RULES AND REGULATIONS

Title 55—HUMAN SERVICES

DEPARTMENT OF HUMAN SERVICES

[55 PA. CODE CHS. 3041 AND 3042]

Subsidized Child Care Eligibility

[53 Pa.B. 7827]
[Saturday, December 16, 2023]

 The Department of Human Services (Department) deletes Chapter 3041 and adds Chapter 3042 (relating to subsidized child care eligibility) to ensure ongoing compliance with the requirements under the Federal Child Care and Development Block Grant of 2014 (CCDBG), (42 U.S.C. §§ 9857—9858r, as reauthorized by Pub.L. No. 113—186) as set forth in Annex A.

Effective Date

 This final-form rulemaking will take effect upon publication in the Pennsylvania Bulletin.

Contact Persons

 For further information, contact Michael Ordonez, Program Representative, Bureau of Early Learning Policy and Professional Development, 607 South Drive, 4th Floor Rotunda, Harrisburg, PA 17120, (717) 265-8906; or Jessica Sands, Chief, Division of Policy, Bureau of Early Learning Policy and Professional Development, 607 South Drive, 4th Floor Rotunda, Harrisburg, PA 17120, (717) 787-8082. Persons with a disability who require an auxiliary aid or service may use the Pennsylvania Hamilton Relay Service at (800) 654-5984 (TDD users) or (800) 654-5988 (voice users).

Statutory Authority

 This final-form rulemaking is authorized under sections 201(2), 403(b) and 403.1 of the Human Services Code (62 P.S. §§ 201(2), 403(b) and 403.1), which grants the Department the authority to adopt rules and regulations relating to subsidized child care eligibility. Notice of proposed rulemaking was published at 50 Pa.B. 6361 (November 14, 2020).

Background and Purpose

 The purpose of this final-form rulemaking is to update the Department's requirements for the Child Care Works (CCW) program, which is the Department's subsidized child care program. This final-form rulemaking will ensure the Commonwealth's continued compliance with the requirements under the CCDBG and allow the Commonwealth to continue to receive Child Care and Development Funds (CCDF). The CCDBG, along with section 418 of the Social Security Act (42 U.S.C. § 618), authorizes the CCDF. The CCDF is the primary Federal funding source devoted to assisting low-income families that are working or participating in education or training activities with paying for child care and improving the quality of child care for all children. Subsidized child care is a benefit made available through limited Federal and State funds. This final-form rulemaking provides the eligibility criteria a parent or caretaker must satisfy to obtain and maintain assistance with child care costs through the CCW program. This final-form rulemaking also sets forth the procedures the eligibility agency shall follow in administering the CCW program.

 The Department last amended the subsidized child care eligibility regulations in 2012. Since that time, the CCDBG was updated, and now several of the Department's codified regulations, including the minimum eligibility periods, no longer mirror the CCDBG requirements. Because of the many changes under the reauthorized CCDBG, the Department is replacing its previous regulatory chapter, Chapter 3041, with Chapter 3042. This final-form rulemaking is, therefore, needed to satisfy the updated requirements as set forth in the CCDBG, which includes minimum 12-month eligibility periods, continuous eligibility irrespective of increases in earnings (within the Federal eligibility limit of 85% of the State Median Income (SMI)), and temporary changes in work, education or training during the 12-month eligibility period.

 Additional changes consistent with CCDBG requirements also include establishing periods of presumptive continued eligibility at redetermination for a parent or caretaker who will be starting the parent or caretaker's job within 92 days of the redetermination date; prohibiting subsidy enrollments at a provider for whom the Department has revoked or refused to renew a certificate of compliance; allowing a parent or caretaker receiving subsidized child care services the same option as private-pay parents or caretakers to elect to hold their child back from attending kindergarten for 1 additional year; and increasing the total number of paid absences per year. This final-form rulemaking is therefore consistent with all CCDBG requirements.

 This final-form regulatory package was originally submitted to the Independent Regulatory Review Commission (IRRC) on March 23, 2023. In response to comments the Department received, from both early learning advocates and providers, the Department requested IRRC to disapprove the final-form regulatory package at the public meeting on May 18, 2023, in order for the Department to revise the final-form regulation package. On June 20, 2023, the Department received IRRC's disapproval order which cited concerns regarding reasonableness and economic and fiscal impacts of the regulation due to the removal of the provision relating to provider charges. The Department revised the final-form regulatory package based on the IRRC disapproval order and comments from the regulated community and subsequently resubmitted the revised regulatory package.

Public Comment

 Following the publication of the proposed rulemaking, the Department received comments from 18 commentators during the 30-day public comment period and two letters from commentators after the close of the public comment period. The comments came from 9 child care operators and 11 advocacy organizations. The Department notes that one commentator, the Pennsylvania Child Care Association, provided a comment that was received twice, and so they were duplicates. The majority of comments voiced general approval for the Department's rulemaking. There were several comments that noted disagreement in specific areas or that stated suggestions for specific changes as further discussed as follows and in the Department's comment and response document.

 During the public comment period, the Department received extensive comments from the Community Justice Project (CJP) about several areas of the rulemaking. After close of the public comment period, the Department also received comments from IRRC, some of which echoed the comments received from CJP as well as other commentators. Also following public comment, the Department met by means of video-conference with CJP on four occasions to discuss their feedback. Specifically, the Department met with CJP on March 9, March 18, March 30 and April 6, 2021, during which times the Department and CJP jointly reviewed and discussed all of CJP's written comments.

 The major comments received on the proposed rulemaking are summarized as follows. In addition, to specifically address all comments received during the public comment process, the Department created a separate comment and response document, which is available on the Department's web site at https://www.dhs.pa.gov/Services/Children/Pages/Child-Care-Works-Program.aspx. The Department also filed the separate comment and response document with IRRC, the legislative committees, the Legislative Reference Bureau and the commentators along with this final-form rulemaking.

Discussion of Comments and Major Changes

 The Department revised this final-form rulemaking in response to and in consideration of the comments received from commentators and IRRC. The Department finds that IRRC summarized the major comments noted by commentators. As a result, the Department will use IRRC's comments as a blueprint for discussion of the major comments received. The following provides a summary of the major changes from the proposed rulemaking to this final-form rulemaking, followed by a section-by-section description of the final-form provisions.

 1. General Provisions; Definitions

 IRRC provided feedback on the definitions of ''family,'' ''fraud,'' ''homelessness,'' ''maternity or family leave,'' ''period of presumptive eligibility,'' ''prospective work, education or training,'' ''self-declaration'' and ''training.''

 For ''family,'' IRRC requested for that definition to be revised to include all types of training. The Department revised the definition as requested to include adult basic education, English as a second language course work, a high school or a GED program, an HSE degree, an internship, clinical placement, apprenticeship, lab work or field work required by a training institution, or a post-secondary program leading to a degree, diploma or certificate.

 For ''fraud,'' citing to a commentator's question asking if a parent or caretaker commits fraud when income exceeding 85% of the SMI is not reported during the eligibility period and a child continues to receive subsidized care, IRRC requested for the Department to explain whether that is fraud and to clarify, if necessary, the definition of ''fraud.''

 Fraud is not committed when income exceeding 85% of the SMI is not reported during the eligibility period. Further, the language ''at the time of application or redetermination'' limits the definition of ''fraud'' to those specific instances, which more clearly involve affirmative representations of income. Instead, situations involving a parent or caretaker whose income exceeds 85% of the SMI during the eligibility period while continuing to receive subsidized care are treated as an overpayment. See §§ 3042.172 and 3042.176 (relating to eligibility agency responsibilities regarding overpayment; and collection). As such, the Department declines to make the suggested changes.

 For ''homelessness,'' IRRC recommended revisions to include the child's parent or caretaker. In response, the Department made the requested revision, and noted that inclusion of parents and caretakers in the definition is consistent with the CCDF's usage of homelessness because the CCDF references homeless families, which includes the child and the child's parent or caretaker. See 45 CFR 98.51 (relating to services for children experiencing homelessness).

 For ''maternity or family leave,'' the Department deleted the term from this final-form rulemaking because the term was deleted from all but one instance of usage following changes made in §§ 3042.19 and 3042.147 (relating to subsidy continuation; and presumptive continued eligibility at redetermination). See § 3042.68(3) (relating to verification of circumstances relating to a decrease in copayment). After review of that provision in § 3042.68(3), the Department determined the plain usage of the wording clearly prescribes the requirement. Similarly, the Department deleted the term ''owner or operator of a child care facility'' because the term was not used as such in the previous chapter's requirements, the proposed rulemaking or this final-form rulemaking.

 For ''period of presumptive eligibility,'' IRRC requested that the substantive language be deleted from the proposed definition and placed into the body of the regulations. In response, the substantive timing provisions from the proposed definition of ''period of presumptive eligibility'' are amended in the final-form definition and are added to § 3042.147(a) to clarify that a period of presumptive eligibility is temporary and shall not exceed 92 calendar days from the date of the redetermination. Notably, IRRC's comment for ''period of presumptive eligibility'' also applies to the time frames in the proposed definitions of ''prospective work, education and training'' and ''self-declaration.'' As such, the Department makes changes to clarify that prospective work, education and training refers to future employment, education or training that has a begin date and is verified by the employer, school official or training official. Further, the Department makes changes to § 3042.34(a)(1) (relating to prospective work, education and training) so that the 30-day time limit is stated with reference to the date the parent or caretaker signs and dates the application for subsidized child care, as well as changes to § 3042.34(a)(2) to ensure consistency with the definition of ''prospective work, education or training,'' which must be verified by the employer, school official or training official. Similarly, the Department makes changes to the definition of ''self-declaration'' to delete the time frame from the definition and to clarify that it refers to a written statement that is signed and dated and provided by the parent or caretaker for the purpose of establishing financial or nonfinancial eligibility pending verification as described under § 3042.64 (relating to self-declaration).

 For ''training,'' IRRC requested for the definition to be clarified to include additional types of adult education and postsecondary study and asked if it was necessary to specify the length of time for a postsecondary degree program. IRRC cited to a commentator who observed the definition did not include the two most common forms of adult education—GED and HSE programs. In response, the Department makes changes to delete the time frame for the postsecondary degree program and add GED and HSE to the final-form definition. Similarly, and in response to a public comment, the Department makes changes to the definition of ''education'' to include GED and HSE programs. The Department notes that the acronyms ''CRNP,'' GED,'' ''HSE'' are added on final-form because the acronyms are used in more than one section of this final-form rulemaking.

 In addition, the term ''personal interview'' is added on final-form following feedback from several commentators about the importance of removing barriers for parents or caretakers who struggle to participate in the face-to-face meetings and allowing telephone contact to satisfy the face-to-face requirement. The Department notes especially that telephone contact may satisfy the requirement, and so the requirement does not require in-person meetings. As such, the term ''face-to-face'' is outdated and misleading because a face-to-face meeting implies an in-person meeting. The Department makes changes to clarify the terminology and better state the requirements in response to public comments about removing barriers for parents or caretakers. Specifically, the Department defines the term ''personal interview'' in § 3042.3 (relating to definitions), which refers to an informational meeting held between the eligibility agency and the parent or caretaker, which can take place either in person, by telephone or by other means approved by the Department. The added term, and its definition, is consistent with terminology used elsewhere in the Department's regulations. See §§ 123.22 and 133.23 (relating to definitions; and requirements). These changes will improve access for parents and caretakers by ensuring that personal interviews are conducted within 30 calendar days in a manner and format best suited to the parent or caretaker's needs, availability and personal circumstances. The Department amends all references to ''face-to-face meeting'' in this final-form rulemaking with the term ''personal interview'' to clarify that a meeting can take place in person, by telephone or by other means approved by the Department. The changes in terminology are made in §§ 3042.56, 3042.63, 3042.114, 3042.115 and 3042.117. These changes remove barriers for parents and caretakers by clearly stating there are multiple methods to complete a personal interview, including flexibilities to benefit parents and caretakers that may not be available for a face-to-face meeting as previously required.

 As a result of the change in terminology to ''personal interview,'' the Department determines that proposed § 3042.56(e) (relating to personal interview) is no longer necessary. This subsection is deleted from this final-form rulemaking, and the provisions are reordered accordingly. Because subsection (e) is deleted, proposed § 3042.56(f) is changed to § 3042.56(e). Similarly, the Department updates the headings for § 3042.56 and § 3042.114 (relating to personal interview requirements for former TANF families) to reflect the clarified personal interview requirements.

 2. Parent Choice and Payment of Provider Charges

 IRRC inquired how does the Department ensure that relatives who are providing child care meet the Department's standards. Further, IRRC inquired how does the Department implement the goals of quality of care under § 3042.12 (relating to parent choice) and how do the procedures ensure the protection of the public health, safety and welfare. As provided under § 3042.12(a), a family may choose child care from a provider that agrees to comply with the Department's standards for provider participation. As part of this agreement, all relative providers must enter into and follow the terms of the Department's Relative Provider Agreement (Agreement) to receive payment from CCDF funds. The Agreement requires that relative providers meet State Child Abuse, National Sex Offender Registry Check, and Federal and State Criminal History Requirements prior to approval and every 60 months thereafter, which aligns with requirements for providers at regulated child care facilities and the CCDBG. Relatives must obtain Federal criminal clearances at their own expense, which is approximately $23, and the costs of the other required clearances are addressed in the Agreement. The Department notes that costs relating to criminal history clearances are not new and are outside this final-form rulemaking. Under the Agreement, the relative provider must give the eligibility agency written notice no later than 72 hours after their or anyone in the household's arrest, conviction or notification of being listed as a perpetrator of child abuse in the Central Register.

 The Agreement also requires compliance with health and safety practices relating to handwashing, diapering, toileting, and the preparation and handling of food. Additionally, all relative providers must complete 3 hours of approved mandated reporter training prior to approval, and that this training must be completed every 5 years. The relative provider must submit the certificate of completion along with the results of the Federal criminal history clearance to the eligibility agency at the personal interview. Also, the Agreement requires that the relative provider's home have a working smoke detector on each level in which child care is provided, and that conditions in the home not pose a threat to the health and safety of children in care. The requirement is consistent with the requirements of section 1016 of the Human Services Code (62 P.S. § 1016). The Agreement further requires that cleaning and toxic materials shall be stored in their original labeled containers or in a container that specifies the contents; kept in a locked area or in an area where children cannot reach them; and kept separate from food, the areas where food is prepared or stored and the areas where child care takes place. Also, any weapon or firearm must be kept in a locked cabinet; any ammunition must be kept in a separate, locked area; and the relative provider must tell the child's parent or caretaker that weapons, firearms or ammunition are in the provider's home. The Agreement requires that the relative provider not use any form of punishment, including spanking; and that the parent or caretaker be allowed to see their child at any time the provider is providing care. The requirements in the Agreement satisfy CCDF requirements, and they are consistent with several of the prescribed requirements for child care providers at regulated facilities. These requirements all ensure that children receiving subsidized child care services from a relative provider receive at least the same quality of care as children enrolled at regulated child care facilities.

 The Department notes that the Agreement for relative providers has been in use for over 15 years, and that the terms ensure the protection of the public health, safety and welfare of children receiving subsidized child care services both initially and on an ongoing basis by ensuring substantially the same standards for quality of care as are provided for at regulated child care facilities. Finally, these provisions under § 3042.12 are consistent with the deleted provisions under Chapter 3041.

 Next, for § 3042.14 (relating to payment of provider charges), IRRC noted that the proposed rulemaking prohibited new subsidy enrollments but that the Department would continue paying for current enrollments at providers who are not meeting basic health and safety requirements. IRRC asked for an explanation of the reasonableness of the requirement, noting that:

''. . .this section does not allow new enrollments 'when the Department determines the provider is not meeting health and safety requirements, and revokes or refuses to renew the provider's certificate of compliance.' The Department goes on to say that to 'provide continued stability and support already established staff and child relationships, the Department will continue to pay for children who are currently enrolled at the time of the sanction.' We ask the Department to explain in the Preamble to the final-form regulation the reasonableness of this subsection and how it protects the public health, safety and welfare of children currently receiving care at these facilities. We will review the Department's answer when determining if this regulation is in the public interest.''

 After careful consideration, the Department makes changes to §§ 3042.12 and 3042.14(h) to ensure subsidy dollars are not paid to providers whose certificate of compliance has been revoked or refused to renew by the Department's Bureau of Certification Services, which is responsible for enforcing the Department's health and safety standards. Specifically, the Department adds a subsection under § 3042.12 and deletes the word ''new'' from § 3042.14(h) to ensure that limited public funds are not being paid to providers who cannot meet baseline health and safety standards. The added subsection under § 3042.12 clarifies that the Department may suspend the subsidy and will not terminate the subsidy, and so there is no impact to a family's eligibility, which will continue for the balance of the 12-month period. This change strikes the appropriate balance between ensuring parent choice and ensuring that scarce public dollars are not being paid to facilities that do not satisfy baseline health and safety requirements. Also, parents are free to choose child care services at another provider who is meeting baseline health and safety requirements. The Department will assist these families with locating another provider to ensure continuity of care. Currently, the Department already assists families with locating another provider in cases where an emergency revocation to a facility is issued because circumstances at the facility justify immediate closure and removal of the children from care.

 As for the numbers of families these changes will impact, the Department conducted a review of the instances of revocations and refusals to renew for State Fiscal Year (SFY) 2021-2022, and after review, the Department noted there were approximately 31 revocations or refusals to renew that impacted on 447 enrollments. Notably, not all certified child care providers participate in the CCW program. For SFY 2021-2022, the numbers of facilities issued revocations or refusals to renew were 20 child care centers, 3 group child care homes and 8 family child care homes. The Department notes the bulk of the enrollments, 428, were located in child care centers, and the noted facilities were located in various regions throughout this Commonwealth. The Department also notes that it upholds health and safety protections for children in care throughout this Commonwealth irrespective of the provider type, the provider's regional location and whether a provider participates in the CCW program. The fiscal impact to providers and the impacts on parent choice for families are outweighed by ensuring that public funds are directed to providers meeting basic health and safety requirements to ensure the protection of the health and safety of this Commonwealth's most vulnerable and disadvantaged children, as consistent with the CCDF. The Department reiterates that it will assist impacted families with locating another provider to ensure continuity of care and parent choice. Further, only providers whose certificate of compliance has been revoked or refused to renew by the Department's Bureau of Certification Services will be impacted because the Department will no longer pay for CCW program enrollments at these providers. The Department notes these providers can still provide services to private-pay families should the provider choose to appeal the Department's revocation or nonrenewal determination. The Department reiterates the statements from the preamble of the Federal regulation, that ''we cannot in good conscience continue to use any Federal taxpayer dollars to support sub-standard child care for our nation's most vulnerable and disadvantaged children.'' The change is also consistent with the methods of administration of funds by the Department under the American Rescue Plan Act of 2021 (Public Law 117-2) (ARPA) because subsidy funds are public dollars that should not be paid to providers who are not meeting baseline health and safety requirements. The Department notes that an eligible provider refers to a provider that is certified and that ''meets applicable State and local health and safety requirements.'' See the definition of ''eligible child care provider,'' section 2202 of the ARPA. Further regarding any lost enrollments, the Department is clarifying that the cost is speculative and varies depending on the provider type as well as the numbers of enrolled children who are receiving subsidized child care services. In addition, any fiscal impact due to lost enrollments are the result of the facility's failure to comply with the Department's licensure regulations and not this final-form rulemaking.

 The Department also received feedback from four commentators who suggested that the Department temporarily prohibit subsidy enrollments at the Department's discretion in cases where there is a complaint investigation involving the serious physical injury of a child, the sexual assault of a child, the death of a child and any other egregious acts that put the safety of children into question. Specifically, the commentators stated that ''we would support the Department having the authority to temporarily prohibit subsidy enrollments at their discretion in consideration of current complaint investigations involving the serious physical injury of a child, sexual assault of a child, death of a child, etc.'' The Department thanks the commentator for this comment. The Department's Bureau of Certification Services immediately initiates complaint investigations involving all allegations impacting on health and safety, and further, the Bureau of Certification Services will always issue an emergency revocation sanction upon investigation as legally warranted by the facts and circumstances. Notably, an investigation is not by itself a determination of noncompliance or wrongdoing. After careful consideration, the Department declines the suggested prohibition because of potential due process concerns during the investigatory phase.

 Further regarding provider charges under § 3042.14(d), in response to the proposed rulemaking, two commentators disagreed with the provider being permitted to charge the difference between the provider's published rate and the CCW payment rate. One of the commentators noted that paying the difference between the CCW payment rate and the private rate ''is a problem that should be addressed through tiered reimbursement along with regular and adequate upgrades to DHS's provider payment rate'' and not made up for by billing low-income parents or caretakers to make up the difference. The commentator continued, noting the provision as it exists ''also undermines parent choice of providers, arguably in violation of DHS and federal policy establishing the rights of parents to entrust the care of their children to the child care provider of their choice.''

 In addition, the Department received comments on this final-form rulemaking regarding the ability of providers to charge the difference between the CCW payment rate and the provider's private rate. Specifically, following submission of this final-form rulemaking, and prior to the IRRC public meeting, the Department received four comments from two commentators; after the public meeting, the Department received an additional comment from one of these commentators to provide suggestion for modification of the provision. In response to feedback following submission of the final-form rulemaking, the Department requested IRRC to disapprove the final-form regulatory package at the public meeting on May 18, 2023, for the Department to revise the final-form regulation package. On June 20, 2023, the Department received IRRC's disapproval order which cited concerns regarding reasonableness and economic and fiscal impacts of the regulations.

 Due to the complexity and financial impact regarding this provision, the Department has determined to maintain the status quo and preserve this provision at this time. Specifically, the Department edited this language to exactly mirror the language of § 3041.15(c). To further examine this issue and obtain additional data regarding access and affordability, the Department intends to hold additional stakeholder meetings with both providers and early learning advocates and families to discuss the extent to which these additional charges are being required.

 The Department acknowledges and thanks the stakeholders and advocates who have provided suggestions on how the Department should resolve the provision. Once additional data has been collected and examined, with a further review of the potential for increased reimbursement rates, the Department will determine next steps. If the data collected indicates concerns over Federal compliance, the Department will continue discussions with all parties to consider changes to the provision to ensure ongoing Federal compliance. To clarify, this additional data is currently being collected, and after the data is collected and analyzed, informational meetings will be scheduled with providers and advocates to find a balance that ensures affordability and equal access for CCDF families and improved financial solvency for providers. Restoring the provision to the status quo at this time ensures there are no economic or fiscal impacts to the regulated community, of which 70% are small businesses.

