Original Notice.

Preproposal statement of inquiry was filed as WSR 98-20-096.

Title of Rule: Amends WAC 388-290-010; repeals existing chapter 388-290 WAC; and proposes new rules WAC 388-290-015, 388-290-075, 388-290-125, 388-290-150, 388-290-200, 388-290-250, 388-290-260, 388-290-300, 388-290-350, 388-290-400, 388-290-450, 388-290-475, 388-290-500, 388-290-525, 388-290-550, 388-290-600, 388-290-650, 388-290-700, 388-290-750, 388-290-800, 388-290-850, 388-290-900, 388-290-1000, 388-290-1050, 388-290-1100, 388-290-1150, 388-290-1200, 388-290-1250, 388-290-1300, 388-290-1350, 388-290-1375, and 388-290-1400.

Purpose: To clarify the rules for the working connections child care (WCCC) program, with the goal of making them easier for clients to understand, and for field staff to apply consistently.

Statutory Authority for Adoption: RCW 74.04.050, 74.13.0903, and Public Law 104-193, Sections 407 and 605.

Statute Being Implemented: RCW 74.04.050, 74.13.0903, and Public Law 104-193, Sections 407 and 605.

Summary: This new version of chapter 388-290 WAC is necessary to clarify and improve the WCCC program rules in accordance with Executive Order 97-02.

Name of Agency Personnel Responsible for Drafting, Implementation and Enforcement: Roger Long, P.O. Box 45480, Olympia, WA 98504-5480, (360) 413-3259.

Name of Proponent: Department of Social and Health Services, governmental.

Rule is not necessitated by federal law, federal or state court decision.

Explanation of Rule, its Purpose, and Anticipated Effects: This WAC chapter will clarify and streamline eligibility rules for the WCCC program to be more consistent with: (1) The recommendations of the child care quality improvement team; (2) best practices in the field; and (3) the principles of clear rules laid out in Executive Order 97-02.

Proposal Changes the Following Existing Rules: Amends WAC 388-290-010; and repealed existing chapter 388-290 WAC. See also Explanation of Rule, Purpose and Summary above.

No small business economic impact statement has been prepared under chapter 19.85 RCW. These rules do not impact small business.

RCW 34.05.328 does not apply to this rule adoption. These changes are editorial in nature and do not meet the definition of a significant legislative rule.

Hearing Location: Lacey Government Center (behind Tokyo O'Bento Restaurant), 1009 College Street S.E., Room 104-B, Lacey WA 98503, on May 25, 1999, at 10:00 a.m.

Assistance for Persons with Disabilities: Contact Paige Wall by May 14, 1999, phone (360) 902-7540, TTY (360) 902-8324, e-mail pwall@dshs.wa.gov.

Submit Written Comments to: Identify WAC Numbers, Paige Wall, Rules Coordinator, Rules and Policies Assistance Unit, P.O. Box 45850, Olympia, WA 98504-5850, fax (360) 902-8292, by May 25, 1999.

Date of Intended Adoption: May 26, 1999.

April 6, 1999

Marie Myerchin-Redifer, Manager

Rules and Policy Assistance Unit

((The purpose of this program is to provide child care services necessary to assist)) Working connections child care (WCCC) helps low-income families with ((dependent)) children ((to become or remain employed.  The department may provide subsidized child care services to families with incomes at or below one hundred seventy-five percent of the Federal Poverty Level (FPL) adjusted for family size)) pay for child care to find jobs, keep their jobs, and get better jobs.

[Statutory Authority: RCW 74.04.050.  98-21-005, § 388-290-010, filed 10/9/98, effective 11/9/98.  Statutory Authority: RCW 74.04.050, 74.13.0903, and Public Law 104-193, Sections 407 and 605.  98-08-021, § 388-290-010, filed 3/19/98, effective 4/19/98.  Statutory Authority: RCW 74.04.050 and 1997 c 58 §§ 401-404.  97-20-130, § 388-290-010, filed 10/1/97, effective 11/1/97.  Statutory Authority: RCW 74.04.050 and 45 CFR 255.4(F).  95-23-028 (Order 3916), § 388-290-010, filed 11/8/95, effective 12/9/95.]

