Wisconsin Administrative Code
Department of Children and Families
DCF 201-252 - Early Care and Education
Chapter DCF 201 - Child Care Subsidy Program
Section DCF 201.04 - Payments and overpayments
Universal Citation: WI Admin Code ยง DCF 201.04
Current through August 26, 2024
(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).
(c) The department may adjust Table
DCF 201.04 to reflect any of the following factors:
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.
|
TABLE DCF 201.04 Maximum Registration Fee Schedule Effective February 1, 2024 |
|
The department's maximum registration fee amount is $125. |
(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.
(ep)
Levy under section
49.195 (3n),
Stats.
1. 'Definition.' In this
paragraph, "personal property" means all tangible and intangible property and
rights to such property that is not real estate, including compensation paid or
payable for personal services, whether denominated as wages, salary,
commission, bonus or otherwise; periodic payments received pursuant to a
pension or retirement program; rents; proceeds of insurance; contract payments;
stock and bonds; and accounts in financial institutions.
2. 'Notice prior to levy.'
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 shall give notice to the debtor that the
department may pursue legal action for collection of the debt.
b. The department shall make the demand for
payment and give notice to the debtor at least 10 days prior to the levy,
personally or by any type of mail service that requires a signature of
acceptance, at the address of the debtor as it appears on the records of the
department. The demand for payment and notice shall include a statement of the
amount of the debt, including interest and penalties, and the name of the
debtor who is liable for the debt.
c. The debtor's refusal or failure to accept
or receive the notice does not prevent the department from making the
levy.
d. Notice prior to levy is
not required for a subsequent levy on any debt of the same debtor within one
year of the date of service of the original levy.
3. 'Service of levy and review when property
levied.'
a. The department may collect the
debt and the expenses of the levy by levy upon any personal property belonging
to the debtor.
b. The department
shall serve the levy upon the debtor and any 3rd party in possession of or
obligated with respect to property or rights to property that is subject to
levy by personal service or by any type of mail service that requires a
signature of acceptance as provided in s.
49.195 (3n) (m), Stats. The debtor or 3rd party's failure
to accept or receive service of the levy does not invalidate the
levy.
c. Any debtor who is subject
to a levy proceeding made by the department has the right to appeal the levy
proceeding under ch. 227, Stats., within 20 days from the date on the service
of levy. 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 levy is not stayed pending an appeal where property is secured through the
levy.
4. 'Third-party
response.'
a. Within 20 days from the service
of the levy upon a 3rd party, the 3rd party shall file an answer with the
department stating whether the 3rd party is in possession of or obligated with
respect to property or rights to property of the debtor, including a
description of the property or the rights to property and the nature and dollar
amount of any such obligation.
b.
Any person in possession of or obligated with respect to personal property or
rights to personal property that is subject to levy and upon which a levy has
been made shall, upon demand of the department, surrender the personal property
or rights or discharge the obligation to the department, except that part of
the personal property or rights which is, at the time of the demand, subject to
any prior attachment or execution under any judicial process.
5. 'Appeal rights before
surrendered property is sold.' If levied personal property that has been
surrendered to the department is not a liquid asset in the form of cash, check,
or an equivalent that can be applied to the debt without a sale of the asset,
the department shall provide the debtor with notice and an opportunity for a
hearing under ch. 227, Stats., before surrendered 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, surrendered property may not be sold before
the hearing decision is issued or the hearing request is withdrawn.
6. 'Exemption rights.'
a. The debtor is entitled to an exemption
from levy of the greater of a subsistence allowance of 75 percent of the
debtor's disposable earnings then due and owing, an amount equal to 30 times
the federal minimum hourly wage for each full week of the debtor's pay period,
an amount equal to 60 times the federal minimum hourly wage for a two-week pay
period, or an amount equal to 130 times the federal minimum hourly wage for a
monthly pay period.
b. The first
$1,000 of an account in a depository institution is exempt from any levy to
recover an overpayment.
7. 'Proceeds.'
a. The department shall apply all money
obtained under this paragraph first against the expenses of the proceedings and
then against the liability for which the levy was made and any other liability
owed to the department by the debtor.
b. Whenever the value of any personal
property that has been levied upon under this paragraph is not sufficient to
satisfy the claim of the department, the department may levy upon any
additional personal property of the debtor until the debt and expenses of the
levy are fully paid.
c. The
department may refund or credit any amount left after the applications under
subd. 7. a., upon submission of a claim for that amount and satisfactory proof
of the claim, to the person entitled to that amount.
(et)
Threshold for warrant
and execution and levy. The minimum amount that must be due before
collection proceedings under par. (eh) or (ep) may be commenced is
$300.
(f)
Parent not
liable. If the department refuses to issue payment based on a
provider's violation of a requirement in this chapter, the provider may not
hold the parent liable for payment other than the copayment and any amount that
the parent agreed to above the department's maximum reimbursement rate if the
parent relied on an approved authorization for care for his or her child to
receive care from the provider.
(g)
Waiver. The department may waive recovery of an overpayment
under this subsection if the department has made reasonable efforts to recover
the overpayment and determines it is no longer cost effective to continue
overpayment recovery efforts.
(6) MONITORING OF CHILD CARE PROGRAMS. The department or the child care administrative agency may take one or more of the following steps to monitor a provider's compliance with program requirements:
(a) Require the provider to submit
documentation signed by the parent of the actual times that the child was
dropped off to and picked up from the child care provider.
(b) Contact the parents to determine the
child's actual attendance hours.
(c) Require the provider to submit attendance
and payment records for families that pay for child care costs out of their own
personal funds.
(d) Require the
provider to have attendance records available at the child care site whenever
the department or child care administrative agency requests to review
them.
(e) Make on-site inspections
to monitor provision of authorized services.
Disclaimer: These regulations may not be the most recent version. Wisconsin may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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