(1) Financial eligibility for child care assistance is based on the household's monthly income as defined in ARM 37.80.102. Households whose income exceeds 150% of the FPG for a household of their size are not eligible for child care assistance.

(2) Assets owned by the members of the household or in which the members of a household have an interest are not considered in determining whether a household is eligible for child care assistance.

(3) Parents eligible for assistance are responsible for paying a monthly copayment in the amount specified in the sliding fee scale table incorporated in (14).

(a) In general, the household's copayment is a percentage of the household's gross monthly income, based on the household's gross monthly income as compared to the FPG for a household of that size. Generally, households with income which is a higher percentage of the FPG are required to pay a higher percentage of their gross monthly income as a copayment than households whose income is a smaller percentage of the FPG. All parents receiving TANF-funded cash assistance shall pay the $10 minimum copayment amount as specified in the sliding fee scale, regardless of household size or income.

(b) In the event that the actual cost of child care for the month is less than the copayment which the parent would be required to pay according to the sliding fee scale the parent will be required to pay the actual cost of care rather than the specified copayment.

(c) Parents are solely responsible for paying the copayment to the child care provider. Parents who fail to make the required payment or make arrangements satisfactory to the provider for payment will be ineligible for child care assistance until the amount due has been paid or arrangements satisfactory to the provider have been made.

(d) Children in child care placements due to protective services provided by the department are not subject to a copayment.

(4) In computing a household's size for purposes of determining eligibility and the parent's copayment, the following persons must be included as members of the household:

(a) the child or children for whom child care is being provided;

(b) all persons who live in the same household as the child or children and who are the child's:

(i) natural or adoptive parents, or stepparents;

(ii) brothers and sisters, or stepbrothers and stepsisters, or half brothers and half sisters who are age 17 and younger;

(c) a person who lives in the same household as the child or children and who is the child's legal guardian or is acting in loco parentis for the child; and

(d) parents residing outside of the child's home, provided the parents of the child are not separated or divorced.

(5) In computing a household's size for purposes of determining eligibility and the parent's copayment, the household has the option of choosing to include or exclude as a household member any other person residing with the child.

(a) After the household exercises its option to include or exclude a person when eligibility is initially being determined, the household cannot subsequently choose a different option, unless the optional members leave the household.

(6) In computing the household's income for purposes of determining eligibility and the parent's copayment, the income of all persons counted in computing household size must be counted. The income of persons not counted in computing household size will not be counted.

(7) In determining the household's need for child care assistance, the work hours, school schedules and ability to care for the child or children of each adult included in calculating household size will be considered. The work hours and ability to care for the child or children of adults excluded in calculating household size will not be considered.

(8) Persons providing child care services subsidized under this chapter will be paid at the lesser of the providers usual and customary rate or the rates specified in ARM 37.80.205. This total monthly payment due to the child care provider is computed by multiplying the applicable payment rate times the number of child care hours or days for the month for which payment is allowed under this chapter. The portion of the total monthly payment which the department is required to pay is computed by subtracting the parent's monthly copayment from the total monthly payment due.

(9) Eligible households may receive child care assistance for each child in the household who meet the age requirement for child care contained in ARM 37.80.102 and whose care meets all other requirements of this chapter for payment.

(10) No child care assistance payments can be issued until a certification plan has been issued by the child care resource and referral agency.

(11) The child care certification plan sets limits for child care benefits. Certification plans may change. The most recent certification plan is the effective plan. No further notice is provided when benefits expire at the end date of a certification plan.

(12) Benefits will only be paid for actual care provided during the certification period, except as provided in ARM 37.80.205 and 37.80.206.

(13) A household that receives any amount of child care assistance to which the household was not entitled shall repay all child care assistance to which the household was not entitled, regardless of whether the applicant, the recipient or the department caused the overpayment.