CHAPTER 10 – SUBSIDIZED CHILD CARE RULES
SECTION .0100 - IDENTIFYING AND GENERAL INFORMATION
10A NCAC 10 .0101 SCOPE
The rules in this Chapter govern the purchase of child care
services with state and federal child care funds administered by the Division.
History Note: Authority G.S. 143B‑10; 143B‑153;
S.L. 1985, c. 757, s. 155(q);
Eff. October 26, 1979;
Amended Eff. April 1, 2001; February 1, 1996; July 1, 1990; February 1, 1986.
10A NCAC 10 .0102 DEFINITIONS
For the purpose of this Chapter, unless the context of the
rule indicates a different meaning, the terms listed in this Rule are defined
as follows:
(1) "Department" means the Department of
Health and Human Services.
(2) "Director" means the Director of the
Division of Child Development and Early Education.
(3) "Division" means the Division of Child Development
and Early Education, Department of Health and Human Services, located at 319
Chapanoke Road, Suite 120, Raleigh, North Carolina 27603.
(4) "Local Purchasing Agency" means the local
agency responsible for administering the state's subsidized child care program.
(5) "Owner" means any person with a five
percent or greater equity interest in a child care center, family child care
home, or nonlicensed child care home.
(6) "Private Agency" means a private, for
profit or non-profit, non-governmental entity.
(7) "Provider" means the owner of a child
care center, family child care home, or nonlicensed child care home.
(8) "Recipient" means the parent or
responsible adult approved for subsidized child care services pursuant to
Section .1000 of this Chapter.
(9) "Secretary" means the Secretary of the
Department of Health and Human Services.
(10) "Subsidized Child Care Program" means the
administrative, programmatic and fiscal activities related to the use of public
funds to pay for child care services for families.
History Note: Authority G.S. 143B-153 (2a);
Eff. February 1, 1986;
Amended Eff. December 1, 2011; April 1, 2001; February 1,
1996.
SECTION .0200 - REQUIREMENTS FOR THE PURCHASE OF CHILD CARE
10A NCAC 10 .0201 APPLICABILITY
All child care providers from which child care is purchased
for eligible children with child care services funds shall adhere to the rules
of this Subchapter that apply to that type of provider.
History Note: Authority G.S. 143B‑153(2a);
Eff. October 26, 1979;
Amended Eff. April 1, 2001; January 1, 1987; April 1, 1985.
10A NCAC 10 .0202 PAYMENT RATES
(a) Rates for daily care purchased from a child care center
shall be established according to the procedures described in Rule .0203 of
this Section and according to the instructions included in the annual
appropriations act.
(b) The payment rate for child care purchased from a child
care home as defined in G.S. 110‑86(3) shall be limited to the county
market rate for home-based child care established by the Department in
accordance with the annual appropriations act.
(c) The payment rate for child care purchased from a
home-based child care arrangement which meets the requirements established by
the Social Services Commission for a nonlicensed child care home, as codified
in 10A NCAC 10 .0800, shall be limited to the county market rate for home-based
nonlicensed child care established by the Department in accordance with the
annual appropriations act.
(d) The payment rates for daily transportation purchased
from any approved provider shall be established by the Department in accordance
with the annual appropriations act.
(e) Payment rates for part‑time care shall be
prorated according to the number of hours per day or the number of hours per
week the child is scheduled to attend. Payment rates for care provided by
shift or during the weekend shall be limited to the market rate or the
provider's private rate, whichever is lower.
(f) Client fees imposed in accordance with the annual
appropriations act shall be subtracted from the county payment rate to
determine the state payment amount for an individual child.
History Note: Authority G.S. 143B‑153(8)a;
Eff. January 1, 1987;
Amended Eff. April 1, 2001; August 1, 1994; July 1, 1990.
10A NCAC 10 .0203 RATES FOR SUBSIDIZED CHILD CARE
(a) The payment rates for child care centers, family child
care homes, and nonlicensed child care homes are implemented in accordance with
the annual appropriations act.
(b) Centers, as defined in G.S. 110-86(3), which are
certified as developmental day centers by the Division of Child Development and
Early Education and serve children who meet the definition of special needs set
forth in 10A NCAC 10 .0910 are exempt from the provisions of Paragraph (a) of
this Rule. The payment rates for special needs children served in
developmental day centers are calculated by deducting the total revenues per
child month from the total costs per child month. That rate is then multiplied
by the current inflation percentage provided by the Office of State Budget and
Management. For typically developing children enrolled in developmental day
centers, the rates shall exclude those costs associated exclusively with
serving children with special needs. The payment rates for special needs
children and typically developing children served in developmental day centers
are calculated every two years and are implemented as funding allows.
(c) Any Local Purchasing Agency (LPA) approved child care
provider not included in Paragraph (b) of this Rule who provides care to
children who meet the definition of special needs set forth in 10A NCAC 10
.0910 may be paid a supplemental rate above the provider's LPA approved rate
for a particular age group. The supplemental rate shall be based on actual
additional documented costs incurred by the provider in serving the child with
special needs. The costs shall be determined by the early intervention specialist,
the local education agency's exceptional children program specialist, the local
purchasing agency, and the provider based on the plan developed to meet the
child's individual needs.
(d) The reimbursement of additional fees as charged by
centers is limited to registration fees. The payment rate for registration
fees is determined by the annual appropriations act. Registration fees may not
be paid more than twice per year per child regardless of the type of center.
(e) Purchasing agencies may negotiate with child care
center providers for purchase of child care services at payment rates lower
than those prescribed by this Rule, only with approval from the Division. Approval
shall be granted if it can be determined that a non-negotiated payment rate would
have a negative impact on the purchasing agency's ability to purchase
subsidized child care services, based on the following factors:
(1) the number of children on the waiting list
for subsidized child care services;
(2) whether the non-negotiated rates exceed the
rates for services paid by private paying families in the service area; and
(3) the amount of subsidized child care funds
available.
(f) Child care services funds shall not be used to pay for
services provided by the Department of Health and Human Services, Division of Public
Health or the Department of Public Instruction, Division of Exceptional
Children's Services for that portion of the service delivery costs which are
reimbursed by the Division of Public Health or Department of Public Instruction.
History Note: Authority G.S. 143B-153(8)a;
Eff. January 1, 1987;
Amended Eff. March 1, 2012; April 1, 2001; February 1,
1996; December 1, 1992; July 1, 1990.
SECTION .0300 ‑ REQUIREMENTS FOR CHILD CARE SERVICE
FUNDS
10A NCAC 10 .0301 DEFINITION OF FUND
"Child Care Services Funding" means all state and
federal funds appropriated and otherwise made available to the Department of
Health and Human Services which are administered by the Division of Child
Development, to purchase or provide child care services for needy families in
programs which have been approved for participation by the Division.
History Note: Authority G.S. 143B‑153(2a); S.L.
1985, c. 479, s. 95‑97;
Eff. October 26, 1979;
Filed as a Temporary Amendment Eff. July 1, 1982, for a period of 120 days to expire on October 28, 1982;
Legislative Objection Lodged Eff. July 20, 1982;
Amended Eff. April 1, 2001; February 1, 1996; February 1, 1986; August 1, 1982.
10A NCAC 10 .0302 DEFINITION OF SERVICES
The definition for child care services which may be
purchased with this fund is codified in 10A NCAC 10 .0903.
History Note: Authority G.S. 143B‑153(2a);
Eff. October 26, 1979;
Amended Eff. April 1, 2001; February 1, 1986; July 1, 1983; July 1, 1980.
10A NCAC 10 .0303 ELIGIBILITY
(a) Child care services may be provided to families
demonstrating a need for services as defined by one of the reasons for care
described in 10A NCAC 10 .0900.
(b) Eligibility criteria for child care services are
described in 10A NCAC 10 .1000.
