340:40-13-5. Child care provider contracts
(a) Criteria.A child care facility owner and the Oklahoma Department of Human Services (DHS) director or his or her designee must sign Form 08CC001E, Child Care Provider Contract, before DHS pays for out-of-home child care services.By signing the contract, the provider agrees to not take into account a person's race, color, religion, sex, national origin, or disability in deciding which children to accept in the child care program or in how services are provided to them.Age may be a factor only to the extent that certain services are designed for a particular age group.
(1) Written complaints of noncompliance with the assurance in (a) of this Section may be made to the DHS Director or to the Secretary of Health and Human Services, Washington, D.C., 20201.
(2) Local Child Care Services (CCS) licensing staff provides initial contract information for child care facilities.The provider contacts Adult and Family Services (AFS), Child Care Subsidy staff to request a contract.
(3) Child care contracts are valid for a maximum of one year.Contracts may be renewed at the sole option of DHS for successive one year terms per (g) of this Section.
(b) License and star status for child care centers and homes.DHS does not contract with child care providers located out-of-state.Child care providers may only obtain a DHS contract after they are licensed or permitted.
(1) A child care center provider requesting a contract must have a license or permit and a one plus or higher star status.
(2) A child care home provider requesting a contract must have a license or a permit.
(A) When licensed, the child care home provider must have a star status of one star or higher.
(B) When on permit, the child care home provider must have a star status of one star plus or higher.
(c) Procedure for obtaining child care contracts.The procedures in (1) through (5) of this subsection are used to obtain child care contracts.
(1) CSS licensing staff gives the child care provider DHS Publication 07-12, "Obtaining a Contract with OKDHS for Child Care Subsidy Payments" and instructs the provider to contact AFS Child Care Subsidy to obtain a DHS child care contract. • 1
(2) When contacted by the owner of a child care facility, AFS Child Care Subsidy staff explains to the owner or responsible person authorized to sign the contract that he or she must provide documents listed in (A) through (D) of this paragraph before signing a contract.Documents include a copy of:
(A) the owner's Social Security card;
(B) a document from the Internal Revenue Service verifying the employer identification number for a child care center provider and a home provider who is not a sole proprietor;
(C) the certificate of completion of the required online "Orientation to Child Care Subsidy Contracts" training; and • 1
(D) ownership verification. • 1
(3) Once the owner provides the required documents, AFS Child Care Subsidy staff sends Form 08CC001E to the provider and explains that the earliest date a contract is valid is the date of approval by the DHS Director or designee.
(4) The owner or person authorized to sign the contract signs and returns the contract to AFS Child Care Subsidy.
(5) AFS Child Care Subsidy staff processes the contract request for approval or denial.
(A) When approved, AFS Child Care Subsidy staff assigns a contract number and sends a copy of the signed contract to the provider.
(B) When denied, AFS Child Care Subsidy staff sends a letter to the provider.
(d) Changes the provider must report.Form 08CC001E informs child care providers of changes they must report to AFS Child Care Subsidy no less than 30-calendar days prior to the effective date of any changes.When the provider fails to report the anticipated change timely and a new contract is needed, a gap may occur in the child care subsidy payment to the provider.Changes that must be reported include:
(1) collaborations or agreements;
(2) change of ownership;
(3) change of legal business entity;
(4) change in facility status;
(5) legal name change of the business;
(6) plan to stop caring for children;
(7) reduction of star status;
(8) changes in the responsible person authorized to sign the contract or a legal name change of that person;
(9) disqualification, suspension, or debarment from the Child and Adult Food Care Program or any other federal program;
(10) when a person who has ownership or an employment relationship with the provider is convicted of a criminal offense; and
(11) provider change of address.
(e) Changes that require a new contract.A new contract is required when changes listed in (1) through (3) of this subsection occur. • 2
(1) Change in ownership.A change in ownership occurs when the owner of a child care center or child care home changes.
(2) Change of legal business entity.A change of legal business entity is a change from one legal business entity type to another.Refer to Appendix L-7, Ownership Proof Chart, for a list of legal business entity types.
(3) Change in facility status.A change in facility status occurs when a child care home changes to a child care center or a child care center changes to a child care home.
(f) Providing care at a different site than is authorized.When the child care provider signs the child care contract, he or she agrees to provide care only at the physical address designated in the contract.
(1) After obtaining prior written approval from AFS Child Care Subsidy staff, a child care center provider owning more than one child care center may be authorized to move children receiving subsidized child care benefits and the point-of-service (POS) machine to an alternate center for a designated period of time.
