PROPOSED RULEMAKING
DEPARTMENT OF PUBLIC WELFARE
[55 PA. CODE CHS. 165, 168, 183 AND 3040]
Subsidized Child Day Care Eligibility
[27 Pa.B. 4615] Statutory Authority
The Department of Public Welfare (Department), under the authority of Articles II, IV and VII of the Public Welfare Code (62 P. S. §§ 201--211, 401--493 and 701--703), and Title VI of the Personal Responsibility and Work Opportunity and Reconciliation Act (PRWORA), known as the Child Care and Development Block Grant (CCDBG) (42 U.S.C.A. §§ 9858--9858q), proposes to amend Chapters 165, 168, 183 and 3040 to read as set forth in Annex A.
Purpose
The purpose of these proposed amendments is to codify regulatory changes in the administration of subsidized child day care for cash assistance and low-income families to implement Title VI of PRWORA, known as the CCDBG and section 408(b) of the Public Welfare Code (62 P. S. § 408(b)), added by section 8 of the act of May 16, 1996 (P. L. 175, No. 35) (Act 35). PRWORA was signed into law by President Clinton on August 22, 1996. Act 35 was signed into law on May 16, 1996, by Governor Tom Ridge.
These proposed amendments will enable the Department to determine a family's eligibility for a child care subsidy: for families receiving Temporary Assistance to Needy Families (TANF) benefits who are involved with job search, education or work activities under the Road to Economic Self-sufficiency through Employment and Training Program (RESET); for families leaving TANF that are making the transition from welfare to work; to provide assistance for families at risk of going on welfare; and to provide assistance for this Commonwealth's low-income working families. The Department must take steps to amend regulations because the child care entitlements for cash assistance families have been revoked. The CCDBG funds are capped and it is necessary to create a program for subsidized child day care that meets the needs of both populations.
In addition, the Department proposes to clarify and strengthen the existing eligibility regulations for the subsidized child day care program. Clarity is needed to help the general population to understand the requirements of being eligible for the subsidized child day care program and the benefit that is associated with being eligible for the program. The Department proposes to strengthen the regulatory requirements to ensure that the most needy individuals are receiving the benefits of subsidized child day care.
Background
The PRWORA has replaced the 61-year-old Aid to Families with Dependent Children (AFDC) Program with a time-limited cash assistance block grant program known as TANF. The TANF Program began in this Commonwealth on March 3, 1997. Along with the repeal of the AFDC child care portion of the Family Support Act, the Federal welfare law combined four separate Federal funding sources for child care into one block grant known as the Child Care and Development Fund (CCDF). This repeal ended any child care entitlements to families on cash assistance who work, who are in training, or who were transitioning off welfare. When the CCDBG was signed into law on August 22, 1996, it repealed the child care portion of the Family Support Act. The three child care funding streams for AFDC families who were enrolled in the Job Opportunity and Basic Skills (JOBS) program, the Transitional Child Care (TCC) program, and those families at risk of going on welfare, were combined with funds from the former CCDBG. This new funding stream was called the CCDF. The law under which all of the funds is placed is called the CCDBG.
The new CCDBG program provides states with a unique opportunity to develop a child care system that will serve cash assistance families, families who leave the cash assistance program and low-income working families who need help with child care costs.
The CCDBG allows states to maximize flexibility in developing child care policies and programs that best meet the needs of parents and children and provide a source of child care to parents who are attempting to achieve independence from welfare. Although the CCDBG does not set a time limit for individuals receiving child care benefits, the Department faces the challenge of creating a subsidized child care system that meets the needs of all populations within the fiscal constraints of a block grant.
To meet the challenge of creating a child care system which address the needs of cash assistance and low-income working families, the Department is implementing a consolidated child care system called Child Care Works. Child Care Works will serve cash assistance families, those families transitioning off welfare and low-income working families, with similar rules and procedures. The proposed amendments set forth in Annex A are designed to align regulations between those for families receiving cash assistance and those for families who are not receiving cash assistance. Changes are proposed in these amendments which will help cash assistance families obtain child care benefits and assure that families transitioning from cash assistance have a continuum of benefits, and will assist low-income families in achieving self-sufficiency so that a return to welfare is not their only option.
Through the proposed amendments, Child Care Works will establish similar requirements for cash assistance families and those not on welfare. The need for similar requirements must also reflect that Federal child care entitlements have ended for cash assistance families and for families transitioning off welfare. By strengthening the regulations, the available funding will be directed to this Commonwealth's most needy populations.
The Governor's proposed budget for Fiscal Year 1997-98 together with Child Care Works represent a commitment to expanded child care within the fiscal realities of block grant funding and expanding need for subsidized child day care benefits. The Department's challenge will be to provide child care subsidies to welfare and low-income working families within the constraints of the funding. Proposed amendments not only address the need for similar requirements for both populations, but also include regulatory changes which are designed to contain costs and serve the greatest number of families possible within the available resources. If resources are not adequate to meet the demand, the Department will review the proposed amendments and may propose other adjustments to the child care delivery system.
In meeting the challenge of serving families in a capped fund environment, and to allow eligible families to understand the child care benefits which they can receive, the Department proposes to amend and clarify the existing regulations for subsidized child day care.