(c) Eligibility for the service shall be determined by the
local department of social services or other agency authorized to determine
eligibility for child care services under the conditions described in 10A NCAC
10 .1005.
(d) Application for the service shall be made to the agency
responsible for determining eligibility as described in Paragraph (c) of this
Rule.
History Note: Authority G.S. 143B‑153(2a);
Eff. October 26, 1979;
Amended Eff. April 1, 2001; February 1, 1996; July 1, 1990; April 1, 1987; February 1, 1986.
10A NCAC 10 .0304 FEES
Fees for child care services are charged in accordance with
the annual appropriations act and fee policies adopted by the Social Services
Commission as codified in 10A NCAC 10 .1100.
History Note: Authority G.S. 143B‑153;
Eff. October 26, 1979;
Amended Eff. April 1, 2001; July 1, 1983.
10A NCAC 10 .0305 PROGRAM POLICIES AND STANDARDS
All providers and local purchasing agencies receiving child
care services funding shall meet all child care services policies and
procedures as found in 10A NCAC 10.
History Note: Authority G.S. 143B‑153; 143-153
(2a);
Eff. October 26, 1979;
Filed as a Temporary Amendment Eff. July 1, 1982, for a period of 120 days to expire on October 28, 1982;
Legislative Objection Lodged Eff. July 20, 1982;
Amended Eff. April 1, 2001; February 1, 1996; August 1, 1982.
10A NCAC 10 .0306 ALLOCATION
Funds are allocated in accordance with procedures specified
with the appropriation. In the absence of such instructions, the funds will be
allocated according to rules adopted by the Secretary. All allocation
procedures are kept on file in the Division.
History Note: Authority G.S. 143B‑153(2a);
Eff. October 26, 1979;
Amended Eff. April 1, 2001; July 1, 1990; February 1,
1986; April 1, 1985.
10A NCAC 10 .0307 REIMBURSEMENT
Local purchasing agencies shall key information regarding
expenditures for subsidized child care services into the Division's Subsidized
Child Care Reimbursement System on a monthly basis in order for the services to
be reimbursed.
History Note: Authority G.S. 143B‑153(2a);
Eff. October 26, 1979;
Amended Eff. April 1, 2001; July 1, 1990; February 1, 1986; April 1, 1985.
10A NCAC 10 .0308 SANCTIONS AND APPEALS FOR FRAUDULENT
MISREPRESENTATION
(a) The local purchasing agency shall impose sanctions for
fraudulent misrepresentation when a person, whether a provider or recipient of
child care subsidies, or someone claiming to be a provider or recipient of
child care subsidies, does the following:
(1) With the intent to deceive, makes a false
statement or representation regarding a material fact, or fails to disclose a
material fact; and
(2) As a result of the false statement or
representation or the omission, obtains, attempts to obtain, or continues to
receive a child care subsidy for himself or herself or for another person.
(b) The local purchasing agency shall impose the following
sanctions for fraudulent misrepresentation in addition to requiring the recipient
or provider to repay the amount of child care subsidy for which he or she is ineligible
to receive:
(1) After the first incidence of fraudulent misrepresentation
by a recipient, the recipient shall be ineligible to receive subsidized child
care services until overpayment is recouped in full or the local purchasing
agency shall enter into a repayment agreement with the recipient if the
recipient so desires;
(2) After the second incidence of fraudulent
misrepresentation by a recipient, the recipient shall be ineligible to
participate in the subsidized child care program for three months; and
(A) shall repay the overpayment in full; or
(B) the local purchasing agency shall enter into a new
repayment agreement with the recipient if the recipient so desires;
(3) After the third incidence of fraudulent
misrepresentation by a recipient, the recipient shall be permanently ineligible
to participate in the subsidized child care program and shall repay the
overpayment in full;
(4) After the first incidence of fraudulent
misrepresentation by a provider, the provider shall not be paid with subsidized
child care funds for any new children who enroll in the provider's program for
12 months; and
(A) the provider shall repay the overpayment in full; or
(B) the local purchasing agency shall enter into a
repayment agreement with the provider if the provider so desires; and
(5) After the second incidence of fraudulent misrepresentation
by a provider, the provider shall repay the overpayment in full, shall be
permanently ineligible to participate in the subsidized child care program, and
shall not be reimbursed for any services provided to children enrolled in the
provider’s program from the date of notification of sanction in accordance with
G.S. 150B-23(c).
(c) If a recipient or provider enters into a repayment
agreement and fails to comply with terms of that agreement, eligibility to
participate in the subsidized child care program shall cease until repayment is
made in full or the recipient or provider and the local purchasing agency agree
to modify the repayment agreement.
(d) Notwithstanding Subparagraphs (b)(4), (5), and (6) of
this Rule, the recipient or provider shall be permanently ineligible to
participate in the subsidized child care program if:
(1) the total dollar amount of the fraudulent
misrepresentation exceeds ten thousand dollars ($10,000); or
(2) the recipient or provider is convicted of
fraudulent misrepresentation pursuant to G.S. 110-107.
(e) Sanctions pursuant to this Rule shall be effective 10
days from the date of notice of the sanction. Appeal of a sanction shall not
stay the termination of payments under this Rule.
(f) A child care provider may appeal any sanction imposed
in Paragraph (b) of this Rule pursuant to 10A NCAC 10 .0311 and 10A NCAC 10.
0312. A recipient may appeal any sanction imposed in Paragraph (b) of this
Rule by following the appeals procedures pursuant to G.S. 108A-79.
(g) When a court of competent jurisdiction finds a
recipient or provider guilty of fraudulent misrepresentation pursuant to
Subparagraph (d)(2) of this Rule, the sanction imposed is not subject to appeal
under this Section.
(h) Nothing in this Rule shall be construed as limiting
child care services pursuant to 10A NCAC 10 .0906.
History Note: Authority G.S. 143B-153;
Eff. April 1, 2001;
Amended Eff. December 1, 2011.
10A Ncac 10 .0309 CORRECTION OF OVERPAYMENTS AND
UNDERPAYMENTS
(a) An overpayment made as a result of inadvertent error or
fraudulent misrepresentation by the recipient or provider as described in Rule
.0308(a) of this Section shall be recouped as follows:
(1) From the recipient if the recipient at the
time the overpayment occurred was at least 18 years of age or older; and
(2) By;
(A) voluntary repayment by the recipient or provider;
(B) involuntary repayment by pursuing court action; or
(C) wage garnishment as permitted by law.
(b) An overpayment made due to agency error in complying
with program rules and statutes shall be corrected by adjustment through the
state's subsidized child care payment system.
(c) An underpayment made due to agency or provider error in
complying with program rules and statutes shall be corrected within 30 days of
discovery of the error, but the local purchasing agency is not required to
correct the underpayment if it is discovered more than 45 days from the date
the payment is made.
(d) Appeals pursuant to this Rule shall be in accordance
with 10A NCAC 10 .0311 and 10A NCAC 10 .0312.
History Note: Authority G.S. 143B-153;
Eff. April 1, 2001;
Amended Eff. December 1, 2011.
10A ncac 10 .0310 REQUIREMENTS FOR THE ADMINISTRATION OF
THE SUBSIDIZED CHILD CARE PROGRAM
(a) Any agency that administers child care services funding
through the state's subsidized child care program shall maintain records of
administration of the program for a period of three years, following the final
report issued to the funding agency, or until all audits begun within the retention
period are complete, whichever is longer.
(b) Any agency that administers the state's subsidized
child care program shall provide records of administration of the program upon
request for review by local, state, or federal agency representatives.
(c) Upon review of agency records of administration of the
state's subsidized child care program, if it is found that child care services
funding was not spent in accordance with applicable state or federal
regulations, the Division shall require the agency to pay back funds improperly
spent.
