Child Day Care Allowance Act 2008
CHILD DAY CARE ALLOWANCE ACT 2008



BERMUDA

2008 : 38

CHILD DAY CARE ALLOWANCE ACT 2008

Date of Assent: 8 August 2008

Operative Date: 31 October 2008

ARRANGEMENT OF SECTIONS

1 Short title
2 Interpretation
3 Application for day care

allowance
4 Qualified persons
5 Eligibility of child
6 Grant and refusal of

applications
7 Conditions applicable to

award
8 Payment of award
9 Functions and Duties of

the Director
10 Powers of Director

11 Review of award
12 Revocation or variance of

award
13 Recovery of overpayment
14 Rights of appeal
15 Offence by applicant or

recipient
16 Offence by day care

provider
17 Regulations
18 Amendment of Financial

Assistance Regulations
19 Commencement



WHEREAS it is desirable to make provision for day care
allowances to be paid to assist the parents and guardians of eligible
children to meet the cost of day care;

Be it enacted by The Queen's Most Excellent Majesty, by and
with the advice and consent of the Senate and the House of Assembly of
Bermuda, and by the authority of the same, as follows:


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CHILD DAY CARE ALLOWANCE ACT 2008


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Short title
1 This Act may be cited as the Child Day Care Allowance Act 2008.

Interpretation
2 In this Act, unless the context otherwise requires —

“award” means an award of a day care allowance;

“Bermudian status” means Bermudian status within the
meaning of the Bermuda Immigration and Protection Act
1956;

“day care allowance” means an amount paid under this Act for
day care in respect of an eligible child;

“day care centre” has the meaning given in section 65 of the
Children Act 1998;

“day care” has the meaning given in section 65 of the Children
Act 1998;

“day care provider” has the meaning given in section 65 of the
Children Act 1998;

“Director” means the Director of Financial Assistance whose
office is continued under section 3 of the Financial Assistance
Act 2001;

“eligible child” means a child in respect of whom an award may
be granted under section 5(1);

“Financial Assistance Review Board” means the Board
established under section 15 of the Financial Assistance Act
2001;

“gross annual income” means income derived from salary or
wages before any statutory or other deductions;

“guardian” means a person who has the charge of and who is
otherwise responsible for the care and well-being of a child,
whether or not they have parental responsibility within the
meaning of section 4(1) of the Children Act 1998;

“home day care facility” means a private residence in which day
care is offered on a regular basis to less than 4 children, who
are not of common parentage, by a registered day care
provider;

“licensed day care centre” means a day care centre in respect of
which the operator holds a licence or a provisional licence to
provide day care, issued under section 68 of the Children Act
1998;

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"Minister" means the Minister charged with responsibility for
financial assistance;

“operator”, in respect of a day care provider that is a corporation
or a partnership, means the corporation or the partners, as
the case may be, and in any other case, it means the person
in charge of a licensed day care centre or home day care
facility;

"parent" means the mother or father of a child, whether
biological or adoptive;

“prescribed” means prescribed by regulations made under this
Act;

"recipient" means a person who is in receipt of an award; and

“registered day care provider” means a day care provider who
holds a certificate of registration issued under section 76 of
the Children Act 1998.

Application for day care allowance
3 (1) A person who is qualified under section 4 may apply to the
Director for a day care allowance in such manner as may be prescribed.

(2) The applicant shall provide to the Director such information
and produce such documents as the Director may reasonably require for
determining the eligibility of the applicant for the award, including proof
of the applicant’s gross annual income, in such form as may be
prescribed.

(3) Where both parents reside with the child, or where a parent
or guardian resides with the child together with a spouse who is not the
child’s parent or guardian, the applicant shall —

(a) declare the name and gross annual income of the other
parent or the spouse, as the case may be; and

(b) provide to the Director proof of the gross annual income
of the other parent or spouse, as the case may be, in
such form as may be prescribed.

(4) An application made under this section may be withdrawn
by the applicant by giving the Director notice in writing of the withdrawal
at any time before the applicant is informed of the Director’s decision to
approve or refuse the application.

