(1) DEFINITIONS. In this section, except as otherwise provided: (ag) "Child care provider" means a provider licensed under s. 48.65, certified under s. 48.651 or established or contracted for under s. 120.13(14).(ah) "County department or agency" means a county department under s. 46.215, 46.22, or 46.23, the unit, as defined in s. 49.825(1) (e), or a Wisconsin Works agency, child care resource and referral agency, or other agency.(aL) "Disabled" means physically or mentally incapable of caring for oneself.(bm) "Liquid assets" means an individual's financial resources that are cash or can be quickly converted to cash without incurring penalties, including cash on hand, as well as funds in checking, savings, money market, and credit union share accounts. "Liquid assets" does not include any financial resources designated by the department by rule as excluded for purposes of sub. (1m) (cm).(c) Notwithstanding s. 49.141(1) (j), "parent" means a custodial parent, guardian, foster parent, legal custodian, or a person acting in the place of a parent.(cm) "Temporary break" means an individual's time-limited absence from an authorized activity due to illness, leave to care for an individual's family member, a student or holiday break, an interruption in work for a seasonal worker who is not working between regular industry work seasons, or any other cessation of an authorized activity as long as the individual continues to be employed or enrolled in the authorized activity and the absence does not exceed 3 months.(d) "Tribal governing body" means an elected governing body of a federally recognized American Indian tribe. (1d) CHILD CARE QUALITY OF CARE STANDARDS. The department shall promulgate rules to establish quality of care standards for child care providers that are higher than the quality of care standards required for licensure under s. 48.65 or for certification under s. 48.651. The standards established by rules promulgated under this paragraph shall consist of the standards provided for the accreditation of child care centers by the National Association for the Education of Young Children or any other comparable standards that the department may establish, including standards regarding the turnover of child care provider staff and the training and benefits provided for child care provider staff.(1g) CHILD CARE ALLOCATIONS. Within the limits of the availability of the federal child care and development block grant funds received under 42 USC 9858, the department shall allocate funding in each fiscal year for all of the following: (ac) A child care scholarship and bonus program, in the amount of at least $3,975,000 per fiscal year. (bc) Grants under s. 49.134(2) in the amount of at least $2,598,600 per fiscal year for child care resource and referral services.(c) Child care licensing activities.(d) Grants under s. 49.137(4m).(e) Contracts under s. 49.137(4) for training and technical assistance.(f) The department's share of the costs for the Child Care Information Center operated by the division for libraries and technology in the department of public instruction.(g) Contracts and grants to implement the child care quality rating system under s. 48.659.(h) In fiscal year 2024-25, a grant to support development and expansion of the Wisconsin Early Education Shared Services Network, in the amount of at least $2,500,000.(i) Increases to the maximum payment rates paid to child care providers on the basis of a provider's quality rating under sub. (6) (e) 3. d. and e.(1j) UNANTICIPATED FEDERAL FUNDS. If the department receives unanticipated federal child care and development block grant funds under 42 USC 9858 and it proposes to allocate the unanticipated funds so that an allocation limit in sub. (1g) is exceeded, the department shall submit a plan for the proposed allocation to the secretary of administration. If the secretary of administration approves the plan, he or she shall submit it to the joint committee on finance. If the cochairpersons of the committee do not notify the secretary of administration within 14 working days after the date of his or her submittal that the committee has scheduled a meeting for the purpose of reviewing the plan, the department may implement the plan, notwithstanding any allocation limit under sub. (1g). If within 14 working days after the date of the submittal by the secretary of administration the cochairpersons of the committee notify him or her that the committee has scheduled a meeting for the purpose of reviewing the plan, the department may implement the plan, notwithstanding sub. (1g), only with the approval of the committee.