CABINET FOR HEALTH AND FAMILY SERVICES

Department for Community Based Services

Division of Child Care

(Amendment)

 

††††† 922 KAR 2:160. Child Care Assistance Program.

 

††††† RELATES TO: KRS 194A.060, 199.892, 199.894(1),(5), 199.896, 199.898(1), (2), 199.8982, 199.899, 199.8994, 214.036, 314.011(5), 337.275, 600.020(50)[(49)], 605.120(5), 620.020(10), 2014 Ky. Acts ch. 117, Part 1, G.9(3), 7 C.F.R. 1463,[2012,] 20 C.F.R. 652, 660-671, 45 C.F.R. 98, 205.10(a)(6), 205.50(a)(1)(i), 400.66(d), 7 U.S.C. 2012, 25 U.S.C. 459, 1261, 1401, 29 U.S.C. 723(a)(5), 38 U.S.C. 1815, 42 U.S.C. 601-619, 1395w-141[1451], 1771-1793[, 1775], 2000d, 3001, 4950-5085[5084], 8621, 9902(2), 9857-9858q[9858-9858g], 10602(c)

††††† STATUTORY AUTHORITY: KRS 194A.050(1), 199.892, 199.8994

††††† NECESSITY, FUNCTION, AND CONFORMITY: KRS 194A.050(1) requires the Secretary of the Cabinet for Health and Family Services to promulgate administrative regulations necessary to operate programs and fulfill the responsibilities vested in the cabinet, qualify for the receipt of federal funds, and cooperate with other state and federal agencies for the proper administration of the cabinet and its programs. KRS 199.892 enables the Cabinet for Health and Family Services to promulgate administrative regulations to qualify to receive federal funds under provisions of the federal Social Security Act, 42 U.S.C. 9857-9858q[601-619], and to provide for effective regulation of child care centers. KRS 199.8994 requires the cabinet to administer all child care funds to the extent allowable under federal law or regulation and in a manner which is in the best interest of the clients to be served. This administrative regulation establishes requirements that enable the Cabinet for Health and Family Services to qualify for federal funds under the Child Care and Development Fund, and establishes procedures for the implementation of the Child Care Assistance Program to the extent that funding is available.

 

††††† Section 1. Definitions. (1) "Applicant" means a childís natural or adoptive parent or an individual caring for a child in loco parentis who is applying for CCAP.

††††† (2) "Cabinet" is defined by KRS 199.894(1).

††††† (3) "Change in a circumstance" means a change that affects eligibility or benefit amounts and includes:

††††† (a) Beginning or ending employment;

††††† (b) Change in an employer or obtaining additional employment;

††††† (c) Increase or decrease in the number of work hours;

††††† (d) Increase or decrease in the rate of pay;

††††† (e) Increase or decrease in family members;

††††† (f) Change in self-employment activity;

††††† (g) Change in scheduled hours care is needed;

††††† (h) Beginning or ending an educational activity;

††††† (i) Change in child care provider;

††††† (j) Change in address or residence;

††††† (k) Change in marital status; or

††††† (l) Beginning or ending receipt of unearned income.

††††† (4) "Child care" means the provision of care for a child for a portion of a day on a regular basis, designed to supplement, but not substitute for, the parentís responsibility for the childís protection, development, and supervision.

††††† (5) "Child care and development fund" or "CCDF" is defined by 45 C.F.R. 98.2.

††††† (6) "Child Care Assistance Program" or "CCAP" means Kentuckyís child care subsidy program providing families, who meet the eligibility requirements of this administrative regulation, with the financial resources to find and afford quality child care.

††††† (7) "Child care certificate" is defined by 45 C.F.R. 98.2.

††††† (8) "Child protective services" is defined in 922 KAR 1:330, Section 1(3).

††††† (9) "Child with a special need" means a child who has multiple or severe functional needs requiring ongoing specialized care.

††††† (10) "Employment" means public or private, permanent or temporary work for an average of twenty (20) hours per week for compensation or as an unpaid job requirement.

††††† (11) "Family" means an applicant or parent, a child, and another responsible adult if present, residing in the same home.

††††† (12) "Family child-care home" is defined by KRS 199.894(5).

††††† (13) "Full day" means child care that is provided for five (5) or more hours per day.

††††† (14) "Health professional" means a person actively licensed as a:

††††† (a) Physician;

††††† (b) Physicianís assistant;

††††† (c) Advanced practice registered nurse;

††††† (d) Qualified mental health professional as defined by KRS 600.020(50); or

††††† (e) Registered nurse as defined by KRS 314.011(5) under the supervision of a physician.

††††† (15) "Homeless" means an individual or a family lacking a fixed, regular, and adequate residence due to economic hardship.

††††† (16) "In loco parentis" means a person acting in place of a parent, including:

††††† (a) A legal guardian;

††††† (b) An individual related by blood, marriage, or adoption to the child; or

††††† (c) A nonrelative pursuing legal custody of the child within one (1) year of application.

††††† (17)[(16)] "Infant" means a child who is less than one (1) year old.

††††† (18)[(17)] "Kentucky Transitional Assistance Program" or "K-TAP" means Kentucky's Temporary Assistance for Needy Families or "TANF" money payment program established in 921 KAR Chapter 2.

††††† (19)[(18)] "Parent" is defined by 45 C.F.R. 98.2.

††††† (20)[(19)] "Part day" means child care that is provided for less than five (5) hours per day.

††††† (21)[(20)] "Preschool child" means a child who has reached the third birthday up to, but not including, the sixth birthday.

††††† (22)[(21)] "Preventive services" is defined by KRS 620.020(10).

††††† (23)[(22)] "Provider" means the entity providing child care services, including:

††††† (a) A member of a limited liability corporation (LLC);

††††† (b) The head of an organization;

††††† (c) An owner of a corporation;

††††† (d) A member of a partnership;

††††† (e) An owner of a business;

††††† (f) An individual provider; or

††††† (g) A stockholder of a stock-holding company.

††††† (24)[(23)] "Qualified alien" means a child who meets the requirements of 921 KAR 2:006, Section 1(14).

††††† (25)[(24)] "Registered provider" means a child care provider who meets the requirements of 922 KAR 2:180.

††††† (26)[(25)] "Related" means having one (1) of the following relationships:

††††† (a) Child;

††††† (b) Stepchild;

††††† (c) Grandchild;

††††† (d) Great-grandchild;

††††† (e) Niece;

††††† (f) Nephew;

††††† (g) Sibling;

††††† (h) Child in legal custody; or

††††† (i) Child living in loco parentis.

††††† (27)[(26)] "Responsible adult" means a person other than the applicant who is in the childís household and who is:

††††† (a) The natural parent, adoptive parent, or stepparent; or

††††† (b) The spouse of an individual caring for a child in loco parentis.

††††† (28)[(27)] "School-age child" means a child who has reached the sixth birthday.

††††† (29) "State median income" or "SMI" means the estimated median income of households in the state.

††††† (30)[(28)] "Supplemental Nutrition Assistance Program" or "SNAP" means the program, formerly known as the Food Stamp Program:

††††† (a) Defined by 7 U.S.C. 2012; and

††††† (b) Governed by 921 KAR Chapter 3.

††††† (31)[(29)] "Teenage parent" means a head of household under the age of twenty (20) and attending high school or obtaining a GED [parent who is nineteen (19) years of age or younger].

††††† (32)[(30)] "Toddler" means a child who has reached the first birthday up to, but not including, the third birthday.

 

††††† Section 2. Application Rights and Requirements. (1) An individual may apply or reapply for CCAP through the cabinet or its designee.

††††† (2)(a) Unless an applicant is approved according to the criteria in Section 5 or 6 of this administrative regulation, an application shall have been made on the date:

††††† 1. The following is received at the cabinet or its designeeís office:

††††† a. Until April 1, 2016,[1.] a signed DCC-90, Application for Subsidized Child Care Assistance, 11/09, or DCC-90.1, Intent to Apply for Child Care Assistance, 11/09,[is received at the cabinet or its designee office]; or

††††† b. Effective April 1, 2016, a signed DCC-90, Subsidized Child Care Assistance Application Summary, 04/16, or submission in accordance with 921 KAR 2:040, Section 1(6); or

††††† 2. The agency is contacted, if the person:

††††† a. Has a physical or mental disability; and

††††† b. Needs special accommodation due to the impairment.

