Does a Mississippi YMCA or Boys and Girls Club lose its child care licensing exemption if it accepts payment from the state's Child Care Payment Program?
Subject
Licensure Exemption for National-Affiliate Membership Organizations Receiving Subsidy Payments
Recipient
Daniel Edney, MD, State Health Officer, Mississippi State Department of Health
Plain-English summary
The Mississippi Child Care Licensing Law (Sections 43-20-1 et seq.) generally requires child care facilities to be licensed by the State Department of Health. Section 43-20-5(a)(iv) carves out an exemption for "[a]ny membership organization affiliated with a national organization that charges only a nominal annual membership fee, does not receive monthly, weekly or daily payments for services, and is certified by its national association as being in compliance with the association's minimum standards and procedures including, but not limited to, the Boys and Girls Club of America, and the YMCA."
The state health officer asked: if a YMCA or Boys and Girls Club participates in subsidy programs like the Mississippi Child Care Payment Program (CCPP) administered by the Department of Human Services, does that knock them out of the exemption?
The AG said the answer turns on whether the subsidy payments amount to "monthly, weekly or daily payments for services" within Section 43-20-5(a)(iv). That is a fact-specific question and the AG cannot decide fact questions under Section 7-5-25. But, for guidance, the AG noted that the source of the payment (state subsidy versus parent-paid tuition) is immaterial; what matters is the timing pattern. If a CCPP or similar program pays the entity monthly, weekly, or daily for services, the exemption does not apply, even though the entity would otherwise meet the exemption's other requirements.
What this means for you
YMCA and Boys and Girls Club directors and boards
If your organization currently accepts CCPP or other state subsidy program payments and operates child care or after-school programs, evaluate the timing structure of those payments. If they come in monthly, weekly, or daily for services rendered, you likely need a child care license under Section 43-20-1 et seq., even though your national affiliate certifies you and you otherwise meet the exemption's requirements.
State Department of Health licensing staff
When evaluating exemption status under Section 43-20-5(a)(iv), look at the entity's actual payment intake, including payment from any subsidy program. Treat parent-paid tuition and state-paid subsidy the same way; what matters is the timing.
Child care subsidy program participants
If you are a parent receiving CCPP support and you are placing your child in a YMCA or Boys and Girls Club program, the entity may need a child care license to keep accepting that subsidy. That brings additional regulatory oversight and protections, which is a benefit, but it may also affect cost or availability.
Department of Human Services CCPP administrators
Coordinate with the Department of Health on which entities accepting CCPP payments need licensure. The AG opinion's reading suggests an alignment between subsidy participation and licensure for previously exempt entities.
Citizens, parents, and journalists
Mississippi's child care licensing exemption was designed for genuine national-affiliate organizations that did not depend on regular per-service payment. The AG opinion clarifies that subsidy participation can move an organization out of that exempt category, even if the organization's character has not otherwise changed.
Common questions
What is the Child Care Payment Program (CCPP)?
A Mississippi Department of Human Services program that helps low-income working families pay for child care. CCPP pays providers directly on behalf of eligible families.
What exactly is the licensure exemption?
Section 43-20-5(a)(iv) exempts national-affiliate membership organizations that charge only a nominal annual membership fee, do not receive monthly/weekly/daily payments for services, and are certified compliant by their national association.
Does any state payment defeat the exemption?
Not necessarily. The trigger is whether the payments come in "monthly, weekly or daily" patterns. A one-time grant or capacity-building payment may not break the exemption; recurring per-service payments likely will.
What if the entity gets payments from multiple sources?
The AG did not address that directly, but the natural reading is that any monthly, weekly, or daily payment pattern from any source for services rendered triggers the exclusion.
What licensure does an exemption-disqualified YMCA need?
Standard child care facility licensure under Section 43-20-1 et seq., subject to State Department of Health rules.
Does this affect after-school enrichment programs that don't run during school hours?
The Section 43-20 framework's reach depends on whether the program qualifies as "child care" under the statutory definition. Talk to State Department of Health child care licensing staff about your specific program structure.
Background and statutory framework
The Mississippi Child Care Licensing Law, Sections 43-20-1 et seq., requires child care facilities to be licensed by the State Department of Health. Section 43-20-5(a) lists exemptions, including Subsection (a)(iv) for certain national-affiliate membership organizations.