(2) AFS Child Care Subsidy staff may provide written approval when (A) through (E) of this paragraph are met.
(A) The same owner or legal business entity operates the alternate site.
(B) The alternate site is licensed and contracted at the same star level and the provider has adequate licensed capacity at the alternate site.
(C) There is a legitimate business reason for providing care in another location.
(D) The provider advises AFS Child Care Subsidy staff how he or she is ensuring parents are aware their children are being cared for at a different location.
(E) The provider advises AFS Child Care Subsidy staff of the date of expected return to the contracted site.
(g) Child care contract renewal.Child care contracts may be renewed at the sole option of DHS for successive one-year terms, under the same terms and conditions, unless DHS makes changes to Form 08CC001E.The child care contract is not renewed when:
(1) the provider or DHS gives written notice of its intent not to renew to the other party at least 30-calendar days prior to the expiration of the previous contract term; or
(2) during the contract renewal period, the provider fails to:
(A) complete all required contract training; or
(B) provide any other information or documents requested.
(h) Contract violations.By signing the child care provider contract, Form 08CC001E, the child care provider agrees to abide by the terms of the contract.When local county staff becomes aware a provider is violating the terms of the contract, he or she emails the circumstances to AFS Child Care Subsidy staff. • 3Local county staff may also complete Form 19MP001E, Referral Form, to report the violation to the Office of Inspector General.Examples of contract violations include, but are not limited to:
(1) discriminating against persons seeking services by charging a discriminatory rate or violating a person's rights as listed in the Civil Rights Act of 1964 as amended, the Rehabilitation Act of 1973 as amended, or the Americans with Disabilities Act of 1990, as amended;
(2) failing to maintain a drug-free workplace;
(3) operating over licensed capacity;
(4) possessing or swiping a client's electronic benefit transfer (EBT) card;
(5) knowing a client's EBT personal identification number (PIN);
(6) refusing unlimited access by a parent or caretaker to the areas of the facility used for child care during the hours of operation;
(7) failing to ensure the parent or caretaker records accurate time and attendance information on the POS machine.During the school year when a child is approved for a blended unit type or any time part-time care is approved, the parent or caretaker is only required to enter one swipe per day to record attendance because the number or hours the child attends does not affect provider payment;
(8) charging a client receiving subsidized child care more than the DHS rate for days and hours authorized by DHS; • 4
(9) charging a client receiving subsidized child care an allowable fee when not charged to non-DHS participants; • 5
(10) failing to post all of the facility's rates and fees;
(11) charging or requiring a client to swipe attendance for days and hours outside of client's child care plan when those days and hours are a requirement of the provider, not a choice of the client; • 4
(12) failing to advise and provide DHS a completed copy of any collaboration or agreement the provider enters into within 30-calendar days of signing the collaboration or agreement.This includes agreements with Head Start, Early Head Start, public schools, or other programs receiving federal or state funding;
(13) claiming or receiving payment from DHS for any hours of care the provider is not charging all parents for care because provider receives federal or state funds for those hours.Refer to Oklahoma Administrative Code (OAC) 340:40-5-1(7) regarding collaborations;
(14) claiming payment for care given for any hours in an unlicensed collaborative classroom;
(15) moving the children from the agreed upon location shown in the contract and claiming for services at the other location without prior, written approval from AFS Child Care Subsidy staff;
(16) moving the POS machine without receiving prior, written approval from AFS Child Care Subsidy staff per subsection (f) of this Section;
(17) failing to inform DHS of a change in facility status, legal business entity, ownership of the business, or the responsible person at least 30-calendar days in advance of the change;
(18) failing to inform DHS in writing within 10-calendar days of any person who has an ownership or controlling interest in, or is an agent or managing employee of the child care business, who was convicted of a criminal offense related to such person's involvement under Titles XVIII, XIX, or XX of the Social Security Act;
(19) failing to allow full access to the facility's premises and personnel to investigate a complaint;
(20) failing to report the income from the child care business within 10-calendar days to his or her AFS worker when receiving benefits;
(21) claiming payment for care given by a home provider for an employee's child.Refer to OAC 340:40-5-1(7);
(22) subcontracting services to another provider; or
(23) breaching the contract signed by the provider with the DHS EBT contractor.
