WSR 17-19-120 PROPOSED RULES DEPARTMENT OF EARLY LEARNING [Filed September 20, 2017, 11:58 a.m.] Original Notice. Preproposal statement of inquiry was filed as WSR 17-16-119. Title of Rule and Other Identifying Information: WAC 170-290-0005 Eligibility, 170-290-0012 Verifying consumers' information, 170-290-0015 Eligibility—Family size, 170-290-0050 Additional requirements for self-employed WCCC consumers, 170-290-0065 Calculation of income, and 170-290-0190 WCCC authorized additional payments—Determining units of care. Hearing Location(s): On October 25, 2017, at 10:30 a.m., at 1110 Jefferson Street S.E., Room 113, Olympia, WA. Request to participate by telephone by contacting the rules coordinator at rules@del.wa.gov or 360-725-4670 on or before October 20, 1027 [2017]. Date of Intended Adoption: October 26, 2017. Submit Written Comments to: Rules Coordinator, P.O. Box 40970, Olympia, WA 98504-0970, email rules@del.wa.gov, fax 360-725-4925, by October 26, 2017. Assistance for Persons with Disabilities: Contact rules coordinator, phone 360-725-4670, fax 360-725-4925, email rules@del.wa.gov, by October 20, 2017. Purpose of the Proposal and Its Anticipated Effects, Including Any Changes in Existing Rules: Proposals impact working connections and seasonal child care subsidy program applicants and consumers. Specifically, the proposals will: (1) Require applicants to disclose household composition and name and address of the other parent when known unless the applicant has good cause not to cooperate; (2) clarify how the department of social and health [services] (DSHS) determines family size when determining authorization amounts; (3) standardize authorization amounts for all participating families who need full- and part-time care and are using licensed child care providers or license-exempt/relative (family, friend, or neighbor) providers; (4) disallow child care from occurring in the child's home when the parent/guardian is self-employed and operating a home-based business; (5) clarify when work schedule information and third-party verification may be required for income verification; (6) clarify the deadline by which an applicant must respond to a request for income verification; and (7) specify acceptable forms of documentation for verification of an applicant's participation in qualifying activities and timelines for submission. Reasons Supporting Proposal: The proposals strengthen internal controls for administering the working connections and seasonal child care subsidy programs and promote program integrity by: (1) Requiring questionable applicant statements of household composition to be supported by additional third-party verification; and (2) simplifying the DSHS process for requesting and documentation to verify applicants and consumers are participating in qualifying activities. The proposals remove barriers from program participation by: (1) Providing flexibility in income calculation and verification and allowing the use of documentation that most accurately reflects the consumer's economic situation; and (2) standardizing the authorization amounts for all families including those with parents participating in approved activities full- and part-time for traditional, nontraditional, and variable working schedules and for school-age and nonschool-age children across all provider types. Rule is not necessitated by federal law, federal or state court decision. Name of Proponent: Department of Early Learning (DEL), governmental. Name of Agency Personnel Responsible for Drafting: Cindy McCloskey, Subsidy Policy Analyst, DEL State Office, P.O. Box 40970, Olympia, WA 98504, 360-725-4430; Implementation and Enforcement: DEL/DSHS, statewide. A school district fiscal impact statement is not required under RCW 28A.305.135. A cost-benefit analysis is not required under RCW 34.05.328. DEL is not among the agencies listed as required to comply with RCW 34.05.328 (5)[(a)](i). Further, DEL does not voluntarily make that section applicable to the adoption of this rule. This rule proposal, or portions of the proposal, is exempt from requirements of the Regulatory Fairness Act because the proposal: Is exempt under RCW 19.85.025(3) as the rules relate only to internal governmental operations that are not subject to violation by a nongovernment party. September 20, 2017 Heather Moss Director
AMENDATORY SECTION (Amending WSR 16-19-107, filed 9/21/16, effective 10/22/16)
WAC 170-290-0005 Eligibility.