††††† (b) An[If the applicant is physically unable to come to the office to apply, the] applicant may designate an authorized representative to make application.

††††† (c) An[The] applicant may be:

††††† 1. Assisted by another individual of choice in the application process; and

††††† 2. Accompanied by the individual in a contact with the agency.

††††† (d) In accordance with the procedures described in 920 KAR 1:070, interpreter services shall be provided for persons who are:

††††† 1. Deaf; or

††††† 2. Hard of hearing.

††††† (e) Interpreter services shall be provided for a non-English speaking individual in accordance with Section 601 of Title VI of the Civil Rights Act of 1964, 42 U.S.C. Section 2000d.

††††† (3) The cabinet or its designee shall not discriminate against an applicant based on age, race, color, sex, disability, religious creed, national origin, or political beliefs.

††††† (4) For the month child care payment is intended to cover, a family shall meet the technical and financial eligibility criteria, according to its particular circumstances, as described in Sections 3, 4, 5, 6, and 7 of this administrative regulation.

††††† (a) An[The] applicant or recipient shall be the primary source of information and shall:

††††† 1. Furnish verification of:

††††† a. Income;

††††† b. Technical eligibility; and

††††† c. Employment; and

††††† 2. Give written consent to the cabinet or its designee necessary to verify information pertinent to the eligibility determination.

††††† (b) Upon receiving written notice of a request for information or a scheduled appointment to present required documentation, failure of an applicant or recipient to respond shall be considered a failure to present adequate proof of eligibility.

††††† (c) A homeless household shall be approved for CCAP with an extended period to verify information not to exceed ninety (90) days in accordance with 42 U.S.C. 9858c(c)(3)(B)(i).

††††† (5) The cabinet or its designee shall:

††††† (a) Render a decision on each application; and

††††† (b)[Send a DCC-105, Child Care Assistance Program Notice of Action, to the applicant in accordance with Section 11(5) of this administrative regulation] To provide written notification of the decision within thirty (30) calendar days of receipt of the application submitted in accordance with subsection (2) of this section, send:

††††† 1. A DCC-105, Child Care Assistance Program Notice of Action, 11/09, to the applicant in accordance with Section 11(5)(a) of this administrative regulation; or

††††† 2. Effective April 1, 2016, notice to the applicant in accordance with Section 11(5)(b) of this administrative regulation.

††††† (6) Each decision regarding eligibility for assistance shall be supported by documentation recorded in the applicant or recipient's case record.

††††† (7) A family shall not receive:

††††† (a) Assistance until approval of the application for benefits; or

††††† (b) Benefits prior to application.

 

††††† Section 3. Technical Eligibility. (1) A child shall be eligible for child care assistance, if the child:

††††† (a) Is a:

††††† 1. Resident of Kentucky; and

††††† 2. U.S. citizen or qualified alien;

††††† (b) Is under age:

††††† 1. Thirteen (13); or

††††† 2. Nineteen (19) and is:

††††† a. Physically or mentally incapable of caring for himself, as demonstrated by a written document provided by a health professional;

††††† b. Under court supervision; or

††††† c. Identified as a priority by federal statute, regulation, or funding source; and

††††† (c) Has a current immunization certificate showing that the child is immunized, unless:

††††† 1. There is an exception pursuant to KRS 214.036; or

††††† 2. The child is attending a:

††††† a. Licensed child-care center;

††††† b. Certified child-care home;

††††† c. Public school;

††††† d. Head Start; or

††††† e. Other entity that requires the immunization record.

††††† (2) If a child served by the CCAP is not immunized, child care assistance benefits shall be available or continue for a period of thirty (30) calendar days following the notification of the needed immunization while the family takes necessary action to comply with the immunization requirement.

††††† (3) A family shall not be eligible for a CCAP benefit if care is provided by:

††††† (a) A parent or stepparent;

††††† (b) A legal guardian;

††††† (c) A member of the K-TAP or SNAP case in which the child in need of child care assistance is included;

††††† (d) A person living in the same residence as the child in need of care;

††††† (e) A provider not:

††††† 1. Licensed according to 922 KAR 2:090, Child care center licensure;

††††† 2. Certified according to 922 KAR 2:100, Certification of family child care homes; or

††††† 3. Registered according to 922 KAR 2:180, Requirements for registered child care providers in the Child Care Assistance Program;

††††† (f)[Effective August 15, 2015, a licensed child-care center or certified family child-care home that does not participate in the quality rating program governed by 922 KAR 2:170 or 922 KAR 2:210, unless an exception is granted pursuant to Section 12(8) of this administrative regulation;

††††† (g)] A Head Start program unless the child care is provided before, after, or in between the Head Start programís operating hours as wrap-around child care; or

††††† (g)[(h)] Another child care provider if the family operates the child care business in the home.

††††† (4) If the restrictions specified in subsection (3) of this section do not apply to the provider related to the child, the provider related to the child may be eligible for payment from CCAP if the requirements of 922 KAR 2:180 are met.

††††† (5) A child in foster care shall not be eligible for CCAP.

 

††††† Section 4. Requirements for Low Income Working Family Eligibility Determination. (1) A child shall be eligible to receive CCAP if the child meets the requirements specified in Section 3 of this administrative regulation and resides with:

††††† (a) An applicant who has employment an average twenty (20) hours per week;

††††† (b) An applicant and a responsible adult who have employment an average of forty (40) hours per week combined, if the individual with the least employment has an average of at least five (5) hours of employment per week;

††††† (c) An applicant and a responsible adult if either the applicant or the responsible adult has employment an average of twenty (20) hours per week, and the other is physically or mentally unable to provide adequate care or supervision as documented by a written statement from a health professional;

††††† (d) Until April 1, 2016, a recipient[An applicant] who:

††††† 1. Loses employment or training through no fault of the recipient[their own] up to four (4) weeks;

††††† 2. Is on maternity leave for up to six (6) weeks; or

††††† 3. Is on medical leave from employment due to a health condition verified by a health professional for up to six (6) weeks;

††††† (e) Effective April 1, 2016, a recipient who is less than ninety (90) days from:

††††† 1. The loss of employment, required number of employment hours, or training through no fault of the recipient and is actively searching for employment in accordance 42 U.S.C. 9858c(c)(2)(N)(iii);

††††† 2. The start of maternity leave; or

††††† 3. The start of medical leave from employment due to a health condition verified by a health professional;

††††† (f) A relative caregiver pursuant to the conditions of a program established by KRS 605.120(5), who meets:

††††† 1. All requirements in this section; and

††††† 2. Income eligibility standards in Section 7; or

††††† (g)[(f)] A teen parent attending high school or pursuing a general equivalency degree (GED).

††††† (2) Compliance with subsection (1) of this section for an applicant or a responsible adult who is self-employed shall be determined by dividing income calculated in accordance with Section 7(7)(d) of this administrative regulation by minimum wage established in accordance with KRS 337.275.

††††† (3) Until April 1, 2016, an applicant eligible in accordance with this section shall sign and return the DCC-91, Client Rights and Responsibilities Sheet, and the DCC-94, Child Care Service Agreement and Certificate, 11/09.

 

††††† Section 5. Requirements for Protection and Permanency Eligibility Determination. (1) A child shall be eligible to receive CCAP if the child:

††††† (a) Resides with an applicant who:

††††† 1. Receives child protective or preventive services; or

††††† 2. Needs to receive child protective or preventive services based upon an assessment conducted by child protective services staff pursuant to 922 KAR 1:330; and

††††† (b) Meets the requirements listed in Section 3 of this administrative regulation.

††††† (2) A child shall be approved for child care assistance by the cabinet in accordance with subsection (1) of this section without a separate application, as an integral part of a protective or preventive services plan in accordance with 922 KAR 1:430.

††††† (3)[A child who participates in the CCAP as a result of a child protective or preventive services authorization shall not be eligible for more than six (6) months without further authorization.

††††† (4)](a) Based on the assessment in accordance with 922 KAR 1:330, the cabinet may waive the family copayment required by Section 10 of this administrative regulation for a child who participates in CCAP as a result of child protective services authorization.

††††† (b) If the cabinet waives the family copayment in accordance with paragraph (a) of this subsection, the cabinet shall document the reason for the waiver in the child's protective services case plan.

††††† (5) Until April 1, 2016, an applicant eligible in accordance with this section shall sign and return the DCC-91.

