Wisconsin Legislature: DCF 201.04(2h)(c)

d. The child has a special need that is no longer met by the provider.

e. The child has a medical need that cannot be met by the provider.

3. The authorized provider is no longer available to provide child care services due to any of the following:

a. The provider suddenly stops providing child care services.

b. The provider’s regulatory approval has been suspended or revoked.

c. Damage to the provider’s facility has created an unsafe environment for children.

d. Regulatory restrictions on the number of children, hours of operation, or provider-to-child ratios.

4. There is alleged abuse or neglect of the child by the provider, and a complaint has been made to the appropriate certification or licensing agency.

5. Continuing to receive child care from the authorized provider threatens the safety of the parent or child.

6. Other circumstances outside the parent’s control as approved by the department.

(b) The parent notifies the agency of the applicable circumstances in par. (a) within 10 days after the circumstances begin.

(14) New provider effective in current month for sibling. A child care administrative agency may authorize payment for child care by a new provider effective in the current month for the sibling of a child whose circumstances qualify for a hardship authorization under sub. (13) if the sibling attends the same child care provider.

History: EmR1709: emerg. cr., eff. 5-4-17; CR 17-033: cr. Register January 2018 No. 745, eff. 2-1-18; correction in numbering (13) (intro.) made under s. 13.92 (4) (b) 7., Stats., correction in (13) (a) made under s. 35.17, Stats., Register January 2018 No. 745; CR 18-088: r. and recr. (1), am. (2) (c), cr. (2g), (2r), r. and recr. (4) (title), renum. (4) to (4) (a) and am., cr. (4) (b), am. (5) (a), (7) (title), r. and recr. (7) (a) 5., am. (7) (a) 6. a., (10) (a), cr. (10m), am. (11) (a) (title), 1. (intro.), a., 2. (intro.), a., (b), (13) (a) (intro.), 1. a., b., c., 2. (intro.) Register July 2019 No. 763, eff. 8-1-19; correction in (1) (c) 1. made under s. 35.17, Stats., Register July 2019 No. 763; correction in (1) (b) 2. made under s. 35.17, Stats., Register March 2020 No. 771; EmR2110: emerg. cr. (8m), eff. 3-28-21; CR 21-052: cr. (8m) Register December 2021 No. 792, eff. 1-1-22.

DCF 201.04 Payments and overpayments.

(1) General. The child care subsidy in a parent’s account may only be used to compensate a provider that is in compliance with s. DCF 201.038 (1) for child care authorized under s. DCF 201.039 for the child of a parent eligible under s. 49.155 (1m), Stats., and provided within the terms of the provider’s regulation and the parent’s authorization.

(2) Monthly subsidy payments for child care services.

(a) Amount. The amount of a monthly subsidy payment shall be based on the number of hours of child care that an agency authorizes and any of the following that are applicable:

1. For care by a provider licensed under s. 48.65, Stats., the lower of the provider’s child care price or the applicable maximum rate under s. DCF 201.06 (4), minus any copayment required under s. DCF 201.08.

2. For care by a provider certified under s. 48.651, Stats., the applicable rate under s. DCF 201.06 (5), minus any copayment required under s. DCF 201.08.

3. For care at a child care program established or contracted for by a school board under s. 120.13 (14), Stats., the applicable rate under s. DCF 201.06 (6), minus any copayment required under s. DCF 201.08.

(ag) Decreases in the monthly subsidy amount during the 12-month eligibility period. During a parent’s 12-month eligibility period, the amount of a monthly subsidy payment may not be decreased, unless any of the following conditions are met:

1. The parent voluntarily requests fewer hours of subsidized child care.

2. An assessment of the assistance group’s child care needs is required under s. DCF 201.039 (1) (c) and the child care administrative agency issues an authorization for fewer hours.

3. The parent agrees to fewer hours of subsidized child care under s. DCF 201.039 (2g) (b).

4. The parent’s copayment increases due to an increase in the income of the assistance group under s. DCF 201.08 (4) (b) or (c).

(ar) Reduction in provider quality rating. The reduction of a parent’s child care subsidy payment following a reduction in the quality rating of the parent’s provider from a 3-star rating under s. 49.155 (6) (e) 3. c., Stats., to a 2-star rating under s. 49.155 (6) (e) 3. b., Stats., may not become effective until the parent’s next eligibility redetermination.

(2h) Payment of registration fees.

(a) The department shall pay the lower of a provider’s registration fee for a child or the department’s maximum registration fee amount.

(b) The department shall set a schedule for maximum registration fee amounts in Table DCF 201.04. Maximum fee amounts shall fully cover mandatory registration fees charged by at least 75 percent of providers who respond to the survey conducted under s. DCF 201.06 (2).

1. Provider fee amounts in the most recent survey under s. DCF 201.06 (2).

2. Increased alignment with provider fee practices indicated in the survey under s. DCF 201.06 (2), including variation in fee amounts based on region of the state, children’s ages, or provider regulation type.