(1m) ELIGIBILITY. Except as provided in sub. (3g), the department shall determine, contract with a county department or agency to determine, or contract with a county department or agency to share determination of the eligibility of individuals residing in a particular geographic region or who are members of a particular Indian tribal unit for child care subsidies under this section. Under this section, and subject to sub. (2), an individual may receive a subsidy for child care for a child who has not attained the age of 13 or, if the child is disabled, who has not attained the age of 19, if the individual meets all of the following conditions:(a) Subject to sub. (2), the individual is a parent of a child who meets the requirement under s. 49.145(2) (c) and who is under the age of 13 or, if the child is disabled, is under the age of 19; or is a relative who, under s. 48.57(3m) or (3n) or 48.62, is providing care and maintenance for a child who meets the requirement under s. 49.145(2) (c) and who is under the age of 13 or, if the child is disabled, is under the age of 19; and child care services for that child are needed in order for the individual to participate in an approved activity. An individual who is eligible to receive a child care subsidy under this subsection shall remain eligible for that subsidy for a period of 3 months after the individual permanently ceases participation in the approved activity or until the department or the county department or agency redetermines the individual's eligibility, whichever is earlier. In this paragraph, "approved activity" means any of the following:1. Meeting the school attendance requirement under s. 49.26(1) (ge).1m. Obtaining a high school diploma or participating in a course of study meeting the standards established by the state superintendent of public instruction for the granting of a declaration of equivalency of high school graduation, if the individual is not subject to the school attendance requirement under s. 49.26(1) (ge) and at least one of the following conditions is met: a. The individual is 18 or 19 years of age. b. The individual has not yet attained the age of 18 years and the individual resides with his or her custodial parent or with a kinship care provider under s. 48.57 (3m) or with a long-term kinship care provider under s. 48.57 (3n) or is in a foster home licensed under s. 48.62, a subsidized guardianship home under s. 48.623, a group home, or an independent living arrangement supervised by an adult.2. Working in an unsubsidized job, including training provided by an employer during the regular hours of employment.3. Working in a Wisconsin works employment position, including participation in job search, orientation, and training activities under s. 49.147(2) (a) and in education or training activities under s. 49.147(3) (am), (4) (am), or (5) (bm).3m. Participating in a job search or work experience component of the food stamp employment and training program under s. 49.79(9).3r. Participating in the Transform Milwaukee Jobs program, or the Transitional Jobs program, under s. 49.163.4. Participating in basic education, including an English as a 2nd language course; literacy tutoring; or a course of study meeting the standards established by the state superintendent of public instruction under s. 115.29(4) for the granting of a declaration of equivalency of high school graduation, if the department or the county department or agency determining eligibility determines that basic education would facilitate the individual's efforts to maintain employment. An individual may receive aid under this subdivision for up to 2 years.5. Participating in a course of study at a technical college, or participating in educational courses that provide an employment skill, as determined by the department, if the department or the county department or agency determining eligibility determines that the course or courses would facilitate the individual's efforts to maintain employment. An individual may receive aid under this subdivision for up to 2 years.6. Taking a temporary break from an authorized activity specified in subds. 1. to 5.(b) Except as provided in par. (bm), the individual meets the eligibility criteria under all of the following:1. Section 49.145(2) (f) and (g).2. Section 49.145(2) (s).(bm) If the individual is providing care for a child under a court order and is receiving payments on behalf of the child under s. 48.57(3m) or (3n) or 48.623, or if the individual is a foster parent, and child care is needed for that child, the child meets the requirement under s. 49.145(2) (c).(br) The child is immunized as required under s. 252.04. Notwithstanding s. 252.04(3), for purposes of this paragraph the immunization requirement may only be waived for reasons of health or religion.(c)1. Except as provided in subds. 1d., 1g., 1h., 1m., 2., and 3., the gross income of the individual's family is at or below 185 percent of the poverty line for a family the size of the individual's family or, for an individual who is already receiving a child care subsidy under this section, the gross income of the individual's family is at or below 200 percent of the poverty line for a family the size of the individual's family. In calculating the gross income of the family, the department or county department or agency determining eligibility shall include court-ordered child or family support payments received by the individual, if those support payments exceed $1,250 per month, and income described under s. 49.145(3) (b) 1 and 3., except that, in calculating farm and self-employment income, the department or county department or agency determining eligibility shall include the sum of the following:a. Net earnings reported to the Internal Revenue Service.b. Depreciation expenses, personal business and entertainment expenses, personal transportation costs, purchases of capital equipment and payments on the principal of loans.1d.a. Notwithstanding sub. (5) (b), if the individual is already receiving a child care subsidy under this section and the gross income of the individual's family exceeds 200 percent of the poverty line for a family the size of the individual's family, the individual's