Tenn. Comp. R. & Regs. 1240-04-05-.03 - LICENSING PROCESS

(1) Licensing Criteria.

(a) A license for the operation of a child care agency is issued and its continued approval is based upon the following general criteria:

1. The safety, welfare and best interests of the children in the care of the agency;

2. The capability, training and character of the persons providing or supervising the care to the children;

3. The quality of the methods of care and instruction provided for the children;

4. The suitability of the facilities provided for the care of the children; and

5. The adequacy of the methods of administration and the management of the child care agency, the agency's personnel policies, and the financing of the agency.

(b) Failure to attain or maintain the criteria in subparagraph (a) either alone, or in conjunction with failure to attain or maintain compliance with any other regulations governing the specific class of child care agency, may be the basis for refusal to grant a license, or for placing the child care agency on probation, or for suspension, denial or revocation of the agency's license.

(2) The Department shall assist applicants or licensees in meeting the child care standards of the Department unless the circumstances demonstrate that further assistance is not compatible with the continued safety, health or welfare of the children in the agency's care and that regulatory action affecting the agency's license is warranted. It is the responsibility of the applicant/licensee to comply with all regulations of the Department of Human Services and those regulations of any other federal, state or local regulatory agency which are necessary for the proper operation of a child care business and to demonstrate to the Department a good faith commitment to attaining and maintaining compliance with all applicable licensing standards. All costs and expenses arising from or related to meeting the child care standards of the Department shall be borne entirely by the applicant or licensee; provided, however, the Department may, in its discretion, provide from available funds technical assistance to child care agencies, and for the training of child caregivers and directors.

(3) If a licensee is denied the renewal of a license, or if a license is revoked or suspended, or if any applicant for a license cannot meet the standards, then the Department shall offer reasonable assistance to the parent, guardian or custodian of the child in planning for the placement of such children in licensed child care agencies or other suitable care.

(4) Application for an Initial License or for Renewal of an Existing License.

(a) Application for an initial or renewal license to operate a child care agency shall be made in writing to the Department in such manner as the Department determines and shall be accompanied by the appropriate fee set forth in the fee schedule in paragraph (15).

(b) Application for and Granting of the Renewal of a License.

1. Child care agencies currently licensed by the Department shall submit a renewal application, the required fee, and any required supporting documentation sixty (60) calendar days prior to the expiration of the existing license.

2. Failure to submit a completed application and the required fee sixty (60) calendar days prior to the expiration of an existing license, shall result in the automatic termination of the license upon the expiration date, and the child care agency shall cease operations immediately after that date. Child care agencies may initiate a new application process if the child care agency fails to meet the sixty (60) calendar day deadline; however, the child care agency must cease operations until such time as the new application is approved.

3. A licensee seeking renewal of a license must demonstrate satisfactory compliance with all health and safety requirements applicable to its operations and any other applicable licensing laws and rules of the Department to obtain renewal of the license.

(5) Temporary License.

(a) If the Department determines that the applicant for an initial annual license has presented satisfactory evidence that the facility which is proposed for the care of children has received fire safety and environmental safety approval, that the applicant and the personnel who will care for the children are capable in all substantial respects to care for the children and that the applicant has the ability and intent to comply with the licensing law and regulations, the Department shall issue a temporary license to the applicant. No temporary license will be issued until, at a minimum, fire safety and environmental safety inspections have been conducted and the applicant has received approval from the appropriate agencies.

(b) If the Department determines that the conditions of the applicant's facility, its methods of care or other circumstances warrant, it may issue a restricted temporary license which limits the agency's authority in one or more areas of operation.

(c) The purpose of the temporary license is to permit the license applicant to begin the operation of a child care agency after meeting certain minimum requirements and to demonstrate during the temporary licensing period that it has the ability to attain and maintain compliance with all licensing laws and regulations.

(d) Within one hundred twenty (120) days of the issuance of the temporary license, the Department shall determine if the applicant has demonstrated that it meets all of the requirements for the issuance of a license for the classification of child care agency for which the application was made.

(6) Annual License.

(a) If the Department determines that the applicant for any license has complied with all licensing regulations for the classification of child care agency for which application was made, the Department shall issue an annual license, or shall, if appropriate issue a restricted annual license as provided in subparagraph (b).

(b) If the Department determines that the conditions of the applicant's facility, its methods of care or other circumstances warrant, it may issue a restricted annual license which limits the agency's authority in one or more areas of operation.

(7) License Information.

(a) Based upon information provided in the license application or as may be requested by the Department, the license shall describe the ownership of the child care agency, the person who is charged with the day-to-day management of the child care agency, and, if the agency is owned by a person other than the director, or if the agency is under the ownership or direction or control of any person or entity who is not also the on-site director or manager of the agency, the license shall also state the corporate or other name of the controlling person or entity, its address and telephone number where the parents, guardians or custodians may have contact regarding the agency's operations.

(b) If the child care agency is operated by a public or private non-profit entity and is subject to the control or direction of a board of directors or other oversight authority, the license shall list the name, address and telephone number of the chairman of the board or other executive head of such controlling body.

(8) Posting of License.