Reviser's note: The bracketed material preceding the section above was supplied by the code reviser's office.
NEW SECTION
WAC 388-290-015
What basic steps does the department take to decide if I’m eligible for WCCC?

We take the following basic steps to decide if you're eligible for WCCC:

"We,” for the purposes of this chapter, means the department of social and health services.

(1) We determine:

(a) If you're participating in an approved activity (see WAC 388-290-125, 388-290-150, or 388-290-200);

(b) If you and your children are otherwise eligible for WCCC (see WAC 388-290-300);

(c) Your family size under WCCC guidelines (see WAC 388-290-400);

(d) Your countable income, which must be at or below one hundred seventy-five percent of the Federal Poverty Level (FPL) (see WAC 388-290-600);

(e) Your share of the child care cost, called a copayment (see WAC 388-290-650);

(2) After you make your own child care arrangements, we decide if we can pay your child care provider under WCCC guidelines (see WAC 388-290-850).

(3) We look at other WCCC program requirements, when needed (see WAC 388-290-900, 1000, 1050, 1100, 1150, 1200, 1250, and 1300).

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In WCCC, consumer means one of the following relatives who has parental control and applies for or receives WCCC for one or more children:

(1) Parents or stepparents;

(2) Adult siblings or step-siblings, first cousins, nephews or nieces;

(3) Aunts, uncles, grandparents or any of these relatives with the prefix great, such as great-aunt.

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(1) If you get TANF or SFA, we can pay WCCC for your hours of participation in the following activities:

(a) An approved WorkFirst activity under chapter 388-310 WAC;

(b) Employment or self-employment under WAC 388-290-200;

(c) Your education or training program if you have a prior approved JOBS plan and you are:

(i) Making progress that is satisfactory or better, as defined by your program; and

(ii) Working twenty or more hours per week, or sixteen or more hours per week in a workstudy job.

(d) Your training program for up to twelve months if:

(i) You don't have a prior approved JOBS plan;

(ii) The program is adult basic education (ABE), English as a second language (ESL), high school/GED, vocational education or job skills training under chapter 388-310 WAC;

(iii) You're making progress that is satisfactory or better, as defined by your program;

(iv) You're working twenty or more hours per week, or sixteen or more hours per week in a workstudy job; and

(v) You're enrolled at least half-time in your program as defined in chapter 388-310 WAC.

(2) If required, we can also pay WCCC for:

(a) Transportation time between your place of employment or approved activity and the location of child care; and

(b) Sleep time directly related to your job, such as if you work nights and sleep days.

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(1) If you don't get TANF, we can pay WCCC for your hours of participation in the following activities:

If you are:	Then to get WCCC you must be:
(2) Employed or self-employed.	Employed or self-employed under WAC 388-290-200
(3) In an education or training program and you have a prior approved JOBS plan for that program.	(a) Making progress that is satisfactory or better, as defined by your program; and (b) Working: (i) Twenty or more hours per week; or (ii) Sixteen or more hours per week in a workstudy job.
(4) In an education or training program and you don’t have a prior approved JOBS plan.	(c) Enrolled in adult basic education (ABE), English as a second language (ESL), high school/GED, vocational education or job skills training under chapter 388-310 WAC; (d) Making progress that is satisfactory or better, as defined by your program; (e) Working: (i) Twenty or more hours per week; or (ii) Sixteen or more hours per week in a workstudy job; and (f) Enrolled in a program no longer than thirty-six months.
(5) In an employment retention activity under chapter 388-310 WAC.	Engaged in employment retention: (a) For no more than one year following your exit from TANF; and (b) Working: (i) Twenty or more hours per week; or (ii) Sixteen or more hours per week in a workstudy job.
(6) In a labor exchange activity under chapter 388-310 WAC.	Engaged in labor exchange: (a) For no more than two years following your exit from TANF; and (b) Working: (i) Twenty or more hours per week; or (ii) Sixteen or more hours per week in a workstudy job.
(7) A food stamp recipient.	Eligible for the food stamp employment and training program under WAC 388-444-0025.
(8) In the re-employ Washington workers (RWW) program, operated by the employment security department.	Enrolled in the RWW program, operated by the employment security department.

(9) If required, we can also pay WCCC for:

(a) Transportation time between your place of employment or approved activity and the location of child care; and

(b) Sleep time directly related to your job, such as if you work nights and sleep days.

