Fiscal Note & Local Impact Statement
127 th General Assembly of Ohio
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BILL: |
DATE: |
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STATUS: |
SPONSOR: |
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LOCAL IMPACT
STATEMENT REQUIRED: |
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STATE FUND |
FY 2008 |
FY 2009 |
FUTURE YEARS |
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Day Care Federal (Fund
3H7) |
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Revenues |
- 0 - |
- 0 - |
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Expenditures |
Potential minimal increase
in administrative costs |
Potential minimal increase
in administrative costs |
Potential minimal increase
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Note: The state
fiscal year is July 1 through June 30.
For example, FY 2007 is July 1, 2006 – June 30, 2007.
·
The
bill requires that type A family day-care homes, which are licensed by the
state, procure and maintain liability insurance, a bond, or a signed affidavit
from parents acknowledging that the home does not carry liability insurance or
a bond, and that proof be made available for review during inspection or investigation. As a result, the state may experience a
minimal increase in costs associated with inspections.
·
The
Ohio Department of Job and Family Services will likely experience a minimal
increase in administrative costs as a result of educating the counties and
providers about the new requirements.
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LOCAL
GOVERNMENT |
FY 2008 |
FY 2009 |
FUTURE YEARS |
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Counties |
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Revenues |
- 0 - |
- 0 - |
- 0 - |
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Expenditures |
Potential minimal increase |
Potential minimal increase |
Potential minimal increase |
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Note: For most local governments, the fiscal year is the calendar year. The school district fiscal year is July 1 through June 30.
·
The
bill requires that type B family day-care homes, which are certified by county
departments of job and family services, procure and maintain liability
insurance, a bond, or a signed affidavit from parents acknowledging that the
home does not carry liability insurance or a bond, and that proof be made
available for review during inspection or investigation. As a result, the county departments of job
and family services may experience a minimal increase in costs associated with
inspections.
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Liability insurance or alternatives for family day-care homes
Under current law, type A
and type B family day-care homes are not required to procure and maintain
liability insurance. The bill requires
that all type A and type B family day-care homes procure and maintain one of
the following: (1) liability insurance,
(2) a bond, or (3) a signed affidavit from parents acknowledging awareness that
the home does not carry liability insurance or a bond. The bill requires that this proof be made
available for review during inspection or investigation.
Currently, the Ohio
Department of Job and Family Services (ODJFS) licenses type A homes, and is
also responsible for conducting inspections and investigations of complaints of
these homes. County departments of job
and family services certify type B homes that provide publicly funded care and
are responsible for the inspection and investigation of these homes.
Fiscal effect – The bill will require a
review during the inspection process of the provider's insurance policy, bond,
or family affidavits. As a result both
the state and counties may experience a minimal increase in the time it takes
to conduct inspections, which may slightly increase administrative costs. Currently, federal dollars from Fund 3H7 are
used to pay for the inspection of family day-care homes. The state provides funding to the counties
for certification of type B homes from this fund and the state uses this fund
to pay its costs to license type A homes.
ODJFS may experience an
additional minimal increase in administrative costs as a result of implementing
these new requirements. The Department
will likely create a procedure letter to educate counties and providers of the
new requirements. These costs will
likely be absorbed within existing resources.
LSC fiscal staff: Stephanie Suer, Budget Analyst