Original Notice.

Preproposal statement of inquiry was filed as WSR 99-05-070.

Title of Rule: WAC 388-165-108 What are the types of child care subsidies? WAC 388-165-179 When are DSHS child care subsidy rates in this chapter effective? WAC 388-165-180 What are the maximum child care subsidy rates DSHS pays for child care in a licensed or certified child care center? WAC 388-165-185 What are the maximum child care rates DSHS pays for child care in a licensed or certified family child care homes? WAC 388-165-190 When can DSHS pay in addition to the maximum DSHS child care subsidy rate? WAC 388-165-195 What is nonstandard hour child care? WAC 388-165-200 How does DSHS pay for nonstandard hour child care? WAC 388-165-205 Does DSHS pay a bonus for infants who receive child care subsidies? WAC 388-165-210 How does DSHS determine that a child qualifies for a special needs rate? WAC 388-165-215 What is the DSHS child care subsidy rate for children with special needs in a licensed or certified child care center? WAC 388-165-220 What is the DSHS child care subsidy rate for children with special needs in a licensed or certified family child care home? WAC 388-165-225 What is the DSHS in-home/relative child care rate for children with special needs? WAC 388-165-230 What is the maximum child care subsidy rate DSHS pays for in-home/relative child care? WAC 388-165-240 What are the parent/guardian payment responsibilities when they choose in-home/relative child care? WAC 388-165-245 What is the responsibility of DSHS regarding child care subsidies for in-home/relative child care? and WAC 388-165-250 When can DSHS pay toward the cost of in-home/relative child care provided outside the child's home?

Purpose: WACs were written to establish rules related to the different rates and bonuses DSHS pays for subsidized child care effective November 1, 1999. Rules also state the maximum rates paid for child care and when exceptions can be made. These rules were written in clear rule writing style to comply with Governor Locke's Executive Order 97-02 on regulatory improvement.

Statutory Authority for Adoption: RCW 74.12.340, 74.04.050, 74.04.055, and 74.08.090.

Statute Being Implemented: RCW 74.12.340, 74.04.050, 74.04.055, and 74.08.090.

Summary: Rules establish the DSHS maximum child care subsidy rates paid to licensed or certified family child care homes, and licensed or certified child care centers which will be phased in on November 1, 1999. Standard maximum rates and special needs subsidy rates are divided by region and the child's age category. Rules explain when and at what rate DSHS pays the nonstandard hour bonus and the infant bonus. In-home/relative child care rates and rules are established.

Name of Agency Personnel Responsible for Drafting, Implementation and Enforcement: Sally Reigel, P.O. Box 45700, Olympia, WA 98504-5700, (360) 902-8046.

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: Rules establish DSHS maximum child care subsidy rates paid to licensed or certified family child care homes, and licensed or certified child care centers and when exceptions can be made to the rate. Standard maximum rates and special needs subsidy rates are divided by region and the child's age category. Rules explain when and at what rate DSHS pays the nonstandard hour bonus and the infant bonus. Exempt in-home/relative child care rates and rules are established. These rules were written in clear rule writing style to comply with Governor Locke's Executive Order 97-02 on regulatory improvement.

Proposal does not change existing rules.

No small business economic impact statement has been prepared under chapter 19.85 RCW. Children's Administration has analyzed its proposed new rules and concludes that they do not impose any new costs on businesses that they regulate. Consequently, the preparation of a small business economic impact statement is not required.

RCW 34.05.328 applies to this rule adoption. The proposed rules do meet the definition of significant legislative rules as defined in RCW 34.05.328. The department has prepared a cost benefit analysis (CBA). To obtain a copy of the CBA contact Sally Reigel, P.O. Box 45700, Olympia, WA 98504-5700, (360) 902-8046.

Hearing Location: Lacey Government Center (behind Tokyo Bento Restaurant), 1009 College Street S.E., Room 104-B, Lacey, WA 98503, on October 5, 1999, at 10:00 a.m.

Assistance for Persons with Disabilities: Contact Paige Wall by September 24, 1999, phone (360) 664-6094, TTY (360) 664-6178, e-mail wallpg@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) 664-6185, by October 5, 1999.

Date of Intended Adoption: October 6, 1999.

August 25, 1999

Marie Myerchin-Redifer, Manager

Rules and Policies Assistance Unit

This chapter relates to the following programs:

(1) Seasonal child care;

(2) Teen parent child care;

(3) Child protective services child care;

(4) Child welfare services child care; and

(5) Employed foster parent child care.

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(1) DSHS child care subsidy rates in this chapter are effective on or after November 1, 1999 when a family:

(a) Has a change that requires their authorization to be updated;

(b) Is newly authorized to receive child care subsidies; or

(c) Is reauthorized to continue receiving child care subsidies.

(2) DSHS child care subsidy rates are authorized at the provider's usual rate or the DSHS maximum child care subsidy rate, whichever is less.

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DSHS pays directly to a licensed or certified child care center, whichever is less:

(1) The provider’s usual rate for that child; or

(2) The DSHS maximum child care subsidy rate for that child as listed in the following table.

(3) The maximum rate paid for a five year old child is:

(a) The preschool rate for a child who has not entered kindergarten; or

(b) The school-age rate for a child who has entered kindergarten.