(d) Any agency that both administers the state's subsidized
child care program and is a provider of subsidized child care services shall
develop and implement a conflict of interest policy that shall include
provision for:
(1) parental choice for recipients of
subsidized child care; and
(2) separate management of the subsidized child
care program and the child care facility owned or operated by the agency.
History Note: Authority G.S. 143B-153(2a);
Eff. April 1, 200l;
Amended Eff. December 1, 2011.
10A NCAC 10 .0311 PROVIDER APPEAL TO LOCAL PURCHASING
AGENCY
(a) A provider or recipient wishing to contest an action
shall request an initial review with the local purchasing agency within 30
calendar days of effective date of the local purchasing agency action.
(b) The local purchasing agency must make a determination
on the initial review within 10 calendar days of the request for an initial
review. Within 30 calendar days of notice of the determination on the initial
review by the local purchasing agency, the provider may request a local appeal
hearing by the local purchasing agency.
(c) The local appeal hearing shall be held within five
calendar days of when the request is received. The local purchasing agency
shall grant a delay of up to 10 days at the written request of the provider, but
in no event shall the local appeal hearing be held more than 15 calendar days
after the receipt of the request for hearing.
(d) The local purchasing agency must serve a written
statement of decision within 10 calendar days following the local hearing. The
decision shall include the facts and conclusions which support the
determination by the local purchasing agency.
(e) The local purchasing agency shall include with its
written statement of decision instructions for appealing its decision.
(f) A provider may appeal the written statement of decision
of the local purchasing agency to the State Subsidy Services Appeals Panel by
filing a notice of appeal within 15 calendar days of receipt of the written
statement of decision.
History Note: Authority G.S. 143B-153;
Eff. December 1, 2011.
10A NCAC 10 .0312 APPEAL TO DIVISION OF CHILD
DEVELOPMENT AND EARLY EDUCATION SUBSIDY SERVICES REVIEW PANEL
(a) Definitions.—The following definitions apply in this
Rule:
(1) "Appealing Party" means the
Provider or Recipient, as defined in 10A NCAC 10 .0102.
(2) "File or Filing" means personal
delivery, delivery by certified mail, or delivery by overnight express mail to
the current Chief of Subsidy Services Section (Chief), North Carolina Division
of Child Development and Early Education (Division), 2201 Mail Service Center,
Raleigh, NC 27699-2201. A document or paper is deemed filed as of the date it
is delivered to the Chief. Filings addressed to a person other than the Division
Director, or which fail to be filed within the time periods established by this
Rule, or which otherwise fail to be filed in conformity with the rules in this
Section shall be considered as improper filings and denied.
(3) "State Subsidy Services Appeals Panel"
means the North Carolina Division of Child Development and Early Education
internal review panel established under this Rule.
(b) Appeals Panel.—The State Subsidy Services Appeals Panel
(Panel) is established. The Panel shall be impartial and shall consist of one
representative and one alternate representative for each Section of the
Division. Representatives and alternates shall be chosen by each Section
Chief.
(c) Who Can Appeal.—The following persons may appeal to the
Panel after having exhausted the appeals process at the appropriate Local
Purchasing Agency:
(1) A provider or recipient to whom a local
purchasing agency has issued a sanction pursuant to 10A NCAC 10 .0308;
(2) A provider whom a local purchasing agency
has failed to approve for participation in or has terminated participation the
subsidized child care program pursuant to Section .0600 of this Chapter;
(3) A provider whom a local purchasing agency
has failed to approve for participation in or has terminated participation the
subsidized child care program pursuant to Section .0700 of this Chapter; and
(4) A provider wishing to contest the
determination of overpayment pursuant to 10A NCAC 10 .0309.
(d) Hearing.—All members of the Panel shall hear an appeal
to the Panel. An appeal shall be filed with the Panel within 30 days of
exhausting the appeals process at the local purchasing agency as described as
follows:
(1) The Subsidy Services Chief shall notify the
Local Purchasing Agency (LPA) that an appeal has been filed; and
(2) Upon notification of an appeal filed
pursuant to this section, the LPA shall, within five days of the date of
notification, forward to the Chief, with a copy to the appellant:
(A) a copy of its final decision;
(B) the signed agreement between the LPA and the provider
or recipient, where applicable; and
(C) all supplementary documentation considered during
the local appeals process.
(e) The Panel shall convene and shall maintain a record of
their decision in the appeal and the reason(s) for their decision.
(f) The Panel shall vote on each item being appealed.
(g) Findings and decisions of the Panel shall be by
majority vote.
(h) The Panel may obtain any form of technical assistance
or consultation relevant to the appeal in conducting the administrative review.
(i) The Panel shall complete an administrative review and
notify the appealing party and the LPA of its decision in writing within 20
business days of the Panel's receipt of the appeal record. The decision shall
include the facts and conclusions which support the determination by the State
Subsidy Services Appeals Panel.
(j) Any decision shall be delayed until a subsequent
meeting if the Panel determines that it lacks sufficient information to render
a decision at the initial administrative review.
(k) The administrative review decision shall be distributed
within 10 business days of the decision being rendered.
(l) The appellant may appeal the administrative review
decision by filing a petition for contested case pursuant to G.S. 150B-23 and
in accordance with G.S. 110-94. Appeals from the State Subsidy Appeals Panel
must be filed within 30 days of mailing of the Panel's decision to the parties.
(m) Decision.—A decision may direct an LPA to take an
action or to refrain from taking an action.
History Note: Authority G.S. 143B-153;
Eff. December 1, 2011.
10A NCAC 10 .0313 EFFECT OF ADMINISTRATIVE ACTION ISSUED
AGAINST PROVIDER
(a) All child care subsidy payments made pursuant to a
Provider Agreement shall terminate 45 days after issuance of an administrative
action revoking, summarily suspending, or denying a license to operate a child
care facility issued pursuant to G.S. 110-90.
(b) An appeal of an administrative action revoking,
summarily suspending, or denying a license does not stay the termination of
approval to participate in the state's Subsidized Child Care Program. If under
appeal, the maximum time period during which payments from the state's
Subsidized Child Care Program may be made is 45 days from the date on the
notice of the administrative action. A provider subject to administrative
action as described in this Paragraph shall not be paid with subsidized child
care funds for any new children enrolled after the date on the notice of the
administrative action.
(c) A child care provider who has received an
administrative action revoking or denying a license by the Division of Child
Development and Early Education, or who is currently under summary suspension, is
ineligible to participate in the state's Subsidized Child Care Program as a
nonlicensed child care home.
History Note: Authority G.S. 143B-153;
Eff. December 1, 2011.
SECTION .0400 – START-UP FUNDS
10A NCAC 10 .0401 DEFINITION OF START-UP FUNDS
10A NCAC 10 .0402 Review Criteria For START-UP Funds
History Note: Authority G.S. 143B-10; 143B-153(2a);
Eff. January 16, 1980;
Amended Eff. April 1, 2001; July 1, 1990; February 1,
1986;
Repealed Eff. December 1, 2011.
SECTION .0500 ‑ REQUIREMENTS FOR CONTRACTS WITH PRIVATE
AGENCIES
10A NCAC 10 .0501 SCOPE
The rules of this Section shall apply to all private
agencies administering the state subsidized child care program, in accordance
with the rules in this Chapter, within any geographical area of North Carolina under contractual arrangement with the Department of Health and Human
Services or a local department of social services.
History Note: Authority G.S. 143B‑153(2a);
Eff. July 1, 1992;
Amended Eff. April 1, 2001.
10A NCAC 10 .0502 APPROVAL
(a) All contracts with private agencies administering the
state subsidized child care program shall be approved by the Department prior
to their execution.
(b) Each private agency administering the subsidized child
care program shall provide to the Department, prior to execution of a contract
to administer the program, a complete and detailed copy of its budget,
including both income and expenditures. If requested by the Department, the
private agency shall demonstrate to the satisfaction of the Department
sufficient dependable sources of income to insure its continued operation
during the contract period.