copayment amount under sub. (5) increases by $1 for every $3 by which the individual's family's gross income exceeds 200 percent of the poverty line for a family the size of the individual's family. Beginning in fiscal year 2024-25, to the extent that the individual's family's gross income exceeds 200 percent of the poverty line for a family the size of the individual's family, the individual's copayment amount under sub. (5) increases by $1 for every $5.b. Notwithstanding subd. 1d. a., if the gross income of an individual's family exceeds 85 percent of the state median income for a family the size of the individual's family, the individual is not eligible to receive a child care subsidy under this section.1g. If the individual is a foster parent of the child or a subsidized guardian or interim caretaker of the child under s. 48.623, the child's biological or adoptive family has a gross income that is at or below 200 percent of the poverty line. In calculating the gross income of the child's biological or adoptive family, the department or county department or agency determining eligibility shall include court-ordered child or family support payments received by the individual, if those support payments exceed $1,250 per month, and income described under s. 49.145(3) (b) 1 and 3.1h. If the individual is a relative of the child, is providing care for the child under a court order, and is receiving payments under s. 48.57(3m) or (3n) on behalf of the child, the child's biological or adoptive family has a gross income that is at or below 200 percent of the poverty line. In calculating the gross income of the child's biological or adoptive family, the department or county department or agency determining eligibility shall include court-ordered child or family support payments received by the individual, if those support payments exceed $1,250 per month, and income described under s. 49.145(3) (b) 1 and 3.1m. If the individual was eligible under s. 49.132(4) (a), 1995 stats., for aid under s. 49.132, 1995 stats., and received aid under s. 49.132, 1995 stats., on September 30, 1997, but lost aid solely because of the application of s. 49.132(6), 1995 stats., the gross income of the individual's family is at or below 200 percent of the poverty line for a family the size of the individual's family. This subdivision does not apply to an individual whose family's gross income at any time on or after September 30, 1997, is more than 200 percent of the poverty line for a family the size of the individual's family.2. If the individual was eligible under s. 49.132(4) (am), 1995 stats., for aid under s. 49.132, 1995 stats., and received aid under s. 49.132, 1995 stats., on or after May 10, 1996, but lost eligibility solely because of increased income, the gross income of the individual's family is at or below 200 percent of the poverty line for a family the size of the individual's family. This subdivision does not apply to an individual whose family's gross income increased to more than 200 percent of the poverty line for a family the size of the individual's family.3. If the individual was eligible for a child care subsidy under s. 49.191(2), 1997 stats., on or after May 10, 1996, and received a child care subsidy on or after May 10, 1996, but lost the subsidy solely because of increased income, the gross income of the individual's family is at or below 200 percent of the poverty line for a family the size of the individual's family. This subdivision does not apply to an individual whose family's gross income increased to more than 200 percent of the poverty line for a family the size of the individual's family.(cm) The total liquid assets of the individual's family do not exceed $25,000. This paragraph does not apply if the individual is any of the following: 1. A foster parent of the child.2. A subsidized guardian or interim caretaker of the child under s. 48.623.3. A relative of the child who is providing care for the child under a court order and receiving payments under s. 48.57(3m) or (3n) on behalf of the child.(cr) Except as provided under sub. (2m), the individual's family meets all of the following asset restrictions: 1. The individual's family owns no more than one home, which is used as the individual's primary residence, and which is valued at no more than 200 percent of the statewide median value for homes. In calculating the value of a home under this subdivision, the value of any agricultural land owned by the individual's family shall be excluded.2. The combined equity value of any vehicles, except those used for business purposes, owned by the individual's family is no more than $20,000.(d) The individual satisfies other eligibility criteria established by the department by rule.(2) ELIGIBILITY BASED ON THE CHILD'S AGE. Notwithstanding sub. (1m) (intro.) and (a) (intro.), an individual does not lose eligibility for a child care subsidy for a child who attains the age of 13 or, if the child is disabled, attains the age of 19 until the department or the county department or agency redetermines the individual's eligibility.(2m) HARDSHIP EXEMPTION. The department may promulgate a rule that establishes a hardship exemption for the asset restrictions under sub. (1m) (cr). If the individual qualifies for a hardship exemption under the department's rule, the asset restrictions under sub. (1m) (cr) do not apply to the individual.