Sec. 17b-749-04. Non-financial eligibility requirements (a) Residency (1) To be eligible for assistance, the family members shall be residing in Connecticut. The department shall not apply a durational requirement when making a determination of residency or require the family to live in a permanent dwelling or to have a fixed mailing address. (2) Family members shall be considered residing in Connecticut under the following conditions: (A) if they intend to remain in the state permanently or for the foreseeable future; or (B) if they entered the state with a job commitment or for the purpose of seeking employment. (4) Temporary absence from the state does not constitute a change in residency if the family member intends to return to Connecticut within thirty days and the individual maintains his or her residence in Connecticut. The commissioner may extend the thirty-day limit for up to ninety days if the family member is absent due to a temporary military duty assignment. A child who is temporarily absent from the home while attending school out of the state shall be considered a resident if the parent maintains living quarters for the child and the child intends to return home following completion of the school activities. (5) Family members who apply for or receive cash assistance, Food Stamps, Medical Assistance or other public benefits from another state shall be not considered residents of Connecticut. (b) Social Security Numbers (1) Disclosure of the Social Security number of a family member shall be mandatory only for children whose CCAP subsidy is or will be claimed by the Department as an expense under the TANF program or other federal programs that require recipients to disclose a Social Security Number. This requirement shall not apply to children who are not citizens of the United States who are not eligible to obtain a Social Security number (SSN) from the Social Security Administration. Disclosure of the Social Security numbers of other family members shall be voluntary. If the SSN is not disclosed, the CCAP administrator may obtain and use the SSN of a family member for whom disclosure is voluntary to the extent the number is available from other programs or agencies with whom the Department shares such information. (2) Assistance shall not be delayed pending verification of an SSN unless there is a discrepancy between a number given and other available information that causes the CCAP administrator to question the identity of the individual. The parent shall have thirty days from the date assistance is granted to verify that an application has been submitted to the Social Security Administration for a child who does not have an SSN for whom such number is mandatory. (3) Parents shall disclose the SSN of any member who did not have a valid number by the first redetermination following the onset of initial eligibility. (4) Child care providers shall disclose their SSN or a Connecticut Tax ID as a condition of eligibility for the provider. (5) An individual who has more than one SSN shall disclose all of the numbers. (6) Disclosure may be from a number which has been committed to memory, a written - 1 - Regulations of Connecticut State Agencies

document, such as a wage stub, Social Security award or denial letter, income tax return, or Social Security card. (7) If disclosure is mandatory, the individual child shall be ineligible if the parent fails to disclose or apply for an SSN for the child. Ineligibility shall continue until such time that the parent applies for or discloses the SSN. (c) Securing Child Support (1) If a child for whom assistance is requested is deprived of financial support from the child’s natural or adoptive parent, the custodial parent or person acting in loco parentis shall agree to apply for services and cooperate with the Bureau of Child Support Enforcement (BCSE) in obtaining support from the non-custodial parent, unless support is actively being pursued through private legal means or an exemption from cooperation is granted pursuant to section 17b-179(a)-4 of the Regulations of Connecticut State Agencies. (2) The custodial parent shall not be required to apply for support services for children for whom assistance is not being requested or children who are emancipated pursuant to sections 46b-150b and 46b-150e of the Connecticut General Statutes. The department shall waive the fee charged to non-assistance recipients pursuant to 17b-179(i)-1 of the Regulations of Connecticut State Agencies. (3) Parents who apply for or receive cash or medical assistance from the department for a child for whom child care assistance is requested shall not be required to apply for support for the child as long as the parent complies with the requirements of the other program. The family, however, shall become ineligible for child care assistance until proof of cooperation is provided if a sanction is imposed for noncompliance with the support requirements of the other program. (4) The application for support shall be made pursuant to section 17b-179 (h) of the Connecticut General Statutes. Parents shall verify that an application was filed not later than the first redetermination conducted after the initial date of eligibility for the child. The CCAP administrator shall provide