 

††††† Section 6. Kentucky Works Child Care Eligibility Determination. (1) A child shall be eligible for CCAP if the child:

††††† (a) Resides with an applicant who is participating in the Kentucky Works Program described in 921 KAR 2:370; and

††††† (b) Meets the requirements listed in Section 3 of the administrative regulation.

††††† (2) A child shall be approved for child care assistance by the cabinet in accordance with subsection (1) of this section without a separate application as an integral part of a Kentucky Works Program self-sufficiency plan.

††††† (3) Until April 1, 2016, an applicant eligible in accordance with this section shall sign and return the DCC-91.

 

††††† Section 7. Income Eligibility. (1)(a) A child shall be eligible for the CCAP if the familyís income is less than or equal to:

Family Household Size

Initial Application Annual Income Limit

Initial Application Monthly Income Limit

Recertification or Recalculation Annual Income Limit

Recertification or Recalculation Monthly Income Limit

2

$22,068.00

$1,839.00

$24,276.00

$2,023.00

3

$27,804.00

$2,317.00

$30,588.00

$2,549.00

4

$33,528.00

$2,794.00

$36,888.00

$3,074.00

5

$39,264.00

$3,272.00

$43,188.00

$3,599.00

6

$44,988.00

$3,749.00

$49,500.00

$4,125.00

7

$50,724.00

$4,227.00

$55,800.00

$4,650.00

8

$56,448.00

$4,704.00

$62,100.00

$5,175.00

††††† (b) For a family with more than eight (8) people, the cabinet or its designee shall determine the householdís maximum income for eligibility determination purposes by adding:

††††† 1. $478.00 to the monthly income limit, or $5,736.00 to the annual income limit, for each additional family member for initial application; and

††††† 2. $525.00 to the monthly income limit, or $6,300.00 to the annual income limit, for each additional family member for recertification or recalculation[140 percent of the 2011 federal poverty level at:

††††† 1. Initial application; or

††††† 2. Redetermination or eligibility recalculation in accordance with Section 8 of this administrative regulation.

††††† (b) On or after July 1, 2015, a child shall be eligible for the CCAP if the familyís income is less than or equal to:

††††† 1. 150 percent of the 2011 federal poverty level at initial application; or

††††† 2. 165 percent of the 2011 federal poverty level at redetermination or eligibility recalculation in accordance with Section 8 of this administrative regulation.

††††† (2) A family that becomes ineligible for K-TAP shall remain eligible for CCAP for twelve (12) months from the date of the K-TAP discontinuance, if the familyís income remains less than or equal to:

††††† (a) 140 percent of the 2011 federal poverty level; or

††††† (b) 165 percent of the 2011 federal poverty level on or after July 1, 2015].

††††† (2)[(3)] Except for a child who is eligible as specified in Section 5 of this administrative regulation, gross income received or anticipated to be received by the applicant and responsible adult shall be considered when the cabinet or its designee determines the familyís eligibility for the CCAP.

††††† (3)[(4)] A child that is eligible for CCAP as specified in Section 5 of this administrative regulation shall be eligible without regard to the familyís income.

††††† (4)[(5)] Excluded income shall be:

††††† (a) K-TAP child only payments, including back payment;

††††† (b) A payment received from the Kinship Care Program, pursuant to 922 KAR 1:130, including back payment;

††††† (c) Educational grant, loan, scholarship, and work study income;

††††† (d) The value of Kentucky Works supportive services payment pursuant to 921 KAR 2:017;

††††† (e) The value of United States Department of Agriculture program benefits including:

††††† 1. Donated food;

††††† 2. Supplemental food assistance received pursuant to 42 U.S.C. 1771;

††††† 3. Special food service program for a child pursuant to 42 U.S.C. 1775;

††††† 4. Nutrition program for the elderly pursuant to 42 U.S.C. 3001; and

††††† 5. The monthly allotment under SNAP;

††††† (f) Payment made directly to a third party on behalf of the applicant or recipient by a nonresponsible person;

††††† (g) In-kind income;

††††† (h) Reimbursement for transportation in performance of an employment duty, if identifiable;

††††† (i) Nonemergency medical transportation payment;

††††† (j) Highway relocation assistance;

††††† (k) Urban renewal assistance;

††††† (l) Federal disaster assistance and state disaster grant;

††††† (m) Home produce utilized for household consumption;

††††† (n) Housing subsidy received from federal, state, or local governments;

††††† (o) Receipt distributed to a member of certain Indian tribes by the federal government pursuant to 25 U.S.C. 459, 1261 and 1401;

††††† (p) Funds distributed per capita to or held in trust for a member of an Indian tribe by the federal government pursuant to 25 U.S.C. 459, 1261 and 1401;

††††† (q) Payment for supporting services or reimbursement of out-of-pocket expense made to an individual volunteering as:

††††† 1. Senior health aide; or

††††† 2. Member of the:

††††† a. Service Corps of Retired Executives; or

††††† b. Active Corps of Executives;

††††† (r) Payment made to an individual from a program pursuant to 42 U.S.C. 4950 to 5085[5084] if less than the minimum wage under state or federal law, whichever is greater, including:

††††† 1. Volunteers in Service to America (VISTA);

††††† 2. Foster Grandparents;

††††† 3. Retired and Senior Volunteer Program; or

††††† 4. Senior Companion;

††††† (s) Payment from the cabinet for:

††††† 1. Child foster care; or

††††† 2. Adult foster care;

††††† (t) Energy assistance payment made under:

††††† 1. The Low Income Home Energy Assistance Program pursuant to 42 U.S.C. 8621; or

††††† 2. Other energy assistance payment made to an energy provider or provided in-kind;

††††† (u) The principal of a verified loan;

††††† (v) Up to $12,000 to Aleuts and $20,000 to an individual of Japanese ancestry for payment made by the United States Government to compensate for a hardship experienced during World War II;

††††† (w) The advance payment or refund of earned income tax credit;

††††† (x) Payment made from the Agent Orange Settlement Fund;

††††† (y) Payment made from the Radiation Exposure Compensation Trust Fund;

††††† (z) Up to $2,000 per year of income received by individual Indians denied from a lease or other use of individually-owned trust or restricted lands;

††††† (aa) Payment made to an individual because of the individual's status as a victim of Nazi persecution;

††††† (bb) Income received from temporary employment from the United States Department of Commerce, Bureau of the Census;

††††† (cc) A payment received from the National Tobacco Growers Settlement Trust;

††††† (dd) A Tobacco Loss Assistance Program payment pursuant to 7 C.F.R. 1463;

††††† (ee) A payment received from a crime victim compensation program according to the Antiterrorism and Effective Death Penalty Act of 1996 pursuant to 42 U.S.C. 10602(c);

††††† (ff) A payment made, pursuant to 38 U.S.C. 1815 by the Veteran's Administration, to children of female Vietnam veterans;

††††† (gg) A discount or subsidy provided to Medicare beneficiaries pursuant to 42 U.S.C. 1395w-141[Section 1860D-31(g)(6) of the Social Security Act, 42 U.S.C. 601-619];

††††† (hh) Any cash grant received by the applicant under the Department of State or Department of Justice Reception and Placement Programs pursuant to 45 C.F.R. 400.66(d);

††††† (ii) Reimbursement payment for a vocational rehabilitation individual participating in Preparing Adults for Competitive Employment pursuant to 29 U.S.C. 723(a)(5);[or]

††††† (jj) Income or earnings from a program funded under the Work Investment Act (WIA) pursuant to 20 C.F.R. 652 and 660 to 671; or

††††† (kk) Effective April 1, 2016, Supplemental Security Income (SSI) for a child.

††††† (5)[(6)] Deductions from gross income shall be:

††††† (a) Actual, legally obligated child support payment made by the applicant or responsible adult to a party not living in the familyís residence; and

††††† (b) Operating costs to determine adjusted gross income from self-employment.

††††† (6)[(7)] Best estimate.

††††† (a) Gross income shall be computed by using a best estimate of income that may exist in the benefit month.