(1) At application and reapplication, to be eligible for WCCC, the applicant or reapplicant must:
(a) Have parental control of one or more eligible children;
(b) Live in the state of Washington;
(c) Be the child's:
(i) Parent, either biological or adopted;
(ii) Stepparent;
(iii) Legal guardian verified by a legal or court document;
(iv) Adult sibling or step-sibling;
(v) Nephew or niece;
(vi) Aunt;
(vii) Uncle;
(viii) Grandparent;
(ix) Any of the relatives in (c)(vi), (vii), or (viii) of this subsection with the prefix "great," such as great-aunt; or
(x) An approved in loco parentis custodian responsible for exercising day-to-day care and control of the child and who is not related to the child as described above;
(d) Participate in an approved activity under WAC 170-290-0040, 170-290-0045, 170-290-0050, or have been approved per WAC 170-290-0055;
(e) Comply with any special circumstances that might affect WCCC eligibility under WAC 170-290-0020;
(f) Have countable income at or below two hundred percent of the federal poverty guidelines (FPG)((.)) and have resources under one million dollars per WAC 170-290-0022;
(g) The consumer's eligibility shall end if the consumer's countable income is greater than eighty-five percent of the state median income or if resources exceed one million dollars;
(((g))) (h) Complete the WCCC application and DSHS verification process regardless of other program benefits or services received;
(i) Certify under penalty of perjury:
(i) The relationship of all adults to all children residing at the residence; and
(ii) The location of any absent parent, if applicable, unless good-cause requirements provided in WAC 388-14A-2060 are met; and
(((h))) (j) Meet eligibility requirements for WCCC described in Part II of this chapter.
(2) Children. To be eligible for WCCC, the child must:
(a) Belong to one of the following groups as defined in WAC 388-424-0001:
(i) A U.S. citizen;
(ii) A U.S. national;
(iii) A qualified alien; or
(iv) A nonqualified alien who meets the Washington state residency requirements as listed in WAC 388-468-0005;
(b) Live in Washington state, and be:
(i) Less than thirteen years of age; or
(ii) Less than nineteen years of age, and:
(A) Have a verified special need, according WAC 170-290-0220; or
(B) Be under court supervision.
AMENDATORY SECTION (Amending WSR 16-19-107, filed 9/21/16, effective 10/22/16)
WAC 170-290-0012 Verifying consumers' information.
(1) When a consumer ((must provide all required information to DSHS to determine eligibility when the consumer)) initially applies or reapplies for benefits, DSHS requires the consumer to provide verification of child care subsidy eligibility if the department is unable to verify through agency records or systems.
(2) ((All verification that is provided to)) After child care subsidy eligibility is determined, DSHS will obtain verification when:
(a) The consumer reports a change that may affect their benefit amount or eligibility;
(b) DSHS discovers the consumer's circumstances have changed; or
(c) The information DSHS has is questionable or outdated.
(3) DSHS notifies the consumer when verification is required.
(4) DSHS may accept verification to support the consumer's statement of circumstances. The verification the consumer gives DSHS must:
(a) Clearly relate to what the ((information DSHS is requesting)) consumer is trying to provide;
(b) Be from a reliable source; and
(c) Be accurate, complete, and consistent.
(((3) If DSHS has reasonable cause to believe that the information is inconsistent, conflicting or outdated, DSHS may)) (5) When the consumer gives DSHS questionable verification DSHS will:
(a) Ask the consumer to provide DSHS with more verification or provide a collateral contact (a "collateral contact" is a statement from someone outside of the consumer's residence that knows the consumer's situation); or
(b) Send an investigator from the DSHS office of fraud and accountability (OFA) to make an unannounced visit to the consumer's home to verify the consumer's circumstances. ((See)) Consumer's rights are found in WAC 170-290-0025(((9))).
(((4) The verification that the consumer gives to)) (6) DSHS ((includes, but is not limited to,)) will verify the following:
(((a) A current WorkFirst individual responsibility plan (IRP) for consumers receiving TANF;
(b) Employer name, address, and phone number;
(c) State business registration and license, if self-employed;
(d) Hourly wage or salary;
(e) Either the:
(i) Gross income for the last three months;
(ii) Self-attestation of anticipated wages for new employment and third-party verification of the wages within sixty days of the date DSHS approved the consumer's application or reapplication for WCCC benefits;
(iii) Federal income tax return for the preceding calendar year; or
(iv) DSHS employment verification form;
(f) Monthly unearned income the household receives, such as supplemental security income (SSI) benefits or child support. Child support payment amounts are verified as follows:
(i) For applicants or consumers who are not receiving DSHS division of child support services, the amount as shown on a current court or administrative order;
(ii) For applicants or consumers who are receiving DSHS division of child support services, the amount as verified by the DSHS division of child support;
(iii) For applicants or consumers who have an informal verbal or written child support agreement, the amount as verified by the written agreement signed by the noncustodial parent (NCP);
(iv) For applicants or consumers who cannot provide a written agreement signed by the NCP, the amount received for child support verified by a written statement from the consumer that documents why they cannot provide the statement from the NCP.
