Chapter DCF 52

DCF 52.62(4) (4) Amendment to license.

DCF 52.62(4)(a) (a) Before a licensee may make any change affecting a provision of its license, the licensee shall submit a written request to the department for approval of that change and shall receive approval from the department in the form of an amended license.

DCF 52.62(4)(b) (b) Any of the following changes require amendment of the license:

DCF 52.62(4)(b)1. 1. A change in any of the licensee’s powers and duties under s. 48.61, Stats., that are covered by the license.

DCF 52.62(4)(b)2. 2. A change in the maximum number of residents or in the sex or age range of residents which the center will serve.

DCF 52.62(4)(b)3. 3. A change in the type of resident population served such as emotionally disturbed, sexual offender, developmentally disabled, alcohol or drug dependent or delinquent.

DCF 52.62(4)(b)4. 4. A change in the name of the center.

DCF 52.62(4)(b)5. 5. The licensee’s name changes.

DCF 52.62(4)(b)6. 6. Any other change as allowed under Wisconsin statutes.

DCF 52.62(4)(c) (c) A licensee seeking to expand operations to increase the number of residents served under the existing license shall have been operating in substantial compliance with this chapter.

DCF 52.62(4)(d) (d) A request to amend a license to serve a resident population that is 18 years of age and over, but under 21 years of age, and is transitioning to independence shall be on a form prescribed by the department.

DCF 52.62 Note Note: Form DCF-F-5081-E, Amendment Request to Extend Care to Residents 18 Years of Age or Over, But Under 21 Years of Age, is available in the forms section of the department’s website, http://dcf.wisconsin.gov, or from a department field office. See Appendix D for the address of the field office for your area.

DCF 52.62(5) (5) License denial or revocation.

DCF 52.62(5)(a) (a) The department may refuse to grant a license or may revoke a license if the applicant or licensee has violated has violated any provision of this chapter or ch. 48 or 938, Stats., or fails to meet the minimum requirements of this chapter.

DCF 52.62(5)(b) (b) The department may refuse to grant a license or may revoke a license if an applicant or licensee or a proposed or current employee, student intern or volunteer is any of the following:

DCF 52.62(5)(b)1. 1. A person who is the subject of a pending criminal charge for an action that directly relates to the care of children or activities of the center.

DCF 52.62(5)(b)2. 2. A person who has been convicted of a felony or misdemeanor or other offense which is substantially related to the care of children or activities of the center.

DCF 52.62(5)(b)3. 3. A person who has been determined to have abused or neglected a child pursuant to s. 48.981, Stats., or who has been determined to have committed an offense which is substantially related to the care of children or activities of the center.

DCF 52.62(5)(b)4. 4. A person against whom a finding of abuse, neglect, or misappropriation of property pursuant to ch. DHS 13 has been entered on the Wisconsin caregiver registry maintained by the department of health services.

DCF 52.62(5)(b)5. 5. A person who has had a department-issued license revoked within the last 5 years.

DCF 52.62(5)(b)6. 6. A person who has a recent history of psychological or emotional disorder which suggests an inability to adequately handle the administrative affairs of the center or, for anyone having contact with the residents, presents a risk that the residents may be harmed or their well-being neglected. The department may require the person to submit to a psychological examination.

DCF 52.62(5)(b)7. 7. A person who is the subject of a court finding that the person has abandoned his or her child, has inflicted sexual or physical abuse on a child, or has neglected or refused, for reasons other than poverty, to provide necessary care, food, clothing, medical or dental care, or shelter for his or her child or ward or a child in his or her care so as to seriously endanger the physical health of the child.

DCF 52.62(5)(b)8. 8. A person who has violated any provision of this chapter or ch. 48, Stats., or fails to meet the minimum requirements of this chapter.

DCF 52.62(5)(b)9. 9. A person who has made false statements on the background information disclosure form completed under the requirements of ch. DCF 12.

DCF 52.62 Note Note: Examples of charges and offenses the department will consider in making a determination under this paragraph that an act is substantially related to the care of children are: sexual assault; abuse of a resident of a facility; a crime against life and bodily security; kidnapping; abduction; arson of a building or of property other than a building; robbery; receiving stolen property from a child; a crime against sexual morality, such as enticing a minor for immoral purposes or exposing a minor to harmful materials; and interfering with the custody of a child. The list is illustrative. Other types of offenses may be considered.