History Note: Authority G.S. 143B‑153(2a);
Eff. July 1, 1992;
Amended Eff. April 1, 2001.
10A NCAC 10 .0503 LENGTH OF CONTRACT
Contracts with private agencies to administer the state
child care program shall be for a term not to exceed one year and shall expire
on or before the end of the state fiscal year.
History Note: Authority G.S. 143B‑153(2);
Eff. July 1, 1992;
Amended Eff. April 1, 2001.
10A NCAC 10 .0504 ADMINISTRATION OF FUNDS
State and federal funds for child care services shall be
disbursed only as reimbursement to an agency for funds previously paid by the
agency to child care providers for child care services.
History Note: Authority G.S. 143B‑153(2a);
Eff. July 1, 1992;
Amended Eff. April 1, 2001.
10A NCAC 10 .0505 ADMINISTRATION OF PROGRAM
(a) Each agency administering the subsidized child care
program shall exercise any powers and duties delegated to it under this Chapter
or under contract in a fair and impartial manner. It shall not discriminate
with respect to any child care parent or child care provider in reaction to any
complaint lodged with or against the agency by that parent or child care
provider or in reaction to any opposition or support expressed by that parent
or child care provider to a position taken by the agency on any child care
issue. It shall comply fully with the parental freedom of choice provisions of
10A NCAC 10 .0909.
(b) An agency determined by the Secretary or his designee
to have violated the provisions of this Rule shall be ineligible to contract
for administration of the subsidized child care program funds for a period
determined by the Secretary of up to three years from the date of the
Secretary's determination that a violation has occurred. Determinations by the
Secretary or his designee may be appealed pursuant to G.S. 150B‑23 by the
agency or by the complainant if that person or entity is the person or entity
aggrieved as defined in G.S. 150B-2.
History Note: Authority G.S. 143B‑153(2a);
Eff. July 1, 1992;
Amended Eff. April 1, 2001.
10A NCAC 10 .0506 RECORDS
(a) If the private agency is organized as a corporation or
unincorporated association, it shall upon request of the Department or other
contractor, open its minute books of meetings of directors, shareholders, or
members for inspection.
(b) Each private agency administering state child care
funds shall maintain records of all receipts and disbursements for a period of
three years following the final report issued to the funding agency, or until
all audits begun within the retention period are complete, whichever is longer.
(c) If a private agency ceases operation, it shall provide
the Department with copies of the records specified in this Rule.
(d) Each private agency administering state or federal
child care services funds shall have a written policy for the inspection,
examination, and copying of records maintained by the agency. The written
policy shall comply with the provisions of Chapter 132 of the General Statutes.
History Note: Authority G.S. 143B-153(2a);
Eff. July 1, 1992;
Amended Eff. December 1, 2011; April 1, 2001.
SECTION .0600 - REQUIREMENTS FOR CHILD CARE CENTERS
10A NCAC 10 .0601 STANDARDS FOR CENTERS PARTICIPATING IN
THE subsidized child CARE PROGRAM
(a) Any center which wishes to participate in the state
Subsidized Child Care Program as defined in 10A NCAC 10 .0102 shall satisfy
applicable state child care requirements as codified in 10A NCAC 09, and must
be approved by the local purchasing agency for participation and payment.
(b) Any center not required by G.S. 110 to be licensed,
except for religious-sponsored centers operating in accordance with G.S.
110-106, shall be licensed in order to participate in the state's Subsidized
Child Care Program.
(c) The operator of any center in the Subsidized Child Care
Program shall assure that the center complies with all applicable provisions of
the Civil Rights Act of 1964 and all requirements imposed thereunder.
(d) Each child care center shall submit appropriate
information to enable the local purchasing agency to establish a payment rate
for the center in accordance with the rate setting policies in the annual
appropriations act and codified in Section .0200.
History Note: Authority G.S. 143B‑153(2a);
Eff. February 1, 1986;
Amended Eff. April 1, 2001; March 1, 1996; July 1, 1990.
10A ncac 10 .0602 APPROVAL
AND CONTINUED PARTICIPATION IN THE SUBSIDIZED CHILD CARE PROGRAM
(a) Application for approval to participate in the state's
Subsidized Child Care Program shall be made to the local purchasing agency.
(b) Any center approved for participation in the Subsidized
Child Care Program shall continue to be eligible for as long as the center
maintains compliance with all of the requirements set forth in this Subchapter.
(c) When a center is found to be out of compliance with any
requirement for participation, the Division shall set a time limit for
compliance. The Division shall base the time limit on the length of time
projected to be needed for the center to comply with the requirement. If the
center fails to comply within the set time limit, approval may be terminated.
(d) Upon request for review by a local, state, or federal
agency representative, the operator of a center shall provide records
pertaining to his or her participation in the state's Subsidized Child Care
Program.
History Note: Authority G.S. 143B‑153(2a);
Eff. February 1, 1986;
Amended Eff. April 1, 2001; February 1, 1996.
10A NCAC 10 .0603 APPEALS
History Note: Authority G.S. 143B-153(2a); 150B-23;
Eff. February 1, 1986;
Amended Eff. April 1, 2001; July 1, 1990;
Repealed Eff. December 1, 2011.
SECTION .0700 - REQUIREMENTS FOR FAMILY CHILD CARE HOMES
10A ncac 10 .0701 STANDARDS FOR FAMILY CHILD CARE HOMES
PARTICIPATING IN THE SUBSIDIZED CHILD CARE PROGRAM
(a) Any family child care home which wishes to participate
in the state subsidized child care program as defined in 10A NCAC 10 .0102
shall comply with the standards for family child care homes as codified in 10A
NCAC 09 .1700 and all other applicable state family child care home
requirements in 10A NCAC 09 and G.S. 110 Article 7.
(b) The operator of any family child care home
participating in the subsidized child care program shall assure that the home
complies with all applicable provisions of the Civil Rights Act of 1964 and all
requirements imposed therein.
(c) Any family child care home that wishes to participate
in the subsidized child care program must be approved by the local purchasing
agency for participation and payment.
(d) Each family child care home shall submit appropriate
information to enable the local purchasing agency to establish a payment rate
for the home in accordance with the rate setting policies in the annual
appropriations act and codified in Section .0200.
(e) Approval indicates that all requirements have been met.
History Note: Authority G.S. 143B‑153;
Eff. January 1, 1985;
Amended Eff. April 1, 2001; February 1, 1996; July 1, 1990.
10A ncac 10 .0702 APPROVAL AND CONTINUED PARTICIPATION
IN THE SUBSIDIZED CHILD CARE PROGRAM
(a) Any family child care home approved for participation
in the subsidized child care program shall continue to be eligible for as long
as the home maintains compliance with all of the requirements set forth in this
Subchapter.
(b) When a home is found to be out of compliance with any
requirement for participation, the Division shall set a time limit for
compliance. The Division shall base the time limit on the length of time
projected to be needed for the home to comply with the requirement. If the
home fails to comply within the set time limit, approval shall be terminated.
(c) Upon request for review by a local, state or federal
agency representative, the operator of a family child care home shall provide
records pertaining to his or her participation in the state's subsidized child
care program.
History Note: Authority G.S. 143B‑153(2a);
Eff. January 1, 1988;
Amended Eff. April 1, 2001; February 1, 1996.
10A NCAC 10 .0703 APPEALS
History Note: Authority G.S. 143B-153(2a); 150B-23;
Eff. January 1, 1988;
Amended Eff. April 1, 2001; July 1, 1990;
Repealed Eff. December 1, 2011.
