A.R.S. tit. 46 ch. 7 — Arizona Revised Statutes Title 46 Chapter 7 — Child Care Services

46-801. Definitions (Caution: 1998 Prop. 105 applies) In this chapter, unless the context otherwise requires: 1. "Caretaker relative" means a relative who exercises responsibility for the day-to-day physical care, guidance and support of a child who physically resides with the relative and who is by affinity or consanguinity or by court decree a grandparent, great-grandparent, sibling of the whole or half blood, stepbrother, stepsister, aunt, uncle, great-aunt, great-uncle or first cousin. 2. "Cash assistance" has the same meaning prescribed in section 46-101. 3. "Child" means a person who is under thirteen years of age. 4. "Child care" means the compensated service that is provided to a child who is unaccompanied by a parent or guardian during a portion of a twenty-four hour day. 5. "Child care assistance" means any money payments for child care services that are paid by the department and that are paid for the benefit of an eligible family. 6. "Child care home provider" means a person who is at least eighteen years of age, who is not the parent, guardian, caretaker relative or noncertified relative provider of a child needing child care and who is certified by the department to care for four or fewer children for compensation with child care assistance monies. 7. "Child care providers" means child care facilities licensed pursuant to title 36, chapter 7.1, article 1, child care group homes certified pursuant to title 36, chapter 7.1, article 4, child care home providers, in-home providers, noncertified relative providers and regulated child care on military installations or for federally recognized Indian tribes. 8. "Eligible family" means citizens or legal residents of the United States or individuals who are otherwise lawfully present in the United States and who are parents, legal guardians or caretaker relatives with legal residence in this state and children in their care who meet the eligibility requirements for child care assistance. 9. "Federal poverty level" means the poverty guidelines that are issued by the United States department of health and human services pursuant to section 673(2) of the omnibus budget reconciliation act of 1981 and that are reported annually in the federal register. 10. "In-home provider" means a provider who is certified by the department to care for a child of an eligible family in the child's own home and is compensated with child care assistance monies. 11. "Noncertified relative provider" means a person who is at least eighteen years of age, who provides child care services to an eligible child, who is by affinity or consanguinity or by court decree the grandparent, great-grandparent, sibling not residing in the same household, aunt, great-aunt, uncle or great-uncle of the eligible child and who meets the department's requirements to be a noncertified relative provider. 12. "Parent" or "parents" means the natural or adoptive parents of a child. 46-802. Child care services The department shall establish and administer child care services. Child care services include: 1. Child care assistance to eligible families. 2. Certification of child care home and in-home providers who are not required to be licensed pursuant to title 36, chapter 7.1 for the purposes of caring for children eligible for child care assistance. 3. Establishment of rights and duties of providers and the department for the provision of child care assistance and services. 4. Consumer education to families and the public, including activities that help families make informed decisions about child care options. 5. Activities that improve the quality and availability of child care. 6. Consultation, technical assistance, training and resources to improve the provision and expand the access to child care services. 46-803. Eligibility for child care assistance (Caution: 1998 Prop. 105 applies) A. The department shall provide child care assistance to eligible families who are attempting to achieve independence from the cash assistance program and who need child care assistance in support of and as specified in their personal responsibility agreement pursuant to chapters 1 and 2 of this title. B. The department shall provide child care assistance to eligible families who are transitioning off cash assistance due to increased earnings or child support income in order to accept or maintain employment. Eligible families must request this assistance within six months after the cash assistance case closure. Child care assistance may be provided for up to twenty-four months after the case closure and shall cease after a time period specified in rule by the department once the family income exceeds one hundred sixty-five percent of the federal poverty level but remains below eighty-five percent of the state median income. If the family income exceeds eighty-five percent of the state median income, child care assistance shall cease on notification by the department. C. The department shall provide child care assistance to eligible families who are diverted from cash assistance pursuant to section 46-298 in order to obtain or maintain employment. Child care assistance may be provided for up to twenty-four months after the case closure and shall cease after a time period specified in rule by the department once the family income exceeds one hundred sixty-five percent of the federal poverty level but remains below eighty-five percent of the state median income. If the family income exceeds eighty-five percent of the state median income, child care assistance shall cease on notification by the department. D. The department may provide child care assistance to support eligible families with incomes of one hundred sixty-five percent or less of the federal poverty level at the time of application to accept or maintain employment. Child care assistance shall cease after a time period specified in rule by the department once the family income exceeds one hundred sixty-five percent of the federal poverty level but remains below eighty-five percent of the state median income. If the family income exceeds eighty-five percent of the state median income, child care assistance shall cease on notification by the department. Priority for this child care assistance shall be given to families with incomes of one hundred percent or less of the federal poverty level. E. The department may provide child care assistance to families referred by the department of child safety and to children in foster care pursuant to title 8, chapter 4 to support child protection. F. The department may provide child care assistance to special circumstance families whose incomes are one hundred sixty-five percent or less of the federal poverty level at the time of application and who are unable to provide child care for a portion of a