Need for the Amendments
The Department proposes to amend these regulations to comply with PRWORA which establishes standards for the receipt of cash assistance under TANF and the receipt of child care benefits in a parent-choice system under the CCDBG. These proposals are needed to comply with Federal law to assure Federal financial participation; to establish consistency with the Federally-funded TANF; to fulfill the Department's program direction to achieve a seamless and coordinated child care system for families moving toward self-sufficiency; and to continue the network of subsidized child day care benefits which are accessible and easily understood by this Commonwealth's families who need subsidized care.
Requirements
The proposed amendments reflect the requirements of the new Federal and State child care welfare reform provisions as well as the Department's plan to develop an integrated child care system which makes sense to families. To achieve the balance of meeting the increase demand for child care benefits with capped funds and to assist families work toward self sufficiency, the regulations contain provisions for expansion of child care benefits and are tempered with provisions structured to effectively manage resources.
Major changes are proposed in Chapter 3040 (relating to subsidized child day care eligibility) which are designed to assist cash assistance and low-income families to receive the same child care benefits and to introduce requirements which assure that the limited resources are directed to the most needy individuals. The proposed changes in the regulations also enhance these families' access to child care.
The proposed regulatory changes include:
--Revising the copay sliding fee scale.
--Lowering the income limit for eligibility from 235% to 185% of Federal Poverty Level.
--Eliminating the waiting list priorities.
--Eliminating any entitlement to child care.
--Eliminating the child care disregard for cash assistance families who are working, and replacing it with a child care allowance.
--Establishing payment for child care for employed TANF clients from the date employment begins until the first pay is received.
--Establishing payment to employed TANF families based on a sliding fee scale.
--Eliminating the TCC program.
CHAPTER 168. CHILD CARE Purpose
The Department proposes to remove current regulations pertaining to child care which appear in Chapter 165, and place them with Chapter 168, to be retitled ''Child Care.'' All regulations, current and herein proposed, will be in Chapter 168. This provides consistency and a central location for all child care regulations rather than having them disbursed throughout different chapters.
General Provisions Policy on Child Care (168.1)
All references in Chapter 168 to the TCC Program are deleted. In § 168.1(a), language is amended to allow payment for child care to enable the caretaker/relative or custodial parent to participate in RESET.
In § 168.1(b), language is amended to read that the County Assistance Office (CAO) shall inform RESET participants about the types, locations of child care provider and upon requests refers the individual to the Local Management Agency (LMA) for help in locating child care arrangements; advance payment requirements; and notification of approval or denial of child care payments. These regulations are currently in Chapter 165.
Definitions (168.2)
The following changes are proposed to be made:
Budget group--Deleted references to the TCC Program and AFDC. Amended language to read, Child Care and TANF.
Child care allowance--Deleted handicap reference and amended to read disabled.
Relative/neighbor care--Defines care given by a provider that is exempt from certification and cares for three or fewer children.
Copayment sliding fee scale--Revised language to read that the copayment is based on family size, income and cost of care.
The following terms are proposed to be deleted: ''local market rate''; ''month of application''; ''OJT''; ''principal wage earner''; and ''unregulated care.''
The following amendments are proposed:
In 168.11(a), amended language to read child care allowances are available for all types of child care. This language currently is in Chapter 165.
In § 168.11(b), added parental access language currently in Chapter 165.
In § 168.11(c), added parent choice language currently in Chapter 165.
In § 168.11(d), added language to payments for children who meet one of the following criteria. Current language in Chapter 165.
In § 168.11(e), amends language and defines eligibility costs. Current language in Chapter 165.
In § 168.11(f), amends language to define who is not eligible for child care. Current language in Chapter 165.
In § 168.11(g), amends language to define breaks in payments for child care.
In § 168.11(h), amends language to read that payment be related to employment or RESET activities. Current language in Chapter 165.
In § 168.11(i), amends language to read that child care payments are made by direct payment to the client, vendor payment, and restricted endorsement. Additional language added to the restricted endorsement check to allow for only one issuance by this method to a provider who is not enrolled in the Child Care Vendor Payment System.
In § 168.11(j), amends language to read that the exception to when child care services are not needed is for participation in RESET activities. Language is also deleted referencing the child at risk due to suspected child abuse.
In § 168.17, amends language to reference the TANF dependent child. Language is deleted referencing the child 13 years of age or older who is under a court order which requires adult supervision.
In § 168.18(a), amends language to reference child care being needed to enable an individual to participate in RESET activities.
In § 168.18(b)(2), deleted language that child care is needed if involved in education and training activities as it duplicated RESET language in the first sentence.
In § 168.18(b)(3), deleted language regarding the child at risk because of suspected child abuse.
In § 168.18(e), added language that child care will not be considered as needed when the biological, adoptive parent, specified relative or legal guardian of the child is the owner/operator of a day care service.
In § 168.20, language amended for the child care copayment, and added ''the employed'' budget group shall pay the required copayment toward the cost of care.
In § 168.21, language amended to reference the employed budget group.
In § 168.41, for verification requirements, current language from Chapter 165 added. Deleted court order verification and the client's statement regarding suspected child abuse.
In § 168.43, amended language to ''disabled'' child.
In § 168.44, deleted this section pertaining to verification of a handicapped adult. Reserved this section.
In § 168.45, language deleted on verification of suspected child abuse. Reserved this section.
In § 168.46, language deleted on verification of court ordered supervision. Reserved this section.
In § 168.47, language deleted on verification of income. Reserved this section.
In § 168.49, language changed to reflect copayment language for the employed budget group.
