Date of Adoption: December 28, 1999.

Purpose: 1. Raise the working connections child care (WCCC) upper income limit from 175% FPL to 225% FPL; and 2. Change the WCCC copayment schedule.

Citation of Existing Rules Affected by this Order: Repealing WAC 388-290-550; and amending WAC 388-290-015, 388-290-280, 388-290-350, 388-290-450, 388-290-475, 388-290-600, 388-290-650, 388-290-850, 388-290-920, and 388-290-950.

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

Other Authority: 45 C.F.R. Parts 98 and 99 (Child Care and Development Fund rule).

Under RCW 34.05.350 the agency for good cause finds that immediate adoption, amendment, or repeal of a rule is necessary for the preservation of the public health, safety, or general welfare, and that observing the time requirements of notice and opportunity to comment upon adoption of a permanent rule would be contrary to the public interest.

Reasons for this Finding: By directive from the governor's office, the working connections child care (WCCC) program is raising its upper-income limit and moderating its copayment schedule. This change will make an estimated 5000 additional families state-wide eligible for WCCC.

Number of Sections Adopted in Order to Comply with Federal Statute: New 0, Amended 0, Repealed 0; Federal Rules or Standards: New 0, Amended 0, Repealed 0; or Recently Enacted State Statutes: New 0, Amended 0, Repealed 0.

Number of Sections Adopted at Request of a Nongovernmental Entity: New 0, Amended 0, Repealed 0.

Number of Sections Adopted on the Agency's Own Initiative: New 0, Amended 0, Repealed 0.

Number of Sections Adopted in Order to Clarify, Streamline, or Reform Agency Procedures: New 0, Amended 11, Repealed 1.

Number of Sections Adopted Using Negotiated Rule Making: New 0, Amended 0, Repealed 0; Pilot Rule Making: New 0, Amended 0, Repealed 0; or Other Alternative Rule Making: New 0, Amended 0, Repealed 0. Effective Date of Rule: January 1, 2000.

December 28, 1999

Marie Myerchin-Redifer, Manager

Rules and Policies Assistance Unit

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)) two hundred ((seventy)) twenty-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)) 905, 910, 915, 920, 925, 930, and 935).

[Statutory Authority: RCW 74.04.050, 74.13.0903, Public Law 104-193, Sections 407 and 605 and 45 C.F.R. Parts 98 and 99.      99-14-023, § 388-290-015, filed 6/28/99, effective 7/1/99.]

(1) We can 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 ongoing activity fees of up to twenty dollars per month per child to your child care provider if the conditions in subsections (1)(a) and (1)(b) of this section are met.

(3) 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 or certified by the department; and

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

(4) We can pay child care providers a nonstandard hour bonus under ((chapter 388-15)) WAC 388-165-195 and 388-165-200.

[Statutory Authority: RCW 74.04.050, 74.13.0903, Public Law 104-193, Sections 407 and 605 and 45 C.F.R. Parts 98 and 99.      99-14-023, § 388-290-280, filed 6/28/99, effective 7/1/99.]

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)) Add together your family's expected average monthly earned and unearned income (((see WAC 388-290-500 and 525))) to get total income;

(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)) Subtract the amount of child support you pay out to get your family's countable income (see WAC 388-290-600).

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

(((7))) (6) 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).

[Statutory Authority: RCW 74.04.050, 74.13.0903, Public Law 104-193, Sections 407 and 605 and 45 C.F.R. Parts 98 and 99.      99-14-023, § 388-290-350, filed 6/28/99, effective 7/1/99.]

(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 received;

(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.

[Statutory Authority: RCW 74.04.050, 74.13.0903, Public Law 104-193, Sections 407 and 605 and 45 C.F.R. Parts 98 and 99.      99-14-023, § 388-290-450, filed 6/28/99, effective 7/1/99.]

We exempt the following when figuring your copayment:

(1) Income types in WAC 388-450-0015, WAC 388-450-0035, WAC 388-450-0040, and WAC 388-450-0055;

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

(3) Compensatory awards, such as an insurance settlement or court-ordered payment for personal injury, damage, or loss of property;

(4) Reimbursements, such as an income tax refund;

(5) Diversion Cash Assistance; ((and))

(6) Child support you pay out under court order, DCS administrative order, or tribal government order.

(7) 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.

[Statutory Authority: RCW 74.04.050, 74.13.0903, Public Law 104-193, Sections 407 and 605 and 45 C.F.R. Parts 98 and 99.      99-14-023, § 388-290-475, filed 6/28/99, effective 7/1/99.]

(((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 determine WCCC eligibility and calculate your WCCC copayment except if you automatically pay the minimum copayment under WAC 388-290-700 or 388-290-750.

[Statutory Authority: RCW 74.04.050, 74.13.0903, Public Law 104-193, Sections 407 and 605 and 45 C.F.R. Parts 98 and 99.      99-14-023, § 388-290-600, filed 6/28/99, effective 7/1/99.]

If your family's countable income falls within this range...	...Then your copayment is...
(1) At or below ((seventy-four)) eighty-two percent of the Federal Poverty Level (FPL).	Ten dollars.
(2) Above ((seventy-four)) eighty-two percent and up to one hundred thirty-seven and one-half percent FPL.	Twenty dollars.
(3) Over one hundred thirty-seven and one-half 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)) dollar amount equal to subtracting one hundred thirty-seven and one-half of FPL from countable income, multiplying by forty-four percent, then adding twenty.

[Statutory Authority: RCW 74.04.050, 74.13.0903, Public Law 104-193, Sections 407 and 605 and 45 C.F.R. Parts 98 and 99.      99-14-023, § 388-290-650, filed 6/28/99, effective 7/1/99.]

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 a U.S. citizen or legally residing in the country;

(b) 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; or

(iv) An extended tribal family member under chapter 74.15 RCW.

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

(d) Meet the in-home relative provider requirements in ((chapter 388-15)) WAC 388-165-235. We can refuse to pay toward the cost of in-home/relative care if we have evidence your in-home/relative provider does not meet these requirements.

[Statutory Authority: RCW 74.04.050, 74.13.0903, Public Law 104-193, Sections 407 and 605 and 45 C.F.R. Parts 98 and 99.      99-14-023, § 388-290-850, filed 6/28/99, effective 7/1/99.]

(1) We provide you with advance and adequate notice for changes in payment when the change results in a suspension, reduction, termination, or forces a change in child care arrangements, except as noted in WAC ((388-290-1200)) 388-290-925, 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.

[Statutory Authority: RCW 74.04.050, 74.13.0903, Public Law 104-193, Sections 407 and 605 and 45 C.F.R. Parts 98 and 99.      99-14-023, § 388-290-920, filed 6/28/99, effective 7/1/99.]

(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 recover WCCC overpayments from you, regardless of whether you are a current or past WCCC consumer, if:

(a) The amount we overpay is more than three 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)) 388-290-910; 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) Recovery of overpayments cannot force a change in your child care arrangements.

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

(a) The amount we overpay is more than three 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 388-165-180 and 388-165-185; and

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

(6) 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.

[Statutory Authority: RCW 74.04.050, 74.13.0903, Public Law 104-193, Sections 407 and 605 and 45 C.F.R. Parts 98 and 99.      99-14-023, § 388-290-950, filed 6/28/99, effective 7/1/99.]

     The following section of the Washington Administrative Code is repealed:

WAC 388-290-550

How does the department figure my adjusted earned income?

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