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We can pay WCCC if you're self-employed, as follows:

(1) If you get TANF, you must have an approved self-employment plan under chapter 388-310 WAC.

(2) If you don't get TANF, for your first six months of self-employment starting from when you become eligible for WCCC, the amount of WCCC you can get each month is based on the greater of:

(a) A written statement from you on the number of hours you need based on the number of hours you work; or

(b) The number of hours equal to dividing your monthly self-employment income by the federal or state minimum wage, whichever is lower.

"Self-employment income" means your gross income from self-employment minus allowable business expenses in WAC 388-450-0085.

(3) After the first six months, the amount of WCCC you can get each month is based on the lesser of subsections (2)(a) or (b) of this section.

(4) You must make available to the department records which show all your business expenses and income.

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(1) We can authorize WCCC payments for up to two weeks if you get TANF and you're waiting to enter an approved activity.

(2) We can authorize WCCC payments for up to four weeks if you experience a gap in employment, or approved activity, and you meet all the following conditions:

(a) The gap happens for reasons out of your control, such as a layoff;

(b) Employment, or the approved activity, will resume within that period or you're looking for another job; and

(c) You received WCCC immediately before the gap in employment, or approved activity.

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(1) We pay initial and ongoing annual registration fees up to fifty dollars per child to your child care provider, only if the fees are:

(a) Required of all parents whose child(ren) are in care with that provider; and

(b) Needed to maintain a child care arrangement.

(2) We can pay child care providers a one-time bonus of up to two hundred fifty dollars for each infant they newly enroll in care if all the following conditions are met:

(a) The child being cared for is less than twelve months of age;

(b) The child care provider is licensed by the department; and

(c) We expect care to be provided for five days or more.

(3) We can pay child care providers a nonstandard hour bonus under chapter 388-15 WAC.

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Depending on your circumstances, or those of your child(ren), you might be eligible for WCCC as follows:

If this situation describes you:	Then am I or my children eligible for WCCC?
(1) You are: (a) An employee of the same child care facility where your child(ren) is receiving care; and (b) Caring for your own child(ren) during the time WCCC is authorized.	No. The child(ren) in this situation are not eligible for WCCC.
(c) In sanction status;	Yes, but you can only get WCCC: (i) For an activity needed to remove the sanction; or (ii) For employment.
(d) A parent in a two-parent family and the other parent is able and available to provide care for your child(ren) while you are working, looking for work, or preparing for work.	No. You are not eligible for WCCC during the time the other parent is able and available to provide child care.
"Able” means an adult physically, mentally, and emotionally capable of caring for a child in a responsible manner.
"Available” means an adult able to provide care due to not participating in an approved work activity under WAC 388-290-125, 150, and 200 during the time you need child care.
(2) Your child or children is: (a) Birth through twelve years old;	Yes. The child(ren) in this situation are eligible for WCCC.
(b) Thirteen to nineteen years old;	Yes, but the child(ren) must be: (i) Under court supervision; or (ii) Physically, mentally, or emotionally incapable of self-care, as verified by a doctor, nurse, nurse practitioner, or masters-level or above mental health, education, or social service professional.
(c) Not legally residing in the country.	No. The child(ren) in this situation are not eligible for WCCC.

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If you're in an approved activity, we take the following steps to figure your WCCC copayment:

(1) Determine your family size (see WAC 388-290-400);

(2) Verify and calculate all nonexempt income that is received directly by your family (see WAC 388-290-450);

(3) Figure your family's expected average monthly earned and unearned income (see WAC 388-290-500 and 525);

(4) Figure your family's adjusted earned income based on your expected average monthly earnings (see WAC 388-290-550);

(5) Add your expected average monthly unearned income and the result of subsection (4) of this section together to get your family's countable income (see WAC 388-290-600).

(6) Use your family's countable income to figure your WCCC copayment (see WAC 388-290-650).

(7) Assess the minimum copayment if:

(a) You're a minor parent and meet certain guidelines (see WAC 388-290-700); or

(b) You meet other guidelines not specifically for minor parents (see WAC 388-290-750).

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All nonexempt income that your family receives directly is used to:

(1) Determine your eligibility for WCCC;

(2) Figure your expected average monthly income; and

(3) Calculate your WCCC copayment.

