Eligibility and Authorization for Child Care Subsidy

PURPOSE: This rule establishes the requirements for eligibility and authorization of Child Care Subsidy. PUBLISHER’S NOTE: The secretary of state has determined that the publication of the entire text of the material which is incorporated by reference as a portion of this rule would be unduly cumbersome or expensive. This material as incorporated by reference in this rule shall be maintained by the agency at its headquarters and shall be made available to the public for inspection and copying at no more than the actual cost of reproduction. This note applies only to the reference material. The entire text of the rule is printed here. (1) Eligibility. To be eligible to receive Child Care Subsidy, the applicant shall meet the criteria established in the Child Care Subsidy Eligibility Policy Manual (Manual), revised November 2022, which is hereby incorporated by reference and made a part of this rule as published by the Department of Elementary and Secondary Education (department), Office of Childhood, and available at the department, 205 Jefferson Street, PO Box 480, Jefferson City, MO 65102- 0480, and its website at https://dese.mo.gov/childhood/child-care-subsidy/child-caremanual and at https://dese. mo.gov/governmental-affairs/deseadministrative-rules/incorporated-reference-materials. This rule does not incorporate any subsequent amendments or additions. Eligibility criteria includes information regarding: (A) Residency of the applicant and the child; (B) Citizenship status of the child; (C) Eligibility unit composition; (D) Relationship between the applicant and the child; (E) Income; and (F) Need for child care. (2) Processing of Application. (A) An applicant shall request child care subsidy in person, by telephone, by mail, by fax, or by electronic means to the Missouri Department of Elementary and Secondary Education (department) or designee. The information required to apply shall include but is not limited to information related to the applicant’s residency, the child’s citizenship status, household eligibility unit’s composition, relationship to the child, household eligibility unit’s assets, and income. (B) Applicants shall provide complete and accurate information to the department or designee when determining eligibility or continuing eligibility for child care subsidy benefits. Applicants who fail to provide complete and accurate information or to comply with the provisions of these rules or the Manual shall be ineligible for Child Care Subsidy. (C) Information provided by applicants or participants shall not be disclosed to the public, except as allowed by section 208.120, RSMo. (D) Upon receipt of a completed application, the department or designee shall review the application and determine the applicant’s eligibility. (E) If the department or designee determines the applicant is eligible for Child Care Subsidy, the department or designee shall determine the authorization amount for the child, in accordance with the Manual. (F) If the department or designee determines the applicant AND SECONDARY EDUCATION is eligible for Child Care Subsidy, the department or designee shall send a written notice to the applicant notifying him/her of child care services authorized, amount of sliding scale fee, and changes that shall be reported to maintain eligibility in accordance with the Manual. (G) If the department or designee determines the applicant is not eligible for Child Care Subsidy, the department or designee shall send a written notice to the applicant. The notice shall— 1. Inform the applicant of the nature of the decision; 2. Include a brief summary of the factual and legal basis for the department’s decision; and 3. Notify the applicant of his/her right to appeal to the Assistant Commissioner of the Office of Childhood or designee. (3) Payment. (A) Parental Choice. 1. A participant may enroll his/her child with any child care provider contracted with the department, subject to acceptance by the child care provider. A parent may choose to enroll his/her child with a different provider at any time. 2. Child Care Subsidy payments shall be made directly to the child care provider. 3. The parent shall notify the department or designee of the initial child care provider, and any change in the child care provider within ten (10) calendar days of the change. The notice shall include the date of disenrollment from the provider, the name and identifying information of the child and, where applicable, identify a new child care provider contracted with the department. (B) Maximum Payment. Maximum payment by the department for child care services shall not exceed the maximum base rate plus any rate differentials or the actual charges by the child care provider, whichever is less. The maximum base rate is set on an annual basis based on appropriations from the General Assembly for the child care subsidy program and is based on the age of the child, facility type, and geographic area. (C) Sliding Scale Fee. Child care participants may be required to pay a fee to the child care provider based on their adjusted gross income and family size. This fee shall be based on a sliding scale fee, which shall be determined on an annual basis based on appropriations from the General Assembly. 1. The sliding scale fee amount is determined by the household size and adjusted gross income. 2. The maximum child care subsidy payment shall be the maximum base rate minus the applicable sliding scale fee amount, if any. 3. The maximum base rate is based on the age of the child for whom child care services are requested, amount of care, the facility type, and the applicable geographic area of the state. The maximum base rate is subject to appropriations. 4. The sliding scale fee may be waived for a child with special needs. 