(g) If the other parent)) (a) The consumer's Washington residency;
(b) The consumer has parental control of an eligible child per WAC 170-290-0005;
(c) The consumer's household composition as follows:
(i) DSHS compares the consumer's statement of household composition to records for that consumer under TANF, food assistance, medical assistance, and child support services;
(ii) If the statement is questionable in light of the records, DSHS may take the action described in subsection (5) of this section. In addition, if the consumer is the only parent named on the benefits application, then the consumer must:
(A) Provide the name and address of the other parent, or indicate, under penalty of perjury, that the other parent's identity and address are unknown to the applicant or that providing this information will likely result in serious physical or emotional harm to the consumer or anyone residing with the consumer; and
(B) Indicate under penalty of perjury whether the parent is present or absent in the household;
(d) Whether the consumer is participating in an approved activity, including the consumer's income and schedule from the approved activity;
(e) Whether the consumer complies with applicable eligibility rules in WAC 170-290-0020;
(f) Other income and countable resources under WAC 170-290-0005;
(g) If any other parent, as determined in WAC 170-290-0015, is in the household, the same information ((for them)) in (a) through (g) of this subsection is verified for that parent; and
(h) ((Proof that the child belongs to one of the following groups as defined in WAC 388-424-0001:
(i) A U.S. citizen;
(ii) A U.S. national;
(iii) A qualified alien; or
(iv) A nonqualified alien who meets the Washington state residency requirements as listed in WAC 388-468-0005.
(5))) The citizenship or alien status of a child receiving child care subsidies.
(7) If DSHS requires verification from a consumer that costs money, DSHS must pay for the consumer's reasonable costs.
(((6))) (8) DSHS does not pay for a self-employed consumer's state business registration or license, which is a cost of doing business.
(((7))) (9) If a consumer does not provide all of the verification requested within thirty days from the application date, DSHS will determine ((if a consumer is eligible)) the consumer's eligibility based on the information already available to DSHS. DSHS shall deny the application or reapplication if the available information does not confirm eligibility.
AMENDATORY SECTION (Amending WSR 11-18-001, filed 8/24/11, effective 9/24/11)
WAC 170-290-0015 ((Eligibility—)) Determining family size.
(1) DSHS determines a consumer's family size as follows:
(a) For a single parent, including a minor parent living independently, DSHS counts the consumer and the consumer's children;
(b) For unmarried parents who have at least one mutual child, DSHS counts both parents and all of their children living in the household;
(c) Unmarried parents who have no mutual children are counted as separate WCCC families, the unmarried parents and their respective children living in the household;
(d) For married parents, DSHS counts both parents and all of their children living in the household;
(e) For parents who are undocumented aliens as defined in WAC 388-424-0001, DSHS counts the parents and children, documented and undocumented, and all other family rules in this section apply. Children needing care must meet citizenship requirements described in WAC 170-290-0005;
(f) For a legal guardian verified by a legal or court document, adult sibling or step-sibling, nephew, niece, aunt, uncle, grandparent, or an in loco parentis custodian who is not related to the child as described in WAC 170-290-0005, DSHS counts only the children and only the children's income is counted;
(g) For a parent who is out of the household because of employer requirements, such as training or military service, and expected to return to the household, DSHS counts the consumer, the absent parent, and the children;
(h) For a parent who is voluntarily out of the household for reasons other than requirements of the employer, such as unapproved schooling and visiting family members, and is expected to return to the household, DSHS counts the consumer, the absent parent, and the children. WAC 170-290-0020 and all other family rules in this section apply;
(i) For a parent who is out of the country and waiting for legal reentry in to the United States, DSHS counts only the consumer and children residing in the United States and all other family rules in this section apply;
(j) An incarcerated parent is not part of the household count for determining income and eligibility. DSHS counts the remaining household members using all other family rules in this section; and
(k) For a parent incarcerated at a Washington state correctional facility whose child lives with them at the facility, DSHS counts the parent and child as their own household.
(2) In addition to family members described in subsection (1)(a) through (k) of this section, siblings of the child needing care, unless they are parents themselves, who meet the following criteria are counted by DSHS as part of the family for WCCC eligibility:
(a) Eighteen year old siblings who are enrolled in high school or a general equivalency diploma (GED) program until turning nineteen or completing high school/GED, whichever comes first; and
(b) Siblings up to twenty-one years of age who are participating in an approved program through a school district's special education department under RCW 28A.155.020.
AMENDATORY SECTION (Amending WSR 16-09-059, filed 4/15/16, effective 5/16/16)
WAC 170-290-0065 Calculation of income.
DSHS uses a consumer's countable income when determining income eligibility and copayment. A consumer's countable income is the sum of all income listed in WAC 170-290-0060 minus any child support paid out through a court order, division of child support administrative order, or tribal government order.
