(a) A Board shall ensure that child care subsidies are paid only to:
  (1) regulated child care providers as described in §809.2 of this chapter meeting the Texas Rising Star requirements as a certified provider, or designated as an Entry Level provider for the prescribed time periods as described in §809.131 of this chapter;
  (2) relative child care providers, as described in §809.2 of this chapter, subject to the requirements in subsection (e) of this section; or
  (3) at the Board's option, child care providers licensed in a neighboring state, subject to the following requirements:
    (A) Boards shall ensure that the Board's child care contractor reviews the licensing status of the out-of-state provider every month, at a minimum, to confirm the provider is meeting the minimum licensing standards of the state.
    (B) Boards shall ensure that the out-of-state provider meets the requirements of the neighboring state to serve CCDF-subsidized children.
    (C) The provider shall agree to comply with the requirements of this chapter and all Board policies and Board child care contractor procedures.
(b) A Board shall not prohibit a relative child care provider that is listed with CCR and meets the minimum requirements of this section from being an eligible relative child care provider.
(c) Except as provided by the criteria for Texas Rising Star Provider certification or designation, a Board or the Board's child care contractor shall not place requirements on regulated providers that:
  (1) exceed Entry Level designation requirements or the state licensing requirements stipulated in Texas Human Resources Code, Chapter 42; or
  (2) have the effect of monitoring the provider for compliance with state licensing requirements stipulated in Texas Human Resources Code, Chapter 42.
(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.
(e) For relative child care providers to be eligible for reimbursement for Commission-funded child care services, the following applies:
  (1) Relative child care providers shall list with CCR; however, pursuant to 45 CFR §98.41(e), relative child care providers listed with CCR shall be exempt from the health and safety requirements of 45 CFR §98.41(a).
  (2) A Board shall allow relative child care providers to care for a child in the child's home (in-home child care) only for the following:
    (A) A child with disabilities as defined in §809.2 of this chapter, and his or her siblings;
    (B) A child under 18 months of age and his or her siblings;
    (C) A child of a teen parent; and
    (D) When the parent's work schedule requires evening, overnight, or weekend child care in which taking the child outside of the child's home would be disruptive to the child.
  (3) A Board may allow relative in-home child care for circumstances in which the Board's child care contractor determines and documents that other child care provider arrangements are not available in the community.
(f) Boards shall ensure that subsidies are not paid for a child at the following child care providers:
  (1) Except for foster parents authorized by DFPS pursuant to §809.49 of this chapter, licensed child care centers, including before- or after-school programs and school-age programs, in which the parent or his or her spouse, including the child's parent or stepparent, is the director or assistant director, or has an ownership interest; or
  (2) Licensed, registered, or listed child care homes where the parent also works during the hours his or her child is in care.

Source Note: The provisions of this §809.91 adopted to be effective January 29, 2007, 32 TexReg 336; amended to be effective June 24, 2007, 32 TexReg 3698; amended to be effective October 18, 2010, 35 TexReg 9359; amended to be effective November 14, 2011, 36 TexReg 7675; amended to be effective January 8, 2013, 39 TexReg 155; amended to be effective October 1, 2016, 41 TexReg 7529; amended to be effective July 6, 2020, 45 TexReg 4528; amended to be effective January 25, 2021, 46 TexReg 593; amended to be effective October 3, 2022, 47 TexReg 6437