5. At the time of application or redetermination, child care participants who failed to pay the required sliding scale fee shall be ineligible for Child Care Subsidy until the required sliding scale fee is paid or until the child care participant enters into a written agreement with the child care provider to pay the required fee. (D) Copayment. Child care participant(s) may be required to pay a copayment to the child care provider when the child care provider’s rate for care is higher than the maximum rate paid by the department. The parent shall negotiate this fee directly with the child care provider. The department shall not be responsible for the payment of, collection, or enforcement of any copayment. (4) Maintaining Eligibility. (A) Reporting Changes. 1. A participant shall report changes to the department or designee within ten (10) calendar days from the date of occurrence in accordance with the Manual. 2. Failure to timely report the changes subject to reporting may result in a participant overpayment pursuant to 5 CSR 25200.100. 3. Upon receipt of a reported change, the department or designee shall assess the participant’s continued eligibility. 4. Participants shall remain eligible for child care subsidy for not less than after ninety (90) days a participant’s employment, job training, or educational program ends. (B) Annual Redetermination. To continue to receive child care subsidy, participants shall request a redetermination at least thirty (30) calendar days prior to the end of the eligibility period. (C) Transitional Child Care. An eligibility unit may be allowed a gradual phase out of child care assistance if the eligibility unit’s income has increased but remains less than the upper income limit for the highest level of transitional child care in accordance with the Manual. The department or designee shall determine the participant’s eligibility for transitional child care and shall notify the participant in writing. (5) Appeal Rights. Any participant/applicant whose child care subsidy eligibility has been denied or changed may appeal such decision to the Assistant Commissioner or designee. (A) The participant/applicant shall request an appeal to the Assistant Commissioner or designee in writing within ninety (90) calendar days of the date of notification of the denial or change of Child Care Subsidy eligibility. (B) If the participant/applicant timely makes an appeal to the Assistant Commissioner or designee, the Assistant Commissioner or designee may utilize the Administrative Hearings Unit of the Division of Legal Services of the Department of Social Services to hear all cases. (C) The burden shall be on the participant/applicant to prove: 1. The denial or change of Child Care Subsidy eligibility was inconsistent with all applicable laws and regulations. (D) The department may present testimony, documents, or other evidence to rebut evidence presented by the participant/ applicant. (E) Upon completion of the hearing, the Administrative Hearings Unit shall issue a written decision as approved by the Assistant Commissioner or designee, except in default cases or cases disposed of by stipulation, consent order, or agreed settlement. The decision shall include or be accompanied by findings of fact and conclusions of law. The findings of fact shall be stated separately from the conclusions of law and shall include a concise statement of the findings on which the agency based its order. The Administrative Hearings Unit shall deliver or mail its decision, findings of fact, and conclusions of law to each party, or his/her attorney of record. The decision of the Administrative Hearings Unit shall be the final decision of the department. (6) Destruction of Records. The department may destroy all applications and records compiled in connection with the determination and payment of Child Care Subsidy after five (5) years have elapsed after the case is closed or the application has been rejected and the decision is final. (7) Child Care Subsidy for Protective Service Children. (A) The following categories of children are eligible for alternative eligibility determinations at the time of application: 1. Children in the legal custody of the Department of Social Services, Children’s Division, pursuant to an order of the juvenile court; 2. Children who are the subject of a current adoption or guardianship subsidy agreement with the Children’s Division; or 3. Children with an active family-centered service or intensive in-home service case with the Children’s Division. (B) These categories of children, or their parent(s), shall not be required to demonstrate a financial need for Child Care Subsidy under this subsection and are not subject to the eligibility unit’s income maximums. The child’s Protective Service status shall be the valid need for child care. (C) Processing of the application and maintaining eligibility shall be in accordance with the Manual for this subset of children. The department or designee may utilize an alternative, expedited process, as stated in the Manual. (8) Wait Lists. (A) In the event that the number of participants exceeds program funding from the General Assembly, as determined by the department, the department may utilize a waiting list. (B) The department’s waiting list shall utilize a priority ranking system for participants, in the following order: 1. Children with special need as defined in 5 CSR 25200.050; 2. Children classified as homeless as defined in the McKinney-Vento Homeless Assistance Act; 3. Eligibility units with an adjusted gross income under one hundred (100) percent of the Federal Poverty Level; 4. Eligibility units with an adjusted gross income of one hundred (100) percent of the Federal Poverty Level or greater. AUTHORITY: sections 161.092, 207.020, and 210.027, RSMo 2016, and sections 208.044 and 208.046, RSMo Supp. 2022*. 42 U.S.C. section 9858, et. seq., Executive Order 03-03. This rule originally filed as 13 CSR 35-32.060. Original rule filed Jan. 3, 2017, effective Aug. 30, 2017. Moved to 5 CSR 25-200.060, effective Aug. 28, 2021. Amended: Filed Aug. 25, 2022, effective April 30, 2023. *Original authority: 161.092 RSMo 1963, amended 1973, 2002, 2003, 2013, 2014; 207.020, RSMo 1945, amended 1961, 1965, 1977, 1981, 1982, 1986, 1993, 2014; and 208.044 RSMo 1989, amended 2012, 2019, 2022; 208.046 RSMo 2010, amended 2022; and 210.027, RSMo 1999, amended 2014, 2018, 2022.