SECTION .0800 - REQUIREMENTS FOR NONLICENSED CHILD CARE HOMEs
10A NCAC 10 .0801 DEFINITION
(a) "Nonlicensed" child care home
means an arrangement whereby child care is provided in a home that is not
subject to licensure pursuant to G.S. 110-86(2) - (3) or the requirements of
G.S. 110-106. Payment for care in the child's home by a member of the
household shall be restricted to household members other than the child's
parents, responsible adult, or other members of the child's income unit as
defined in 10A NCAC 10 .1002. Grandparents, aunts, and uncles, including step
and great relationships, are exempt from meeting the requirements in Rules
.0809 - .0810 of this Section, except that criminal history records check
requirements in G.S. 110-90.2 shall apply.
(b) The rules in this Chapter shall apply
only to those nonlicensed homes as defined in this Rule which voluntarily
choose to participate in the state subsidized child care program.
History Note: Authority G.S. 110-90.2; 143B-153(2a);
Eff. February 1, 1993;
Amended Eff. April 1, 2001.
10A NCAC 10 .0802 DIVISION RESPONSIBILITY
(a) The Division, as defined in 10A NCAC 10
.0102, is responsible for the administration of the requirements and procedures
for approving nonlicensed child care homes in which child care funds
administered by the local purchasing agency are used to subsidize the child
care cost for children of families eligible for assistance.
(b) The number of nonlicensed child care home
arrangements that shall be visited by the Division for the purpose of
evaluating compliance with the requirements for participation in the subsidized
child care program shall be included in the monitoring plan developed annually
by the Division.
(c) All complaints registered against
nonlicensed child care homes shall be investigated by the Division. The
investigation may include an on-site visit by an authorized representative of
the Department.
(d) Documentation of substantiated complaints
shall be available for parents to examine.
History Note: Authority G.S. 143B-153(2a);
Eff. February 1, 1993;
Amended Eff. April 1, 2001; February 1, 1996.
10A NCAC 10 .0803 LOCAL PURCHASING AGENCY RESPONSIBILITY
(a) The local purchasing agency shall review the
application and parent/responsible adult-provider self-check list and shall
determine compliance with the rules adopted by the Social Services Commission
for all nonlicensed child care homes from which care is purchased with funds
administered by the local purchasing agency.
(b) The county director of social services shall deny or
revoke approval of an arrangement where the caregiver or an individual who
resides in the home where care is provided was found by the county director to
be the perpetrator of abuse or neglect in accordance with G.S. 7B-302 or G.S.
108A, Article 6, and where approval of the arrangement poses a threat to the
child's health or safety. Approval shall also be denied or revoked as
described under the standard set forth in this Rule when an investigation of
abuse or neglect is currently in process. Information regarding the fact that
the prospective provider or individual in the home has been reported or
investigated for alleged abuse or neglect shall not be given to the parent or
any other individual unless such information is a matter of public record.
(c) The local purchasing agency shall deny or revoke
approval of an arrangement when the nonlicensed caregiver or an individual who
resides in the home where care is provided is named on the Responsible
Individuals List (RIL) as defined in G.S. 7B-311(b).
History Note: Authority G.S. 143B-153(2a); 45 C.F.R.
98.41; 45 C.F.R. 255.4(c); 45 C.F.R. 257.41;
Eff. February 1, 1993;
Amended Eff. December 1, 2011; April 1, 2001.
10A NCAC 10 .0804 INITIAL APPROVAL
(a) Approval indicates that all applicable requirements
have been met.
(b) Temporary approval may be issued when an arrangement
does not comply with all requirements but is expected to meet them within a
specified period. Temporary approval for enrollment may be issued for a
limited period of time not to exceed 30 days. When a provider requests that
temporary approval be extended, and provides evidence or documentation that
compliance can be achieved within a mutually agreed upon time period, the
purchasing agency may extend the 30 day period.
(c) When a provider fails to achieve compliance before the
end of the specified time period described in Paragraph (b) of this Rule,
approval may be denied.
(d) Initial approval shall not be issued pending results
from criminal records checks of the provider and other household members unless
there is no other care arrangement available for the child and local criminal
records checks have been submitted to the local purchasing agency.
History Note: Authority G.S. 143B-153(2a);
Eff. February 1, 1993;
Amended Eff. April 1, 2001.
10A NCAC 10 .0805 MAINTAINING APPROVAL
(a) When a provider is found to be out of compliance at any
time with any requirement for participation, the local purchasing agency or the
Division shall set a specified time limit for compliance. If the provider fails
to comply within the specified time limit, approval may be terminated.
(b) Each nonlicensed child care home shall be evaluated for
compliance with the requirements for participation in the subsidized child care
program annually as described in Rule .0803 in this Section.
(c) Upon request for review by a local, state, or federal
agency representative, the operator of a nonlicensed child care home shall
provide records pertaining to his or her participation in the state's
subsidized child care program.
History Note: Authority G.S. 143B-153(2a);
Eff. February 1, 1993;
Amended Eff. April 1, 2001; February 1, 1996.
10A NCAC 10 .0806 PAYMENT REQUIREMENTS
(a) Any nonlicensed child care home that wishes to
participate in the state subsidized child care program, as defined in 10A NCAC
10 .0102, shall comply with the requirements for nonlicensed child care homes codified
in Rules .0809, .0810 and .0811 of this Subchapter, except as specified in Rule
.0801 of this Section.
(b) In order to receive payment for subsidized child care,
any nonlicensed child care home arrangement must be enrolled in the subsidized
child care program and be in compliance with all applicable requirements of
this Subchapter.
(c) Each nonlicensed child care home shall submit
appropriate information to enable the local purchasing agency to establish a
payment rate for the home in accordance with the rate setting policies in the
annual appropriations act and codified in Section .0200.
History Note: Authority G.S. 143B-153(2a);
Eff. February 1, 1993;
Amended Eff. April 1, 2001.
10A NCAC 10 .0807 APPEALS
Any nonlicensed child care home desiring to appeal a
decision by the local purchasing agency shall follow the appeals procedures for
public assistance programs pursuant to G.S. 108A-79 and any subsequent
amendments. The local purchasing agency shall provide the nonlicensed child
care home provider or applicant with information about the procedures for such
an appeal.
History Note: Authority G.S. 143B-153(2a);
Eff. February 1, 1993;
Amended Eff. April 1, 2001.
10A NCAC 10 .0808 APPLICABILITY OF RULES
The rules of this Subchapter, including any
subsequent amendments, shall also apply to nonlicensed home recipients of Child
Care and Development Fund child care services funds administered by the
Department of Health and Human Services.
History Note: Authority G.S. 150B‑21.6; 45 C.F.R.
98.11(b); 45 C.F.R. 98.40;
Eff. February 1, 1993;
Amended Eff. April 1, 2001.
10A NCAC 10 .0809 PARENT‑PROVIDER CHECKLIST
Prior to approval, each provider shall submit a checklist to
the local purchasing agency that indicates compliance with all applicable
requirements. The checklist shall be completed and signed by the provider and
the parent or responsible adult.
History Note: Authority G.S. 143B‑153(2a);
Eff. February 1, 1993;
Amended Eff. April 1, 2001.
10a NCAC 10 .0810 HEALTH AND SAFETY STANDARDS
Each nonlicensed child care home shall comply with the
following requirements in order to maintain a safe, healthy and sanitary
environment for children:
(1) A health and emergency information form completed and
signed by the child's parent or guardian shall be on file for each child who
attends. The completed form shall be on file on the first day the child
attends with the exception of the child's immunization record which must be
completed within 30 days after the first day the child attends. A recommended
form is available from the Division. However, the provider may use another
form, provided that form includes the following information:
(a) the child's name, address, and date of
birth;
(b) the names of individuals to whom the child
may be released;
(c) the general status of the child's health;
(d) any allergies or restrictions on the child's
participation in activities with specific instructions from the child's parent
or health professional;
(e) the names and phone numbers of persons to be
contacted in an emergency situation;
(f) the name and phone number of the child's
health provider and preferred hospital;
(g) authorization for the provider to administer
specified medication according to the parent's instructions, if the parent so
desires;
(h) authorization for the provider to seek
emergency medical care in the parent's absence;
(i) a record of the child's immunizations as
required pursuant to G.S. 130A‑152.