 As to the maximum copayment amount, the Department is codifying the existing copayment limitation and there is no resulting fiscal impact under this final-form rulemaking. Further, the Department pledges to continue to work toward ensuring the CCW payment rate provides equal access to child care for low-income families. See 63 FR 39936, 39959 (July 24, 1998). As well, the Department notes that providers who wish to provide higher quality child care through the Keystone STARS program may be eligible for assistance with costs. This codified limit continues to benefit families who will no longer be faced with paying a greater share of their income on child care than reflects the National average. The Department is further emphasizing that there have been rate increases three times during the time of preparing this final-form rulemaking that have been made possible through funds from the ARPA. Finally, the Department notes that the Commonwealth was awarded $452 million in discretionary funding from the ARPA, and that the Administration for Children and Families, Office of Child Care provided to the Department recommendations on the use of those funds. Consistent with the recommendations, a total of $121.9 million is being used over 4 fiscal years to support the codified reduced family copayments for the CCW program. This funding is projected for allocation for Fiscal Years 2021—2024. Similarly, the increased subsidy base rates are funded through the same ARPA program.

 3. Subsidy Limitations, Suspension, and Financial Eligibility

 IRRC first requested explanation for how the Department will implement the limitation for operators under § 3042.15(c) (relating to subsidy limitations), and for how the Department determines whether space is available to enroll the child of a parent or caretaker who is the operator of a child care facility, citing to a commentator who expressed concern with the requirement, noting an employee who was denied subsidized child care. IRRC requested explanation as well for how a facility will be economically impacted and the reasonableness of the requirement.

 In response to the comments received, the Department amends § 3042.15(c) to clarify that a child who is receiving care in a child care facility that is owned by the child's parent or caretaker is not eligible for subsidized child care services. The amendments delete references to the availability of space because the concern is only whether a parent or caretaker is being paid to care for their own child, which runs contrary to the definition of ''child care.'' As defined in this final-form rulemaking under § 3042.3, ''child care'' is ''care instead of parental care for part of a 24-hour day.'' To avoid confusion and better clarify this requirement, the Department deletes the term ''owner or operator of a child care facility'' from § 3042.3 because the term is not used in this final-form rulemaking.

 In response to the inquiry regarding economic impact and implementation of this amended provision, the final-form subsection is narrowly tailored such that it pertains only to situations where a parent or caretaker is the owner of a certified child care facility. To the extent there is such an impact, the Department determines that the cost is outweighed by the fact that subsidy dollars are scarce, public funds, and so this final-form subsection prohibits only situations in which the owners of certified child care facilities are paid subsidy dollars to care for their own children. Operators may still receive subsidy funding for children in care who are not their own children. Further, the final-form language expands eligibility because the subsidy limitation only relates to a child receiving care in a facility owned by an eligible child's parent or caretaker. If otherwise eligible, subsidized child care may be received at a different facility.

 Second, regarding final-form § 3042.15(d) and § 3042.57(c) (relating to waiting list), which are substantively the same, IRRC requested clarification. Specifically, IRRC asked first, why the 30-day requirement is reasonable; second, how parental choice is accommodated; and third about implementation procedures for granting exceptions. IRRC also cited to commentators who expressed concerns over parent choice and requested changes to ensure that a child maintains eligibility when circumstances beyond a parent or caretaker's control prevent enrollment in child care.

 Thirty days is a reasonable time frame to enroll a child with a child care provider because a parent or caretaker is working or is enrolled in training or education and is in need of child care. In many instances, a family already has a provider that they are using and they only need assistance paying for the case. In other situations, the family knows what provider they want to enroll the child with, but again, has not been able to do so because of financial circumstances. Families are eligible for subsidized child care because they are working or enrolled in education or training and need child care. If the family needs assistance with finding a provider, the eligibility agency will assist the family with resource and referral. Second, parent choice is maintained. As stated previously, in many instances a family already has a provider or knows what provider the family wants to use. The only remaining issue is the family's financial circumstance and the need to submit an application for child care subsidy. In response to comments received, the Department clarifies this section to provide that a child is ineligible for failure to enroll within 30 days unless the eligibility agency determines that enrollment has been delayed because of circumstances outside of a parent's or caretaker's control. The Department also clarifies that if a parent or caretaker fails to provide a circumstance outside the parent's or caretaker's control, the child is ineligible. And further, if a circumstance outside of a parent's or caretaker's control is provided, the child will remain eligible. See §§ 3042.15(d) and 3042.57(c). As explained as follows and in the Department's comment and response document, the Department makes congruent changes to §§ 3042.15(d) and 3042.57(c) to ensure that a child maintains eligibility when circumstances beyond a parent or caretaker's control prevent enrollment in child care. The 30-day requirement strikes a balance between offering parental choice and efficiently administering the program. Simply put, families are on the wait list who also need subsidized child care, and spots cannot be held open in perpetuity if care is not needed or the parent or caretaker is not sure when it might be needed. The Department reiterates that families are eligible for subsidized child care because they are working or enrolled in education or training and need child care.

 Next, IRRC requested explanation over implementation of proposed § 3042.20(c) (relating to subsidy suspension) and for the Department to clarify the number of days considered to be excessive to establish a standard that is predictable and enforceable. After careful consideration, the Department made changes to delete subsection (c) from § 3042.20 and created § 3042.22 (relating to subsidy termination). Under this section, an eligibility agency is required to terminate subsidy prior to the next redetermination in any of the following circumstances: (1) the child has been absent for 60 consecutive days of unexplained non-attendance in care, and the eligibility agency has attempted at least three times to contact the parent or caretaker regarding the child's absences; (2) the child no longer resides in this Commonwealth; (3) a parent or caretaker committed substantiated fraud or an intentional program violation; or (4) a parent or caretaker voluntarily requests discontinuance of the subsidy. This section also clarifies that if the eligibility agency moves to terminate the subsidy in any of the stated circumstances, then notice will be sent to the family as required under § 3042.155 (relating to notice of adverse action). In addition, implementation of this provision is also discussed as follows and in the Department's comment and response document.

 For financial eligibility under § 3042.31 (relating to financial eligibility), IRRC asked for the Department to address a commentator's concerns over the income ranges stated for redetermination in subsection (c). In addition, IRRC requested explanation over implementation of these income limits and why it is necessary to state the requirement with reference to both the Federal Poverty Income Guidelines (FPIG) and the SMI. Lastly, IRRC noted the comment applies as well to § 3042.97 (relating to use of the Federal Poverty Income Guidelines and State Median Income).

 After review and consideration of these comments, the Department amends § 3042.31(c) to add the language ''whichever is less'' to clarify the requirement. The CCDBG prescribes the income limits in terms of the SMI. Meanwhile, as permitted by the CCDBG, the Department utilized a graduated phase-out approach that satisfies all CCDBG requirements, with the second tier set at an amount lower than 85% of the SMI for a family of the same size, but above the initial eligibility threshold. This approach comports with all Federal requirements as stated in 45 CFR 98.21(b) (relating to eligibility determination processes).

 With respect to implementation, income is assessed initially that it cannot exceed 200% of the FPIG. If determined eligible, subsidy will be provided, if funds are available, and will continue for the entirety of the eligibility period of 12 months until the redetermination date, so long as neither the family's income exceeds 85% of the SMI, nor the provisions regarding early termination under § 3042.22 apply. Subsequently, at redetermination, under this final-form rulemaking, the family's income may not exceed 235% of the FPIG or 85% of the SMI, whichever is less. Currently, as part of the 2022-2023 Budget Implementation, families may maintain financial eligibility at up to 300% of the FPIG. See section 1730-F.1(16) of the Fiscal Code (72 P.S. § 1730-F.1(16)). This final-form rulemaking, however, does not reflect this additional income limit increase because the increase is not permanent at the time of drafting this final-form rulemaking and is only provided for the current fiscal year. To the extent additional funding is maintained in future fiscal years, the Department will re-examine updating its regulations as needed. It is necessary to include requirements stated with reference to both the FPIG and the SMI because agencies that establish family income eligibility at a level less than 85% of SMI are Federally required to provide a graduated phase-out by implementing a two-tiered eligibility threshold with the second tier set at 85% of SMI or an amount lower than 85% SMI, but is above the initial threshold for eligibility. Providing initial eligibility requirements with reference to the FPIG is consistent with the requirements under Chapter 3041. The Department notes that the initial income limit of 200% of the FPIG is lower than 85% SMI, as is 235% of the FPIG for most families, and so the final-form requirements are consistent with the Federal requirements.

 In addition, an eligibility agency will collect only the verification that is necessary to make an eligibility determination. To comply with the CCDF regulation under 45 CFR 98.20(a)(2)(i) (relating to a child's eligibility for child care services), a parent or caretaker is required to submit notification of an income increase during the family's 12-month eligibility period only when the family's annual income exceeds 85% of the SMI. Parents and caretakers may also notify the eligibility agency at any time when circumstances change that might lower the family's copayment or increase the family's subsidy. Upon notification of a change in circumstances, under § 3042.86 (relating to change reporting and processing), the eligibility agency is required to review the change and reduce the family's copayment. This final-form rulemaking, therefore, simplifies the regulatory requirements as they relate to application, verification and the reporting of changes; all of which are consistent with CCDBG requirements.

 4. Immunization

 After noting inconsistencies with the requirements under § 3042.35 (relating to immunization) and the child care facilities regulations under §§ 3270.131, 3280.131 and 3290.131 (relating to health information), IRRC requested amendments to align the requirements in § 3042.35 with the child care facilities regulations or to explain why it is unnecessary to do so.

 The Department agrees. In response, the Department makes amendments to align the section's requirements as requested by IRRC and to ensure compliance with the CCDF to ensure a grace period is extended to families experiencing homelessness and families with foster children. Specifically, changes are made to correct typographical errors by deleting the hyphens after the words ''up'' and ''to'' in the phrase ''up to date'' and to delete the reference to the American Academy of Pediatrics and replace it with reference to the Advisory Committee on Immunization Practices (ACIP). Changes are also made to align the exemption as well as the timing requirements with the child care facilities regulations and the requirements of the CCDBG. Specifically, the language is changed to clarify that subsidy will be authorized for up to 60 days from the date of enrollment, or, if the child is experiencing homelessness or is a foster child, then the subsidy is authorized for up to 90 calendar days to obtain up-to-date immunizations or provide documentation of exemption. These changes ensure consistency with the child care facilities regulations, as well as compliance with the CCDF, and that a grace period is extended to families experiencing homelessness and foster children in recognition that these populations of children may struggle with providing timely documentation. The Department also notes this requirement is not new and that Chapter 3041 provided for authorization for up to 90 calendar days. The Department also notes that families have up to 30 days to enroll in child care, and so the authorization of eligibility for subsidized child care is consistent with health and safety requirements because children may not be enrolled in care upon authorization. Lastly, once children are authorized and enroll in care, the 60-day period begins, and documentation of immunizations or exemption, as applicable, must be provided to satisfy the requirement. For children who are experiencing homelessness or are in foster care, consistent with CCDF requirements, the Department's eligibility agency authorizes subsidy for an extra 30 days (or 90 days total) to ensure that this vulnerable population of children maintains eligibility while awaiting enrollment.

 As stated previously, this provision is amended in response to feedback from IRRC and commentators recommending revision to cite to the ACIP and to state the exemption requirements in subsection (a)(1) and (2) consistently with the child care facilities regulations in §§ 3270.131, 3280.131 and 3290.131. The added provisions clarify the statements must be signed, dated and kept in the child's record.

 5. Disability and Self-Certification

 Regarding disability under § 3042.37 (relating to eligibility of households including a parent or caretaker with a disability), IRRC asked whether individuals enrolled in treatment programs, such as mental health services and drug and alcohol treatment, qualify for subsidized child care services, and asked for added standards for families with two parents or caretakers with disabilities, or to explain why doing so is unnecessary. IRRC further asked whether the Department intends for a court order or safety plan to be a condition of eligibility. A commentator also noted disagreement, stating that requiring parents to verify that their disability precludes employment to continue to receive subsidy between redeterminations places a significant burden on them that is distinguishable from the requirements for parents who lose employment for other reasons, thereby raising a potential issue of unlawful discrimination.

 After careful consideration, the requirements of this section are revised and reorganized for consistency with 12-month eligibility. The Department notes that treatment for a disability includes treatment for mental health services and drug and alcohol treatment. Further, the Department makes changes to § 3042.37 to state the requirements for single parent or caretaker households and two-parent or two-caretaker households, as requested by IRRC. The Department notes that families in circumstances where the parents or caretakers are disabled and not meeting the work, education or training requirements at application and redetermination may still be eligible for care through Head Start or Pre-K Counts. The Department also notes that a parent or caretaker must provide verification of a disability with medical documentation, unless the parent or caretaker is meeting the work, education and training requirements. If a medical professional states a parent or caretaker is unable to work or care for the children, then they are exempt from work requirements in a two-parent household. Further, § 3042.37(e)(3) applies to situations where a parent or caretaker has a need to attend treatment for a disability and is unable to care for the child. The CCW program is intended to empower working parents to make their own decisions regarding the child care services that best suits their family's needs, and so satisfaction of the work requirements is required unless otherwise specified. Lastly, as part of the revisions to this section, the Department reorganizes the provisions regarding court orders and safety plans as an eligibility requirement. As revised, a two-parent or two-caretaker family may be eligible for subsidized child care when one person is satisfying the work requirement and other person is prohibited from caring for the child due to a court order or a safety plan.

 IRRC also requested the requirements of § 3042.70 (relating to verification of inability to work due to a disability) be clarified without reference to the size of the family. The Department agrees and notes that this section is amended to restate the requirements, as requested, following changes made to § 3042.37 as discussed previously and in the Department's comment and response document.

 After noting that § 3042.63(b)(4) (relating to self-certification) permits a parent or caretaker to self-certify a child's immunization status, IRRC again noted incongruity with the child care facility regulations under §§ 3270.131, 3280.131 and 3290.131, and requested either the Department make changes to § 3042.63 to align with the requirements under the child care facilities regulations or the Department provide an explanation for why it is not necessary to do so.

 The Department appreciates this comment; however, there are distinctions between the licensure requirements under Chapters 3270, 3280 and 3290 (relating to child care centers; group child care homes; and family child care homes) and the self-certification provisions under this chapter. Specifically, this final-form rulemaking concerns only eligibility requirements for subsidized child care, and so it concerns the Department's eligibility agencies, the parents and children who are eligible for and receive subsidized child care services, and the child care providers providing subsidized child care services. In contrast, compliance with Chapters 3270, 3280 and 3290 is measured by the Department's Bureau of Certification staff, and it concerns regulated providers and the health and safety requirements at regulated child care facilities.

 Significantly, § 3042.63 is distinguishable because it uses self-certification to the eligibility agency for purposes of qualifying for subsidized child care only, and not for use for any health and safety licensure requirements subject to the oversight of the Department's Bureau of Certification. This section ensures that the timely provision of documentation does not act as a barrier to eligibility for subsidized child care, as discussed further in the Department's comment and response document. Further, to the extent a child attends a certified facility, any requirements under Chapters 3270, 3280 and 3290 would have to be met. As such, the Department declines to make this change.

 6. Waiting List

 As discussed previously regarding subsidy limitations, IRRC inquired regarding the 30-day requirement, parental choice and implementation of exceptions. As explained previously regarding subsidy limitations, 30 days is a reasonable time frame to enroll a child with a child care provider because a parent or caretaker is working or is enrolled in training or education and is in need of child care. This requirement strikes a balance between offering parental choice and efficiently administering the program. As previously provided, the Department makes congruent changes to §§ 3042.15(d) and 3042.57(c) to ensure that a child maintains eligibility when circumstances beyond a parent or caretaker's control prevent enrollment in child care.

 Regarding the waiting list requirements under § 3042.57 and § 3042.132 (relating to eligibility determination for Head Start), as explained further as follows and in the Department's comment and response document, the Department amends this final-form rulemaking to clarify that the Department will post its methods for priority on its web site. An order of priority may include foster children; children who are enrolled in PA Pre-K Counts, Head Start or Early Head Start who need wrap-around child care at the beginning or end of the program day; newborn siblings of children who are already enrolled; children experiencing homelessness; and teen parents. Otherwise, children are placed on the waiting list on a first-come, first-serve basis with respect to the date for requesting care for a child based on available funding.

 7. Reporting Changes

 IRRC asked for explanation of implementation procedures for when changes in income are reported, and also suggested the Department amend § 3042.86 to better clarify how increases in income will be assessed, particularly for instances when income may have increased in excess of 85% of the SMI.

 In response to the comments received, the Department amends the language of this section for clarity. Under this final-form rulemaking, once a parent or caretaker reports a change in income that would result in the family becoming ineligible, the eligibility agency is required to assess the reported change to determine whether the reported change is an irregular fluctuation or a temporary increase. If the reported change is either an irregular fluctuation or a temporary increase, the eligibility agency will determine there is no change, and eligibility will continue for the remainder of the minimum 12-month eligibility period. If the change, however, is determined to not be an irregular fluctuation or temporary increase, the eligibility agency is required to terminate the subsidy by issuing an adverse action notice, which states the information specified in § 3042.152 (relating to notice of right to appeal), including the date the family will become ineligible, which would be 13 days from the date the notice was issued. Further, families may appeal notice of adverse action. See §§ 3042.164 and 3042.165 (relating to parent or caretaker rights and responsibilities regarding appeal; and eligibility agency responsibilities regarding appeal). As noted previously, the Department amends § 3042.86 as requested to state more clearly the procedures for assessment and for when the eligibility agency is prohibited from acting on reported information. The comments, responses and changes are more fully discussed as follows and in the Department's comment and response document.

 8. Waivers, Presumptive Eligibility and Appeals

 Following feedback received noting confusion and clarity issues regarding the differences between waivers and presumptive eligibility, the Department reorganizes §§ 3042.141—3042.147 to improve clarity by stating all of the substantive waiver requirements first, and then listing the requirements for presumptive eligibility. Specifically, proposed §§ 3042.144—3042.147 are the final-form §§ 3042.141—3042.144, respectively. Similarly, proposed §§ 3042.141—3042.143 are the final-form §§ 3042.145—3042.147. The Department notes that Chapter 3041 permitted waivers for domestic violence only, and this final-form rulemaking extends waivers to also apply for families experiencing homelessness. As such, under this final-form rulemaking, waivers apply only to families experiencing domestic violence or homelessness.

 For final-form § 3042.145 (relating to domestic and other violence), after noting the section does not address the redetermination process, IRRC requested clarification for how the domestic violence waiver is implemented. As discussed in more detail in the Department's comment and response document, the Department also received feedback from a commentator requesting changes. Regarding implementation, the Department reiterates that granting a waiver excuses the parent or caretaker from meeting certain requirements for up to 92 days, and that the waiver is subject to the requirements specified under §§ 3042.141—3042.144. Specifically, the eligibility agency must act on waiver requests within 15 calendar days after the date of the request. If the waiver is granted, the eligibility agency will send a notice that includes the basis for granting the waiver, and a statement that the eligibility agency will review the waiver circumstances at redetermination. The Department notes that a waiver when granted excuses the parent or caretaker from meeting certain requirements for up to 92 days.

 Once the waiver period expires, the parent or caretaker must provide the verification that was waived or must begin paying the copayment, or both. If these requirements are met, eligibility and payment will continue for the rest of the 12-month eligibility period. If one or more of the waived requirements are not met, or if the individual is determined ineligible, subsidy will be terminated, and a notice of adverse action will be sent as specified under § 3042.155. The family may satisfy the waived requirements at any time before the subsidy is terminated, and once satisfied, the subsidy will continue for the remainder of the eligibility period. If a waiver is denied, the eligibility agency will send a notice explaining the basis for the denial, the right to appeal, the verification that is required to be submitted to grant the waiver and the associated time frames for meeting the verification requirements, and notification of the evidence or information needed to substantiate the waiver request and the associated time frames for providing the information. If denied, the family is not eligible for subsidized child care, and the eligibility agency will generate an ineligible notice as specified under § 3042.144 (relating to general notification requirements for waivers). If granted, the eligibility agency will review the circumstances at redetermination to determine whether a new domestic violence waiver or a waiver for homelessness is warranted. Further, if a domestic violence waiver is not requested to be renewed, the parent or caretaker may apply for a period of presumptive continued eligibility at redetermination as specified under this final-form rulemaking.

 For final-form § 3042.147, IRRC requested explanation from the Department for how the requirement as proposed is consistent with the proposed definition of ''period of presumptive eligibility'' and clarification as needed.

 The Department agrees that further clarification is needed. First, there are two types of presumptive eligibility. The first type is specifically only for families experiencing homelessness, and that is why the requirement is stated differently than the requirement for domestic and other violence. For families struggling with homelessness, the CCDBG requires the Department to establish procedures to ensure the initial eligibility of children experiencing homelessness while required documentation is obtained. This final-form rulemaking establishes periods of presumptive eligibility for children experiencing homelessness to ensure the satisfaction of this CCDBG requirement. See 45 CFR 98.51. For clarity, the definition of ''period of presumptive eligibility'' is amended to provide that it relates specifically to a temporary period of eligibility established at application for families experiencing homelessness. In addition, the Department adds the term and definition for ''presumptive continued eligibility at redetermination'' to better describe eligibility requirements at the time of redetermination and to prevent families from needlessly cycling on and off from services. Presumptive continued eligibility under this final-form rulemaking is available to any family who satisfies the requirements at redetermination. Specifically, any family who is not meeting the work hours requirement but has a job to return to within 92 days can be determined presumptively eligible and maintain services. In this scenario, the redetermination is completed on day 92 and if the parent or caretaker is satisfying the work hours requirements, then eligibility will continue for the remainder of the 12-month eligibility period. If the parent or caretaker is not meeting the work hours requirements, then the eligibility agency will take the necessary steps to terminate the temporary eligibility with proper notification to the family as required under § 3042.155. The changes are also discussed in the Department's comment and response document.

 For § 3042.163(a)(1) (relating to subsidy continuation during the appeal process), IRRC inquired about the ''postmarked and received'' language and requested clarification of the language to establish a procedure the parent or caretaker is able to comply with.

 In response to this comment, the Department replaces the word ''received'' with ''delivered'' to clarify that the appeal must be either postmarked by the date when sent by mail or delivered by the date when sent by other methods, such as hand-delivery, facsimile or electronically. Additionally, the Department makes the same change in § 3042.166(b) (relating to hearing procedures) and § 3042.163(a)(1).

