(a) Child care funds allocated by the Commission pursuant to its allocation rules (generally, Chapter 800, Subchapter B of this title (relating to Allocations), and specifically §800.58 of this title (relating to Child Care)), including local public transferred funds and local private donated funds, as provided in §809.17 of this subchapter, to the extent they are used for nondirect care quality improvement activities, shall be expended in accordance with the CCDF State Plan.
(b) Boards must ensure compliance with 45 CFR Part 98 regarding construction expenditures, as follows:
  (1) State and local agencies and nonsectarian agencies or organizations.
    (A) Funds shall not be expended for the purchase or improvement of land, or for the purchase, construction, or permanent improvement of any building or facility.
    (B) Funds may be expended for minor remodeling, and for upgrading child care facilities, to ensure that providers meet state and local child care standards, including applicable health and safety requirements.
  (2) Sectarian agencies or organizations.
    (A) The prohibitions in paragraph (1) of this subsection apply.
    (B) Funds may be expended for minor remodeling only if necessary to bring the facility into compliance with the health and safety requirements established pursuant to 45 CFR Part 98.
(c) Expenditures certified by a public entity, as provided in §809.17 of this subchapter, may include expenditures for any quality improvement activity described in 45 CFR Part 98.

Source Note: The provisions of this §809.16 adopted to be effective January 29, 2007, 32 TexReg 336; amended to be effective January 8, 2013, 38 TexReg 155; amended to be effective February 16, 2015, 40 TexReg 708; amended to be effective October 1, 2016, 41 TexReg 7529; amended to be effective January 25, 2021, 46 TexReg 593; amended to be effective October 3, 2022, 47 TexReg 6437