††††† (b) The following method shall be used to calculate a best estimate of earned income other than earned self-employment:

††††† 1. Cents shall:

††††† a. Not be rounded to the nearest dollar before adding or multiplying hourly or daily earnings; and

††††† b. Be rounded to the nearest dollar before adding or multiplying weekly, biweekly, semi-monthly, monthly, quarterly, or annual earnings[at any step in the calculation];

††††† 2. Unless it does not represent the ongoing situation, income from all pay periods in the preceding two (2) calendar months shall be used;

††††† 3. A monthly amount shall be determined by[: a.] adding gross income from each pay period,[; b.] dividing by the total number of pay periods considered,[;] and[c.] converting the pay period figure to a monthly figure by multiplying a:

††††† a.[(i)] Weekly amount by:

††††† (i) 4.334; or

††††† (ii) Effective April 1, 2016, four and one-third (4 1/3);

††††† b. Biweekly amount by:

††††† (i) 2.167; or

††††† (ii) Effective April 1, 2016, two and one-sixth (2 1/6); or

††††† c.[(iii)] Semimonthly amount by two (2); and

††††† 4. If income has recently begun and the applicant or recipient has not received a calendar month[two (2) calendar months] of earned income, the anticipated monthly income shall be computed by:

††††† a. Multiplying the:

††††† (i) Hourly rate by the estimated number of hours to be worked in a pay period; or

††††† (ii) Daily rate by the estimated number of days to be worked in the pay period;[and]

††††† b. Converting the resulting pay period figure to a monthly amount pursuant to subparagraph 3.c. of this paragraph; and

††††† c. Rounding to the nearest dollar.

††††† (c) For a case with unearned income, other than unearned self-employment income, a monthly amount shall be determined by:

††††† 1.[Not rounding cents at any step in the calculation;

††††† 2.] Using the gross monthly amount of continuing, stable unearned income received on a monthly basis; and

††††† 2.[3.] Averaging the amount of unstable[nonstable] unearned income received in the three (3) prior calendar months, unless it does not represent the ongoing situation.

††††† (d) For a case with self-employment income, a monthly amount shall be determined as follows:

††††† 1.[Cents shall not be rounded at any step in the calculation;

††††† 2.] If the self-employment enterprise has been in operation for at least a year, the income shall be prorated by dividing the income from the last calendar year by twelve (12);

††††† 2.[3.] If the self-employment enterprise has been in operation for less than a year, the income shall be prorated by dividing by the number of months the business has been in existence; and

††††† 3.[4.] Profit shall be determined by:

††††† a. Rounding the total gross income to the nearest dollar;

††††† b. Rounding the total amount of allowable expenses to the nearest dollar;

††††† c. Dividing total gross income and total amount of allowable expenses separately by twelve (12) or the appropriate number of months, and rounding the quotients to the nearest dollar; and

††††† d. Subtracting the rounded monthly allowable expense quotient from the rounded monthly gross income quotient.

††††† (e) If the cabinet or its designee becomes aware of a change in circumstance, the best estimate shall be recalculated[Dividing the allowable expenses permitted by the Internal Revenue Service except for depreciation by:

††††† (i) Twelve (12) if the enterprise has been in operation for at least a year; or

††††† (ii) The number of months the business has been operating if the business has been in existence for less than a year; and

††††† b. Subtracting the monthly expense from the monthly income].

 

††††† Section 8. Continuing Eligibility. (1) Continued eligibility under the CCAP shall be recertified[redetermined] at least every[: (a)] twelve (12) months[; or

††††† (b) Six (6) months for a child eligible pursuant to requirements in Section 5 of this administrative regulation].

††††† (2) Eligibility shall be reviewed and recalculated if necessary due to a known or reported change in circumstance.

††††† (3) A nonrelative who is acting in loco parentis for a child shall be required to show proof of efforts to seek permanent custody of the child or adopt the child within one (1) year of initial application as a condition of continued eligibility for CCAP.

††††† (4) Effective April 1, 2016, in accordance with 42 U.S.C. 9858c(c)(2)(N), if a familyís income does not exceed eighty-five (85) percent of Kentuckyís SMI, the family shall remain eligible for CCAP until recertification in accordance with this section.

 

††††† Section 9. Payment Rates and Policy. (1)(a) Prior to February 1, 2016, to the extent funds are available, the cabinet shall make payments as listed in the DCC-300, Kentucky Child Care Maximum Payment Rates Chart, 10/14.

††††† (b) Effective on or after February 1, 2016, to the extent funds are available, the cabinet shall make payments as listed in the DCC-300, Kentucky Child Care Maximum Payment Rates Chart, 02/16.

††††† (c)[(a)] The rates in the DCC-300 shall represent the maximum payment rates on a per day, per child, per child care provider basis.

††††† (d)[(b)] The maximum payment rates shall include the following categories:

††††† 1. Full day;

††††† 2. Part day;

††††† 3. Licensed;

††††† 4. Certified;

††††† 5. Registered;

††††† 6. Infant/Toddler;

††††† 7. Preschool child; and

††††† 8. School-age child.

††††† (2) To the extent funds are available, a licensed or certified provider shall receive:

††††† (a) Two (2) dollars per day beyond the maximum rate if the provider is accredited by the:

††††† 1. National Association for the Education for Young Children;

††††† 2. National Early Childhood Program Accreditation;

††††† 3. National Association for Family Child Care;

††††† 4. Council on Accreditation; or

††††† 5. Other accrediting body approved by the Early Childhood Advisory Council or the cabinet; or

††††† (b) One (1) dollar per day beyond the maximum rate for nontraditional care for providing child care assistance based on the parent's schedule between:

††††† 1. 7 p.m. to 5 a.m. daily; or

††††† 2. Friday, 7 p.m. through Monday, 5 a.m.

††††† (3) To the extent funds are available, a licensed, certified, or registered provider shall receive a special care rate of one (1) additional dollar per day beyond the maximum rate for care of a child:

††††† (a) With a special need; or

††††† (b) Who is age thirteen (13), but under age nineteen (19), and is:

††††† 1. Physically or mentally incapable of caring for himself as determined by a health professional; or

††††† 2. Under court supervision.

††††† (4) The cabinet or its designee shall determine the maximum daily reimbursement rate not to exceed the amount charged to the general public.

††††† (5) A child care provider registered according to 922 KAR 2:180 shall not be paid for more than:

††††† (a) Three (3) children receiving CCAP per day; or

††††† (b) Six (6) children receiving CCAP per day, if those children are:

††††† 1. A part of a sibling group; and

††††† 2. Related to the provider.

††††† (6) A family meeting the requirements of Section 4 or 6 of this administrative regulation shall be eligible for payment to cover child care needs due to full-time or part-time enrollment in an educational program.

††††† (7) To the extent funds are available, required enrollment fees shall be paid no more than three (3) times in a twelve (12) month period for a family meeting the requirements in Section 5 or 6 of this administrative regulation.

 

††††† Section 10. Family Copayment. (1) Unless a family copayment has been waived in accordance with Section 5(4) of this administrative regulation, a family of a child served by the CCAP shall be responsible for a copayment in accordance with the family copayment table in subsection (3) of this section.

††††† (2) If a court orders a parent of a CCAP-eligible child to pay a portion of the child's child care expenses, the court-ordered payment shall be in lieu of the family copayment required by subsection (3) of this section.

††††† (3)(a) The cabinet or its designee shall determine a copayment that a family shall pay to the provider for the cost of child care, based on the following table:

Family Co-Payment Per Day

Income Range

Monthly

Family Size 2

Family Co-Pay With 1 Child

Family Size 3

Family

Co-Pay

Family Size 4

Family

Co-Pay

Family Size 5 or More

Family

Co-Pay

With 1 Child

With

2 or more

With 1 Child

With

2 or more

With 1 Child

With

2 or more

0

899

$0

$0

$0

$0

$0

$0

$0

900

999

$2

$2

$3

$2

$2

$2

$2

1,000

1,099

$3

$3

$3

$2

$3

$2

$3

1,100

1,199

$4

$4

$4

$3

$3

$2

$3

1,200

1,299

$4

$4

$5

$4

$4

$3

$3

1,300

1,399

$5

$5

$5

$5

$5

$3

$4

1,400

1,499

$6

$5

$6

$5

$6

$4

$4

1,500

1,599

$7

$6

$6

$6

$6

$5

$5

1,600

1,699

$8

$6

$7

$6

$7

$6

$6

1,700

1,799

$9

$7

$8

$7

$8

$6

$7

1,800

1,899

$10

$8

$9

$7

$8

$7

$8

1,900

1,999

$10

$9

$10

$8

$9

$8

$9

2,000

2,099

$11

$10

$11

$8

$9

$8

$9

2,100

2,199.99

$12

$10

$11

$9

$10

$9

$10

2,200

2,299.99

$12

$11

$12

$10

$11

$9

$10

2,300

2,399.99

$12

$12

$13

$11

$12

$9

$10

2,400

2,499.99

$12

$12

$13

$12

$13

$10

$11

2,500

2,599.99

$12

$13

$14

$12

$13

$10

$11

2,600

2,699.99

$12

$13

$14

$13

$14

$12

$13

2,700

2,799.99

$12

$13

$14

$13

$14

$13

$14

2,800

2,899.99

$12

$13

$14

$14

$15

$14

$15

2,900

2,999.99

$12

$13

$14

$14

$15

$16

$17

3,000

3,099.99

$12

$13

$14

$15

$16

$18

$19

3,100

3,199.99

$12

$13

$14

$15

$16

$20

$21

3,200

3,299.99

$12

$13

$14

$15

$16

$20

$21

3,300

3,399.99

$12

$13

$14

$15

$16

$22

$23

3,400

3,499.99

$12

$13

$14

$15

$16

$22

$23

3,500

3,599.99

$12

$13

$14

$15

$16

$24

$25

3,600

3,699.99

$12

$13

$14

$15

$16

$25

$25

††††† (b) The maximum copayment for an eligible family with more than five (5) members shall be twenty-five (25) dollars.