 9. Self-declaration

 IRRC also suggested the time frames from the definition of ''self-declaration'' be removed. The Department agrees and amends the definition of ''self-declaration'' in this final-form rulemaking to delete the timing provisions and to clarify that the statement must be signed and dated. Following changes made in § 3042.64 to ensure consistency with minimum 12-month eligibility periods, the Department further modifies the definition to clarify that self-declaration can be used for purposes of establishing financial or nonfinancial eligibility pending verification as described under § 3042.64. Further, the Department notes that changes are made to delete proposed § 3042.67(6) (relating to verification of work, education and training) because self-declaration requires follow-up documentation within 30 days, and meanwhile, under this final-form rulemaking, once eligibility has been determined, the eligibility period lasts a minimum of 12 months, as consistent with the CCDF.

 For § 3042.64, subsection (d) is amended to clarify the requirement following the Department's review. Specifically, the word ''verification'' is deleted, and the language is modified to clarify that the provision applies if a parent or caretaker uses self-declaration to establish eligibility as described in subsection (a). This amendment is made following changes made to the definition of ''self-declaration.''

 On final-form, § 3042.64(e) establishes that for a parent or caretaker using self-declaration, eligibility is pending verification until another form of acceptable verification is returned to the eligibility agency as required under this section. The addition came about following the Department's review to ensure consistency with the required minimum 12-month eligibility period. The Department reiterates that although self-declaration requires follow-up documentation within 30 days, once eligibility has been determined, the eligibility must last a minimum of 12 months. The added requirement makes clear that the eligibility is pending receipt of the verification required under this section.

 On final-form, § 3042.64(f) establishes that if the eligibility agency does not receive the verifications as required, or if the family is determined ineligible, the eligibility agency shall take the necessary steps to terminate the eligibility pending verification with proper notification to the family as specified in § 3042.155. This addition is added for clarity to provide for instances when verifications are not provided, or for when the family is determined ineligible.

 10. Payment Rates and Barriers to Eligibility

 Some commentators requested a major rate increase to provider reimbursement. In response, payment rates were increased effective March 1, 2021, again on January 1, 2022, and again on March 1, 2023, prior to this final-form rulemaking. Specifically, the rates were aligned on a regional basis, and then increased to promote and better address concerns over equal access, as is consistent with requirements of the CCDBG. See 45 CFR 98.45 (relating to equal access).

 To further address existing barriers to eligibility, the Department amends §§ 3042.68, 3042.70, 3042.71, 3042.72 and 3042.73 to ensure the requirements are consistent and are not an unnecessary barrier to eligibility. Specifically, the Department notes that required medical documentation may be verified and provided by a physician, a physician's assistant, a CRNP or a psychologist, and further, that the proposed terminology is more restrictive than the terminology found in similar provisions in the child care facilities regulations. As such, the Department makes changes as described in the section-by-section discussion as follows, and as discussed in the Department's comment and response document.

 Also, in furtherance of removing existing barriers to eligibility, the Department deletes instances requiring a ''face-to-face'' meeting as discussed previously. After review, the Department determined the term was outdated and misleading because a face-to-face meeting implies an in-person meeting. To improve clarity, the Department replaces ''face-to-face'' with the added term ''personal interview'' throughout the chapter in this final-form rulemaking. The added term is consistent with terminology used elsewhere in the Department's regulations. See §§ 123.22 and 133.23. The Department notes that ''personal interview'' refers to an informational meeting held between the eligibility agency and the parent or caretaker, which can take place either in person, by telephone or by other means approved by the Department. This updated terminology will improve access for parents and caretakers by ensuring that personal interviews are conducted within 30 calendar days in a manner and format best suited to the parent or caretaker's needs, availability and personal circumstances. These changes remove barriers for parents and caretakers by clearly stating there are multiple methods to complete a personal interview, including flexibilities to benefit parents and caretakers that may not be available for a face-to-face meeting as previously required.

 11. Citations

 IRRC noted seven miscellaneous issues involving citation errors in need of correction. The issues identified were in §§ 3042.3, 3042.21(2), 3042.72, 3042.98(a)(2), 3042.112(a)(3), 3042.131(a) and 3042.161(1). In response, the Department corrects all of the identified citation issues.

 The following is a section-by-section description of the requirements of this final-form regulation:

General Provisions

§ 3042.1. Purpose

 This section establishes the purpose of the Subsidized Child Care Eligibility program.

 There is no change made to this section from the proposed rulemaking to this final-form rulemaking.

§ 3042.2. Scope

 This section establishes the scope of the Subsidized Child Care Eligibility program.

 There is no change made to this section from the proposed rulemaking to this final-form rulemaking.

§ 3042.3. Definitions

 This section establishes definitions for the following terms: ''adjusted family income,'' ''annual income,'' ''appeal,'' ''application,'' ''CAO,'' ''caretaker,'' ''child care,'' ''collateral contact,'' ''copayment,'' ''Department,'' ''disability,'' ''disqualification,'' ''domestic and other violence (domestic violence),'' ''education,'' ''eligibility agency,'' ''eligibility determination,'' ''eligibility redetermination,'' ''employment,'' ''FPIG,'' ''family,'' ''fraud,'' ''Head Start,'' ''homelessness,'' ''income,'' ''maternity or family leave,'' ''maximum child care allowance,'' ''overpayment,'' ''owner or operator of a child care facility,'' ''parent,'' ''period of presumptive eligibility,'' ''period of presumptive continued eligibility,'' ''prospective work, education or training,'' ''provider,'' ''published rate,'' ''recoupment,'' ''SMI,'' ''self-certification,'' ''self-declaration,'' ''self-employment,'' ''subsidized child care,'' ''subsidy suspension,'' ''TANF,'' ''tiered-reimbursement,'' ''training,'' ''verification,'' ''waiting list'' and ''work.'' These defined terms are used in the substantive provisions of Chapter 3042.

 This section is amended in this final-form rulemaking to improve clarity by adding the acronym ''CRNP'' and a definition for the acronym following changes made in §§ 3042.68, 3042.70, 3042.71, 3042.72 and 3042.73 because the acronym is used in more than one section of this final-form rulemaking.

 The Department modifies the definition of ''education'' following feedback during the public comment period to include the common acronyms ''GED'' and ''HSE degree'', and for consistency with changes made to the definition of ''training.'' The Department notes that ''GED'' and ''HSE'' are terms relating to educational credentials as well as training requirements because the programs may be considered training for purposes of the work requirement. The Department also adds the definitions of the acronyms ''GED'' and ''HSE'' because the acronyms are used in more than one section of this final-form rulemaking.

 Following feedback from IRRC requesting clarifications to incorporate all types of training, the Department modifies subparagraph (v) of the definition of ''family'' so that it includes all types of education, training and instruction, including an internship, clinical placement, apprenticeship, lab work or field work required by a training institution.

 The Department modifies the definition of ''homelessness'' as requested by IRRC by adding language and subparagraph (v) to ensure the child's parent or caretaker is included in the definition, and to correct subparagraph (iv) to replace the word ''subtitle'' with the word ''chapter.'' Notably, the inclusion of parents and caretakers in the definition is consistent with the CCDF's usage of homelessness because the CCDF references homeless families, which includes the child and the child's parent or caretaker. See 45 CFR 98.51.

 The Department deletes the term ''maternity or family leave'' because the term no longer served a purpose in this final-form rulemaking following changes to §§ 3042.19(c) and 3042.147(a). Similarly, the Department deletes the term ''owner or operator of a child care facility'' because the term was not used in the duly promulgated regulations in Chapter 3041, the proposed rulemaking or this final-form rulemaking.

 The Department amends the proposed definition of ''period of presumptive eligibility'' to delete all the substantive provisions and to clarify the definition in accordance with feedback from IRRC requesting the provisions be moved to the body of the regulations. The Department restates the definition to clarify that a period of presumptive eligibility is a temporary period of eligibility established at application for families struggling with homelessness lasting no longer than 92 calendar days as specified in § 3042.146 (relating to homelessness). The Department notes that the timing provision is not substantive but is necessary to ensure clarity that periods of presumptive eligibility may last no longer than 92 calendar days.

 The Department adds the term ''period of presumptive continued eligibility'' in this final-form rulemaking following amendments made in § 3042.147 that clarify that presumptive continued eligibility at redetermination is a temporary period of eligibility established at redetermination as specified in § 3042.147. This change better ensures that families do not needlessly cycle on and off services.

 The Department also adds the term ''personal interview'' following changes made in §§ 3042.56, 3042.114, 3042.115 and 3042.117 because the term better states the requirement, which need not take place face-to-face but instead can take place in person, by telephone or by other means approved by the Department. Further, the added term is consistent with the term used by the Office of Income Maintenance. See §§ 123.22 and 133.23.

 The Department also amends the definition of ''prospective work, education or training'' to delete the substantive provisions and add them to the final-form requirements under § 3042.34(a)(1) and to better clarify that the definition concerns future employment, education or training that has a begin date and is verified by the employer, school official or training official.

 The Department modifies the definition of ''self-declaration'' to delete the timing provisions and to clarify that the statement must be signed and dated. Following changes made in § 3042.64 on final-form to ensure consistency with minimum 12-month eligibility periods, the Department further modifies the definition to clarify that self-declaration can be used for purposes of establishing financial or nonfinancial eligibility pending verification as described under § 3042.64.

 Finally, the Department amends the definition of ''training'' in subparagraph (ii) to remove the time frames for the postsecondary degree program and to include the two most common forms of adult education in the definition—GED and HSE programs. The addition is in response to feedback from IRRC as well as during the public comment period noting that the Department considers them to be training programs for purposes of the work requirement. The Department notes the amendments under § 3042.3 provide added clarity to the regulated community and increase access for parents and caretakers by being more specific about these terms. The Department additionally notes that the added specificity better clarifies the requirements for eligibility and helps to remove barriers to eligibility for parents and caretakers who need subsidized child care services, as requested by commentators in general comments. The Department also notes that defining acronyms will help to ensure consistency between the regulated community and the eligibility agencies, as well as prospective participants, which will further remove barriers to eligibility for parents and caretakers who need subsidized child care services.

§ 3042.4. Nondiscrimination

 This section establishes the requirement that eligibility agencies shall offer child care subsidy within the provisions of all applicable civil rights laws and regulations.

 There is no change made to this section from the proposed rulemaking to this final-form rulemaking.

General Benefits

§ 3042.11. Provision of subsidized child care

 Subsection (a) establishes that subsidized child care is provided for a child whose family meets financial and nonfinancial eligibility requirements.

 Subsection (b) establishes that subsidized child care is available to an otherwise eligible child who is under 13 years of age.

 Subsection (c) establishes that subsidized child care will continue until the eligibility agency completes the family's next scheduled annual redetermination when a child turns 13 years of age between redeterminations.

 There are no changes made to subsections (a)—(c) from the proposed rulemaking to this final-form rulemaking.

 Subsection (d) is amended in this final-form rulemaking to clarify that subsidized child care services are available to children who are physically or mentally incapable of self-care. This amendment is based on a comment received recommending the change for clarity.

 Subsection (e) establishes that a former Temporary Assistance for Needy Families (TANF) family is eligible for a child care subsidy as specified under this chapter.

 Subsection (e) is amended in preparation of this final-form rulemaking to conform to citation standards.

 Subsection (f) establishes that the Department, through the Department's contract with the eligibility agency, will direct funding for various populations, including individuals who formerly received TANF benefits and foster children.

 There is no change made to subsection (f) from the proposed rulemaking to this final-form rulemaking.

§ 3042.12. Parent choice

 This section establishes that a family that is eligible for subsidized child care shall have the right to choose care from a provider that agrees to comply with the Department's standards for provider participation. This section lists the entities that are eligible to provide subsidized child care services.

 This section is amended in this final-form rulemaking to restate the requirements in three subsections.

 Subsection (a) establishes that a family that is eligible for subsidized child care will have the right to choose care from a provider that agrees to comply with the Department's standards for provider participation, subject to subsections (b) and (c). This subsection is amended to clarify the requirement is subject to the requirements of subsections (b) and (c).

 Subsection (b) establishes that the Department may suspend the subsidy benefit when a parent or caretaker uses a provider who has received a Departmental notice to revoke or refuse to renew the provider's certificate of compliance. Subsection (b) is added in this final-form rulemaking in response to feedback received from IRRC regarding § 3042.14, as discussed previously and in the Department's comment and response document.

 Subsection (c) establishes the entities that are eligible to provide subsidized child care services. The provision is amended in this final-form rulemaking to correct the names of the cited regulatory chapters in paragraphs (1)—(3) following the Department's review.

§ 3042.13. Subsidy benefits

 This section establishes when subsidy-eligible families may receive subsidized child care services.

 There is no change made to this section from the proposed rulemaking to this final-form rulemaking.

§ 3042.14. Payment of provider charges

 Subsection (a) establishes that a provider participating in the subsidized child care program is eligible to receive payment from the eligibility agency for services provided to a subsidy-eligible child.

 Subsection (b) establishes that the eligibility agency may not pay child care costs that exceed the maximum child care allowance minus the family copayment for the type of care the child received from the provider, except when the Department provides tiered reimbursement to providers that are eligible based on their participation in the Department's Quality Rating and Improvement System.

 Subsection (c) establishes that the Department may provide tiered reimbursement based on the availability of funding.

 Subsection (d) establishes that if a parent or caretaker selects a provider whose published rate exceeds the Department's payment rate, the provider may charge the parent or caretaker the difference between these two amounts. For clarity, the Department amends this language to exactly mirror the language of § 3041.15(c).

 Subsection (e) establishes that a change in a parent's or caretaker's need for child care and the resulting adjustment in the amount of payment to the provider shall begin on the date the parent or caretaker reports the change or on the date the change begins, whichever is later.

 Subsection (f) establishes that when additional funding becomes available, the Department may direct any additional funding to providers that offer child care services during non-traditional hours.

 Subsection (g) establishes that the eligibility agency will not make retroactive payments for child care costs incurred more than 30 days prior to the issuance of an enrollment authorization, with the exception of a former TANF family as specified in § 3042.119 (relating to retroactive payment for former TANF families).

 Subsection (h) establishes that the Department will not permit subsidy enrollments at a provider for whom the Department has issued a revocation or refusal to renew.

 Subsection (h) is amended in this final-form rulemaking to delete the word ''new'' in response to feedback from IRRC, as discussed more fully previously and in the Department's comment and response document. There were no changes to subsections (a)—(c) and (e)—(g).

§ 3042.15. Subsidy limitations

 Subsection (a) establishes that a parent or caretaker who is receiving funds from the TANF cash assistance program is not eligible for subsidized child care under this chapter.

 Subsection (a) is unchanged from the proposed rulemaking to this final-form rulemaking.

 Subsection (b) establishes that subsidized child care may not be used as a substitute for a publicly-funded education program or specialized treatment program, except that parents or caretakers can request for their kindergarten-age child to be permitted 1 additional school year to be enrolled in kindergarten.

 Subsection (b) is unchanged from the proposed rulemaking to this final-form rulemaking.

 Subsection (c) establishes that if a parent or caretaker owns a child care facility, then the parent or caretaker is not eligible for subsidized child care for their own child if the child will be cared for in the same facility.

 Subsection (c) is amended in this final-form rulemaking. The amendment is made in response to feedback during the public comment period and from IRRC, as discussed previously and in the Department's comment and response document.

 Subsection (d) is deleted from this final-form rulemaking. On proposed, this subsection established that if a parent or caretaker is the operator of a home that is exempt from certification under section 1001 of the Human Services Code (62 P.S. § 1001), the child is not eligible for subsidized child care if space is available at the facility. The provision was inoperative and obsolete because all regulated child care providers are required to be certified. Proposed subsection (e) is changed to subsection (d) in this final-form rulemaking, and the rest of the provisions are reordered accordingly.

 Subsection (d) establishes that a child is ineligible for subsidized child care if the child is not enrolled within 30 calendar days following the date the eligibility agency notifies the parent or caretaker that funding is available, unless the eligibility agency determines that enrollment has been delayed because of circumstances outside of a parent's or caretaker's control.

 Subsection (d) is amended in this final-form rulemaking following feedback from IRRC, as discussed more fully previously and in the Department's comment and response document.

§ 3042.16. Prohibition of additional conditions and charges

 This section establishes that eligibility agencies may not impose additional requirements for eligibility beyond those prescribed in this final-form rulemaking or require the selection of a particular provider as a condition of eligibility.

 There is no change made to this section from the proposed rulemaking to this final-form rulemaking.

§ 3042.17. Attendance

 This section establishes the requirement that the enrollment schedule shall be specified in writing, and that the child must attend child care pursuant to the schedule.

 There is no change made to this section from the proposed rulemaking to this final-form rulemaking.

§ 3042.18. Absence

 This section establishes the maximum number of paid absences per year, and it delineates requirements relating to suspension.

 There is no change made to this section from the proposed rulemaking to this final-form rulemaking.

§ 3042.19. Subsidy continuation

 Subsection (a) establishes that eligibility will be continuous for the 12-month eligibility period despite any loss of work, education or training.

 Subsection (b) establishes that the eligibility period is continuous for 12 months even when there is a change in the child's primary parent or caretaker provided the substitute caretaker satisfies the requirement that the family's annual income does not exceed 85% of the SMI.

 Subsections (a) and (b) are unchanged from the proposed rulemaking to this final-form rulemaking.

 Subsection (c) establishes that subsidized child care will continue at the same level until the family's next scheduled redetermination in specified circumstances.

 Subsection (c) is amended to reorganize and restate the requirement in response to feedback received during the public comment period, as discussed more fully in the Department's comment and response document.

 Amendments to subsection (c) are made based on feedback from a public commentator recommending the changes so that the requirements are consistent with the Federal requirements and are completely stated. The commentator also requested provisions regarding subsidy termination, which the Department is clarifying in § 3042.22.

§ 3042.20. Subsidy suspension

 Subsection (a) establishes that the eligibility agency shall suspend subsidy if the child is absent from care for more than 5 consecutive days.

 Subsection (b) establishes that parents or caretakers can request for the eligibility agency to suspend the subsidy for a child who is expected to be absent from care for more than 5 consecutive days.

 Subsection (c) as proposed is deleted from this final-form rulemaking because the provision concerned termination, as further discussed as follows under § 3042.22, as well as in the Department's comment and response document. The amendments are made following feedback received during the public comment period.

§ 3042.21. Subsidy disruption

 This section establishes contingencies in the event that subsidy could be disrupted because of insufficient Federal or State funding.

 This section is amended in this final-form rulemaking to correct paragraph (2) by replacing the word ''subsection'' with the word ''section'' following feedback from IRRC noting the error.

§ 3042.22. Subsidy termination

 This section is added to this final-form rulemaking to better clarify the circumstances that may result in termination of the subsidy prior to the end of the 12-month eligibility period. The addition also addresses IRRC's request to clarify the requirement to state the specific number of days considered to be excessive to establish a standard that is predictable and enforceable. IRRC also asked the Department to explain implementation procedures for proposed § 3042.20(c). In response, the proposed requirement for terminating a subsidy due to unexplained absences was moved into this added section regarding subsidy termination. This section is added in this final-form rulemaking in response to feedback received during the public comment period and to clarify the circumstances that may result in termination of the subsidy prior to the end of the 12-month eligibility period.

 Subsection (a) clarifies in four paragraphs the circumstances that may cause the eligibility agency to terminate subsidy prior to redetermination. Regarding the circumstances, paragraph (1) clarifies the number of unexplained absences that are excessive in response to IRRC's comment to clarify the number of days. Specifically, the subsection clarifies that the number of days is 60 consecutive days of unexplained nonattendance in care, provided the eligibility agency has attempted at least three times to contact the parent or caretaker regarding the child's absences. The Department also clarifies in paragraph (2) that one of the circumstances is if a child no longer resides in this Commonwealth, and the Department clarifies in paragraph (3) that one of the circumstances is if the parent or caretaker committed substantiated fraud or intentional program violations that invalidate prior determinations of eligibility. Paragraph (4) clarifies that the subsidy will be terminated if the parent or caretaker voluntarily requests discontinuance of the subsidy.

 Subsection (b) clarifies that if the eligibility agency moves to terminate the subsidy as described in subsection (a), then notification to the family must be provided as required under § 3042.155.

 To determine whether the absences are excessive, upon notification from the provider that a child has been absent more than 5 consecutive days, the eligibility agency will send to the parent or caretaker a notice confirming the suspension of the subsidy following the non-attendance in care. Importantly, suspension does not divert funds away from the family, but instead, the funds are preserved until such time as the child returns to care and the suspension ends. Upon suspension, payment to the provider is stopped until the child has returned to care. If the suspension continues for a period of 60 consecutive days of unexplained, nonattendance in care, the eligibility agency will proceed to terminate subsidy after ensuring the required outreach.

Eligibility Requirements

§ 3042.31. Financial eligibility

 Subsection (a) establishes that the family's annual income cannot exceed 200% of the FPIG at initial application.

 Subsection (b) establishes that, after an initial determination of eligibility, a family shall remain financially eligible so long as the family's annual income does not exceed 85% of the SMI.

 Subsection (c) is amended in this final-form rulemaking to clarify that eligibility will continue at redetermination provided that the family's annual income does not exceed 235% of the FPIG or 85% of the SMI, whichever is less. This amendment is made in response to a public comment received recommending the addition to improve clarity and in response to IRRC's comment, as discussed previously and the Department's comment and response document.

 Subsection (d) establishes that the eligibility agency shall inform the parent or caretaker of the amount that will exceed 235% of the FPIG or 85% of the SMI and will cause the family to be ineligible for subsidized child care.

 Subsection (e) is amended to delete ''and'' and replace it with ''or'' following the Department's review of this final-form rulemaking to clarify that a family will be ineligible for subsidized child care when the family's assets exceed $1 million either at application or redetermination.

§ 3042.32. Residence

 Subsection (a) establishes that family members must be residents of this Commonwealth.

 Subsection (b) establishes that a parent or caretaker shall apply to the eligibility agency responsible for the geographic area that includes the zip code of the family's residence.

 Subsection (c) establishes that a parent or caretaker experiencing domestic violence or homelessness may use an alternate address for receipt of mail or telephone number for receipt of telephone calls.

 There are no changes made to this section from the proposed rulemaking to this final-form rulemaking.

§ 3042.33. Work, education and training

 Subsection (a) establishes that a parent or caretaker shall work at least 20 hours per week.