DCF 52.62(6) (6) Notice to deny or revoke a license.

DCF 52.62(6)(a) (a) If the department decides under sub. (5) to not grant a license or to revoke a license, the department shall notify the applicant or licensee in writing of its decision and the reasons for it. Revocation of a license shall take effect either immediately upon notification or 30 days after the date of the notice unless the decision is appealed under sub. (8); whether the revocation shall take effect immediately upon notification or 30 days after the date of the notice shall be determined in accordance with the criteria found in s. 48.715 (4m) (a) and (b), Stats.

DCF 52.62(6)(b) (b) Upon receipt of the notice of revocation and during any revocation proceedings that may result, the licensee may not accept for care any child not enrolled as of the date of receipt of the notice without written approval of the department’s licensing representative.

DCF 52.62(6)(c) (c) By the effective date of a license revocation, the licensee shall have arranged alternative placements for all residents. The arrangements shall be made in cooperation with each resident’s parent or guardian and legal custodian or placing agency, if not the same. The licensee shall share this information with the licensing representative at least one week before the effective date of the license revocation.

DCF 52.62(7) (7) Summary suspension of a license.

DCF 52.62(7)(a) (a) Under the authority of s. 227.51 (3), Stats., the department shall summarily suspend a license and thereby close a residential care center when the department finds that this action is required to protect the health, safety, or welfare of children in care. A finding that summary suspension of a license is required to protect the health, safety or welfare of children in care may be based on, but is not limited to, any of the following:

DCF 52.62(7)(a)1. 1. Failure of the licensee to maintain or restore environmental protection for the residents, such as heat, water, electricity or telephone service.

DCF 52.62(7)(a)2. 2. The licensee, an employee, a volunteer, or any other person in regular contact with the children in care has been convicted of or has a pending charge for a crime against life or for a crime of bodily injury.

DCF 52.62(7)(a)3. 3. The licensee, an employee, a volunteer, or any other person in regular contact with the children in care has been convicted of a felony, misdemeanor, or other offense which is substantially related to the care of children or activities of the center or has a pending charge which is substantially related to the care of children or activities of the center.

DCF 52.62(7)(a)4. 4. The licensee, an employee, a volunteer, or any other person in regular contact with the children in care is the subject of a current investigation for alleged child abuse or neglect pursuant to s. 48.981, Stats., or has been determined to have abused or neglected a child pursuant to s. 48.981, Stats.

DCF 52.62(7)(a)5. 5. The licensee or a person under the supervision of the licensee has committed an action or has created a condition relating to the operation or maintenance of the center that directly threatens the health, safety, or welfare of any child under the care of the licensee.

DCF 52.62(7)(b) (b) If the department’s licensing representative determines that the safety of the residents requires their immediate relocation, the department shall order the licensee, orally and in writing, to find suitable temporary housing for the residents until arranging for their permanent relocation. The department shall further order the licensee, orally and in writing, to notify, for each resident, the placing person or agency and parent or guardian within 24 hours after temporary housing arrangements for the resident have been made.

DCF 52.62(7)(c) (c) An order summarily suspending a license and thereby closing a center may be a verbal order by a licensing representative of the department. Within 72 hours after the order takes effect, the department shall either permit the reopening of the center or proceed under sub. (5) to revoke the center’s license. A preliminary hearing shall be conducted by the department of administration’s division of hearings and appeals within 10 working days after the date of the initial order to close the center on the issue of whether the license shall remain suspended during revocation proceedings.

DCF 52.62(8) (8) Appeal of decision to deny or revoke a license.

DCF 52.62(8)(a) (a) Any person aggrieved by the department’s decision to deny a license or to revoke a license may request a hearing on the decision under s. 227.42, Stats.

DCF 52.62(8)(b) (b) The request for a hearing shall be in writing and shall be filed with the department of administration’s division of hearings and appeals within 10 days after the date on the notice of the department’s refusal or failure to issue, renew, or continue a license or the department’s action taken under s. 48.715, Stats.

