5200, Fees

February 2020

CCL must charge fees for permits and for conducting background checks unless an operation is exempt from such fees. All revenue collected from fees with the exception of the $1 per background check fee is deposited in the state’s general revenue fund.

Human Resources Code §42.0521; 42.054; 42.056

5210 Types and Amounts of Fees

February 2020

Fees may be charged as follows:

1. Application fee
2. Initial license fee
3. Initial license renewal fee
4. Full license fee
5. Annual fee
6. Amendment fee (for an increase in capacity)
7. Background check fee

Human Resources Code §§42.054; 42.056(c); 42.153(c); 42.159(e); 42.203(c); 42.206(e)

26 TAC §745.501

Fee Amounts

The chart below lists the fees required for child care operations to obtain or maintain a permit, although some operations may be exempt from certain fees. See 5211 Exemption from Fees.

Also see 5212 Fees for Multiple Licenses.

Human Resources Code §§42.153(c); 42.159(e); 42.203(c); 42.206(e)

26 TAC §§745.505; 745.507; 745.509; 745.521

5211 Exemptions from Fees

July 2021

Certified Operations

Certified or state-run operations are exempt from all fees.

Certain Nonprofit Operations

A nonprofit residential child care operation regulated under Chapter 42 of the Human Resources Code must pay the application fees but is exempt from paying permit and background check fees if the operation:

• does not charge for the care that the operation provides; or
• provides residential care for children in the managing conservatorship of DFPS.

Also see 3322 Fee Exemptions for Certain Residential Operations

5211.1 Residential Child Care Operations that Provide Care to Children in the Managing Conservatorship of DFPS

Listed Family Homes that Provide Care to Related Children

A listed family home is exempt from all fees if all of the following conditions are met:

1. The caregiver provides care to children related to them.
2. The care is provided in the child’s home.
3. HHSC has received a Texas Workforce Commission Listed Home Fee Waiver Authorization certificate exempting the provider from paying fees.
4. Care is not provided to related or unrelated children in the caregiver’s home.

If the status of the listed home changes and is no longer exempt from paying fees, then the listed home’s next annual fee is not due until the anniversary of the issuance date the following year.

See 3121.1 Documenting Fee Exemptions in CLASS

Texas Human Resources Code §42.054(g)

26 TAC §745.503

5211.1 Residential Child Care Operations that Provide Care to Children in the Managing Conservatorship of DFPS

October 2020

Procedure

CCR staff select “Yes” from the Exempt from Operation Fees drop-down box after the application is accepted for an operation planning to contract with DFPS to provide care for children in the managing conservatorship of DFPS.

If the operation has not obtained a contract with DFPS at the time of full permit issuance, the inspector changes the selection to “No” from the Exempt from Operations Fee drop-down box. The inspector generates the Initial Fee Invoice and Full Permit Fee Invoice to be paid by the operation prior to issuing the full permit.  

An operation with a DFPS contract at the time of full permit issuance remains exempt from future fees as long as the operation maintains the contract. However, if the operation does not maintain its contract, the operation may be exempt from paying an annual fee if the operation provided care to children in DFPS conservatorship at any time during the 12-month period immediately preceding the anniversary date of the operation’s license.  

See 3322 Fee Exemptions for Certain Residential Operations

5212 Fees for Multiple Licenses

Revision 24-2; Effective May 22, 2024

The applicant or permit holder must pay a fee for each license if they want separate licenses for different types of operations at the same location. 

References

Types of Child Care Permits, 2100

26 TAC Sections 745.511 and 745.513 

5220 Sending Fee Invoices and Receiving Payments

February 2020

Licensing sends an invoice to an applicant or operation for each fee the applicant or operation must pay. Licensing staff ensures the invoice is sent to the applicant or operation and resends the invoice to the operation, if necessary.

See 5230 Fee Invoices.

5221 Emailing or Mailing Invoices to the Applicant or Operation

February 2020

Procedure

Operation or Applicant Has Contact Email Address

If the applicant or operation has a contact email address in CLASS, CLASS sends a system-generated email to the applicant or operation that includes the invoice.

Operation or Applicant Does Not Have Contact Email Address

If the applicant or operation does not have a contact email address in CLASS, Licensing staff must print a copy of the invoice on the Invoice and Payment Summary page in CLASS and mail it to the applicant or operation. Licensing staff includes a return envelope addressed to:

HHSC Accounts Receivable 
P.O. Box 149055 
Austin, TX 78714-9055

26 TAC §745.515

5221.1 Resending a Fee Invoice

February 2020

If an invoice is returned via email as undeliverable or the applicant or operation does not receive the invoice, Licensing staff resends the invoice to the corrected or new email or mailing address.