 Subsection (b) establishes that the eligibility agency shall average a parent's or caretaker's work hours in cases where hours of work vary from week to week.

 Subsection (c) establishes two circumstances under which the eligibility agency will consider a parent or caretaker as satisfying the work requirement under subsection (a).

 Subsection (c)(1) is amended to clarify the requirement applies to GED or HSE diplomas.

 There are no other changes made to this section from the proposed rulemaking to this final-form rulemaking.

§ 3042.34. Prospective work, education and training

 Subsection (a) establishes the requirements that must be satisfied for a parent or caretaker who has prospective work, education or training.

 Subsection (a)(1) is amended following feedback from IRRC requesting removal of substantive language from the definition of ''prospective work, education or training.'' The Department agrees and moves that substantive language from the proposed definition of the term and adds it to this section to clarify that work, education or training must begin no later than 30 calendar days following the date the parent or caretaker signs and dates the application for subsidized child care.

 Subsection (a)(2) is unchanged from the proposed rulemaking to this final-form rulemaking.

 Subsection (b) establishes that subsidized child care may not begin until the parent or caretaker begins work, education or training.

 Subsection (c) establishes that a parent or caretaker shall notify the eligibility agency of the actual amount of income no later than 10 calendar days after receiving the first income for work.

 Subsections (b) and (c) are unchanged from the proposed rulemaking to this final-form rulemaking.

§ 3042.35. Immunization

 As amended, subsection (a) establishes that a child receiving subsidized child care shall be up to date with immunizations as recommended by ACIP, and that an eligibility agency shall, for purposes of establishing eligibility for subsidized child care, grant exemption from the immunization requirement if the child's parent or caretaker objects to immunization on religious grounds or strong personal objection equated to a religious belief must be documented by a written, signed and dated statement from the child's parent or guardian. The statement shall be kept in the child's record, or if a child's physician, physician's assistant or CRNP signs and dates a written statement indicating that a child's medical condition contraindicates immunization. The statement shall be kept in the child's record.

 As amended, subsection (b) establishes that, for purposes of subsidized child care eligibility, the eligibility agency will authorize families for subsidy and give the parent or caretaker 60 days from the date of enrollment, or if the child is experiencing homelessness or is a foster child, then 90 calendar days to obtain up to date immunizations or provide documentation of exemption from the immunization requirement.

 Subsections (a) and (b) are amended in this final-form rulemaking to correct typographical errors and to address feedback from IRRC, as discussed more fully previously and in the Department's comment and response document.

§ 3042.36. Citizenship

 This section establishes that a child receiving subsidized child care must be a United States citizen or an alien lawfully admitted for permanent residence or otherwise lawfully and permanently residing in the United States.

 There is no change made to this section from the proposed rulemaking to this final-form rulemaking.

§ 3042.37. Eligibility of households including a parent or caretaker with a disability

 This section is reorganized and restated following feedback from IRRC and from a public commentator requesting revisions, as described previously and in the Department's comment and response document. Under the reorganization, the subsections are reordered.

 Subsection (a) establishes that at application or redetermination, a single parent or caretaker who is disabled is not eligible for subsidized child care services. The Department reiterates that the two-generation approach articulated in the CCDBG aims to support parents' work and the promotion of children's healthy development.

 Subsection (b) establishes that following a determination of eligibility, a single parent or caretaker who experiences the onset of a disability will remain eligible until the family's next scheduled annual redetermination.

 Subsection (b) is amended in this final-form rulemaking to restate the requirement so that it is clear that subsidy will continue until the next scheduled annual redetermination in the event the parent or caretaker is unable to meet the work, education and training requirements.

 Subsection (c) establishes that at application or redetermination, a two-parent or caretaker family who are both disabled are not eligible for subsidized child care services. The Department reiterates that the two-generation approach articulated in the CCDBG aims to support parents' work and the promotion of children's healthy development.

 Subsection (d) establishes that following a determination of eligibility, a two-parent or caretaker family where both parents are unable to meet the work, education and training requirements is excused from the work, education and training requirements until the family's next scheduled annual redetermination.

 Subsection (e) establishes the requirements and conditions that a two-parent or two-caretaker family must satisfy in order to be eligible for subsidized child care services.

 Subsection (e)(1) establishes that one parent or caretaker must be working at the time of application and at each redetermination.

 Subsection (e)(1) is amended in this final-form rulemaking to clarify that one parent or caretaker must be satisfying the work requirement as specified under § 3042.33 (relating to work, education and training) at the time of application and at each subsequent redetermination.

 Subsection (e)(2) establishes that the parent or caretaker who is not working must have a disability verified under § 3042.70 at the time of application and redetermination.

 Subsection (e)(2) is amended in this final-form rulemaking to delete the language ''or at the time the parent or caretaker becomes disabled'' because the language is inconsistent with this final-form rulemaking and the CCDBG because eligibility is continuous for the 12-month period. The amendment was made in response to a public comment received suggesting the provision as proposed was not in sync with the Federal CCDBG requirements.

 Subsection (e)(3) establishes that the parent or caretaker with the disability is unable to work or participate in education or training and is unable to care for the child for whom the family requested subsidy, or has a need to attend treatment for the disability and is unable to care for the child.

 Subsection (e)(3) is unchanged from the proposed rulemaking to this final-form rulemaking.

 Subsection (e)(4) is moved in this final-form rulemaking to subsection (f). The section is moved to clarify that a court order is not required in conjunction with the other listed requirements, but instead, it is a stand-alone option intended to widen the scope of available avenues for the receipt of child care subsidies. The amendment is made in response to feedback noting ambiguity and requesting clarification of the subsection.

 Subsection (f) establishes that a two-parent or two-caretaker family may be eligible for subsidized child care if the other parent or caretaker is satisfying the work requirements and a court order or safety plan issued by a children and youth agency prohibits one parent or caretaker from caring for the child for whom the family requested subsidy.

Determining Family Size and Income

§ 3042.41. Family size

 Subsection (a) establishes the individuals who count when determining the size of the family.

 Subsection (b) establishes that a foster child may be counted as a family of one or may be included in a family as defined in this chapter.

 There is no change made to this section from the proposed rulemaking to this final-form rulemaking.

§ 3042.42. Income counted

 This section establishes that the incomes to be counted when determining financial eligibility are the incomes of the parent or caretaker of the child for whom eligibility is sought, a parent's or caretaker's spouse, and children for whom the parent or caretaker receives unearned income.

 There is no change made to this section from the proposed rulemaking to this final-form rulemaking.

§ 3042.43. Income adjustment

 This section establishes how the eligibility agency determines the total adjusted family income in eight subsections.

 There is no change made to this section from the proposed rulemaking to this final-form rulemaking.

§ 3042.44. Estimating income

 Subsection (a) establishes that the eligibility agency shall use its best estimate of monthly income based upon circumstances at the time of application or redetermination as consistent with Appendix A, Part I (relating to income to be included, deducted and excluded in determining gross monthly income).

 Subsection (b) establishes that for parents or caretakers who are working and have received pay at the time they apply for subsidized child care, the eligibility agency shall estimate income based upon verified, actual amounts already received by the family prior to application or redetermination.

 Subsection (c) establishes that the eligibility agency shall adjust its estimate of monthly income to reflect recent or anticipated changes and unusual circumstances that are not expected to recur, such as overtime not likely to continue.

 Subsection (d) establishes that when an applicant anticipates starting work within the next 30 days or has not yet received a first paycheck, income eligibility is established based on verified anticipated income.

 There is no change made to this section from the proposed rulemaking to this final-form rulemaking.

Eligibility Determination

§ 3042.51. Application

 Subsection (a) establishes that the eligibility agency shall make applications for subsidized child care available to any person upon request.

 Subsection (b) establishes that a parent or caretaker may file a signed application for subsidized child care under this chapter, including an electronically-signed, online application, on any day and at any time.

 Subsection (c) establishes that a parent or caretaker may submit an application by mail, hand-delivery, facsimile or electronically.

 There is no change made to this section from the proposed rulemaking to this final-form rulemaking.

§ 3042.52. Initial determination of eligibility

 Subsection (a) establishes that the eligibility agency shall stamp the date and time of receipt on the signed application on the same day the eligibility agency receives the application by mail, hand-delivery, facsimile or electronically.

 Subsection (b) establishes that the eligibility agency shall determine a family's eligibility and authorize payment for subsidized child care no later than 10 calendar days following verification of all factors of eligibility, and that the eligibility agency may not delay a determination of eligibility beyond 30 calendar days following receipt of a signed application from the parent or caretaker.

 Subsection (c) establishes that the eligibility agency shall determine a family eligible retroactive to the date the family submitted a signed application if the eligibility agency has received all information necessary to complete the application and the verification provided by the parent or caretaker establishes eligibility.

 There is no change made to this section from the proposed rulemaking to this final-form rulemaking.

§ 3042.53. Effective date of coverage

 Subsection (a) establishes that if the eligibility agency determines a family eligible for subsidized child care and if funding is available, coverage of child care costs is retroactive to the date the family submitted a signed application.

 Subsection (b) establishes that if the eligibility agency places a child on a waiting list following the determination of eligibility, coverage of child care costs must begin on the date funding is available.

 There is no change made to this section from the proposed rulemaking to this final-form rulemaking.

§ 3042.54. Notification of eligibility status and availability of funding

 Subsection (a) establishes that the eligibility agency shall notify the parent or caretaker of the family's eligibility status within 30 calendar days of receiving a signed application.

 Subsection (b) establishes that if the eligibility agency determines a family eligible for subsidized child care, the eligibility agency shall notify the family's child care provider when funding becomes available to enroll the child.

 There is no change made to this section from the proposed rulemaking to this final-form rulemaking.

§ 3042.55. Period of eligibility

 This section establishes that a family receiving subsidy remains eligible until determined ineligible.

 There is no change made to this section from the proposed rulemaking to this final-form rulemaking.

§ 3042.56. Personal interview

 As amended, subsection (a) establishes that if the eligibility agency determines a family eligible for subsidized child care and if funding is available, the parent or caretaker shall attend a personal interview with the eligibility agency no later than 30 calendar days following the date the eligibility agency notifies the family of eligibility for subsidized child care.

 As amended, subsection (b) establishes that if the eligibility agency determines a family eligible for subsidized child care and if funding is not available, the parent or caretaker shall attend a personal interview with the eligibility agency no later than 30 calendar days following the date the first child from a family is enrolled in subsidized child care.

 Subsection (c) establishes that the eligibility agency shall accommodate the parent's or caretaker's work hours in scheduling the personal interview.

 Subsection (d) establishes that the eligibility agency may extend the 30-day time frame for the personal interview for up to an additional 30 days if the parent or caretaker claims hardship due to conflicts with the parent's or caretaker's working hours or illness.

 Subsection (e) is deleted from this final-form rulemaking. In the proposed rulemaking, this subsection established that the eligibility agency could substitute a telephone contact for a face-to-face meeting if the face-to-face meeting cannot be rescheduled without the parent or caretaker experiencing a hardship. Because the terminology is changing from ''face-to-face'' meeting to ''personal interview'', and because a personal interview does not require a face-to-face meeting, the requirement is unnecessary so it is deleted. Proposed subsection (f) is changed to final-form subsection (e), and the rest of the provisions were reordered accordingly.

 Subsection (e) establishes that the eligibility agency may waive the requirement for the personal interview if the parent or caretaker has completed a personal interview with the eligibility agency within the previous 12 months.

 This section is amended in this final-form rulemaking to clarify the requirement and to delete an unnecessary barrier to eligibility as consistent with CCDBG purposes and goals. The Department reiterates that several commentators advocated for those who struggle to participate in the face-to-face meeting and suggested allowing telephone contact to satisfy the requirement. In response, the Department makes these changes to this section, as discussed previously and in the Department's comment and response document.

§ 3042.57. Waiting list

 Subsection (a) establishes that the eligibility agency shall place an eligible child on a waiting list on a first come, first served basis if funds are not available to enroll the child following a determination of eligibility based on available funding.

 Subsection (a) is amended in this final-form rulemaking in response to feedback from a commentator. Specifically, the section is amended to provide that the Department will post its method for priority on its web site. An order of priority may include: foster children; children who are enrolled in PA Pre-K Counts, Head Start or Early Head Start who need wrap-around child care at the beginning or end of the program day; newborn siblings of children who are already enrolled; children experiencing homelessness; and teen parents. Otherwise, children are placed on the waiting list on a first-come, first-serve basis with respect to the date for requesting care for a child based on available funding.

 Subsection (b) establishes the requirement that following a determination of eligibility, if a parent or caretaker requests care for an additional child, the eligibility agency shall place the additional child on the waiting list according to the date and time that care was requested for the additional child based on available funding.

 Subsection (b) is unchanged from the proposed rulemaking to this final-form rulemaking.

 Subsection (c) establishes the requirement that a child will become ineligible if not enrolled with an eligible child care provider within 30 calendar days following the date of notification that funds are available to enroll the child, although exceptions may apply with Departmental approval. The requirement stated that the exceptions might include instances with circumstances beyond a family's control.

 Subsection (c) is amended in this final-form rulemaking to make changes congruent with the changes made as discussed previously and in the Department's comment and response document.

Self-Certification and Verification

§ 3042.61. General verification requirements

 Subsection (a) establishes that the parent or caretaker shall be the primary source of verification in establishing and maintaining eligibility for subsidized child care.

 Subsection (b) establishes that the eligibility agency shall assist parents and caretakers in obtaining verification, including making a collateral contact.

 Subsection (c) establishes that the eligibility agency may not impose requirements for verification beyond the requirements of this chapter.

 Subsection (d) establishes that at the time of application for subsidized child care, the eligibility agency shall obtain consent from the parent or caretaker and the parent's or caretaker's spouse permitting the eligibility agency to obtain verification of eligibility information.

 Subsection (e) establishes that the eligibility agency shall retain the signed consent in the family's file.

 Subsection (f) establishes that the consent shall remain in effect for as long as the family receives subsidy.

 Subsection (g) establishes that the eligibility agency may not deny or terminate subsidy to a family when the parent or caretaker has cooperated in the verification process and needed verification is pending or cannot be obtained due to circumstances beyond the parent's or caretaker's control.

 Subsection (h) establishes that the eligibility agency may not require a parent or caretaker to re-verify information unless the eligibility agency has information that indicates the subsidy status of the family has changed.

 There is no change made to this section from the proposed rulemaking to this final-form rulemaking.

§ 3042.62. Collateral contact

 Subsection (a) establishes that the eligibility agency shall make a collateral contact on behalf of the parent or caretaker.

 Subsection (b) establishes that the eligibility agency shall obtain from the parent or caretaker a list of sources of reliable collateral contact information.

 Subsection (c) establishes that the eligibility agency shall cooperate with a source who acts as a collateral contact.

 Subsection (d) establishes the sources of reliable collateral contact information.

 Subsection (e) establishes that the eligibility agency may not contact an alleged abuser or former abuser in a domestic violence situation.

 There is no change made to this section from the proposed rulemaking to this final-form rulemaking.

§ 3042.63. Self-certification

 Subsection (a) establishes that the eligibility agency shall inform the parent or caretaker in writing that self-certification is made subject to 18 Pa.C.S. § 4904 (relating to unsworn falsification to authorities).

 There is no change made to subsection (a) from the proposed rulemaking to this final-form rulemaking.

 Subsection (b) establishes the eligibility factors for which the eligibility agency will accept a statement of the parent or caretaker as sufficient proof. The factors include age, family composition, citizenship or immigration status, immunization status, day and hours care is needed, the status of an individual who formerly received TANF as specified under § 3042.115(1) (relating to reporting requirements for former TANF families), and personal interview time frame extension or telephone contact based on hardship.

 Subsection (b) is amended in this final-form rulemaking to make changes to subsection (b)(7) to update the terminology and delete references to the term ''face-to-face'' and replace it with the term ''personal interview,'' and to correct a citation and the title of a referenced section following changes made in § 3042.56. Otherwise, the Department noted that this section was required under Chapter 3041.

§ 3042.64. Self-declaration

 Subsection (a) establishes the requirement that if verifying eligibility based on documentary evidence or collateral contract is unsuccessful, the eligibility agency shall proceed to determine eligibility based upon a self-certification as specified in § 3042.63 or by written self-declaration by the parent or caretaker.

 Subsection (b) establishes the requirement that the eligibility agency shall instruct the parent or caretaker that a written self-declaration is made subject to 18 Pa.C.S. § 4904.

 Subsection (c) establishes that the eligibility agency shall accept a parent's or caretaker's self-declaration statement, unless evidence contradicts the statement.

 Subsections (a), (b) and (c) are unchanged from the proposed rulemaking to this final-form rulemaking.

 Subsection (d) establishes that if a parent or caretaker uses self-declaration to establish eligibility, then the eligibility agency shall require the parent or caretaker to provide another form of acceptable verification no later than 30 calendar days following the date the written self-declaration is accepted by the eligibility agency, unless otherwise specified in this chapter.

 Subsection (d) is amended in this final-form rulemaking following the Department's review to clarify the requirement following changes made on final-form to the definition of ''self-declaration.'' Specifically, the word ''verification'' is deleted, and the language is modified to clarify that the provision applies if a parent or caretaker uses self-declaration to establish eligibility as described in subsection (a). For clarity, the eligibility agency sends written confirmation to the parent or caretaker that the self-declaration is accepted and states the date by which verification must be provided.

 Subsection (e) establishes that for a parent or caretaker using self-declaration, eligibility is pending verification until another form of acceptable verification is returned to the eligibility agency as required under this section. The addition came about following the Department's review to ensure consistency with the required minimum 12-month eligibility period. The Department reiterates that although self-declaration requires follow-up documentation within 30 days, once eligibility has been determined, the eligibility must last a minimum of 12 months. The added requirement makes clear that the eligibility is pending receipt of the verification required under this section.

 Subsection (f) establishes that if the eligibility agency does not receive the verifications as required under this section, or if the family is determined ineligible, the eligibility agency shall take the necessary steps to terminate the eligibility pending verification with proper notification to the family as specified in § 3042.155. The addition came about following the Department's review to state the requirement completely and for instances when verifications are not provided, or for when the family is determined ineligible.

§ 3042.65. Verification of income

 Subsection (a) establishes the requirement for acceptable verification of earned income from employment.

 Subsection (b) establishes the requirement for acceptable verification of income from self-employment.

 Subsection (c) establishes the requirement for acceptable verification of unearned income.

 Subsection (d) establishes the requirement for acceptable verification of the amount of support received or paid by the family.

 There are no changes made to this section from the proposed rulemaking to this final-form rulemaking.

§ 3042.66. Verification of residence

 Subsection (a) establishes the requirement that the parent or caretaker shall submit verification of residence at the time of application.

 Subsection (b) establishes requirements for acceptable certification of residence.

 Subsection (c) establishes the requirement that the parent or caretaker shall submit verification of residence at the time of redetermination if the parent or caretaker reported a change of address.

 There are no changes made to this section from the proposed rulemaking to this final-form rulemaking.

§ 3042.67. Verification of work, education and training

 This section establishes the acceptable means for parents or caretakers to verify the number of hours of work, education, training or enrollment in education or training.

 Paragraph (6) is deleted in this final-form rulemaking following the Department's review because the provision conflicts with 12-month eligibility. The Department reiterates that although self-declaration requires follow-up documentation within 30 days, once eligibility has been determined, the eligibility must last a minimum of 12 months, and so permitting verification by self-declaration at all runs contrary to the requirement that work, education or training will begin no later than 30 days after signing and dating the application. There are no changes made to the remainder of the paragraphs from the proposed rulemaking to this final-form rulemaking.

§ 3042.68. Verification of circumstances relating to a decrease in copayment

 This section establishes the acceptable means through which a parent or caretaker can verify that circumstances have changed so that the copayment should be decreased.

 This section is amended in this final-form rulemaking for consistency of terminology to remove unnecessary barriers to eligibility as requested by commentators. Specifically, the Department observed incongruity in terminology in this section and in §§ 3042.70—3042.73. The Department determines that the proposed terminology is more restrictive than the terminology used in the other sections of this chapter and in the child care facilities regulations in Chapters 3270, 3280 and 3290, and that these differences served no regulatory purpose. The Department therefore makes amendments to this section to refer to a ''licensed physician, physician's assistant, CRNP or psychologist.''

§ 3042.69. Verification of identity

 Subsection (a) establishes the requirement that the parent or caretaker shall submit verification of identity at the time of application.

 Subsection (b) establishes requirements for the acceptable verification of identity.

 Subsection (c) establishes the requirement that the parent or caretaker shall submit verification of identity at the time of redetermination if the eligibility agency becomes aware of an additional parent or caretaker residing in the household.

 There are no changes made to this section from the proposed rulemaking to this final-form rulemaking.

§ 3042.70. Verification of inability to work due to a disability

 This section establishes the means through which an inability to work due to a disability may be documented.

 This section is amended in this final-form rulemaking for consistency of terminology to remove unnecessary barriers to eligibility. Specifically, the Department observed incongruity in terminology in this section and in §§ 3042.68 and 3042.71—3042.73 (relating to verification of family size; verification of child's incapability of caring for himself; and verification of care and control). The Department determined, as explained previously in § 3042.68, that the proposed terminology was unnecessarily restrictive. The Department therefore makes amendments to this section to refer to a ''licensed physician, physician's assistant, CRNP or psychologist.'' Finally, because of amendments made in § 3042.37, the Department makes amendments to this section to state the requirements without reference to the size of the family as requested by IRRC. This requirement applies only at the time of application or redetermination, and if the parent or caretaker becomes disabled during the eligibility period, the eligibility will continue for the balance of the 12-month eligibility period. The Department reiterates that once eligibility is determined, the eligibility period lasts for 12 months in all cases, except for when the requirements in § 3042.22 apply.

§ 3042.71. Verification of family size

 This section establishes the means through which the family size can be verified.

 This section is amended in this final-form rulemaking for consistency of terminology to delete unnecessary barriers to eligibility. Specifically, the Department observed incongruity in terminology in this section and in §§ 3042.68, 3042.70, 3042.72 and 3042.73. The Department determined, as explained previously under § 3042.68, that the proposed terminology was unnecessarily restrictive. The Department therefore makes amendments to this section to refer to a ''licensed physician, physician's assistant, CRNP or psychologist.''

§ 3042.72. Verification of a child's incapability of caring for himself

 This section establishes the means through which a child's incapability of caring for himself can be verified.