(3) CHILD CARE LOCAL ADMINISTRATION. Except as provided in sub. (3g), a county department or agency with which the department contracts under sub. (1m) to determine eligibility in a particular geographic region or for a particular Indian tribal unit shall administer child care assistance in that geographic region or for that tribal unit. For the administration of child care assistance under this section, the department may require the county department or agency to do all of the following: (a) Determine an individual's liability for copayments under sub. (5).(b) Determine and authorize the amount of child care for which an individual may receive a subsidy.(d) Assist individuals who are eligible for child care subsidies under this section to identify available child care providers and select appropriate child care arrangements.(e) At intervals, or as otherwise required by the department, review and redetermine the financial and nonfinancial eligibility of individuals receiving child care subsidies under this section.(3g) CHILD CARE ADMINISTRATION IN CERTAIN COUNTIES. In a county having a population of 750,000 or more all of the following apply: (a) The department may contract with the Milwaukee County enrollment services unit, as provided in s. 49.825(2) (b), to do any of the following:1. Determine the eligibility of individuals for a child care subsidy under this section.2. Determine an individual's liability for copayments under sub. (5).3. Determine and authorize the amount of child care for which an individual may receive a subsidy.4. At intervals, or as otherwise required by the department, review and redetermine the financial and nonfinancial eligibility of individuals receiving child care subsidies under this section.(b) The department may establish a child care provider services unit, as provided in s. 49.826, to perform the provider services functions specified in s. 49.826(2) (a).(3m) DISTRIBUTION OF CHILD CARE FUNDS. (a) The department shall issue benefits directly to individuals who are eligible for subsidies under this section or pay or reimburse child care providers, county departments or agencies, or tribal governing bodies for child care services under this section. The department may also contract with and provide grants to private nonprofit agencies that provide child care for children of migrant workers. The department may pay or reimburse a Wisconsin Works agency for child care that the Wisconsin Works agency provides to the children of Wisconsin Works participants and applicants or that the Wisconsin Works agency arranges to meet immediate, short-term child care needs of participants prior to authorization of a subsidy under sub. (1m).(am) If the department contracts with a county department or agency under sub. (1m), the department shall allocate funds for the eligibility determination function under the contract. When allocating these funds, the department may consider trends in applications, a county department's or agency's past eligibility determination expenditures, the respective portions of the eligibility determination function to be performed by the department and the county department or agency, and any other factor determined by the department.(b)1. Subject to subds. 2. and 3., the department shall, to the extent practicable, allocate funds to a contract entered into under sub. (1m) for the administration of the program under sub. (3) in the same proportion as the geographic region's or Indian tribal unit's proportionate share of all funding allocated under par. (am) for eligibility determination functions during the contract period or, if the department elects, in the same proportion as the geographic region's or Indian tribal unit's proportionate share of all children for whom a subsidy was provided under this section in the most recent 12-month period for which applicable statistics are available before the start of the contract period.2. The department shall allocate to each contract at least $20,000 per year for the administrative responsibilities for each geographic region or Indian tribal unit.3. If the department renews a contract for a subsequent year, the department shall allocate to the contract not less than 95 percent of the amount allocated to the contract in the previous year, unless the geographic region or Indian tribal unit is not comparable or total funding available for all contracts is lower than the total amount available in the previous year.4. Within any contract period, the department may redistribute unexpended contract balances for a county department or agency to another county department or agency that reports expenditures in excess of their original contract total for the period.(d)1. No funds distributed under par. (a) may be used for child care services that are provided for a child by a child care provider who is the parent of the child or who resides with the child.2. If a child's parent is a child care provider, no funds distributed under par. (a) may be used for child care services that are provided for the child by another child care provider who is not the child's parent.3. Subdivision 1. or 2. does not apply if the child's parent has applied for, and been granted, a waiver of the prohibition under subd. 1. or 2. by the county department or agency or by the department.4. The department shall by rule specify the circumstances, or standards for determining the circumstances, under which the department will grant a waiver under subd. 3.