F-300: Provider Reimbursement Overview

Local Workforce Development Boards (Boards) must ensure that reimbursement for child care is paid only to the provider.

Rule Reference: §809.93(a)

A Board or its child care contractor must not reimburse a provider retroactively for new Board maximum reimbursement rates or new provider published rates.

Rule Reference: §809.93(i)

Boards must not reimburse providers that are debarred from other state or federal programs unless and until the debarment is removed.

Rule Reference: §809.93(e)

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F-301: Reimbursement Based on Monthly Enrollment Authorization

The Board or its child care contractor must reimburse a regulated provider based on a child’s monthly enrollment authorization, excluding periods of suspension at the concurrence of the parent as described in E-601.

Rule Reference: §809.93(b)

Unless otherwise determined by the Boards and approved by the Texas Workforce Commission for automated reporting purposes, the monthly enrollment authorization reimbursement for child care is based on the unit of service authorized, as follows:

  • A full-day unit of service is 6 to 12 hours of care provided within a 24-hour period.
  • A part-day unit of service is fewer than 6 hours of care provided within a 24-hour period.

- Rule Reference: §809.93(f)

A Board or its child care contractor must ensure that parent travel time to and from the child care facility and the parent’s work, school or job training site is included in determining whether to authorize reimbursement for full-day or part-day care.

- Rule Reference: §809.93(j)

A Board or the Board’s child care contractor must not pay providers:

  • Less, when a child enrolled full time occasionally attends for a part day
  • More, when a child enrolled part time occasionally attends for a full day

- Rule Reference: §809.93(h)

A Board or its child care contractor must ensure that providers are not paid for holding spaces open.

- Rule Reference: §809.93(g)

 

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F-302: Reimbursement for Relative Providers

Workforce Development Boards (Boards) must ensure that a relative child care provider is not reimbursed for days on which a child is absent.

Rule Reference: §809.93(c)

Boards must be aware of the following:

  • For a child in relative care, the child’s absences are not counted toward the maximum number of absences allowed.
  • There are no paid “holidays” for relative providers, and Boards must ensure that no relative provider days are authorized or paid as holidays.

Boards must ensure that relative child care providers are not reimbursed for more children than permitted by the Texas Department of Family and Protective Services minimum regulatory standards for registered child care homes.  Boards may permit more children to be cared for by a relative child care provider on a case-by-case basis as determined by the Boards.

- Rule Reference: §809.93(c)

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F-303: Reimbursement for Providers on a Notice of Freeze or Notice of Levy with TWC

Texas Labor Code, Title 4, §213.059 (Delinquency; Notice of Levy), requires the Texas Workforce Commission (TWC) to identify and obtain control of assets owned by or debts owed to an individual who is delinquent in the payment of any amount, including contributions, penalties and interest due under the Texas Unemployment Compensation Act.  An “asset” means a credit, bank or savings account or deposit, or any other intangible or personal property.

Texas Labor Code, Title 2 (Protection of Laborers), Subtitle C (Wages) §61.091 (Notice of Delinquency) through §61.095 (Discharge of Liability) requires TWC to identify and obtain control of assets owned by or debts owed to an individual who is delinquent in the payment of wages, including penalties due under Texas Labor Code, Chapter 61. 

To enforce the delinquency provision, TWC is required to provide notice not to transfer or dispose of the assets or debts owed to any other individual who possesses or controls the assets or debts of a delinquent individual.  TWC’s Regulatory Integrity Division (RID) oversees this process and issues a Notice of Freeze to the entity in possession of assets or debts owed, instructing that a hold be placed on the assets.  The Notice of Freeze provides:

  • The amount of contributions, penalties, interest, wages and/or other amounts due
  • Any additional amount that will accrue by operation of law in a period not to exceed 30 days after the date on which the notice is given 

After issuance of the Notice of Freeze, TWC has up to 60 days to issue a Notice of Levy, which authorizes the entity holding the assets or debts to transfer them to TWC.  However, at any time during the 60-day period, RID can levy on the asset or debt by delivery of a Notice of Levy.  

If the delinquent entity is a child care provider owed reimbursements for child care services through TWC’s child care program, RID provides both the Notice of Freeze and the Notice of Levy to the Board’s executive director in the affected local workforce development area (workforce area).   

Upon receipt of a Notice of Freeze, Boards must ensure that a 60-day freeze is placed on any child care subsidies owed to the individual or child care provider identified in the notice. 