3. A change in the funding available for the child care subsidy program.

4. A change in costs due to a change in the consumer price index.

5. A change in economic factors affecting the cost of child care to the state, such as an increase in demand for the child care subsidy program.

6. Insufficient funding to meet the needs of all eligible families applying for or receiving a child care subsidy.

7. The purposes of the child care subsidy program.

(d) The department shall publish adjustments to the maximum registration fee schedule in the Wisconsin administrative register.

(e) The department shall pay no more than 2 registration fees per child in any 12-month period.

- See PDF for table

(2r) Payment procedures.

(a) Electronic. The department may issue all payments under subs. (2) and (2h) by electronic funds transfer.

(b) Expiration. A subsidy payment issued to a parent under sub. (2) or (2h) shall expire 90 days after the date that the department issues the payment.

(c) Billing and collecting. A parent’s child care provider is responsible for billing and collecting payment for child care services from the parent.

(3) Inactive account. The department may terminate a parent’s authorization and retract all child care subsidy funds in the parent’s account if the parent has not paid any of the child care subsidy to the provider within the previous 90 days.

(4) Intentional program violation. A child care administrative agency shall consider a parent’s attempt to sell access to the parent’s child care subsidy account to an unauthorized person to be an intentional program violation under s. 49.151 (2), Stats.

(5) Overpayment recovery and penalties.

(a) Parent overpayments.

1. A child care administrative agency or the department shall take all reasonable steps necessary to recover from a parent funds paid to a child care provider or to that parent when the parent was not eligible for that level of payment under the child care subsidy program and the overpayment benefited the parent by causing the parent to pay less for child care expenses than the parent otherwise would have been required to pay under the requirements of the child care subsidy program. Section DCF 101.23 shall apply to overpayment collection from a parent under this section.

2. An overpayment shall include excess child care funds paid when there was a change in family eligibility circumstances that was significant enough that it would have resulted in a smaller child care subsidy payment or ineligibility for the child care subsidy program due to any reason, including the following:

a. The parent failed to report a change in circumstances that may affect his or her eligibility within 10 days after the change.

b. The parent was absent from an approved activity under s. 49.155 (1m) (a), Stats., without good cause, while the child was in the care of the provider.

3. The child care administrative agency shall determine good cause under subd. 2. b. if the approved activity is employment. A parent’s absence from employment shall be considered good cause if the parent is using employer-approved sick time, personal time, or vacation time and the child is in care for no more than the hours authorized.

(b) Provider overpayments. A child care administrative agency or the department shall take all reasonable steps necessary to recoup or recover from a provider any overpayments made for child care services for which the provider was responsible or overpayments caused by administrative error that benefited the provider. A provider shall be responsible for an overpayment if any of the following conditions are met:

2. A provider was paid with child care funds for care provided at a location other than the location for which the authorization for care was issued, except for field trips.

3. A provider was paid with child care funds for care during time when the provider was in violation of the applicable provision regarding limits on the maximum number of children in care or the required provider-to-child ratios for children of various ages in s. DCF 202.08 (6), 250.05 (4), 251.05 (4), or 252.42 (3).

4. A provider was paid with child care funds for care during time when the provider was in violation of the terms of the provider’s license under s. DCF 250.04 (1), 251.04 (1), or 252.05 (3), including age of the children served by the center and hours, days, and months of operation of the center.

5. A provider misrepresented information that resulted in the provider receiving a higher star rating and a higher maximum rate than the provider was eligible to receive under the child care quality rating system in ss. 48.659 and 49.155 (6) (e), Stats.

(bm) Joint liability. A provider and parent shall be jointly and severally liable for an overpayment if the provider and parent collude to violate a requirement under this chapter or s. 49.155, Stats.

(c) Penalties for subsidy violations. If a child care provider submits false, misleading, or irregular information to a child care administrative agency or the department or if a child care provider fails to comply with the terms of the program in s. 49.155, Stats., or this chapter and the provider fails to provide to the satisfaction of the department an explanation for the noncompliance, the child care administrative agency or department may take one or more of the following steps:

1. Refuse to issue new child care authorizations to a provider for a period of time not to exceed 6 months.

2. Revoke existing child care authorizations to the provider.

3. Refuse to issue payments to the provider, in addition to the authority granted to the department under s. 49.155 (7) (b) 4., Stats.

Note: Section 49.155 (7) (b) 4., Stats., has been repealed. Corrections will be made in future rulemaking.