(2) The parent and provider shall discuss and agree
upon the methods of discipline to be used with each child. The use of corporal
punishment by the nonlicensed home operator, substitute caregiver, or any other
person in the home, is prohibited except as allowed in G.S. 110-101.1. No
child shall ever be placed in a locked or closed room, closet, or box.
(3) All areas used by the children, indoors and
outdoors, shall be kept clean and orderly and free of items which are hazardous
to children. Hazardous materials such as combustibles, medications, and
cleaning supplies shall be kept in locked storage or stored out of the reach of
children. Firearms and ammunition shall be kept separate and both shall be kept
in locked storage. Any in-ground pools on the premises shall be enclosed by a
fence four feet high to prevent chance access by children. Access to
above-ground pools on the premises shall be prevented by locking and securing
the ladder in a place or storing the ladder in a place inaccessible to the
children.
(4) First‑aid supplies shall be kept in a place
easily accessible to the provider but out of the reach of children.
(5) The nonlicensed home provider shall have access to
a working telephone in case of emergency. A written plan shall be developed
that describes how the provider will access emergency assistance. Emergency
phone numbers shall be readily available.
(6) To assure the safety of children whenever they are
transported, the provider, or any other transportation provider, shall comply
with all applicable state and federal laws concerning the transportation of
passengers. All children, regardless of age or location in the vehicle, shall
be restrained by individual seat belts or child restraint devices. Children
shall never be left in a vehicle unattended by an adult.
(7) Garbage shall be stored in waterproof containers
with tight fitting covers.
(8) The provider shall have sanitary toileting
facilities, and sanitary diaper changing and handwashing facilities.
(9) Soiled diapers shall be placed in a covered leak‑proof
container which is emptied and cleaned daily.
(10) The provider shall wash his or her hands after
toileting and after diapering each child, and before and after feeding children
or handling food.
(11) The provider shall complete and keep on file the
health self‑questionnaire form provided by the Division.
(12) Each provider shall obtain written proof that she is
free of active tuberculosis prior to initial approval. The results indicating
the individual is free of active tuberculosis shall be obtained within 12
months prior to applying for participation in the subsidized child care
program.
(13) The provider shall serve nutritious meals and snacks
appropriate in amount and type of foods served for the ages of children in
care.
(14) The provider shall provide daily opportunities for
supervised outdoor play or fresh air, weather permitting.
(15) The provider shall assure that the structure in
which the nonlicensed home arrangement is located has clean drinking water, a
sanitary disposal system, weather‑tight construction, and is otherwise
safe for human habitation. Indoor areas used by children shall be heated in
cool weather and ventilated in warm weather. The nonlicensed home arrangement
shall be free of rodents.
(16) Fuel burning heaters used when the children are in care
shall be properly vented to the outside. Fuel burning heaters, fireplaces,
stoves, and portable electric heaters, when in use, shall have a securely
attached guard.
(17) A battery‑operated smoke detector shall be
installed in the primary caregiving area of each nonlicensed child care home.
(18) The nonlicensed home provider shall refrigerate all
perishable food and beverages in a working refrigerator in good repair.
(19) The provider shall successfully complete a basic
first aid course within three months of beginning participation in this
program. The provider shall renew the basic first aid course every three
years.
(20) The nonlicensed home provider shall submit to the
local purchasing agency criminal record check information required in 10A NCAC
09 .2704, for himself or herself and for any member of the household who is
over 15 years of age and present when children are in care, within five working
days of applying to participate in the subsidized child care program.
History Note: Authority G.S. 110-90.2(a)(2); 143B‑153(2a);
Eff. February 1, 1993;
Amended Eff. April 1, 2001; February 1, 1996; February 1, 1994.
10A NCAC 10 .0811 PROVIDER REQUIREMENTS
(a) Each provider shall ensure that the parent or adult
legally responsible for the child has unlimited access to his or her child and
to the provider during the hours care is provided.
(b) No person shall be permitted to participate as a child
care provider in the subsidized child care program:
(1) who has been convicted of a crime involving
child abuse, child neglect, or moral turpitude;
(2) who is an habitually excessive user of
alcohol;
(3) who illegally uses narcotics or other
impairing drugs;
(4) who is mentally or emotionally impaired to
an extent that may be injurious to children;
(5) who the Division has disqualified based on
the provider's criminal history; or
(6) when the Division has disqualified an individual
residing in the provider’s home based on the household member's criminal
history.
(c) The provider shall be at least 18 years of age.
History Note: Authority G.S. 143B‑153(2a);
Eff. February 1, 1993;
Amended Eff. April 1, 2001.
SECTION .0900 ‑ GENERAL POLICIES FOR PROVISION OF
SUBSIDIZED CHILD CARE SERVICES
10A NCAC 10 .0901 SCOPE
The rules of this Subchapter set forth general
policies governing conditions for the provision of subsidized child care
services under the funding sources administered by the Division. General
policies include methods of service provision, definition of the service, and
eligibility criteria.
History Note: Authority G.S. 143B‑153;
Eff. July 1, 1983;
Amended Eff. April 1, 2001; February 1, 1996; July 1, 1990.
10A NCAC 10 .0902 METHODS OF SERVICE PROVISION
(a) Child care services may be provided directly by a
Department of Health and Human Services agency or the county departments of
social services or may be provided through contractual arrangement.
(b) The service must be provided in child care facilities
or arrangements that meet rules adopted by the Social Services Commission.
History Note: Authority G.S. 143B‑153;
Eff. July 1, 1983;
Amended Eff. April 1, 2001.
10A NCAC 10 .0903 DEFINITION OF SERVICE
(a) Primary Service. Child care services means the
provision of protection, care and developmental experiences to children ages
birth to 18 years, for a portion of a day but less than 24 hours, in the
child's own home, in the home of a caregiver, or in a child care center. Each
type of care arrangement shall meet all state and federal standards applicable
to such arrangements. Services include providing information to families and
the community about what constitutes a good child care experience and assisting
eligible families as needed with the cost of purchasing the child care service
consistent with state policies. In addition, transportation may be included in
child care services. For each type of care arrangement, the equipment and
materials necessary to carry out the daily program of activities shall be
included in the services provided.
(b) Component. Transportation, when needed and not
otherwise available, shall be provided to access child care programs for
persons receiving services in conjunction with protective services.
Transportation, when needed and not otherwise available, may be provided to
access child care services for other persons who are eligible for child care
services.
History Note: Authority G.S. 143B‑153;
Eff. July 1, 1983;
Amended Eff. April 1, 2001; February 1, 1996.
10A NCAC 10 .0904 OPTIONAL PROVISION OF SERVICES
(a) Notwithstanding other rules in this Chapter, child day
care services may be provided to children in counties receiving Smart Start
funds authorized by G.S. 143B, Part 10B of Article 3, provided that the child
care services are included in the local partnership's approved Smart Start
plan.
(b) When the availability of funding is less than the
amount needed to serve all eligible children, the local agency responsible for
determining child eligibility for subsidized child care services may establish
the priority for serving families. The order of priority shall be stated in
writing and made available to applicants for child care assistance.
History Note: Authority G.S. 143B‑153;
Eff. July 1, 1983;
Amended Eff. April 1, 2001; March 1, 1996; February 1,
1994; July 1, 1990.
10A NCAC 10 .0905 SUPPORT TO EMPLOYMENT: TRAINING FOR
EMPLOYMENT
(a) Child care services shall be provided to support
employment of the child's parents or responsible adult.
(b) Child care services shall be provided to support
training leading to employment of the child's parents or responsible adult.
