that is commonly paid on a daily reimbursement basis in the private7
child care market and must incentivize providers to promote regular8
program attendance. On or before August 1, 2026 AUGUST 1, 2028, and9
subject to available federal appropriations, the department and county10
departments shall utilize grants and contracts for underserved11
populations, including children in underserved geographic areas, infants12
and toddlers, children with disabilities, and families needing13
nontraditional-hour care, to improve equitable access for these14
populations. The department shall annually evaluate data regarding the15
numbers and percentages of unders erved populations being served by16
CCCAP to determine if equitable access is improved or achieved. The17
executive director shall promulgate ADOPT rules for the implementation18
of this subsection (12).19
20
SECTION 2. In Colorado Revised Statutes, 26.5-4-114, amend21
(1) introductory portion, (1)(i), and (1)(j)(V); and add (1)(k) as follows:22
26.5-4-114. Colorado child care assistance program -23
reporting requirements.24
(1) On or before November 1, 2022, and on or before November25
1 each year thereafter, the department shall prepare a report on CCCAP.26
Notwithstanding section 24-1-136 (11)(a)(I), the department shall provide27
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the report to the joint budget committee of the general assembly, the1
public and behavioral health and human services committee of the house2
of representatives, and the health and human services committee of the3
senate, or any successor committees. The report must include, at a4
minimum, the following information related to benchmarks of success for5
CCCAP:6
(i) An estimate of unmet need for CCCAP in each county and7
throughout the state based on estimates of the number of children and8
families who are likely to be eligible for CCCAP in each county but who9
are not enrolled in CCCAP, disaggregated by estimated ages from birth10
through thirteen years of age; and11
(j) Beginning with the report submitted November 1, 2024, and12
in each annual report thereafter:13
(V) An explanation of the quality incentives made available to14
providers; AND15
(k) BEGINNING WITH THE REPORT SUBMITTED NOVEMBER 1, 2026,16
AND IN EACH ANNUAL REPORT THEREAFTER:17
(I) THE TOTAL AMOUNT OF CCCAP ALLOCATION THAT IS SPENT BY18
THE DEPARTMENT AND EACH COUNTY ON:19
(A) A DMINISTRATIVE EXPENSES , INCLUDING SALARIES AND20
OPERATING EXPENSES OF STAFF WHO PERFORM ADMINISTRATIVE21
FUNCTIONS;22
(B) COUNTY INDIRECT EXPENSES, CHARGED IN ACCORDANCE WITH23
COUNTY COST ALLOCATION PLANS;24
(C) PROGRAM IMPLEMENTATION COSTS THAT ARE REPORTED AS25
NONDIRECT SERVICES IN ACCORDANCE WITH FEDERAL CHILD CARE 26
DEVELOPMENT FUND REGULATIONS, SUCH AS SALARIES AND OPERATING27
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EXPENSES FOR CASEWORKERS TO COMPLETE ELIGIBILITY DETERMINATION1
AND REDETERMINATION, ERROR RATE REVIEWS AND COMPLIANCE , AND2
OTHER PROGRAM ACTIVITIES NECESSARY TO OPERATE THE PROGRAM; AND 3
(C) DIRECT SERVICE EXPENSES.4
SECTION 3. Effective date. This act takes effect August 1,5
2026.6
SECTION 4. Safety clause. The general assembly finds,7
determines, and declares that this act is necessary for the immediate8
preservation of the public peace, health, or safety or for appropriations for9
the support and maintenance of the departments of the state and state10
institutions.11
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