(i) Cancellation of child care provider contracts.AFS Child Care Subsidy staff initiates the cancellation by issuing a notice to the provider.When AFS cancels a contract, all open child care authorizations for the provider close automatically. • 6Contracts may be cancelled:
(1) with cause.The effective date of cancellation is 13-calendar days after AFS Child Care Subsidy staff mails the notice.This allows three-calendar days for mailing time.The notice must contain a reference to the grounds for cancellation including the specific contract provision(s) violated; or
(2) without cause.The effective date of cancellation is 33-calendar days after AFS Child Care Subsidy staff mails the notice.This allows three-calendar days for mailing time.• 7
1.(a) Contracting processes are facilitated by Adult and Family Services (AFS) Child Care Subsidy staff at the State Office.When a child care provider requests a child care contract from county office staff, the provider is directed to contact AFS Child Care Subsidy by emailing CCProviderContracts@okdhs.org.
(b) The date on the certificate of completion must be dated no earlier than 30-calendar days before the date the owner signs the contract.
(c) AFS Child Care Subsidy staff determine what ownership documents are required based on the business entity type.
2.Child Care Services (CCS) and AFS staff work together to avoid or reduce any gap in the child care subsidy payment.A gap in the child care subsidy payment may occur when the new owner does not complete the procedure for obtaining child care contracts at least 30-calendar days prior to the ownership or business entity change.
3.(a) AFS Child Care Subsidy staff evaluates the circumstances and the willingness of the provider to stop the practice.Depending on the circumstances, AFS staff may:
(1) decide no further action is needed;
(2) initiate a corrective action plan;
(3) request that county office staff completes Form 19MP001E, Referral Form, to start an investigation; or
(4) decide to cancel the child care provider's contract.
(b) When AFS Child Care Subsidy staff recommends completion of Form 19MP001E, county staff:
(1) enters as much detail as possible about the violation including the:
(A) name of the person reporting the violation;
(B) content of the allegation; and
(C) phone number for the person reporting the violation; and
(2) attaches any written documentation supporting the allegation.
(c) When a client reports a violation, the client may provide a written statement, instead of completing Form 19MP001E, explaining the circumstances.
4.When the provider requires all children be in attendance by a certain time every morning regardless of the parent's or caretaker's need for care, the provider must not charge the client for those additional hours.
(1) Reasons the provider may give for this requirement include limiting disruptions to program content so all children participate fully in the quality content of the child care program or reducing provider transportation costs.
(2) For example, when the client's work or school schedule does not begin until 11:00 a.m., but the provider requires attendance by 9:00 a.m., the client must swipe attendance by entering a previous in for 11:00 a.m. on the point-of-service machine when the child is picked up at the end of the day.
5.Examples of non-allowable fees are vacation fees or place-holding when a child is absent or termination fees when the child stops attending the facility.
6.When DHS cancels a provider contract, AFS Child Care Subsidy staff sends an email regarding contract cancellation proceedings to:
(2) Finance and Administration Electronic Payment Systems (EPS) Unit;
(3) Office of Inspector General (OIG);
(4) the electronic benefit transfer contractor; and
(5) the Oklahoma State Department of Education, Child Care Food Program.
7.(a) When DHS cancels a contract without cause and the child care facility was recently audited or investigated by DHS OIG, the cancellation letter includes:
(1) a reminder of the OIG audit or investigation and finding that criteria was met for contract cancellation; and
(2) information advising the provider the DHS child care subsidy contract ends 33-calendar days from the date AFS Child Care Subsidy staff mailed the cancellation letter to the provider.
(b) Reasons a contract might be cancelled following an OIG audit or investigation include violations per (h) of this Section.
(c) Additional reasons a provider contract may be cancelled without cause include, but are not limited to, when:
(1) CCS staff revokes the provider's child care license;
(2) persons with previous contract cancellations following an OIG audit or investigation become owners, authorized representatives, or materially involved in the business of the facility;
(3) the provider has an outstanding overpayment debt with DHS as a client or as a provider;
(4) the provider receives benefits as a DHS client and his or her benefits close due to a finding of fraud or willful misrepresentation;
(5) it comes to the attention of AFS Child Care Subsidy staff that a provider was convicted of a felony;
(6) it comes to the attention of AFS Child Care Subsidy staff that a provider was debarred, suspended, disqualified, proposed for debarment, or declared ineligible by any federal department or agency, or convicted of a fraud-related crime;
(7) the provider is convicted of food benefit trafficking;
(8) the provider requests cancellation of the contract;
(9) the ownership of a facility changes;
(10) a one star center provider no longer has open child care authorizations;
(11) the provider commits a contract violation brought to the attention of AFS Child Care Subsidy staff;
(12) the provider shows a history of non-compliance with DHS policies and procedures; or
(13) the provider has not had an active authorization at their child care facility for at least 30-calendar days.