(1) No person,
partnership, association, corporation, or state, county or local government
unit, or any division, department, board or agency thereof, shall establish,
conduct, operate, or maintain in the State of Tennessee any Prescribed Child
Care Center (PCCC) without having a license. A license shall be issued only to
the applicant named and only for the premises listed in the application for
licensure. Licenses are not transferable or assignable and shall expire and
become invalid annually on the anniversary date of their original issuance. The
license shall be conspicuously posted in the PCCC.
In order to make application for a
(a) The applicant shall submit an
application on a form prepared by the department.
(b) Each applicant for a license, with the
exception of the U.S. Government, the State of Tennessee or local government,
shall pay an annual license fee in the amount of one thousand four hundred and
four dollars ($1,404.00). The fee must be submitted with the initial
application or renewal application and is not refundable.
(c) The issuance of an application form is in
no way a guarantee that the completed application will be accepted or that a
license will be issued by the department. No child shall be admitted to the
PCCC until a license has been issued. Applicants shall not hold themselves out
to the public as being a PCCC until the license has been issued. A license
shall not be issued until the facility is in substantial compliance with these
rules and regulations including submission of all information required by
or as later amended, and of all information required by the
(d) The applicant
must prove the ability to meet the financial needs of the facility.
(e) The applicant shall not use subterfuge or
other evasive means to obtain a license, such as filing for a license through a
second party when an individual has been denied a license or has had a license
disciplined or has attempted to avoid inspection and review process.
(f) The applicant shall allow the prescribed
child care center to be inspected by a Department surveyor. In the event that
deficiencies are noted, the applicant shall submit a plan of corrective action
to the Board that must be accepted by the Board. Once the deficiencies have
been corrected, then the Board shall consider the application for
change of ownership, including a change in a controlling interest, must be
reported to the department a minimum of thirty (30) days prior to the change. A
new application and fee must be received by the department before the license
may be issued.
(a) For the purposes of
licensing, the licensee of a PCCC has the ultimate responsibility for the
operation of the facility, including the final authority to make or control
operational decisions and legal responsibility for the business management. A
change of ownership occurs whenever this ultimate legal authority for the
responsibility of the PCCC operation is transferred.
(b) A change of ownership occurs whenever
there is a change in the legal structure by which the PCCC is owned and
constituting a change of ownership include, but are not limited to, the
1. Transfer of the facility's
2. Lease of the
Dissolution of any partnership that owns, or owns a controlling interest in,
4. One partnership is
replaced by another through the removal, addition or substitution of a
5. Removal of the general
partners or general partner, if the facility is owned by a limited
6. Merger of a
facility owner (a corporation) into another corporation where, after the
merger, the owner's shares of capital stock are cancelled;
7. The consolidation of a corporate facility
owner with one or more corporations; or,
8. Transfer between levels of
Transactions which do not constitute a change of ownership include, but are not
limited to, the following:
1. Changes in the
membership of a corporate board of directors or board of trustees;
2. Two (2) or more corporations merge and the
originally licensed corporation survives;
3. Changes in the membership of a non-profit
4. Transfers between
departments of the same level of government; or,
5. Corporate stock transfers or sales, even
when a controlling interest.
(e) Management agreements are generally not
changes of ownership if the owner continues to retain ultimate authority for
the operation of the facility. However, if the ultimate authority is
surrendered and transferred from the owner to a new manager, then a change of
ownership has occurred.
Sale/lease-back agreements shall not be treated as changes in ownership if the
lease involves the facility's entire real and personal property and if the
identity of the leasee, who shall continue the operation, retains the exact
same legal form as the former owner.
(a) In order to renew a license, each
prescribed child care center shall submit to periodic inspections by Department
surveyors for compliance with these rules. If deficiencies are noted, the
licensee shall submit an acceptable plan of corrective action and shall remedy
the deficiencies. In addition, each licensee shall submit a renewal form
approved by the board and applicable renewal fee prior to the expiration date
of the license.
(b) If a licensee
fails to renew its license prior to the date of its expiration but submits the
renewal form and fee within sixty (60) days thereafter, the licensee may renew
late by paying, in addition to the renewal fee, a late penalty of one hundred
dollars ($100) per month for each month or fraction of a month that renewal is
late; provided that the late penalty shall not exceed twice the renewal
In the event that a
licensee fails to renew its license within the sixty (60) day grace period
following the license expiration date, then the licensee shall reapply for a
license by submitting the following to the Board office:
1. A completed application for licensure;
2. The license fee provided in
(d) Upon reapplication, the licensee shall
submit to an inspection of the facility by Department of Health
may maintain certification as a Community Health Clinic (see Chapter
1200-13-02, Tennessee Department of Health) and as a Comprehensive Outpatient
Rehabilitation Facility (see
Social Security Act and Subpart B of 42 Code of Federal Regulations [CFR] Part
Tenn. Comp. R. &
rule certified June 7, 1974. Amendment filed July 3, 1984; effective August 1,
1984. Repeal and new rule filed May, 22, 1986; effective July 21, 1986.
Amendment filed October 22, 1987; effective December 6, 1987. Amendment filed
April 1, 1992; effective May 16, 1992. Amendment filed November 3, 1992;
effective December 18, 1992. Amendment filed March 7, 1994; effective May 21,
1994. Amendment filed December 30, 1994; effective March 18, 1995. Amendment
filed June 13, 1997; effective August 27, 1997. Repeal filed March 18, 2000;
effective May 30, 2000. New rule filed June 13, 2002; effective August 27,
2002. Amendment filed January 19, 2007; effective April 4, 2007. Public
necessity rules filed April 29, 2009; effective through October 11, 2009.
Emergency rules filed October 9, 2009; effective through April 7, 2010.
Amendments filed September 24, 2009; effective December 23, 2009. Amendment
filed December 16, 2013; effective March 16, 2014. Amendments filed March 26,
2019; effective 6/24/2019.
Authority: T.C.A. §§
[effective January 1, 2009], 68-11-207, 68-11-209, 68-11-209(a)(1), 68-11-210,
68-11-216, and Chapter 846 of the Public Acts of 2008, § 1.