In § 168.50, language deleted on verification of household income. Reserved this section.
Reporting Requirements
The following amendment is proposed:
In § 168.61, language revised to read that a budget group shall report child care arrangements and costs monthly. Deleted language on monthly reporting.
Payment Determination
The following amendments are proposed:
In § 168.71, language is revised to state that the child care payment is determined for each month.
In § 168.71(1), language is revised to state that the allowable child care cost is the lower of the eligible child care costs, the rate charged the general public or the maximum allowance established by the Department.
In § 168.71(2), language is revised to state that child care payments are made to eligible TANF budget groups in need of child care to:
(i) Participate in RESET. Payment is made up to the maximum allowance.
(ii) Accept and maintain employment. The employed budget group shall pay a required copayment towards the cost of care. The copayment is based on a sliding fee scale as determined by the Department.
Exception: The copayment shall be waived for the period covering the first day of employment until receipt of the first pay.
Language added with the steps taken to determine the copayment.
(1) Determine family size.
(2) Determine gross monthly income and FPIG level (reference Chapter 183 (relating to income)).
(3) Determine the family's average monthly cost of care and fee bracket.
(4) Determine the family copayment from the sliding fee scale.
Child Care Payment Methods
The following amendments are proposed:
In § 168.81, language is revised to state that child care payments are for expenses incurred in a month and issued as one of the following:
(1) Direct check--language the same except wording on child care vendor file changed to Child Care Vendor Payment System.
(2) Vendor payment--language the same except wording on vendor file changed to Child Care Vendor Payment System.
(3) Restricted endorsement--language is added to state that a restricted endorsement check payment method may only be issued one time to a provider not enrolled in the Department's Child Care Vendor Payment System. For providers that want to have a guaranteed payment and have the check go to the provider, enrollment in the Child Care Vendor Payment System is necessary.
Restitution
In § 168.91, language is proposed to state that cash assistance Chapter 255 provisions will apply to a child care payment.
Appeal and Fair Hearing
In § 168.101, language is revised to state that cash assistance provisions of Chapter 275 will apply to a child care payment.
Determination of Need and Amount of Assistance Chapter 183 Income
In § 183.94(3), language is proposed to be deleted concerning personal expenses. Earned income deductions for child care expenses are proposed to be deleted.
CHAPTER 3040. SUBSIDIZED CHILD CARE ELIGIBILITY These proposed amendments are eligibility requirements for families who are not receiving cash assistance benefits.
Introduction Purpose (§ 3040.1)
The Department proposes to amend the purpose statement to more clearly reflect that families must be eligible to receive a subsidy to assist in the cost of child day care. The Department proposes to amend references to family income and eligibility because there are many other factors in addition to income to determine a family's eligibility for subsidized child day care. The Department states that the benefit offered through the subsidized child day care program is a nonentitlement benefit.
Definition of ''Subsidy'' (§ 3040.2)
The Department proposes to amend the definition of ''service.'' In a parent-choice child day care model, the Department assists in the funding of child day care costs and does not endorse any one type of child day care provider arrangement.
The Department proposes to delete the term ''service'' throughout the chapter. In a parent-choice delivery system, it is more accurate to say that a family is eligible for a subsidy to assist in the cost of the child day care. The eligibility agent will determine the family eligible for the subsidized child day care program, but it is the parent's responsibility to select a child day care provider for his child.
The Department proposes to amend the regulation by removing the term ''caretaker'' throughout the regulation. The Department proposes to replace the term ''caretaker'' with the terms ''parent,'' ''family'' or ''child,'' whichever is appropriate to the regulation. In the subsidized child day care program, it is the parent who applies for the benefit, the family who is determined to be eligible and the child who actually receives the child day care. The three terms reflect the actual individual or group that is expected to be the actor or recipient of benefits in the regulation.
In § 3040.2(a), the Department proposes to amend and clarify that a subsidy is provided to assist an eligible family in the payment of child day care.
The Department proposes to remove the term ''out-of-home'' used to describe where subsidized child day care occurs. The Department proposes to expand a family's choices of child day care providers to include care which occurs in the child's home. The proposed expansion of service reflects the Federal funding requirements of the CCDBG. The Department previously proposed changes to Chapter 3040 to include provisions for in-home care, 26 Pa.B. 3433 (July 13, 1996). The requirements included in the previous proposal were described as complicated by reviewers. The Department therefore proposes a more simplified change that would expand the parent's choice in child day care providers. Requirements previously proposed and the comments generated by reviewers will be included in the Parent's In-home Care Handbook and the provider agreement between the LMA, the parent and the provider.
In § 3040.2(b), the Department proposes to amend the section to more accurately reflect that family eligibility for subsidized child day care funding is not based solely on financial criteria, but that the family must meet both financial and nonfinancial criteria to be eligible for the subsidized child day care program. The Department proposes to delete the reference to the Title IV-A supportive service. Title IV-A supportive service is replaced by reference to child care benefits under TANF.
Definitions (§ 3040.3)
In § 3040.3, the Department proposes to amend the section to reflect the following changes in terms:
AFDC--Aid to Families with Dependent Children--The Department proposes to delete this definition because the AFDC program is deleted.
AFDC benefit--The Department proposes to delete this definition because the AFDC program is deleted.
Adjusted monthly gross income--The Department proposes to amend the current multiplier from 4.33 to 4.3 to concur with the multiplier used for cash assistance families. This multiplier is used to determine the adjusted monthly income.
