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Day Care Home Provider Transfer Policy

Nutrition Services Division Management Bulletin
Purpose: Policy, Action Required
Purpose: Child and Adult Care Food Program Day Care Home Sponsors Number: NSD-CACFP-03-2008

Attention: Food Program Director

Date: July 2008

Subject: Day Care Home Provider Transfer Policy

Reference: Title 7,  Code of Federal Regulations, Parts 226.16(d)(4)(iii), 226.16(d)(4)(v), and 226.26(l)

This Management Bulletin amends the previous day care home provider transfer policy that was put into effect in 1996. Due to the changes made to Title 7, Code of Federal Regulations, Part 226 that established the seriously deficient process for providers, the California Department of Education has updated the provider transfer policy and placing restrictions on the transfer of providers who were previously seriously deficient.

Please note the following changes to the transfer policy:

A provider may transfer from one sponsoring organization to another without a break in service. A provider may wish to transfer to another sponsor when she/he moves to a new location or when the services of another sponsor in the same area seem to better meet the provider's needs.

However, a provider who has been declared seriously deficient may not transfer to another sponsor unless:

  • The provider has implemented permanent corrective action as confirmed by the current sponsor during a monitoring visit that takes place after the declaration of serious deficiency.
  • The current sponsor notifies the provider in writing that the serious deficiency has been corrected and the declaration of serious deficiency has been rescinded.
  • Before the provider can transfer to another sponsor without a break in service, the current sponsor must determine that corrective action is permanent by conducting a follow-up monitoring visit no later than 180 days after the rescission of the declaration of serious deficiency.
  • The current sponsor certifies on the Drop/Transfer form that the follow-up monitoring visit was completed by checking the box on the form that states “The provider is in good standing with our agency with no unresolved action pending."

In order to ensure that the provider is aware of this policy change, please insert the following sentence into all of your letters rescinding a seriously deficient declaration.

"Please note that although the serious deficiency determination has been rescinded, you will not be allowed to transfer to another day care home sponsoring organization until this agency has conducted a follow-up monitoring visit to ensure that the corrective action is permanent. The follow-up visit will be conducted no later than 180 days after the date of this letter."

The sponsor may accept only one transfer from another program per month. This policy helps sponsors avoid unnecessary competition for providers.

A provider may also transfer between sponsors only once in a twelve-month period.

The required Day Care Home Provider Drop/Transfer Form has been updated to advise the provider of the requirement that the "DROP" sponsor must complete a follow-up monitoring visit to ensure that corrective action of a serious deficiency is permanent. (See Attachment, NSD 3500.)

We believe that these changes will benefit all day care home sponsors as we work together to ensure the integrity of the Child and Adult Care Food Program.

If you have any questions regarding this MB, please contact your Program Specialist; contact information is located in the Child Nutrition Information and Payment System.


Day Care Home Provider Drop/Transfer Form at

Questions:   Nutrition Services Division | 800-952-5609
Last Reviewed: Friday, March 17, 2017
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