Procedure

Licensing staff first verifies that the invoice was sent to the email or mailing address that is listed in CLASS. If staff concludes that the address is no longer valid, staff contacts the applicant or operation to obtain the correct email address or mailing address and updates the information on the operation’s Main page in CLASS. Staff then resends the invoice via email if the operation or applicant has a contact email address. Otherwise, staff resends the invoice via mail.

5222 How an Operation Submits Payment

February 2020

Licensing does not collect fee payments directly.

Procedure

An applicant or operation may submit a payment by:

• Submitting the payment through the operation’s online Child Care Licensing Account; or
• Mailing the payment, along with the invoice, to HHSC Accounts Receivable.

The invoice sent to the applicant or operation includes the:

1. invoice number;
2. type of fee due;
3. fee amount;
4. instructions for submitting payments; and
5. consequences for not paying the fee.

See 5220 Sending Fee Invoices and Receiving Payments

5222.1 Receiving a Payment at a Licensing Office

February 2020

Procedure

If an applicant or operation submits a mailed payment directly to a Licensing office, Licensing staff who received the payment takes the following steps:

• Enters all payment details on the Payments Sent to ARTS tracking log located on the CCL SharePoint site; and  
• Sends the payment and related invoice to HHSC Accounts Receivable.

If no invoice was included with the payment, staff prints the invoice from the operation’s Invoice & Payment Summary page in CLASS and sends the payment and invoice to HHSC Accounts Receivable. If Licensing staff is unable to locate the invoice on the operation’s Invoice & Payment Summary page, staff sends the payment to HHSC Accounts Receivable with the operation name, operation number, and as much other identifying information as possible.

Licensing staff informs the applicant or operation how to submit future payments.

5222.11 Reconciling a Payment Received by a Licensing Office

February 2020

Procedure

By the fifth day of each month, a designated Licensing staff in each district must reconcile the payments entered on the Payments Sent to ARTS tracking log by completing a CLASS review and updating the log.

5230 Fee Invoices

February 2020

A unique invoice number is assigned to each fee the operation must pay. The invoice and all payment events related to the invoice are displayed on the Invoice & Payment Summary page in CLASS. Depending on the fee type, an invoice may be automatically generated by CLASS or generated by Licensing staff as further described in this section.

5231 Application Fee Invoice

February 2020

The applicant must pay an application fee before Licensing staff can accept an application for a permit, unless the applicant is exempt from paying the application fee.

If the application is withdrawn or the permit is not issued, the application fee is not refunded. If the applicant reapplies within 30 days after withdrawing the applicant’s original application, the applicant does not have to pay a new application fee.

Procedure

CLASS automatically generates an Application Fee Invoice when:

• An applicant submits an e-Application; or
• Licensing enters the application in CLASS and saves the operation’s Main page for the first time.

Texas Human Resources Code §§42.054; 42.153(c); 42.159(e)

26 TAC §§745.401; 745.503; 745.505; 745.507; 745.509; 745.519; 745.521

See:

3220  Reviewing and Accepting the Application for a Permit 
5210  Types and Amounts of Fees 
5211  Exemption from Fees 
5221  Emailing or Mailing Invoices to the Applicant or Operation 
5270  Fee Refund Guidelines 
Appendix 5000-2  Licensing Fees

5232 Initial Permit Fee Invoice

February 2020

Before Licensing issues an initial license to an applicant for a license, the applicant must pay the initial license fee, unless the applicant is exempt from paying permit fees.

If the operation withdraws the application after paying the initial license fee and an initial license is not issued, the initial license fee may be refunded.

Procedure

Licensing staff creates and sends the Initial Permit Fee Invoice to the applicant after:

• notifying the applicant of the results of the application inspection via CLASS Form 2936; and
• determining the applicant has met the criteria to receive an initial license.

Licensing staff create and send the Initial Permit Fee Invoice by taking the following steps on the Invoice & Payment Summary page in CLASS:

1. select Add Fee Invoice button;
2. select Initial Permit Fee Invoice from the Add Fee Invoice drop-down menu;
3. select Yes to confirm the action; and
4. send the invoice to the applicant.

Texas Human Resources Code §42.054

26 TAC §§745.503; 745.509; 745.519

See: 

3412  Criteria for Issuing an Initial License 
5210  Types and Amounts of Fees 
5211  Exemption from Fees 
5221  Emailing or Mailing Invoices to the Applicant or Operation 
5270  Fee Refund Guidelines 
Appendix 5000-2  Licensing Fees

5233 Initial Permit Renewal Fee Invoice

February 2020

The operation must pay an initial license renewal fee if Licensing staff determine that the initial license must be renewed, unless the operation is exempt from paying permit fees.