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"Family" in WCCC means one or more individuals in WAC 388-290-400 who live in the same household. Only you and the people living in your household can be included in family size, as follows:

If these are the people living in my household (including myself):	Then is my household considered a family in WCCC?
(1) Related adults, other than spouses, and their respective child(ren).	No, but see subsections (2) - (4), and (6) of this section, below.
(2) Unmarried parents and their mutual child(ren).	Yes.
(3) Married parents with or without a mutual child(ren).	Yes.
(4) Married or unmarried parents and their mutual and nonmutual children, if there is at least one mutual child.	Yes.
(5) Unmarried adults with no mutual child(ren).	No, but see subsection (6) of this section, below.
(6) An unmarried parent and their child(ren).	Yes.
(7) A non-TANF minor parent living independently with one or more children.	Yes.
(8) Child(ren) related by blood, marriage, or adoption who live with a WCCC consumer who is not legally and financially responsible for the child(ren).	No. Only the child(ren) are included in family size.
(9) Child(ren) not related by blood, marriage, or adoption who live in a situation described in subsection (8) of this section, above.	No. Each unrelated child(ren) is considered a separate family.
(10) A minor parent living in a situation described in WAC 388-290-700.	Yes.

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(1) We count the following as earned income when figuring your copayment:

(a) Earnings from employment or self-employment;

(b) Military housing and food allowance;

(c) Income in-kind.

"Income in-kind" means income received in a form other than cash, such as goods, services, or room and board.

(2) We count the following as unearned income when figuring your WCCC copayment:

(a) Your TANF grant, except when exempt under WAC 388-290-475;

(b) Child support payments;

(c) General assistance;

(d) Supplemental Security Income (SSI);

(e) Other social security payments, such as SSA and SSDI;

(f) Refugee assistance payments;

(g) Payments from the Veterans’ Administration, disability payments, or payments from labor and industries (L&I);

(h) Unemployment compensation; and

(i) Other types of unearned income not exempted in WAC 388-290-475.

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We exempt the following when figuring your copayment:

(1) Income types in WAC 388-450-0015, WAC 388-450-0035, WAC 388-450-0035, and WAC 388-450-0055;

(2) The earned income of a child, unless otherwise indicated in WAC 388-290-400;

(3) Diversion Cash Assistance; and

(4) The TANF grant for the first three consecutive calendar months after you start a new job. The first calendar month is the month in which you start working.

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(1) There are two kinds of income in WCCC that the department uses to get your expected average monthly income. They are:

(a) Ongoing income; and

(b) Lump sum payments.

(2) Ongoing income means:

(a) You expect to receive the income more than once, such as a paycheck;

(b) The income is not exempt in WCCC; and

(c) You have enough income history to make an accurate estimate of your future income; or

(d) Evidence of you income in the future is available, such as a letter from your employer.

(3) Lump sum payment means a one-time payment that is not exempt in WCCC, such as back child support, an insurance settlement, or gambling winnings.

(4) Expected average monthly income means the average monthly income amount used to figure your countable income.

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(1) If you have ongoing income, we figure your expected average monthly income by taking the following steps:

(a) Verifying the income presented to us; and

(b) Dividing the amount in subsection (1)(a) of this section by the number of months it took your family to get the income.

(2) If you get a lump sum payment during you WCCC authorization period, we:

(a) Divide the lump sum payment by twelve; and

(b) Count the result of subsection (2)(a) of this section as part of your expected average monthly income.

(3) If you have a combination of ongoing income and one or more lump sum payments, we use the appropriate guideline for each kind of income to figure your expected average monthly income.

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We figure your adjusted earned income as follows:

(1) If your family’s gross expected average monthly earnings are at or below one hundred percent of the FPL, then ...	We multiply gross earnings by ninety percent to get adjusted earned income.
(2) If your family’s gross expected average monthly earnings are above one hundred percent of the FPL up to and including one hundred seventy-five percent of the FPL, then ...	We multiply gross earnings by eighty-five percent to get adjusted earned income.

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(1) To get your countable income, we add together the following kinds of expected average monthly income:

(a) Adjusted earned income; and

(b) Unearned income that is not exempt (see WAC 388-290-450).

