1. (1) CC is to support an eligible client's monthly employment and any allowed training activity and allows for temporary absences and unforeseen circumstances.

2. (2) A provider must provide at least eight hours of care during the initial benefit month for which a CC payment was issued to be eligible for CC payment.

   1. (a) A provider has the burden of proof to demonstrate the provider provided care to each CC client for which it receives CC payment.
   2. (b) Pursuant to Subsection R986-700-727(2), if a provider is not able to produce a time and attendance record for a specific CC client for a specific month, there is a rebuttable presumption that the provider did not provide child care for that CC client during that month.

3. (3) Inappropriate use of a CC payment.

   1. (a) Applying the CC payment to a:

      1. (i) copayment;
      2. (ii) registration fee;
      3. (iii) late fee;
      4. (iv) field trip; or
      5. (v) client's out of pocket expenses.
   2. (b) Carrying forward the CC payment for future months of service.

4. (4)(a) An excess CC payment cannot be used to cover an outstanding balance, a copayment, a registration fee, a late fee, a field trip, or future services.

   1. (b) If excess funds are issued for a month of service, the excess funds must be returned to the Department.
   2. (c) The CC payment for the following month may be reduced to offset the over-issuance.
5. (5) A provider who receives a CC payment when the child has not attended at least eight hours in a month may be responsible for repayment of any resulting overpayment under Title 35A, Chapter 3, Part 6, Administrative Determination of Overpayment Act, and Sections R986-700-731 and R986-700-731.1, and there may be a disqualification period pursuant to Sections R986-700-733 and R986-700-734, and potential criminal prosecution under Title 76, Chapter 8, Part 12, Public Assistance Fraud.

6. (6) A provider who provides services for any part of a month and then terminates services with the client or for a child during the month may be required to reimburse the Department for the days when care was not provided.

   1. (a) If it was necessary to remove the child from care because the child or others were endangered, and the incident was reported to OL or local authorities, the Department may waive repayment.
7. (7) The Department will issue a IRS Form 1099 annually where applicable to each eligible provider who received a CC payment during the year.
8. (8) A provider who applies CC funds inappropriately may be subject to an overpayment and possible disqualification pursuant to Sections R986-700-731, R986-700-733, and R986-700-734.

KEY: child care, grant programs

Date of Last Change: December 8, 2025

Notice of Continuation: August 14, 2025

Authorizing, and Implemented or Interpreted Law: 35A-3-203; 35A-3-209; 35A-3-310; 45 C.F.R. 98.21