written information about the procedure for applying for support to the parent. (5) The parent shall cooperate with the department as provided in section 17b-179(a)-4 of the Regulations of Connecticut State Agencies. The parent shall supply accurate and complete information about the non-custodial parent(s). When paternity has not been established for a child, the parent shall supply accurate and complete information about the putative father and take part in any legal proceedings as requested by the department unless an exemption is granted under section 17b-179(a)-4. Parents shall not be required to take additional action if an exemption is granted or if the department decides not to pursue support for reasons other than non-cooperation. (6) The entire family shall be determined ineligible if the parent does not comply with the requirements of this section and shall remain ineligible until such time that the parent complies. (d) Citizenship (1) To be eligible for CCAP, the child for whom assistance is requested shall meet the citizenship requirements established under section 431 of Public Law 104-193, the Personal Responsibility and Work Opportunity Reconciliation Act, as amended. The citizenship status of the child’s parents or other family members shall not be taken into consideration when - 2 - Regulations of Connecticut State Agencies

determining eligibility for CCAP. (2) To be eligible for assistance, the child shall be a United States citizen, a national of the United States pursuant to 8 U.S.C. section 1101, or an eligible non-citizen who is a lawfully residing immigrant. (3) Citizens shall include the following individuals: (A) individuals born in the United States or a US territory; (B) a naturalized citizen; (C) individuals under the age of 19 whose parents are citizens; and (D) individuals who meet specific Immigration and Naturalization Service conditions for citizenship including a foreign born individual with at least one parent who is a citizen and the foreign born spouse of a U.S. citizen. (4) Eligible non-citizens shall include, but not be limited to the following individuals as determined by the Immigration and Naturalization Service: (A) a non-citizen lawfully admitted for permanent residence under the Immigration and Nationality Act; (B) a non-citizen granted asylum under section 208 of the Immigration and Nationality Act; (C) a refugee admitted to the United States under section 207 of the Immigration and Nationality Act; (D) a non-citizen paroled into the United States under section 212 (d)(5) of the Immigration and Nationality Act for a period of at least one year; (E) a non-citizen whose deportation is being withheld under section 243 (h) of the Immigration and Nationality Act as in effect prior to April 1, 1997, or whose removal is being withheld under section 241 (b)(3) of the Act; (F) a non-citizen who is a Cuban or Haitian entrant as defined in section 501 (e) of the Refugee Education Assistance Act of 1980; or (G) a non-citizen whose child has been battered or subjected to extreme cruelty in the United States and otherwise satisfies the requirements of 8 U.S.C. 1641 (c). (5) Parents shall be required to disclose the citizenship status of the child, provide requested verification of the child’s immigration status and to report any changes in the child’s status within 10 days of the date of the change as a condition of eligibility. Where federal law prohibits copying naturalization papers, the CCAP administrator shall make arrangements to schedule a meeting with the parent to review the naturalization documents. The meeting shall be conducted in the local regional office of the department or other mutually agreed upon location. (6) If assistance is denied because a child does not meet the citizenship requirements, the CCAP administrator shall provide written notice to the parent explaining the reason for the denial and how to contact the Immigration and Naturalization Service to seek correction if the parent believes the information regarding the child’s citizenship status to be erroneous. If the parent requests an administrative hearing to appeal the determination to deny assistance, the CCAP administrator shall contact the Immigration and Naturalization Service for assistance if the parent challenges the determination of the child’s citizenship status. The CCAP administrator shall not be required to contact the Immigration and Naturalization Service if the parent does not contest the child’s status, but disputes whether the status makes - 3 - Regulations of Connecticut State Agencies

the child ineligible. (e) Need for Care (1) The parent shall have at least one eligible child residing in the home who needs child care assistance. Families with no eligible children shall be ineligible for CCAP. The approved hours of care shall be determined in accordance with the requirements of subsection (b) of section 17b-749-13 of the Regulations of Connecticut State Agencies. (2) To be eligible for assistance, child care shall be needed to allow parents to participate in the following approved activities: (A) employment for which the individual receives wages as opposed to goods or services for compensation; (B) a self-employment activity as defined in subsection (f) of this section; (C) for individuals receiving cash assistance, an employment services activity approved by the Department of Social Services, the Department of Labor or the designee of either agency in accordance with the State Plan requirements for the TFA cash assistance program; or (D) for teenage parents under the age of twenty whom do not receive cash assistance, attending high school as defined in subsection (6) of section 17b-749-01 of Regulations of Connecticut State Agencies. (3) Parents who were participating in an employment services activity at the time their TFA cash assistance benefits were discontinued shall be eligible for child care services to support completion of the activity for up to twelve months after TFA assistance is discontinued, provided that the parent is employed and all other eligibility requirements are satisfied. Eligibility based on the employment services activity shall end if the parent stops participating in the activity or if the activity ends. (4) Parents shall maintain continuous involvement in an approved work or employment services activity. Assistance shall be available only during the hours the parent or family member is participating in an activity listed in subdivision (2) of this subsection. (5) A child shall not be eligible for assistance if the applicant’s spouse or the child’s other parent is living in the home and is available and capable of providing care. The spouse or other parent shall be considered unavailable if the individual is participating in an activity defined in subdivision (2) of this subsection during hours that exclude the possibility of providing care. The spouse or other parent shall be considered incapable of providing care if the individual has a significant physical or mental condition, disability or impairment that would prevent him or her from caring for the child for a period which is expected to last for at least one calendar month. (6) The parent shall demonstrate that his or her spouse or the other parent is not available to provide care by certifying that the spouse or other parent does not reside in the household or by verifying participation in an activity listed in subdivision (2) of this subsection. (7) Parents working at home shall be considered unavailable to provide care only if the nature of the employment or self-employment activity prevents the parent from providing adequate care or supervision, or if the parent routinely operates equipment or machinery that would be hazardous if the child was in the same room or area with the parent. (8) The applicant shall be required to verify that the spouse or the other parent is incapable of providing care by submitting verification from a treating physician or state - 4 - Regulations of Connecticut State Agencies

certified mental health professional. The verification shall provide details of the nature and degree of the person’s disability or impairment, the reason the condition prevents the individual from providing care and the expected duration of the disability or impairment. The CCAP administrator may refer, but shall not require the individual to apply for disability benefits with the Social Security Administration if the condition is expected to last for more than twelve months. The evidence shall clearly establish that the spouse or other parent is not capable of providing safe and competent care. The CCAP administrator may request additional verification if the information submitted is not conclusive. In determining that an individual is not capable of providing safe and competent care, the department shall consider the age of the child, special needs, the degree of supervision required, medical information and all other available evidence. (f) Specific Requirements for Self-Employed Family Members (1) Child care assistance shall be approved to support a self-employment activity only if the activity is carried on to create a livelihood and in good faith to make a profit as evidenced by business and financial records and tax returns. The parent shall be required to provide documentation of continuous activities that are not passive or casual, or more appropriately associated with a hobby or volunteer work. Family members who own multiple or multi-family properties shall not be considered self-employed unless the individual actively manages the properties and can demonstrate work hours that justify the need for care. (2) Parents working at home as child care providers shall be considered available to provide care for their own children during their work hours, except under the following conditions: (A) if the parent is a licensed family day care home provider; and (B) if caring of his or her own children would cause the parent to exceed the licensed capacity established by the Department of Public Health. (3) The self-employment business activity shall be producing some taxable income at the time assistance is requested as reported as net profit on Schedule C of IRS form 1040. After six months, the taxable earnings for each family member involved in the activity shall equal or exceed the state minimum wage times the number of hours the family member purports to be working on the activity on a continual basis. Child care needs related to the activity shall be disapproved if income from the activity does not meet the income standards. Any subsequent requests for assistance made by the family related to self-employment shall be approved only if the gross taxable income produced equals or exceeds the state minimum wage times the number of hours each family member spends working on the activity. (4) The parent shall be responsible for submitting tax returns, estimated tax filings and business records documenting the income, business deductions and hours of participation where appropriate. Upon request, families with reported income that does not appear sufficient to meet basic daily living expenses shall provide verification of how the expenses are being met, including checking account, savings or loan records or an alternate means of financial support. The gross income from the self-employment business activity shall be used to determine eligibility and the amount of assistance if the information submitted by the parent is not sufficient to adequately determine the net profit. (g) Availability of Other Child Care Resources - 5 - Regulations of Connecticut State Agencies

(1) Payments shall not be made for the hours the child attends school, home schooling or other academic programs, or for the hours the child attends an after-school program or other state, federal or privately funded program for which the parent does not incur a fee. (2) If the family receives a direct subsidy or funds for child care expenses from a source other than CCAP, including support payments from a non-custodial parent earmarked specifically for child care, this funding shall be applied first as payment toward the approved cost of care as determined in subsection 17b-749-13 of the Regulations of Connecticut State Agencies. Scholarships, Pell grants and other awards provided directly to students shall be exempt and shall not be applied toward the approved cost of care. (Adopted effective July 10, 2001) - 6 - Regulations of Connecticut State Agencies

Sec. 17b-749-05. Financial eligibility requirements (a) Gross Income Eligibility (1) Gross countable family income for applicants and recipients shall be less than fifty percent of the state median income level for the appropriate family size as established by the Department of Health and Human Services. The commissioner shall have discretion to increase the income limit to up to seventy-five percent of the state median income level for all CCAP recipients or for both applicants and recipients. The commissioner may also, upon the request of the commissioner of Children and Families, waive the gross income limit for families who need child care assistance for a child who was adopted from the Department of Children and Families after October 1, 1999 and whose countable income does not exceed the maximum level established for participation pursuant to 42 CFR section 98.20 of the federal Child Care and Development Fund Regulations. Adoptive families for whom the income limit is waived shall be responsible for paying the maximum fee required pursuant to subsection (f) of section 17b-749-13 of the Regulations of Connecticut State Agencies. (2) A family whose income equals or exceeds the established income limit shall be ineligible for CCAP, unless the income exceeds the limit for not more than one calendar month due to an extra pay period or other temporary increase. (3) Income shall be counted in the month it is received by the family member, except to the extent the income is averaged in accordance with requirements of subsection (d) of this section. (4) The department shall adjust the state median income standards annually. For new applicants, the adjusted standards shall take effect beginning on or after July 1 of each year. For families receiving child care assistance on June 30, the adjusted standards shall take effect not later than the first redetermination completed after July 1 of each year. (b) Countable Income (1) In determining the gross income, the following types of income shall be counted except as specified in subdivision (2) of this section: (A) unearned income of all adult and child family members; and (B) gross earnings of all parents and adult family members. (2) The following types of income shall be excluded from the gross income determination: (A) TFA cash assistance benefits; (B) child support payments; (C) income paid by the Census Bureau to low-income temporary census workers; (D) the value of Food Stamp benefits; (E) the earnings of a family member who is under the age of eighteen who is not the parent of a child for whom assistance is requested; (F) earned income credit payment, including advanced payments; (G) cash contributions from non-profit charitable agencies or organizations; (H) interest and dividends totaling less than six hundred dollars per calendar year; (I) lump sum payments from unearned income sources totaling less than six hundred dollars per calendar year; (J) income tax refunds; (K) special need payments issued by the department on behalf of a cash assistance - 1 - Regulations of Connecticut State Agencies

recipient that are paid to a vendor; (L) income from the sponsor of a non-citizen; (M) grants, loans and scholarships paid to students; (N) cash gifts received on an irregular basis, the aggregate of which does not exceed twelve hundred dollars per calendar year; (O) the value of goods and services given as in-kind income rather than cash payments; (P) reimbursements for expenditures that do not represent a benefit or gain to the recipient; (Q) disaster assistance paid under the Disaster Relief Act of 1974, as amended, including the Individual and Family Grant (IFG) program, and comparable disaster assistance provided by states, local governments and private organizations, and any interest earned on funds from this source; (R) payments made by the Department of Labor to meet the cost of pursuing employment; (S) state or federal government rental subsidies; (T) security deposits returned by a landlord to the family; (U) payments made under means-tested energy assistance programs and utility subsidies; and (V) payments received under Title II of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970. (c) Income Deductions (1) Self-employed individuals shall be entitled to standard deductions for business expenses permitted under the Internal Revenue Code. Deductions shall be allowed only after submission of appropriate documentation using applicable Internal Revenue Service forms and schedules. (2) Payments made for child support shall be deducted from the gross income of the individual who makes the support payment. A representative average shall be used if the amount of the support payments fluctuates. (d) Income Calculations (1) Gross income shall be calculated based on the best estimate of the income the family is expected to receive. Income received monthly or over a more frequent period shall be annualized based on the amount received in the four week period immediately prior to the date of the income calculation. If the income fluctuates in an unpredictable manner, the income shall be averaged over a longer more representative period. If income is received regularly according to a schedule, the income shall be annualized based on such schedule. (2) School or other employees who are under contract shall have income annualized over the contract period. Income received less frequently than monthly shall be averaged over the period which it is intended to cover. (3) If the income is expected to change or when a family member is beginning new employment or changing work schedules, gross income shall be calculated based on the best estimate of the income the family is expected to receive over the next six months. The CCAP administrator shall use all available documentation to make the determination. (4) Self-employed family members shall have income calculated based on the prior years income tax return or current business records, whichever is most representative of the - 2 - Regulations of Connecticut State Agencies

current projected earnings. Standard business deductions shall be allowed in accordance with the requirements of subdivision (1) of subsection (c) of this section. (Adopted effective July 10, 2001) - 3 - Regulations of Connecticut State Agencies

Sec. 17b-749-13. Payment calculations (a) Calculating the Approved Cost of Care (1) The CCAP administrator shall calculate the approved monthly cost of care for each eligible child based on the activity schedule, the need for care, the applicable payment rate and eligibility for increased payments due to an ongoing special needs supplement. The approved cost of care shall represent the maximum ongoing CCAP payment, excluding adjustments for supplements, accreditation and professional development incentives or underpayment corrections. The approved cost shall not exceed the amount charged by the provider, except to the extent that weekly charges are converted to an average monthly amount as specified in subdivision (2) of this subsection. (2) In calculating the approved cost, the weekly payment rate and the provider’s actual weekly charges shall be converted to average monthly amounts by multiplying by a factor of four and three tenths weeks per month. The results may be rounded to the nearest whole dollar amount. (3) The approved monthly cost of care shall be the lesser of the following amounts: (A) the maximum payment rate based on the authorized hours of care, the type of child care setting, the age of the child, the location where care is given or the location of the family’s residence in cases were payment is approved for an out-of-state provider pursuant to subdivision (a)(2) of section 17b-749-12 of the Regulations of Connecticut State Agencies, plus (B) fifteen percent of the amount determined in subparagraph (A) for a child with special needs who is eligible for an increase in the standard payment rate pursuant to the requirements of subdivision (b)(3) of section 17b-749-16 of the Regulations of Connecticut State Agencies; or (C) the provider’s actual monthly charges. (4) The actual charge shall be the amount charged to the parent for services, unless the child attends a state-funded day care center or a school readiness program that charges families according to a sliding income scale pursuant to subdivision (b)(7) of section 17b- 749-12 of the Regulations of Connecticut State Agencies. For children attending such programs, the actual charge shall be considered to be the lesser of the following amounts: (A) provider’s full charge for the program; or (B) the maximum CCAP payment rate based on the authorized hours of care, the type of child care setting, the age of the child and the location where care is given; plus (C) fifteen percent of the amount determined in subparagraph (B) for a child with special needs who is eligible for an increase in the standard payment rate pursuant to the requirements of subdivision (b)(3) of section 17b-749-16 of the Regulations of Connecticut State Agencies. (5) Actual charges shall not exceed the amount charged by the provider for children attending the same program who do not receive assistance from CCAP. (b) Authorized Hours of Care (1) The CCAP administrator shall calculate the number of hours of care that are needed for each eligible child. The number of hours of care authorized shall be based on all of the following factors and shall be limited to not more than twelve hours in a twenty-four hour period: - 1 - Regulations of Connecticut State Agencies

(A) hours of the work or employment services activity; (B) the availability of a parent who is living with the child to provide care; (C) the hours the child is in school; (D) travel time to and from the approved activity; and (E) the hours of care specified on the child care agreement form. (2) Care shall not be authorized during the hours the child is in school, an academic or home schooling program, when a parent living in the home is available and capable of providing care or outside the activity schedule, including travel and lunch time. (3) The time needed to commute to and from the activity shall be taken into consideration when determining the actual number of hours of care that is needed. Travel time shall be limited to a maximum of one hour per day, unless the parent verifies that additional time is needed. (4) Households where both parents participate in approved activities at different times shall be required to arrange their home schedules, including sleep time, in a manner that maximizes each parent’s availability to provide care. If after making reasonable efforts to adjust their schedules child care is needed, care shall be authorized for the part of the day the parents are not able to supervise the child. (5) A maximum of four hours per day may be approved to allow a parent who works third shift or an equivalent schedule to sleep if the child does not attend school or if the other parent is not available to provide care. (6) Care shall not be authorized between the hours of eleven p.m. and seven a.m. if the child care provider is a person who resides in the same home as the child, unless the child is less than three years of age or has special needs. (7) Weekly schedules shall be converted to monthly figures by multiplying by a factor of four and three tenths weeks per month. The result may be rounded to the nearest half- hour. (8) If the hours of the activity fluctuate in an unpredictable manner, the CCAP administrator shall calculate the authorized hours by using a representative average of number of hours the individual is expected to participate in the activity over the period of the certificate. (9) For parents beginning a new employment services activity, employment or changing schedules, the number of hours authorized shall be based on documentation provided by the parent, the employer or entity responsible for coordinating the employment services activity. (10) The number of hours authorized shall not exceed the number of hours specified on the child care agreement form. (11) The number of hours of care authorized shall be used as the basis for determining the level of care needed and the applicable payment rate. The maximum number of hours approved for any one child shall not exceed sixty-five hours per week or two hundred eighty hours per calendar month, except to the extent the child is eligible for a supplemental payment for an alternate child care provider pursuant to section 17b-749-16 of the Regulations of Connecticut State Agencies. (c) Payment Rates (1) The commissioner shall establish payment rates pursuant to the requirements of this - 2 - Regulations of Connecticut State Agencies

subsection. The payment rates shall be updated periodically in accordance with state and federal requirements after consideration of local market conditions, or for unlicensed providers, changes in the minimum wage. The rates shall be established with the intention of providing participating parents with reasonable access to child care services available to the general public in a variety of settings. The payment rates shall be made available to the general public upon request. (2) The payment rates for all providers shall be based on four levels of care. Each level shall cover a range of hours. The number of hours authorized in subsection (b) of this section shall be converted to an average monthly amount and used to determine the maximum allowable payment rate for each certificate of payment. The lower and upper limits of the four levels of care shall be as follows: (A) for care in excess of full-time care, fifty one to sixty-five hours per week; (B) for full-time care, thirty-five to fifty hours per week; (C) for half-time care, sixteen to thirty-four hours per week; and (D) for quarter-time care, one hour to fifteen hours per week. (3) The commissioner shall have discretion to modify the payment rate structure to establish daily rates or other payment levels as necessary to approximate the manner in which child care providers charge for care in the open market, including supplemental payments for extended nontraditional hours. (4) Payment rates for school-based child care programs and providers licensed by the Department of Public Health shall depend on the age of the child in care. Children shall be classified into the following age groups: (A) infants/toddlers under the age of three; (B) preschool children ages three through five; and (C) school age children age six and older. (5) The child’s age group shall be established as of the date the certificate of payment is issued and shall remain the same until the family’s next redetermination or until the certificate is cancelled and a new certificate of payment is issued for the child. (6) Separate rates shall be established for the following types of child care providers: (A) licensed child day care centers; (B) licensed group day care homes; (C) licensed family day care homes; and (D) relatives, in-home care providers and other types of unlicensed providers. (7) Payment rates for licensed providers shall be established for geographic regions as defined by the commissioner based on a review of local market conditions. The regional payment rate for a particular child shall be determined by the location at which child care is provided. (8) With the exception of school-based child care programs, payment rates for unlicensed providers shall be based on the state minimum wage. The weekly payment rate for the full- time care of one child shall be equal to one third of the state minimum wage times forty hours. Payment rates for school-based child programs shall be determined in the same manner as rates for child day care centers, group and family day care homes licensed by the Department of Public Health. (9) Providers who have attained national accreditation or completed professional - 3 - Regulations of Connecticut State Agencies

development course work shall be entitled to bonus payments pursuant to subsection (d) of this section. (10) The commissioner may take other market factors into consideration when establishing payment rates, including discounts given by providers who care for more than one child from the same family. The commissioner may establish payment limits or differentials for children who are cared for in their own homes pursuant to 45 CFR 98.30 based on the additional cost of providing care in a licensed setting, including insurance, facility and business expenses, staffing, professional certifications and early childhood education programming. (11) The payment rate shall be increased by fifteen percent for a child with special needs who meets the requirements established in subsection (b) of section 17b-749-16 of the Regulations of Connecticut State Agencies. (12) Payment rates may be modified at any time. Changes in rates shall be made effective on the date specified by the commissioner. A minimum of thirty days advance notice shall be given to parents and providers with active certificates of payment if the payment rates are decreased. (d) Payment Incentives for Accreditation and Professional Development (1) Licensed child care providers whose programs meet the standards promulgated by state or national accrediting agencies recognized by the commissioner shall be entitled to a payment incentive as long as they maintain their accreditation. The payment incentive shall be equal to five percent of the amount calculated in subdivision (b)(1) of section 17b-749- 15 of the Regulations of Connecticut State Agencies prior to any deductions for fees, overpayments or any mandated withholding. Accrediting agencies recognized by the commissioner shall include but not be limited to: (A) the National Academy of Early Childhood Programs, a division of the National Association for the Education of Young Children; (B) the National School Age Child Care Alliance; (C) the National Association of Family Child Care; and (D) the Council on Accreditation of Services for Families and Children, Inc. (2) The commissioner may establish additional payment incentives for licensed and unlicensed providers eligible for CCAP based on completion of course work toward achieving a Child Development Associate credential, a degree program or other professional development courses or credentials or other quality standards. Incentives may be paid as a lump sum bonus, a flat amount added to the monthly payment or as an increase in the payment rate. (3) Providers shall apply for payment incentives in a manner specified by the CCAP administrator and shall provide satisfactory documentation. Incentives for eligible providers shall become effective in the month following the month in which the application and all required documentation are submitted to the CCAP administrator. Providers may be required to submit updated documentation confirming their current accreditation or professional development status. Providers shall notify the CCAP administrator if their accreditation is revoked or expires, or if the conditions that qualified the provider for the incentive pursuant to subdivision (2) of this subsection change. Incentives shall continue to be paid until the end of the month in which such status changes. - 4 - Regulations of Connecticut State Agencies

(e) Maximum Payments (1) Payments for a child who is cared for by a single provider shall not exceed the established payment rate for fifty-one to sixty-five hours of care per week, excluding incentive payments for accreditation and professional development authorized under subsection (d) of this section and supplemental payments authorized under subsection (b) of section 17b-749-16 of the Regulations of Connecticut State Agencies. (2) If a child receives care from two or more providers, the payment rate shall be calculated independently for each provider. The payment rate for each certificate of payment shall be based on the hours of care authorized for the provider, except that the total hours authorized for all providers shall not exceed sixty-five hours per week or two hundred eighty hours per month. To determine the level of care, the CCAP administrator shall first calculate the weekly number of authorized hours of care for the provider with whom the child spends the majority of time or the provider for whom an existing certificate is already in effect. The authorized hours for this provider shall be subtracted from the sixty-five to determine the maximum number of hours available for the other or new provider. If the hours are approximately equal, the CCAP administrator may consult with the parent to determine how the hours will be allocated. The CCAP administrator shall not be required to cancel a certificate that is already in effect. (f) Parent Fee and Financial Responsibilities (1) The parent shall be responsible for all costs not reimbursed by CCAP on behalf of the parent. In addition, families with earnings or self-employment income shall be responsible for paying a portion of the authorized cost of care based on a monthly sliding fee scale. (2) To determine the monthly fee, the family’s gross countable annual income shall be compared to the state median income standard (SMI) for the family size as promulgated annually by the Department of Health and Human Services. The fee shall be equal to the following percentage of the family’s gross countable income: (A) for families with income below twenty percent of the SMI, two percent; (B) for families with income of twenty percent to less than thirty percent of the SMI, four percent; (C) for families with income of thirty percent to less than forty percent of the SMI, six percent; (D) for families with income of forty percent to less than fifty percent of the SMI, eight percent; and (E) for families with income of fifty percent of SMI to less than seventy-five percent of SMI, ten percent. (3) The fee may be rounded to the nearest whole dollar amount and applied against the approved cost of care as determined in subsection (a) of this section. (4) The fee shall be allocated to the youngest child first or in a manner that will avoid the need to allocate a portion of the fee across multiple certificates. If the fee exceeds the approved cost for a child, the remaining amount shall be allocated to the next oldest child until the full parent share has been allocated. If payment is terminated, the CCAP administrator shall apply the unallocated fee to the remaining active children or to the new certificate issued for the same child after giving appropriate notice to the parent and provider. - 5 - Regulations of Connecticut State Agencies

(5) The family shall be ineligible if the monthly fee exceeds the approved cost for all of the eligible children. (6) The monthly fee shall be determined at the time of application and when a redetermination is conducted. The fee shall remain the same until the next redetermination, unless an ongoing decrease in income occurs that is expected to last for at least two or more months. The fee shall not be increased between redeterminations if the family’s income increases, except to correct an error in the prior calculation. Families shall be subject to the gross income limit and shall report increases in income exceeding fifty dollars per month even if the change does not immediately affect the fee. (7) Decreases in the monthly fee shall be implemented in the month following the month in which the change is reported if the change is verified timely. If the change is not verified timely, the decrease shall take effect in the month following the month in which the change is verified, unless good cause exist for not providing timely verification pursuant to subsection (e) of section 17b-749-06 of the Regulations of Connecticut State Agencies. (8) Parents shall be responsible for paying the fee to the provider. The family’s eligibility shall not be affected if the fee is not paid to the provider. (g) Compliance with Applicable Labor and Tax Laws for In-Home Care Parents shall be responsible for compliance with applicable laws governing in-home domestic services. The CCAP administrator may withhold the parent’s share of any mandated unemployment compensation, Social Security or Medicare taxes from payments issued to an in-home provider to the extent that benefits are paid to the in-home provider instead of the parent. (Adopted effective July 10, 2001) - 6 - Regulations of Connecticut State Agencies