Child Care Subsidy Act

CHILD CARE SUBSIDY REGULATION

[includes amendments up to B.C. Reg. 388/2004, September 1, 2004]

Definitions

1 In this regulation:

"Act" means the Child Care Subsidy Act;

"applicant" means a parent who applies under section 4 for a child care subsidy;

"BC basic family bonus" means an amount under section 10 (3) (a) of the Income Tax Act (British Columbia);

"BC earned income benefit" means an amount under section 10 (3) (b) of the Income Tax Act (British Columbia);

"basic child tax benefit" means the Canada child tax benefit exclusive of that portion attributed to the national child benefit supplement;

"business day" means a day other than Saturday, Sunday or another holiday listed in the Interpretation Act;

"Canada child tax benefit" means an amount deemed to be an overpayment on account of a person’s liability for the taxation year as determined under section 122.61 of the Income Tax Act (Canada) and includes the child disability benefit;

"child" means an unmarried person under 19 years of age;

"child disability benefit" means a supplement to the Canada child tax benefit received by families with a child who meets the criteria for the Disability Tax Credit provided under the Income Tax Act (Canada);

"child with special needs" means a child

(a) who has a physical, intellectual, emotional, communicative or behavioral impairment, and

(b) who, in the minister's opinion, requires additional support services because of that impairment;

"dependant", in relation to a parent, means anyone who resides with the parent and who

(a) is the spouse of the parent,

(b) is a dependent child of the parent,

(c) shares with the parent income or assets or any necessities of life obtained with the income or assets, or

(d) indicates a parental responsibility for the parent's child;

"dependent child" means a child who resides in the parent's place of residence and relies on the parent for the necessities of life, but does not include a child who is 18 years of age and is a person with disabilities;

"employment income" means income arising from employment, but does not include any amount deducted at source for

(a) income tax,

(b) employment insurance,

(c) medical insurance,

(d) Canada Pension Plan,

(e) superannuation,

(f) company pension plan, or

(g) union dues;

"employment-related program" has the same meaning as in section 1 of the Employment and Assistance Regulation;

"family" means a parent and the parent's dependants;

"family bonus" means an amount consisting of the sum of the BC basic family bonus and the national child benefit supplement;

"licence-not-required child care setting" means a family home in which child care may be provided without a licence or permit being required under the Community Care and Assisted Living Act;

"licensed child care setting" means any of the following types of facilities operated under a licence, or permit, issued under section 11 of the Community Care and Assisted Living Act:

(a) group day care, under 36 months;

(b) group day care, 30 months to school age;

(c) preschool, 30 months to school age;

(d) special needs day care;

(e) family child care;

(f) out of school care;

(g) emergency care;

"licensed preschool" means a preschool described in paragraph (c) of the definition of “licensed child care setting”;

"minister", in relation to a power, duty or function that the minister has delegated under section 12 of the Act to another person, includes that other person;

"month" means a calendar month;

"national child benefit supplement" means 1/12 of the amount of the portion "C" in the formula 1/12 [(A–B)+C] as set out in section 122.61 of the Income Tax Act (Canada);

"permitted operating expenses" means costs, charges and expenses incurred by a person in self-employment for the following:

(a) purchase of supplies and products;

(b) accounting and legal services;

(c) advertising;

(d) taxes, fees, licences and dues incurred in

(i) a small business under a self-employment program in which the person is participating, or

(ii) self-employment, if the person is self-employed but is not participating in a self-employment program;

(e) business insurance;

(f) charges imposed by a savings institution on an account and interest;

(g) maintenance and repairs to equipment;

(h) gross wages paid to

(i) employees of a small business under a self-employment program in which the person is participating, not including wages paid to

(A) the person participating in the self-employment program, or

(B) a member of the family of the person participating in the self-employment program;

(ii) if the person is self employed but is not a participating in a self-employment program, employees of that person, other than wages paid by that person to his or her family;

(i) motor vehicle expenses;

(j) employer contributions to an employee benefit program;

(k) rent and utilities;

(l) office expenses;

"person with disabilities" means a person who has been designated as a person with disabilities under the Employment and Assistance for Persons with Disabilities Act;

"self-employment income" means any income earned from self-employment but does not include any amount deducted for permitted operating expenses;

"self-employment program" means a program, established or funded under the Employment and Assistance Act or the Employment and Assistance for Persons with Disabilities Act, to assist a person to be self-employed as proprietor of, or partner in, a small business;

"spouse", in relation to a parent, means anyone who

(a) is married to the parent, or

(b) is living with the parent in a marriage-like relationship;

"Young Parent Program" means a child care program located at or near a secondary school which provides child care for children of parents completing their secondary education and which is recognized by the minister as a Young Parent Program.