(1) To determine a consumer's income, DSHS either:
(a) Calculates an average monthly income by:
(i) Determining the number of months, weeks or pay periods it took the consumer's WCCC household to earn the income; and
(ii) Dividing the income by the same number of months, weeks or pay periods; or
(b) When the consumer begins new employment and has less than three months of wages, DSHS uses the best available estimate of the consumer's WCCC household's current income:
(i) As verified by the consumer's employer; or
(ii) As provided by the consumer through a verbal or written statement documenting the new employment at the time of application, reapplication or change reporting, and wage verification within ((the first)) sixty days of ((new or changed employment)) DSHS request.
(2) If a consumer receives a lump sum payment (such as money from the sale of property or back child support payment) in the month of application or during the consumer's WCCC eligibility:
(a) DSHS calculates a monthly amount by dividing the lump sum payment by twelve;
(b) DSHS adds the monthly amount to the consumer's expected average monthly income:
(i) For the month it was received; and
(ii) For the remaining months of the current eligibility period; and
(c) To remain eligible for WCCC the consumer must meet WCCC income guidelines after the lump sum payment is applied.
AMENDATORY SECTION (Amending WSR 16-19-107, filed 9/21/16, effective 10/22/16)
WAC 170-290-0050 Additional requirements for self-employed WCCC consumers.
(1) Self-employment generally. To be considered self-employed, a WCCC consumer must:
(a) Earn income directly from the consumer's trade or business, not from wages paid by an employer;
(b) Be responsible to pay the consumer's self-employment Social Security and federal withholding taxes;
(c) Have a work schedule, activities or services that are not controlled in an employee-employer relationship;
(d) Participate directly in the production of goods or services that generate the consumer's income((; and
(e) At application and reapplication, work outside of the home the amount of hours for which the consumer requests WCCC benefits. If a consumer's self-employment activities are split between the home and outside of the home, only self-employment and other approved activities outside of the home will be eligible for child care benefits)).
(2) Child care may not occur in the home of a consumer who operates a home-based business.
(3) Self-employed consumers receiving TANF. If a consumer receives TANF and is also self-employed, he or she may be eligible for WCCC benefits for up to sixteen hours in a twenty-four-hour period ((for self-employment activities outside of the consumer's home)).
(a) The consumer must have an approved self-employment plan in the consumer's IRP under WAC 388-310-1700;
(b) The amount of WCCC benefits a consumer receives for self-employment is equal to the number of hours in the consumer's approved plan; and
(c) Income from self-employment while the consumer is receiving TANF is determined by WAC 388-450-0085.
(((3))) (4) Self-employed consumers not receiving TANF. If a consumer does not receive TANF and requests WCCC benefits for the consumer's self-employment, the consumer may be eligible for WCCC benefits for up to sixteen hours in a twenty-four-hour period ((for self-employment activities outside of the consumer's home)).
(a) A consumer who does not receive TANF cash assistance and requests WCCC benefits for self-employment must provide DSHS with the consumer's:
(i) Washington state business license, or a tribal, county, or city business or occupation license, as applicable;
(ii) Uniform business identification (UBI) number for the state of Washington, or, for self-employment in bordering states, the registration or filing number;
(iii) Completed self-employment plan that is written, signed, dated and includes, but is not limited to, a description of the self-employment business, proposed days and hours of work activity including time needed for transportation and the location of work activity;
(iv) Projected profit and loss statement, ((projected profit and loss statement)) if starting a new business; and
(v) For established businesses, either federal self-employment tax reporting forms for the most current reporting year ((or DSHS self-employment income and expense declaration form)).
(b) At application and reapplication, the first six consecutive months of starting a new self-employment business, the number of hours a consumer is eligible to receive is based on the consumer's report of how many hours are needed, up to sixteen hours per day. A consumer is eligible to receive this provision only once during the consumer's lifetime and must use the benefit provided by this provision within the consumer's authorization period.
(c) At application and reapplication, DSHS determines the number of care hours the consumer is eligible to receive after receiving WCCC self-employment benefits for six consecutive months as provided in (b) of this subsection by:
(i) Dividing the consumer's gross monthly self-employment income by the federal or state minimum wage, whichever is lower, to determine the average monthly hours of care needed by the consumer; and
(ii) Adding the consumer's additional approved employment, education, training, or travel to the total approved self-employment hours.
(d) If both parents in a two-parent family are self-employed, at the same or a different business, each parent must ((report the parent's own self-employment earnings and)) provide a self-employment plan and self-employment income verification. If the requested verification is not provided, then WAC 170-290-0012 applies to determining eligibility.
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