twenty-four-hour day due to a crisis situation of domestic violence or homelessness, or a physical, mental, emotional or medical condition, participation in a drug treatment or drug rehabilitation program or court-ordered community restitution. Child care assistance shall cease after a time period specified in rule by the department once the family income exceeds one hundred sixty-five percent of the federal poverty level but remains below eighty-five percent of the state median income. If the family income exceeds eighty-five percent of the state median income, child care assistance shall cease on notification by the department. Priority for this child care assistance shall be given to families with incomes of one hundred percent or less of the federal poverty level. G. Notwithstanding any other provision of this section, the department may reduce maximum income eligibility levels for child care assistance in order to manage within appropriated and available monies. The department shall notify the joint legislative budget committee of any change in maximum income eligibility levels for child care assistance within fifteen days after implementing the change. H. In lieu of the employment activity required in subsection B, C or D of this section, the department may allow eligible families with teenaged custodial parents under twenty years of age to complete a high school diploma or its equivalent or engage in remedial education activities reasonably related to employment goals. I. The department may provide child care assistance for department-approved education and training activities if the eligible parent, legal guardian or caretaker relative is working at least a monthly average of twenty hours per week and the education and training are reasonably related to employment goals. The eligible parent, legal guardian or caretaker relative must demonstrate satisfactory progress in the education or training activity. J. The department may waive a portion of or the entire work requirement prescribed in subsection I of this section to continue to provide child care assistance to a person who is receiving full-time child care assistance and who is enrolled full time in an accredited educational institution, remedial education activity or employment training program that will lead to a vocational, technical or trade certification or an associate degree or bachelor's degree and the education or training program is reasonably related to employment goals. The person shall confirm the person's intent to obtain education or training that will lead to employment in an occupation that has starting wages that are sufficient to eliminate the need for public assistance for the person once employed. The department shall review the education or training program that is being pursued by the person receiving child care assistance to verify that the education or training program is related to employment goals. The person must demonstrate satisfactory progress to the department in the education or training activity. K. The department shall establish waiting lists for child care assistance and prioritize child care assistance for different eligibility categories in order to manage within appropriated and available monies. Priority of children on the waiting list shall start with those families at one hundred percent of the federal poverty level and continue with each successive ten percent increase in the federal poverty level until the maximum allowable federal poverty level of one hundred sixty-five percent. Priority shall be given regardless of time spent on the waiting list. L. The department shall establish criteria for denying, reducing or terminating child care assistance that include: 1. Whether there is a parent, legal guardian or caretaker relative available to care for the child. 2. Financial or programmatic eligibility changes or ineligibility. 3. Failure to cooperate with the requirements of the department to determine or redetermine eligibility. 4. Hours of child care need that fall within the child's compulsory academic school hours. 5. Reasonably accessible and available publicly funded early childhood education programs. 6. Whether an otherwise eligible family has been sanctioned and cash assistance has been terminated pursuant to chapter 2 of this title. 7. Other circumstances of a similar nature. 8. Whether sufficient monies exist for the assistance. M. Families receiving child care assistance under subsection D or F of this section are also subject to the following requirements for that child care assistance: 1. Each child is limited to not more than sixty cumulative months of child care assistance. The department may provide an extension if the family can prove that the family is making efforts to improve skills and move towards self-sufficiency. 2. Families are limited to not more than six children receiving child care assistance. 3. Copayments shall be imposed for all children receiving child care assistance. Copayments for each child may be higher for the first child in child care than for additional children in child care. N. The department shall review each case not more than once a year to evaluate eligibility for child care assistance. O. The department shall report on December 31 and June 30 of each year to the joint legislative budget committee the total number of families who applied for child care assistance and the total number of families who were denied assistance under this section because the parents, legal guardians or caretaker relatives who applied for assistance were not citizens or legal residents of the United States or were not otherwise lawfully present in the United States. P. This section shall be enforced without regard to race, religion, gender, ethnicity or national origin. Q. The department shall refer all child care subsidy recipients to child support enforcement and to local workforce services and provide information on the earned income tax credit. 46-804. Appeals A decision denying, reducing or terminating child care assistance is subject to appeal pursuant to title 41, chapter 6, article 6 and title 41, chapter 14. 46-805. Child care assistance; rates; definitions A. The department shall establish payment rates for child care assistance. Payment rates shall provide for equal access for eligible families to comparable child care services provided to families who are not eligible to receive child care assistance. B. Payment rates shall be identical in form for all child care assistance. C. The department may pay different levels of child care assistance according to the category of child care provider, age of children, geographic area, level of national accreditation or another state-approved quality indicator, varying child care costs for children with special needs or other circumstances to meet the child care needs of eligible families. D. Each federal fiscal year, the department shall pay at least thirty-three percent of quality set-aside monies for tiered reimbursement of child care providers that meet the quality standard. E. The department shall establish a sliding fee scale and formula for determining child care assistance based on: 1. Income and earnings of the family. 