[am. B.C. Regs. 234/98, s. 1; 427/99, s. 1; 346/2000; 57/2002, s. 1; 262/2002, s. 2; 200/2004, s. 1; 387/2004, s. 1.]

What types of child care may be subsidized?

2 The minister may pay a child care subsidy if the child care is provided

(a) in a licensed child care setting,

(b) in a licence-not-required child care setting, or

(c) in the child's own home, but only if the child care is provided by someone other than a person who

(i) is a relative of the child or a dependant of the parent, and

(ii) resides in the child's home.

Circumstances in which subsidy may be provided

3 (1) The minister may pay a child care subsidy only if

(a) the minister is satisfied that the child care is needed for one of the reasons set out in subsection (2), or

(b) the child care is arranged or recommended under the Child, Family and Community Service Act.

(2) For the purpose of subsection (1) (a), the child care must be needed for one of the following reasons:

(a) in a single parent family, because the parent

(i) is employed or self-employed,

(ii) attends an educational institution, or

(iii) is seeking employment or participating in an employment-related program;

(iv) has a medical condition that interferes with the parent’s ability to care for his or her child;

(b) in a two parent family, because

(i) each parent is employed or self-employed, attends an educational institution or participates in an employment-related program,

(ii) one parent is engaged in an activity listed in subparagraph (i) and the other is seeking employment, or

(iii) one parent is engaged in an activity listed in subparagraph (i) and the other parent has a medical condition that interferes with that parent’s ability to care for his or her child.

(iv) Repealed. [B.C. Reg. 57/2002, s. 2 (b).]

(3) Repealed. [B.C. Reg. 57/2002, s. 2 (b).]

(4) The restriction in subsection (1) (a) does not apply in respect of child care provided in a licensed preschool.

[am. B.C. Regs. 57/2002, s. 2; 262/2002, s. 3; 294/2002; 387/2004, s. 2.]

How to apply for a subsidy

4 (1) To be eligible for a child care subsidy, a parent must

(a) complete an application in the form required by the minister,

(b) supply the minister with the social insurance number of the parent and each adult dependant, and

(c) supply the minister with proof of the identity of each member of the family and proof of eligibility for a child care subsidy.

(2) Only one parent in the family may apply for a child care subsidy.

(3) A parent ceases to be eligible for a child care subsidy on the date that is 6 months after the date of application under subsection (1) or (4), as applicable, unless, before that date, the parent provides to the minister confirmation of the parent’s continuing eligibility and need for the child care subsidy.

(4) A parent ceases to be eligible for a child care subsidy on the date that is 12 months after the date of application under subsection (1) or this subsection, as applicable, unless, before that date, the parent completes an application referred to in subsection (1) and otherwise complies with that subsection.

[am. B.C. Reg. 218/2003, s. 1.]

Citizenship requirements

5 An applicant is eligible for a child care subsidy only if

(a) the applicant

(i) is a Canadian citizen,

(ii) is authorized under an enactment of Canada to take up permanent residence in Canada, or

(iii) is determined under the Immigration and Refugee Protection Act (Canada) or the Immigration Act (Canada) to be a Convention refugee, and

(b) each of the applicant’s dependants, other than a dependent child,

(i) is a Canadian citizen,

(ii) is authorized under an enactment of Canada to take up permanent residence in Canada,

(ii.1) is determined under the Immigration and Refugee Protection Act (Canada) or the Immigration Act (Canada) to be a Convention refugee,

(iii) is in Canada on a temporary residence permit issued under the Immigration and Refugee Protection Act (Canada) or a minister’s permit issued under the Immigration Act (Canada),

(iv) is in the process of having the dependant’s claim for refugee status determined under the Immigration and Refugee Protection Act (Canada) or the Immigration Act (Canada), or

(v) is subject to a deportation order under the Immigration and Refugee Protection Act (Canada) or the Immigration Act (Canada) but the order cannot be executed.

[am. B.C. Regs. 251/98; 219/2003.]

Residency requirement

6 An applicant is eligible for a child care subsidy only if the applicant is a resident of British Columbia.

Income test

7 An applicant is not eligible for a child care subsidy if

(a) the family's monthly net income calculated under section 9 exceeds the threshold income level calculated under section 10, and

(b) the difference between the amount referred to in section 8 (2) (a) and the amount referred to in subsection 8 (2) (b) is zero or a negative amount.