††††† [(4)(a) If a provider notifies the cabinet or its designee that a family has failed to comply with a required copayment for two (2) weeks, the cabinet or its designee shall request that the provider develop a payment plan with the family.

††††† (b) If a provider notifies the cabinet or its designee that a family fails to enter into a payment plan within ten (10) days from a provider's notification that a payment plan is necessary, or a family fails to make two (2) payments in accordance with the payment plan, the cabinet shall:

††††† 1. Not pay a subsequent provider until the family demonstrates compliance with the payment plan; and

††††† 2. Terminate CCAP for the family.

††††† (c) The cabinet or its designee may grant an exception to paragraph (b) of this subsection due to:

††††† 1. A disaster verified by utility provider, local, state, or federal government;

††††† 2. The closure of a provider;

††††† 3. Family circumstances, such as relocation, illness, or death; or

††††† 4. A risk to the health, welfare, or safety of the child or parent.]

 

††††† Section 11. Family Rights and Responsibilities. (1) The family of a child served by the CCAP shall have rights pursuant to KRS 199.898(1) and (2).

††††† (2) Unless an alternative program such as Head Start, state preschool, or state kindergarten is available and accessible during the time child care is needed, an applicant for a child who receives or has been approved to receive CCAP benefits shall:

††††† (a) Be offered choice of child care assistance subject to the availability of state and federal funds; and

††††† (b) Receive a child care certificate:

††††† 1.[,] The DCC-94, 11/09; or

††††† 2. Effective April 1, 2016, the DCC-94, 04/16.

††††† (3) An applicant approved in accordance with Section 4 of this administrative regulation shall sign and return:

††††† (a) The DCC-91 and the DCC-94, 11/09; or

††††† (b) Effective April 1, 2016, the DCC-90, 04/16.

††††† (4) Until April 1, 2016, an applicant approved in accordance with Section 5 or 6 of this administrative regulation shall sign and return the DCC-91.

††††† (5) Notification of action.

††††† (a) Until April 1, 2016, a DCC-105, Child Care Assistance Program Notice of Action, 11/09:

††††† 1. Shall serve many purposes in the administration of CCAP, including notice to an applicant or recipient of:

††††† a.[1.] Changes in:

††††† (i)[a.] Copayment;

††††† (ii)[b.] Certification period; or

††††† (iii)[c.] Household size;

††††† b.[2.] Approval of:

††††† (i)[a.] Application; or

††††† (ii)[b.] Continued eligibility; or

††††† c.[3.] Adverse action, including:

††††† (i)[a.] Denial of application;

††††† (ii)[b.] Reduction of CCAP benefits; or

††††† (iii)[c.] Termination of CCAP benefits;[.]

††††† 2.[(b) the DCC-105] Providing notice of an adverse action shall include:

††††† a.[1.] Reason for the adverse action;

††††† b.[2.] Citation from an applicable state administrative regulation; and

††††† c.[3.] Information regarding the:

††††† (i)[a.] Informal dispute resolution process in accordance with Section 17 of this administrative regulation; and

††††† (ii)[b.] Opportunity to request an administrative hearing in accordance with Section 18 of this administrative regulation; and

††††† 3.[. (c) the language on the DCC-105] Shall contain language that differs[differ] according to the purpose of the notice described in subparagraphs 1 through 2 of this paragraph[paragraphs (a) and (b) of this subsection].

††††† (b) Effective April 1, 2016:

††††† 1. A DCC-94C, Provider Notification Letter, shall provide notice to a provider of a childís discontinuation from CCAP or disenrollment with a provider;

††††† 2. A DCC-94.1, CHILD CARE Approval Notice, shall provide notice of:

††††† a. A change in the certification period of child;

††††† b. Approval of an application; or

††††† c. Continued eligibility;

††††† 3. A DCC-105, Child Care Denial/Discontinuance Notice, 04/16, shall provide notice of:

††††† a. Denial of an application;

††††† b. Discontinuance of a CCAP benefit;

††††† c. Reason for adverse action;

††††† d. Citation from an applicable state administrative regulation; and

††††† e. Information regarding the opportunity to request an administrative hearing in accordance with Section 17 of this administrative regulation; and

††††† 4. The language on the form shall differ according to the purpose of the notice described in subparagraphs 1 through 3 of this paragraph.

††††† (6)[An applicant may change the applicantís provider a maximum of three (3) times in a twelve (12) month period, unless an exception is authorized by the cabinet or its designee due to:

††††† (a) A disaster verified by utility provider, local, state, or federal government;

††††† (b) Closure of a provider;

††††† (c) Family circumstances, such as relocation, illness, or death;

††††† (d) A risk to the health, welfare, or safety of the child or the applicant; or

††††† (e) Failure of the provider to comply with Section 13(1) of this administrative regulation.

††††† (7) A family that changes the child care provider more than three (3) times as described in subsection (6) of this section shall be discontinued from the CCAP and unable to participate until the end of the eligibility period in effect at the time of discontinuance.

††††† (8)] An applicant for a child served by CCAP shall advise the cabinet or its designee of a change in a circumstance within ten (10) calendar days of the day the change is known.

††††† (7)[(9)] Failure to report a change in a circumstance may result in a:

††††† (a) Decrease or discontinuance of CCAP benefits based on the type of change; or

††††† (b) Claim in accordance with 922 KAR 2:020.

††††† (8)[(10)] An applicant for a child served by CCAP who fails to cooperate with a cabinet quality control or case review shall be:

††††† (a) Discontinued from CCAP benefits; and

††††† (b) Unable to participate in CCAP until the applicant meets the requirements of the quality control or case review.

††††† (9)[(11)] An applicant for a child served by CCAP shall report to the cabinet or its designee a provider whom the applicant suspects is not fulfilling requirements in accordance with Section 13(1)(c) of this administrative regulation.

 

††††† Section 12. Cabinet Requirements. (1) The DCC-94 shall:

††††† (a) Be used for child care assistance provided by a licensed, certified, or registered provider; and

††††† (b) Not be considered a contract, employment, or grant to the child care provider, but shall be considered assistance to the applicant pursuant to 45 C.F.R. 98.30(c)(6).

††††† (2) The cabinet or its designee shall provide consumer information regarding conditions for termination of the DCC-94 pursuant to KRS 199.8994(6)(b).

††††† (3) The cabinet or its designee shall assure that a provider of child care assistance funded under the CCDF and other local, state, or federal funds shall comply with the applicable regulatory requirements pursuant to:

††††† (a) 922 KAR 2:020, Child Care Assistance Program (CCAP) improper payments, claims, and penalties;

††††† (b) 922 KAR 2:090, Child care center licensure;

††††† (c) 922 KAR 2:100, Certification of family child care homes;

††††† (d) 922 KAR 2:110, Child care facility provider requirements;

††††† (e) 922 KAR 2:120, Child care facility health and safety standards;

††††† (f)[922 KAR 2:170, STARS for KIDS NOW Program for Type I licensed child-care centers, effective August 15, 2015, unless an exception is granted in accordance with Section 12(8) of this administrative regulation;

††††† (g)] 922 KAR 2:180, Requirements for registered child care providers in the Child Care Assistance Program; and

††††† (g)[(h)] 922 KAR 2:190, Civil penalties[; and

††††† (i) 922 KAR 2:210, STARS for KIDS NOW Program for Type II licensed child-care centers and certified family child-care homes, effective August 15, 2015, unless an exception is granted in accordance with Section 12(8) of this administrative regulation].