The exemption has three conjunctive requirements:
1. Affiliation with a national organization charging only a nominal annual membership fee
2. No "monthly, weekly or daily payments for services"
3. Certification by the national association of compliance with its minimum standards and procedures.
The Boys and Girls Club of America and the YMCA are listed as illustrative examples, not as the only qualifying entities.
The CCPP is administered by the Mississippi Department of Human Services and pays child care providers on behalf of eligible families. The payment structure typically involves regular reimbursements based on attendance, which the AG's reasoning suggests would generally constitute "monthly, weekly or daily payments for services."
The fact question (does a particular CCPP arrangement equate to monthly, weekly, or daily payments for services?) is a case-by-case determination outside the AG's Section 7-5-25 opinion authority.
Citations
- Miss. Code Ann. § 7-5-25 (AG opinion authority limited to questions of law)
- Miss. Code Ann. § 43-20-1 (Child Care Licensing Law et seq.)
- Miss. Code Ann. § 43-20-5(a)(iv) (national-affiliate membership organization exemption)
Source
- Landing page: https://attorneygenerallynnfitch.com/divisions/opinions-and-policy/recent-opinions/
- Original PDF: https://attorneygenerallynnfitch.com/wp-content/uploads/2023/08/D.Edney-August-17-2023-Licensure-Exemption-Status-of-Entities-Participating-in-the-Child-Care-Payment-Program-or-Other-Subs.pdf
Original opinion text
August 17, 2023
Daniel Edney, MD, State Health Officer
Mississippi State Department of Health
Post Office Box 1700
Jackson, Mississippi 39215-1700
Re:
Licensure Exemption Status of Entities Participating in the Child Care
Payment Program or Other Subsidy Programs
Dear Dr. Edney:
The Office of the Attorney General has received your request for an official opinion.
Question Presented
Are entities affiliated with a national organization that charges only a nominal annual membership
fee, including but not limited to the Boys and Girls Club of America and the YMCA, exempt from
licensure requirements pursuant to Mississippi Code Annotated Section 43-20-5(a)(iv) if they
participate in subsidy programs such as the Child Care Payment Program administered by the
Mississippi Department of Human Services?
Brief Response
Your question turns on whether receiving funding through a subsidy program would equate to
"receiv[ing] monthly, weekly or daily payments for services," as provided in Section 43-20-5(a)(iv); this is a question of fact that must be determined on a case-by-case basis. If it is
determined that an entity receives "monthly, weekly or daily payments" from a subsidy program,
the entity will not meet the requisite exemption requirements of Section 43-20-5(a)(iv).
Applicable Law and Discussion
Sections 43-20-1 et seq., are collectively known as the "Mississippi Child Care Licensing Law,"
and Section 43-20-5(a) sets forth certain exemptions from the provisions of the chapter. Relevant
here, Section 43-20-5(a)(iv) exempts:
[a]ny membership organization affiliated with a national organization that charges
only a nominal annual membership fee, does not receive monthly, weekly or daily
payments for services, and is certified by its national association as being in
compliance with the association's minimum standards and procedures including,
but not limited to, the Boys and Girls Club of America, and the YMCA.
(emphasis added).
Based on this exemption, you ask whether entities affiliated with a national organization that
charges only a nominal annual membership fee, such as the Boys and Girls Club and the YMCA,
are exempt from licensure requirements if they participate in subsidy programs such as the Child
Care Payment Program ("CCPP") administered by the Mississippi Department of Human Services.
This question turns on whether receiving funding through a subsidy program would equate to
"receiv[ing] monthly, weekly or daily payments for services." This is a question of fact that must
be determined on a case-by-case basis. Pursuant to Section 7-5-25, the Attorney General shall
issue written opinions upon prospective questions of law; we cannot opine upon questions of fact.
This said, for informational purposes, we note that the source of "payment," as provided in Section
43-20-5(a)(iv), is immaterial. Accordingly, it is the opinion of this office that if it is determined
that an entity receives "monthly, weekly or daily payments" from a subsidy program such as the
CCPP, the entity will not meet the requisite exemption requirements of Section 43-20-5(a)(iv),
even if the entity would meet the requirements but for its participation in the subsidy program.
If this office may be of any further assistance to you, please do not hesitate to contact us.
Sincerely,
LYNN FITCH, ATTORNEY GENERAL
By:
/s/ Maggie Kate Bobo
Maggie Kate Bobo
Special Assistant Attorney General