Amount of subsidy

8 (1) If a family's monthly net income calculated under section 9 does not exceed the threshold income level calculated under section 10, the amount of the child care subsidy is the amount set out in Schedule A or the parent fee, whichever is less, for the type of child care provided.

(2) If a family's monthly net income calculated under section 9 exceeds the threshold income level calculated under section 10, the amount of the child care subsidy is

(a) the amount set out in Schedule A or the parent fee, whichever is less, for the type of child care provided, less

(b) 60% of the excess amount of monthly net income.

(2.1) Repealed. [B.C. Reg. 388/2004.]

(3) If child care is required for less than 20 days per month, the child care subsidy will be prorated based on the daily rate set out in Schedule A or the daily parent fee, whichever is less.

(4) If the child care is

(a) arranged or recommended where a risk assessment and written risk reduction plan have been completed by staff delegated under the Child, Family and Community Service Act, or

(b) recommended under the Child, Family and Community Service Act for a parent participating in a Young Parent Program,

the minister may pay any increase in the amount of the child care subsidy that the minister considers necessary to ensure that the child care is provided.

(5) In this section, "parent fee" means the payment made by the parent for a child care space.

[am. B.C. Regs. 390/2000, s. 1; 57/2002, s. 3; 388/2004.]

How monthly net income is calculated

9 (1) The monthly net income of a family is calculated by adding the income that each person in the family receives per month, including, but not limited to, the following:

(a) employment income;

(b) self-employment income;

(c) maintenance paid to a spouse or child in the family;

(d) employment insurance benefits;

(e) workers' compensation benefits;

(f) training allowances;

(g) investment income, including interest;

(h) tips and gratuities;

(i) money earned by providing room and board, less essential operating costs;

(j) rental income of any kind, less essential operating costs;

(k) grants, loans, bursaries or scholarships, except

(i) the amount for tuition or books, and

(ii) with respect to the British Columbia Student Assistance Program, $50 of the amount received for each week covered by the award.

(2) When calculating net income under subsection (1), the following are considered not to be income:

(a) any income earned by a child attending school on a full time basis;

(b) the basic family care rate for foster homes;

(c) income assistance under the Employment and Assistance Act or a disability assistance benefit under the Employment and Assistance for Persons with Disabilities Act;

(d) a family bonus;

(e) the basic child tax benefit;

(f) a goods and services tax credit under the Income Tax Act (Canada);

(g) a sales tax credit under the Income Tax Act (British Columbia);

(h) the BC earned income benefit;

(i) maintenance paid for, and passed on to, a person with disabilities or a person aged 19 or older;

(j) a rent subsidy provided by the provincial government, or by a council, board, society or governmental agency that administers rent subsidies from the provincial government;

(k) an income tax refund, or part of an income tax refund, that arises by reason of a payment made by the government of British Columbia to the government of Canada on behalf of a person who incurred a tax liability due to income received under the Forest Worker Transition Program;

(l) money paid or payable to a person in settlement of a claim of abuse at an Indian residential school, except money paid or payable as income replacement in the settlement;

(m) post adoption assistance payments provided under section 28 (1) or 30 (1) of the Adoption Regulation, B.C. Reg. 291/96;

(n) a rebate of energy or fuel tax provided by the government of Canada, the government of British Columbia, or an agency of either government;

(o) payments granted by the government of British Columbia as Interim Early Intensive Intervention Funding;

(p) payments granted by the government of British Columbia for the Ministry of Children and Family Development’s Extended Autism Intervention Program;

(q) payments granted by the government of British Columbia under section 8 of the Child, Family and Community Service Act [agreement with child’s kin and others];

(r) payments granted by the government of British Columbia under an agreement referred to in section 93 (1) (g) (ii) of the Child, Family and Community Service Act;

(s) payments granted by the government of British Columbia under the Ministry of Children and Family Development’s At Home Program.

(3) If the monthly net income of the family varies during a calendar year, the minister may calculate their monthly net income by

(a) estimating the annual net income that everyone in the family, other than a dependent child, will receive in the calendar year, and

(b) dividing the estimated annual net income by 12.

[am. B.C. Regs. 234/98, s. 2; 110/99; 229/2000; 328/2000, s. 1; 340/2000, s. 1; 413/2000, s. 1; 29/2001, s. 1; 85/2001, s. 1; 262/2002, s. 4; 205/2003.]