(e)1. In this paragraph, " qualifying child" means a child who satisfies both of the following:a. He or she is not a child of an employee of the child care provider.b. He or she does not reside with an employee of the child care provider.2. No funds distributed under par. (a) may be used for child care services that are provided for a child by a child care provider who employs either the parent of the child or a person who resides with the child, unless the child care provider is licensed under s. 48.65 and at all times at least 60 percent of the children for whom the child care provider is providing care are qualifying children.3. Notwithstanding subd. 2., if a child care provider described in subd. 2. satisfies the requirements for payment under subd. 2. but the percentage of qualifying children for whom the provider is providing care falls below 60 percent, the provider shall have 6 weeks to raise the percentage of qualifying children for whom the provider is providing care to at least 60 percent before payments to the provider are discontinued for child care services provided for a child who is not a qualifying child.(4) CHOICE OF PROVIDER. (a) An eligible individual shall choose whether the child care will be provided by a child care center licensed under s. 48.65, a Level I certified family child care provider certified under s. 48.651(1) (a), a Level II certified family child care provider certified under s. 48.651(1) (b), or a child care program provided or contracted for by a school board under s. 120.13(14).(b)1. Except as provided in subd. 2., no eligible individual may benefit personally from any marketing or promotional offerings made by a child care provider to attract clients or increase business.2. Subdivision 1. does not apply to marketing or promotional offerings that directly benefit an eligible individual's child for whom the child care provider is providing child care services.(c)1. Notwithstanding par. (a) and subject to subd. 2., an eligible individual may receive a child care subsidy under this section for child care that is provided by an out-of-state provider of child care. Notwithstanding sub. (6), payments for child care services provided by an out-of-state provider under this subdivision shall be based on the maximum rate applicable in the county in which the eligible individual resides or on the out-of-state provider's actual rate, whichever is lower.2. As a condition of payment under this section for child care services provided to a child of an individual who is eligible for a subsidy under this section, an out-of-state provider is subject to, and shall comply with, the provisions of this section, and rules promulgated under this section, that apply to a child care provider, as determined by the department.(5) LIABILITY FOR PAYMENT. (a) An individual receiving a subsidy under this section is liable for the difference, if any, between the cost of the child care provided by the child care provider or providers selected by the individual and the subsidy amount. The department shall specify minimum or estimated copayment amounts based on family size, income level, and other factors, a schedule of which will be available in electronic form on the department's Internet site and in paper form.(b) An individual who is under the age of 20 and attending high school or participating in a course of study meeting the standards established under s. 115.29(4) for the granting of a declaration of equivalency to high school graduation may not be determined liable for more than the minimum copayment amount for the type of child care received and the number of children receiving child care.(6) CHILD CARE RATES AND QUALITY STANDARDS. (a) The department shall establish maximum payment rates for licensed child care services provided under this section. The department shall set the rates so that at least 75 percent of the number of places for children within the licensed capacity of all child care providers can be purchased by eligible individuals under this section.(b) The department shall set maximum payment rates for Level I certified family child care providers certified under s. 48.651(1) (a) for services provided to eligible individuals under this section. The maximum rates set under this paragraph may not exceed 90 percent of the rates established under par. (a).(c) The department shall set maximum payment rates for Level II certified family child care providers for services provided to eligible individuals under this section. The maximum rates set under this paragraph may not exceed 90 percent of the rates established under par. (a).(cm) The department shall modify child care provider payment rates established under pars. (a) to (c) so that payment rates are lower for providers of after-school child care.(d) The department may promulgate rules to establish a system of rates or a program of grants for child care providers that meet the higher quality of care standards established by rules promulgated under sub. (1d). If a system of rates is established under this paragraph, the rates under that system shall be higher than the rates established under pars. (a) to (c).