 This section is amended in this final-form rulemaking to correct the citation stated in the requirement following feedback received from IRRC noting the error. This section is further amended in this final-form rulemaking for consistency of terminology to delete unnecessary barriers to eligibility. Specifically, the Department observed incongruity in terminology in this section and in §§ 3042.68, 3042.70, 3042.71 and 3042.73. The Department determined, as explained previously under § 3042.68, that the proposed terminology was unnecessarily restrictive. The Department therefore makes amendments to this section to refer to a ''licensed physician, physician's assistant, CRNP or psychologist.''

§ 3042.73. Verification of care and control

 This section establishes the means through which care and control may be verified.

 This section is amended in this final-form rulemaking for consistency of terminology to delete unnecessary barriers to eligibility. Specifically, the Department observed incongruity in terminology in this section and in §§ 3042.68 and 3042.70—3042.72.

 The Department determines, as explained previously under § 3042.68, that the proposed terminology was unnecessarily restrictive. The Department therefore makes amendments to paragraph (2) to refer to a ''licensed physician, physician's assistant, CRNP or psychologist.'' Next, paragraph (8) is amended in this final-form rulemaking to clarify that the requirement refers to a written statement from the parent or caretaker verifying that a relative has care and control of the child. The amendment clarifies the requirement to be consistent with current practices for when a relative who is not the parent or caretaker has care and control of the child.

§ 3042.74. Verification of foster child status

 Subsection (a) establishes the requirement that acceptable verification of foster status includes a statement from a children and youth agency or a record from a government or social service agency.

 Subsection (b) establishes the requirement that verification of foster child status must be verified at application, redetermination or upon adding the child to the family composition.

 There are no changes made to this section from the proposed rulemaking to this final-form rulemaking.

Eligibility Agency Responsibilities

§ 3042.81. Eligibility agency

 Subsection (a) establishes the requirement that the eligibility agency shall manage the subsidized child care program in part of a county, a single county or several counties.

 Subsection (b) establishes the requirement that the eligibility agency may be either a prime contractor or a subcontractor designated in a prime contract.

 There is no change made to this section from the proposed rulemaking to this final-form rulemaking.

§ 3042.82. Eligibility determination

 Subsection (a) establishes the requirement that the eligibility agency shall determine eligibility for subsidized child care as specified in this chapter.

 Subsection (b) establishes the requirement that the eligibility agency may not impose eligibility conditions other than the conditions listed in this chapter.

 Subsection (c) establishes the requirement that the eligibility agency may not require the parent or caretaker to select a particular provider or combination of providers as a condition of eligibility.

 There are no changes made to this section from the proposed rulemaking to this final-form rulemaking.

§ 3042.83. Confidentiality

 Subsection (a) establishes that the eligibility agency and its employees must keep confidential the information in the family file and use that information only for purposes directly connected to the administration of their duties.

 Subsection (b) establishes that agents of the United States, the Commonwealth and the Department who are responsible for eligibility review, evaluation or audit functions shall have access to, and the right to the use and disclosure of, information on applicants or recipients of subsidized child care. This use and disclosure are confined to the agent's responsibility to carry out review, evaluation or audit functions.

 Subsection (c) establishes that disclosure of information beyond the scope of review, evaluation or audit functions performed by the agents requires the parent's or caretaker's informed and written consent.

 Subsection (d) establishes that information in the family file may be disclosed to the local CAO when necessary to ensure that funds are authorized appropriately.

 Subsection (e) establishes that the eligibility agency shall ensure the confidentiality of an individual who files an appeal or complaint about a family's receipt of subsidized child care for a child.

 There are no changes made to this section from the proposed rulemaking to this final-form rulemaking.

§ 3042.84. Family file

 Subsection (a) establishes that an eligibility agency shall establish and maintain a separate file for the family of each parent or caretaker who applies for subsidized child care.

 Subsection (b) establishes that the family file shall contain documents pertaining to eligibility determination, redetermination, subsidized child care authorization, copayment agreements and copies of written notices required by this chapter.

 Subsection (c) establishes that a parent or caretaker or an authorized representative has a right to examine the family file.

 There are no changes made to this section from the proposed rulemaking to this final-form rulemaking.

§ 3042.85. Record retention

 Subsection (a) establishes that an eligibility agency shall retain paper or electronic family files, completed application forms, written notices, books, records and other fiscal and administrative documents pertaining to subsidized child care.

 Subsection (b) establishes that an eligibility agency shall maintain records for at least 6 years from the end of the fiscal year in which subsidized child care has been provided or until an audit or litigation is resolved.

 Subsection (c) establishes that the fiscal year is a period of time beginning July 1 of any calendar year and ending June 30 of the following calendar year.

 There is no change made to this section from the proposed rulemaking to this final-form rulemaking.

§ 3042.86. Change reporting and processing

 This section is amended in this final-form rulemaking to reorganize the provisions and to restate the requirements for improved clarity. Under the reorganization, several provisions are moved and renumbered.

 Subsection (a) establishes that a parent or caretaker shall report income in excess of 85% of the SMI no later than the 10th day of the month following the month of the change in income.

 Subsection (a) is amended in this final-form rulemaking to clarify that a parent or caretaker shall report income in excess of 85% of the SMI no later than the 10th day of the month following the month of the change in income. The amendment is made in response to comments received requesting allowance for parents to total their income for the entire month and determine whether the income has gone over the threshold required for reporting. The change is consistent with the periods of time permitted by the Department for other programs for reporting changes, including TANF, Supplemental Nutrition Assistance Program (SNAP) and Medical Assistance (MA). The change is consistent with the Department's process, which includes evaluating reports of increases in income above 85% of the SMI for whether the reported increase is a fluctuation or a mere temporary increase, as required under 45 CFR 98.21(e).

 Subsection (b) establishes that if a parent or caretaker reports a change that results in the family or a child in the family becoming ineligible for subsidy, the eligibility agency must assess the change and ensure that the reported change is assessed for whether the change is an irregular fluctuation or a temporary increase and shall ensure that the necessary steps are taken to terminate the subsidy following evaluation of the reported change.

 Subsection (b) is amended in this final-form rulemaking to clarify and add requirements to clarify that the eligibility agency must ensure that a reported change is assessed for whether the change is an irregular fluctuation or a temporary increase and must ensure that the necessary steps are taken to terminate the subsidy following evaluation of the reported change. The amendment is made following feedback from IRRC asking whether the eligibility agency considers if the income is an irregular fluctuation, whether the eligibility agency begins processing the termination as soon as a change is reported and requesting revisions to clarify how increases in income are assessed. The requirements are stated in subsection (b)(1) and (2). As it regards the time for the eligibility agency to act, once a parent or caretaker reports a change in income that would result in the family becoming ineligible, the eligibility agency immediately assesses the reported change to determine whether the reported change is an irregular fluctuation or a temporary increase. If the reported change is either an irregular fluctuation or a temporary increase, the eligibility agency will determine there is no change, and eligibility will continue for the remainder of the minimum 12-month eligibility period. If the change is determined to not be an irregular fluctuation or temporary increase, the eligibility agency will immediately act to terminate the subsidy by issuing a notice of adverse action, which states the information specified in § 3042.152, including the date the family will become ineligible, which would be 13 days from the date the notice was issued. Families may appeal an Adverse Action notice. See §§ 3042.164 and 3042.165.

 Subsection (c) establishes that a parent or caretaker may voluntarily report changes in income on an ongoing basis.

 Subsection (c) is amended in this final-form rulemaking to clarify that the eligibility agency will act on information reported by the parent or caretaker if it would reduce the family copayment or increase the family subsidy and that the eligibility agency shall review the change and reduce the copayment as specified in § 3042.94 (relating to parent or caretaker copayment requirements), and to clarify that the eligibility agency is prohibited from acting on information reported by the family that would reduce the family's subsidy unless the information provided indicates the family's income exceeds 85% of the SMI for a family of the same size. The requirements are stated in the added subsection (c)(1) and (2).

 Subsection (d) establishes that if the parent or caretaker fails to report a change in the child's provider, the child remains eligible. This requirement also ensures that the eligibility agency does not make retroactive payment more than 30 calendar days prior to the date the parent or caretaker reported the change, except for a former TANF family as specified in § 3042.119.

 Subsection (d) is unchanged from the proposed rulemaking to this final-form rulemaking.

 Finally, because of the reorganization of this section, the title of this section is changed to ''Change reporting and processing.''

 The previous amendments are made in response to feedback received during the public comment period and from IRRC suggesting that the proposed requirements were ambiguous and were not aligned with the Federal CCDBG requirements. These amendments are also discussed previously and in the Department's comment and response document.

§ 3042.87. Voluntary request to terminate subsidized child care

 Subsection (a) establishes that a parent or caretaker may request the eligibility agency to terminate subsidy.

 Subsection (b) establishes that upon receipt of a request to terminate subsidy, the eligibility agency shall take steps to terminate the family's eligibility.

 Subsection (c) establishes that the eligibility agency shall notify the parent or caretaker as specified in § 3042.156 (relating to notice confirming voluntary withdrawal).

 There are no changes made to this section from the proposed rulemaking to this final-form rulemaking.

§ 3042.88. Child abuse reporting

 This section establishes that eligibility agencies shall immediately report suspected child abuse in accordance with 23 Pa.C.S. Chapter 63 (relating to Child Protective Services Law) and Chapter 3490 (relating to protective services).

 There is no change made to this section from the proposed rulemaking to this final-form rulemaking.

Copayment and Payment by the Department

§ 3042.91. General copayment requirements

 Subsection (a) establishes that the eligibility agency shall determine the amount of the parent's or caretaker's copayment during the eligibility process based on the parent's or caretaker's actual or verified anticipated income and family size.

 Subsection (b) establishes that the eligibility agency will set the copayment at an initial determination of eligibility for subsidized child care and reestablish it at each successive redetermination of eligibility.

 Subsection (c) establishes that the copayment covers each child in the family who is receiving subsidized child care.

 Subsection (d) establishes that the copayment includes each day of the week for which the family establishes a need for child care.

 Subsection (e) establishes that the copayment is due on the first day of the service week and each week thereafter, regardless of the day the parent or caretaker enrolls the child.

 There are no changes made to subsections (a)—(e) from the proposed rulemaking to this final-form rulemaking.

 Subsection (f) establishes that copayments cannot increase during the eligibility period unless the provisions in § 3042.176 apply. This addition is in response to a public comment suggesting the additional subsection for clarity.

§ 3042.92. Department's payment

 Subsection (a) establishes that the payment rate is the daily amount paid to a child care provider for services delivered to a child who is eligible for subsidized child care.

 Subsection (b) establishes that if the copayment does not exceed the payment rate for care, the difference between the payment rate and the weekly copayment is the Department's payment for subsidized child care.

 Subsection (c) establishes that if the Department's weekly payment to the provider is less than $5, the family is not eligible for subsidized child care with that provider.

 There is no change made to this section from the proposed rulemaking to this final-form rulemaking.

§ 3042.93. Adjusted copayment for prospective work

 Subsection (a) establishes that upon notification by the parent or caretaker of receipt of payment for employment, the eligibility agency shall adjust the family copayment no later than 20 days following the date of the reported change and shall provide notice to the parent of the planned change in copayment.

 Subsection (b) establishes that the parent or caretaker shall begin paying the adjusted copayment starting the first day of the service week following the date the written notice is postmarked or hand-delivered to the parent or caretaker by the eligibility agency.

 Subsection (c) establishes that a single parent or caretaker who applies for subsidized child care and who reports prospective work is not required to pay a copayment until the parent or caretaker receives income from work.

 There is no change made to this section from the proposed rulemaking to this final-form rulemaking.

§ 3042.94. Parent or caretaker copayment requirements

 Subsection (a) establishes that if the copayment is decreased as the result of a parent or caretaker voluntarily reporting a change or as the result of a redetermination, the parent or caretaker shall begin paying the reduced copayment on the first day of the service week following the date the parent or caretaker reported a change or the date the redetermination was completed.

 Subsection (b) establishes that if the copayment is increased as the result of a redetermination, the parent or caretaker shall begin paying the increased copayment on the first service day of the week following the expiration of the notification period specified in § 3042.151(a) (relating to general notification requirements) advising the parent or caretaker of the copayment increase.

 Subsection (c) establishes that if the copayment is due on the first day of the service week and each week thereafter, regardless of the day the parent or caretaker enrolls the child.

 There is no change made to this section from the proposed rulemaking to this final-form rulemaking.

§ 3042.95. Delinquent copayment

 Subsection (a) establishes that a copayment is delinquent if it is not paid by the last day of the service week.

 Subsection (b) establishes that on the day the provider reports the copayment is delinquent, the eligibility agency shall notify the parent or caretaker in writing that action will be taken to terminate subsidy for the child.

 Subsection (c) establishes that if a copayment is delinquent, the eligibility agency will apply the first payment paid during a week to the current week's copayment. The eligibility agency will apply subsequent payments during a week to the delinquent copayment.

 Subsection (d) establishes that to maintain eligibility for subsidized child care when a parent or caretaker incurs a copayment delinquency, the parent or caretaker shall pay all amounts owed prior to the expiration of the notification period.

 There is no change made to this section from the proposed rulemaking to this final-form rulemaking.

§ 3042.96. Eligibility agency responsibilities regarding copayment

 Subsection (a) establishes that the eligibility agency shall generate notices based on delinquent copayments.

 Subsection (b) establishes that the eligibility agency shall send the provider a copy of each notice issued to a parent or caretaker whose child is enrolled with the provider.

 Subsection (c) establishes that when a copayment is reported to the eligibility agency as delinquent, the eligibility agency shall mail a notice to the parent or caretaker. The notice must state that service will be terminated on a date set forth on the notice, which is the first day after 10 calendar days following the date of the written notice, unless the delinquent copayment is paid by that date.

 Subsection (d) establishes that a family whose subsidy is terminated for failure to make required copayments may not be reauthorized for subsidy until all outstanding copayments have been paid in full as specified in § 3042.95(d) (relating to delinquent copayment).

 Subsection (e) establishes that the eligibility agency shall retain a copy of the termination notice.

 Subsection (f) establishes that the eligibility agency shall distribute, to each parent or caretaker who applies for subsidized child care, a handbook of parent's rights and responsibilities in the subsidized child care program provided by the Department.

 There is no change made to this section from the proposed rulemaking to this final-form rulemaking.

§ 3042.97. Use of the Federal Poverty Income Guidelines and State Median Income

 Subsection (a) establishes that the FPIG is used to determine the income limits and copayments for subsidized child care.

 Subsection (b) establishes that the Department will publish an updated copayment chart in Appendix B (relating to copayment chart) through a notice in the Pennsylvania Bulletin.

 Subsection (c) establishes that the eligibility agency shall inform each parent or caretaker of the dollar amount that is equivalent to 235% of FPIG or 85% of the SMI.

 There are no changes made to subsections (a), (b) or (c) from the proposed rulemaking to this final-form rulemaking.

 Subsection (d) establishes that the eligibility agency shall explain that 235% of FPIG and its specific dollar figure are the highest annual income amounts permitted at the time of redetermination.

 Subsection (d) is amended to improve clarity by providing that the eligibility agency shall inform each parent or caretaker.

 Subsection (e) establishes that the eligibility agency shall explain that 85% of the SMI and its specific dollar figure are the highest annual income amounts permitted between redeterminations.

 Subsection (e) is amended to improve clarity and to add a requirement for the eligibility agency to inform each parent or caretaker that 85% of the SMI and the specific dollar amount that is the highest permitted between redeterminations. The amendment was in response to a public comment requesting that a requirement be added that mirrors subsection (d) and that advises of the specific dollar amount of income that will result in a loss of eligibility between redeterminations, as discussed in the Department's comment and response document.

 Subsection (f) establishes that a family is ineligible at any time if its annual income exceeds 85% of the SMI. The provision is unchanged from proposed subsection (e).

§ 3042.98. Copayment determination

 Subsection (a) establishes that the criteria the eligibility agency must use when determining the family copayment, which are family size and family income; a minimum copayment of at least $5, unless waived; the family copayment cannot exceed 11% of the family's annual income; and if the family's annual income is 100% of FPIG or less, the annual copayment cannot exceed 8% of the family's annual income.

 Subsection (a)(1) is amended in this final-form rulemaking to correct a typographical error.

 Subsection (a)(2) is amended in this final-form rulemaking to correct citation errors following feedback from IRRC and following numbering changes on final-form to the provisions regarding waivers.

 Subsection (a)(3) is amended in this final-form rulemaking to replace ''11%'' with ''7%'' and to ensure consistency with subsection (a)(2).

 Subsection (a)(4) is amended in this final-form rulemaking to replace ''8%'' with ''5%.''

 As discussed previously and in the Department's comment and response document, the amendments to subsection (a)(3) and (4) are made in response to a comment received during the public comment period requesting changes to ensure that family copayments do not exceed 7% of family income to reflect the CCDF benchmark. The Department notes the Federal benchmark is and has been set to 7% since 2016, and that the rate is based on data from the United States Census Bureau indicating that on average, between 1997 and 2011, the percent of monthly income families spent on child care was constant at around 7%. Consistent with CCDBG provisions relating to equal access, the Federal benchmark states that as CCDF assistance is intended to offset the disproportionately high share of income that low-income families spend on child care to support parents in achieving economic stability, CCDF families should not be expected to pay a greater share of their income on child care than reflects the National average. As well, the Department notes that this Commonwealth's announced approach to lower copayments to 3%—7% is consistent with the Federal benchmark that copayments do not exceed 7%.

 The section is amended in this final-form rulemaking to change subsection (a)(4) to replace 8% with 5%, so that families with an annual income of 100% of FPIG or less do not pay copayments that exceed 5% of the family's annual income. The change to 5% reflects a pro-rata adjustment for consistency with the change made in subsection (a)(3), and it is consistent with the Federal benchmark and all CCDBG provisions, including those relating to equal access. Finally, regarding the commentator who requested for eligibility agencies to maintain timely communications with child care providers about changes in the status of children and families enrolled in the program with respect to eligibility, suspension or redetermination, so as not to increase the financial burden on providers, the Department explained that eligibility agencies are already advised to maintain timely communications with child care providers.

 Subsection (b) establishes that the eligibility agency shall determine the copayment by using the copayment chart in Appendix B.

 There is no change made to subsection (b) from the proposed rulemaking to this final-form rulemaking.

§ 3042.99. Copayment exceeding monthly payment for care

 Subsection (a) establishes that if the copayments for 1 month are equal to or exceed the monthly payment for care, the family is not eligible for subsidized child care with that provider. The family must enroll the child or children with another eligible provider as specified in § 3042.12.

 Subsection (b) establishes that if the copayments for 1 month are equal to or exceed the monthly payment for care because other children in the family are currently on the waiting list, the family may choose to suspend the child's care with that provider until funding becomes available to enroll other children in the family in care.

 There is no change made to this section from the proposed rulemaking to this final-form rulemaking.

Eligibility Redetermination

§ 3042.101. Eligibility redetermination

 Subsection (a) establishes that the eligibility agency shall complete a redetermination of eligibility no less than every 12 months and establish the family's next redetermination date.

 Subsection (b) establishes requirements for the eligibility agency prior to redetermination.

 There are no changes made to subsections (a) and (b) from the proposed rulemaking to this final-form rulemaking.

 Subsection (c) establishes that the parent's or caretaker's annual income must meet the requirements set forth in § 3042.31(c).

 Subsection (c) is amended in this final-form rulemaking to correct a typographical error, replacing ''parent'' with ''parent's.''

§ 3042.102. Procedures for redetermination

 Subsection (a) establishes that no earlier than 6 weeks prior to redetermination, the eligibility agency shall send the family a form that lists the factors that will be reviewed for the redetermination of eligibility and explain the verification that will be needed to complete the redetermination.

 Subsection (b) establishes that if the parent or caretaker submits only some of the required verification elements prior to the redetermination, the eligibility agency shall request in writing that the parent or caretaker submit the additional verification no later than the family's redetermination date.

 Subsection (c) establishes that the eligibility agency shall retain a copy of the notification in the family file.

 Subsection (d) establishes that the eligibility agency shall send a written notice to the parent or caretaker regarding failure to provide required verification only after the family's redetermination date.

 Subsection (e) establishes that the eligibility agency shall require the parent or caretaker to complete, sign and either mail, hand-deliver, fax or electronically submit the applicable form at each redetermination.

 There is no change made to this section from the proposed rulemaking to this final-form rulemaking.

Former TANF Families

§ 3042.111. General provisions for former TANF families

 Subsection (a) establishes that a family that is no longer eligible for TANF cash assistance benefits or a family that voluntarily left the TANF program and meets the eligibility requirements specified in this chapter may qualify for subsidized child care.

 Subsection (b) establishes that the eligibility agency shall review the information received from the CAO about a parent or caretaker who formerly received TANF benefits.

 Subsection (c) establishes that the eligibility agency shall determine the date TANF benefits ended and establish the 183-day period after eligibility for TANF benefits ends, within which the parent or caretaker may receive child care benefits.

 Subsection (d) establishes that eligibility for former TANF child care benefits shall begin the day following the date TANF benefits ended and shall continue for 183 consecutive days.

 Subsection (e) establishes that the parent or caretaker may request child care benefits at any time during the 183-day period after eligibility for TANF ended.

 Subsection (f) establishes that the eligibility agency may not place a child on a waiting list if a former TANF parent or caretaker requests subsidized child care for that child any time prior to 184 calendar days after TANF benefits ended.

 Subsection (g) establishes that a family is not eligible for former TANF benefits if a parent or caretaker is currently disqualified from receiving TANF benefits as specified in §§ 255.1(c) and 275.51 (relating to restitution and disqualification policy; and imposing the disqualification).

 There is no change made to this section from the proposed rulemaking to this final-form rulemaking.

§ 3042.112. General requirements for former TANF families

 Subsection (a) establishes conditions a parent or caretaker must meet during the 183-day period after eligibility for TANF benefits ended or after a family voluntarily left the TANF program.

 Subsection (b) establishes that a former TANF parent or caretaker who is transferred to the eligibility agency by the CAO or who applies for subsidized child care during the 183-day period after eligibility for TANF ended as specified in subsection (a) shall not be placed on a waiting list.

 Subsection (c) establishes that the eligibility agency shall complete a redetermination of eligibility and establish the family's next redetermination date as specified in § 3042.101(a) (relating to eligibility redetermination).

 Only subsection (a)(3) is amended in this final-form rulemaking to correct a citation following feedback received from IRRC noting the error. The rest of the provisions are unchanged from the proposed rulemaking to this final-form rulemaking.