Self-employment program exemptions

9.1 (1) In this section and section 9.2,

"permitted operating expenses" includes equipment purchases or rentals, but does not include

(a) employer contributions to an employee benefit program, other than employer contributions for employment insurance, Workers Compensation or the Canada Pension Plan, or

(b) rent and utilities for the residence of the persons described in clauses (A) or (B) of paragraph (h) (i) of the definition of "permitted operating expenses" in section 1, unless

(i) there is an increase for rent or utilities and the increase is attributable to the small business, and

(ii) the increase is not provided for in the calculation of the family’s shelter allowance under the Employment and Assistance Regulation or the Employment and Assistance for Persons with Disabilities Regulation.

(2) Income of a recipient of income assistance under the Employment and Assistance Act or disability assistance under the Employment and Assistance for Persons with Disabilities Act is exempted from the total income of the recipient’s family if

(a) the recipient is participating in a self-employment program, and

(b) the income is derived from a small business under the self-employment program in which the recipient is participating and

(i) is used for permitted operating expenses of the small business, or

(ii) is deposited in a separate account, established by the recipient in a savings institution, which account

(A) consists exclusively of funds reserved by the recipient for the purpose of paying permitted operating expenses of that small business, and

(B) the amount deposited does not increase the current balance of the separate account to a sum that exceeds $5 000, or

(iii) is used for costs of renovation to the recipient’s place of residence if

(A) the renovations are part of a business plan accepted, under a self-employment program, by the minister charged with responsibility for the Employment and Assistance Act and the Employment and Assistance for Persons with Disabilities Act, and

(B) the costs do not exceed $5 000 or a greater amount approved by that minister.

[en. B.C. Reg. 427/99, s. 2; am. B.C. Regs. 262/2002, s. 5; 200/2004, s. 2.]

Withdrawals and expenditures from self-employment program account

9.2 The amount of any expenditure or withdrawal out of a separate account described in section 9.1 (2) (b) (ii), is self-employment income for all purposes of this regulation, unless

(a) the expenditure or withdrawal is for the payment of permitted operating expenses of the small business referred to in section 9.1 (2), and

(b) in the case of a withdrawal, the amount withdrawn is used within one month after the date of withdrawal to pay permitted operating expenses of the small business referred to in section 9.1 (2) (b).

[en. B.C. Reg. 427/99, s. 2.]

How threshold income level is calculated

10 (1) For the purposes of sections 8 and 9, threshold income level is calculated by adding the amounts applicable under subsections (2) and (3) of this section.

(2) For a family of a size set out in Column 1 of the following table, the threshold income level is the amount per month set out opposite in Column 2:

(3) The applicable amount set out in subsection (2) is increased as follows:

(a) by $125 per month for each person in the family who is

(i) a child with special needs,

(ii) a person with disabilities, or

(iii) 65 years of age or over;

(b) by $315 per month if a parent in the family earns a wage from employment;

(c) by $315 per month if

(i) a parent in the family is a student attending an educational institution, and

(ii) no parent in the family earns a wage from employment.

[am. B.C. Regs. 57/2002, s. 4; 76/2003; 200/2004, s. 3.]

If a child needs more than one type of child care

11 If a child needs a combination of any of the types of child care listed in section 2 and the parent is eligible for a child care subsidy, the minister may pay a child care subsidy for each of those types of child care.

Applicant must be notified of outcome

12 (1) The minister must notify the applicant as to whether or not the application is approved.

(2) If the application is not approved, the notification must be in writing and must include the minister's reason for refusing to pay a child care subsidy.

Will a subsidy be paid for child care
provided before completion of the application?

13 (1) A child care subsidy may be paid from the first day of the month in which the parent completes an application under section 4.

(2) If there is undue delay in scheduling the appointment for application or an administrative error has been made, a child care subsidy may be paid for child care provided in the 30 days before the parent completes an application under section 4.

Notifying the minister of change in circumstances

14 The notification required by section 5 (2) of the Act must be given in writing, in person or by telephone,

(a) as soon as possible after any change in circumstances affecting the eligibility of the parent, and

(b) to an employee in the local ministry office.

Accounts and payment

15 (1) Child care providers must submit billing for child care subsidies to the minister in the manner and form specified by the minister.

(2) The minister must pay

(a) child care subsidies for child care provided in the child's own home directly to the parent, and

(b) child care subsidies for child care provided in a child care setting, other than the child's own home, directly to the child care provider.

(3) Despite subsections (1) and (2), a non-profit agency providing child care support services may pay the caregiver and submit accounts to the ministry for reimbursement.

(4) If a licence or permit issued for a child care setting under the Community Care and Assisted Living Act is cancelled, the minister may accept, for up to 30 days after the date the licence is cancelled, billing for subsidized child care provided in that setting.