(e)1. In this paragraph, " quality rating plan" means the plan for implementing the child care quality rating system under s. 48.659 submitted by the department under 2009 Wisconsin Act 28, section 9108 (7f).2. Except as provided in subd. 3., the department may not increase the maximum payment rates for child care providers before June 30, 2013.3. The department may modify a child care provider's payment rate under subd. 2. on the basis of the provider's quality rating, as described in the quality rating plan, in the following manner:a. For a child care provider who receives a 1-star rating, the department shall deny payment.b. For a child care provider who receives a 2-star rating, the department may reduce the maximum payment rate by up to 5 percent.c. For a child care provider who receives a 3-star rating, the department may pay up to the maximum payment rate.d. For a child care provider who receives a 4-star rating, the department may increase the maximum payment rate by up to 15 percent.e. For a child care provider who receives a 5-star rating, the department may increase the maximum payment rate for such a child care provider by up to 30 percent.4. The department may use a severity-index tool, as described in the quality rating plan, to disqualify child care providers who receive a low quality rating, as described in the quality rating plan, from receiving payment under this section.5. For purposes of modifying payment rates under subd. 3., the department shall assign a child care provider that is accredited from the Council on Accreditation a 4-star rating or 5-star rating, whichever the department determines is appropriate.(6d) COST-SAVING MEASURES. (a) To reduce costs under the program under this section, the department may do any of the following: 1. Notwithstanding sub. (1m), implement a waiting list for receipt of a child care subsidy under this section, except that a Wisconsin Works program participant may not be placed on any waiting list implemented under this subdivision.2. Subject to sub. (5) (b), increase the copayment amount that an individual must pay toward the cost of child care received under this section.3. Notwithstanding sub. (6), adjust the amount of payment to child care providers providing child care services under this section.4. Notwithstanding sub. (1m), adjust the gross income levels for eligibility for receipt of a child care subsidy under this section.(b) If the department intends to take any of the actions under par. (a), the department shall submit to the joint committee on finance a report that sets out its plan for implementing the cost-saving measures.(6g) AUTHORIZED CHILD CARE HOURS. (a)1. In this paragraph, "department" means the department or the county department or agency determining and authorizing the amount of child care for which an individual may receive a subsidy under this section.2. Except as provided in subd. 3., the department shall authorize no more than 12 hours of child care per day per child.3. The department may authorize more than 12 hours, not exceeding 16 hours, of child care per day for a child whose parent provides written documentation of work or transportation requirements that exceed 12 hours in a day.4. If the authorized hours of child care per day for a child will be reduced from more than 12 to 12 or less because the child's parent does not provide the written documentation required under subd. 3., the department shall provide to the child's parent who is receiving the subsidy under this section and to the child's child care provider 4 weeks' notice of the reduction in authorized hours before actually reducing the child's authorized hours.5. The department shall take into consideration child learning and development and shall promote continuity of care when authorizing hours of child care. The department is not required to limit authorized hours based on the individual's schedule of activities under sub. (1m) (a) or the number of hours the individual spends in those activities.(am) If payment to a child care provider is based on authorized hours of child care, the department shall do all of the following with respect to establishing and adjusting the number of authorized hours per child:1. The department shall track a child's hourly usage of child care authorizations over a 6-week period.2. If the child's hourly usage tracked under subd. 1. is less than 60 percent of the authorized hours of child care, the department shall reduce the authorized hours of child care for the child to 90 percent of the maximum number of hours of child care that the child attended during that 6-week period.3. The department shall provide written notice of the proposed adjustment under subd. 2. to the child's parent who is receiving the subsidy under this section, the child's child care provider, and the applicable county department or agency.4. The department shall provide a grace period after the number of authorized hours are reduced under subd. 2., during which time the child care subsidy amount paid to the child care provider for the child shall remain the same as before the reduction in authorized hours was made.(b) The department shall exclude from a child's hourly usage calculation under par. (am) 2., all of the following:1. One week per year of vacation time for the child's child care provider.2. One week per year of sick time for the child's child care provider.3. Two weeks per year of vacation time for the child's parent who is receiving the subsidy under this section with the child.4. Any reduction in hours due to a temporary break from an authorized activity.