DCF 52.62 Note Note: A request for a hearing may be mailed to Division of Hearings and Appeals, P.O. Box 7875, Madison, WI 53707-7875 or faxed to [phone]. A copy of the request should be sent to the appropriate field office listed in Appendix D.

DCF 52.62 History History: Cr. Register, February, 2000, No. 530, eff. 9-1-00; corrections in (2) (c) 1., 3., 13., (5) (b) 4. and 9. made under s. 13.92 (4) (b) 6. and 7., Stats., Register November 2008 No. 635; EmR1106: emerg. cr. (2) (c) 17., eff. 9-16-11; CR 11-026: cr. (2) (c) 17., correction in (2) (c) 12., 14. made under s. 13.92 (4) (b) 6., 7., Stats., Register December 2011 No. 672, eff. 1-1-12; EmR1414: am. (4) (b) 4., r. and recr. (4) (b) 5., cr. (4) (d), eff. 8-1-14; CR 14-054: am. (1), (4) (b) 4., r. and recr. (4) (b) 5., cr. (4) (d) Register April 2015 No. 712, eff. 5-1-15; EmR1633: emerg. am. (8) (b), eff. 11-18-16; CR 16-051: am. (8) (b) Register July 2017 No. 739, eff. 8-1-17; correction in (2) (c) 3. made under s. 13.92 (4) (b) 6., Stats., Register March 2018 No. 747; correction in (2) (c) 3., (5) (b) 9. made under s. 13.92 (4) (b) 7., Stats., Register March 2018 No. 747; CR 21-107: am. (2) (c) 3. Register June 2022 No. 798, eff. 7-1-22.

DCF 52.63 DCF 52.63 Inspections and complaint investigations.

DCF 52.63(1) (1) Inspection. Pursuant to s. 48.73, Stats., the department may visit and inspect any residential care center for children and youth at any time. A department licensing representative shall have unrestricted access to the premises identified in the license, including access to resident records and any other materials, and access to residents and other individuals having information on compliance by the center with this chapter.

DCF 52.63(2) (2) Complaint investigation. Under s. 48.745, Stats., any person having a complaint about a licensed center or a center operating without a license may submit that complaint to the department by telephone, letter or personal interview. A licensing representative of the department shall investigate each complaint. The department shall send a written report of the findings of that investigation to the complainant.

DCF 52.63 Note Note: A complaint should be sent, phoned in or delivered to the appropriate Department of Children and Families field office listed in Appendix D.

DCF 52.63(3) (3) Enforcement action. The department may order any sanction or impose any penalty on a licensee in accordance with s. 48.685, 48.715 or 48.76, Stats.

DCF 52.63 History History: Cr. Register, February, 2000, No. 530, eff. 9-1-00.

subch. IX of ch. DCF 52 Subchapter IX — Rate Regulation

DCF 52.64 DCF 52.64 Rate determination.

DCF 52.64(1) (1) The department shall determine the maximum per client rate that each residential care center program may charge for costs associated with room, board, administration, service provision, and oversight of residents in the residential care center program based on the following:

DCF 52.64(1)(a) (a) A maximum per client rate determined by the department that no residential care center may exceed.

DCF 52.64(1)(b) (b) A per client rate that the department determines is appropriate for each residential care center program based on the reasonable and necessary costs of the services provided by that residential care center.

DCF 52.64(2) (2) A residential care center shall charge all Wisconsin public purchasers the same rate for the same services.

DCF 52.64 Note Note: A residential care center may have multiple programs within the center and may charge a different rate for each program.

DCF 52.64 History History: EmR1106: emerg. cr., eff. 9-16-11; CR 11-026: cr. Register December 2011 No. 672, eff. 1-1-12; CR 14-054: am. (1) (intro.) Register April 2015 No. 712, eff. 5-1-15.

DCF 52.65 DCF 52.65 Allowable costs. In determining rates under this subchapter, the department may consider costs incurred for any purpose that is allowable under all of the following:

DCF 52.65(1) (1) Applicable federal regulations, including 2 CFR Part 200, 45 CFR Part 75, and 48 CFR Part 31, except as provided in sub. (2).

DCF 52.65(2) (2) Reserves or profit as allowed under the following:

DCF 52.65(2)(a) (a) For nonprofit corporations, reserves allowed under s. 49.34 (5m) (b) 1., Stats.