4. Recoup overpayments under par. (e) or (ed).

5. Impose a forfeiture on the provider under par. (cg).

(cg) Forfeitures. A child care administrative agency or the department may impose a forfeiture of $100 to $10,000 on a child care provider if the provider intentionally or egregiously violates a provision in this chapter or s. 49.155, Stats. In determining the amount of the forfeiture, the child care administrative agency or department shall identify specific dates relating to a specific child for any violations and shall consider the following factors:

1. Seriousness of the violations.

2. Extent of the violations.

3. History of prior violations.

4. Prior imposition of penalties.

5. Provider willingness to obey program rules.

6. The size and type of child care provider.

(cr) Licensing or certification violations. If the department or a certification agency has given notice to a provider that the provider is in violation of applicable licensing or certification rules under ch. DCF 202, 250, 251, or 252 and the provider has not corrected the violation, the department or child care administrative agency may refuse to issue new child care authorizations, revoke existing child care authorizations, or refuse to issue payments until the provider has corrected the violation and demonstrated sufficient controls to ensure that the violation or comparable violations are unlikely to occur again.

(d) Notice. If the department or a child care administrative agency refuses to issue new authorizations, revokes existing authorizations, or refuses to issue payments to a provider under par. (c) or (cr), the child care administrative agency or the agency shall provide written notice to the parent and provider as soon as possible before the effective date of the penalty.

(e) Recoup from funds payable to continuing provider. If a provider has not repaid an overpayment, the child care administrative agency or department may recover the overpayment by recouping from current or future funds under its control that are payable to the provider of no more than 50 percent of each payment if the provider is expected to continue to care for children whose care is subsidized under s. 49.155, Stats.

(ed) Recoupment from funds payable to provider who is not continuing. If a provider or former provider has not repaid an overpayment and the provider or former provider is not expected to continue to care for children whose care is subsidized under s. 49.155, Stats., the child care administrative agency or department may recover the overpayment by recouping 100 percent of funds under its control that are payable to the provider or former provider.

(eh) Warrant and execution under section 49.195 (3m), Stats.

1. ‘Creation of lien.’

a. If the department does not receive a debtor’s payment on a debt for repayment of an overpayment by the due date 3 times over the life of a debt, the debt shall be considered delinquent. If a debt is delinquent and no review or appeal rights under s. DCF 201.07 are pending and the time for requesting a review has expired, the department may issue a warrant directed to the clerk of circuit court of any county.

b. The clerk of circuit court shall enter in the judgment and lien docket the name of the debtor named in the warrant, the amount for which the warrant is issued, and the date on which the clerk entered the information.

c. The department shall pay the fees required under s. 814.61 (5), Stats., for entering the warrant and shall collect the fees from the debtor named in the warrant when satisfaction or release is presented for entry.

d. A warrant issued under subd. 2. b. shall be considered in all respects a final judgment constituting a perfected lien upon the debtor’s right, title, and interest in all real and personal property located in the county in which the warrant is entered.

e. The department shall provide the debtor with notice and an opportunity for a hearing under ch. 227, Stats., when a warrant has been issued. The debtor may request a hearing under ch. 227, Stats., within 20 days from the date on the notice. The appeal shall be limited to questions of prior payment of the debt that the department is proceeding against and mistaken identity of the debtor. The department may not withdraw a warrant based on a request for hearing.

2. ‘Execution of the warrant.’

a. After the warrant is issued and no review or appeal rights under subd. 1. e. are pending and the time for requesting a review has expired, the department may file an execution with the clerk of circuit court for filing with the sheriff of the county, commanding the sheriff to execute the warrant and sell sufficient real and personal property of the debtor to pay the amount stated in the warrant in the same manner as upon an execution against property issued upon the judgment of a court of record, and to return the warrant to the department and pay to it the money collected by virtue of the warrant within 90 days after receipt of the warrant. The execution may not command the sheriff to levy upon or sell any property that is exempt from execution under ss. 815.18 (3) and 815.20, Stats.

b. The department shall provide the debtor with notice and an opportunity for a hearing under ch. 227, Stats., before property is seized. The debtor may request a hearing under ch. 227, Stats., within 20 days from the date on the notice. The appeal shall be limited to questions of prior payment of the debt that the department is proceeding against and mistaken identity of the debtor. The department may not cease enforcement or seizure based on a request for hearing.

c. The department shall provide the debtor with notice and an opportunity for a hearing under ch. 227, Stats., before seized property is sold. The debtor may request a hearing under ch. 227, Stats., within 20 days from the date on the notice. The appeal shall be limited to questions of prior payment of the debt that the department is proceeding against and mistaken identity of the debtor. If a hearing is requested, the department shall notify the sheriff that seized property may not be sold before the hearing decision is issued or the hearing request is withdrawn.

3. ‘Satisfaction of the warrant.’ When the amount set forth in the warrant and all costs due the department have been paid to it, the department shall issue a satisfaction of the warrant and file it with the clerk of circuit court. The clerk of circuit court shall immediately enter a satisfaction of the judgment on the judgment and lien docket. The department shall send a copy of the satisfaction to the person named in the warrant.