KRS 199.886: Participation by employer and employee -- Contract -- Payment for costs

of service.

(1) If an employer wishes to provide child -care assistance to an employee as a benefit

of employment and participate in this program, the employer may enter into an

agreement with its employee and a child -care provider using the standardized

contract provided by a third-party administrator.

(2) To participate in the program, an employer shall do the following:

(a) Access the standardized contract created by the cab inet and enter into it with

the employee and child-care provider;

(b) Submit the proposed contract to the third-party administrator; and

(c) Submit any additional information as deemed necessary by the third -party

administrator pursuant to KRS 199.884.

(3) (a) The employer shall submit its contributions for each contract under this

program to the third -party administrator, either in lump -sum payments or in

accordance with the amount and frequency agreed to in the final contract. The

third-party administrator shall distribute the contributions from the employer

to the child-care provider along with the state match in a timely manner and in

accordance with the contract. In the event that a contract is terminated early,

for any reason, the third -party administrator shall remit any remaining funds

contributed by the employer for the particular contract back to the employer.

(b) If requested by the employer and approved by the third -party administrator

and the child -care provider, employers shall have the ability to make

contributions directly to child-care providers.

(c) All payments to child -care providers shall be made in a timely manner in

accordance with each contract's individual stipulations.

(4) To participate in the program, an employee shall complete the standardized contract

with the employer and the child -care provider and provide any additional

information as deemed necessary by the cabinet pursuant to KRS 199.884.

(5) In the event that the a greement includes costs of service not covered by the

employer's contribution and the state match, the employee shall make payments to

the child-care provider according to the amount and frequency determined by the

final contract. If another member of the employee's household or family becomes a

party to an agreement in accordance with KRS 199.881 to 199.888, the employer

contribution and state match of that agreement may be utilized to pay for costs of

service not covered by the employer contribution and s tate match of the preceding

agreement, provided that it does not result in overpayment to the provider.