Advance weekly family fee--The Department proposes to amend the current definition to reflect that an advance weekly fee must be paid to a provider in the first week of child day care.
CAO--County Assistance Office--The Department proposes to delete references to the Title IV-A child care program and TCC benefits in the definition.
Child care special allowances--The Department proposes to delete this definition because all references to the definition have been deleted with the elimination of Title IV-A.
Caretaker--The Department proposes to delete this definition throughout the chapter.
Confirming notice--The Department proposes this definition to allow the eligibility agent to substantiate in writing an action taken regarding the family's eligibility for subsidized child day care benefits.
Cost of care--The Department proposes to amend the definition to concur with the proposed regulatory text that discusses a daily cost of care.
County ceiling rate--The Department proposes this definition to identify the maximum amount the Department will authorize a reimbursement to a provider.
Education--The Department proposes this definition as a proposed category of eligibility for minor parents enrolled in an elementary, middle or high school program which leads to a high school diploma. The definition includes minor parents enrolled in a General Education Diploma (GED) program.
Eligibility agent--The Department proposes to amend the term eligibility agent to reflect that the eligibility agent determines the family's eligibility for the subsidized child day care program and reimburses the selected child day care provider on behalf of the eligible family.
Employment--The Department proposes to amend the definition of employment to add a condition that any person who applies for subsidy must be earning at least the prevailing minimum wage to qualify for subsidy. The Department also recognizes that the Department of Labor and Industry grants certain exceptions for employed individuals to receive subminimum wage, such as laborers on a farm.
Family--The Department proposes to amend the definition of ''family'' to be more encompassing. It does not state which individuals are included in family. The proposed definition will read, ''A group of individuals who reside in a common dwelling.'' The determination of individuals included in the family is in the body of the regulation in § 3040.28.
Fiscal year--The Department proposes this definition to define the period of time beginning July 1 of any calendar year and ending June 30 of the following calendar year.
Fraud--The Department proposes this definition to define conditions related to false information. The consequences of fraud are addressed in the regulations related to Overpayment, Repayment and Disqualification (§§ 3040.91--3040.94).
Full-day enrollment--The Department proposes this definition to include any time the child receives care by the provider for five or more continuous hours per day.
Income--The Department proposes to amend the current definition of ''income'' by removing reference to the caretaker.
Legal guardian--The Department proposes this definition to indicate that an individual other than the child's biological step or adoptive parent or specified relatives must demonstrate that custody of a child has been granted by a court in order to be eligible for subsidy benefits.
Live-in companion--The Department proposes this definition to indicate an individual who is free to marry under Commonwealth law and who resides in the common dwelling with the child's parent.
Minor--The Department proposes to include this definition to define an individual under 18 years of age.
Parent--The Department proposes to define parent to reflect the relationship between the child who is in need of child day care benefits and the person who is providing a dwelling for the child. The current regulation refers to the caretaker as the person who applies for subsidized child day care funding. Many individuals find the term caretaker to be confusing and it is often reversed with the term caregiver or the provider of child day care.
Partial redetermination--The Department proposes to define partial redetermination to acknowledge the eligibility agent's option to complete less than a full determination. A partial redetermination is an eligibility review conducted in lieu of a full redetermination.
Part-day enrollment--The Department proposes to amend the definition of ''part-time'' to ''part-day'' and the term ''service site'' is amended to ''provider.'' Each of the amendments more accurately relates to benefits available to a child for whom eligibility has been established. The term ''attendance'' is amended to ''enrollment,'' to be consistent with payment practice.
Profit from self-employment--The Department proposes to define profit to add clarity because the current regulations do not include the term.
Provider--The Department proposes to amend the definition of ''provider'' to define that a provider is an organization or individual who delivers child day care. The second sentence in the definition is deleted to eliminate confusion.
Prospective employment or prospective education--The Department proposes to amend the term prospective training and add the term prospective education. Training is deleted as an eligibility criterion.
Reimbursable daily rate--The Department proposes to define ''reimbursable daily rate'' to describe that a rate will be the cost of care or the county ceiling rate, whichever is less, minus the assessed subsidized fee.
School-age child--The Department proposes to define who may be considered a school- age child.
Self-employment--The Department proposes to define ''self-employment'' to add a provision which requires self-employed individuals to demonstrate a profit which equals, or is greater than, the minimum wage to be eligible for subsidized child day care.
Service site--The Department proposes to delete the term ''service site''. The term ''service site'' is replaced by the term ''provider'' in the regulation.
Service type--The Department proposes to amend the definition to more accurately reflect the types of care which are actually being offered by providers who participate in the subsidized day care system.
Specified relative--The Department proposes a definition for ''specified relative'' to include any blood relative except second, third, and like cousins. The relationship may be one prefixed by grand, great-grand or great, great-grand. Blood relatives include those of half-blood; any blood relative of the adoptive parent, in the case of adoption the biological parent and their blood relatives are not included; a spouse of any person named in the above group.
Suspended subsidy--The Department proposes to define ''suspended subsidy'' to indicate when a temporary lapse of subsidy may occur and does not affect the family's eligibility status.
TANF--Temporary Assistance for Needy Families--The Department proposes to define ''TANF'' to identify families eligible for cash assistance benefits. TANF replaces the term ''Aid to Families with Dependent Children (AFDC).''
