Committee tables HB 17-20 over funding concerns for childcare provider notifications

Finance — Division III discussed House Bill 17‑20 on March 13, a proposal to require DHHS to notify childcare providers electronically within three days when a family applies for or is denied a childcare scholarship.

DHHS counsel Brian Clark and systems specialist Jotham Spreeman told the committee the change is intended to close a communication loop so providers do not unknowingly accept a child on the promise of future scholarship funds and later learn an application was denied. The department said the primary fiscal impact is a one‑time IT system change to automate provider notifications; staff estimated development and testing costs in the range of $150,000 in general funds and $100,000 in federal funds (a roughly 60/40 split), though DHHS said no appropriation is included in the bill as introduced.

Members asked whether the federal Child Care and Development Fund (CCDF) could be used and warned that tapping the existing scholarship budget could reduce funds available for children already enrolled. Committee members noted roughly 700 licensed providers and more than 5,000 children currently on scholarship and questioned whether notifications would materially expand capacity; DHHS said notifications would help some providers but would not by themselves increase the supply of child care.

With funding sources unresolved, the committee voted unanimously (7–0) to recommend that HB 17‑20 be laid upon the table because of funding concerns. The committee will forward that recommendation to full Finance.