§ 3042.113. Notification requirements for former TANF families

 Subsection (a) establishes that if the eligibility agency determines that a parent or caretaker met the requirements in § 3042.112 (relating to general requirements for former TANF families) and was receiving child care on the date TANF benefits ended, the eligibility agency shall notify the parent or caretaker of the family's eligibility status and the date the 183-day former TANF period will expire.

 Subsection (b) establishes the notification requirements for the eligibility agency to send to the parent or caretaker if the eligibility agency determines that a parent or caretaker was not receiving child care or cannot determine whether the parent or caretaker was receiving child care on the date TANF benefits ended.

 There is no change made to this section from the proposed rulemaking to this final-form rulemaking.

§ 3042.114. Personal interview requirements for former TANF families

 As amended, subsection (a) establishes that when the parent or caretaker contacts the eligibility agency within 183 days after TANF benefits end, the eligibility agency must inform the parent or caretaker of the requirement to attend a personal interview with the eligibility agency. The personal interview shall occur no later than 30 calendar days following the date of the letter.

 As amended, subsection (b) establishes that when the parent or caretaker contacts the eligibility agency in response to the letter specified in § 3042.113(b) (relating to notification requirements for former TANF families), the eligibility agency shall schedule a personal interview with the parent or caretaker.

 Subsection (c) establishes that to maintain continuous child care payment from the day following the date TANF benefits ended, the parent or caretaker shall attend a personal interview with the eligibility agency as specified in § 3042.115.

 As amended, subsection (d) establishes that the eligibility agency may waive the requirement for the personal interview if the parent or caretaker has completed a personal interview with the eligibility agency within the previous 12 months.

 The subsections are amended in this final-form rulemaking to clarify the requirement and to ensure consistency of terminology with § 3042.56. Specifically, the terminology ''face-to-face meeting'' is deleted and replaced by ''personal interview'' in every subsection. The term ''personal interview'' is added to § 3042.3 to clarify that the interview is an informational meeting held between the parent or caretaker and the eligibility agency, and that it can take place in person, by telephone or by other means approved by the Department. Because of the changes in terminology, the Department also changes the title of this section from ''Face-to-face requirements for former TANF families'' to ''Personal interview requirements for former TANF families.'' Finally, because ''personal interview'' permits flexibility in terms of how the meeting can occur, the Department deletes proposed language from subsections (a), (b) and (c) referencing hardships and telephone contact because the amended terminology referencing the personal interview ensures flexibility for satisfying the requirement. The changes are consistent with changes made in §§ 3042.56 and 3042.115 and § 3042.117 (relating to failure to contact the eligibility agency following the transfer).

§ 3042.115. Reporting requirements for former TANF families

 This section establishes reporting requirements for former TANF families and requirements the eligibility agency must ensure, such as advising the parent or caretaker to report income in excess of 85% of the SMI, and circumstances for when the eligibility agency must require a parent or caretaker to complete a subsidized child care application.

 This section is amended to ensure consistency of terminology in this final-form rulemaking. Specifically, the Department deletes language to ensure consistency, specifically ''face-to-face meeting'' and replaces it with ''personal interview.'' This amendment is consistent with amendments made in §§ 3042.3, 3042.56, 3042.114 and 3042.117.

§ 3042.116. Verification of transfer of TANF benefits

 This section establishes requirements relating to the verification of transfer of TANF benefits inside this Commonwealth or from another state.

 There is no change made to this section from the proposed rulemaking to this final-form rulemaking.

§ 3042.117. Failure to contact the eligibility agency following the transfer

 Subsection (a) establishes that if a parent or caretaker who was receiving child care on the date TANF benefits ended fails to contact the eligibility agency in response to the letter specified in § 3042.113(a), the eligibility agency shall contact the parent or caretaker by telephone no later than 31 calendar days following the date of the letter.

 As amended, subsection (b) establishes that when the eligibility agency contacts the parent or caretaker, the eligibility agency shall determine the family's choice to participate in the personal interview and the parent's continuing need for child care.

 Subsection (c) establishes that if the eligibility agency determines that the parent or caretaker was not receiving child care or cannot determine whether the parent or caretaker was receiving child care on the date TANF benefits ended, the eligibility agency may not authorize payment for child care benefits until the date the parent or caretaker contacts the eligibility agency and requests benefits.

 As amended, subsection (d) establishes that if a parent or caretaker who was receiving child care on the date TANF benefits ended does not attend a personal interview as specified in § 3042.114(a), the eligibility agency shall contact the parent or caretaker by telephone no later than the day following the date the parent or caretaker failed to attend the personal interview to determine the information specified in subsection (b).

 This section is amended to ensure consistency of terminology in this final-form rulemaking. Specifically, the Department in subsections (b)(1) and (d) deletes references to ''face-to-face meeting'' and replaces the language with ''personal interview.'' These amendments are consistent with amendments made in §§ 3042.56, 3042.114 and 3042.115.

§ 3042.118. Payment authorization for former TANF families

 Subsection (a) establishes that the eligibility agency must review a request from a parent or caretaker to authorize child care payment at any time during the 183-day period after eligibility for TANF benefits ended.

 Subsection (b) establishes that the eligibility agency must authorize child care payment at any time during the 183-day period after eligibility for TANF ended.

 Subsection (c) establishes that the eligibility agency will not pay child care costs that exceed the maximum child care allowance minus the family copayment for the type of care the child received from the provider.

 There is no change made to this section from the proposed rulemaking to this final-form rulemaking.

§ 3042.119. Retroactive payment for former TANF families

 Subsection (a) establishes that if the eligibility agency authorizes payment to an eligible provider that is currently participating in the subsidized child care program for a parent or caretaker who was receiving child care on the date TANF benefits ended, the authorization is retroactive to the day following the date TANF benefits ended.

 Subsection (b) establishes that if the eligibility agency determines that the parent or caretaker was not receiving child care or cannot determine whether the parent or caretaker was receiving child care on the date TANF benefits ended, the eligibility agency shall require the parent or caretaker to submit verification of child care costs incurred during the 183-day period after eligibility for TANF ended.

 Subsection (c) establishes that the eligibility agency shall authorize payment to an eligible provider that is currently participating in the subsidized child care program for the parent or caretaker specified in subsection (b) retroactive to the date the parent or caretaker first incurred child care expenses.

 Subsection (d) establishes that if the eligibility agency determines that the parent or caretaker has selected an ineligible provider, it shall inform the parent or caretaker that the parent or caretaker shall contact the eligibility agency to discuss child care arrangements within 30 calendar days as specified in § 3042.12.

 There is no change made to this section from the proposed rulemaking to this final-form rulemaking.

§ 3042.120. Transfer from other states

 Subsection (a) establishes the conditions for eligibility a parent or caretaker must satisfy if the parent or caretaker received TANF program benefits in another state and applies for subsidized child care.

 Subsection (b) establishes that the eligibility agency must determine the date TANF benefits ended in the other state and establish eligibility for the 183-day period after eligibility for TANF ended as specified in § 3042.111 (relating to general provisions for former TANF families).

 There is no change made to this section from the proposed rulemaking to this final-form rulemaking.

§ 3042.121. Expiration of TANF benefits

 Subsection (a) establishes that a parent or caretaker who was receiving child care on the date TANF benefits ended and who has exhausted the 5-year limit on TANF benefits is eligible for up to 92 calendar days of subsidized child care to seek work.

 Subsection (b) establishes that the eligibility agency must determine the date TANF benefits ended and establish the period of former TANF eligibility as specified in § 3042.111.

 Subsection (c) establishes that the parent or caretaker may apply at any time during the 183-day period after eligibility for TANF ended.

 Subsection (d) establishes that the maximum period of potential eligibility for former TANF child care benefits under this section is 183 days.

 There is no change made to this section from the proposed rulemaking to this final-form rulemaking.

§ 3042.122. Verification of expiration of TANF benefits

 This section establishes what constitutes acceptable verification of expiration of TANF benefits.

 There is no change made to this section from the proposed rulemaking to this final-form rulemaking.

Head Start

§ 3042.131. General provisions for Head Start

 Subsection (a) establishes that a child who is enrolled in a Head Start program, whose parent or caretaker needs extended hours or days of child care beyond the hours or days provided by the Head Start program to work, is eligible for subsidized child care under this section if the parent or caretaker meets the eligibility requirements for subsidized child care as specified under § 3042.132 each time a child in the family applies for Head Start special eligibility.

 Subsection (a) is amended in this final-form rulemaking to correct a citation following feedback received from IRRC noting the error.

 Subsection (b) establishes that the eligibility agency must verify with the Head Start program that the child is enrolled in a Head Start program that meets Federal and State Head Start standards.

 Subsection (c) establishes that if a child in the family as specified in § 3042.41 (relating to family size) is enrolled in the Head Start program, the family copayment is based on family size and income. If additional children in the family are enrolled in subsidized child care, the family copayment is based on family size and income.

 Subsection (d) establishes that if extended hours or days of care are provided beyond the Head Start program hours or days, a facility that has a certificate of compliance by the Department as a child care facility shall provide the extended hours and days of care.

 Subsections (b), (c) and (d) are not amended from the proposed rulemaking to this final-form rulemaking.

§ 3042.132. Eligibility determination for Head Start

 This section establishes six listings of criteria that parents and caretakers must satisfy to continue in the Head Start special eligibility program. The criteria include verifications of work hours, extended hours, income eligibility, compliance with the required waiting list conditions, payment of the copayment and the requirement to report within 10 days when a child is no longer enrolled in Head Start.

 There is no change made to this section from the proposed rulemaking to this final-form rulemaking.

§ 3042.133. Eligibility redetermination for Head Start

 Subsection (a) establishes that the eligibility agency may not complete a redetermination prior to the expiration of the 12-month eligibility period as specified in § 3042.101(a) upon receiving notification that a child is no longer enrolled in a Head Start program.

 Subsection (b) establishes that the eligibility agency shall conduct a redetermination when the child is no longer enrolled in the Head Start program, if the 12-month redetermination period has expired as specified in § 3042.101(a).

 Subsection (c) establishes that the eligibility agency shall conduct a redetermination as specified in § 3042.101 if the family has additional children who are not enrolled in Head Start but receive subsidized child care. A family that includes a child enrolled in a Head Start program and a child who is not enrolled in a Head Start program is subject to redetermination requirements as specified in § 3042.101(a).

 Subsection (d) establishes that eligibility for a child enrolled in a Head Start program is unrelated to the eligibility of other children in the family who are not enrolled in a Head Start program and receive subsidized child care. Eligibility for a child enrolled in a Head Start program shall continue as specified in this section.

 Subsection (e) establishes that the eligibility agency shall conduct a redetermination between the time a child is no longer enrolled in Early Head Start and the time the child enters Head Start.

 There is no change made to this section from the proposed rulemaking to this final-form rulemaking.

Waivers and Periods of Presumptive Eligibility

 As previously stated, following feedback received noting confusion and clarity issues on the differences between waivers and presumptive eligibility, the Department reorganizes §§ 3042.141—3042.147 to improve clarity by stating all of the substantive waiver requirements first, and then listing the requirements for presumptive eligibility. Specifically, proposed §§ 3042.144—3042.147 are final-form §§ 3042.141—3042.144, respectively. Similar, proposed §§ 3042.141—3042.143 are final-form §§ 3042.145—3042.147. The Department notes that Chapter 3041 permitted waivers for domestic violence only, and this final-form rulemaking extends waivers to also apply for families experiencing homelessness. As such, waivers only apply under this final-form rulemaking to families experiencing domestic violence or homelessness. Regarding implementation, granting a waiver excuses the parent or caretaker from meeting certain requirements for up to 92 days. As explained previously, the Department reiterates that once the waiver period expires, the parent or caretaker must provide the verification that was waived or must begin paying the copayment, or both. If these requirements are met, eligibility and payment will continue for the rest of the 12-month eligibility period. If one or more of the waived requirements are not met, or if the individual is determined ineligible, subsidy will be terminated, and an Adverse Action notice will be sent as specified under § 3042.155. The family may satisfy the waived requirements at any time before the subsidy is terminated, and once satisfied, the subsidy will continue for the remainder of the eligibility period. If a waiver is denied, the eligibility agency will send a notice explaining the basis for the denial, the right to appeal, the verification that is required to be submitted to grant the waiver and the associated time frames for meeting the verification requirements, and notification of the evidence or information needed to substantiate the waiver request and the associated time frames for the providing the information. If denied, the family is not eligible for subsidized child care, and the eligibility agency will generate an ineligible notice as specified under § 3042.144. If granted, the eligibility agency will review the circumstances at redetermination to determine whether a new domestic violence waiver or a waiver for homelessness is warranted. Further, if a waiver is not requested to be renewed, the parent or caretaker may apply for a period of presumptive continued eligibility at redetermination as specified under this final-form rulemaking.

 There are two types of presumptive eligibility. The first is specifically only for families experiencing homelessness, and that is why the requirement is stated differently than the requirement for domestic violence and other violence. This is because for families struggling with homelessness, the CCDBG requires the Department to establish procedures to ensure the initial eligibility of children experiencing homelessness while required documentation is obtained. This final-form rulemaking establishes periods of presumptive eligibility for children experiencing homelessness to ensure the satisfaction of this CCDBG requirement. See 45 CFR 98.51.

 Next, the Department notes that presumptive continued eligibility under this final-form rulemaking is available to any family who satisfies the requirements at redetermination. Specifically, any family who is not meeting the work hours requirement but has a job to return to within 92 days can be determined presumptively eligible and maintain services. In this scenario, the redetermination is completed on day 92 and if the parent or caretaker is satisfying the work hours requirements, then eligibility will continue for the remainder of the 12-month eligibility period. If the parent or caretaker is not meeting the work hours requirements, then the eligibility agency will take the necessary steps to terminate the temporary eligibility with proper notification to the family as required under § 3042.155.

§ 3042.141. General waiver requirements

 This section establishes and clarifies general waiver requirements, and that generally, eligibility agencies may grant waivers for a family experiencing domestic or other violence or for homelessness.

 Aside from reordering, there is no change made to this section from the proposed rulemaking to this final-form rulemaking.

§ 3042.142. Time frame for waiver determinations

 This section establishes that eligibility agencies must act on a waiver request no later than 15 calendar days after the date of the request.

 Aside from reordering, there is no change made to this section from the proposed rulemaking to this final-form rulemaking.

§ 3042.143. General verification requirements for waivers

 This section establishes that the Department's form can be used as acceptable verification of domestic violence or homelessness.

 Aside from reordering, there is no change made to this section from the proposed rulemaking to this final-form rulemaking.

§ 3042.144. General notification requirements for waivers

 This section establishes requirements for eligibility agencies to provide written notice to the parent or caretaker of its decision to grant or deny the waiver request.

 Aside from reordering, there is no change made to this section from the proposed rulemaking to this final-form rulemaking.

§ 3042.145. Domestic and other violence

 Subsection (a) establishes the reasons for when the eligibility agency will grant a waiver under this section.

 Subsection (b) establishes that the eligibility agency may grant a waiver if compliance with a requirement of this chapter would either make it more difficult for a family or household member to escape domestic violence or place a family or household member at risk of domestic violence.

 Subsection (b) is amended in this final-form rulemaking to clarify that the requirement applies except as otherwise provided under this chapter.

 Subsection (c) establishes the list of six requirements that may not be waived.

 Subsection (d) establishes that verification requirements and the amount of the copayment can be waived for a period not to exceed 92 days.

 Subsection (d) is amended in this final-form rulemaking to state the requirement consistently with § 3042.146(f) so that it is clear that requirements may be waived for a temporary period not to exceed 92 days. Subsection (d)(1) is also amended in this final-form rulemaking to conform to citation standards.

 Subsection (e) establishes that, except as specified in subsections (c) and (d), the eligibility agency will grant a domestic violence waiver for the balance of the 12-month eligibility period following verification being provided to the eligibility agency. This language is amended for consistency. The amendment ensures that domestic violence waivers, once granted, will permit eligibility for the balance of the eligibility period for these vulnerable, at-risk families. The Department notes that currently, a domestic violence waiver permits eligibility for the maximum eligibility period under the duly promulgated regulations in deleted Chapter 3041 of 6 months. Because the minimum eligibility period is increased to 12 months under this final-form rulemaking, the extension to the updated, minimum required period of 12 months ensures consistency with the CCDBG and ensures the continued protection of these vulnerable families.

 Subsection (f) establishes that the eligibility agency shall utilize and accept the Department's form providing for verification by documentary evidence, third party statement or self-certification as acceptable verification of domestic violence. The addition came about following the Department's review to clarify the process for establishing eligibility under this section. Specifically, the requirements in paragraph (1) clarify that if verification under the Department's form is not provided prior to expiration of the 92-day period specified in subsection (d), or if the family is determined ineligible, the eligibility agency will take the necessary steps to terminate the temporary eligibility with proper notification to the family as specified in § 3042.155. Next, the requirements in paragraph (2) clarify that if a family is determined ineligible or fails to provide the required verifications, any services received during the 92-day period are not considered an error or improper payment. The eligibility agency will pay any amount owed to a child care provider for services provided. The added requirements clarify the process for determinations under this section and the consequences for failing to provide the required verification. The added requirements are also consistent with the Department's current framework for waivers. The Department notes these changes are also responsive to feedback received during the public comment period asking for the Department to ensure that families experiencing domestic violence are no worse off under this final-form rulemaking than before. As such, these vulnerable individuals will receive 12 months of continuous eligibility following verification under this section. The Department notes the congruity of this requirement with the requirement under § 3042.146(g) for families who are experiencing homelessness. The added subsection is consistent with § 3042.143 (relating to general verification requirements for waivers) and is added to emphasize the verification requirement for families experiencing domestic or other violence and to state the requirements for eligibility for these families more completely.

 Aside from the reordering and the citation correction, there are no changes to the remainder of this section. Regarding IRRC's inquiry regarding implementation of this waiver, the Department reiterates that granting a waiver excuses the parent or caretaker from meeting certain requirements for up to 92 days, and that the waiver is subject to the requirements specified under §§ 3042.141—3042.144. Specifically, the eligibility agency must act on waiver requests within 15 calendar days after the date of the request. Whether the waiver is granted or denied, the eligibility agency will send a notice as specified under § 3042.144.

§ 3042.146. Homelessness

 Subsection (a) establishes that at the time of application, the eligibility agency may grant a period of presumptive eligibility to a parent or caretaker who is experiencing homelessness for a temporary period not to exceed 92 calendar days. This subsection restates proposed subsection (d).

 Subsection (a) is amended in this final-form rulemaking to clarify that a period of presumptive eligibility is a temporary period not to exceed 92 calendar days.

 Subsection (b) establishes that a parent or caretaker who is experiencing homelessness may be permitted to substitute job search activities to meet the work requirement specified in § 3042.33 for the duration of the period of presumptive eligibility for a temporary period not to exceed 92 calendar days. This subsection restates language that was proposed under the definition of ''period of presumptive eligibility.''

 Subsection (c) establishes that a parent or caretaker may be permitted to self-certify their status as experiencing homelessness as specified under § 3042.63 to qualify for and be granted a period of presumptive eligibility for a temporary period not to exceed 92 calendar days. The addition clarifies that self-certification can be used to qualify for and be granted a period of presumptive eligibility for families who are experiencing homelessness.

 Subsection (d) establishes that except as specified in subsections (e) and (f), the eligibility agency will grant a waiver to families who are experiencing homelessness for the balance of the 12-month eligibility period following verification being provided to the eligibility agency. The Department notes the congruity of this requirement with the requirement under § 3042.145(e) and that the added requirement is consistent with the minimum 12-month eligibility periods required under the CCDBG.

 Subsection (e) establishes and lists the six requirements that cannot be waived. Specifically, these six requirements are the following: (1) age of the child; (2) income limits; (3) state residency; (4) citizenship; (5) the number of paid absences; and (6) the minimum number of hours of work, education or training as specified under § 3042.33, subject to the provisions in subsection (b). This subsection restates proposed subsection (b).

 Subsection (e) is amended in this final-form rulemaking to add a paragraph clarifying that the work requirement is waived only during the initial period of presumptive eligibility. Because the minimum eligibility period is now 12-months, the change is necessary to clarify that the work requirement is not waived entirely, but only during the initial period of presumptive eligibility. The Department reiterates that presumptive eligibility is used to satisfy the CCDBG requirement for Lead Agencies to provide for a process to ensure that work requirements do not operate as a barrier to eligibility. See 45 CFR 98.51. The change clarifies that the work requirement during presumptive eligibility permits substitution of job search activities to satisfy the work requirement, as required by the CCDBG.

 Subsection (f) establishes and lists the requirements that can be waived for a temporary period not to exceed 92 calendar days. Specifically, they are the amount of the copayment as well as the verification requirements specified under §§ 3042.61—3042.73. This subsection is based on proposed subsection (c).

 Subsections (f) is amended so this final-form rulemaking conforms to citation standards. There are otherwise no changes made to this subsection from the proposed rulemaking to this final-form rulemaking.

 Subsection (g) establishes that the eligibility agency will use and accept the Department's form providing for verification by documentary evidence, third party statement or self-certification as acceptable verification of homelessness. The addition clarifies the requirement for verification of homelessness and for the consequences for failing to provide the required verifications. The Department notes the congruity of this requirement with the requirement under § 3042.145(f) for families who are experiencing domestic violence or other violence. This subsection is consistent with § 3042.143 and is added here to emphasize the verification requirement for homelessness and to state the requirements for eligibility for families experiencing homelessness more completely.

 Subsection (h) establishes that following expiration of the temporary 92-day period of presumptive eligibility, the eligibility agency may establish a new 12-month eligibility period and reset the redetermination due date. This subsection is based on proposed subsection (e).

 Subsection (h) is amended in this final-form rulemaking to change the wording of the requirement to ensure accuracy and consistence with the Department's process, and to state the requirement more clearly. Specifically, the word ''full'' is deleted and the requirement is restated using permissive language to clarify the eligibility agency may establish a new period. If verifications are not provided or the family is determined ineligible, the eligibility agency will not do a redetermination or reset the due date but will instead end the eligibility following the required notice as specified under § 3042.155.