(5) No child care subsidy will be paid to a child provider under subsection (2) (b) for a day on which the child care setting is closed, unless the day is a statutory holiday.

(6) In subsection (5), "statutory holiday" means any day, except Sunday, that is listed as a holiday in the Interpretation Act.

[am. B.C. Reg. 387/2004, s. 3.]

If a child is absent or is withdrawn without notice

16 (1) The minister may continue to pay a child care subsidy for a period of up to 2 weeks for child care provided in a licensed child care setting or a licence-not-required child care setting, if a child is absent because

(a) the child is on vacation, or

(b) the child or parent is ill.

(2) The child care provider must record the reason for the absence in an attendance register.

(3) If a child for whom a child subsidy is paid is withdrawn without notice from a child care setting, other than the child's own home, or at any time before the end of a month and the vacancy is not filled, the minister may pay the following to the operator of the setting:

(a) the monthly child care subsidy, if during that month the child attended the setting for 1/2 or more of the month;

(b) 1/2 of the monthly subsidy, if the child attended the setting for less than 1/2 of the month.

Reconsideration of decisions

17 (1) A person who wishes the minister to reconsider a decision made under the Act must deliver to the ministry office where the decision was made a request for reconsideration that

(a) is in the form specified by the minister, and

(b) is delivered within 20 business days after the person is notified of that decision.

(2) A request for reconsideration may be delivered under subsection (1) by

(a) leaving it with an employee in the ministry office, or

(b) by mailing it by registered mail to the person in charge at that office.

(3) A request for reconsideration that is mailed in accordance with subsection (2) is deemed to have been delivered 3 business days after the mailing date.

(4) If a request for reconsideration is not delivered in the time required by subsection (1),

(a) the person is deemed to have accepted the decision, and

(b) the decision is not open to review in a court or subject to appeal to a tribunal or other body.

(5) Within 10 business days after receiving a request for reconsideration under subsection (1), the minister must

(a) reconsider the decision, and

(b) provide the person who delivered the request with a written decision on the request.

(6) If a request for reconsideration is delivered under this section about a decision that results in a discontinuation or reduction of a child care subsidy, that decision is set aside until the minister

(a) reconsiders the decision, and

(b) provides the person who delivered the request with a written decision on the request.

(7) If a request for reconsideration is delivered under this section about a decision that results in a refusal of a child care subsidy, that decision stands until the minister

(a) reconsiders the decision, and

(b) provides the person who delivered the request with a written decision on the request.

[am. B.C. Reg. 262/2002, s. 6.]

Status of decisions pending appeal
under the BC Benefits (Appeals) Act

18(1) If an appeal is commenced under section 2 of the BC Benefits (Appeals) Regulation about a decision that results in a discontinuation or reduction of a child care subsidy, that decision is set aside until a tribunal considers the appeal and delivers a decision to the appellant in accordance with the BC Benefits (Appeals) Regulation.

(2) If an appeal is commenced under section 2 of the BC Benefits (Appeals) Regulation about a decision that results in a refusal to pay a child care subsidy, the decision stands until a tribunal considers the appeal and delivers a decision to the appellant in accordance with the BC Benefits (Appeals) Regulation.

[am. B.C. Reg. 262/2002, s. 7.]

Prescribed Acts

19 The following Acts are prescribed for the purposes of section 7 (4) (b) of the Act:

(a) Employment and Assistance Act;

(b) Employment and Assistance for Persons with Disabilities Act.

[en. B.C. Reg. 262/2002, s. 8.]

Transition from BC Benefits (Income Assistance) Act

20 (1) A person

(a) who applied under the BC Benefits (Income Assistance) Act for day care services for a child, and

(b) whose eligibility under that Act is not established before the BC Benefits (Child Care Subsidy) Act comes into force

is deemed to have applied for a child care subsidy under the BC Benefits (Child Care Subsidy) Act and this regulation.

(2) A person who was receiving day care services for a child under the BC Benefits (Income Assistance) Act immediately before the BC Benefits (Child Care Subsidy) Act comes into force is deemed to be receiving a child care subsidy under the BC Benefits (Child Care Subsidy) Act and this regulation.

Schedule A

[en. B.C. Reg. 390/2000, s. 2; am. B.C. Reg. 218/2003, s. 2.]

(Section 8 (2) (a))

Subsidy Rates for Licensed Child Care Settings

Subsidy Rates for Licence-Not-Required Child Care Settings

Subsidy Rates for In-Child's-Home Settings

[Provisions of the Child Care Subsidy Act, R.S.B.C. 1996, c. 26, relevant to the enactment of this regulation: section 13]

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