2. Family size. 3. Number of children receiving child care assistance. 4. Child support to other minor dependent children of the parent living outside the family unit. 5. Income and earnings of a family member who is at least eighteen years of age and who is residing in the home with a parent who is receiving child care assistance, if the family member claims any member of a family unit applying for assistance as a dependent on a federal or state income tax return. 6. Income and earnings of a nonfamily member who is at least eighteen years of age and who is residing in the home of and cohabiting with a parent who is receiving child care assistance if the cohabiting nonfamily member claims any member of a family unit applying for assistance as a dependent on a federal or state income tax return. 7. Other factors of a similar nature. F. The department shall annually review and adjust the sliding fee scale and formula for determining child care assistance pursuant to subsection D of this section and section 46-803. G. The department shall post on the department's website the payment rates and the most current sliding fee scale and formula for determining child care assistance established pursuant to this section. H. All child care providers shall remain in good standing with licensing and certification laws and adopted rules. I. For the purposes of this section: 1. "Quality set-aside monies" means the total amount of federal child care and development fund monies that must be used for activities that do one or more of the following: (a) Improve the quality of child care services. (b) Increase parental options for and access to high quality child care. (c) Relate to the quality of care for infants and toddlers. 2. "Quality standard" means accreditation from a national organization or a state-approved quality indicator that is recognized by the department. 3. "Tiered reimbursement" means a child care assistance system that is offered by the department and that provides higher payments for child care services that meet higher quality standards. 46-806. Choice of child care providers The department shall allow parental choice of child care providers for families, except that those families referred by the department of child safety or children in foster care pursuant to title 8, chapter 4 may not receive child care assistance to use uncertified relative providers. 46-807. Certification of family child care home and in-home providers; hearing A. The department shall establish health, safety and training standards for the certification of child care home providers and in-home providers. B. All child care personnel shall be fingerprinted according to section 41-1964. C. The department may deny the application or suspend or revoke the certification of a child care home or in-home provider for violation of any provisions of law or failure to maintain the standards of care. Written notice of the grounds of suspension or the proposed denial or revocation shall be given to the applicant or provider. The applicant or provider has a right to request a hearing on the suspension, denial or revocation of a certification, and a hearing shall be held pursuant to title 41, chapter 14, article 3 and according to rules of the department. 46-808. Confidentiality A. The department shall maintain records of complaints and investigations concerning child care home providers and in-home providers. B. Section 41-1959 does not apply to personally identifiable information concerning child care providers. 46-809. Rules The department shall adopt rules it deems reasonable or necessary to implement child care services and to further the objectives of this article. Rules adopted by the department shall include: 1. Criteria for making child care assistance eligibility determinations. 2. Criteria for certifying child care home and in-home providers. 3. Criteria for operating child care resource and referral services and for suspending and terminating referrals to participating child care providers pursuant to section 41-1967. 46-810. Department of economic security; child care; report The department of economic security shall provide the following data by October 1 of each year to the members of the joint legislative budget committee: 1. The number of families served and total number of children served by each of the child care programs administered by the department of economic security. 2. The total number of dollars spent on child care for each of the child care programs administered by the department of economic security. 3. The number of recipients eligible for transitional medical and child care benefits. 4. The number of recipients who accept transitional medical and child care benefits specifying how many recipients have received these services for less than twelve months and those who have received these services for more than twelve months. 5. The number of applicants waiting for services under the state child care subsidy and federal child care programs for working families. 6. Copayment levels for each of the child care programs administered by the department of economic security. 7. The amount of copayment money collected for each of the child care programs administered by the department of economic security. 8. The total number of payments made to relatives for child care and the number of children served. 9. Any changes in the payment rate schedules and maximum provider rates from the previous fiscal year and the reason for those changes. 10. The number of families providing child care as a work activity in order to meet the federal work participation rates established pursuant to Public Law 104-193. 46-811. Child care providers; background check requirements A. The department of economic security and the department of health services may conduct background checks pursuant to the requirements of the child care and development block grant act of 2014 (P.L. 113-186) that are not included in the fingerprint clearance card process established by section 41-1758.02 for: 1. Employees and volunteers of child care providers as defined in section 46-801. 2. All persons who are eighteen years of age or older and who work or reside in the home of a child care home provider as defined in section 46-801. 3. Child care personnel as defined in section 36-897.03. 4. Child care providers as defined in section 41-1967.01. B. The department of economic security may enter into agreements with other government agencies to conduct the background checks required in subsection A of this section.