1. (1) To receive an ESG a program must:

   1. (a) receive a certified quality rating of:

      1. (i) High Quality; or
      2. (ii) High Quality Plus;
   2. (b) serve children for whom child care was paid for with CC subsidy during the 12-month period used to calculate the ESG;
   3. (c) maintain a license in good standing with OL during the 12-month certification period;
   4. (d) maintain status as a DWS-Eligible child care program during the 12-month certification period;
   5. (e) agree to comply with each requirement outlined in the certified quality rating award notice;
   6. (f) agree to the amount of the ESG stated on the certified quality rating award notice;
   7. (g) agree to receive the ESG through the process established by OCC policy;

   8. (h) not be disqualified pursuant to Sections R986-700-733 and R986-700-734;

      1. (i) not have a pending administrative review on the awarded certified quality rating; and
   9. (j) not have a pending referral from the Director of OCC for an administrative disqualification hearing pursuant to Sections R986-700-733 and R986-700-734.
2. (2) Upon final disposition of a pending administrative review, an ESG may be issued retroactively where all other ESG requirements are met and the program has not been disqualified pursuant to Sections R986-700-733 and R986-700-734.

3. (3) An ESG for a program that has an outstanding adjudicated overpayment or other debt owing to OCC shall be issued as follows:

   1. (a) if the overpayment amount is less than the monthly ESG amount, the ESG shall be reduced by the amount of outstanding overpayment due; or
   2. (b) if the overpayment amount is greater than the monthly ESG, a monthly ESG shall continue to be reduced until the overpayment is fully repaid.
4. (4) If a program is a party to a pending administrative review or appeal of an overpayment that does not involve a suspected IPV, the Department may not reduce the program's ESG as provided in Subsection (3) until final disposition of the action is issued.
5. (5) The monthly ESG will be calculated in accordance with OCC policy.
6. (6) Continuing receipt of ESG is subject to the program satisfying the requirements in Subsection (1).

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