††††† (4) Effective April 1, 2016, the cabinet or its designee shall complete a home inspection of a registered child care provider in CCAP in accordance with 42 U.S.C. 9858c(c)(2)(K)(i)(IV) and 922 KAR 2:180.

††††† (5) If CCAP benefits are reduced or discontinued[terminated] due to the shortage of funding, the cabinet shall provide a minimum thirty (30) calendar day notice to each family receiving child care assistance.

††††† (6)[(5)] If the daily maximum payment rate is reduced due to the shortage of funding, the cabinet shall provide a minimum thirty (30) calendar day notice to licensed, certified, or registered providers.

††††† (7)[(6)] The cabinet shall send a notice of adverse action ten (10) calendar days in advance of taking adverse action.

††††† (8)[(7)] The cabinet shall prioritize child care assistance benefits as determined by the available funds as follows:

††††† (a) Child protective or preventive services authorization;

††††† (b) A child with a special need;

††††† (c) K-TAP recipients participating in the Kentucky Works Program established in 921 KAR 2:370;

††††† (d) Teen parents attending high school or pursuing a general equivalency degree (GED);

††††† (e) A K-TAP recipient attempting to transition off assistance through employment;

††††† (f) A parent whose K-TAP case has been discontinued during the previous twelve (12) months and who needs child care assistance in order to accept or retain employment;

††††† (g) A low income working parent; or

††††† (h) A parent in education or training programs leading to self-sufficiency.

††††† [(8)(a) The cabinet shall grant an exception for a CCAP-eligible childís placement with a child care provider participating in the quality rating program governed by 922 KAR 2:170 and 922 KAR 2:210 if:

††††† 1. A violation of or conflict with 45 C.F.R. 98.30 would result, such as:

††††† a. A geographic area in which an adequate supply of child care is lacking; or

††††† b. A parentís scheduling, transportation, or other circumstance that prevents the use of a child care provider participating within the quality rating program;

††††† c. A child is approved for CCAP in accordance with Section 5 or 6 of this administrative regulation;

††††† d. A child has special needs; or

††††† e. The provision of child care is available through a provider:

††††† (i) Registered in accordance with 922 KAR 2:180;

††††† (ii) Operated by the armed services located on an armed forces base; or

††††† (iii) Regulated by another state;

††††† 2. A situation or circumstance, such as an emergency or disaster, necessitates the provision of emergency child care; or

††††† 3. Noncompliance or federal penalty under 421 U.S.C. 601-619 or 42 U.S.C. 9858-9858g would result.

††††† (b) The DCC-400, Request for Exception from Placement with a STAR-Rated Child Care Provider:

††††† 1. Shall be used to request an exception in accordance with paragraph (a)1 of this subsection; and

††††† 2. May be used to request an exception in accordance with paragraphs (a)2 and (a)3 of this subsection.

††††† (c) The cabinet shall respond to a completed and signed DCC-400 in accordance with Section 11(3) of this administrative regulation within ten (10) calendar days of its submission unless:

††††† 1. The cabinet experiences a circumstance that prolongs the review of the request; and

††††† 2. Notice of the extension is provided to the requesting parent.]

 

††††† Section 13. Provider Requirements. (1) A licensed child-care center, certified family child-care home, or registered child care provider that serves a child who participates in the CCAP shall:

††††† (a) Sign and give to the parent for submission[submit the DCC-94] to the cabinet or its designee, prior to receiving payment from the CCAP, the following form:

††††† 1. Until April 1, 2016, the DCC-94, 11/09; or

††††† 2. Effective April 1, 2016, the DCC-94, 04/16;

††††† (b) Report all absences on the DCC-97, Provider Billing Form, submitted to the cabinet or its designee;

††††† (c)1. Maintain the DCC-94E, Child Care Daily Attendance Record, in which the attendance is:

††††† a. Recorded legibly each time the child arrives and each time the child departs the providerís care; and

††††† b. Signed by the parent or applicant for the child served by CCAP; and

††††† 2. Submit the DCC-94E upon request of the cabinet or its designee;

††††† (d) Comply with the applicable regulatory requirements pursuant to:

††††† 1. 922 KAR 2:020, Child Care Assistance Program (CCAP) improper payments, claims, and penalties;

††††† 2. 922 KAR 2:090, Child care center licensure;

††††† 3. 922 KAR 2:100, Certification of family child care homes;

††††† 4. 922 KAR 2:110, Child care facility provider requirements;

††††† 5. 922 KAR 2:120, Child care facility health and safety standards;

††††† 6.[922 KAR 2:170, STARS for KIDS NOW Program for type I licensed child-care centers, effective August 15, 2015, unless an exception is granted in accordance with Section 12(8) of this administrative regulation;

††††† 7.] 922 KAR 2:180, Requirements for registered child care providers in the Child Care Assistance Program; and

††††† 7.[8.] 922 KAR 2:190, Civil penalties[; and

††††† 9. 922 KAR 2:210, STARS for KIDS NOW Program for type II licensed child-care centers and certified family child-care homes, effective August 15, 2015, unless an exception is granted in accordance with Section 12(8) of this administrative regulation]; and

††††† (e) Complete the cabinet approved training on billing and the DCC-94E[:

††††† 1.] prior to receiving an initial payment from CCAP [if the provider will begin participation in CCAP after October 15, 2014; or

††††† 2. By August 4, 2015, if the provider began participation in CCAP prior to October 15, 2014].

††††† (2) A licensed or certified child care provider shall complete and submit the following form[DCC-94B, Licensed or Certified Provider Agreement Form,] prior to receiving payment from the CCAP:

††††† (a) Until April 1, 2016, the DCC-94B, Licensed or Certified Provider Agreement Form, 10/14; or

††††† (b) Effective April 1, 2016, the DCC-94B, 04/16.

††††† (3) A licensed child care provider shall maintain written documents with attendance records stating the reason for any absence of a child receiving CCAP in excess of five (5) absences per month per child.

††††† (4)(a) If CCAP records indicate that a certified family child-care home or a licensed child-care center is operating over capacity, as specified in 922 KAR 2:100 or 922 KAR 2:120 respectively, by having two (2) or more shifts, the cabinet shall request an operating plan from the provider.

††††† (b) An operating plan in accordance with paragraph (a) of this subsection shall specify:

††††† 1. Each employee of each shift;

††††† 2. The work hours for each employee of each shift;

††††† 3. The management for each shift;

††††† 4. The work hours for each management employee of each shift; and

††††† 5. The children enrolled for each shift.

††††† (c) The cabinet shall approve a provider for overcapacity if:

††††† 1. The operating plan meets all requirements of 922 KAR 2:090, 2:110, and 2:120; and

††††† 2. The provider has had less than two (2) health, safety, or welfare deficiencies or violations within the previous twenty-four (24) month period, even if deficiencies were corrected[an operating plan that demonstrates the health, safety, and welfare of a child in care in accordance with this administrative regulation and an administrative regulation listed in subsection (1)(d) of this section].

††††† (5) Effective April 1, 2016, a registered child care provider in CCAP shall comply with an inspection in accordance with 42 U.S.C. 9858c(c)(2)(K)(i)(IV) and 922 KAR 2:180 conducted by the cabinet or its designee.

††††† (6) A provider shall be ineligible for CCAP if the provider:

††††† (a) Was discontinued or disqualified from participation in a governmental assistance program due to fraud or abuse of the program;

††††† (b) Has had a previous ownership interest in a child-care provider, which had a prior certification, license, registration, or permit to operate denied, suspended, revoked, or voluntarily relinquished as a result of an investigation or pending adverse action; or

††††† (c) Is a parent, spouse, sibling, or child of a previous provider described in paragraphs (a) and (b) of this subsection, and the previous provider will be involved in new providerís operations in any capacity.

 

††††† Section 14. Other Services. To the extent state funds are available, a child whose familyís income is over the income limits for the CCAP described in Section 7 may be eligible for:

††††† (1) Child care payments;

††††† (2) Enrollment fees;

††††† (3) Activity or day trip fees;

††††† (4) Material fees;

††††† (5) Transportation fees; or

††††† (6) Other items relating to child care services with prior approval of the cabinet.