Boards must be aware of the following:

  • TWC can release a Notice of Freeze before the end of the 60-day period.
  • TWC may issue a Notice of Levy requesting the held funds be transferred to TWC.  The Notice of Levy will not exceed the total amount of the delinquency. 
  • The Notice of Freeze will expire automatically after the 60-day period absent any additional action taken by TWC.

Boards must ensure the following:

  • A response to the Notice of Freeze is sent to TWC's Regulatory and Integrity Division within 20 days of its receipt.
  • The response references the nature and value of any child care subsidies owed to the individual or child care provider identified in the notice.
  • Any subsequent payments to the individual or child care provider during the 60-day period are held until a Notice of Levy is received or the freeze expires.
  • Upon receipt of a Notice of Levy indicating the total amount requested, all held child care payments are transferred to TWC.  

Boards must be aware that a Notice of Freeze or a Notice of Levy on subsidy payments does not make a child care provider ineligible to care for TWC-subsidized children.  However, the provider can choose to discontinue providing subsidized child care services. 

If a provider chooses to discontinue providing TWC-subsidized child care services, Boards must ensure that the provider agrees to give notice to parents and the Boards or its child care contractor at least 30 days before the discontinuation of services to avoid interruptions in care and minimize impact on parents and children.

Boards must be aware that a provider on a Notice of Freeze or Notice of Levy is not eligible for the Texas Rising Star program.

- Rule Reference: §809.131(a)(2)(B)

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F-304: Reimbursement for Providers Debarred from the Child & Adult Care Food Program

The Child and Adult Care Food Program (CACFP) is a federally funded program administered in Texas by the Food and Nutrition Division of the Texas Department of Agriculture (TDA).  The program reimburses eligible child care centers for part of the cost associated with serving approved, nutritious meals and snacks to children.

When TDA determines a provider noncompliant in one or more aspects of its operation of CACFP, a notice of termination and disqualification is given to the provider and all responsible principals within the provider organization are placed on the U.S. Department of Agriculture (USDA) National Disqualification List (NDL).

Boards must be aware that placement on NDL includes the following consequences:

  • Provider is not allowed to participate in CACFP as a contracting entity or site.
  • Provider and responsible principals are not allowed to perform any CACFP function or serve as a principal in any organization or site in CACFP
  • Provider will remain on NDL until the USDA Food and Nutrition Service, in consultation with the TDA Food and Nutrition Division, determines that the noncompliance has been corrected, or until seven years after the disqualification.  (If any CACFP debt has not been repaid, the provider and responsible principals will remain on NDL until the debt has been repaid.)

Pursuant to Texas Workforce Commission (TWC) Child Care Services rule §809.93, Boards must not reimburse providers that have been placed on NDL for CACFP.

Boards must be aware that once a provider has been placed on NDL, TDA notifies TWC and TWC forwards the notification to the Board in the workforce area in which the provider is located (managing Board) and any other Board with subsidized children enrolled with the provider, including children receiving protective services funded by Texas Department of Family and Protective Services.

Upon receipt of notification from TWC, the Boards must ensure the following:

  • Parents with children enrolled in TWC-funded child care with the provider are notified, in writing or by telephone, no later than two business days after receiving the notice from TWC that the provider is no longer an eligible provider of subsidized child care.
  • Parents are given the option of having children remain enrolled at the provider or transferred to another eligible provider.
  • Parents are notified that if a parent elects to keep a child enrolled at the facility, it is considered a voluntary withdrawal from subsidized child care services.
  • Parents electing to transfer care to another provider must choose an eligible provider within 10 business days after receiving notification from the Board.
  • All current referrals end within 10 business days after the parent receives the notification.
  • The agreement with the provider ends in the month in which the 10th business day after the parent receives notification from the Board occurs.
  • No new referrals for child care services are made to the provider.

The managing Boards must ensure that for a provider disqualified from CACFP the following information is entered into The Workforce Information System of Texas:

  • Date the report was sent to the Board (entered as the “Ineligible Provider Date” on the Program Detail, Provider tab)
  • Select 4-Fed/State Debarment under Corrective/Adverse on the Program Detail, Provider tab

Boards must ensure that if a parent transfers a child, the transfer is not counted against the parent under the Board’s transfer policy.

F-304.a  Written Notification to Parents Regarding Provider Termination and Disqualification

Boards may develop letters to notify parents of a provider’s disqualification status.

However, Boards must ensure the following:

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Part A - Definitions

Part H - Consumer Education and Child Care Quality Activities

Part J - Appendix