(2) All countable income received directly by your family is used to calculate your WCCC copayment except if you automatically pay the minimum copayment under WAC 388-290-700 or 388-290-750.

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If your family’s countable income falls within this range ...	... Then your copayment is ...
(1) At or below seventy-four percent of the Federal Poverty Level (FPL).	Ten dollars.
(2) Above seventy-four percent and up to one hundred percent FPL.	Twenty dollars.
(3) Over one hundred percent of the FPL.	The greater of: (a) Twenty dollars, or: (b) Forty-seven percent of your countable income over one hundred percent of the FPL.

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We set the minimum copayment if you are a minor parent, and

(1) Receiving TANF and living independently; or

(2) Part of your parent or relative's TANF grant.

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We also set the minimum copayment:

(1) In the first full month following the month you get a job, if you get TANF at the time of application for WCCC;

(2) In all the months you are a WCCC consumer, if your family’s only source of income during this time is a TANF grant; or

(3) In the first month you apply for WCCC, if you don't get TANF at the time of application for WCCC.

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We calculate your copayment:

(1) At the time of the initial eligibility determination;

(2) At least every six months, starting from the first month of eligibility;

(3) When your monthly income decreases, except if your TANF grant goes down due to a sanction;

(4) When your family size changes; and

(5) When you are no longer eligible for:

(i) The three-month TANF grant exemption under WAC 388-290-475; or

(ii) The minimum copayment under WAC 388-290-700 or 750.

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To receive payment under the WCCC program, your child care provider must fall into one of the following categories:

(1) Licensed as required by chapter 74.15 RCW and chapters 388-73, 388-155 (Minimum licensing requirements for family child day care homes), or 388-150 WAC (Minimum licensing requirements for child day care centers).

(2) Exempt from licensing but certified by the department, including:

(a) Tribal child care facilities meeting the requirements of tribal law;

(b) Child care facilities on a military installation;

(c) Child care facilities operated on public school property by a school district.

(3) Exempt from licensing and certification, but the provider must:

(a) Be one of the following adult relatives providing care in either the child's or relative's home:

(i) An adult sibling living outside the child's home; or

(ii) A grandparent, aunt, uncle, first cousin, or great-grandparent, great-aunt, or great-uncle; and

(iii) Not the child's biological, adoptive, or step-parent.

(b) Be an adult friend or neighbor providing care in the child's own home; or

(c) Be an adult extended tribal family member as defined under chapter 74.15 RCW;

(d) Be a citizen or legally residing in the country;

(e)Meet the in-home relative provider requirements in chapter 388-15 WAC. We can refuse to pay toward the cost of in-home/relative care if we have evidence they don't meet these requirements.

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We can establish a protective payee to receive WCCC warrants for you when:

(1) You do not pay your in-home/relative child care provider; and

(2) We issued a child care warrant to the correct address and twelve or more working days have passed since the issuance date;

(3) You have not reported the WCCC warrant lost, stolen, or destroyed; or

(4) You have a history of failing to pay your in-home/relative provider(s).

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We will:

(1) Inform you of your rights and responsibilities under the WCCC program;

(2) Inform you which child care providers we can pay;

(3) Permit you to choose your own child care provider, as long as we can pay the provider under WAC 388-290-850;

(4) Inform you of the community resources that can help you select child care, if needed;

(5) Only authorize payment when no adult in your family is able and available to care for your children;

(6) Only authorize payment to child care providers who allow you to see your children whenever they are in care;

(7) Respond to you within ten days if you report a change of circumstance;

(8) Provide prompt child care payments to your provider; and

(9) Notify you whenever we establish or change your WCCC copayment.

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You will:

(1) Be responsible to choose your provider and make your own child care arrangements;

(2) Notify the department of any change in providers within five days;

(3) Pay your in-home/relative provider after we send you a check for in-home/relative care;

(4) Pay, or make arrangements to pay, your WCCC copayment directly to your child care provider;

(5) Supply the department with necessary information to allow proper payment to your provider;

(6) Notify your provider within five days when we change your child care authorization;

(7) Provide notice to the department within ten days of any change in family size or income level; and

(8) Assure your in-home/relative provider provides a valid social security number to the department, if you choose an in-home/relative provider.

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If you are eligible for WCCC, the department authorizes WCCC payments the date you apply for the program, or the date you choose a child care provider we can pay under WAC 388-290-850, whichever is later.