(c) Where a parent or responsible adult remains in the home
and is capable of providing care for the child, child care services shall not
be provided as a support for employment or training. Where it is determined
that such parent is incapable of providing care for the child, the reasons for
this determination shall be documented in the client record.
(d) Child care services may be provided when the parent or
responsible adult is engaged in gainful employment on either a full‑time
or part‑time basis.
(e) Where the parent or responsible adult is temporarily
absent from work with arrangements to continue the same employment, child care
services shall continue for at least 30 days. Where an absence from work
extends beyond 30 days, the agency responsible for determining eligibility
shall determine on the basis of individual circumstances whether child care
shall continue beyond that time period. Where child care is continued beyond
30 days, the reasons for such extension shall be documented in the client's
record.
(f) Where a parent is unemployed but is seeking employment,
child care services shall be provided for at least 30 days if the parent is
already receiving subsidized child care services or the parent or responsible
adult is enrolled in a job search activity as part of an approved
employment/training plan. Continuation of the service may be extended if the
agency determines such extension is warranted, provided the reason for the
extension is documented in the client's record.
(g) For purposes of this Rule, training leading to
employment shall include the following:
(1) continuation of high school within the
school system;
(2) basic education or a high school education
or its equivalent in community colleges or technical institutes; and
(3) post secondary education or skills
training, up to a maximum of two years enrollment.
History Note: Authority G.S. 143B‑153;
Eff. July 1, 1983;
Amended Eff. April 1, 2001; March 1, 1996; July 1, 1990.
10A NCAC 10 .0906 SUPPORT FOR PROTECTIVE AND CHILD
WELFARE SERVICES
(a) Child care services shall be provided when needed to
enable a child to remain in his own home when receiving protective services for
children. The child must be receiving protective services through the local
department of social services pursuant to G.S. 7B.
(b) Child care services shall be provided to children who
need child care as a support to Child Welfare Services. Child Welfare Services
means the protection from abuse, neglect, or dependency; or support to the
provision of a safe permanent home as described in G.S. 7B-101; G.S. 7B-300;
G.S. 48-1-101; G.S. 108A-14 (11) and (12); G.S. 108A-48; 10A NCAC 70A; and 10A
NCAC 70B.
History Note: Authority G.S. 143B‑153;
Eff. July 1, 1983;
Amended Eff. April 1, 2001.
10A NCAC 10 .0907 PROMOTE CHILD'S DEVELOPMENT
(a) Child care services shall be provided to
a child whose emotional, cognitive, social or physical development is delayed
or is at risk of being delayed.
(b) This service may be provided by any
approved center or home which meets the child's need for developmental care.
History Note: Authority G.S. 143B‑153;
Eff. July 1, 1983;
Amended Eff. April 1, 2001; July 1, 1990.
10A NCAC 10 .0908 LIMITATIONS
(a) Child care services as a support for protective
services shall not be provided to children living in foster care arrangements.
(b) Child care services as a support for training leading
to employment for the parent or responsible adult shall not be provided when
the parent is participating in graduate or post‑graduate studies.
(c) Child care services are limited to a total of two years
when the parent or responsible adult is enrolled in a post-secondary degree
program.
History Note: Authority G.S. 143B‑153;
Eff. July 1, 1983;
Amended Eff. April 1, 2001; February 1, 1996; July 1, 1990.
10A NCAC 10 .0909 PARENTAL FREEDOM OF CHOICE
(a) Parents receiving assistance for their children through
the subsidized child care program shall choose any child care provider,
approved for participation in the subsidized child care program under Sections
.0600, .0700, or .0800 of these Rules, to provide child care services for their
eligible children. The parent's choice of provider shall be accepted when
there is space available in the facility and the child's enrollment will not
violate the provider's licensed capacity.
(b) Purchasing agencies administering funds through the
subsidized child care program shall notify parents applying for participation
in the program of their right to choose the approved child care provider which
will provide child care services to their eligible children.
History Note: Authority G.S. 143B‑153;
Eff. July 1, 1991;
Amended Eff. April 1, 2001.
10A NCAC 10 .0910 DEFINITION OF SPECIAL NEEDS CHILD
(a) As used in this Chapter a special needs child is one
who qualifies under one or more of the criteria listed in this Paragraph:
(1) a child who is determined by the Division
of Public Health, Children's Developmental Service Agency, to be
developmentally delayed or have an established condition pursuant to 10A NCAC
43G .0110; including subsequent amendments; or
(2) a child who is determined by the local
educational agency (LEA) to have a disability as defined in G.S. 115C-106.3.
A copy of 10A NCAC 43G .0110 may be obtained from the Office
of Administrative Hearings, 6714 Mail Service Center, Raleigh, North Carolina,
27699-6714, (919) 431-3000.
(b) The agency determining eligibility for the services
shall have on file an Individualized Education Program (IEP) as defined in G.S.
115C-106.3, an Individualized Family Service Plan (IFSP) as defined in 10A NCAC
27G .0903, a Section 504 Plan as defined in 29 USC 794 or a Person Centered
Plan (PCP) as defined in 10A NCAC 70G .0402 to document the "special
need" or "disability".
(c) Eligibility for the supplemental rate is contingent
upon the provider's compliance with the activities designated for the provider
in the child's individualized plan.
History Note: Authority G.S. 143B-153(2a);
Eff. December 1, 1992;
Amended Eff. December 1, 2011; April 1, 2001; February 1,
1996.
SECTION .1000 ‑ ELIGIBILITY FOR SERVICES
10A NCAC 10 .1001 BASIC ELIGIBILITY CRITERIA
In addition to the requirements of 10A NCAC .0900, in order
for an individual to be determined eligible to receive subsidized child care
services, it must be established that he or she is eligible on the basis of
income eligible status, unless the service is available without regard to
income as referenced in Rule .1004 of this Section.
History Note: Authority G.S. 143B‑153;
Eff. July 1, 1983;
Amended Eff. April 1, 2001; February 1, 1996; October 1, 1991; July 1, 1990.
10A NCAC 10 .1002 INCOME ELIGIBLE STATUS
(a) For the purpose of the rules in this Subchapter, the
term "income unit" shall apply to persons who reside in the same
household and who, according to North Carolina law, are responsible for the
financial support of the individual whose eligibility for child care services
is being determined. Also for the purpose of determining eligibility for child
care services, the terms "income unit" and "family" are
used interchangeably in the rules in this Subchapter.
(b) When the amount of income available to an individual is
a condition of eligibility for child care services, it is necessary to
determine the number of persons in the individual's income unit and the amount
of the gross income available to the income unit. The number of individuals in
the income unit is referred to as the "income unit size" or
"family size". These terms are used interchangeably in the rules in
this Subchapter. The total amount of the income used to determine child care
eligibility is referred to as the "gross income of the income unit"
or "family income". These terms are used interchangeably in the
rules in this Subchapter.
(c) Child care services may be provided to individuals
other than those described in 10A NCAC 10 .0906 and in Rule .1004 of this
Section provided the gross annual income of the individual's income unit does
not exceed the state's maximum income eligibility limit (as defined in Rule
.1003 of this Section) for the number of persons in that income unit.
(d) The following are defined as separate income units for
the purposes of determining eligibility and client fees for child care
services:
(1) Biological and adoptive parents and their
minor children. A step-parent shall be included in the income unit with
his/her spouse when the children in need of care include their biological or
adoptive child and step-siblings;
(2) A minor parent and his or her children;
(3) Each adult whether related or unrelated,
other than spouses; and
(4) Each child living with anyone other than
their biological or adoptive parents.