 

††††† Section 15. An improper payment, claim, or penalty in CCAP shall be in accordance with 922 KAR 2:020.

 

††††† Section 16. Criteria for Nonpayment. (1) Payment under the CCAP shall:

††††† (a) Not be made to a licensed provider for more than five (5) absences per child during a month if the provider fails to verify in writing, and maintain attendance records verifying, that the additional absences were related to:

††††† 1. A death in the family;

††††† 2. An illness of the:

††††† a. Child; or

††††† b. Applicant; or

††††† 3. A Disaster verified by utility provider, local, state, or federal government;

††††† (b) Not be made to a certified provider for more than five (5) absences per child during a month;

††††† (c) Not be made to a registered provider for any absences;

††††† (d) Be denied in accordance with KRS 199.8994(6);

††††† (e) Cease if a family or provider defaults on a payment in accordance with Section 10(4) of this administrative regulation or 922 KAR 2:020;

††††† (f) Not be made if a family no longer meets the technical or financial eligibility requirements under the CCAP;

††††† (g) Not be made to a provider for payment requests ninety (90) days after the date of service;

††††† (h) Not be made to a licensed or certified provider for more than ten (10) holidays per calendar year;

††††† (i) Cease if a provider denies:

††††† 1. A parent of a child in care, the cabinet, the cabinetís designee, or a representative of an agency with regulatory authority:

††††† a. Entry into the providerís premises during operating hours; or

††††† b. Access to a child in care; or

††††† 2. The cabinet, the cabinetís designee, or a representative of an agency with regulatory authority access to the providerís records relevant to a:

††††† a. Cabinet review, including CCAP quality control or case review; or

††††† b. Review by another agency with regulatory authority;

††††† (j) Not be made to a provider if the providerís DCC-94E in accordance with Section 13(1)(c) of this administrative regulation does not support billing for a child reported as served for the same period of time on the DCC-97;

††††† (k) Not be made if a licensed or certified provider cares for a child served by CCAP at a location not specified on the DCC-94; or

††††† (l) Not be made to a provider for a child in care over the capacity of the provider, as governed by 922 KAR 2:100 or 922 KAR 2:120, unless an operating plan is approved in accordance with Section 13(4) of this administrative regulation.

††††† (2) Subject to the availability of state or federal funds, the cabinet may suspend approval of initial application for benefits under the CCAP following the priorities established in Section 12(8)[(7)] of this administrative regulation.

 

††††† Section 17.[Informal Dispute Resolution and Appeals. (1) An applicant for CCAP or a parent of a child receiving CCAP:

††††† (a) May seek an informal dispute resolution if the applicant or parent is dissatisfied with an action by the cabinet or its designee concerning a denial, reduction, or termination of CCAP benefits;

††††† (b) Shall request an informal dispute resolution with the cabinet or its designee within ten (10) days of the:

††††† 1. Notice of denial for CCAP in accordance with Section 2(5) of this administrative regulation; or

††††† 2. Date of the adverse action for which notice is provided in accordance with Section 12(6) of this administrative regulation; and

††††† (c) Who is dissatisfied with the decision of the informal dispute resolution, may submit an administrative hearing request:

††††† 1. In accordance with Section 18 of this administrative regulation; and

††††† 2. Within thirty (30) calendar days of the date of the decision made by the cabinet or its designee in accordance with subsection (3) of this section.

††††† (2)(a) If the child's parent provides notice within ten (10) calendar days from the date of adverse action in accordance with 45 C.F.R. 205.10(a)(6), a child receiving CCAP may continue to receive CCAP during the informal dispute resolution or administrative hearing process pending the outcome of the informal dispute resolution or the administrative hearing.

††††† (b) If an informal dispute resolution or administrative hearing process upholds the denial, reduction, or termination of CCAP, the child's parent who continued to receive CCAP benefits during the informal dispute resolution or administrative hearing process shall repay the CCAP back to the effective date of the denial, reduction, or termination.

††††† (3) Upon receipt of a request for the informal dispute resolution, the cabinet or its designee shall:

††††† (a) Review the request; and

††††† (b) Render a written decision on the issue raised within ten (10) days, unless:

††††† 1. The commissioner or designee grants an extension to the timeframe specified in this paragraph due to extenuating circumstances that prolong the review of the request; and

††††† 2. Notice of the extension is provided to the applicant or parent who made the request for informal dispute resolution.

††††† (4) An applicant for CCAP or a parent of a child receiving CCAP may request an administrative hearing in accordance with Section 18 of this administrative regulation at any time during the informal dispute resolution process established in this section.

 

††††† Section 18.] Administrative Hearings. (1) A CCAP applicant or recipient may request an administrative hearing regarding eligibility determination, recalculation, or recertification in accordance with 921 KAR 2:055.

††††† (2) An administrative hearing pertaining to a matter not specified in subsection (1) of this section may be requested in accordance with:

††††† (a)1. Until April 1, 2016,[(1)] 922 KAR 1:320; or

††††† 2. Effective April 1, 2016, 922 KAR 2:260; or

††††† (b)[(2)] 922 KAR 2:020.

 

††††† Section 18.[19.] Records. Records of CCAP shall be maintained and disclosed in accordance with:

††††† (1) KRS 194A.060;

††††† (2) 45 C.F.R. 98.90(e); and

††††† (3) 45 C.F.R. 205.50(a)(1)(i).

 

††††† Section 19.[20.] Incorporation by Reference. (1) The following material is incorporated by reference:

††††† (a) "DCC-90, Application for Subsidized Child Care Assistance", 11/09;

††††† (b) "DCC-90, Subsidized Child Care Assistance Application Summary", 04/16;

††††† (c) "DCC-90.1, Intent to Apply for Child Care Assistance", 11/09;

††††† (d)[(c)] "DCC-91, Client Rights and Responsibilities Sheet", 04/13;

††††† (e)[(d)] "DCC-94, Child Care Service Agreement and Certificate", 11/09;

††††† (f) "DCC-94, Child Care Service Agreement and Certificate", 04/16;

††††† (g) "DCC-94.1, CHILD CARE Approval Notice", 04/16;

††††† (h)[(e)] "DCC-94B, Licensed or Certified Provider Agreement Form", 10/14;

††††† (i) "DCC-94B, Licensed or Certified Provider Agreement Form", 04/16;

††††† (j) "DCC-94C, Provider Notification Letter", 04/16;

††††† (k)[(f)] "DCC-94E, Child Care Daily Attendance Record", 7/13;

††††† (l)[(g)] "DCC-97, Provider Billing Form", 04/13;

††††† (m)[(h)] "DCC-105, Child Care Assistance Program Notice of Action", 11/09;

††††† (n) "DCC-105, Child Care Denial/Discontinuance Notice", 04/16; and

††††† (o)[(i)] "DCC-300, Kentucky Child Care Maximum Payment Rates Chart", 02/16[10/14; and

††††† (j) "DCC-400, Request for Exception from Placement with a STAR-Rated Child Care Provider", 10/14].

††††† (2) This material may be inspected, copied, or obtained, subject to applicable copyright law, at the Cabinet for Health and Family Services, Department for Community Based Services, 275 East Main Street, Frankfort, Kentucky 40621, Monday through Friday, 8 a.m. to 4:30 p.m.

 

ADRIA JOHNSON, Commissioner

VICKIE YATES BROWN GLISSON, Secretary

††††† APPROVED BY AGENCY: February 15, 2016

††††† FILED WITH LRC: February 26, 2016 at 4 p.m.

††††† PUBLIC HEARING AND PUBLIC COMMENT PERIOD: A public hearing on this administrative regulation shall, if requested, be held on April 21, 2016, at 9:00 a.m. in the Health Services Auditorium, Health Services Building, First Floor, 275 East Main Street, Frankfort, Kentucky. Individuals interested in attending this hearing shall notify this agency in writing by April 14, 2016, five (5) workdays prior to the hearing, of their intent to attend. If no notification of intent to attend the hearing is received by that date, the hearing may be canceled. The hearing is open to the public. Any person who attends will be given an opportunity to comment on the proposed administrative regulation. A transcript of the public hearing will not be made unless a written request for a transcript is made. If you do not wish to attend the public hearing, you may submit written comments on the proposed administrative regulation. You may submit written comments regarding this proposed administrative regulation until close of business May 2, 2016. Send written notification of intent to attend the public hearing or written comments on the proposed administrative regulation to:

††††† CONTACT PERSON: Tricia Orme, Office of Legal Services, 275 East Main Street 5 W-B, Frankfort, Kentucky 40601, phone 502-564-7905, fax 502-564-7573, email tricia.orme@ky.gov.

