§ 71-1-130 — Day care services - Rate of reimbursement - Market rate study - Enrollment-based child care subsidy payments program

(a) The department shall perform a market rate study of day care rates annually. (b) In compliance with federal law and regulations and from the market rate study or utilizing an alternative methodology, the department shall annually determine an amount to be paid as reimbursement on behalf of low-income families, for the provision of child or infant care by a day care center, family day care home, or group day care home. (c) The commissioner shall report to the governor and the general assembly, no later than October 1 of each year, the results of the market rate study; the results of an alternative methodology utilized, if applicable; and the annual rate that has been requested by the department in its budget. (d) The average rate to be paid by the department for day care services in fiscal year 1990-1991 shall be forty-six dollars ($46.00) per week. An additional two dollars ($2.00) per day may be paid for transportation in "as-needed" day care, if it is furnished by the day care provider. (e) The amounts to be paid by the department for day care services and transportation under this section shall be subject to the availability of funding each year in the general appropriations act. (f) In any case where the department terminates a certificate for an eligible child for child care services with a child care provider, the department shall promptly, but in any event within forty-eight (48) hours, inform the provider that the child's certificate is or will no longer be in effect. (g) (1) A parent or other caretaker of an eligible child who receives a subsidy certificate from the department shall be solely responsible for payment to the provider of child care services any required copayments or other payments required pursuant to any contractual agreement with the provider of child care services. (2) Unless extenuating circumstances or other good cause applies as determined by the department, upon removal of a child from a provider of child care services, no subsidy certificate shall be issued or any payments made by the department on behalf of the child to any subsequent provider of child care services, unless the parent or other caretaker of the eligible child has made all required copayments to, or has reached an agreement regarding outstanding copayments with, the previous provider of child care services. (3) For purposes of this subsection (g), "copayment" means the department-imposed fee required to be paid by the parent or caretaker on behalf of the eligible child to the provider of child care services as a condition for the receipt of a subsidy certificate. (4) Nothing in this subsection (g) shall be construed to require the department to resolve or mediate any dispute between the parent or caretaker of any eligible child and the provider of child care services relative to outstanding copayments. (h) For purposes of this section, "alternative methodology": (1) Means a method of determining the costs of day care other than by a market rate study; and (2) Includes cost-of-quality studies and cost estimation models. (i) (1) The department may utilize an enrollment-based child care subsidy payments program that complies with all applicable federal funding requirements and legal authority and that seeks to provide adequate, stable payments to providers of child care services under this section by establishing effective payment practices based upon accurate time and attendance systems. (2) The department shall consider program standards, such as, but not limited to, the following: (A) The child's developmental and educational goals when authorizing care periods eligible for reimbursement; (B) Accommodation of variable parent schedules; (C) Authorizing pay based upon enrollment rather than attendance; (D) Using a range of hours to determine authorized care amounts; and (E) Simplifying and streamlining payment processes with providers. (3) The department shall publish on the department's publicly accessible website an overview of child care services and the methodology used to issue payments to providers of child care services, including any changes to the methodology during the previous year, if applicable.

Legislative History

Amended by 2021 Tenn. Acts, ch. 498, Secs.s1, s2, s3 eff. 5/25/2021. Amended by 2021 Tenn. Acts, ch. 484, s 1, eff. 5/18/2021. Acts 1990, ch. 1072, § 1; T.C.A. (orig. ed.), § 71-3-129; Acts 1996, ch. 950, § 21; 2006, ch. 747, § 1.