Procedure

Licensing staff create and send the Initial Permit Renewal Fee Invoice upon determining that the initial license must be renewed.

Licensing staff create and send the Initial Permit Renewal Fee Invoice by taking the following steps on the Invoice & Payment Summary page in CLASS:

1. select Add Fee Invoice button;
2. select Initial Permit Fee Invoice from the Add Fee Invoice drop-down menu;
3. select Yes to confirm the action; and
4. send the invoice to the operation.

26 TAC §§745.503; 745.509

See: 

3520  Renewing an Initial License 
5210  Types and Amounts of Fees 
5211  Exemption from Fees 
5221  Emailing or Mailing Invoices to the Applicant or Operation 
5270  Fee Refund Guidelines 
Appendix 5000-2   Licensing Fees

5234 Full Permit Fee Invoice for a Licensed Operation

Revision 22-5; Effective Nov. 4, 2022

Before CCR issues a full license, the inspector confirms whether the operation paid the fee for the full license, unless the operation is exempt from paying permit fees.

If the operation failed to pay the fee before the initial or renewed initial license expiration date, CCR staff denies issuance of the full license.

Texas Human Resources Code Section 42.054 

26 TAC Sections 745.503, 745.509 

Procedure

CCR staff create and send the Full Permit Fee Invoice after the supervisor has approved issuing the full license, as outlined in 3531.1 Criteria for Issuing A Full License when an Operation Has an Initial License.

To create and send the Full Permit Fee Invoice, CCR staff take the following steps on the Invoice & Payment Summary page in CLASS:

1. select Add Fee Invoice button;
2. select Full Permit Fee Invoice from the Add Fee Invoice drop-down menu;
3. select Yes to confirm the action; and
4. send the invoice to the operation.

See:

3322 Fee Exemptions for Certain Residential Operations 
3531.1  Criteria for Issuing a Full License When an Operation Has an Initial License 
5210  Types and Amounts of Fees 
5211  Exemption from Fees 
5221  Emailing or Mailing Invoices to the Applicant or Operation 
5270  Fee Refund Guidelines 
7600  Adverse Actions 
Appendix 5000-2  Licensing Fees

5235 Annual Permit Fee Invoice

February 2020

An operation must pay an annual fee by the anniversary date of the full permit issuance, unless the operation is exempt from paying the annual fee.

Procedure

CLASS automatically generates the Annual Permit Fee Invoice 35 days prior to the anniversary of the issuance of the operation’s full permit.

If CLASS generates the Annual Permit Fee Invoice for an operation that is exempt from paying the annual fee, Licensing staff:

1. indicate on the operation’s Main page in CLASS that the operation is exempt from fees; and
2. cancel the Annual Permit Fee Invoice with the reason Operation is Exempt on the operation’s Invoice and Payment Summary page in CLASS.

Texas Human Resources Code §42.054

26 TAC §§745.503; 745.505; 745.507; 745.509; 745.515

See: 

5210  Types and Amounts of Fees 
5211  Exemption from Fees 
5220  Sending Fee Invoices and Receiving Payments 
5270  Fee Refund Guidelines 
Appendix 5000-2  Licensing Fees 
Appendix 5000-3  Invoice Cancellation Reasons

5236 Capacity Increase Fee Invoice (Also Known as Amendment Fee)

Revision 23-2; Effective June 26, 2023

If a licensed operation with a full permit submits a request to increase the operation’s capacity, the inspector follows the policies in 3811 When and How to Evaluate a Change in an Operation before approving or rejecting the request.

If the permit holder pays for the capacity increase but CCR does not approve the capacity increase, CCR refunds the payment.

Procedure

CLASS automatically generates the Capacity Fee Invoice  when CCR staff approve the operation’s request to increase capacity in CLASS.

If an operation changes or withdraws its request to increase capacity, CCR staff do not cancel the Capacity Fee Invoice. CCR staff follow 3823.2 Changing the Operation’s Capacity in CLASS. CLASS automatically cancels the Capacity Fee Invoice.

The fee is not prorated. If a license is amended to reduce capacity, the permit holder does not receive a refund for the permit holder’s last annual fee payment. The reduction is reflected in the next annual fee payment.

26 TAC Sections 745.509(10); 745.519

Also see: 

3820  How to Evaluate and Process Amendments to a Permit
5210  Types and Amounts of Fees 
5211  Exemption from Fees 
5220  Sending Fee Invoices and Receiving Payments 
5270  Fee Refund Guidelines 
Appendix 5000-2  Licensing Fees

5237 Background Check Fee Invoice

February 2020

An applicant or permit holder incurs a background check fee every time a background check is submitted for an individual, unless the operation is exempt from paying background check fees.