DCF 52.65(2)(b) (b) For proprietary residential care centers, profit allowed on an annual basis is the smaller amount determined under the following 2 methods of calculating profit:

DCF 52.65(2)(b)1. 1. The equity method is the sum of 7.5 percent of allowable operating costs plus 15 percent of average net equity for the year. In this subdivision, “average net equity” means the average cost of equipment, buildings, land, and fixed equipment minus the average accumulated depreciation and average long term liabilities for the year.

DCF 52.65(2)(b)2. 2. The expenses method is 10 percent of allowable operating costs for the year.

DCF 52.65 Note Note: Further explanation is available in the department’s Allowable Cost Policy Manual, which is available in the Partner Resources/Grants and Contract Administration section of the department’s website at http://dcf.wisconsin.gov.

DCF 52.65 History History: EmR1106: emerg. cr., eff. 9-16-11; CR 11-026: cr. Register December 2011 No. 672, eff. 1-1-12; CR 20-003: am. (1), (2) (a) Register July 2020 No. 775, eff. 8-1-20.

DCF 52.66 DCF 52.66 Rate methodology.

DCF 52.66(1) (1) Cost and service information. Each year no later than July 1, a licensee shall submit the following information to the department:

DCF 52.66(1)(a) (a) A cost and service report in which the licensee reports the residential care center’s costs, types of services provided, and number of children served in the previous year. The report shall be submitted on a department-prescribed form.

DCF 52.66 Note Note: The cost and service report form is available at https://dcf.wisconsin.gov/ratereg.

DCF 52.66(1)(b) (b) The residential care center’s most recent audit report under s. DCF 52.11 (6) (a).

DCF 52.66(2) (2) Maximum allowable rate. Each year no later than September 1, the department shall notify licensees of the per client rate that no residential care center may exceed for services provided in the following calendar year.

DCF 52.66(3) (3) Proposed rates.

DCF 52.66(3)(a) (a) Each year no later than October 1, a licensee shall submit to the department a proposed rate for the following calendar year for each residential care center program that the licensee operates. The licensee shall submit the proposed rate on a department-prescribed form.

DCF 52.66(3)(b) (b) A licensee may request an exception to the department’s maximum rate under sub. (2) if the licensee provides a specialized service or specialized programming to a specific population of children. The exception request shall explain the benefits of the service or programming and why the licensee cannot provide the service or programming within the maximum rate. The exception request shall be made on the rate request form.

DCF 52.66 Note Note: The rate request form is available at https://dcf.wisconsin.gov/ratereg.

DCF 52.66(4) (4) Review of a proposed rate. In reviewing a proposed rate submitted by a licensee under sub. (3), the department shall consider all of the following:

DCF 52.66(4)(a) (a) Whether the proposed rate exceeds the maximum rate determined by the department under sub. (2).

DCF 52.66(4)(b) (b) The residential care center’s most recent cost and service report under sub. (1) (a).

DCF 52.66(4)(c) (c) The residential care center’s most recent audit report under sub. (1) (b).

DCF 52.66(4)(d) (d) Whether the residential care center’s reported costs are within a range of similar costs reported by other residential care centers for similar items and services.

DCF 52.66(4)(e) (e) The residential care center’s per client rate in previous years.

DCF 52.66(4)(f) (f) Changes in the consumer price index for all urban consumers, U.S. city average, as determined by the U.S. department of labor, for the 12 months ending on June 30 of the year in which the proposed rate is submitted.

DCF 52.66(4)(g) (g) Changes in the consumer price index for all urban consumers, U.S. city average, for the medical care group, as determined by the U.S. department of labor, for the 12 months ending on June 30 of the year in which the proposed rate is submitted.

DCF 52.66(4)(h) (h) Changes in the allowable costs of residential care centers based on current actual cost data or documented projections of costs.

DCF 52.66(4)(i) (i) Changes in program utilization that affect the per client rate.

DCF 52.66(4)(j) (j) Changes in the department’s expectations relating to service delivery.

DCF 52.66(4)(k) (k) Changes in service delivery proposed by a residential care center and agreed to by the department.

DCF 52.66(4)(L) (L) The loss of any source of revenue that had been used to pay expenses, resulting in a lower per client rate for services.