Qualified persons
4 (1) A person is qualified to apply for a day care allowance if,
and only if, on the date of the application that person—

(a) is the parent or guardian of an eligible child;

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(b) resides with, and has care and control of, the child;

(c) has a gross annual income not exceeding the maximum
prescribed amount; and

(d) possesses Bermudian status or is the spouse of a person
who possesses Bermudian status.

(2) Notwithstanding subsection (1)(c), a person is not qualified
to apply for a day care allowance where the total of the person’s gross
annual income and the gross annual income of a parent or spouse
referred to in section 3(3) exceeds the maximum prescribed amount.

Eligibility of child
5 (1) An award may only be granted in respect of a child if the
child possesses Bermudian status and—

(a) is under five years of age; or

(b) is five years of age and has not yet commenced primary
school education.

(2) An applicant for a day care allowance must provide the
Director with the birth certificate of the child in respect of whom the
application is made, and the Director shall consult with the Department
of Immigration to confirm that the child possesses Bermudian status.

Grant and refusal of applications
6 (1) The Director may, after receiving an application for a day
care allowance made in accordance with section 3 and after reviewing all
such information and documents as the Director may reasonably
require, grant or refuse the application.

(2) The Director shall not grant an award unless satisfied that
the criteria for eligibility in sections 4 and 5 are fulfilled.

(3) Where the Director approves an application, the Director
shall inform the applicant in writing of —

(a) the amount and duration of the award;

(b) the conditions attached to the award; and

(c) the date of commencement of, and the manner and
procedure for, payment of the award.

(4) Where the Director refuses an application for an award, the
Director shall inform the applicant in writing of the decision and shall
specify the reasons for the refusal.

Conditions applicable to award
7 (1) An award granted under this Act shall be subject to the
following conditions—

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(a) the recipient shall notify the Director in writing
forthwith—

(i) of any change in circumstances that would
cause the recipient to cease to be qualified
under section 4 to apply for an award;

(ii) of any change in the circumstances which would
affect the eligibility under section 5 of the child
in respect of whom the award was granted;

(iii) of any change in his or her address or the
address of a parent or spouse referred to in
section 3(3); and

(iv) of any change in the registration of the child in
respect of whom the award was granted with the
licensed day care provider; and

(b) the recipient shall provide such information and produce
such documents, as the Director may reasonably require
from time to time, as proof of the recipient’s income or
the income of a parent or spouse referred to in section
3(3).

(2) The recipient of an award may not transfer it to another
person unless the Director approves the transfer.

Payment of award
8 (1) The Director may only approve payment of an award made
in respect of an eligible child if the Director receives written confirmation
from the operator of a licensed day care centre or a home day care
facility of the child’s registration at the centre or facility.

(2) If the Director does not receive written confirmation under
subsection (1) within 30 days after giving notice of the award to the
recipient, the award shall cease to have effect.

(3) Payment shall be made to the operator of the licensed day
care centre or home day care facility in which the child is registered and
shall continue for only so long as the award remains valid and the child
continues to be registered at that centre or facility.

Functions and Duties of the Director
9 (1) The Director shall administer and control, in accordance
with this Act, all money appropriated by the Legislature for day care
allowances and shall advise the Minister generally on the management
and administration of such money.

(2) The Director shall as soon as practicable after the end of the
Government's financial year make to the Minister and publish in such

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manner as the Director thinks appropriate a report of the Director’s
activities under this Act.

Powers of Director
10 (1) In the exercise of the Director’s functions under this Act,
the Director may—

(a) require an applicant for a day care allowance or a
recipient to provide the Director with such information
and produce such documents as the Director may
specify;

(b) require such applicant or recipient to attend at such
time and place as the Director may require to be
examined as to his or her gross annual income and
circumstances; and

(c) enter premises occupied by an applicant for a day care
allowance or by a recipient to make such examination
and enquiry as the Director may deem to be necessary
for investigating the circumstances of the applicant or
recipient.

(2) In the exercise of the Director’s functions, the Director may,
during normal business hours, enter premises operated as a licensed
day care centre or a home day care facility to make such examination
and enquiry as the Director may deem to be necessary to verify the
registration of eligible children at that place and the provision of day care
to such children.