 Regarding implementation, the Department reiterates this final-form rulemaking adds homelessness as a waiver in addition to the waiver for domestic violence, which is already authorized under the duly promulgated regulations in deleted Chapter 3041, and so the waiver process is the same. The Department notes that provisions similar to subsections (a) and (b) are not under the waiver requirements for domestic violence because the provisions permit substitution of job search activities for the work requirements, consistent with the provisions of the CCDF under 45 CFR 98.51. The amendments to this subsection clarify that a period of presumptive eligibility permits substitution of job search activities to meet the work requirement for a temporary period not to exceed 92 calendar days, and that the period can be granted at application to a parent or caretaker who is experiencing homelessness. The Department notes that presumptive eligibility at application applies only to families experiencing homelessness, and at application, a parent or caretaker who is experiencing homelessness and who is not meeting the work requirement can be presumptively eligible for up to 92 days to do a job search, and if the parent or caretaker is not meeting the work requirement by the 92nd day, the family is no longer eligible following the eligibility agency's issuance of a notice of adverse action, as specified under § 3042.155. The Department notes the described procedures are now clarified in subsection (g).

 Amendments to this section are made to improve clarity and ensure consistency, specifically the amendments made to the definition of ''period of presumptive eligibility.'' This section is reorganized and reordered for clarity from the proposed rulemaking to this final-form rulemaking.

§ 3042.147. Presumptive continued eligibility at redetermination

 As amended, subsection (a) establishes that the eligibility agency may grant a temporary period of presumptive continued eligibility to a parent or caretaker at redetermination for a period not to exceed 92 calendar days from the date of the redetermination.

 Subsection (a) is amended in this final-form rulemaking to clarify that the eligibility agency may grant a temporary period of presumptive continued eligibility at redetermination for a period not to exceed 92 calendar days from the date of the redetermination. Further, the listed circumstances in subsection (a)(1)—(3) are deleted in this final-form rulemaking for clarity. The amendments are made in response to feedback from IRRC requesting explanation regarding a conflict with the proposed definition of ''period of presumptive eligibility'' and clarification of the requirements. The Department notes the timing provisions from the proposed definition of ''period of presumptive eligibility'' are also added in response to IRRC's request to delete the timing provisions from the definition into the body of the regulations to clarify that a period of presumptive eligibility is temporary and shall not exceed 92 calendar days from the date of the redetermination. The amended terminology to ''period of presumptive continued eligibility'' better describes the eligibility because this section concerns eligibility at the time of the redetermination, and so the parent or caretaker has already been determined eligible for the previous 12-month period and is currently receiving subsidized child care based on the prior eligibility determination. This section prevents families from needless cycling on and off from services, and the amended terminology better reflects the purpose of the requirement. The Department reiterates that ''period of presumptive continued eligibility'' is added to the definitions section under § 3042.3 to clarify that the term refers to a temporary period of eligibility that is established at redetermination as provided for in this section. The Department notes that a period of presumptive eligibility applies at the time of application, whereas a period of presumptive continued eligibility applies only at redetermination.

 Subsection (b) establishes that for a parent or caretaker to be granted a period of presumptive continued eligibility at redetermination, the parent or caretaker shall submit verification of work, education or training that satisfies the work-hour requirement as specified in § 3042.33 that is set to begin prior to the expiration of the temporary 92-day period specified in subsection (a), unless the provisions in § 3042.146 apply. The addition clarifies how a parent or caretaker can be granted a period of presumptive continued eligibility at redetermination. The requirement is clear that verification that work, education or training that satisfies the work requirements is set to begin prior to the expiration of the temporary 92-day period specified in subsection (a), unless the provisions in § 3042.146 apply. This addition is in response to feedback from IRRC noting clarity and ambiguity concerns with the proposed section. The addition also states the requirement more completely.

 Subsection (c) establishes that prior to the expiration of the temporary 92-day period of presumptive continued eligibility, the eligibility agency will verify the parent or caretaker has begun work, education or training and is compliant with the work-hours requirement specified in § 3042.33. This subsection is based on proposed subsection (b).

 Subsection (c) is amended in this final-form rulemaking to restate the requirement to reference that the eligibility agency must verify prior to the expiration of the temporary period that the parent or caretaker has begun work, education or training and is in compliance with the work-hours requirement. The amendment is made to clarify and state the requirement more consistently with the Department's current process by changing the language to require verification prior to expiration of the temporary period of presumptive continued eligibility.

 Subsection (d) establishes that if the parent or caretaker has not begun work, education or training as specified in subsection (b), or is otherwise determined ineligible prior to the expiration of the 92-day period, the eligibility agency shall take the necessary steps to terminate the temporary eligibility with proper notification to the family as specified in § 3042.155. The addition clarifies the requirements following feedback from IRRC. The added provision clarifies that the temporary eligibility will be terminated in cases where the parent or caretaker has not begun work, education or training prior to expiration of the temporary period.

 Subsection (e) establishes that if a family is determined ineligible at any time during a temporary period of presumptive continued eligibility, any services received during the 92-day period are not considered an error or improper payment. The eligibility agency will pay any amount owed to a child care provider for services provided during the temporary period of presumptive continued eligibility. The addition is following feedback from IRRC noting ambiguity and clarity issues with this section. The added requirement is consistent with the provisions in §§ 3042.145(f)(2) and 3042.146(g)(2). Specifically, the provisions clarify that if a family is determined ineligible at any time during the period of presumptive eligibility, any services received during the 92-day period are not considered an error or improper payment. Further, the added requirements clarify that the eligibility agency will pay any amount owed to a provider for services rendered during the temporary period of presumptive continued eligibility.

 Subsection (f) establishes that at the end of a 92-day temporary period of presumptive continued eligibility, the eligibility agency will complete a redetermination to establish the 12-month eligibility period and reset the redetermination due date. This subsection is based on proposed subsection (c).

 Subsection (f) is amended in this final-form rulemaking to clarify the 92-day period is with reference to the temporary period of presumptive continued eligibility. The provision deletes the word ''full'' from the requirement so that the requirement is clear that the eligibility agency will complete a redetermination to establish the 12-month eligibility period and reset the redetermination due date at the end of the 92-day period.

 Finally, because this section is reorganized and because of clarity issues with this section, the title is amended to ''Presumptive continued eligibility at redetermination.''

 The amendments for this section are made for clarity and consistency in response to feedback from IRRC and because of amendments made to the definition of ''period of presumptive eligibility.'' Further, the Department reiterates that ''period of presumptive continued eligibility'' is added in this final-form rulemaking under § 3042.3 to clarify that at redetermination, a parent or caretaker can maintain eligibility using the specified period of presumptive eligibility provided they have work, education or training that will begin prior to expiration of the temporary period. The Department reiterates that this requirement will help to ensure that families do not needlessly cycle on and off services. Finally, this section is also reordered from the proposed rulemaking to this final-form rulemaking to improve clarity.

Notification and Right to Appeal

§ 3042.151. General notification requirements

 Subsection (a) establishes that the eligibility office shall notify the parent or caretaker in writing no later than 10 calendar days prior to taking an action that affects the family's eligibility status for subsidized child care or a change in the amount of the family's subsidized child care benefit.

 Subsection (a) is amended in this final-form rulemaking to delete the word ''notify'' and add language to clarify that the eligibility agency shall issue written notification to the parent or caretaker no later than 13 calendar days prior to taking an action that affects the family's eligibility status for subsidized child care or a change in the amount of the family's subsidized child care benefit. These amendments are made based on a comment received that the period between notice and action on the case should be expanded, similar to MA, SNAP and TANF, in recognition of significant mailing delays, as explained more fully in the Department's comment and response document. The Department carefully considered the commentator's request, and after follow-up discussions with the commentator, the commentator requested the regulations mirror and provide for the authorization that is programmed into the Department's system that is used for the subsidized child care program, Pennsylvania's Enterprise to Link Information for Children Across Networks. To further address these concerns, and to ensure the requirement is stated for consistency as requested by the commentator, the Department deletes the phrase ''in writing'' and adds the language ''issue written notification'' to ensure the requirement is clear and consistent with the Department's process for sending notifications.

 Subsection (b) establishes requirements for sending the written notice described in subsection (a) to the parent or caretaker; for notifying the child care provider as soon as a family is determined eligible or ineligible; and for the child care provider to retain a copy of the notice in the family file.

 There is no changes made to subsection (b) from the proposed rulemaking to this final-form rulemaking.

§ 3042.152. Notice of right to appeal

 This section establishes and lists the information that must be included in a notice of the right to appeal.

 There is no change made to this section from the proposed rulemaking to this final-form rulemaking.

§ 3042.153. Notice of eligibility

 This section establishes the listing of information that must be included on a written notice of eligibility on a form provided by the Department.

 This section is amended in this final-form rulemaking in subsection (b)(3) of the requirement to correct the title of a cited section that is amended in this final-form rulemaking.

§ 3042.154. Notice of ineligibility

 This section establishes and lists the information that must be included on a written notice of ineligibility on a form provided by the Department.

 There is no change made to this section from the proposed rulemaking to this final-form rulemaking.

§ 3042.155. Notice of adverse action

 Subsection (a) establishes that the eligibility agency shall send a notice to a parent or caretaker currently receiving subsidy when the eligibility agency proposes to terminate subsidy payment.

 Subsection (b) establishes that the eligibility agency shall prepare a notice of adverse action on a form provided by the Department.

 Subsection (c) establishes and lists the information that must be included in a notice of adverse action.

 There is no change made to this section from the proposed rulemaking to this final-form rulemaking.

§ 3042.156. Notice confirming voluntary withdrawal

 Subsection (a) establishes that the eligibility agency shall, by written notice to the parent or caretaker, confirm the parent's or caretaker's voluntary withdrawal of a child from subsidized child care.

 Subsection (b) establishes that the notice confirming voluntary withdrawal must be on a form provided by the Department.

 Subsection (c) establishes and lists the information that must be included in a written notice confirming voluntary withdrawal.

 There is no change made to this section from the proposed rulemaking to this final-form rulemaking.

§ 3042.157. Notice confirming a change in benefits

 Subsection (a) establishes that the eligibility agency shall, by written notice to the parent or caretaker, confirm a change in the parent's or caretaker's subsidized child care benefits when the change does not affect the family's eligibility. Changes in benefits include a change in the number of days or hours during which the child is enrolled, subsidy suspension and subsidy disruption.

 Subsection (b) establishes that the notice confirming a change in benefits must be on a form provided by the Department.

 Subsection (c) establishes and lists the information that must be included in a written notice confirming a change in benefits.

 There is no change made to this section from the proposed rulemaking to this final-form rulemaking.

§ 3042.158. Notice confirming a change in copayment

 Subsection (a) establishes that the eligibility agency shall, by written notice to the parent or caretaker, confirm a change in the family copayment amount.

 Subsection (b) establishes that the notice confirming a change in copayment must be on a form provided by the Department.

 Subsection (c) establishes and lists the information that must be included in a written notice confirming a change in copayment.

 There is no change made to this section from the proposed rulemaking to this final-form rulemaking.

§ 3042.159. Notice of overpayment

 This section establishes and lists the requirements for written notices that confirm an overpayment.

 There is no change made to this section from the proposed rulemaking to this final-form rulemaking.

Appeal and Hearing Procedures

§ 3042.161. Appealable actions

 This section establishes in what cases the parent or caretaker has the right to appeal a determination of the Department.

 This section is amended in this final-form rulemaking in paragraph (1) to correct a citation following feedback received from IRRC noting the citation error, and to correct the title of a cited section that is changed in this final-form rulemaking. Paragraph (4) is updated following amendments made to reorganize the requirements for waivers. Because of the addition of § 3042.22 in this final-form rulemaking, the Department adds paragraph (8) here to clarify that subsidy terminations under § 3042.22 may be appealed.

§ 3042.162. Discontinuation of subsidy during the appeal process

 Subsection (a) establishes that subsidy is not continued pending a hearing decision if the parent or caretaker appeals the disruption of subsidy when the eligibility agency lacks funding to continue subsidy to a child.

 Subsection (b) establishes that subsidy is suspended pending a hearing decision if the parent or caretaker fails to make timely payment of the copayment.

 There are no changes made to subsections (a) and (b) from the proposed rulemaking to this final-form rulemaking.

 Subsection (c) establishes that following a suspension under subsection (b), a subsidy will be reinstated pending the hearing decision if all copayments are brought up to date. The addition is in response to a public comment suggesting the requirements allow, following a suspension, for the reinstatement of subsidy pending a hearing decision if the parent catches up on copayments.

§ 3042.163. Subsidy continuation during the appeal process

 Subsection (a) establishes the conditions for when subsidy will continue at the prior level until the Department hears the appeal and makes a final decision.

 Subsection (a)(1) is amended in this final-form rulemaking in response to feedback from IRRC requesting clarification to establish a procedure with which the parent or caretaker will be able to comply. The word ''received'' is replaced by the word ''delivered'' to clarify that the appeal must either be postmarked by the date when sent by mail; or delivered by the date when sent by hand-delivery, facsimile or electronically. The same amendment is made in § 3042.166(b), and the amendments are consistent with the requirement under § 3042.165(b).

 There are no other changes made to subsection (a) from the proposed rulemaking to this final-form rulemaking.

 Subsection (b) establishes that if subsidy continues as specified in subsection (a), the parent or caretaker shall continue to make timely payment of the copayment that was in effect prior to issuance of the written notice until the Department makes a final decision as specified in § 3042.91 (relating to general copayment requirements).

 There is no change made to subsection (b) from the proposed rulemaking to this final-form rulemaking.

 Subsection (c) establishes that if subsidy continues during the appeal process and the hearing officer finds in favor of the eligibility agency or the Department, the parent or caretaker shall reimburse the Department for the amount of the subsidy or increase in subsidy paid for child care from the proposed effective date of the written notice until the date subsidy is terminated or decreased, based on the final administrative action order.

 There is no change made to subsection (c) from the proposed rulemaking to this final-form rulemaking.

§ 3042.164. Parent or caretaker rights and responsibilities regarding appeal

 Subsection (a) establishes that a parent or caretaker appealing a written notice shall submit a written request to the eligibility agency in accordance with Chapter 275 (relating to appeal and fair hearing and administrative disqualification hearings) within 30 calendar days following notification. The parent or caretaker shall specify the reason for the appeal and the current address and a telephone number, if possible, where the parent or caretaker can be reached during the day.

 Subsection (b) establishes that a parent or caretaker may orally appeal. The eligibility agency shall document the date of the oral appeal in the case file. The parent or caretaker shall confirm the oral appeal in writing to the eligibility agency no later than 7 calendar days following the date the parent or caretaker orally requested an appeal.

 Subsection (c) establishes that a parent or caretaker may authorize an adult to represent the parent or caretaker at the hearing.

 Subsection (d) establishes that if the parent or caretaker wants subsidy to continue pending a hearing decision, subject to § 3042.163, the parent or caretaker shall submit a written appeal no later than 10 calendar days following the date the written notice is postmarked or hand-delivered to the parent or caretaker by the eligibility agency.

 Subsection (e) establishes that if the parent or caretaker requests that subsidy continue pending a hearing decision, the parent or caretaker shall make timely payment of the copayment that was in effect prior to issuance of the written notice until the Department makes a final decision as specified in § 3042.91.

 There is no change made to this section from the proposed rulemaking to this final-form rulemaking.

§ 3042.165. Eligibility agency responsibilities regarding appeal

 Subsection (a) establishes that if the parent or caretaker is unable to prepare a written appeal, the eligibility agency shall assist the parent or caretaker in preparing a written appeal. The parent or caretaker shall sign the appeal request.

 Subsection (b) establishes that when the eligibility agency receives an appeal that is timely postmarked or delivered, the eligibility agency shall date-stamp the appeal, the envelope and the attachments with the date of receipt and retain copies of all original appeal information.

 Subsection (c) establishes that the eligibility agency shall keep a copy and forward the original appeal along with the postmarked envelope to the Department's Bureau of Hearings and Appeals no later than 3 working days following the date the appeal is received by the eligibility agency.

 There are no changes made to subsections (a)—(c) from the proposed rulemaking to this final-form rulemaking.

 Subsection (d) establishes that the eligibility agency may not take the proposed adverse action until 13 calendar days following the date the written notice is postmarked or hand-delivered to the parent or caretaker and then only if the parent or caretaker has not filed an appeal. Subsidy may be continued at the prior level only if the parent or caretaker meets the requirements in § 3042.163.

 Subsection (e) establishes that the eligibility agency may take the proposed adverse action before 13 calendar days following the date a provider closes for financial difficulties or loss of certification or if funding is not available to continue subsidized care to the child.

 Subsections (d) and (e) are amended in this final-form rulemaking in response to a public comment received noting the period between notice and action on the case should be expanded as was done for MA, SNAP and TANF, in recognition of significant mailing delays. The time periods in subsections (d) and (e) are changed from 10 calendar days to 13 calendar days, as explained in the Department's comment and response document.

§ 3042.166. Hearing procedures

 Subsection (a) establishes that Chapter 275 applies to hearings that are held under this chapter, except as specifically superseded by this chapter.

 There is no change made to subsection (a) from the proposed rulemaking to this final-form rulemaking.

 Subsection (b) establishes that the Department will dismiss an appeal postmarked or delivered after 30 calendar days from the date the written notice is postmarked or hand-delivered to the parent or caretaker unless one of the provisions allowing for appeals after 30 calendar days applies as specified in § 275.3(b)(2) and (3) (relating to requirements).

 Subsection (b) is amended in this final-form rulemaking in response to feedback from IRRC requesting clarification to establish a procedure with which the parent or caretaker will be able to comply. Similar to § 3042.163, the word ''received'' is replaced by the word ''delivered'' to clarify the appeal must be either postmarked by the date when sent by mail; or delivered by the date when sent by other methods, such as hand-delivery, facsimile or electronically.

 Subsection (c) establishes that the hearing may be conducted by a telephone conference call with the parties to the appeal, including the parent or caretaker, the authorized representative of the parent or caretaker, the eligibility agency, the Department and the hearing officer.

 Subsection (d) establishes that the parent or caretaker has the right to request a face-to-face hearing instead of a telephone hearing. Face-to-face hearings will be held in locations specified by the Department.

 Subsection (e) establishes that if a parent or caretaker does not withdraw an appeal, the eligibility agency, or the Department, if appropriate, will take part in the scheduled hearing to justify the action to which the parent or caretaker objects.

 Subsection (f) establishes that if the eligibility agency or the Department fails to appear at the hearing and the parent or caretaker appears, the parent's or caretaker's appeal will be sustained.

 Subsection (g) establishes that if the parent or caretaker fails to appear for the hearing, regardless of whether the eligibility agency or the Department appears, the appeal is considered abandoned and the decision of the eligibility agency or the Department will be sustained.

 Subsection (h) establishes that the Department will notify the eligibility agency and the parent or caretaker, in writing, when disposition of the appeal is made.

 Subsection (i) establishes that the eligibility agency shall implement the final administrative action within the time limit ordered by the Department or on the first day child care is needed in the week following receipt of the final administrative action order.

 There are no changes made to subsections (c)—(i) from the proposed rulemaking to this final-form rulemaking.

Overpayment and Disqualification

§ 3042.171. Overpayment

 This section establishes when a parent or caretaker can be required to repay an overpayment.

 There is no change made to this section from the proposed rulemaking to this final-form rulemaking.

§ 3042.172. Eligibility agency responsibilities regarding overpayment

 Subsection (a) establishes that the eligibility agency shall inform a parent or caretaker who files an appeal and requests subsidy continuation pending appeal that, if the hearing decision is in favor of the eligibility agency or the Department, the parent or caretaker shall reimburse the amount of the overpayment unless the hearing officer determines a hardship.

 Subsection (b) establishes that the eligibility agency shall pursue possible overpayments in active and closed cases, including those that were voluntarily closed.

 Subsection (c) establishes the responsibilities of the eligibility agency when exploring possible overpayments.

 Subsection (d) establishes that the eligibility agency shall refer all cases of suspected provider fraud to the Office of Inspector General.

 There is no change made to this section from the proposed rulemaking to this final-form rulemaking.

§ 3042.173. Delaying recoupment

 Subsection (a) establishes that recoupment shall be delayed until after a hearing decision, if the family files an appeal of the overpayment decision no later than 10 calendar days after the date the written notice is postmarked or hand-delivered to the parent or caretaker by the eligibility agency.

 Subsection (b) establishes that recoupment shall be delayed for cases referred to the Office of Inspector General for suspected fraud until the investigation is complete.

 Subsection (c) establishes that the method of recoupment in cases of suspected fraud will be determined in conjunction with the Office of Inspector General.

 There is no change made to this section from the proposed rulemaking to this final-form rulemaking.

§ 3042.174. Notifying the Department

 This section requires that the eligibility agency notify the Department when recoupment stops before the overpayment is fully recouped.

 There is no change made to this section from the proposed rulemaking to this final-form rulemaking.

§ 3042.175. Repayment

 This section establishes the requirement that a parent or caretaker shall repay the full amount of the overpayment.

 There is no change made to this section from the proposed rulemaking to this final-form rulemaking.

§ 3042.176. Collection

 Subsection (a) establishes that the eligibility agency shall collect the total amount of the overpayment from a family whose child continues to receive subsidized child care when the eligibility agency identifies an overpayment as specified in § 3042.172.

 Subsection (b) establishes requirements for the eligibility agency in cases where the Department, eligibility agency or other entity identifies an overpayment unrelated to fraud, subject to repayment as specified in § 3042.171 (relating to overpayment), related to a family whose child continues to receive subsidized child care.

 Subsection (c) establishes that when the Office of Inspector General has determined fraud in an active case, the eligibility agency shall determine collection methods in conjunction with the Office of Inspector General.

 There is no change made to this section from the proposed rulemaking to this final-form rulemaking.

§ 3042.177. Copayment increase related to overpayment

 Subsection (a) establishes that a copayment increase for the purpose of collecting an overpayment may not exceed an amount greater than 5% of the family's gross monthly income. If the parent or caretaker indicates to the eligibility agency that an increase to 5% would cause hardship to the family, the family and the eligibility agency may agree to a lesser amount.

 Subsection (b) establishes that a parent or caretaker may choose to increase the copayment beyond the amount specified in subsection (a) to repay an overpayment in a shorter period of time.

 Subsection (c) establishes that the eligibility agency shall issue a written notice before implementation of an increase in the copayment for a new eligibility period.

 There is no change made to this section from the proposed rulemaking to this final-form rulemaking.

§ 3042.178. Collection for a family whose child is no longer in care

 Subsection (a) establishes that the eligibility agency shall collect the total amount of the overpayment as specified in § 3042.172 from a family whose child is no longer receiving subsidized child care if the eligibility agency identifies an overpayment.

