State Agency and Sponsor Monitoring - FCCHLearning Support : Minnesota Department of Education

State Agency and Sponsor Monitoring - FCCH

Effects of Public Law 102-224 on Termination of Family Child Care Provider Agreements - 6/7/2001


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651/582-8526 800/366-8922

FOOD AND NUTRITION SERVICE

POLICY MEMORANDUM

DATE: June 7, 2001

TO: SPONSORING AUTHORITIES of Child and Adult Care Food Program

R Family Child Care

FROM:

Mary Begalle, Director

Food and Nutrition Service

SUBJECT: Effects of Public Law 106-224 on Termination of Family Child Care Provider Agreements

Background

The Agricultural Risk Protection Act of 2000, P.L. 106-224, amended the Richard B. Russell National School Lunch Act to:

• Require that family child care providers be given the opportunity to request an administrative review (appeal), and continue to receive program payments, prior to termination of CACFP participation.

• Direct the Secretary of Agriculture to develop procedures relating to terminating family child care provider agreements.

The U.S. Department of Agriculture received many requests for clarification from state agencies after issuing their guidance on this subject in October 2000. The version of the guidance as revised in April 2001 is attached to this memorandum and restates all pertinent information from the earlier guidance.

Summary

The attached guidance from USDA contains various requirements concerning the termination of provider agreements. This guidance remains effective until USDA publishes an interim rule to amend CACFP regulations.

Major areas discussed in the attached USDA information:

• General procedural requirements for:

- Notice of serious deficiency and intent to terminate,

- Payment of claims during an appeal process,

- Withholding of payment of claims during an appeal process if serious deficiency is related to health and safety issues.

- Opportunity for correction of a serious deficiency,

- Evaluation of correction actions,

- Notice of intent to terminate,

- A "National Disqualified List" of terminated providers.

• Limitations on terminations for convenience.

• Examples of serious deficiency.

• Definition of "independent and impartial" administrative review official.

Required Actions

• Amend policies and procedures as necessary for compliance with the attached USDA procedures.

Please contact our office at 651-582-8526, 1-800-366-8922, or fns@state.mn.us if you have any questions.