Procedure

CLASS automatically generates the Background Check Fee Invoice on a quarterly basis.

26 TAC §§745.503; 745.505; 745.507; 745.509; 745.521  

See: 

5210  Types and Amounts of Fees 
5211  Exemption from Fees 
5220  Sending Fee Invoices and Receiving Payments 
5270  Fee Refund Guidelines 
Appendix 5000-2  Licensing Fees

5240 Verification of Fee Payments

February 2020

Licensing staff must verify that an operation has fully paid all required fee invoices throughout the application, monitoring and permit renewal processes.

26 TAC §§745.477; 745.505; 745.507; 745.509; 745.521

5241 Invoice Status and Actions Taken

February 2020

Procedure

Each invoice has an Invoice Status, which changes when additional invoice events occur.

The chart below lists each possible Invoice Status that could be displayed on the Invoice & Payment Summary page in CLASS and any subsequent action that occurs.

See: 

5243 Additional Steps to Verify Fee Payments 
5260 Cancelling Invoices

5242 How to Verify the Fee Invoice Status

February 2020

Procedure

Licensing staff determines the status of an invoice by locating the particular invoice on the Invoice & Payment Summary page in CLASS. Staff then identifies whether the invoice has been paid by assessing the information in the Invoice Status column.

See: 

5241  Invoice Status and Actions Taken

5243 Additional Steps to Verify Fee Payments

February 2020

Procedure

Licensing staff takes additional steps to verify a payment when:

1. the Invoice Status is Not Paid or Partially Paid; and
2. the applicant or operation presents evidence, including the date and amount of the payment, that the operation submitted a payment.

5243.1 Linking an Unlinked Payment to an Invoice

October 2020

The first step CCR staff takes to verify a payment is to review the Unlinked Payments section on the operation’s Invoice & Payment Summary page in CLASS. Payments listed in the Unlinked Payments section have been linked to the operation, but are not associated with an invoice.

Procedure

CCR staff may contact the operation to verify which invoice the unlinked payment should be applied to. CCR staff links the payment to the invoice by taking the following actions in the Unlinked Payments section on the operation’s Invoice & Payment Summary page in CLASS:

1. finds the row with the Payment Received event for the payment to be linked;
2. selects the ‘link’ icon in the Action column;
3. selects one or more invoices to apply the payment; and
4. enters the amount to be applied to each invoice (the total amount applied must equal the payment amount).

5243.2 Linking a Payment to Multiple Invoices

October 2020

CCR staff may link a payment in the Unlinked Payments section in CLASS to multiple invoices. CCR staff follow the process detailed in 5243.1 Linking an Unlinked Payment to an Invoice. The total amount applied between the invoices must equal the total amount of the payment.

5243.3 Linking a Payment to an Operation

October 2020

If the operation does not have any unlinked payments on the operation’s Invoice & Payment Summary page in CLASS that match the date and amount of the operation's payment, CCR staff conducts a search for the payment through the Payment Verification page in CLASS (located in CLASS Tools). Payments on the Payment Verification page in CLASS have not been associated with an operation or an invoice.

Procedure

CCR staff accesses the Payment Verification page in CLASS and conducts a search for the payment. If CCR staff identifies the payment through the search, staff:

1. searches for the operation;
2. attaches the payment to the operation by selecting the check box next to the payment and saving the page;
3. confirms that the payment has been moved to the Unlinked Payments section of the selected operation by using the Invoice & Payment Summary link at the top of the page; and
4. links the payment to the correct invoice by following the procedures outlined in 5243.1 Linking an Unlinked Payment to an Invoice.

5243.4 Linking a Payment to a Different Invoice

October 2020

The Update/Query Payments page in CLASS allows staff to take actions on payments that have already been linked to an operation or an invoice. CCR may unlink a payment from an invoice by linking it to a new operation or by linking it to the same operation. Either option results in the payment being displayed in the Unlinked Payments table of the selected operation.

Procedure

If CCR staff determines that the operation’s payment was linked to the incorrect operation or an incorrect invoice, staff takes the following steps on the Update/Query Payment page (located under CLASS Tools) in CLASS:

1. searches for the payment in CLASS;
2. searches for the operation;
3. selects the check box next to the payment and saves the page;
4. confirms that the payment has been moved to the Unlinked Payments section of the selected operation by using the Invoice & Payment Summary link at the top of the page; and
5. links the payment to the correct invoice by following the procedures outlined in 5243.1 Linking an Unlinked Payment to an Invoice.