TCC--Transitional Child Care Program--The Department proposes to delete the definition of ''TCC'' because the TCC program is eliminated.
Training program--The Department proposes to delete the definition of ''training program'' because this criteria of eligibility no longer exists for families receiving subsidized day care under this chapter.
Unit of care--The Department proposes to define unit of care to describe what is included when a child receives a subsidy benefit.
Unemancipated minor--The Department proposes to delete the term ''unemancipated minor'' because the term is incorporated with the definition of ''minor.''
Waiting list--The Department proposes to amend the term ''waiting list'' to state that a child included in a family determined eligible for subsidy may be placed on a waiting list.
Wrap-around day care program--The Department proposes to define ''wrap-around day care program'' to describe part-day service reimbursement conditions for eligibility agents.
Subsidy goal (§ 3040.4)
The Department proposes to amend the title of this section from ''service goal'' to ''subsidy goal'' to more accurately reflect the actual benefit which is provided to the family.
GENERAL REQUIREMENTS Provision of subsidy (§ 3040.11)
In § 3040.11(d), the Department proposes to amend the first sentence of the section to more accurately state the Department's responsibility to provide subsidy for children from eligible families. The Department proposes to delete the second sentence; this language is more appropriately placed in the contract which governs the relationship between the eligibility agent and the Department.
In § 3040.11(e), the Department proposes a regulation that prohibits families from receiving subsidized child day care benefits if there is an adult available in the child's home to provide care during the hours for which subsidy is requested.
In § 3040.11(f), the Department proposes a regulation which enables the Department to direct funding from different sources through contract language with the eligibility agent. This provision will allow the Department to direct funding to special groups of families. For example, a special group of families may be those who are transitioning off cash assistance or special needs children.
Notice of nondiscrimination; civil rights compliance (§ 3040.12)
In § 3040.12(a), the Department proposes to delete the term ''provider.'' The regulation refers only to the eligibility agent. It is the eligibility agent who determines eligibility and manages the subsidized child day care program on behalf of the Department.
In § 3040.12(b), the Department proposes to delete references to discriminatory practices. The Department's contract with the eligibility agent addresses the requirements for all applicable civil rights laws and regulations.
Family file (§ 3040.14)
In § 3040.14(2), the Department proposes to delete the sectional reference to ''caretaker files'' and proposes that the regulation will discuss a ''family file.'' The reason for this change is because the entire family is considered in the determination of eligibility.
Confidentiality (§ 3040.16)
In § 3040.16(b), the Department proposes to permit the eligibility agent to share information on a subsidized family with the local CAO. This exchange of information is proposed to better enable the Department to authorize subsidized child day care benefits to families moving from welfare dependency.
Additional conditions or additional charges (§ 3040.17)
In § 3040.17(b), the Department proposes to delete all current allowable additional charges that a provider will be permitted to assess a subsidy-eligible family. A general statement is proposed to permit the provider to charge additional fees as long as the same fee is charged to nonsubsidy children. The proposed change will allow parents a greater choice of child day care providers.
In § 3040.17(c), the Department proposes an amendment which permits providers participating in the subsidized day care system to assess the family a fee for child care costs in excess of the assessed subsidized weekly fee when a family chooses a child day care provider whose daily rate exceeds the Department's county ceiling rate. This requirement will no longer restrict parents from selecting a provider who charges a rate which exceeds the county ceiling. This proposed provision will extend the same benefits to low-income families that cash assistance families currently have and will continue to have.
In § 3040.17(d), the Department proposes to limit the number of days to a total of 30 for which it will continue subsidized payment when a child is absent from a provider in 1 fiscal year. Suspended days referenced in § 3040.52(d) may not be considered days of absence.
Citizenship (§ 3040.18).
The Department proposes to amend the citizenship requirement to include the phrase ''under the color of law'' which is a more precise definition.
Subsidy Disruption (§ 3040.19).
In § 3040.19(a) and (b), the Department proposes an amendment to clarify that disruption can occur either with the provider or with the funding.
In § 3040.19(c) and (d), the Department proposes an amendment which addresses the possibility of shortfalls in subsidized funding from State or Federal sources. If a shortfall occurs, the eligibility agent would suspend subsidized payment for children enrolled in subsidy. The proposed amendment identifies that children of families with higher incomes will be suspended first, because families with higher incomes are the closest to being self-sufficient. The Department also proposes that children suspended will be placed on a waiting list for subsidized benefits according to the date of the child's enrollment into subsidized child day care.
Limitations and benefits (§ 3040.21).
The Department proposes to add a new section to specifically define benefits and limitations on subsidized day care which have not been previously outlined in regulations. Benefits and limitations are currently included in the contract language between the Department and the eligibility agent.
In § 3040.21(a) and (b), family benefit limits are proposed that are linked to family income. The Department proposes to limit annual subsidized benefits to no more than 100% of the family's gross annual income depending upon the number of children receiving subsidy. In addition, the number of units of care are proposed to which a child will be entitled over the course of a fiscal year. A parent's right of provider choice is formally established.
In § 3040.21(c), the Department proposes to prohibit payment to any individual who operates a child day care facility.
Grandfathering provisions (§ 3040.22)
A section is proposed to allow for continuum of subsidy for a period not to exceed 1 year subsequent to the implementation date of this chapter. Two groups of families will become ineligible after 1 year. They are: families with incomes between 186% and 235% of the Federal Poverty Level (FPL); and families enrolled in an approved training program.