(c) The department shall promulgate rules that specify how the requirements under this subsection will be implemented.(6m) CHILD CARE PROVIDER RECORD KEEPING. With respect to attendance records, a child care provider shall do all of the following:(a) Maintain a written record of the daily hours of attendance of each child for whom the provider is providing care under this section, including the actual arrival and departure times for each child.(b) Retain the written daily attendance records under par. (a) for each child for at least 3 years after the child's last day of attendance, regardless of whether the child care provider is still receiving or eligible to receive payments under this section.(7) REFUSAL OF PAYMENT TO CHILD CARE PROVIDERS.(a)1. If a person subject to a background check under s. 48.686(2) who operates, works at, or resides at a child care provider is convicted or adjudicated delinquent for committing a serious crime, as defined in s. 48.686(1) (c), or if the department provides written notice under s. 48.686(4p) that the person is ineligible to operate, work at, or reside at the child care provider, the department or the county department under s. 46.215, 46.22, or 46.23 shall refuse to allow payment to the child care provider for any child care provided under this section beginning on the date of the conviction or delinquency adjudication.2. If a person subject to a background check under s. 48.686(2) who operates, works at, or resides at a child care provider is the subject of a pending criminal charge or delinquency petition alleging that the person has committed a serious crime, as defined in s. 48.686(1) (c), the department or the county department under s. 46.215, 46.22, or 46.23 shall immediately refuse to allow payment to the child care provider for any child care provided under this section until the department obtains information regarding the final disposition of the charge or delinquency petition indicating that the person is not ineligible to operate, work at, or reside at the child care provider.(b)1. If a person subject to a background check under s. 48.686(2) who operates, works at, or resides at a child care provider has been convicted or adjudicated delinquent for committing an offense that is not a serious crime, as defined in s. 48.686(1) (c), but the department determines under s. 48.686(5m) that the offense substantially relates to the care of children or the department determines that the offense substantially relates to the operation of a business, the department or the county department under s. 46.215, 46.22, or 46.23 may refuse to allow payment to the child care provider for child care provided under this section.2. If a person subject to a background check under s. 48.686(2) who operates, works at, or resides at a child care provider is the subject of a pending criminal charge or delinquency petition for committing an offense that is not a serious crime, as defined in s. 48.686(1) (c), but the department determines under s. 48.686(5m) that the offense substantially relates to the care of children or the department determines that the offense substantially relates to the operation of a business, the department or the county department under s. 46.215, 46.22, or 46.23 may refuse to allow payment to the child care provider for child care provided under this section.(7m) PENALTIES. (a) The department shall by rule establish policies and procedures permitting the department to do all of the following if a child care provider submits false, misleading, or irregular information to the department or if a child care provider fails to comply with the terms of the program under this section and fails to provide to the satisfaction of the department an explanation for the noncompliance: 1. Recoup payments made to the child care provider.2. Withhold payments to be made to the child care provider.3. Impose a forfeiture on the child care provider.(b) The penalties under par. (a) may be imposed on any child care provider subject to this section. Any officer, director, or employee of a child care provider that is a corporation, and any member, manager, or employee of a child care provider that is a limited liability company, who holds at least 20 percent of the ownership interest of the corporation or limited liability company and who has control or supervision of or responsibility for operating the child care business, including reporting for and receipt of payments under this section, may be found personally liable for such amounts, including overpayments made under this section, if the business, corporation, or limited liability company is unable to pay such amounts to the department. Ownership interest of a corporation or limited liability company includes ownership or control, directly or indirectly, by legally enforceable means or otherwise, by the individual, by the individual's spouse or child, by the individual's parent if the individual is under age 18, or by a combination of 2 or more of them, and such ownership interest of a parent corporation or limited liability company of which the corporation or limited liability company unable to pay such amounts is a wholly owned subsidiary. The personal liability of the officers, directors, and employees of a corporation and of the members, managers, and employees of a limited liability company as provided in this paragraph is an independent obligation and survives dissolution, reorganization, bankruptcy, receivership, assignment