 Subsection (b) establishes requirements for the eligibility agency in cases where the Department, eligibility agency or other entity identifies an overpayment unrelated to fraud, for a family whose child is no longer receiving subsidized child care.

 Subsection (c) establishes that when the Office of Inspector General has determined fraud in a case when the child is no longer in care, the eligibility agency shall determine the collection methods in conjunction with the Office of Inspector General.

 Subsection (d) establishes that the Department may institute civil legal proceedings when the parent or caretaker fails to respond to the second letter.

 There is no change made to this section from the proposed rulemaking to this final-form rulemaking.

§ 3042.179. Disqualification

 Subsection (a) establishes criteria for when a parent or caretaker is disqualified from participating in the subsidized child care program.

 Subsection (b) establishes and lists the penalties for disqualification from participation in the subsidized child care program.

 Subsection (c) establishes that a parent or caretaker may not be granted a hearing on a court conviction or administrative disqualification hearing decision that led to the disqualification.

 There is no change made to this section from the proposed rulemaking to this final-form rulemaking.

Accomplishments and Benefits

 This final-form rulemaking ensures compliance with the Federal law and allows the Commonwealth to continue to receive CCDBG funds. This final-form rulemaking benefits parents and caretakers, the provider community and the eligibility agencies. Stable child care is critical to strengthening parents' and caretakers' ability to go to work, improving their prospects in the job market and increasing their earning potential. In addition, continuity in child care is important for creating the stable conditions children need for their healthy development and preparing for school.

 This final-form rulemaking will benefit all low-income children and families that receive subsidy, families transitioning off TANF benefits, providers receiving subsidy payments, as well as the eligibility agencies. Safe, stable environments allow young children the opportunity to develop the relationships and trust necessary to comfortably explore and learn from their surroundings. Research has demonstrated a relationship between child care stability and social competence, behavior outcomes, cognitive outcomes, language development, school adjustment and overall child well-being. Adams, G. and Rohacek, M. (2010). ''Child Care Instability: Definitions, Context, and Policy Implications.'' The Urban Institute, page 6. Retrieved from https://www.urban.org/research/publication/child-care-instability-definitions-context-and-policy-implications.

Affected Individuals and Organizations

 The Department notes that this final-form rulemaking will benefit at least 83,000 children from as many as 49,000 families who receive subsidized child care services at the more than 7,000 total providers (regulated and relative providers). If enrollments return to pre-pandemic levels, this final-form rulemaking may benefit as many as 105,000 children from as many as 61,000 families who may receive care from as many as 8,200 total providers, for no less than 12 months of subsidized child care before the family's eligibility for subsidized child care services is redetermined. Of the total number of providers, whether at the current level or at pre-pandemic levels, there are approximately 5,100 regulated providers, ranging from independently-owned family child care homes to corporations that employ thousands of individuals. Of the 5,100 regulated providers, approximately 3,600 are considered small businesses. There are also 19 Early Learning Resource Centers that serve as the eligibility agency that will benefit from this final-form rulemaking.

 Children and their parents or caretakers are most directly affected by this final-form rulemaking as it relates to eligibility, the reporting of changes during the eligibility period and verification. The required minimum 12-month eligibility periods and the required changes to the reporting requirements will provide families with stable and continuous access to subsidized child care services regardless of temporary changes in circumstances of the parent or caretaker during the eligibility period as families work toward economic security. Consistent with the CCDBG, this final-form rulemaking expands the minimum eligibility period from 6 months to 12 months during which time eligible families have continuous access to subsidized child care assistance irrespective of temporary changes in circumstances of the parent or caretaker during the eligibility period. Unemployment and job loss are disruptive to any family, but either occurrence can be especially detrimental to low-income families and their children because none are likely to have well-defined support systems. The providers that serve families receiving subsidized child care will benefit when families maintain eligibility for no less than 12 months because their enrollments will remain stable. Child care providers will also be better able to plan for staffing issues and may experience greater financial stability with more predictable income. Notable, employers that depend on working parents from these families will benefit because their employees will have more stable care for their children for at least 12 months, and so they will be able to get to work reliably and are likely to be more productive. Under this final-form rulemaking, the Department notes that staff working at child care facilities will be able to qualify for subsidized child care. With the minimum eligibility period being doubled under this final-form rulemaking to 12 months rather than the 6 months that were authorized under the duly promulgated regulations in deleted Chapter 3041, the Department notes that the workloads of the eligibility agencies may decrease.

 This final-form rulemaking will stabilize families' access to child care subsidy, which in turn, will help stabilize their employment, education or training, and their child's healthy development. The Department reiterates this improved stability may also stabilize the revenues of child care providers that receive subsidy payments, as they experience more predictable, reliable and timely payments for services. While families in the long term may have to wait longer to receive help paying for child care, once the funding is available, these families will remain eligible for longer periods of time, and so their children will have a more stable child care experience, which increases the chances for success in that these children will enjoy better outcomes and improved levels of school readiness. The Department noted that continuity and stability of child care contribute to improved job stability and are important to a family's financial health, and furthermore, that family stability is undermined by policies that result in unnecessary disruptions and limitations on access to subsidized child care. This is primarily why the Department declined the option under the CCDBG to discontinue eligibility early due to job loss after first providing for a 3-month period of eligibility. The Department studied the optional requirement and determined it would have applied to only 1% of families, and that the level of effort needed to track work history, job-search activity and establish the necessary system changes is outweighed by the de minimis fiscal savings, if any. The Department therefore determined that a requirement establishing early termination requirements in this regard would be contrary to the stated purposes and goals of the CCDBG.

 As such, parents and caretakers will not need to report a loss of work or a decrease in work hours during the eligibility period. Also, parents and caretakers need only report changes in income in excess of 85% of the SMI, or when circumstances change that otherwise impact on the family's eligibility status or the Department's ability to contact the family or pay providers. This final-form rulemaking also ensures that the family's copayment cannot increase during the eligibility period. These changes all support both family financial stability and the relationship between children and their child care providers, and they are requirements of the CCDBG. These changes represent a dramatic simplification in terms of reporting requirements for parents and caretakers. These changes will allow more families to be eligible for longer periods before having to provide verification to establish continued eligibility, thereby promoting the continuity and stability of care.

 This final-form rulemaking also benefits low-income parents or caretakers who are employed, searching for employment or attending a training program, by reducing unnecessary verifications that operate as barriers to access. Low-income parents and caretakers benefit by ensuring copayments do not exceed 7% of the family's income, which is consistent with the Federal benchmark since 2016 and ensures the Department's ability to satisfy CCDF requirements relating to affordability and equal access. See 45 CFR 98.45.

 Next, this final-form rulemaking establishes periods of presumptive eligibility for children experiencing homelessness. The CCDBG requires the Department establish procedures to ensure the initial eligibility of children experiencing homelessness while required documentation is obtained. This final-form rulemaking therefore establishes periods of presumptive eligibility for children experiencing homelessness to ensure the satisfaction of this CCDBG requirement.

 Similarly, this final-form rulemaking establishes presumptive continued eligibility at redetermination for parents and caretakers who have a job to return to that is verified to begin prior to the expiration of the presumptive period of eligibility. This requirement is consistent with the CCDBG. The Department reiterated that historically, families have cycled in and out of the CCW program. Parents or caretakers would find jobs, lose jobs, and then lose their eligibility and subsidy. Children would leave their early care and education program only to need services again in a few months, by which time they might be placed on a waiting list until funds became available. This cycling in and out is disruptive to a child's ability to learn and to a parent's or caretaker's ability to work and is not an effective use of taxpayer dollars. Presumptive eligibility may also help to further stabilize enrollments for providers and families, better promote continuity of care for the children, and otherwise help parents achieve financial stability, which may help break the cycle of poverty. This final-form rulemaking therefore satisfies and is consistent with all requirements, purposes and goals of the CCDBG.

 Child care providers are also benefited by potentially ensuring a more stable and predictable income stream from the CCW program because of the longer 12-month eligibility periods required by the CCDBG. In recognition of the challenges that providers have faced since the beginning of the COVID-19 pandemic, the Department reiterates that since the time of proposed rulemaking, the CCW payment rates have been increased—once on March 1, 2021, again on January 1, 2022 and again on March 1, 2023. The Department acknowledges the difficulties faced by the regulated community, and notes that the Commonwealth was awarded $452 million in discretionary funding from the ARPA, and that the Administration for Children and Families, Office of Child Care provided to the Department recommendations on the use of those funds. Consistent with the recommendations, the Department is making clear that a total of $213.7 million is being used to support an increase to the subsidy base rates effective January 1, 2022, and that the initiative includes increases to the 60th percentile for subsidy base rates paid to regulated providers, as well as an increase of $1 per day for relative providers. Rates were again increased effective March 1, 2023, to remain at the 60th percentile. The Department is making clear that funds have been allocated to address these costs and fiscal impacts. Strengthening the stability of providers who provide child care services is critical because provider instability can lead to instability in a parent's or caretaker's employment, which is an outcome that undercuts the core principles of the CCDBG, especially relating to continuity of care and equal access. Providers are further impacted because of the changes to the eligibility conditions for families currently provided services or that may be provided services in the future. In addition, children will remain eligible for a full 12-month eligibility period, so child care providers may experience stability in the monthly child care payment received from the Department for subsidized child care services. Providers that receive CCDF funds may also experience more predictable and reliable payments for services.

 Also, this final-form rulemaking prohibits enrollments and payments to providers for whom the Department has revoked or refused to renew a certificate of compliance, as specified under §§ 3042.12(b) and 3042.14(h). As for the numbers of families these changes will impact, the Department reiterates its previous explanation that during SFY 2021-2022 there were approximately 31 revocations or refusals to renew that impacted on 447 enrollments for a total of approximately $250,000 of potentially lost revenue for providers. Notably, not all certified child care providers participate in the CCW program. The fiscal impact to providers and the impacts on parent choice for families are, therefore, minimal and are outweighed by ensuring that public funds are directed to providers meeting basic health and safety requirements to ensure the protection of the health and safety of this Commonwealth's most vulnerable and disadvantaged children, as consistent with the CCDF. Specifically, only providers whose certificate of compliance has been revoked or refused to renew by the Department's Bureau of Certification Services will be impacted because the Department will no longer pay for subsidized child care enrollments at these providers. The Department notes these providers can still provide services to private-pay families should the provider choose to appeal the determination of the Department's Bureau of Certification Services. The Department reiterates the statements from the preamble of the Federal regulation, that ''we cannot in good conscience continue to use any federal taxpayer dollars to support sub-standard child care for our nation's most vulnerable and disadvantaged children.'' The change is also consistent with the methods of administration of funds by the Department under the ARPA because subsidy funds are public dollars that should not be paid to providers who are not meeting baseline health and safety requirements.

 With respect to any lost enrollments, the Department is clarifying that the enrollments themselves may be at a certified family child care home, group child care home or child care center. In any case, however, the health and safety interests are the same, and Federal taxpayer dollars should not be used at any of a family child care home, group child care home or child care center that is not meeting baseline health and safety standards. Further, the costs vary depending on the numbers of enrolled children who are receiving subsidized child care services. Finally, the Department is clarifying that the fiscal impact due to lost enrollments are the result of the facility's failure to comply with the Department's licensure regulations and not this final-form rulemaking. The Department reiterates that its eligibility agencies will assist families to locate another provider to ensure continuity of care, and that currently, the Department already assists families with locating another provider in cases where an emergency revocation to a facility is issued because circumstances at the facility justify immediate closure and removal of the children from care.

 This final-form rulemaking may decrease the workload of the eligibility agencies, allowing more time for eligibility agencies to assist families to find child care and provide information about a parent's or caretaker's options regarding quality child care, which is consistent with CCDBG purposes and requirements. Eligibility agencies will also be able to refer families to services that encompass the total family's needs, such as providing referrals to other public programs including but not limited to Medical Assistance; the Children's Health Insurance Program; the Women, Infants and Children Program; and Early Intervention Services. Coordination efforts regarding these services also furthers the purposes of the CCDBG.

Fiscal Impact

 The Department does not anticipate additional costs to local governments, the parents and caretakers receiving subsidized child care, or the eligibility agencies.

 With reference to the codified copayment limitations under § 3042.98(a) (relating to copayment determination), the estimated annualized cost to the Commonwealth so that copayments do not exceed 7% of the family's annual income is $44.3 million. This estimate was calculated by comparing the copayments paid by families enrolled in subsidized child care using the previous methodology, which included 40 income brackets with copayments ranging from 3% to 11% of income, to the copayments that would be paid by those families using the now-implemented reduced copayment methodology, which includes 40 income brackets with copayments ranging from 3% to 7% of income. The difference was annualized and projected to reflect anticipated increased enrollments in subsidized child care to 98,200 children. The increase in cost is substantially outweighed by the benefits enjoyed by families who will no longer pay a disproportionately higher share of income on child care costs than reflects the National average. Further, the funding has been requested for Fiscal Year 2023-2024. ARPA Discretionary Funds will cover the full cost of the change in SFY 2023-2024 and partially cover the cost in SFY 2024-2025, after which time CCDF funds or Commonwealth funds, or both, will cover the full cost. The Department reiterates that the Commonwealth's announced approach to lower copayments to 3%—7% is consistent with the Federal benchmark that copayments do not exceed 7%. Furthermore, § 3042.98(a) is amended following the Department's review at final-form to ensure consistency of the final-form provisions.

 This final-form rulemaking ensures that families receiving subsidized child care services are provided uninterrupted services that support parental education, training, employment and continuity of care that minimizes disruptions to children's learning and development. See 45 CFR 98.1 (relating to purposes).

 Next, the Department reiterates that, under § 3042.15(c), it will not allow a parent or caretaker who owns a certified child care facility to be paid subsidy dollars to care for their own child, with reference to the definition of ''child care.'' Subsection (c) is narrowly tailored so that it pertains only to situations where a parent or caretaker is the owner of a certified child care facility. To the extent there is such an impact, the Department determines that the cost is outweighed by the fact that subsidy dollars are scarce, public funds and this subsection prohibits only situations in which the owners of certified child care facilities are paid subsidy dollars to care for their own children, in direct contravention of the definition of ''child care.''

 Further, the Department will suspend the subsidy and cease payments to providers whose certificate of compliance is revoked or refused to renew by the Department's Bureau of Certification Services. Providers can still take private-pay families for situations involving appeals, but the Department reiterates the statements from the preamble of the Federal regulation, that ''we cannot in good conscience continue to use any federal taxpayer dollars to support sub-standard child care for our nation's most vulnerable and disadvantaged children.'' Consistent with the stated standard, the Department makes amendments to ensure that scarce, public funds are not paid to providers who cannot satisfy baseline health and safety requirements. The Department reiterates that the amendments in §§ 3042.12(b) and 3042.14(h) impact 447 enrollments, or less than 1% of eligible children based on data from SFY 2021-2022.

 There are valuable returns on investments with the new regulation that outweigh any potential costs. According to the Economic Report of the President (March 2014), investments in early childhood development will reap economic benefits now and in the future. Immediate benefits include increased parental earnings and employment. Future benefits come when children who experience high-quality early care and education opportunities are prepared for success in school and go on to earn higher wages as adults. This final-form rulemaking further benefits parents or caretakers who may wish to enroll in school or a training program to establish or maintain eligibility for subsidized child care services.

 Finally, research has also demonstrated the relationship between child care subsidies and the maternal labor force participation rate. Burgess, K., Chien, N., and Enchautegui, M. (2016). ''The Effects of Child Care Subsidies on Maternal Labor Force Participation in the United States.'' The Department of Health and Human Services. Retrieved from https://aspe.hhs.gov/sites/default/files/migrated_legacy_files//171051/EffectsCCSubsidiesMaternal LFPBrief.pdf. The study recommends, among other things, that ''as states work to implement new requirements in the reauthorized CCDBG Act, which governs CCDF funding, policymakers may want to consider the employment benefits of expanding access to child care subsidies to more low-income working families. Such an investment would likely improve labor force participation and employment rates among mothers. In addition, these improved employment outcomes are likely to have immediate economic benefits for families, which improve child development. Improved employment outcomes also help society through increased tax revenues in addition to the long-term human capital benefits of investments in young children.'' Consistent with this recommendation, the Department determines that this final-form rulemaking expands access, improves the quality of care these families receive, better ensures health and safety, and particularly expands access for families dealing with homelessness and families seeking to enroll in education or training to better improve their long-term prospects for employment, which by extension will improve on their income prospects, the healthy development of their children, and increased tax revenues to better ensure the availability of these services in the future for those who are struggling and are most at risk in society.

Paperwork requirements

 This final-form rulemaking will result in reduced paperwork and recordkeeping for a parent or caretaker and the eligibility agency. A parent or caretaker will only be required to complete an eligibility redetermination every 12 months and not every 6 months. Consistent with CCDBG requirements, this final-form rulemaking also reduces reporting requirements for a parent or caretaker during the family's 12-month eligibility period; therefore, the need for a parent or caretaker to provide verification to the eligibility agency may also decrease.

 Reduced reporting and paperwork requirements will remove unnecessary tracking of a parent's or caretaker's status by the eligibility agency. The reduction in paperwork and tracking may allow for more funding for direct services and will provide stability and continuity in the program. Policies that result in unnecessary disruptions to receipt of a subsidy, or other administrative processes that make it difficult for parents to maintain their eligibility and thus fully benefit from the support it offers, undermine family economic stability and are contrary to the CCDBG.

Regulatory Review Act

 Under section 5.1(a) of the Regulatory Review Act (71 P.S. § 745.5a(a)), on March 23, 2023, the Department originally submitted a copy of this final-form rulemaking to IRRC and to the chairperson of the Health and Human Services Committee of the Senate and the chairperson of the Children and Youth Committee of the House of Representatives. In compliance with the Regulatory Review Act (71 P.S. §§ 745.1—745.14), the Department also provided the Health and Human Services Committee of the Senate and the Children and Youth Committee of the House of Representatives and IRRC with copies of all public comments received, as well as other documentation. In preparing this final-form regulation, the Department reviewed and considered all comments received from IRRC and the public. IRRC met on May 18, 2023, and in response to the Department's request, the regulation was disapproved. IRRC issued its disapproval order on June 20, 2023.

 Under section 7(c) of the Regulatory Review Act (71 P.S. § 745.7(c)), on July 27, 2023, the Department delivered to IRRC and the Health and Human Services Committee of the Senate and the Children and Youth Committee of the House of Representatives a revised final-form rulemaking and report in response to IRRC's disapproval order. Under section 7(c.1) of the Regulatory Review Act, IRRC met on September 21, 2023, and approved the final-form rulemaking. Under section 7(d) of the Regulatory Review Act, the final-form rulemaking was deemed approved by the committees on May 17, 2023.

 In addition to submitting the final-form rulemaking, the Department has provided IRRC and the Health and Human Services Committee of the Senate and the Children and Youth Committee of the House of Representatives with a copy of a Regulatory Analysis Form prepared by the Department and the Department's comment and response document. A copy of this material is available to the public upon request.

Findings

 The Department finds:

 (a) The public notice of intention to amend the administrative regulation by this Order has been given under sections 201 and 202 of the act of July 31, 1968 (P.L. 769, No. 240) (45 P.S. §§ 1201 and 1202), referred to as the Commonwealth Documents Law and the regulations promulgated thereunder at 1 Pa. Code §§ 7.1 and 7.2 (relating to notice of proposed rulemaking required; and adoption of regulations).

 (b) A public comment period was provided as required by law, and all comments were considered in drafting this final-form rulemaking.

 (c) This final-form rulemaking does not enlarge the purpose of the proposed rulemaking published at 50 Pa.B. 6361.

 (d) That the adoption of this regulation in the manner provided by this Order is necessary and appropriate for the administration and enforcement of the Human Services Code.

Order

 The Department, acting under the authority of sections 201(2), 403(b) and 403.1 of the Human Services Code, orders:

 (a) The regulations of the Department, 55 Pa. Code Chapters 3041 and 3042, are amended by deleting §§ 3041.1—3041.3, 3041.11—3041.22, 3041.31—3041.34, 3041.41—3041.48, 3041.51, 3041.52, 3041.61—3041.78, 3041.81—3041.86, 3041.91—3041.94, 3041.101—3041.109, 3041.121—3041.133, 3041.141—3041.150, 3041.161—3041.167, 3041.171—3041.176 and 3041.181—3041.189, and adding §§ 3042.1—3042.4, 3042.11—3042.22, 3042.31—3042.37, 3042.41—3041.44, 3042.51—3042.57, 3042.61—3042.74, 3042.81—3042.88, 3042.91—3042.99, 3042.101, 3042.102, 3042.111—3042.122, 3042.131—3042.133, 3042.141—3042.147, 3042.151—3042.159, 3042.161—3042.166 and 3042.171—3042.179 to read as set forth in Annex A.

 (b) The Secretary of the Department shall submit this final-form rulemaking to the Offices of General Counsel and Attorney General for approval as to legality and form as required by law.

 (c) The Secretary of the Department shall submit this final-form rulemaking to IRRC and the Chairpersons of the Health and Human Services Committee of the Senate and the Children and Youth Committee of the House of Representatives as required by the Regulatory Review Act.

 (c) The Secretary of the Department shall certify and deposit this final-form rulemaking with the Legislative Reference Bureau as required by law.

 (d) This order shall take effect upon publication in the Pennsylvania Bulletin as final-form or on July 1, 2023, whichever is later.

VALERIE A. ARKOOSH, 
Secretary

 (Editor's Note: See 53 Pa.B. 6319 (October 7, 2023) for IRRC's approval.)

 Fiscal Note: 14-545. Under section 612 of The Administrative Code of 1929 (71 P.S. § 232), (1) General Fund;

 (7) Child Care Services; (2) Implementing Year 2023-24 is $0; (3) 1st Succeeding Year 2024-25 is $24,900,000; 2nd Succeeding Year 2025-26 through 5th Succeeding Year 2028-29 are $33,225,000; (4) 2022-23 Program—$181,482,000; 2021-22 Program—$156,482,000; 2020-21 Program—$156,482,000;

 (7) Child Care Assistance; (2) Implementing Year 2023-24 is $0; (3) 1st Succeeding Year 2024-25 is $8,300,000; 2nd Succeeding Year 2025-26 through 5th Succeeding Year 2028-29 are $11,075,000; (4) 2022-23 Program—$109,885,000; 2021-22 Program—$109,885,000; 2020-21 Program—$109,885,000;

 (8) recommends adoption. Funds have been included in the budget to cover this increase.

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