(3) The Director may authorise an officer of his or her
department to exercise the Director’s powers under this section.

(4) An officer exercising powers under subsection (3) shall, if so
required, produce evidence of his or her authorisation.

Review of award
11 The Director may, on new facts being brought to his or her
notice, or if satisfied that an award was granted in ignorance of, or was
based on a misrepresentation of a material fact, review the granting of
any award.

Revocation or variance of award
12 (1) After reviewing the granting an award under section 11, the
Director may revoke or vary the award if—

(a) the Director is satisfied that the recipient has breached
any condition of the award;

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(b) circumstances arise that cause the recipient of the
award to cease to be qualified under section 4 to apply
for a day care allowance;

(c) circumstances arise that cause the child in respect of
whom the award was granted to cease to be an eligible
child; or

(d) the recipient, in connection with an application for a day
care allowance or otherwise, has provided false,
misleading or inaccurate information.

Recovery of overpayment
13 (1) The Director may require a recipient to repay any sum of
money improperly paid under an award (“overpayment”) as a result of
non-disclosure of facts, misrepresentation, false declaration or for any
other cause and may suspend further payments under the award until
such sum has been paid.

(2) The Director may waive the overpayment or may require the
recipient to pay a reduced amount if satisfied that a recipient has
exercised due care and diligence to avoid the overpayment.

(3) Where the Director determines that the recovery of an
overpayment from a recipient or, in the event of death, from the
recipient’s estate, would cause undue hardship to the recipient or to a
member of his or her household benefiting directly or indirectly from the
award, the Director may waive the overpayment or may require the
recipient or the estate, as the case may be, to pay a reduced amount.

(4) Where any sum is required to be repaid by a recipient under
subsection (1), the Director may recover such sum as a debt owing to
Government in any court of competent jurisdiction.

Rights of appeal
14 (1) An aggrieved person may appeal to the Financial Assistance
Review Board against a decision of the Director—

(a) to refuse an application for a day care allowance; or

(b) to vary or revoke payment of an award.

(2) Sections 16 and 17 of the Financial Assistance Act 2001
apply in respect of appeals to the Board under this Act, with such
changes as are necessary in the circumstances.

Offence by applicant or recipient
15 An applicant for a day care allowance or a recipient is guilty of
an offence and liable on summary conviction to a fine not exceeding
$10,000 or to imprisonment not exceeding six months, or to both, if that
person —

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(a) makes a declaration that he or she knows to be false
with respect to any matter under this Act; or

(b) transfers an award contrary to section 7(2).

Offence by day care provider
16 (1) A day care provider is guilty of an offence and liable on
summary conviction to a fine not exceeding $25,000 or to imprisonment
not exceeding six months, or to both, if that person accepts payment of
an award in respect of a child that the person knows—

(a) is not registered at the licensed day care centre or home
day care facility operated by that person;

(b) is not an eligible child; or

(c) is not the child in respect of whom the award was
granted.

(2) A court that convicts a day care provider of an offence
under subsection (1) may, in addition to any penalty imposed under that
subsection, order that an additional fine be paid in an amount equal to
the total award paid in respect of the child from the date that the person
first knew of any matter referred to in subsection (1)(a) to (c).

Regulations
17 (1) The Minister may make regulations respecting —

(a) the maximum award payable and the duration of the
award;

(b) the procedure for application for a day care allowance;

(c) the maximum gross annual income, for the purposes of
section 4;

(d) the proof required for gross annual income;

(e) the procedure for payment of an award;

(f) recovery of overpayments under section 13;

(g) the investigation of matters pertaining to eligibility for
day care allowances and the granting, review and
payment of awards; and

(h) any matter required to be regulated or prescribed for the
purposes of this Act.

(2) Regulations made under this section are subject to the
negative resolution procedure.

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Amendment of Financial Assistance Regulations
18 The schedule to the Financial Assistance Regulations 2004 is
amended in the Table of Allowable Expenses by deleting the items of
expenditure “Child day care” and ”Child day care arrears”.

Commencement
19 This Act shall come into operation on such day as the Minister
may appoint by notice published in the Gazette.