(e) Income to be considered when computing the gross income
of the income unit is as follows:
(1) Gross earned wages or salary (earnings
received for work performed as an employee, including wages, salary,
commissions, tips, piece-rate payments, and cash bonuses earned, before any
deductions are made for taxes, bonds, pensions, union dues, etc.);
(2) Adjusted gross income from taxable
self-employment income;
(3) Social Security benefits (includes Social
Security pensions, survivors' benefits and permanent disability insurance
payments);
(4) Dividends, interest (on savings or bonds),
income from estates or trusts, royalties, adjusted gross rental income on
houses, stores or other property;
(5) Pensions and annuities paid directly by an
employer or union or through an insurance company;
(6) Workers' compensation for injuries incurred
at work.;
(7) Unemployment insurance benefits;
(8) Alimony (includes direct and indirect payments,
such as rent and utility payments);
(9) Child support, direct or indirect;
(10) Pensions paid to veterans or survivors of
deceased veterans;
(11) On-the-Job Training (OJT) payments;
(12) Job Training Partnership Act (JTPA) payments
made to an adult;
(13) AmeriCorps stipend (living allowance);
(14) Armed Forces pay (only the amounts taxable,
such as base pay);
(15) Work release payments;
(16) Cherokee Tribal Per Capita Income paid to
adult family members;
(17) Work-study payments, if the income is from a
program not administered under Title IV of the Higher Education Act or the
Bureau of Indian Affairs; and
(18) Recurring cash contributions paid directly
to the parent.
(f) The following sources of income shall not be counted
when computing the gross income of the income unit:
(1) Work First Family Assistance;
(2) Supplemental Security Income (SSI);
(3) Lump sum payments (e.g. Social Security
benefits, workers' compensation, alimony, veteran's benefits, HUD);
(4) Foster care assistance payments;
(5) Adoption Assistance payments;
(6) Payments/trust funds under the Indian
Claims Commission;
(7) Payments from the Alaska Native Claims
Settlement Act;
(8) Income from sale of personal assets
(stocks, bonds, house, car, and insurance);
(9) Bank withdrawals;
(10) Money borrowed;
(11) Tax refunds;
(12) Gifts or contributions;
(13) Other in-kind contributions from non-legally
responsible adults;
(14) Emergency Assistance, Low Income Energy
Assistance Program, Crisis Intervention Program, General Assistance, or
CP&L Share Program payments;
(15) Section VIII housing subsidy;
(16) Capital gains;
(17) Value of food stamp benefits allotted under
the Food Stamp Act of 1977;
(18) Free and reduced lunch program;
(19) Any and all food subsidy programs;
(20) Relocation/Acquisition Act payments;
(21) Earnings of a dependent child under 18 years
of age, unless a minor parent of a child needing child care;
(22) Loans, grants, scholarships, money received
through job training, Pell or Carl Perkins grants;
(23) Home produce utilized for household
consumption;
(24) Volunteers in Service to America (VISTA)
earnings;
(25) Payments received as Earned Income Tax
Credits or Dependent Care Credits;
(26) All subsidized housing and housing
allotments, including military housing allotments. If rent is provided by an
organization on a regular basis, it shall be counted as income;
(27) Money received from an employer as an
employee benefit for child care; and
(28) Work-study payments, if the income is from
the College Work-Study Program administered under Title IV of the Higher
Education Act or the Bureau of Indian Affairs. (Likewise, if the income from
college work-study goes directly to the college, it is not counted as income.)
History Note: Authority G.S. 143B‑153;
Eff. July 1, 1983;
Amended Eff. April 1, 2001; February 1, 1996; July 1, 1992; October 1, 1991.
10A NCAC 10 .1003 INCOME ELIGIBILITY LEVELS
The maximum gross annual incomes for eligibility for
subsidized child day care services, adjusted for family size, shall be
established by the annual appropriations act.
History Note: Authority G.S. 143B‑153;
Eff. July 1, 1983;
Amended Eff. April 1, 2001; July 1, 1992.
10A ncac 10 .1004 WITHOUT REGARD TO INCOME
Child care services shall be provided without regard to
income for:
(1) children described in 10A NCAC 10 .0906(b)
who need child care services as a support for Child Welfare Services;
(2) children receiving foster care services who
are in the custody of the county department of social services and are residing
in licensed foster care homes or in the care of adults other than their
parents; and
(3) children described in 10A NCAC 10 .0906(a)
who need child care in conjunction with protective services.
History Note: Authority G.S. 143B‑153(2a);
Eff. July 1, 1983;
Amended Eff. April 1, 2001; February 1, 1996; February 1, 1986.
10A NCAC 10 .1005 RESPONSIBILITY FOR ELIGIBILITY
DETERMINATION
Responsibility for eligibility determination,
redetermination, and case management for child care services funded by
subsidized child care services funding shall rest with those agencies authorized
by the Secretary of the Department of Health and Human Services.
History Note: Authority G.S. 143B‑153;
Eff. July 1, 1983;
Amended Eff. April 1, 2001; February 1, 1996.
10A NCAC 10 .1006 DETERMINATION OF INCOME ELIGIBILITY
An individual that applies for child care services shall
provide to the local purchasing agency verification of the amount and sources
of his or her countable income. The amount and source of income shall be
verified by one of the following:
(1) A copy of a source document; or
(2) A written statement by the social worker describing
either the source document that was reviewed to verify the income or a
telephone conversation that confirmed the required information or
(3) Identification of an existing agency record
confirming the required information.
History Note: Authority G.S. 143B‑153;
Eff. July 1, 1983;
Amended Eff. April 1, 2001.
10A ncac 10 .1007 REQUIREMENTS FOR DETERMINATION AND
REDETERMINATION OF ELIGIBILITY
The Division shall establish the requirements for
application and eligibility determination and redetermination for child care
services. Eligibility shall be determined initially in accordance with 10A
NCAC 10 .0900 and .1000, and annually thereafter unless a change occurs that
impacts eligibility.
History Note: Authority G.S. 143B‑153;
Eff. July 1, 1983;
Amended Eff. April 1, 2001.
SECTION .1100 ‑ CLIENT FEES FOR CHILD CARE SERVICES
10A NCAC 10 .1101 GENERAL FEE POLICY
(a) No fees shall be charged to the client when child care
services are provided to individuals in the following circumstances:
(1) children receiving child care services in
conjunction with protective services as described in 10A NCAC 10 .0906(a);
(2) when child care services are provided as a
support to a child receiving Child Welfare Services as described in 10A NCAC 10
.0906(b); and
(3) when a child with no income is living with
someone other than his or her biological or adoptive parent or is living with
someone who does not have court‑ordered financial responsibility.
(b) Except as provided for in
Paragraph (a) of this Rule, the client shall be assessed a fee for child care
services.
History Note: Authority G.S. 143B‑153(2a);
Eff. July 1, 1983;
Amended Eff. April 1, 2001; July 1, 1992; July 1, 1990; February 1, 1986.
10A NCAC 10 .1102 AMOUNT and collection OF client FEES
(a) The amount of the fees charged to the client shall be
in accordance with annual appropriations act.
(b) Fee charges to the client may be disregarded when the
total amount due is less than five dollars ($5.00) per month.
(c) Collection of fees assessed to the client shall be the
responsibility of the child care provider.
History Note: Authority G.S. 143B‑153;
Eff. July 1, 1983;
Amended Eff. April 1, 2001; July 1, 1990.
10A ncac 10 .1103 ADJUSTMENTS IN FEES
(a) If family medical expenses exceed 10 percent of the
family's gross income in any eligibility period, the family's fee shall be
reassessed based on the family's adjusted income. The family's income shall be
adjusted by deducting the amount of medical expenses that exceed 10 percent of
the family's gross income.
(b) When the approved care plan is for less than full‑day
care, the assessed fee for the service shall be adjusted by the appropriate
percentage relative to the approved care plan.
History Note: Authority G.S. 143B‑153;
Eff. July 1, 1983;
Amended Eff. April 1, 2001; December 1, 1992; July 1, 1992; July 1, 1990.