Composition of a family (§ 3040.28)
The Department proposes a section that identifies individuals who will be included in the family for purposes of determining eligibility. The proposed change defines the family, starting with the child who is in need of child day care. This proposed change is similar to the requirement used for families who receive cash assistance benefits.
The Department proposes to exempt former TANF families from meeting the provisions of this section for 6 months to ensure a seamless transition from receiving TANF child care benefits to meeting the provisions in this section.
The Department proposes additional amendments to revise the family definition. Persons in the family of a minor parent, including the minor parent's parents shall be included in the family when determining eligibility for subsidized child care. The proposal states that the income of a minor parent's parents is also included in calculating the minor parent's eligibility for subsidized day care. Because the Department recognizes the importance of child care subsidies for minor parents, it proposes to exclude a portion of the family income. This exclusion is defined at Appendix A, Part II.
ELIGIBILITY REQUIREMENTS General requirements regarding family eligibility (§ 3040.31)
In § 3040.31(1), the Department proposes that a parent must apply for subsidy in his county of residence. The proposed change reflects the requirement of a § 3040.31a(1), which was published previously as a statement of policy.
In § 3040.31(4), the Department proposes an exemption from the financial eligibility condition imposed by this section for a parent who formerly received TANF and has obtained employment that results in exceeding the TANF income limits. The eligibility agent has 90 days to meet with a parent that formerly received TANF to assess continuing need for child care subsidy and to inform the parent of the requirements for continuing eligibility in the subsidized child day care program.
In § 3040.31(5)--(8), the Department proposes amendments that require release statements to obtain information, Social Security numbers of each family member, documentation that child support has been sought prior to determination of eligibility and documentation of legal guardianship.
Financial eligibility (§ 3040.32)
In § 3040.32(a)(2), the Department proposes to amend the length of time that gross anticipated earned income may be used by the eligibility agent in establishing eligibility for a newly employed family members. The time is extended from 6 to 8 weeks to allow families more time to gather the required information and documentation.
In § 3040.32(b), the Department proposes to delete the subsection. The regulation is proposed in § 3040.34 (relating to nonfinancial eligibility).
In § 3040.32(c), the Department proposes to add provisions which will require a family to pursue all potential sources of income to which it is entitled, excluding TANF benefits.
In § 3040.32(d), the Department proposes a requirement that the parent must document all income deductions listed in Appendix A, Part II. Also, the Department proposes to delete the description of an unemancipated minor.
In § 3040.32(f), the Department proposes a maximum family income eligibility ceiling of 185% of the FPL. The Department proposes to reduce the income limit to reflect the Department's intent to limit subsidized day care to those families who are most in need of child care subsidy. The proposed 185% limit is consistent with other programs within the Department.
Documentation of self-employed income (§ 3040.33)
The Department proposes to amend and to clarify this section to include a statement that only documented profit from self- employment may be used as an income inclusion. The Department proposes a requirement that the family must produce Schedule C, or any other Internal Revenue Service (IRS) income tax return forms, which enables an eligibility agent to determine income. The Department proposes to include standards which require self-employed individuals to file quarterly tax statements with the IRS if the individual has been self-employed for less than one year.
Nonfinancial eligibility (§ 3040.34)
In § 3040.34(a), the Department proposes a statement that the family must meet the nonfinancial requirements for subsidized child day care based on employment, education status and need for child care in order to be eligible for subsidy.
In § 3040.34(b)(1), the Department proposes to delete the minimum number of hours and days for which child care is needed. Instead, the Department proposes that the family's need for child care must coincide with the family's hours of employment or education. The Department proposes to provide the authorization of subsidized child care for actual days the parent is not available to care for the child because he is employed or enrolled in an educational program.
In § 3040.34(b)(2), the Department proposes to delete the provision that if child care is needed for 3 or 4 days per week, that the child may have 5 days of care.
In § 3040.34(b)(4), the Department proposes to increase the number of hours a parent must be employed to be eligible for subsidized day care. Future increases in the number of hours a parent must work will correspond with increases in TANF legislation.
In § 3040.34(b)(5)--(8), the Department proposes to expand nonfinancial eligibility requirements to include documentation of citizenship and Social Security numbers of all family members. This information for identification purposes is required by other State agencies. The Department proposes that the parent must provide proof of his identity to the eligibility agent. The Department proposes to expand this section of the regulation also to allow parents whose employment ends between the hours of 2 a.m. and 9 a.m. the option of enrolling the child during hours that permit the parent uninterrupted sleeping time in order to continue work. The parent may choose child care during work hours or sleeping time. This provision supports shift work.
In § 3040.34(b)(9), the Department proposes a requirement that foster parents who apply for subsidized child day care for a foster child must submit approval from the foster care placement agency for the child to attend a child day care program because the foster parent is not available to care for the child. This provision is proposed to ensure that the foster care agency is aware of who is caring for the child and agrees that child care is appropriate for the child.
In § 3040.34(c) and (d), the Department proposes regulations requiring that family members and self-employed parents document pertinent information about employment status.
Inability to be employed or continue participation in an education program (§ 3040.36)
In § 3040.36(a) and (b), the Department proposes to amend the current requirements regarding verification of disability and eligibility based on disability of the parent to:
--Reduce the continuation of eligibility from 1 year to 6 months for a parent who becomes disabled. Experience over the past 2 years has shown that most parents who are disabled are able to return to work or training within 6 months. The number of times a parent may claim disability is unlimited.