The licensee shall post the license in a clearly visible location as determined by the Department so that parents or other persons visiting the agency can readily view the license and all the information on the license.

(9) Before and After School Services.

(a) In order for a child care agency to offer before or after school services, the Department will issue a license bearing a notation that the agency is authorized to provide such services.

(b) An agency is not authorized to offer such services unless the license bears such a notation.

(10) In granting a license, the Department may limit the total number of children who may be enrolled at the agency regardless of the agency's physical capacity or the size of its staff.

(11) License Status Following Application or Appeal.

(a) If the Department fails to issue or deny an annual license within one hundred twenty (120) days of the granting of the temporary license, the temporary license shall continue in effect, unless suspended as provided in 1240-04-05-.04(5), until such determination is made.

(b) If an annual license is denied following the issuance of a temporary license, and if a timely appeal is made of the denial of the annual license, the temporary license shall remain in effect, unless suspended as provided in 1240-04-05-.04(5), until the Child Care Agency Board of Review renders a decision regarding the denial of the annual license.

(12) If a temporary or annual license is denied, or an annual license is restricted, the applicant may file an appeal as provided in T.C.A. § 71-3-509 and other applicable laws and rules governing the Child Care Agency Board of Review.

(13) Transfers of Licenses.

(a) Except as provided in this chapter, no license for a child care agency shall be transferable from one location to another or from one licensee/operator to another, and the transfer by sale or lease, or in any other manner, of the operation of the child care agency to any other person or entity shall void the existing license immediately and any pending appeal involving the status of the license, and the child care agency shall be required to close; provided that if the transferee has made application for, and is granted, a temporary license, the child care agency may continue operation under the direction of the new licensee. The new licensee in such circumstances may not be the transferor or any person or entity acting on behalf of the transferor.

(b) Notice of Termination to Buyer/Lessee/Transferee.

1. Except for transfers subject to the provisions of subparagraph (d), at least thirty (30) days before the sale, lease, or transfer by any other means, of a child care agency, the licensee/owner/management of the child care agency shall notify in writing the buyer, lessee or other prospective transferee of the child care agency that the license of the child care agency is not transferable and that upon the effective date of the transfer, the license of the child care agency will automatically terminate and of the need to seek a temporary license from the Department for continued operation of the child care agency.

2. The licensee/owner/management of the child care agency shall notify in writing the Department at the same time the notice required by part 1 is sent and shall clearly identify the date of the transfer and the identity of the prospective buyer/lessee/transferee.

(c) If the Department determines that any person or entity has transferred nominal control of a child care agency to any persons or entities who are determined by the Department to be acting on behalf of the purported transferor in order to circumvent a history of violations of the licensing law or regulations or to otherwise attempt to circumvent the licensing law or regulations or any prior licensing actions instituted by the Department, the Department may deny the issuance of any license to the applicant. The denial of the license may be appealed as provided in T.C.A. § 71-3-509 and other applicable laws and rules governing the Child Care Agency Board of Review.

(d) The license of any child care agency shall not be voided nor shall any pending appeal be voided pursuant to this paragraph solely for the reason that the child care agency is subject to judicial orders directing the transfer of control or management of a child care agency or its license to any receiver, trustee, administrator or executor of an estate, or any similarly situated person or entity.

(e) If the current licensee dies or is incapacitated, and provided that no licensing violations require the suspension, denial or revocation of the child care agency's license, the Department may grant family members of the licensee, or administrators or executors of the licensee, a new temporary license to continue operation for a period of one hundred and twenty (120) days. At the end of such period, the Department shall determine whether an annual license should be granted to a new licensee as otherwise provided in this chapter.

(f) Nothing in this paragraph (13) shall be construed to prevent the Department from taking any regulatory or judicial action as may be required pursuant to the licensing laws and regulations that may be necessary to protect the children in the care of such child care agency.

(14) Licensing Fees.

The following licensing fees shall apply to applications for licenses for child care agencies licensed by the Department effective January 1, 2001:

(a)	Family child care homes:	Annual fee Biennial fee Triennial fee	$100.00 $150.00 $175.00
(b)	Group child care homes	Annual fee Biennial fee Triennial fee	$125.00 $175.00 $200.00
(c)	Child care centers (Less than 100 children)	Annual fee Biennial fee Triennial fee	$200.00 $250.00 $300.00
(d)	Child care centers (More than 100 children)	Annual fee Biennial fee Triennial fee	$400.00 $450.00 $500.00
(e)	Child care centers (More than 250 children)	Annual fee Biennial fee Triennial fee	$500.00 $550.00 $600.00
(f)	Drop-in centers	Annual fee Biennial fee Triennial fee	$200.00 $250.00 $300.00

Notes

Tenn. Comp. R. & Regs. 1240-04-05-.03

Chapter 1240-04-05 has been assigned a new control number, removed and renumbered to chapter 0250-04-05 filed and effective March 25, 1999 . New rule filed September 29, 2000; effective December 13, 2000. Amendments filed May 1, 2018; effective 7/30/2018.

Authority: T.C.A. §§ 4-5-201, et seq.; 71-1-105; 71-3-501, et seq.; 71-3-502; and Acts 2000, ch. 981, §§ 3 and 14.