 

REGULATORY IMPACT ANALYSIS AND TIERING STATEMENT

 

Agency Contact: Elizabeth Caywood

††††† (1) Provide a brief summary of:

††††† (a) What this administrative regulation does: This administrative regulation enables the Cabinet to qualify for federal funds under the Child Care and Development Fund (CCDF) and establishes procedures for the implementation of the Child Care Assistance Program (CCAP) to the extent that funding is available.

††††† (b) The necessity of this administrative regulation: This administrative regulation is necessary to qualify for federal funds under CCDF and for the proper administration of CCAP.

††††† (c) How this administrative regulation conforms to the content of the authorizing statutes: This administrative regulation conforms to the authorized statutes by allowing the cabinet to qualify for federal funds and establishing procedures for the implementation of CCAP.

††††† (d) How this administrative regulation currently assists or will assist in the effective administration of the statutes: This administrative regulation will assist in the administration of the CCAP in a manner which is consistent with federal and state requirements, including available funding, and the interests of the clients to be served, child care providers, and taxpayers.

††††† (2) If this is an amendment to an existing administrative regulation, provide a brief summary of:

††††† (a) How the amendment will change this existing administrative regulation: The amendment to this administrative regulation enhances payments to child care providers serving a child in CCAP, ensures compliance with new federal requirements in accordance with Pub. L. 113-186, aligns policy and procedures with new forthcoming technology improving business processes for both the client and agency, and removes the mandate for child care providers to participate in the STARS for KIDS NOW Program due to forthcoming changes in Kentuckyís quality-rating system. Lastly, the amendment makes technical in accordance with KRS Chapter 13A.

††††† (b) The necessity of the amendment to this administrative regulation: The amendment is necessary to: ensure an adequate supply of child care providers willing to participate in CCAP and available to parents needing child care, avoid costly federal corrective action or federal financial penalty, and conform to forthcoming changes in Kentuckyís quality-rating system and new technology promising improved efficiencies for both the agency and clients.

††††† (c) How the amendment conforms to the content of the authorizing statutes: The amendment conforms to the content of the authorizing statutes by ensuring an adequate supply of participating providers, improved customer service, and timely conformity with overarching federal law.

††††† (d) How the amendment will assist in the effective administration of the statutes: The amendment will assist in the effective administration of the statutes and support the sustainability and worth of CCAP through its enhancements to CCAP reimbursements to child care providers, greater programmatic efficiencies, and alignment with federal law and state context.

††††† (3) List the type and number of individuals, businesses, organizations, or state and local governments affected by this administrative regulation: The parent of a child eligible for CCAP or a provider serving a child eligible for CCAP will be impacted by this administrative regulation. During State Fiscal Year 2015, CCAP served, on average, 22,792 children in 12,236 families per month. For State Fiscal Year 2015, the numbers for providers participating in CCAP are as follows: 2,056 licensed (Type I and Type II), 336 certified, and 207 registered.

††††† (4) Provide an analysis of how the entities identified in question (3) will be impacted by either the implementation of this administrative regulation, if new, or by the change, if it is an amendment, including:

††††† (a) List the actions that each of the regulated entities identified in question (3) will have to take to comply with this administrative regulation or amendment: The amendment to this administrative regulation will not require additional action on the part of regulated entities.

††††† (b) In complying with this administrative regulation or amendment, how much will it cost each of the entities identified in question (3): The amendment to this administrative regulation will create no new or additional costs to regulated entities.

††††† (c) As a result of compliance, what benefits will accrue to the entities identified in question (3): Regulated entities will benefit from measures to support an adequate supply of child care providers willing to participate in CCAP. Regulated entities will also benefit from the administrative regulationís conformity with the newly enacted federal law and new forthcoming technology promising improved efficiencies for CCAP recipients and the preservation of federal funding. Lastly, regulated entities will benefit from the clarity provided through the inclusion of a maximum income chart, as opposed to a reference to federal poverty level.

††††† (5) Provide an estimate of how much it will cost the administrative body to implement this administrative regulation:

††††† (a) Initially: The administrative regulation will be implemented within available federal and state appropriations for CCAP.

††††† (b) On a continuing basis: The administrative regulation will be implemented within available federal and state appropriations for CCAP. The administrative body will continually monitor its costs to make any adjustments necessary to maintain CCAP and related services within available funding.

††††† (6) What is the source of the funding to be used for the implementation and enforcement of this administrative regulation: The source of funding to be used for implementation and enforcement of this administrative regulation are the federal Child Care and Development Fund Block Grant, state match, state maintenance of effort funds, and state general funds.

††††† (7) Provide an assessment of whether an increase in fees or funding will be necessary to implement this administrative regulation, if new, or by the change if it is an amendment: The administrative regulation requires no increase in fees or funding.

††††† (8) State whether or not this administrative regulation established any fees or directly or indirectly increased any fees: The amendment to this administrative regulation does not establish any fees or directly or indirectly increase any fees.

††††† (9) TIERING: Is tiering applied? The Child Care Assistance Program is implemented in a like manner statewide. However, provider payment rates are tiered to recognize the higher operating costs of certain geographical, more populated areas. The provider payment rates were originally established based on the classification of cities. The rates are further supported by the analysis of the market rate survey results specified in KRS 199.899.

 

FEDERAL MANDATE ANALYSIS COMPARISON

 

††††† 1. Federal statute or regulation constituting the federal mandate.

45 C.F.R. 98, 42 U.S.C. 601-619, 9857-9858q

††††† 2. State compliance standards. KRS 194A.050(1), 199.892, 199.8994

††††† 3. Minimum or uniform standards contained in the federal mandate. 45 C.F.R. 98, 42 U.S.C. 601-619, 9857-9858q

††††† 4. Will this administrative regulation impose stricter requirements, or additional or different responsibilities or requirements, than those required by the federal mandate? This administrative regulation does not impose stricter requirements, or additional or different responsibilities or requirements, than those required by the federal mandate.

††††† 5. Justification for the imposition of the stricter standard, or additional or different responsibilities or requirements. This administrative regulation does not impose stricter requirements, or additional or different responsibilities or requirements, than those required by the federal mandate.

 

FISCAL NOTE ON STATE OR LOCAL GOVERNMENT

 

††††† 1. What units, parts, or divisions of state or local government (including cities, counties, fire departments, or school districts) will be impacted by this administrative regulation? The Cabinet for Health and Family Services, Department for Community Based Services will be impacted by this administrative regulation.

††††† 2. Identify each state or federal statute or federal regulation that requires or authorizes the action taken by the administrative regulation. KRS 194A.050, 199.892, 199.8994, 45 C.F.R. 98, 42 U.S.C. 601-619, 9857-9858q

††††† 3. Estimate the effect of this administrative regulation on the expenditures and revenues of a state or local government agency (including cities, counties, fire departments, or school districts) for the first full year the administrative regulation is to be in effect.

††††† (a) How much revenue will this administrative regulation generate for the state or local government (including cities, counties, fire departments, or school districts) for the first year? The Child Care Assistance Program (CCAP) has been operational for a number of years. It does not directly generate revenues for the state; however, it supports the health, safety, and welfare of children and the ability of low-income parents to work and obtain additional skills and training. This administrative regulation will not directly generate any new revenue for the first year. Research suggests that quality early care and education help avoid future public costs.

††††† (b) How much revenue will this administrative regulation generate for the state or local government (including cities, counties, fire departments, or school districts) for subsequent years? This administrative regulation will not directly generate any new revenue for subsequent years.

††††† (c) How much will it cost to administer this program for the first year? The administration of this program is projected to fall within available federal and state appropriations.

††††† (d) How much will it cost to administer this program for subsequent years? The administration of this program is projected to fall within available federal and state appropriations. The administrative body will continually monitor its costs to make any adjustments necessary to maintain CCAP and related services within available funding.

††††† Note: If specific dollar estimates cannot be determined, provide a brief narrative to explain the fiscal impact of the administrative regulation.

††††† Revenues (+/-):

††††† Expenditures (+/-):

††††† Other Explanation: