10-148-6 Me. Code R. § 3

Current through 2024-25, June 19, 2024

Section 148-6-3 - ELIGIBILITY

A.Child Eligibility To be eligible for a Child Care Subsidy, at the time of eligibility determination or re-determination a Child shall:

1. Reside with a Family whose Gross Income does not exceed eighty-five percent (85%) of the State's Median Income (SMI) when adjusted for Family size. SMI is based on the most recent SMI data that is published by the Bureau of the Census, for a Family of the same size;

2. Reside with a Family whose Family Assets do not exceed $1,000,000 (as certified by the Parent);

3. Be a U.S. citizen, or a "qualified alien" as defined in 8 U.S.C. § 1641 or defined in 8 U.S.C. § 1359. Only the citizenship and immigration status of the Child, who is the primary beneficiary of the Child Care Subsidy, is relevant for eligibility purposes. Parents who cannot provide verification of citizenship of Children receiving Child Care Services are not eligible for Child Care Subsidy;

4. Not Reside with a Parent who has a history of Misrepresentation to obtain any State or Federal benefit;

5. Reside with a Parent who is a Maine Resident;

6. The Child must be, at minimum, six (6) weeks of age; less than thirteen (13) years of age; turn thirteen (13) years of age during a current eligibility period; or is less than nineteen (19) years of age and meets the definition of Child with Special Needs pursuant to these rules; or is under court supervision; and

B.Parent Homelessness Eligibility

1. If a Parent of an Eligible Child is Homeless at the time of initial application or at time of redetermination, such Parent will be approved for Child Care Subsidy. A ninety (90) calendar day grace period will be provided to the Parent to allow time for submission of required eligibility documentation as required by federal law (45 C.F.R. § 98.41) . During such grace period, the Child shall be deemed to be eligible for a Child Care Subsidy.

2. If a Homeless Parent's eligibility documentation has not been received within the ninety (90) calendar day grace period, or if after review of the eligibility documentation it is found that the Parent is not eligible for Child Care Subsidy, the Parent will be terminated from Child Care Subsidy. Any Child Care Subsidy Payments and Parent Fees paid to the Child Care Provider will not be considered improper payments under these rules.

3. If after review of the eligibility documentation it is found that the Parent is eligible for Child Care Subsidy, the Parent will continue to receive Child Care Subsidy for the remainder of the Award Period.

C.Parent Financial/Income Eligibility

1.Income eligibility standards

Income eligibility standards will be based on the Eligibility Income of the Parent(s). Parent fee's will not exceed the ten percent (10%) of the Families' Gross Income.

2.Family Size Chart

The following chart provides examples of the most common forms of Family composition, the resulting Family size, and whose income is countable in determining Eligibility Income:

Family Composition	Family Size	Income Counted
Single Parent with Child(ren)	Parent and Child(ren)	Include all countable income
Unmarried Parents who have at least one (1) mutual Child	Both Parents and all the Child(ren) in the household	Include all countable income
Unmarried Parents with no mutual Child(ren) or multiple Family households	Unmarried Parents and their respective Child(ren) living in the household are counted as separate Families	Include countable income for the unmarried Parent and his/her Child(ren)
Married Parents	Both Parents and all Child(ren) living in the household	Include all countable income
Grandparents with legal guardianship of Child(ren) and Parents; and Parents of said Child(ren) in the household	Child is considered a Family of one (1)	Only Child's income is counted
Family member out of the household on a temporary basis and expected to return	Parent in the home, the absent individual and the Child(ren)	Include all countable income for all Family members
Foster Care Parent and Child	Child considered a Family of one (1)	Include only Child's income
Individuals providing Kinship Relative Care or Fictive Kinship Care to a Child with a Child Protective Services' (CPS) plan	Child considered a Family of one (1)	Include only Child's income
Adult acting "In-locoParentis" and Child	Child considered a Family of one (1)	Include only Child's income
Legal guardians and Child	Child considered a Family of one (1)	Include only Child's income
Parent and Child with Family member absent due to living in a long-term residential institution or prison	The absent individual is removed from the household. Count remaining household members	Include all countable income except that of the absent individual
Child whose residence changes between custodial Parents	Child and custodial Parent's Family. All other Family rules in this section apply	Include all countable income

3.Earned Income

Eligibility Income must include earned income from all sources:

a. Types of Self-employment include but are not limited to:

i. Independent contractors, franchise holders, owners/operators, farmers, people who produce and sell a product, and service-type businesses;

ii. Seasonal Self-employment such as fishing, clamming, worm digging, logging, harvesting, etc.;

iii. Income from boarders (not included as Family members);

iv. Income from roomers (not included as Family members);

v. Income from ownership of rental property; and

vi. That portion of training allowances, training stipends, or Student loans which exceed expenses, and represents a gain or benefit to the Family.

4.Unearned Income

Eligibility Income must include unearned income from all sources:

a. Pension and retirement benefits such as government employee pensions, military retirement/pensions, railroad retirement, private pensions, annuities, IRA accounts, 401K plans, etc.;

b. Social Security benefits including pensions, survivor's benefits, and permanent disability insurance payments;

c. Disability insurance payments from any source;

d. Assistance program payments such as Supplemental Security Income (SSI), Temporary Assistance for Needy Families (TANF), Parents as Scholars (PAS), Refugee Cash Assistance, and other tested assistance. TANF payments which are diverted to a third party shall be counted as income. Assistance payments from programs which require the performance of work without compensation, other than the assistance payment, shall be considered unearned income;

e. Veteran's benefits, including money paid periodically by the Veterans Administration to disabled members of the Armed Forces or survivors of deceased veterans, aid and attendance portion of veteran's benefits, subsistence allowances paid to veterans for education, and on-the-job training, as well as so-called refunds of GI insurance premiums;

f. Military Family allotments or other regular support from an absent Family member or someone not living in the household;

g. Unemployment insurance and worker's compensation;

h. Strike benefits from union funds;

i. Regular cash income received from earned interest, dividends, royalties, estates, and trusts;

j. The value of any property (real or intangible) in which there is an unrestricted right to immediate use, possession, or enjoyment of the property (or the income from it) even if the right is not exercised;

k. Interest income received from all loans and notes such as personal loans, secured loans (includes real estate mortgages), installment contracts, and interest-only loans. Loans of this nature usually require periodic payments of constant amounts over the life of the loan. The amount of the loan principal (return of capital) is considered an asset and shall not be included in Gross Income. The recognized gain on sale amount of the loan repayment shall be included in Gross Income. This determination shall be made in accordance with IRS regulations;

l. Child support and alimony payments made directly to the Family, including the pass through and gap supplements received by TANF clients. Money deducted or diverted from court-ordered support or alimony to pay household expenses is also counted as income;

m. A child support lump payment is counted as part of income and averaged over the number of weeks that child support is in arrears;

n. Income from ownership of rental property, excluding IRS deductible business expenses;

o. Income from capital gains as defined and calculated in accordance with IRS regulations. Capital gains are the profit from the sale of real and personal property such as the sale residence, land, income producing property, investment property, capital equipment, stocks, and bonds. Generally, profits resulting from disposal of business inventory of real and personal property are included as income from Self-employment as opposed to being separately classified as capital gains;

p. Regular general assistance cash payments from municipalities that are not made directly to vendors such as a landlord;

q. Regular money contributions from persons determined not to be Family members;

r. The portion of all educational grants, scholarships, and other awards available to pay for living expenses. All fees assessed by the educational institution are not counted as income. If a Student is not enrolled in a recognized institution of post-secondary education, a vocational Educational Program or a program that provides for completion of a secondary school diploma or equivalent, the full amount of educational assistance is counted as income. Income from Student loans shall be counted only if there are no repayment terms as a condition of the loan. This standard does not apply to educational assistance which is totally excluded under Federal statute;

s. Regular income received from lottery and sweepstakes winnings. Lump sum lottery and sweepstakes winnings are counted within the eligibility period they are received;

t. Net income from gambling;

u. Money that is legally due the Family which is diverted to a third party to pay household expenses, such as: diversion of all or part of a TANF grant to a landlord; and that portion of an unemployment insurance benefit check intercepted by the State Division of Support Enforcement and Recovery (DSER) commonly referred to as garnished wages. General Assistance vendor payments are excluded;

v. Income that is legally due to a Family member but is received and used for that Family member by a non-Family member;

w. Income from sponsors of aliens lawfully admitted for permanent residence in the U.S. A sponsor is a person or organization signing an affidavit or document on behalf of the alien as a condition of entry; and

x. All other income from government programs not specifically excluded by law.

5.Income Excluded from Eligibility Income

The following income is excluded from Eligibility Income:

a. Energy assistance program payments or allowances made under any federal energy assistance law. Note: Department of Housing and Urban Development (HUD) and Farmer's Home Administration (FmHA) utility payments and reimbursements are considered federal energy assistance;

b. Job Training Partnership Act (JTPA) payments and JTPA on-the-job training income received by participants (regardless of age) in the Summer Youth Employment and Training Program and comparable summer youth employment and training programs under AmeriCorps. All other payments from JTPA's On-the-job Training Program (OJT) count as income unless they are received by dependents less than nineteen (19) years old;

c. Payments under the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970;

d. Women, Infants and Children Program (WIC) vouchers;

e. Special payments to Native Americans excluded by law, e.g., payments under the Maine Indian Land Claims Settlement Act;

f. Federal Earned Income Tax Credit (EITC) is excluded whether received as advanced payment in weekly wages or received in one (1) sum after filing annual income tax return;

g. Educational assistance authorized under Title IV of the Higher Education Act, including:

i. Basic Educational Opportunity Grants (GEOG or PELL Grants);

ii. Presidential Access Scholarships (Super PELL Grants);

iii. Federal Supplemental Educational Opportunity Grants (SEOG);

iv. State Student Incentives Grants (SSIG; Maine State Incentive Grant);

v. Federal Direct Student Loan Program (FDSLP), formerly GSL and FFELP;

vi. Federal Direct Supplemental Loan Program (provides loans to Students);

vii. Federal Direct PLUS Program (provides loans to Parents);

viii. Federal Direct Stafford Loan Program;

ix. Federal Direct Unsubsidized Stafford Loan Program;

x. Federal Consolidated Loan Program;

xi. Federal Perkins Loan Program (direct loans to Students in institutions of higher education) (Perkins Loans, formerly NDSL);

xii. Federal Work Study Funds (Note: Not all Federal work study funds come under Title IV of the Higher Education Act);

xiii. TRIO Grants (go to organization or institutions for Students from disadvantaged backgrounds);

xiv. Upward Bound (some stipends go to Students);

xv. Student Support Services;

xvi. Robert E. McNair Post-Baccalaureate Achievement;

xvii. Robert C. Byrd Honors Scholarship Program;

xviii. College Assistance Migrant Program (CAMP) for Students whose families are engaged in migrant and seasonal farm work;

xix. High School Equivalency Program (HEP); and

xx. National Early Intervention Scholarship and Partnership Program.

h. Bureau of Indian Affairs (BIA) Student assistance, education or training assistance, and employment assistance programs. Each Tribe has a BIA agency that may be contacted for more information about education and training assistance. BIA Student assistance is provided by the Tribes, is not denoted by any particular name, and is not usually listed on institutions' financial aid statements;

i. Value of supplemental food assistance received under the Child Nutrition Act or the National School Lunch Act;

j. Value of USDA Food Supplement and/or Donated Commodities;

k. Earned income of a student nineteen (19) years of age or younger who is attending an elementary school or secondary school and resides with the applicant. The exclusion of this income shall not be altered by semester breaks, summer vacations, etc., provided the Student resumes enrollment after the break;

l. When a parenting teen is the applicant, the income of the teen's Parents, step-parents, other Relatives or non-Relatives who provide a home for the parenting teen(s) shall be excluded. The teen Parent must be working or attending an Educational or Job Training Program;

m. Foster Care payments from the Department or Federally Recognized Tribe;

n. Nonrecurring lump sum payments such as income tax refunds; and the portion of retroactive, lump-sum Social Security, SSI, railroad retirement or insurance settlements intended to cover a period prior to the current eligibility period;

o. State or federal one-time assistance for weatherization or emergency repair or replacement of an unsafe or inoperative heating or cooling device;

p. All loans, including Student educational loans, bank loans, loans from private individuals, and other types of loans where there exists a written agreement with repayment terms as a condition of the loan;

q. The value of non-cash benefits or gains from an employer, such as: shelter including military base housing, food, and clothing provided by an employer. This exclusion shall not include money that is legally due the Family which is diverted to pay for household expenses;

r. The value of non-cash benefits such as: public subsidized housing, general assistance voucher payments, medical and dental services, donated commodities, and food;

s. Certain vendor payments made on behalf of the applicant, including:

i. Money payments by a non-Family member which are not legally due the household and are paid directly to a third party for a household's expense, such as a Relative paying the rent or an employer paying the rent in addition to wages;

ii. Vendored assistance from State or local programs which provide no cash assistance. This includes General Assistance vendor payments made to a third party; and

iii. Monies withheld or returned from an assistance payment, earnings or other source to repay a prior Overpayment. Count the gross amount as income when the Overpayment is the result of a violation as determined by TANF, SSI, or other means-tested program.

t. Child support payments received by TANF recipients that are turned over to the Department;

u. Reimbursements and allowances which do not exceed the actual costs for job-related or training-related expenses, medical expenses, or dependent care expenses. This includes allowances from ASPIRE;

v. Third-party payments received and used for the care of a third-party beneficiary who is not a Family member;

w. Withdrawals from bank deposits and credit union deposits;

x. Lump sum cash inheritances or gifts;

y. The portion of loan or note repayments which is determined to be the loan principal (return of capital) in accordance with IRS regulations;

z. Losses from a farming enterprise shall be deducted from any other countable household income. This special consideration applies only to farms with annual gross sales of $1,000 or more;

aa. Certain cash donations, based on need, received from one (1) or more private, nonprofit charitable organizations; and

bb. Housing allotment for military families who have one (1) or both Parents deployed to a foreign country.

6.Verification, Documentation and Treatment of Eligibility Income

a. The Parent shall have the primary responsibility to provide verification of Eligibility Income.

b. Eligibility Income verification must be requested from all CCSP applicants.

c. Eligibility Income cannot be determined prior to income verification, and Child Care Subsidy services shall not be provided prior to verification.

d. Eligibility income verification must be documented in the Parent's case file.

e. If Eligibility income verification has not been provided within ten (10) calendar days of the application date, the application will be denied.

f. Acceptable verification of earned income includes one (1) or more of the following:

i. Four (4) weeks of current (within sixty (60) calendar days of application) and complete pay stubs;

ii. W-2 Form (if representative of current and future earnings);

iii. State and/or Federal Income Tax Return;

iv. Self-employment bookkeeping records, including but not limited to, profit and loss statements);

v. Sales and expenditure records;

vi. Employment information sheet provided by CCSP;

vii. Statement of employment and expected gross earnings, signed and dated by the employer on company letterhead;

viii. Employer's wage record;

ix. Employment Security Office records;

x. Verbal verification from Caseworker for Care and Custody/Department/Tribal referrals; or

xi. A signed release of information from the applicant which authorizes the Department to pursue verification or further clarification; and

xii. Documentary evidence is the primary source of verification of unearned income. Whenever attempts to verify income have failed for reasons other than Parent's non-cooperation, an amount to be used shall be determined based on the best available information. If verification (other than documentary evidence) is used, the reason why shall be explained in the Parent's record. Acceptable verification of unearned income includes, but is not limited to, the following:

1) Benefit check (viewed and photocopied by the Department);

2) All types of Award Letters;

3) Signed income tax records (interest income, dividends, royalties, estates, trusts, deferred compensation plans, capital gains, etc.)

4) Support and alimony payments evidenced by court order, divorce or separation papers, or check copies;

5) Social Security Query Card Response;

6) Social Security District Office verification;

7) Bank statement;

8) Worker's Compensation verification;

9) Insurance company verification;

10) Verbal verification from Caseworker for Care and Custody Department/Tribal referrals;

11) A signed release of information from the applicant which authorizes the Department to pursue verification or further clarification; or

12) A Parent is found to be eligible for the Child Care Subsidy Program if his/her monthly Eligibility Income is at or below eight-five percent (85%) of the current SMI; and

13) Income is figured by averaging weekly or bi-weekly pay and multiplying by 4.3 to get a monthly average.

D.Program Eligibility

The Office of Child and Family Services (OCFS) is responsible for approving Child Care Subsidy eligibility through review of the completed program application.

1. The Parent must be determined financially eligible for Child Care Subsidy no more than sixty (60) calendar days prior to the date of the OCFS' receipt of the completed program application or the program application will be denied.

2. Parents enrolled in a Job Training, Educational Program, or apprenticeship must verify enrollment upon initial application and re-determination and are required to attend classes either in-person or online.

3. If a Parent is income eligible and provides documentation from the SSA or MaineCare's Medical Review Team (MRT) indicating he/she has a disability and supplies a doctor's note which renders him/her unable to care for the Child(ren) and unable to work and the other Parent is working, attending an Educational, Job Training Program, or apprenticeship the Family may be eligible for Child Care Subsidy.

4. If a Child is home-schooled, the Parent is not eligible to receive Child Care Subsidy during regular school hours, as defined within their school district.

5. To the extent funding is available, the Department may waive Employment, Job Training, Educational Program, or apprenticeship requirements and authorize Child Care Subsidy for the following:

a. A Child in Care and Custody; and a Child placed under the legal guardianship of an individual who has reached Retirement Age as defined by Social Security.

E.Adverse Action on Parent's Eligibility

1. When any Adverse Action is called for on an initial eligibility determination and re-determination and is based on wage and/or employment information, the Department shall provide the Parent with written notice of the Adverse Action, at minimum, twelve (12) calendar days prior to the Department taking Adverse Action. The notice shall advise the Parent that the Department has received information regarding his/her financial eligibility. The Parent has twelve (12) calendar days from the date that the written notice was mailed, to contest the Department's decision. The notice shall state that unless the Department is notified otherwise by the Parent in writing within twelve (12) calendar days from the date that the notice was mailed, the Department will assume that the data provided by the match or obtained through independent verification is correct and the change to the Parent's financial eligibility determination may be made.

2. When any Adverse Action is called for on an initial eligibility determination and re-determination and is based on federal record matches (SSA or IRS), the Parent shall be sent a written notice, at minimum, thirty (30) calendar days prior to the Department taking Adverse Action. The Parent has thirty (30) calendar days from the date that the notice was mailed to contest, in writing, the Department's decision. The notice shall state that unless the Department is notified otherwise by the Parent in writing within thirty (30) calendar days from the date that the notice was mailed, the Department will assume that the data provided by the match or obtained through independent verification is correct and the change to the Parent's financial eligibility determination may be made.

F.Parent(s) Ineligible or Disqualified for Child Care Subsidy

A Parent will be determined to be ineligible for Child Care Subsidy if:

1. A Child Care Provider reports to the Department that a Child had twenty-five (25) or more Unacceptable Absences within the previous twelve (12) months;

2. The Parent owes the Department restitution related to Child Care Subsidy or owes Parent Fees to a Child Care Provider with whom the Parent had an agreement (unless a reasonable payment plan has been set up and the Parent is making regular payments on the arrears);

3. The Parent had his/her Child Care Subsidy or other State benefits terminated for Misrepresentation of their Family income or Family size;

a. The Department shall impose a disqualification penalty of up to twelve (12) months after issuance of an Administrative Hearing decision which determines that a Misrepresentation occurred or the Parent waives an Administrative Hearing;

4. Parents convicted of theft as a Class B or Class C crime by a court of competent jurisdiction, regarding the funds administered by the Department through the Child Care Subsidy, shall be permanently disqualified from participation in Child Care Subsidy.

10-148 C.M.R. ch. 6, § 3