for the benefit of creditors, judicially confirmed extension or composition, or any analogous situation of the corporation or limited liability company.Amended by Acts 2023 ch, 119,s 86, eff. 7/1/2025, app. prior to July 1, 2025, if the department of children and families determines that there is sufficient funding allocated under s. 49.175 (1) (s) to fund the expansion of the kinship care and long-term kinship care programs under this act.Amended by Acts 2023 ch, 19,s 286, eff. 7/1/2024.Amended by Acts 2023 ch, 19,s 287, eff. 7/7/2023.Amended by Acts 2023 ch, 19,s 285, eff. 7/7/2023.Amended by Acts 2023 ch, 19,s 284, eff. 7/7/2023.Amended by Acts 2023 ch, 19,s 283, eff. 7/7/2023.Amended by Acts 2019 ch, 9,s 637, eff. 7/5/2019.Amended by Acts 2019 ch, 9,s 636, eff. 7/5/2019.Amended by Acts 2019 ch, 9,s 635, eff. 7/5/2019.Amended by Acts 2019 ch, 9,s 634, eff. 7/5/2019.Amended by Acts 2019 ch, 9,s 633, eff. 7/5/2019.Amended by Acts 2018 ch, 269,s 3, eff. 1/1/2019.Amended by Acts 2018 ch, 264,s 1g, eff. 4/12/2018.Amended by Acts 2018 ch, 269,s 4, eff. 1/1/2019.Amended by Acts 2018 ch, 236,s 1, eff. 1/1/2019.Amended by Acts 2017 ch, 59,s 880, eff. 9/23/2017.Amended by Acts 2017 ch, 59,s 879, eff. 9/23/2017.Amended by Acts 2017 ch, 59,s 878, eff. 9/23/2017.Amended by Acts 2017 ch, 59,s 877, eff. 9/23/2017.Amended by Acts 2017 ch, 59,s 876, eff. 9/23/2017.Amended by Acts 2017 ch, 59,s 875, eff. 9/23/2017.Amended by Acts 2017 ch, 59,s 874, eff. 9/23/2017.Amended by Acts 2017 ch, 59,s 873, eff. 9/23/2017.Amended by Acts 2017 ch, 59,s 872, eff. 9/23/2017.Amended by Acts 2017 ch, 59,s 871, eff. 9/23/2017.Amended by Acts 2017 ch, 59,s 870, eff. 9/23/2017.Amended by Acts 2017 ch, 59,s 869, eff. 9/23/2017.Amended by Acts 2017 ch, 59,s 868b, eff. 9/23/2017.Amended by Acts 2017 ch, 59,s 868, eff. 9/23/2017.Amended by Acts 2017 ch, 59,s 867, eff. 9/23/2017.Amended by Acts 2017 ch, 59,s 866, eff. 9/23/2017.Amended by Acts 2017 ch, 59,s 865, eff. 9/23/2017.Amended by Acts 2017 ch, 59,s 864, eff. 9/23/2017.Amended by Acts 2017 ch, 59,s 863, eff. 9/23/2017.Amended by Acts 2017 ch, 59,s 862, eff. 9/23/2017.Amended by Acts 2017 ch, 59,s 861, eff. 9/23/2017.Amended by Acts 2017 ch, 59,s 860, eff. 9/23/2017.Amended by Acts 2017 ch, 59,s 859, eff. 9/23/2017.Amended by Acts 2017 ch, 59,s 858, eff. 9/23/2017.Amended by Acts 2017 ch, 59,s 857, eff. 9/23/2017.Amended by Acts 2017 ch, 59,s 856, eff. 9/23/2017.Amended by Acts 2017 ch, 59,s 855, eff. 9/23/2017.Amended by Acts 2017 ch, 59,s 854, eff. 9/23/2017.Amended by Acts 2017 ch, 59,s 853, eff. 9/23/2017.Amended by Acts 2017 ch, 59,s 852, eff. 9/23/2017.Amended by Acts 2017 ch, 59,s 851, eff. 9/23/2017.Amended by Acts 2017 ch, 59,s 850, eff. 9/23/2017.Amended by Acts 2017 ch, 59,s 849, eff. 9/23/2017.Amended by Acts 2017 ch, 59,s 848, eff. 9/23/2017.Amended by Acts 2017 ch, 59,s 847, eff. 9/23/2017.Amended by Acts 2017 ch, 59,s 846, eff. 9/23/2017.Amended by Acts 2017 ch, 59,s 845, eff. 9/23/2017.Amended by Acts 2015 ch, 172,s 199, eff. 3/2/2016.Amended by Acts 2015 ch, 55,s 1738, eff. 7/14/2015.Amended by Acts 2015 ch, 55,s 1737, eff. 7/14/2015.Amended by Acts 2015 ch, 55,s 1736, eff. 7/14/2015.Amended by Acts 2015 ch, 55,s 1735, eff. 7/14/2015.Amended by Acts 2013 ch, 170,s 45, eff. 3/29/2014.Amended by Acts 2013 ch, 170,s 44, eff. 3/29/2014.Amended by Acts 2013 ch, 113,s 1, eff. 12/20/2013.Amended by Acts 2013 ch, 20,s 1014, eff. 7/2/2013.Amended by Acts 2013 ch, 20,s 1013, eff. 7/2/2013.Amended by Acts 2013 ch, 20,s 1012, eff. 7/2/2013.Amended by Acts 2013 ch, 20,s 1011, eff. 7/2/2013.Amended by Acts 2013 ch, 20,s 1010, eff. 7/2/2013.Amended by Acts 2013 ch, 20,s 1009, eff. 7/2/2013.Amended by Acts 2013 ch, 20,s 1008, eff. 7/2/2013.Amended by Acts 2013 ch, 20,s 1007, eff. 7/2/2013.Amended by Acts 2013 ch, 20,s 1005, eff. 7/2/2013.Amended by Acts 2013 ch, 20,s 1004, eff. 7/2/2013.Amended by Acts 2013 ch, 20,s 1003, eff. 7/2/2013.Amended by Acts 2013 ch, 20,s 1002, eff. 7/2/2013.Amended by Acts 2013 ch, 20,s 1001, eff. 7/2/2013.Amended by Acts 2013 ch, 20,s 1000, eff. 7/2/2013.Amended by Acts 2013 ch, 20,s 999, eff. 7/2/2013.Amended by Acts 2013 ch, 20,s 998, eff. 7/2/2013.Amended by Acts 2013 ch, 20,s 997, eff. 7/2/2013.Amended by Acts 2013 ch, 20,s 996, eff. 7/2/2013.Amended by Acts 2013 ch, 20,s 995, eff. 7/2/2013.Amended by Acts 2013 ch, 20,s 994, eff. 7/2/2013.Amended by Acts 2013 ch, 20,s 993, eff. 7/2/2013.Amended by Acts 2013 ch, 20,s 992, eff. 7/2/2013.Amended by Acts 2013 ch, 20,s 991, eff. 7/2/2013.Amended by Acts 2013 ch, 20,s 990, eff. 7/2/2013.Amended by Acts 2013 ch, 20,s 989, eff. 7/2/2013.Amended by Acts 2013 ch, 20,s 988, eff. 7/2/2013.1995 a. 289; 1997 a. 27, s. 1766 to 1775, 1838 to 1857; 1997 a. 41, 105, 237, 252; 1999 a. 9; 2001 a. 16; 2003 a. 33; 2005 a. 25, 165; 2007 a. 20; 2009 a. 28, 76, 77, 185; 2011 a. 32, 120, 158, 202.This section is set out more than once due to postponed, multiple, or conflicting amendments. It was reasonable for the department to construe sub. (1m) (a) 2. as limiting eligible employment to only "qualified" employers, meaning legitimate employers with a verified legal status. It is reasonable to expect that eligibility for child-care benefits requires legitimate, documented employment with an employer who complies with legal employment requirements. Mata v. Department of Children and Families, 2014 WI App 69, 354 Wis. 2d 486, 849 N.W.2d 908, 13-2013.