5250 Handling Changes to Payments

October 2020

A correction to a payment occurs when the Accounts Receivable Tracking System (ARTS) makes a change to how ARTS originally processed a manual payment. A correction can occur for the following reasons:

1. payment returned as non-sufficient funds (NSF);
2. the whole or a portion of the payment is refunded; or
3. other errors in the original data entry.

5251 Payment Returned as Non-Sufficient Funds (NSF)

Revision 22-4; Effective Sept. 15, 2022

Procedure

A Non-Sufficient Funds (NSF) event occurs when a fee payment is declined due to the account not having enough funds to cover the payment. When an NSF event occurs, CLASS updates the Invoice Status and adds a Non-Sufficient Funds event for the applicable invoice. Licensing staff follow up with the operation when staff:

1. receives notice that an NSF for an annual fee payment has posted in CLASS; or
2. observes during an initial or monitoring inspection or while reviewing the operation’s permit renewal application that an NSF for any other fee payment has posted in CLASS.

If the operation has a contact email address in CLASS, CLASS automatically resends the invoice with the updated balance after an NSF is posted in CLASS. Licensing staff follow up with the operation by phone, email, or inspection to ensure payment and take any required action.

Unlinked Non-Sufficient Funds

If Licensing staff observe a payment with an associated NSF payment event in the Unlinked Payments section of the Invoice and Payment Summary page or on the Payment Verification page in CLASS, staff refer to the Linking Payment Changes to an Invoice document located on the CCL SharePoint site for instructions on linking payments and NSF events to an invoice.

Also see: 

3924.2 Verifying Fee and Administrative Penalty Payments 
4141 Preparing for Application, Initial, and Monitoring Inspections 
4300 Conducting a Follow-Up with an Operation 
Appendix 5000-2 Licensing Fees

5252 Payment Refunded

February 2020

Licensing staff initiate a refund when:

• an applicant or operation overpays a fee invoice (Invoice Status is Overpaid); or
• when the operation requests a refund and Licensing staff determine the operation is eligible for a refund.

26 TAC §745.519

Procedure

If the correct invoice number is submitted with the refund request, CLASS adds a Refund Issued event for the applicable invoice on the Invoice and Payment Summary page after ARTS processes the refund.

Unlinked Refunds

If Licensing staff observe a payment with an associated refunded payment event in the Unlinked Payments section of the Invoice and Payment Summary page or on the Payment Verification page in CLASS, staff refer to the Linking NSFs, Refunds, and Payment Reversals/Corrections to an Invoice document located on the CCL SharePoint site for instructions on linking payments and refunds to an invoice.

See:

5270  Fee Refund Guidelines

5253 Payment Corrected

February 2020

Procedure

When the Accounts Receivable Tracking System (ARTS) processes a reversal and correction for a fee payment previously posted in CLASS, CLASS updates the Invoice Status and adds a Reversal and Correction event for the applicable invoice. A Reversal and Correction may occur when ARTS:

1. Moves a payment to a different invoice or operation;
2. Splits a payment originally linked to one invoice to multiple invoices; or
3. Makes corrections to other details associated with the payment.

Unlinked Reversals and Corrections

If Licensing staff observe a payment with an associated Reversal or Correction event in the Unlinked Payments section of the Invoice and Payment Summary page in CLASS, staff refer to the Linking NSFs, Refunds, and Payment Reversals/Corrections to an Invoice document located on the CCL SharePoint site for instructions on linking payments and associated reversals and corrections to an invoice.

5260 Cancelling Invoices

February 2020

Licensing staff may cancel certain fee invoices if the invoice was created in error, including when an invoice is created for a fee that the operation is exempt from paying.

Texas Human Resources Code §42.054(g)

26 TAC §745.503

See 5211 Exemptions from Fees

Procedure

Licensing staff locates the invoice to be cancelled on the Operation’s Invoice & Payment Summary page in CLASS. Licensing staff then:

1. selects the Cancel icon in the Action column;
2. selects the reason for the cancellation; and
3. selects Yes to confirm the cancellation.

See Appendix 5000-3 Invoice Cancellation Reasons

5270 Fee Refund Guidelines

February 2020

No refund is made if a permit is revoked or relinquished.

Fees that have been paid may be refunded only under certain conditions. Those conditions are outlined in the following refund chart:

Refund Chart

Texas Human Resources Code §42.054

26 TAC §745.519

Procedure

Within 30 calendar days of determining the refund is due, Licensing staff completes the HHSC Refund Request Form to process a refund, as outlined in the CCL Job Aid: How to Complete the ARTS Refund Request document located on the CCL SharePoint site.