1. (a) A Board shall ensure that child care subsidies are paid only to:

   1. (1) regulated child care providers as described in §809.2(17);
   2. (2) relative child care providers as described in §809.2(18), subject to the requirements in subsections (e) and (f) of this section; or
   3. (3) at the Board option, listed family homes as defined in §809.2(12), subject to the requirements in subsection (b) of this section.

2. (b) If a Board chooses to include listed family homes, a Board shall ensure that there are in effect, under local law, requirements applicable to the listed family homes designated to protect the health and safety of children. Pursuant to 45 C.F.R. §98.41, the requirements shall include:

   1. (1) the prevention and control of infectious diseases (including immunizations);
   2. (2) building and physical premises safety; and
   3. (3) minimum health and safety training appropriate to the child care setting.

3. (c) Except as provided by the criteria for Texas Rising Star Provider Certification, a Board or the Board's child care contractor shall not place requirements on regulated providers that:

   1. (1) exceed the state licensing requirements stipulated in Texas Human Resources Code, Chapter 42; or
   2. (2) have the effect of monitoring the provider for compliance with state licensing requirements stipulated in Texas Human Resources Code, Chapter 42.
4. (d) When a Board or the Board's child care contractor, in the course of fulfilling its responsibilities, gains knowledge of any possible violation regarding regulatory standards, the Board or its child care contractor shall report the information to the appropriate regulatory agency.

5. (e) Relative child care providers shall not reside in the same household as the eligible child unless:

   1. (1) the eligible child is a child of a teen parent; or

   2. (2) the Board's child care contractor determines and documents that other child care provider arrangements are not reasonably available. Factors used to determine the reasonable availability of child care may include, but are not limited to:

      1. (A) the parent's work schedule;
      2. (B) the availability of adequate transportation; or
      3. (C) the age of the child.
6. (f) An individual appearing on the Texas Department of Public Safety's Sex Offender Registry, pursuant to Chapter 62 of the Texas Code of Criminal Procedure, shall not be eligible to be a relative child care provider.

Source Note:The provisions of this §809.91 adopted to be effective January 29, 2007, 32 TexReg 336.