CCAP disqualifies child care providers who have committed an Intentional Program Violation (IPV) or have been found to have wrongfully obtained child care assistance as established by any of the following:

· A court proceeding, which could include:

· A conviction in federal or state court

· A pre-trial diversion

· Court-ordered stay which carries with it any other probationary terms or conditions

· A signed disqualification consent agreement (initiated by a County or Tribal Attorney).

· An administrative disqualification, which happens when:

· The provider does not appeal an administrative disqualification notice within 30 days: or

· A Human Services Judge finds in the agency’s favor at an Administrative Disqualification Hearing (ADH). See Chapter 13.9.3 (Administrative Disqualification – Providers).

A disqualification must be established through one of these methods.

· CCAP agencies handle provider disqualifications through the courts that are initiated by their County and Tribal Attorney, such as criminal prosecutions or disqualification consent agreements.

· Only state staff can pursue administrative disqualifications for child care providers, but the state may do so in collaboration with and/or at the recommendation of a CCAP agency.

Communication and coordination with state staff

Follow guidance in Chapter 13.3 (Fraud Referrals) for referring or notifying Office of Inspector General (OIG) Child Care Audits and Investigations Unit staff of any provider concerns, including situations when:

· Your County or Tribal Attorney criminally charges a provider and/or pursues a disqualification through a court proceeding or a disqualification consent agreement.

· Your agency recommends the OIG initiate an administrative disqualification.

Disqualification periods and effects

Disqualification period occurs when the provider is found to have committed an IPV or to have wrongfully obtained child care assistance:

· Three years for the first offense

· Permanently for any subsequent violation.

In addition to being disqualified from receiving CCAP payments, a disqualification may also affect a provider’s ability to:

· Clear a background study

· Hold a child care license or certification

· Have direct contact or access to children in a child care setting

· Participate in other DCYF and/or DHS programs.

Provider notices and termination

CCAP must inform the child care provider of their responsibilities and rights and of the penalties for intentional program violations. Failure to give a provider this penalty warning will invalidate any Administrative Disqualification. The Child Care Provider Responsibilities and Rights DHS-4079-ENG (PDF) includes the penalty warning required for the Administrative Disqualification.

Once an IPV has been established, the provider receives a 15-day adverse action notice if the provider’s registration is open. See Chapter 12.6.6 (Adverse Action Notices - Provider).

Appeals and reversals

Once an IPV has been formally established, the disqualification is not appealable through an administrative hearing. The disqualification remains in effect, without possibility of administrative stay, unless the underlying basis is later reversed by a court of appropriate jurisdiction.

Effective date of disqualification

The effective date of the disqualification period is the later of:

· The effective date of the CCAP termination notice

OR

· The date of the Intentional Program Violation (IPV) determination. Examples include:

· Date of the signed disqualification consent agreement

· Date of the criminal conviction, diversion, or stay

· Date of the Notice of Administrative Disqualification or, if there is an appeal, the final appeal decision.

The disqualification period must be immediately applied.

Disqualification consent agreement

County and Tribal Attorneys can use a Disqualification Consent Agreement for providers. This method for establishing an IPV allows an accused person to voluntarily agree to disqualification and repayment of program benefits. Use of a Disqualification Consent Agreement is limited to the discretion or and execution by the County or Tribal Attorney’s office.

Legal authority

Minnesota Statutes 142A.12
Minnesota Statutes 142A.20
Minnesota Statutes 142A.25
Minnesota Statutes 142B.10, subd. 14
Minnesota Statutes 142B.15
Minnesota Statutes 142B.18, subd. 4
Minnesota Statutes 142B.19
Minnesota Statutes 142C.07
Minnesota Statutes 142E.18
Minnesota Statutes 142E.51, subd. 5
Minnesota Statutes 245.095
Minnesota Statutes 245C.14
Minnesota Statutes 245C.15
Minnesota Statutes 256.98, subd. 8(c)
Minnesota Rules 3400.0183
Minnesota Rules 3400.0230