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DSHS pays directly to a licensed or certified family child care provider, whichever is less:

(1) The provider’s usual rate for that child; or

(2) The DSHS maximum child care subsidy rate for that child as listed in the following table.

(3) The maximum rate paid for a five year old child is:

(a) The preschool rate for a child who has not entered kindergarten; or

(b) The school-age rate for a child who has entered kindergarten.

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DSHS pays additional subsidies to a licensed or certified family child care home or center when:

(1) Care is for nonstandard hours (see WAC 388-165-195 and 388-165-200);

(2) The infant bonus is authorized (see WAC 388-165-205);

(3) A child has a documented special need(s) (see WAC 388-165-210, 388-165-215, or 388-165-220); or

(4) Care is not available at the DSHS rate and the provider’s usual rate is authorized.

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DSHS authorizes nonstandard hour child care when fifteen or more hours of care are needed per month, that are:

(1) Before 6:00 a.m. or after 6:00 p.m. Monday through Friday; and/or

(2) Anytime on Saturday or Sunday.

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DSHS authorizes the nonstandard hour bonus to licensed or certified child care providers, DSHS pays:

(1) The DSHS maximum child care subsidy rate as listed in WAC 388-165-180 or 388-165-185 or the provider’s usual rate for that child, whichever is less; and

(2) The monthly nonstandard hour bonus as listed in the table below.

Monthly Nonstandard Hour Bonus
Region 1	$74.00
Region 2	$73.00
Region 3	$91.00
Region 4	$108.00
Region 5	$80.00
Region 6	$83.00

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DSHS child care subsidy programs pay a two hundred and fifty dollar infant bonus directly to the licensed or certified family child care home or center if:

(1) The child care has not already received a bonus for that infant;

(2) The infant was first enrolled in the child care after August 30, 1998;

(3) The infant is less than one year old; and

(4) The provider cares for the infant a total of five or more days before the child’s first birthday.

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To qualify for the DSHS child care programs special needs subsidy rate the child must:

(1) Be under nineteen years old;

(2) Have a verified physical, mental, emotional, or behavioral condition that requires a higher level of care; and

(3) Have their condition and need for higher level of care verified by a health, mental health, or education professional with at least a master’s degree.

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DSHS pays child care subsidies for a child with special needs to licensed or certified child care centers as described in WAC 388-165-180 and whichever of the following is greater:

(1) The provider’s documented additional cost associated with the care of that child with special needs; or

(2) The rate listed in the table below.

(3) The maximum rate paid for a five year old child is:

(a) The preschool rate for a child who has not entered kindergarten; or

(b) The school-age rate for a child who has entered kindergarten.

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DSHS pays child care subsidies for a child with special needs to licensed or certified family child care homes as described in WAC 388-165-195 and whichever of the following is greater:

(1) The provider’s documented additional cost associated with the care of that child with special needs; or

(2) The rate listed in the table below.

(3) The maximum rate paid for a five year old child is:

(a) The preschool rate for a child who has not entered kindergarten; or

(b) The school-age rate for a child who has entered kindergarten.

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DSHS subsidy programs pay in-home/relative child care providers for care of a child with special needs (as described in WAC 388-15-185) two dollars per hour plus, whichever is greater of the following:

(1) Sixty-two cents per hour; or

(2) The provider’s documented additional cost associated with the care for that child with special needs.

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(1) The DSHS child care subsidy programs pay toward the cost of child care directly to the parent, who is the employer. DSHS pays whichever of the following that is less:

(a) Two dollars and six cents per hours for the child who needs the greatest amount of care and one dollar and three cents per hour for the care of each additional child in the family; or

(b) The provider’s usual rate for that care.

(2) DSHS may pay above the maximum rate for children who have special needs as stated in WAC 388-165-225.

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The parent is the employer of the in-home/relative provider. The parent:

(1) Pays the provider the entire amount that DSHS gives them toward the cost of care;

(2) Pays the provider the amount that was authorized for a co-payment;

(3) Requires the in-home/relative provider to sign a receipt when they receive payment;

(4) Keeps the receipts for DSHS to review at the next eligibility determination; and

(5) Keeps accurate attendance records.

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(1) On all payments DSHS makes toward the cost of in-home/relative child care, DSHS pays the employer’s share of:

(a) Social Security taxes;

(b) Medicare taxes;

(c) Federal Unemployment Taxes (FUTA); and

(d) State unemployment taxes (SUTA) when applicable.

(2) On all payments DSHS makes toward the cost of in-home/relative child care DSHS withholds the following taxes:

(a) Social security taxes up to the wage base limit; and

(b) Medicare taxes.

(3) If an in-home/relative child care provider receives less than one thousand one hundred dollars per family in a calendar year, DSHS refunds all withheld taxes to the provider.

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DSHS will pay toward the cost of child care provided in the relative’s home by the following adult relative of the child:

(1) Siblings and stepsiblings living outside the child’s home;

(2) Grandparents;

(3) Aunts;

(4) Uncles;

(5) First cousins;

(6) Great grandparents;

(7) Great aunts;

(8) Great uncles; and

(9) Extended family members as determined by law or custom of the Indian child’s tribe.

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