--Expand this section to recognize the eligibility of a two-parent household if one parent is disabled, unable to work or to participate in training and is unable to care for the children. The disabled parent must receive or seek income because of the disability.
Attendance requirements (§ 3040.37)
In § 3040.37(b), the Department proposes to amend the section and reduce the number of consecutive days for which a child may be absent from the provider and remain eligible for the subsidized child day care program. The proposed reduction is from 20 to 10 consecutive enrollment days, except under any of the conditions found in § 3040.52(d) (relating to eligibility agent responsibilities).
In § 3040.37(c), the Department proposes to subsidize absences up to 30 units of care in a fiscal year. This is proposed to limit the Department's payment on days when the child does not attend child day care.
Prospective employment or prospective education program for new parent applicants (§ 3040.38)
The Department proposes to no longer consider the parents' participation in training as a basis of need for child day care for parents applying for subsidy under this chapter. The Department considers the Office of Income Maintenance to be the primary source for the authorization of training and supportive services such as child care for the individual participating in training that leads to employment for cash assistance families. Currently, a small number of families participating in the subsidized child day care program are enrolled in training.
In § 3040.38(c), the Department proposes to increase the maximum time a parent is allowed to verify income from employment. The proposed increase is from 6 weeks to 8 weeks. In addition, the Department proposes to delete the requirement that a new application and fee agreement must be completed at the time income is verified.
In § 3040.38(d), the Department proposes an amendment for a parent who starts a new job and will not receive a paycheck within 30 days. The Department proposes to not include earnings from the new job until the paycheck is received.
In § 3040.38(e), the Department proposes to allow up to 30 calendar days during which subsidized child day care may be used by a parent seeking employment once the parent has exhausted all available TANF benefits.
Title IV-A child care benefits (§ 3040.39)
The Department proposes to delete this section because the Title IV-A child care benefits have been repealed under the CCDBG. Child care benefits for families on cash assistance or TANF are covered in Chapter 168.
ELIGIBILITY DETERMINATION PROCESS General requirements in the eligibility determination process (§ 3040.51)
In § 3040.51(b), the Department proposes to amend the maximum period of subsidized child day care eligibility from 12 months to 6 months to provide greater assurances that only eligible families receive the benefits.
In § 3040.51(c), the Department proposes that the eligibility agent will conduct at least a partial redetermination for each reported change in eligibility status. The redetermination must occur within 20 calendar days of the date the eligibility agent is notified of the change.
Eligibility agent responsibilities (§ 3040.52)
In § 3040.52(a)(2), the Department proposes a requirement which establishes the need for some form of personal identification of the person who signs the application when a face-to-face interview is conducted. At the face-to-face meeting, the eligibility agent will have an opportunity to provide consumer education on the selection of child care.
In § 3040.52(b)(2)(iii)--(v), the Department proposes requirements to shorten normal frequency of redetermination from 12 months to 6 months. The Department proposes to shorten further the frequencies of determinations to 3 months for self-employed individuals who have been self-employed for less than 1 year, individuals whose disability will end prior to 6 months, a family member whose employment is seasonal or temporary, or a parent whose education program ends prior to 6 months.
In § 3040.52(c)(7), the Department proposes to include a continuing eligibility requirement for minor parents on break from an education program. This will permit a child of a minor parent to continue to receive subsidy during breaks which do not exceed 30-calendar days.
In § 3040.52(d)(1), the Department proposes that the eligibility agent may suspend the child's receipt of subsidy under special circumstances. The suspension of subsidy allows families to continue to be eligible for subsidized child care up to the 91st day of suspension.
Parent rights and responsibilities (§ 3040.53)
In § 3040.53(a), the Department proposes to require one face-to-face meeting between the parent and the eligibility agent prior to the child's enrollment in subsidized child day care.
In § 3040.53(h), the Department proposes to include language regarding accurate and complete eligibility information.
Waiting list (§ 3040.54)
In § 3040.54, the Department proposes to delete the current priorities for subsidy. The Department proposes to delete four waiting list categories and proposes a single eligibility category with a waiting list established on a first-come, first-served basis determined by the date and time the child was determined eligible. The Department proposes to assure that all low-income families eligible for subsidy have some indication of when they will receive subsidized day care benefits and receive equal access to subsidy. The reason the Department proposes to delete all priorities is because the AFDC and TCC programs are eliminated. The Department proposes to lower income limits from 235% of FPL to 185% of FPL and the Department proposes to no longer recognize training, with the exception of minor parents attending high school or GED program, as a nonfinancial eligibility criteria.
Maintaining a waiting list (§ 3040.55)
In § 3040.55(a), the Department proposes to amend the normal eligibility period from 12 months to 6 months for families who remain on a waiting list. This proposal is made to assure accountability.
In § 3040.55(b), the Department proposes to delete the current requirement because it refers to a waiting list criterion effective for the year 1992. The Department proposes to include a statement that a redetermination completed during the enrollment process will not affect a child's placement on the waiting list.
In § 3040.55(b), the Department proposes to amend the subsection regarding subsidy for an additional child in a family currently receiving subsidy. The additional child will be placed on the waiting list according to the date and time care is requested. This proposal is made to ensure, because of capped funds, that subsidized child day care benefits are available to a greater number of families. Children new to a family will not automatically begin to receive subsidized child day care.
In § 3040.55(c), the Department proposes that a child may not remain on the waiting list for more than 30 calendar days from the date funding becomes available. This proposal is included to prevent the delay of access to subsidized funding by children who are placed lower on the waiting list.
FEES General requirements regarding fee payment (§ 3040.61)
In § 3040.61(a), the Department proposes to add a general statement that the eligibility agent determines the weekly family fee during the eligibility process and that the parent is responsible for paying the fee to the provider when his child is enrolled in subsidy.
In § 3040.61(c), the Department proposes to delete the biweekly fee payment provision. A family with only one child who is enrolled in part-day school-age care during the school year will pay a weekly fee. This proposal is made to assure fee equity for all families on the basis of the frequency and amount of payment. The weekly family fee is based on the family's annual income.
In § 3040.61(h), the Department proposes to amend language that specifies how payment of a delinquent family fee is to be applied. In addition, the Department proposes to amend the language regarding the third notice for delinquent fee payment and allow the parent to continue to receive subsidy if an appeal is filed timely.
In § 3040.61(i)(2), the Department proposes a requirement for the eligibility agent to send the provider a copy of each advance notice of adverse action issued to a family whose child is enrolled at the provider. This proposal is made to keep the provider informed of actions that may affect the child's enrollment at the provider.
In § 3040.61(j), the Department proposes to amend the regulation to state that a family ineligible because of nonpayment of fees cannot apply for subsidized day care for a period of 90 days from the date the delinquent fee is paid.
Weekly family fee (§ 3040.63)
In § 3040.63(a), the Department proposes to amend the use of the conversion chart in Appendix B and proposes use of the conversion chart issued by the Department annually based on the FPIG.
In § 3040.63(a)(1), the Department proposes the term ''consecutive'' when referring to income obtained within the most recent 6-week period.
In § 3040.63(c), the Department proposes to amend the method of computing the weekly family fee. The Department proposes a fee that is based on the cost of care, income and family size. The Department is proposing a change to a structured family copay sliding fee scale because it is committed to supporting families in the transition from receiving a subsidy to maintaining child care payments without a subsidy. The proposed family fee scale will prepare families to buy child care within the private market without a State subsidy by linking responsibility for payment with level of income and child care choices. The proposed family fee also recognizes the wide range of child care available and the variable costs associated with it.
The Department's proposed fee structure is based on a ''standard'' provider cost range of $275 to $375 per month. The standard provider cost range of $325 per month is based on the average Statewide monthly cost of care for all types of care. The ranges are set at levels below and above the $325 average cost. The Department will adjust these costs annually. The proposed fee scale ties the amount of family income spent on child care to the FPL for a family of a given size.
The Department has had the same parent copay formula schedule since 1992. Since that time, we recognize that costs of child care are increasing and the cost of care has increased for many nonsubsidy-eligible parents. The Department proposes to increase the amount of the parent's weekly copay to reflect a more realistic contribution towards the rising cost of child care and to prepare parents to pay for child care after they are no longer eligible for subsidy.
The current fee scale copayment is low compared to other states. The current copayment ranges from 3% to 11% of family gross income. The Department proposes to extend the range from 3% to 14.5% of gross income. Those families at 100% of FPL and below will not pay more than 10% of their income while families above 100% of FPL will pay an increased percentage of their income graduating up to 14.5% when their income is 185% of FPL.
In determining the cap of 14.5%, the Department considered several alternatives. The Department considered a fee scale that moved to 100% of cost of care as the parent's income increased to the 185% FPL. The Department rejected this consideration because the requirement would be overly burdensome for low-income families. Likewise, the Department considered and rejected percentages of family income higher than 14.5%.
In § 3040.63(7), the Department proposes a provision for parents who wish to utilize child care providers whose costs are outside the standard child care cost range. Parents who wish to use a provider with lower costs will be entitled to a copayment less than the standard fee, while those who choose a provider with higher costs will be required to copay more than the standard fee. Deviations from the standard fee are in like dollar amounts which are based on the family's FPIG level by family size.
NOTIFICATION REQUIREMENTS General requirements regarding notification (§ 3040.71)
In § 3040.71(a), the Department proposes to include reference to a completed application. An application is not legally effective until it is signed and dated; the current wording is not specific to the Department's intent.
In § 3040.71(b), the Department proposes to delete the eligibility agent's oral notification regarding an eligibility determination. Written notices of determinations resulting in eligibility and ineligibility are proposed to make the eligibility determination process more consistent.
In § 3040.71(f), the Department proposes a requirement that the eligibility agent shall confirm in writing with each parent, when a parent withdraws a child from the subsidized program. This is proposed to provide consistency in the notification process and to provide the eligibility agent with a documented record of the parent's decision in the event of a later appeal.
Content of a written notice of adverse action (§ 3040.72)
In § 3040.72(a)(5), the Department proposes a requirement that a parent who requests continuation of subsidized funding pending the result of an appeal hearing will be required to repay all subsidy paid on his behalf if the eligibility agent's action is upheld by the Bureau of Hearings and Appeals. Currently, parents may request continued funding during the time their appeal is pending and suffer no financial penalty if the decision denies the appeal.
Appeal: continuation of subsidy denied (§ 3040.74)
This section identifies the circumstances under which a parent who appeals may not have subsidy continued for a child.
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