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(1) We provide you with advance and adequate notice for changes in payment when the change results in a discontinuation, suspension, reduction, termination, or forces a change in child care arrangements, except as noted in WAC 388-290-1200, below.

(2) "Advance notice," means a notice of a WCCC reduction, suspension, or termination that is mailed at least ten days before the date of the intended action.

(3) "Adequate notice" means a written statement of the action the department intends to take, the facts relating to the decision, the Washington Administrative Code (WAC) supporting the action, and your right to request a fair hearing.

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Advance and adequate notice requirements don't apply in the following circumstances:

(1) You tell the department you no longer want WCCC;

(2) The department receives information requiring termination of WCCC benefits and you waive your advance and adequate notice rights;

(3) Your whereabouts are unknown to the department; or

(4) You are receiving duplicate child care benefits.

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Your eligibility for WCCC ends if:

(1) Copayment fees assessed by the department are not paid; and

(2) Mutually acceptable payment arrangements are not made with your child care provider; or

(3) You don't meet other WCCC eligibility requirements.

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You might be eligible for WCCC again when:

(1) Back copayment fees are paid; or

(2) Mutually acceptable payment arrangements are made with your child care provider(s); and

(3) You meet other WCCC eligibility requirements.

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WCCC consumers and child care providers can request fair hearings under chapter 388-08 WAC on any action affecting WCCC benefits except for mass changes resulting from a change in policy or law.

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(1) If you are a WCCC consumer, you can get WCCC pending the outcome of a fair hearing if you request the fair hearing:

(a) On or before the effective date of an action; or

(b) No more that ten days after the department sends you a notice of adverse action.

"Adverse action” means an action to reduce or terminate your WCCC, or to set up a protective payee to receive your WCCC warrant for you.

(2) If you lose the fair hearing, any WCCC you use between the date of the adverse action and the date of the fair hearing or fair hearing decision is an overpayment to you, the consumer.

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(1) In areas not covered by this section, WCCC consumers are subject to chapter 388-410 WAC (Benefit errors).

(2) When setting up an overpayment, we reduce the WCCC overpayment by the amount of the WCCC underpayment when applicable.

(3) We set up WCCC overpayments for child care providers to pay back, regardless of whether you are a current or past WCCC consumer, if:

(a) The amount we overpay is more than one hundred dollars; and

(b) Your child(ren) attend child care when not authorized by the department to do so;

(c) A member of a different overpaid family later becomes a member of your family;

(d) Cost of recovery does not exceed the overpayment amount;

(e) You:

(i) Do not report a change of circumstance within ten days under WAC 388-290-1050; and

(ii) Use WCCC during a period of time when you would otherwise have been ineligible or eligible for a smaller amount of care; or

(f) You knowingly fail to give the department information that affects the amount of WCCC you are eligible for.

(4) We recover WCCC overpayments from child care providers, if:

(a) The amount we overpay is more than one-hundred dollars;

(b) The provider receives payment for WCCC services not provided; or

(c) We pay the provider more than the cost of providing WCCC under chapter 388-15 WAC; and

(d) The cost of recovery does not exceed the overpayment amount.

(5) We set up overpayments starting the date that:

(a) You use WCCC when not authorized by the department to do so; or

(b) The child care provider provides care when not authorized by the department to do so.

(6) Recovery of overpayments cannot force a change in your child care arrangements.

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     The following sections of the Washington Administrative Code are repealed:

WAC 388-290-020	Subsidized child care–Definitions.
WAC 388-290-025	Subsidy units and copayments.
WAC 388-290-030	Responsibilities for the department, the consumer, and the provider under the subsidized child care program.
WAC 388-290-035	Providers eligible for payment under the subsidized child care program.
WAC 388-290-050	Eligible children and consumers under the subsidized child care program.
WAC 388-290-055	Payment for subsidized child care.
WAC 388-290-060	Adequate notice requirements and effective dates.
WAC 388-290-070	Self-employment and subsidized child care.
WAC 388-290-080	Subsidized child care--Fair hearings.
WAC 388-290-090	Subsidized child care--Income eligibility, copayments rates, and when to calculate copayments.
WAC 388-290-105	Subsidized child care--Overpayments.

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